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Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting
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Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
Dictionary of accounting
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Dictionary of accounting

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  • 1. Dictionary ofAccounting Fourth edition
  • 2. Specialist dictionariesDictionary of Agriculture 978 0 7136 7778 2Dictionary of Banking and Finance 978 0 7136 7739 3Dictionary of Business 978 0 7136 7918 2Dictionary of Computing 978 0 7475 6622 9Dictionary of Economics 978 0 7136 8203 8Dictionary of Environment and Ecology 978 0 7475 7201 5Dictionary of Food Science and Nutrition 978 0 7136 7784 3Dictionary of Human Resources and Personnel Management 978 0 7136 8142 0Dictionary of Information and Library Management 978 0 7136 7591 7Dictionary of Leisure, Travel and Tourism 978 0 7136 8545 9Dictionary of Marketing 978 0 7475 6621 2Dictionary of Media Studies 978 0 7136 7593 1Dictionary of Medical Terms 978 0 7136 7603 7Dictionary of Nursing 978 0 7475 6634 2Dictionary of Politics and Government 978 0 7475 7220 6Dictionary of Publishing and Printing 978 0 7136 7589 4Dictionary of Science and Technology 978 0 7475 6620 5Dictionary of Sport and Exercise Science 978 0 7136 7785 0 Easier English™ titlesEasier English Basic Dictionary 978 0 7475 6644 1Easier English Basic Synonyms 978 0 7475 6979 4Easier English Dictionary: Handy Pocket Edition 978 0 7475 6625 0Easier English Intermediate Dictionary 978 0 7475 6989 3Easier English Student Dictionary 978 0 7475 6624 3English Thesaurus for Students 978 1 9016 5931 3 Check Your English Vocabulary workbooksAcademic English 978 0 7475 6691 5Business and Administration 978 0 7136 7916 8Human Resources 978 0 7475 6997 8Law 978 0 7136 7592 4Living in the UK 978 0 7136 7914 4Medicine 978 0 7136 7590 0FCE + 978 0 7475 6981 7IELTS 978 0 7136 7604 4Phrasal Verbs and Idioms 978 0 7136 7805 5TOEFL® 978 0 7475 6984 8TOEIC ® 978 0 7136 7508 5Visit our website for full details of all our books: www.acblack.com
  • 3. Dictionary ofAccounting Fourth edition S.M.H. Collin A & C Black ț London
  • 4. www.acblack.com First published in Great Britain in 1992 by Peter Collin Publishing Second edition published 2001 Third edition published 2004 This fourth edition published 2007 A & C Black Publishers Ltd 38 Soho Square, London W1D 3HB © A & C Black Publishers Ltd 2007 All rights reserved. No part of this publication may be reproduced in any form or by any means without the permission of the publishers A CIP record for this book is available from the British Library eISBN-13: 978-1-4081-0228-2 Text Production and Proofreading Heather Bateman, Stephen Curtis, Katy McAdam, Howard SargeantThis book is produced using paper that is made from wood grown in managed, sustainable forests. It is natural, renewable and recyclable. The logging and manufacturing processes conform to the environmental regulations of the country of origin. Text typeset by A & C Black Printed in Spain by GraphyCems
  • 5. PrefaceThis dictionary provides a basic vocabulary of terms used in accounting,from personal finance and investments to company accounts, balancesheets and stock valuations. It is ideal for students of accounting and foranyone who needs to check the meaning of an accountancy term, frompeople working in businesses who may not be professional accountants totranslators or those for whom English is an additional language.Each headword is explained in clear, straightforward English andexamples are given to show how the word may be used in context. Thereare also quotations from newspapers and specialist magazines. Sampledocuments and financial statements are also provided.Thanks are due to Hannah Gray and Sarah Williams for their invaluablehelp and advice during the production of this new edition.
  • 6. PronunciationThe following symbols have been used to show the pronunciation of the mainwords in the dictionary.Stress has been indicated by a main stress mark ( ) and a secondary stress mark( ). Note that these are only guides, as the stress of the word changes according toits position in the sentence. Vowels Consonants back b buck ɑ harm d dead ɒ stop ð other ai type d jump aυ how f fare aiə hire gold aυə hour h head ɔ course j yellow ɔi annoy k cab e head l leave eə fair m mix ei make n nil eυ go ŋ sing word p print i keep r rest i happy s save ə about ʃ shop i fit t take iə near tʃ change u annual θ theft u pool v value υ book w work υə tour x loch shut measure z zone
  • 7. Accounting.fm Page 1 Tuesday, February 13, 2007 1:40 PM A abnormal spoilage / b nɔ m(ə)l AAA abnormal spoilage AAA abbreviation American Accounting | Association spɔilid / noun spoilage that contributes to AAPA AAPA abbreviation Association of Author- an abnormal loss above par /ə b v pɑ / adjective referring above par ised Public Accountants | AARF to a share with a market price higher than its AARF abbreviation Australian Accounting face value Research Foundation above-the-line /ə b v ðə lain/ adjec- above-the-line AAT | AAT abbreviation Association of Account- tive, adverb 1. used to describe entries in a ing Technicians company’s profit and loss accounts that abacus abacus / bəkəs/ noun a counting device appear above the line which separates consisting of parallel rods strung with beads, entries showing the origin of the funds that still widely used for business and accounting have contributed to the profit or loss from in China and Japan those that relate to its distribution. Excep- abandonment abandonment /ə b ndənmənt/ noun an | tional and extraordinary items appear above act of giving up voluntarily something that the line. ć Exceptional items are noted you own, such as an option or the right to a above the line in company accounts. ı property ˽ abandonment of a claim giving below-the-line 2. relating to revenue items up a claim in a civil action in a government budget abridged accounts /ə brid d ə kaυnts/ abridged accounts abatement abatement /ə beitmənt/ noun a reduc- | | | plural noun financial statements produced tion in a payment, e.g., if a company’s or individual’s total assets are insufficient to by a company that fall outside the require- cover their debts or legacies ments stipulated in the Companies Act absorb /əb zɔ b/ verb 1. to take in a small absorb ABB | ABB abbreviation activity-based budgeting item so that it forms part of a larger one ˽ a abbreviated accounts abbreviated accounts /ə bri vieitid ə | | business which has been absorbed by a kaυnts/ plural noun a shortened version of competitor a small business which has been a company’s annual accounts that a small or made part of a larger one 2. to assign an medium sized company can file with the overhead to a particular cost centre in a com- Registrar of Companies, instead of a full pany’s production accounts so that its iden- version tity becomes lost. ı absorption costing absorbed overhead /əb zɔ bd ABC absorbed overhead ABC abbreviation activity-based costing | ab initio ab initio / b i niʃiəυ/ phrase a Latin | əυvəhed/ noun an overhead attached to phrase meaning ‘from the beginning’ products or services by means of overhead ABM absorption rates ABM abbreviation activity-based manage- absorption /əb zɔ pʃən/ noun the proc- absorption | ment ess of making a smaller business part of a abnormal gain abnormal gain / b nɔ m(ə)l | ein/ larger one, so that the smaller company in noun any reduction in the volume of process effect no longer exists loss below that set by the normal loss allow- absorption absorption costing costing /əb zɔ pʃən| ance. Abnormal gains are generally costed kɒstiŋ/ noun 1. a form of costing for a as though they were completed products. product that includes both the direct costs of abnormal loss abnormal loss / b nɔ m(ə)l lɒs/ noun | production and the indirect overhead costs any losses which exceed the normal loss as well 2. an accounting practice in which allowance. Abnormal losses are generally fixed and variable costs of production are costed as though they were completed prod- absorbed by different cost centres. Provid- ucts. ing all the products or services can be sold at
  • 8. Accounting.fm Page 2 Tuesday, February 13, 2007 1:40 PMabsorption rate 2a price that covers the allocated costs, this acceptance sampling acceptance sampling /ək septəns |method ensures that both fixed and variable sɑ mpliŋ/ noun the process of testing acosts are recovered in full. ı marginal cost- small sample of a batch to see if the wholeing batch is good enough to be acceptedabsorption rate /əb zɔ pʃən reit/ nounabsorption rate accepting house | accepting house /ək septiŋ haυs/, |a rate at which overhead costs are absorbed acceptance house /ək septəns haυs/ |into each unit of production noun a firm, usually a merchant bank, whichabstract / bstr kt/ noun a short form ofabstract accepts bills of exchange at a discount, ina report or document ć to make an abstract return for immediate payment to the issuer,of the company accounts in this case the Bank of Englandabusive tax shelter /ə bju siv t ksabusive tax shelter Accepting Houses Committee | Accepting Houses Committee /ək | ʃeltə/ noun a tax shelter used illegally in septiŋ haυziz kə miti/ noun the main|order to avoid or reduce tax payments London merchant banks, which organise theAcademy of Accounting HistoriansAcademy of Accounting Historians lending of money with the Bank of England./ə k dəmi əv ə kaυntiŋ hi stɔ riənz/ | | | They receive slightly better discount ratesnoun a US organisation, founded in 1973, from the Bank.that promotes the study of the history of acceptor acceptor /ək septə/ noun a person who |accounting accepts a bill of exchange by signing it, thusACAUS abbreviation Association of Char-ACAUS making a commitment to pay it by a speci-tered Accountants in the United States fied dateACCA abbreviation Association of Char-ACCA accident insurance accident insurance / ksid(ə)nt in |tered Certified Accountants ʃυərəns/ noun insurance which will payaccelerate /ək seləreit/ verb to reduce the insured person when an accident takesaccelerate |the amount of time before a maturity date placeaccelerated cost recovery systemaccelerated cost recovery system accommodation accommodation /ə kɒmə deiʃ(ə)n/ | |/ k selrəreitid kɒst ri k vəri sistəm/ | | noun money lent for a short timenoun a system used in the United States for accommodation bill accommodation bill /ə kɒmə deiʃ(ə)n | |calculating depreciation in a way that bil/ noun a bill of exchange where the per-reduces tax liability son signing (the ‘drawee’) is helping anotheraccelerated depreciation /əkaccelerated depreciation | company (the ‘drawer’) to raise a loan seləreitid dipri ʃi eiʃ(ə)n/ noun a system accountof depreciation which reduces the value of | account /ə kaυnt/ noun 1. a record of |assets at a high rate in the early years to financial transactions over a period of time,encourage companies, as a result of tax such as money paid, received, borrowed oradvantages, to invest in new equipment owed ć Please send me your account or a detailed or an itemised account. 