Banking, Finance and Accounting

1. An asset is anything of value owned by the company (e.g., cash, equipment, buildings).
2. A liability is a financial obligation or debt the company owes to third parties (e.g., bank loans, accounts payable).

💡 À retenir : Assets = What you have; Liabilities = What you owe.

1. Convertis le montant en Dirhams si nécessaire.
2. Utilise la formule : $I = P \times r \times t$.
3. $P$ est le capital (Principal), $r$ le taux annuel, et $t$ la durée en années.

💡 À retenir : Toujours convertir le taux en décimal (ex: 5% = 0.05).

It is a financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. It shows the financial position of the business.

💡 À retenir : The balance sheet must always balance: $Assets = Liabilities + Equity$.

1. Accounting se concentre sur l'enregistrement, la classification et le résumé des transactions passées.
2. Finance se concentre sur la gestion de l'argent pour le futur, l'investissement et la prise de décision stratégique.

💡 À retenir : Accounting records the past; Finance plans the future.

It refers to the money a company owes to its suppliers for goods or services purchased on credit. It is recorded as a liability.

💡 À retenir : Payable = Money going out (Debt).

Oui, dans le contexte du bilan, l'Equity (capitaux propres) représente la valeur appartenant aux actionnaires, ce qui inclut le capital social initial et les bénéfices accumulés.

💡 À retenir : Equity = Assets - Liabilities.

It shows the company's revenues and expenses over a specific period (e.g., a year). It determines if the company made a net profit or a net loss.

💡 À retenir : Revenue - Expenses = Net Profit/Loss.

Liquidity refers to how easily an asset can be converted into cash without affecting its market price. Cash is the most liquid asset.

💡 À retenir : High liquidity = Easy access to cash.

An overdraft occurs when a bank allows a customer to withdraw more money than they have in their account, up to a certain limit.

💡 À retenir : It is a short-term form of credit.

It is the reduction in the value of a tangible asset over time due to wear and tear or obsolescence.

💡 À retenir : It is an accounting expense that reduces the book value of assets.

It is the percentage of the principal charged by the lender to the borrower for the use of money.

💡 À retenir : It is the "cost" of borrowing money.

It is the net amount of cash and cash-equivalents being transferred into and out of a business.

💡 À retenir : Positive cash flow means more money is coming in than going out.