http://techbase.kde.org/index.php?title=Projects/KdeFinanceGlossary&feed=atom&action=historyProjects/KdeFinanceGlossary - Revision history2013-05-25T04:29:16ZRevision history for this page on the wikiMediaWiki 1.20.2http://techbase.kde.org/index.php?title=Projects/KdeFinanceGlossary&diff=43389&oldid=prevIpwizard: Initial collection of terms2009-07-18T13:15:14Z<p>Initial collection of terms</p>
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<td colspan='2' style="background-color: white; color:black;">← Older revision</td>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>This page describes the terms we use in the KDE Finance world.</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>This page describes the terms we use in the KDE Finance world. <ins class="diffchange diffchange-inline">And in order to make this visual, here's a short section taken from the [http://kmymoney2.sourceforge.net/online-manual/makingmostof.html#makingmostof.basicaccounting KMyMoney manual]:</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">* Account</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> Imagine your money as balls, or beans, and to stop them rolling around you</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> keep them in a box, or pot. Accounting, or Book Keeping, is the process of</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> counting the beans in the pot, or several pots.</ins></div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">* Category</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> You have some money in the pot marked "Cash". You buy some goods, so you take</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> some beans out of the cash pot and place them into another pot marked</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> "Supplier". The supplier gives you some goods in exchange for the cash, so you</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> take the beans out of the pot marked "Supplier" and put them in the pot</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> marked "Goods".</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">* Payee</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> The goods have a value (the price you paid) so you still have the same amount</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> of beans, some representing cash and some representing goods. In this case you</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> have two movements of beans, or transactions. Each transaction needs two</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> entries, one to take beans out and one to put beans in. This is called "double</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> entry book keeping" or "double entry accounting". The recording of the</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> transactions is done in a "Ledger"; each pot is known as an "Account" or</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> "Ledger code".</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div><del class="diffchange diffchange-inline">* Split</del></div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> Now you take some goods and give them to a customer, who gives you some cash</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> in exchange. The goods were worth some beans and, hopefully, the customer has</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> given us more beans than that, so making a profit. To over simplify, the beans</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> from the Goods pot come back as Cash, but we can split that as the "Cost of</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> Goods sold" and "Profit". This transaction has three entries; one side of the</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> "double entry" has been split.</ins></div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>* Transaction</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div> </div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>* <ins class="diffchange diffchange-inline">'''Account''': The pot we keep the beans in. An account is denominated in a certain currency/security and has a balance.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Balance''': The number of beans in a pot at a given time.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Currency''': Denomination of an account. Actually treated as a special form of security.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Base currency''': The currency selected by the user as his default currency.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Category''': Synonym for income and expense accounts</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Closing balance''': The balance of an account at the end of a book keeping period (e.g. end of a fiscal year).</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Ledger''': The (visual) area where we record the transactions and splits</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Opening balance''': The balance of an account at the beginning of a book keeping period (e.g. beginning of a fiscal year).</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Payee''': The entity receiving or paying funds</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Price''': The exchange rate between two securities/currencies at a given point in time. Used to transform the balance of an account kept in one currency/security into another currency. Assuming an account of shares traded in a foreign currency, one needs to apply two prices to gain the value of the account in base currency: first the price for the security (shares) in the foreign currency and then the price for the foreign currency in the base currency.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Security''': Denomination of an account. The real beans in the above example are a security as is a currency or some sort of shares.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''Split''': The object used to record taking out or putting in beans of an account. To move some beans from one account into another, one needs two splits. A split has a reference to an account and an amount of beans moved in/out of this account and their value in the enclosing transaction's security. If the security of the account and the transaction are identical, the amount and value are identical. The ratio between amount and value is the price of this security for this transaction.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">* '''</ins>Transaction<ins class="diffchange diffchange-inline">''': The container for splits. A transaction is denominated in a security.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">** '''Regular transaction''': A transaction containing two splits</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">** '''Split transaction''': A transaction containing more than two splits.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">** '''Balanced transaction''': A transaction, where the sum of the values of all splits is zero. A balanced transaction that actually moves beans must have at least two splits (hence double entry accounting). In a balanced transaction with only a single split, the amount of that split '''must''' be zero.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">** '''Unbalanced transaction''': A transaction that violates the requirement that the sum of the values of all splits is zero. A single unbalanced transaction unbalances the whole book keeping.</ins></div></td></tr>
</table>Ipwizardhttp://techbase.kde.org/index.php?title=Projects/KdeFinanceGlossary&diff=42910&oldid=prevIpwizard: Started page2009-07-04T16:28:32Z<p>Started page</p>
<p><b>New page</b></p><div>This page describes the terms we use in the KDE Finance world.<br />
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* Account<br />
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* Category<br />
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* Payee<br />
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* Split<br />
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* Transaction</div>Ipwizard