2. a struc-acceleration /ək selə reiʃ(ə)n/ noun theacceleration | | tured record of financial transactions thatspeeding up of debt repayment may be maintained as a list or in a more for-acceleration clause /ək selə reiʃ(ə)nacceleration clause | | mal structured credit and debit basis 3. (in a klɔ z/ noun US a clause in a contract that shop) an arrangement in which a customerprovides for immediate payment of the total acquires goods and pays for them at a laterbalance if there is a breach of contract date, usually the end of the month ć to haveacceptance /ək septəns/ noun 1. the actacceptance | an account or a credit account with Harrodsof signing a bill of exchange to show that ć Put it on my account or charge it to myyou agree to pay it ˽ to present a bill for account. ć They are one of our largestacceptance to present a bill for payment by accounts. 4. a period during which sharesthe person who has accepted it 2. a bill are traded for credit, and at the end of whichwhich has been accepted 3. the act of accept- the shares bought must be paid for (NOTE:ing an offer of new shares for which you On the London Stock Exchange, there arehave applied twenty-four accounts during the year, eachacceptance credit /ək septəns kredit/acceptance credit | running usually for ten working days.) 5. anoun an arrangement of credit from a bank, customer who does a large amount of busi-where the bank accepts bills of exchange ness with a firm and has an account with it ćdrawn on the bank by the debtor: the bank Smith Brothers is one of our largestthen discounts the bills and is responsible accounts. ć Our sales people call on theirfor paying them when they mature. The best accounts twice a month. accountabilitydebtor owes the bank for the bills but these accountability /ə kaυntə biliti/ noun | |are covered by letters of credit. the fact of being responsible to someone for
  • 9. Accounting.fm Page 3 Tuesday, February 13, 2007 1:40 PM 3 accounting concept something, e.g. the accountability of direc- account code account code /ə kaυnt kəυd/ noun a | tors to the shareholders number assigned to a particular account in a accountable /ə kaυntəb(ə)l/ adjective accountable | numerical accounting system, e.g., a chart of referring to a person who has to explain accounts what has taken place or who is responsible account end account end /ə kaυnt end/ noun the end | for something (NOTE: You are accountable of an accounting period to someone for something.) account executive account executive /ə kaυnt i | | account analysis /ə kaυnt ə n ləsis/ account analysis | | zekjυtiv/ noun 1. an employee who looks noun analysis of a company’s accounts with after customers or who is the link between the aim of discerning how its activities affect customers and the company 2. an employee its costs of an organisation such as a bank, public accountancy /ə kaυntənsi/ noun the accountancy | relations firm or advertising agency who is work of an accountant ć They are studying responsible for looking after particular cli- accountancy or They are accountancy stu- ents and handling their business with the dents. organisation accountancy bodies /ə kaυntənsi accountancy bodies account form | account form /ə kaυnt fɔ m/ noun a bal- | bɒdi z/ plural noun professional institu- ance sheet laid out in horizontal form. It is tions and associations for accountants the opposite of ‘report’ or ‘vertical’ form. accountancy profession /ə kaυntənsi accountancy profession accounting prə feʃ(ə)n/ noun the professional bodies | accounting /ə kaυntiŋ/ noun 1. the work | | of recording money paid, received, bor- that establish entry standards, organise pro- rowed, or owed ć accounting methods ć fessional examinations, and draw up ethical accounting procedures ć an accounting and technical guidelines for accountants machine 2. accountancy, the work of an accountant /ə kaυntənt/ noun 1. a per- accountant | accountant as a course of study son who keeps a company’s accounts or deals with an individual person’s tax affairs ‘…applicants will be professionally quali- fied and have a degree in Commerce or ć The chief accountant of a manufacturing Accounting’ [Australian Financial group. ć The accountant has shown that Review] there is a sharp variance in our labour costs. Accounting and Finance Association of Australia and New Zealand 2. a person who advises a company on its Accounting and Finance Associa- finances ć I send all my income tax queries tion of Australia and New Zealand /ə | to my accountant. 3. a person who examines kaυntiŋ ən fain ns ə səυsieiʃ(ə)n əv ɒs | | accounts treiliə ən nju zi lənd/ noun an organisa- Accountants’ International Study Accountants’ International Study Group tion for accounting and finance academics, Group /ə kaυntənts intən ʃ(ə)nəl | researchers and professionals working in st di ru p/ noun a body of professional Australia and New Zealand. Abbreviation accounting bodies from the United States, AFAANZ accounting bases Canada, and the United Kingdom that was accounting bases /ə kaυntiŋ beisi z/ | established in 1966 to research accounting plural noun the possible ways in which practices in the three member countries. accounting concepts may be applied to After publishing 20 reports, it was dis- financial transactions, e.g. the methods used banded in 1977 with the foundation of the to depreciate assets, how intangible assets or International Federation of Accountants. work in progress are dealt with accountant’s liability /ə kaυntənts accounting change accounting change accountant’s liability | /ə kaυntiŋ | laiə biliti/ noun the legal liability of an | tʃeind / noun any of various changes that accountant who commits fraud or is held to affect a set of accounts, e.g. a change in the be negligent method of calculating the depreciation of accountants’ opinion /ə kaυntənts ə accountants’ opinion | | assets or a change in the size, structure or pinjən/ noun a report of the audit of a com- nature of the company pany’s books, carried out by a certified pub- accounting concept accounting concept /ə kaυntiŋ | lic accountant (NOTE: The US term is audit kɒnsept/ noun a general assumption on opinion.) which accounts are prepared. The main con- accountants’ report /ə kaυntənts ri accountants’ report | | cepts are: that the business is a going con- pɔ t/ noun in the United Kingdom, a report cern, that revenue and costs are noted when written by accountants that is required by the they are incurred and not when cash is London Stock Exchange to be included in received or paid, that the present accounts the prospectus of a company seeking a list- are drawn up following the same principles ing on the Exchange as the previous accounts, that the revenue or
  • 10. Accounting.fm Page 4 Tuesday, February 13, 2007 1:40 PMaccounting control 4costs are only recorded if it is certain that accounting period /ə kaυntiŋ piəriəd/ accounting period |they will be incurred. noun a period of time at the end of which theaccounting control /ə kaυntiŋ kənaccounting control | | firm’s accounts are made up trəυl/ noun procedures designed to ensure accounting policies /ə kaυntiŋ accounting policies |that source data for accounts are accurate pɒlisiz/ plural noun the accounting basesand proper, in order to prevent fraud used by a company when preparing its finan-accounting conventions /ə kaυntiŋaccounting conventions | cial statementskən venʃ(ə)nz/ plural noun the fundamen- accounting practice /ə kaυntiŋ accounting practice | |tal assumptions that govern the practice of pr ktis/ noun the way in which account-accounting, e.g., consistency and prudence. ants and auditors implement accounting pol-ı conceptual framework iciesaccounting cycle /ə kaυntiŋ saik(ə)l/ accounting principles /ə kaυntiŋaccounting cycle accounting principles | |noun the regular process of recording, ana- prinsip(ə)lz/ plural noun standards oflysing and reporting a company’s transac- accuracy and probity that apply to those car-tions for a given period rying out accounting proceduresaccounting date /ə kaυntiŋ deit/ noun Accounting Principles Board /əaccounting date Accounting Principles Board | |the date on which an accounting period kaυntiŋ prinsip(ə)lz bɔ d/ noun the USends, usually 31st December for annual body which issued Opinions that formedaccounts but it can in fact be any date much of US Generally Accepted Account-Accounting Directives /ə kaυntiŋ daiAccounting Directives | | ing Principles up to 1973 when the Financial rektivz/ plural noun a set of EU directives Accounting Standards Board (FASB) tookissued with the aim of regulating accounting over that role. Abbreviation APBprocedures in member states accounting procedure /ə kaυntiŋ prə accounting procedure | |accounting entity /ə kaυntiŋ entəti/accounting entity | si d ə/ noun an accounting method devel-noun the unit for which financial statements oped by an individual or organisation to dealand accounting records are prepared, e.g., a with routine accounting taskslimited company or a partnership. ı report- accounting profits /ə kaυntiŋ prɒfits/ accounting profits |ing entity plural noun the difference between revenueaccounting equation /ə kaυntiŋ iaccounting equation | | and the costs of production kwei (ə)n/ noun the basic formula that accounting rate of return /ə kaυntiŋ accounting rate of return |underpins double-entry bookkeeping. It can reit əv ri t n/ noun a method of valuing |be expressed most simply as ‘assets + shares in a company where the company’sexpenses = liabilities + capital + revenue’ estimated future profits are divided by thewhere the debit amounts to the left of the rate of return required by investors. Abbrevi-equals sign must be equivalent to the credit ation ARRamounts to the right. Also called balance accounting accounting records records /ə kaυntiŋ |sheet equation rekɔ dz/ plural noun all documents inaccounting error /ə kaυntiŋ erə/ nounaccounting error | which accounting information is recorded,any accounting inaccuracy or misrepresen- used during the preparation of financialtation that is the result of error, not inten- statementstional fraud accounting reference date /ə kaυntiŋ accounting reference date |accounting event /ə kaυntiŋ i vent/ ref(ə)rəns deit/ noun the last day of aaccounting event | |noun a transaction recorded in a business’s company’s accounting reference period.books of account Abbreviation ARDaccounting fees /ə kaυntiŋ fi z/ plural accounting reference period /əaccounting fees accounting reference period | |noun fees paid to an accountant for prepar- kaυntiŋ ref(ə)rəns piəriəd/ noun 1. theing accounts, which are deductible against period for which a company makes up itstax accounts. In most, but not all, cases, theaccounting information system /əaccounting information system | period is 12 months. 