The main functions of money are distinguished as: a medium of exchange; a measure of value; a store of value; and, occasionally in the past, a standard of deferred payment. Any kind of object or secure verifiable record that fulfills these functions can be considered money.

The money supply of a country consists of currency (banknotes and coins) and bank money (the balance held in checking and saving accounts).  The forms of substitute money are credit cards, plastic cards and traveler’s cheques.

Finance is the function in a business that responsible for obtaining funds, managing funds within it and controlling them.

 The money that business spends in order to produce goods and services is its costs. Fixed costs are directly related to the things produced in manufacturing. Indirect costs may include things like social security charges on top of the wages.

Overhead costs or overheads usually cover all the regular non-production costs of running a business.

Things of value owned by a firm are its assets. Fixed assets are long-term. Current assets include cash receivables, bank deposits and investments in the other companies.

Liabilities are what a business owes to those outside the business.

All firms need to have financial reserves. Extra capital may be needed to expand by buying new premises or developing new products. Firms may also need working capital to preserve cash flow through the business.

The information about company’s financial performance is compiled by the company accountants and checked by independent auditors. The company’s annual report consists of three statements:

- profit and loss account/P&L (BrE) or income statement (AmE). This account shows the revenue, expenditure, the company’s turnover, costs and overheads.

- balance sheet. This document shows the financial situation of the company on a particular date.

- cash flow statement. This document shoes the flow of cash in and out of the business.