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Fin-Lexicon.
The definitive dictionary for modern finance terms, simplified for high-growth enterprises and strategic leaders.
Accrual Accounting
A method where revenue and expenses are recorded when they are incurred, regardless of when cash is exchanged.
Burn Rate
The rate at which a new company spreads its initial capital to finance overhead before generating positive cash flow from operations.
Compliance
The action of varying with commands, regulations, or laws. In finance, regulatory compliance is critical.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's overall financial performance.
Transfer Pricing
The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.
VAT
Value-Added Tax. A consumption tax placed on a product whenever value is added at each stage of the supply chain.