2. the period for which kaυntiŋ infə meiʃ(ə)n sistəm/ noun a | corporation tax is calculatedsystem, usually computer-based, that proc- accounting software /ə kaυntiŋ accounting software |esses information on a company’s transac- sɒftweə/ noun computer programs used totions for accounting purposes enter and process accounts informationaccounting manual /ə kaυntiŋ accounting standard /ə kaυntiŋaccounting manual accounting standard | | m njuəl/ noun a handbook or set of st ndəd/ noun an authoritative statementinstructions that set out all procedures and of how particular types of transaction andresponsibilities of those engaged in an other events should be reflected in financialentity’s accounting systems statements. Compliance with accounting
  • 11. Accounting.fm Page 5 Tuesday, February 13, 2007 1:40 PM 5 accumulated profit standards will normally be necessary for accretion /ə kri ʃ(ə)n/ noun the process accretion | financial statements to give a true and fair of adding interest to a fund over a period of view. (NOTE: These principles are recom- time mended by the Accounting Standards accrual /ə kru əl/ noun a gradual increase accrual | Board in the United Kingdom or by the by addition FASB in the United States.) accruals /ə kru əlz/ plural noun same as accruals | Accounting Standards Board /ə Accounting Standards Board | accrued liabilities kaυntiŋ st ndədz bɔ d/ noun a commit- accruals basis /ə kru əl beisis/, accru- accruals basis | tee set up by British accounting institutions als concept /ə kru əlz kɒnsept/ noun a | to monitor methods used in accounting. method of preparing accounts in which rev- Abbreviation ASB enues and costs are both reported during the Accounting Standards Committee Accounting Standards Committee period to which they refer and not during the /ə kaυntiŋ st ndədz kə miti/ noun a UK | | period when payments are received or made accounting standards issuing body whose accrue /ə kru / verb 1. to record a finan- accrue | functions were taken over by the ASB in cial transaction in accounts when it takes 1990. Abbreviation ASC place, and not when payment is made or accounting system /ə kaυntiŋ accounting system | received 2. to increase and be due for pay- sistəm/ noun the means used by an organi- ment at a later date ć Interest accrues from sation to produce its accounting information the beginning of the month. accounting technician /ə kaυntiŋ tek accounting technician | | accrued dividend /ə kru d dividend/ accrued dividend | niʃ(ə)n/ noun a person who assists in the noun a dividend earned since the last divi- preparation of accounts but who is not a dend was paid fully qualified accountant accrued expense /ə kru d ik spens/ accrued expense | | accounting unit /ə kaυntiŋ ju nit/ accounting unit | noun an expense that has been incurred noun any unit which takes part in financial within a given accounting period but not yet transactions which are recorded in a set of paid accounts. It can be a department, a sole accrued income /ə kru d ink m/ noun accrued income | trader, a Plc or some other unit. revenue entered in accounts, although pay- account payee /ə kaυnt pei i / noun the account payee | | ment has not yet been received words printed on most UK cheques indicat- accrued interest /ə kru d intrəst/ noun accrued interest | ing that the cheque can only be paid into the interest which has been earned by an inter- account of the person or business to whom est-bearing investment ć Accrued interest is the cheque is written, or be cashed for a fee added quarterly. at an agency offering a cheque cashing serv- accrued liabilities /ə kru d laiə accrued liabilities | | ice bilitiz/ plural noun liabilities which are accounts /ə kaυnts/ plural noun detailed accounts | recorded in an accounting period, although records of a company’s financial affairs payment has not yet been made. This refers accounts department /ə kaυnts di accounts department | | to liabilities such as rent, electricity, etc. pɑ tmənt/ noun a department in a com- Also called accruals pany which deals with money paid, accrued revenue /ə kru d revənju / accrued revenue | received, borrowed, or owed noun same as accrued income accounts manager /ə kaυnts accounts manager | accumulate /ə kju mjυleit/ verb to grow accumulate | m nid ə/ noun the manager of an in quantity by being added to, or to get more accounts department of something over a period of time ć We accounts payable /ə kaυnts peiəb(ə)l/ accounts payable | allow dividends to accumulate in the fund. plural noun money owed by a company accumulated depreciation accumulated depreciation /ə | accounts receivable /ə kaυnts ri kju mjυleitid di pri ʃi eiʃ(ə)n/ noun the accounts receivable | | | | si vəb(ə)l/ plural noun money owed to a total amount by which an asset has been company. Abbreviation AR depreciated since it was purchased accounts receivable turnover /ə accumulated earnings tax /ə accounts receivable turnover accumulated earnings tax | | kaυnts ri si vəb(ə)l t nəυvə/ noun a | kju mjυleitid niŋz t ks/, accumu- statistic showing on average how long cus- lated profits tax /ə kju mjυleitid prɒfits | tomers take to pay money they owe for t ks/ noun US a tax on earnings above a goods or services received specified limit which are unjustifiably accrete /ə kri t/ verb 1. (of a fund) to have accrete | retained in a business to avoid paying higher interest added to it 2. (of assets) to grow as personal income tax a result of mergers, expansion or the acqui- accumulated profit /ə kju mjυleitid accumulated profit | sition of other interests prɒfit/ noun a profit which is not paid as
  • 12. Accounting.fm Page 6 Tuesday, February 13, 2007 1:40 PMaccumulated reserves 6dividend but is taken over into the accounts activity-based budgeting / k tiviti activity-based budgeting |of the following year beist b d itiŋ/ noun the allocation ofaccumulatedaccumulated reserves reserves /ə | resources to individual activities. Activity- kju mjυleitid ri z vz/ plural noun | based budgeting involves determiningreserves which a company has put aside over which activities incur costs within an organ-a period of years isation, establishing the relationshipsaccumulationaccumulation /ə kju mjυ leiʃ(ə)n/ | | between them, and then deciding how muchnoun the process of growing larger by being of the total budget should be allocated toadded to, or of getting more and more of each activity. Abbreviation ABB activity-based costing / k tiviti activity-based costingsomething |ACH abbreviation US Automated ClearingACH beist kɒstiŋ/ noun a costing system usedHouse to assign overhead costs to specific items produced, by looking at specific cost drivers.acid test / sid test/, acid test ratioacid test Abbreviation ABC. ı cost driver, activitynoun same as liquidity ratio driver, resource driveracquisition / kwi ziʃ(ə)n/ noun theacquisition activity-based management / k activity-based management | |takeover of a company. The results and cash tiviti beist m nid mənt/ noun a sys-flows of the acquired company are brought tem of management that uses activity-basedinto the group accounts only from the date of cost information for a variety of purposesacquisition: the figures for the previous including cost reduction, cost modelling andperiod for the reporting entity should not be customer profitability analysis. Abbrevia-adjusted. The difference between the fair tion ABMvalue of the net identifiable assets acquired activity chart / k tiviti tʃɑ t/ noun a activity chart |and the fair value of the purchase considera- plan showing work which has been done,tion is goodwill. made so that it can be compared to a previ-acquisition accounting / kwiacquisition accounting | ous plan showing how much work should be ziʃ(ə)n ə kaυntiŋ/ noun a full consolida- | donetion, where the assets of a subsidiary com- activity cost pool / k tiviti kɒst pu l/ activity cost pool |pany which has been purchased are included noun a grouping of all cost elements associ-in the parent company’s balance sheet, and ated with an activitythe premium paid for the goodwill is written activity driver / k tiviti draivə/ a type activity driveroff against the year’s earnings | of cost driver which is used to quantify theacross-the-board /ə krɒs ðə bɔ d/across-the-board | activities involved in creating a product oradjective applying to everything or everyone serviceć an across-the-board price increase or activity driver analysis / k tiviti activity driver analysis |wage increase draivər ə n ləsis/ noun the identification |act / kt/ noun a law passed by parliamentact and evaluation of the activity drivers used towhich must be obeyed by the people trace the cost of activities to cost objects. Itactive / ktiv/ adjective involving manyactive may also involve selecting activity driverstransactions or activities ć an active with potential to contribute to the cost man-demand for oil shares ć an active day on the agement function with particular referenceStock Exchange ć Computer shares are very to cost reduction.active. act of God / kt əv ɒd/ noun some- act of Godactive account / ktiv ə kaυnt/ nounactive account | thing you do not expect to happen and whichan account, such as a bank account or invest- cannot be avoided, e.g. a storm or a floodment account, which is used to deposit and (NOTE: Acts of God are not usually coveredwithdraw money frequently by insurance policies.) actual / ktʃuəl/ adjective real or correct actualactive partner / ktiv pɑ tnə/ noun aactive partnerpartner who works in a company that is a ć What is the actual cost of one unit? ć Thepartnership actual figures for directors’ expenses are notactivity / k tiviti/ noun something whichactivity | shown to the shareholders. actual cash value / ktʃuəl k ʃ actual cash valueis done, especially something which isinvolved in creating a product or a service v lju / noun the amount of money, less ‘…preliminary indications of the level of depreciation, that it would cost to replace business investment and activity during something damaged beyond repair with a the March quarter will provide a good pic- comparable item actual cost / ktʃuəl kɒst/ noun the total actual cost ture of economic activity in the year’ [Aus- tralian Financial Review] cost of producing or buying an item, which
  • 13. Accounting.fm Page 7 Tuesday, February 13, 2007 1:40 PM 7 adjustable may include, e.g., its price plus the cost of living with them, formerly called the ‘sin- delivery or storage gle-parent allowance’ actual price / ktʃuəl prais/ noun a additional premium /ə diʃ(ə)nəl actual price additional premium | price for a commodity which is for immedi- pri miəm/ noun a payment made to cover ate delivery extra items in an existing insurance actuals / ktʃuəlz/ plural noun real fig- additional voluntary contributions actuals additional voluntary contributions ures ć These figures are the actuals for last /ə diʃ(ə)n(ə)l | vɒlənt(ə)ri kɒntri | year. bju ʃ(ə)nz/ plural noun extra payments actuarial / ktʃu eəriəl/ adjective calcu- actuarial | made voluntarily by an employee to a pen- lated by an actuary ć The premiums are sion scheme on top of the normal contribu- worked out according to actuarial calcula- tions, up to a maximum of 15% of gross tions. earnings. Abbreviation AVCs adequate disclosure / dikwət dis adequate disclosure actuarial tables / ktʃueəriəl actuarial tables | teib(ə)lz/ plural noun lists showing how kləυ ə/ noun a comprehensive presenta- long people are likely to live, used to calcu- tion of statistics in financial statements, such late life assurance premiums and annuities that they can be used to inform investment actuary / ktʃuəri/ noun a person actuary decisions adjudicate /ə d u dikeit/ verb to give a adjudicate employed by an insurance company or other | organisation to calculate the risk involved in judgment between two parties in law or to an insurance, and therefore the premiums decide a legal problem ć to adjudicate a payable by people taking out insurance claim ć to adjudicate in a dispute ˽ he was add / d/ verb to put figures together to add adjudicated bankrupt he was declared make a total ć If you add the interest to the legally bankrupt adjudication /ə d u di keiʃ(ə)n/ noun adjudication capital you will get quite a large sum. ć | | Interest is added monthly. the act of giving a judgment or of deciding a add up / d p/ phrasal verb to put several legal problem figures together to make a total ć He made adjudication of bankruptcy /ə adjudication of bankruptcy | a mistake in adding up the column of fig- d u dikeiʃ(ə)n əv b ŋkr ptsi/ noun a ures. legal order making someone bankrupt add up to / d p tυ/ phrasal verb to make adjudication tribunal /ə d u di adjudication tribunal | | a total of ć The total expenditure adds up to keiʃ(ə)n trai bju n(ə)l/ noun a group | more than £1,000. which adjudicates in industrial disputes added value / did v lju / noun an adjudicator /ə d u dikeitə/ noun 1. a added value adjudicator | amount added to the value of a product or person who gives a decision on a problem ć service, equal to the difference between its an adjudicator in an industrial dispute 2. ˽ cost and the amount received when it is sold. the Adjudicator official who examines Wages, taxes, etc. are deducted from the complaints from individuals and businesses added value to give the profit. ı VAT about how the Inland Revenue handles their addend / dend/ noun a number added to addend affairs, but does not deal with questions of the augend in an addition tax liability adjust /ə d st/ verb to change something adjust addition /ə diʃ(ə)n/ noun 1. a thing or per- addition | | son added ć The management has stopped to fit new conditions ć Prices are adjusted all additions to the staff. ć We are exhibiting for inflation. several additions to our product line. ć The ‘…inflation-adjusted GNP moved up at a marketing director is the latest addition to 1.3% annual rate’ [Fortune] the board. 2. an arithmetical operation con- ‘Saudi Arabia will no longer adjust its pro- sisting of adding together two or more num- duction to match short-term supply with bers to make a sum ć You don’t need a cal- demand’ [Economist] culator to do simple addition. ‘…on a seasonally-adjusted basis, output additional /ə diʃ(ə)nəl/ adjective extra additional | of trucks, electric power, steel and paper which is added ć additional costs ć They decreased’ [Business Week] sent us a list of additional charges. ć Some adjustable rate mortgage /ə adjustable rate mortgage | additional clauses were added to the con- d stəb(ə)l reit mɔ id / noun a mort- tract. ć Additional duty will have to be paid. gage where the interest rate changes accord- additional personal allowance /ə additional personal allowance | ing to the current market rates. Abbreviation diʃ(ə)nəl p s(ə)n(ə)l ə laυəns/ noun a | ARM tax allowance which can be claimed by a adjustable rate preferred stock /ə adjustable | single person who has a child of school age d stəb(ə)l reit pri f d stɒk/ noun |
  • 14. Accounting.fm Page 8 Tuesday, February 13, 2007 1:40 PMadjusted gross income 8preference shares on which dividends are ADR abbreviation American Depositary ADRpaid in line with the interest rate on Treasury Receiptbills. Abbreviation ARPS ad valorem / d və lɔ rəm/ adjective ad valorem |adjusted gross income /ə d stidadjusted gross income | used to describe a tax or commission, e.g., rəυs ink m/ noun US a person’s total Value Added Tax, that is calculated on theannual income less expenses, pension con- value of the goods or services provided,tributions, capital losses, etc., used as a basis rather than on their number or size ć ad val-to calculate federal income tax. Abbrevia- orem duty ć ad valorem taxtion AGI ad valorem duty / d və lɔ rəm dju ti/ ad valorem duty |adjuster /ə d stə/ noun a person whoadjuster | noun the duty calculated on the sales valuecalculates losses for an insurance company of the goodsadjusting entry /ə d stiŋ entri/ nounadjusting entry ad valorem tax / d və lɔ rem t ks/ ad valorem tax | |an entry in accounts which is made to cor- noun a tax calculated according to the valuerect a mistake in the accounts of the goods taxedadjustment /ə d stmənt/ noun 1. anadjustment advance /əd vɑ ns/ noun money paid as a | advanceentry in accounts which does not represent a |receipt or payment, but which is made to loan or as a part of a payment to be mademake the accounts correct 2. a change in the later ć She asked if she could have a cashexchange rates, made to correct a balance of advance. ć We paid her an advance onpayment deficit account. ć Can I have an advance of $100 against next month’s salary? í adjectiveadminister /əd ministə/ verb to organise,administer | early, or taking place before something elsemanage or direct the whole of an organisa- happens ć advance payment ć Advancetion or part of one ć She administers a large holiday bookings are up on last year. ć Youpension fund. must give seven days’ advance notice ofadministered price /əd ministədadministered price | withdrawals from the account. í verb 1. toprais/ noun US a price fixed by a manufac- pay an amount of money to someone as aturer which cannot be varied by a retailer loan or as a part of a payment to be made(NOTE: The UK term is resale price mainte- later ć The bank advanced him $100,000nance.) against the security of his house. 2. to makeadministration /əd mini streiʃ(ə)n/administration | | something happen earlier ć The date of thenoun 1. the action of organising, controlling shipping has been advanced to May 10th. ćor managing a company 2. an appointment The meeting with the German distributorsby a court of a person to manage the affairs has been advanced from 11.00 to 9.30.of a company advance payment guarantee /əd advance payment guarantee |administration costs /əd miniadministration costs | | vɑ ns peimənt rən ti /, advance pay- | streiʃ(ə)n kɒsts/, administration ment bond /əd vɑ ns peimənt bɒnd/ |expenses /əd mini streiʃ(ə)n ik spensiz/ | | | noun a guarantee that enables a buyer toplural noun the costs of management, not recover an advance payment made under aincluding production, marketing, or distri- contract or order if the supplier fails to fulfilbution costs its contractual obligationsadministrative expenses /ədadministrative expenses adverse balance / dv s b ləns/ adverse balance | ministrətiv ik spensiz/ plural noun same | noun the deficit on an account, especially aas administration costs nation’s balance of payments accountadministrative receiver /ədadministrative receiver adverse opinion / dv s ə pinjən/ | adverse opinion ministrətiv ri si və/ noun a person | noun US an auditor’s report that a com- |appointed by a court to administer the affairs pany’s financial statement is not a fair repre-of a company sentation of the company’s actual financialadministrative receivership /ədadministrative receivership | position ministrətiv ri si vəʃip/ noun the appoint- | adverse variance / dv s veəriəns/ adverse variancement of an administrative receiver by adebenture holder noun variance which shows that the actual result is worse than expected. Also calledadministrator /əd ministreitə/ noun 1. aadministrator unfavourable variance |person who directs the work of other advice /əd vais/ noun a notification telling adviceemployees in a business ć After several |years as a college teacher, she hopes to someone what has happened adviser /əd vaizə/, advisor noun a person adviserbecome an administrator. 2. a person |appointed by a court to manage the affairs of who suggests what should be done ć He issomeone who dies without leaving a will consulting the company’s legal adviser.
  • 15. Accounting.fm Page 9 Tuesday, February 13, 2007 1:40 PM 9 agreed advisory /əd vaiz(ə)ri/ adjective as an taxed as an employee of the agency, not of advisory | adviser ć She is acting in an advisory the company where he or she actually capacity. works. advisory funds /əd vaiz(ə)ri f ndz/ agenda /ə d endə/ noun a list of things to advisory funds agenda | | plural noun funds placed with a financial be discussed at a meeting ć The conference institution to invest on behalf of a client, the agenda or the agenda of ć After two hours institution investing them at its own discre- we were still discussing the first item on the tion agenda. ć We usually put finance at the top AFAANZ abbreviation Accounting and AFAANZ of the agenda. ć The chair wants two items Finance Association of Australia and New removed from or taken off the agenda. agent / eid ənt/ noun 1. a person who rep- agent Zealand AFBD abbreviation Association of Futures AFBD resents a company or another person in an Brokers and Dealers area ć to be the agent for BMW cars ć to be affiliated /ə filieitid/ adjective connected affiliated | the agent for IBM 2. a person in charge of an with or owned by another company ć Smiths agency ć The estate agent sent me a list of Ltd is one of our affiliated companies. properties for sale. agent bank / eid ənt b ŋk/ noun a bank agent bank affiliated enterprise /ə filieitid affiliated enterprise | entəpraiz/, affiliated company /ə | which uses the credit card system set up by filieitid k mp(ə)ni/ noun company another bank agent’s commission / eid ənts kə agent’s commission which is partly owned by another (though | less than 50%), and where the share-owning miʃ(ə)n/ noun money, often a percentage company exerts some management control of sales, paid to an agent or has a close trading relationship with the age-related / eid ri leitid/ adjective age-related | associate ć one of our affiliated companies connected with a person’s age aftermarket / ɑ ftə mɑ kit/ noun a mar- aftermarket age-related allowance / eid ri leitid age-related allowance | | ket in new shares, which starts immediately ə laυəns/ noun an extra tax allowance | after trading in the shares begins which a person over 65 may be entitled to after tax / ɑ ftər t ks/ adverb after tax after tax aggregate / ri ət/ adjective total, with aggregate has been paid everything added together ć aggregate out- after-tax profit / ɑ ftə t ks prɒfit/ after-tax profit put noun a profit after tax has been deducted aggregate demand / aggregate demand ri ət di | age analysis of debtors / eid ə age analysis of debtors | mɑ nd/ noun the total demand for goods n ləsis əv detəz/ noun the amount owed and services from all sectors of the economy by debtors, classified by age of debt including individuals, companies and the aged debtors analysis / eid d detəz ə aged debtors analysis | government ć Economists are studying the n ləsis/, ageing schedule / eid iŋ recent fall in aggregate demand. ć As ʃedju l/ noun a list which analyses a com- incomes have risen, so has aggregate pany’s debtors, showing the number of days demand. aggregate risk / ri ət risk/ noun the aggregate risk their payments are outstanding agency / eid ənsi/ noun 1. an office or job agency risk which a bank runs in lending to a cus- of representing another company in an area tomer ć They signed an agency agreement or an aggregate supply / ri ət sə plai/ aggregate supply | agency contract. 2. an office or business noun all goods and services on the market ć which arranges things for other companies Is aggregate supply meeting aggregate agency bank / eid ənsi b ŋk/ noun a agency bank demand? AGI abbreviation US adjusted gross income AGI bank which does not accept deposits, but acts as an agent for another, usually foreign, agio / d iəυ/ noun 1. a charge made for agio bank changing money of one currency into agency bill / eid ənsi bil/ noun a bill of another, or for changing banknotes into cash agency bill exchange drawn on the local branch of a for- 2. the difference between two values, such eign bank as between the interest charged on loans agency broker / eid ənsi brəυkə/ noun agency broker made by a bank and the interest paid by the a dealer who acts as the agent for an investor, bank on deposits, or the difference between buying and selling for a commission the values of two currencies AGM abbreviation Annual General Meeting AGM agency worker / eid ənsi w kə/ noun agency worker agreed /ə ri d/ adjective having been agreed a person who is employed by an agency to | work for another company. He or she is accepted by everyone ć We pay an agreed
  • 16. Accounting.fm Page 10 Tuesday, February 13, 2007 1:40 PMagreed price 10amount each month. ć The agreed terms of allow for /ə laυ fɔ / phrasal verb to give a |employment are laid down in the contract. discount for something, or to add an extraagreed price /ə ri d prais/ noun a priceagreed price | sum to cover something ć to allow for mon-which has been accepted by both the buyer ey paid in advance ć Add on an extra 10%and seller to allow for postage and packing.AICPA abbreviation American Institute of allowable /ə laυəb(ə)l/ adjective legallyAICPA allowable |Certified Public Accountants accepted. Opposite disallowableAIM abbreviation Alternative InvestmentAIM allowable deductions /ə laυəb(ə)l di allowable deductions | |Market d kʃ(ə)ns/ plural noun deductions fromairmail transfer / eəmeil tr nsf /airmail transfer income which are allowed by the Inlandnoun an act of sending money from one Revenue, and which reduce the tax payablebank to another by airmail allowable expenses /ə laυəb(ə)l ik allowable expenses | |alien corporation / eiliən kɔ pəalien corporation | spensiz/ plural noun business expenses reiʃ(ə)n/ noun US a company which is which can be claimed against taxincorporated in a foreign country allowable losses /ə laυəb(ə)l lɒsiz/ allowable losses |A list / ei list/ noun a list of members of aA list plural noun losses, e.g. on the sale of assets,company at the time it is wound up who may which are allowed to be set off against gainsbe liable for the company’s unpaid debts allowance /ə laυəns/ noun 1. money allowance |all-in price / ɔ l in prais/ noun a priceall-in price which is given for a special reason ć a travelwhich covers all items in a purchase such as allowance or a travelling allowance 2. a partgoods, delivery, tax or insurance of an income which is not taxed ć allow-all-in rate / ɔ l in reit/ noun 1. a priceall-in rate ances against tax or tax allowances ć per-which covers all the costs connected with a sonal allowances (NOTE: The US term ispurchase, such as delivery, tax and insur- exemption) 3. money removed in the formance, as well as the cost of the goods them- of a discount ć an allowance for deprecia-selves 2. a wage which includes all extra tion ć an allowance for exchange losspayments such as bonuses and merit pay ‘…the compensation plan includes base,allocate / ləkeit/ verb 1. to divide some-allocate incentive and car allowance totallingthing in various ways and share it out ć How $50,000+’ [Globe and Mail (Toronto)]are we going to allocate the available office allowance for bad debt /ə laυəns fə allowance for bad debt |space? 2. to assign a whole item of cost, or b d det/ noun a provision made in a com-of revenue, to a single cost unit, centre, pany’s accounts for debts which may neveraccount or time period be paidallocated costs / lə keitd kɒsts/ plu-allocated costs allowances against tax /ə laυənsiz ə | allowances against taxral noun overhead costs which have been | |allocated to a specific cost centre enst t ks/ plural noun part of someone’s income which is not taxedallocation / lə keiʃ(ə)n/ noun the proc-allocation | all-risks policy / ɔ l risks pɒlisi/ noun all-risks policyess of providing sums of money for particu-lar purposes, or a sum provided for a pur- an insurance policy which covers risks ofpose ć the allocation of funds to a project any kind, with no exclusions alternative cost /ɔ l t nətiv kɒst/ alternative costallot /ə lɒt/ verb to share outallot | |allotment /ə lɒtmənt/ noun 1. the processallotment | noun same as opportunity cost Alternative Investment Market /ɔ l Alternative Investment Marketof sharing out something, especially money |between various departments, projects or l nətiv in vestmənt mɑ kit/ noun a |people ć The allotment of funds to each London stock market, regulated by the Lon-project is the responsibility of the finance don Stock Exchange, dealing in shares indirector. 2. the act of giving shares in a new smaller companies which are not listed oncompany to people who have applied for the main London Stock Exchange. Abbrevi-them ć share allotment ć payment in full on ation AIM (NOTE: The AIM is a way in whichallotment smaller companies can sell shares to theallow /ə laυ/ verb 1. to say that someoneallow | investing public without going to thecan do something ć Junior members of staff expense of obtaining a full share listing.)are not allowed to use the chairman’s lift. ć alternative minimum tax /ɔ l l nətiv alternative minimum tax |The company allows all members of staff to miniməm t ks/ noun US a way of calcu-take six days’ holiday at Christmas. 2. to lating US income tax that is intended togive ć to allow 5% discount to members of ensure that wealthy individuals, corpora-staff 3. to agree to or accept legally ć to tions, trusts, and estates pay at least some taxallow a claim or an appeal regardless of deductions, but that is increas-
  • 17. Accounting.fm Page 11 Tuesday, February 13, 2007 1:40 PM 11 Annual General Meeting ingly targeting the middle class. Abbrevia- analyse a statement of account ć to analyse tion AMT the market potential amalgamate /ə m l əmeit/ verb to join analysis /ə n ləsis/ noun a detailed amalgamate analysis | | together with another group ć The amalga- examination and report ć a job analysis ć mated group includes six companies. market analysis ć Her job is to produce a American Accounting Association American Accounting Association regular sales analysis. (NOTE: The plural is /ə merikən ə kaυntiŋ ə səυsieiʃ(ə)n/ | | | analyses.) noun a US voluntary organisation for those analyst / nəlist/ noun a person who analyst with an interest in accounting research and analyses ć a market analyst ć a systems best practice, which aims to promote excel- analyst lence in the creation, dissemination and analytical review / nəlitik(ə)l ri vju / analytical review | application of accounting knowledge and noun an examination of accounts from dif- skills. Abbreviation AAA ferent periods for the purpose of identifying American Depositary Receipt /ə American Depositary Receipt | ratios, trends and changes in balances merikən di pɒzitri ri si t/ noun a docu- | | angel / eind əl/ noun an investor in a com- angel ment issued by an American bank to US cit- pany in its early stages, often looking for izens, making them unregistered sharehold- returns over a longer period of time than a ers of companies in foreign countries. The venture capitalist document allows them to receive dividends annual / njuəl/ adjective for one year ć annual from their investments, and ADRs can them- selves be bought or sold. Abbreviation ADR an annual statement of income ć They have six weeks’ annual leave. ć The company has American Institute of Certified Pub- American Institute of Certified Public Accountants an annual growth of 5%. ć We get an annual lic Accountants /ə merikən institju t | bonus. əv s tifaid p blik ə kaυntənts/ noun | the national association for certified public ‘…real wages have risen at an annual rate accountants in the United States. Abbrevia- of only 1% in the last two years’ [Sunday Times] tion AICPA ‘…the remuneration package will include amortisable / mɔ taizəb(ə)l/ adjective amortisable | an attractive salary, profit sharing and a being possible to amortise ć The capital company car together with four weeks’ cost is amortisable over a period of ten annual holiday’ [Times] years. annual accounts / njuəl ə kaυnts/ annual accounts | amortisation /ə mɔ tai zeiʃ(ə)n/ noun amortisation | | plural noun the accounts prepared at the end an act of amortising ć amortisation of a debt of a financial year ć The annual accounts amortisation period /ə mɔ tai amortisation period | | have been sent to the shareholders. zeiʃ(ə)n piəriəd/ noun the length of a annual depreciation / njuəl di pri ʃi annual depreciation | | lease, used when depreciating the value of eiʃ(ə)n/ noun a reduction in the book value the asset leased of an asset at a particular rate per year. ı amortise /ə mɔ taiz/, amortize verb 1. to amortise | straight line depreciation repay a loan by regular payments, most of annual depreciation annual depreciation provision provision which pay off the interest on the loan at first, / njuəl di pri ʃi eiʃ(ə)n prə vi (ə)n/ | | | and then reduce the principal as the repay- noun an assessment of the cost of an asset’s ment period progresses ć The capital cost is depreciation in a given accounting period amortised over five years. 2. to depreciate or annual exemptions / njuəl i annual exemptions to write down the capital value of an asset | over a period of time in a company’s zempʃ(ə)nz/ plural noun the amount of accounts income which is exempt from tax. For exam- ple, the first £8,500 in capital gains in any amount paid up /ə maυnt peid p/ amount paid up | one year is exempt from tax. noun an amount paid for a new issue of Annual General Meeting / njuəl Annual General Meeting shares, either the total payment or the first instalment, if the shares are offered with d en(ə)rəl mi tiŋ/ noun an annual meet- instalment payments ing of all shareholders of a company, when the company’s financial situation is pre- amount realised /ə maυnt ri əlaizd/ amount realised | sented by and discussed with the directors, noun money received from the sale or when the accounts for the past year are exchange of property approved and when dividends are declared AMT abbreviation alternative minimum tax AMT and audited. Abbreviation AGM (NOTE: The analyse / nəlaiz/, analyze verb to exam- analyse US term is annual meeting or annual ine someone or something in detail ć to stockholders’ meeting.)
  • 18. Accounting.fm Page 12 Tuesday, February 13, 2007 1:40 PMannual income 12annual income / njuəl ink m/ noun anti-dumping duty / nti d mpiŋannual income anti-dumping dutymoney received during a calendar year dju ti/ noun same as countervailing dutyannualised / njuəlaizd/, annualized anti-inflationaryannualised / nti in anti-inflationary |adjective shown on an annual basis fleiʃ(ə)n(ə)ri/ adjective restricting or try- ‘…he believes this may have caused the ing to restrict inflation ć anti-inflationary economy to grow at an annualized rate of measures almost 5 per cent in the final quarter of last anti-trust / nti tr st/ adjective attack- anti-trust year’ [Investors Chronicle] ing monopolies and encouraging competi-annualised percentage rate tion ć anti-trust measuresannualised percentage rate/ njuəlaizd pə sentid reit/ noun a | anti-trust laws / nti tr st lɔ z/, anti- anti-trust lawsyearly percentage rate, calculated by multi- trust legislation / nti tr st led i |plying the monthly rate by twelve. Abbrevi- sleiʃ(ə)n/ plural noun laws in the Unitedation APR (NOTE: The annualised percent- States which prevent the formation ofage rate is not as accurate as the Annual monopoliesPercentage Rate (APR), which includes APB abbreviation 1. Accounting Principles APBfees and other charges.) Board 2. Auditing Practices Boardannually / njuəli/ adverb each year ćannually Appeals Commissioner noun a person Appeals CommissionerThe figures are updated annually. appointed officially to supervise the collec-annual management charge / njuəlannual management charge tion of taxes, including income tax, capital m nid mənt tʃɑ d / noun a charge made gains tax and corporation tax, but not VATby the financial institution which is manag- application / pli keiʃ(ə)n/ noun 1. the applicationing an account | act of asking for something, usually in writ-annual meeting / njuəl mi tiŋ/ nounannual meeting ing, or a document in which someone asksUS same as Annual General Meeting for something, e.g. a job ć shares payableAnnual Percentage Rate / njuəl pəAnnual Percentage Rate | on application ć She sent off six applica- sentid reit/ noun a rate of interest (such tions for job or six job applications. 2. effortas on a hire-purchase agreement) shown on or diligence ć She has shown great applica-an annual compound basis, and including tion in her work on the project.fees and charges. Abbreviation APR application of funds / plikeiʃ(ə)n əv application of funds |annual report / njuəl ri pɔ t/ noun aannual report | f ndz/ noun details of the way in whichreport of a company’s financial situation at funds have been spent during an accountingthe end of a year, sent to all the shareholders periodannual return / njuəl ri t n/ noun anannual return apportion /ə pɔ ʃ(ə)n/ verb to share out apportion | |official report which a registered company something, e.g. costs, funds or blame ćhas to make each year to the Registrar of Costs are apportioned according to pro-Companies jected revenue.annuitant /ə nju itənt/ noun a personannuitant apportionment /ə pɔ ʃ(ə)nmənt/ noun | apportionment |who receives an annuity the sharing out of costsannuity /ə nju iti/ noun money paid eachannuity appraisal /ə preiz(ə)l/ noun a calculation | appraisalyear to a retired person, usually in return for | of the value of someone or somethinga lump-sum payment. The value of the annu- appraise /ə preiz/ verb to assess or to cal- appraiseity depends on how long the person lives, as |it usually cannot be passed on to another culate the value of something or someone appreciate /ə pri ʃieit/ verb (of currency, appreciateperson. Annuities are fixed payments, and |lose their value with inflation, whereas a shares, etc.) to increase in valuepension can be index-linked. ć to buy or to appreciation /ə pri ʃi eiʃ(ə)n/ noun 1. appreciation | |take out an annuity ć She has a government an increase in value. Also called capitalannuity or an annuity from the government. appreciation 2. the act of valuing some-annuity certain /ə nju iti s tən/ nounannuity certain | thing highly ć She was given a pay rise inan annuity that provides payments for a spe- appreciation of her excellent work.cific number of years, regardless of life or appropriate verb /ə prəυprieit/ to put a appropriate |death of the annuitant sum of money aside for a special purpose ćannuity contract /ə nju iti kɒntr kt/ to appropriate a sum of money for a capitalannuity contract |noun a contract under which a person is paid projecta fixed sum regularly for life appropriation /ə prəυpri eiʃ(ə)n/ noun appropriation | |antedate / nti deit/ verb to put an ear-antedate | the act of putting money aside for a speciallier date on a document ć The invoice was purpose ć appropriation of funds to theantedated to January 1st. reserve
  • 19. Accounting.fm Page 13 Tuesday, February 13, 2007 1:40 PM 13 articles of incorporation appropriation account /ə prəυpri arbitrage syndicate / ɑ bitrɑ appropriation account arbitrage syndicate | | eiʃ(ə)n ə kaυnt/ noun the part of a profit | sindikət/ noun a group of people who and loss account which shows how the profit together raise the capital to invest in arbi- has been dealt with, e.g., how much has been trage deals given to the shareholders as dividends and arbitration / ɑ bi treiʃ(ə)n/ noun the set- arbitration | how much is being put into the reserves tling of a dispute by an outside party agreed approval /ə pru v(ə)l/ noun the act of say- on by both sides ć to take a dispute to arbi- approval | ing or thinking that something is good ć to tration or to go to arbitration ć arbitration submit a budget for approval in an industrial dispute ć The two sides approve /ə pru v/ verb 1. ˽ to approve of decided to submit the dispute to arbitration approve | something to think something is good ć or to refer the question to arbitration. The chairman approves of the new company arbitrator / ɑ bitreitə/ noun a person not arbitrator letter heading. ć The sales staff do not concerned with a dispute who is chosen by approve of interference from the accounts both sides to try to settle it ć an industrial division. 2. to agree to something officially arbitrator ć They refused to accept or they ć to approve the terms of a contract ć The rejected the arbitrator’s ruling. proposal was approved by the board. ARD abbreviation accounting reference ARD approved accounts /ə pru vd ə approved accounts | | date kaυnts/ plural noun accounts that have area manager / eəriə m nid ə/ noun a area manager been formally accepted by a company’s manager who is responsible for a company’s board of directors work in a specific part of the country approved scheme /ə pru vd ski m/ approved scheme arithmetic mean / riθmetik mi n/ arithmetic mean | noun a pension scheme or share purchase noun a simple average calculated by divid- scheme which has been approved by the ing the sum of two or more items by the Inland Revenue number of items approved securities /ə pru vd si approved securities ARM abbreviation adjustable rate mortgage | | ARM kjυəritiz/ plural noun state bonds which around /ə raυnd/ preposition 1. approxi- around can be held by banks to form part of their | reserves (NOTE: The list of these bonds is mately ć The office costs around £2,000 a the ‘approved list’.) year to heat. ć Her salary is around approximate /ə prɒksimət/ adjective not approximate | $85,000. 2. with a premium or discount ARPS abbreviation adjustable rate pre- ARPS exact, but almost correct ć The sales divi- sion has made an approximate forecast of ferred stock ARR abbreviation accounting rate of return ARR expenditure. arrangement fee /ə reind mənt fi / arrangement fee approximately /ə prɒksimətli/ adverb approximately | | not quite exactly, but close to the figure noun a charge made by a bank to a client for shown ć Expenditure on marketing is arranging credit facilities approximately 10% down on the previous arrears /ə riəz/ plural noun money which arrears | quarter. is owed, but which has not been paid at the approximation /ə prɒksi meiʃ(ə)n/ right time ć a salary with arrears effective approximation | | noun a rough calculation ć Each depart- from January 1st ć We are pressing the com- ment has been asked to provide an approxi- pany to pay arrears of interest. ć You must mation of expenditure for next year. ć The not allow the mortgage payments to fall into final figure is only an approximation. arrears. APR abbreviation annualised percentage article / ɑ tik(ə)l/ noun a section of a legal APR article rate agreement such as a contract or treaty ć See APRA abbreviation Australian Prudential APRA article 8 of the contract. Regulation Authority articles of association / ɑ tik(ə)lz əv articles of association AR abbreviation accounts receivable AR ə səυsi eiʃ(ə)n/ plural noun a document | | arbitrage / ɑ bi trɑ / noun the business arbitrage | which lays down the rules for a company of making a profit from the difference in regarding such matters as the issue of shares, value of various assets, e.g. by selling for- the conduct of meetings and the appoint- eign currencies or commodities on one mar- ment of directors ć This procedure is not ket and buying on another at almost the allowed under the articles of association of same time to profit from different exchange the company. (NOTE: The US term is rates, or by buying currencies forward and bylaws) articles of incorporation / ɑ tik(ə)lz articles of incorporation selling them forward at a later date, to bene- fit from a difference in prices əv in kɔ pə reiʃ(ə)n/ plural noun US same | |
  • 20. Accounting.fm Page 14 Tuesday, February 13, 2007 1:40 PMarticles of partnership 14as memorandum and articles of associa- asset stripper / set stripə/ noun a per- asset strippertion son who buys a company to sell its assetsarticles of partnership / ɑ tik(ə)lz əvarticles of partnership asset stripping / set stripiŋ/ noun the asset strippingpɑ tnəʃip/ plural noun same as partner- practice of buying a company at a lowership agreement price than its asset value, and then selling itsASB abbreviation Accounting StandardsASB assets asset turnover / set t nəυvə/ noun a asset turnoverBoardASC abbreviation Accounting StandardsASC measure of a company’s efficiency that isCommittee the ratio of sales revenue to total assets asset turnover ratio / set t nəυvə asset turnover ratioA shares / ei ʃeəz/ plural noun ordinaryA shares reiʃiəυ/ noun the number of times assetsshares with limited voting rights or no vot- are turned over by sales during the year, cal-ing rights at all culated as turnover divided by total assetsasked price / ɑ skt prais/ noun a price atasked price less current liabilitieswhich a commodity or stock is offered for asset value / set v lju / noun the asset valuesale by a seller, also called ‘offer price’ in value of a company calculated by addingthe UK together all its assetsasking price / ɑ skiŋ prais/ noun a priceasking price assign /ə sain/ verb 1. to give something assign |which the seller is hoping will be paid for to someone by means of an official legalthe item being sold ć the asking price is transfer ć to assign a right to someone ć to$24,000 assign shares to someone 2. to give someoneas per / z p / ‘ peras per a job of work to do and make him or herassess /ə ses/ verb to calculate the valueassess | responsible for doing it ć She was assignedof something or someone ć to assess dam- the task of checking the sales figures.ages at £1,000 ć to assess a property for the assignation / si neiʃ(ə)n/ noun a assignation |purposes of insurance legal transfer ć the assignation of shares toassessed value /ə sest v lju / noun aassessed value | someone ć the assignation of a patentvalue that is the result of calculation by assignee / sai ni / noun a person who assignee |someone such as an auditor or investment receives something which has been assignedadvisor to him or her assignment /ə sainmənt/ noun the legal assignmentassessment /ə sesmənt/ noun a calcula-assessment | transfer of a property or right ć the assign- |tion of value ć a property assessment ć atax assessment ment of a patent or of a copyright ć to sign a deed of assignmentasset / set/ noun 1. something whichasset assignor / sai nɔ / noun a person who assignor |belongs to a company or person, and which assigns something to someonehas a value ć He has an excess of assets over associate /ə səυsiət/ noun 1. a person or associateliabilities. ć Her assets are only $640 as | company linked to another in a takeover bidagainst liabilities of $24,000. 2. ˽ valuation 2. a title given to a junior member of a pro-of a company on an assets basis calculat- fessional organisation. Senior members areing the value of a company on the basis of usually called ‘fellows’.the value of its assets (as opposed to a valu-ation on an earnings or dividend yield basis) associate associate company company /ə səυsiət | k mp(ə)ni/ noun a company which isasset-backed securities / set b ktasset-backed securities partly owned by another companysi kjυəritiz/ plural noun bonds secured associated company /ə səυsieitid | associated companyagainst specific assets | k mp(ə)ni/ noun a company which isasset backing / set b kiŋ/ noun aasset backing partly owned by another company (thoughsupport for a share price provided by the less than 50%), which exerts some manage-value of the company’s assets ment control over it or has a close tradingasset-rich company / set ritʃ relationship with it ć Smith Ltd and its asso-asset-rich company k mp(ə)ni/ noun company with valuable ciated company, Jones Brotherstangible assets, such as property, which pro- associate director /ə səυsiət dai associate director | |vide firm backing for its shares rektə/ noun a director who attends boardassets / sets/ plural noun all items ofassets meetings, but has not been elected by theproperty that contribute to the value of an shareholdersorganisation, including tangible items such Association of Accounting Techni- Association of Accounting Techniciansas cash, stock and real estate, as well as cians /ə səυsieiʃ(ə)n əv ə kaυntiŋ | |intangible items such as goodwill tekniʃ(ə)nz/ noun an organisation which
  • 21. Accounting.fm Page 15 Tuesday, February 13, 2007 1:40 PM 15 auction represents accounting technicians and for other types of policy (i.e. those against grants membership to people who have something which may or may not happen, passed its examinations. Abbreviation AAT such as an accident) use the terms insure, Association of Authorised Public Association of Authorised Public Accountants insurer and insurance. In the US insure, Accountants /ə səυsieiʃ(ə)n əv | insurer and insurance are used for both.) ɔ θəraizd p blik ə kaυntənts/ noun an assurer /ə ʃυərə/, assuror noun an assurer | | organisation which represents accountants insurer or a company which insures who have been authorised by the govern- AST abbreviation Automated Screen Trad- AST ment to work as auditors. It is a subsidiary of ing the Association of Chartered Certified at call / t kɔ l/ adverb immediately at call Accountants. Abbreviation AAPA available Association of Chartered Account- Association of Chartered Accountants in the United States ATM abbreviation automated teller machine ATM ants in the United States /ə | ‘Swiss banks are issuing new cards which səυsieiʃ(ə)n əv tʃɑ təd ə kaυntənts in | will allow cash withdrawals from ATMs ði ju naitid steits/ noun an organisation | in Belgium, Denmark, Spain, France, the representing Chartered Accountants from Netherlands, Portugal and Germany’ Australia, Canada, England and Wales, Ire- [Banking Technology] land, New Zealand, Scotland and South ‘…the major supermarket operator is plan- Africa who are based in the United States. ning a new type of bank that would earn Abbreviation ACAUS 90% of its revenue from fees on automated Association of Chartered Certified teller machine transactions. With the bank Association of Chartered Certified Accountants Accountants /ə səυsieiʃ(ə)n əv | setting up ATMs at 7,000 group outlets tʃɑ təd s tifaid ə kaυntənts/ noun an | nationwide, it would have a branch net- organisation whose members are certified work at least 20 times larger than any of accountants. Abbreviation ACCA the major banks’ [Nikkei Weekly] at par / t pɑ / phrase equal to the face at par Association of Corporate Treasur- Association of Corporate Treasurers ers /ə səυsieiʃ(ə)n əv | kɔ p(ə)rət value at sight / t sait/ adverb immediately, at sight tre ərəz/ noun an organisation which groups company treasurers and awards when it is presented ć a bill of exchange membership to those who have passed its payable at sight examinations attachment /ə t tʃmənt/ noun the act of attachment | Association of Financial Advisers /ə Association of Financial Advisers | holding a debtor’s property to prevent it səυsieiʃ(ə)n əv fai n nʃ(ə)l əd vaizəz/ | | being sold until debts are paid noun a trade association that represents the attachment of earnings /ə t tʃmənt attachment of earnings | interests of independent financial advisers əv niŋz/ noun a process in which a court Association of Futures Brokers and Association of Futures Brokers and Dealers uses its legal authority to obtain directly Dealers /ə səυsieiʃ(ə)n əv fju tʃəz | from a person’s salary money that the person brəυkəz ən di ləz/ noun a self-regulating owes to the court attachment of earnings order /ə attachment of earnings order organisation which oversees the activities of | dealers in futures and options. Abbreviation t tʃmənt əv niŋz ɔ də/ noun a court AFBD order to make an employer pay part of an assumable mortgage /ə sju məb(ə)l assumable mortgage | employee’s salary to the court to pay off mɔ id / noun US a mortgage which can debts attachment order /ə t tʃmənt ɔ də/ attachment order be passed to another person | assurance /ə ʃυərəns/ noun a type of assurance | noun an order from a court to hold a debtor’s insurance which pays compensation for an property to prevent it being sold until debts event that is certain to happen at some time, are paid attest /ə test/ noun a formal statement, attest especially for the death of the insured per- | son. Also called life assurance, life insur- e.g. a statement by an auditor that a com- ance pany’s financial position is correctly stated assure /ə ʃυə/ verb to insure someone, or assure | in the company’s accounts attributable profit /ə tribjυtəb(ə)l attributable profit someone’s life, so that the insurance com- | pany will pay compensation when that per- prɒfit/ noun a profit which can be shown to son dies ć He has paid the premiums to have come from a particular area of the com- his wife’s life assured. (NOTE: Assure, pany’s operations auction / ɔ kʃən/ noun 1. a method of sell- auction assurer and assurance are used in Britain for insurance policies relating to something ing goods where people who want to buy which will certainly happen (such as death); compete with each other by saying how
  • 22. Accounting.fm Page 16 Tuesday, February 13, 2007 1:40 PMauctioneer 16much they will offer for something, and the auditing standards / ɔ ditiŋ auditing standardsitem is sold to the person who makes the st ndədz/ plural noun guidelines, estab-highest offer ć Their furniture will be sold lished by an authoritative body, that auditorsin the auction rooms next week. ć They should follow when examining financialannounced a sale by auction of the fire-dam- statements and other informationaged stock. ć The equipment was sold by audit opinion / ɔ dit ə pinjən/ noun US audit opinionauction or at auction. ˽ to put an item up | a report of the audit of a company’s books,for auction to offer an item for sale at an carried out by a certified public accountantauction 2. a method of selling government (NOTE: The UK term is accountant’s opin-stock, where all stock on issue will be sold, ion.)and the highest price offered will be auditor / ɔ ditə/ noun a person who audits auditoraccepted, as opposed to tendering í verb to auditors’ fees / ɔ ditəz fi z/ plural noun auditors’ feessell something at an auction ć The factory fees paid to a company’s auditors, which arewas closed and the machinery was auc- approved by the shareholders at an AGMtioned off. auditors’ qualification / ɔ ditəz auditors’ qualificationauctioneerauctioneer / ɔ kʃə niə/ noun the person | kwɒlifi keiʃ(ə)n/ noun a form of words in |who conducts an auction a report from the auditors of a company’sauditaudit / ɔ dit/ noun the examination of the accounts, stating that in their opinion thebooks and accounts of a company ć to carry accounts are not a true reflection of the com-out the annual audit í verb to examine the pany’s financial position. Also called quali-books and accounts of a company ć Messrs fication of accountsSmith have been asked to audit the accounts. auditors’ report / ɔ ditəz ri pɔ t/ noun auditors’ report |ć The books have not yet been audited. ˽ to a report written by a company’s auditorsaudit the stock to carry out a stock control, after they have examined the accounts of thein front of witnesses, so as to establish the company. Also called audit report (NOTE: Ifexact quantities and value of stock the auditors are satisfied, the report certi-Audit CommissionAudit Commission / ɔ dit kə miʃ(ə)n/| fies that, in their opinion, the accounts givenoun British government agency whose a ‘true and fair’ view of the company’s finan-duty is to audit the accounts of ministries cial position.) audit programme / ɔ dit prəυ r m/ audit programmeand other government departments (NOTE:The US term is General Accounting noun a listing of all the steps to be takenOffice.) when auditing a company’s accounts audit regulation / ɔ dit re jυleiʃ(ə)n/ audit regulationaudit committeeaudit committee / ɔ dit kə miti/ noun a |committee of a company’s board of directors noun the regulating of auditors by govern-that monitors finances, on which company ment audit report / ɔ dit ri pɔ t/ noun same as audit reportexecutives cannot sit |audit cycleaudit cycle / ɔ dit saik(ə)l/ noun the auditors’ report audit risk / ɔ dit risk/ noun the risk that audit riskinterval between auditsaudited accounts auditors may give an inappropriate auditaudited accounts / ɔ ditid ə kaυnts/ | opinion on financial statementsplural noun a set of accounts that have been audit trail / ɔ dit treil/ noun the records audit trailthoroughly scrutinised, checked andapproved by a team of auditors that show all the stages of a transaction, e.g.audit fee a purchase, a sale or a customer complaint,audit fee / ɔ dit fi / noun a fee charged by in the order in which they happened (NOTE:an auditor for auditing a company’s An audit trail can be a useful tool for prob-accounts lem-solving and, in financial markets, mayauditingauditing / ɔ ditiŋ/ noun the work of be used to ensure that the dealers haveexamining the books and accounts of a com- been fair and accurate in their proceed-pany ings.)Auditing Practices BoardAuditing Practices Board / ɔ ditiŋ ‘…provides real-time fax monitoring and pr ktisiz bɔ d/ noun a body responsible audit trail to safeguard information pri-for developing and issuing professional vacy and accuracy’ [Forbes] augend / ɔ end/ noun the number to augendauditing standards in the United Kingdomand the Republic of Ireland. The APB was which another number (the addend) is addedcreated in 1991 following an agreement to produce the sumbetween the six members of the Consulta- Australian Accounting Research Australian Accounting Research Foundationtive Committee of Accountancy Bodies. Foundation /ɒ streiliən ə kaυntiŋ ri | | |Abbreviation APB s tʃ faυn deiʃ(ə)n/ noun the authority |
  • 23. Accounting.fm Page 17 Tuesday, February 13, 2007 1:40 PM 17 award that has regulated auditing and assurance availability /ə veilə biliti/ noun the fact availability | | matters in Australia since 2004 of being easy to obtain Australian Prudential Regulation Authority Australian Prudential Regulation AVCs abbreviation additional voluntary AVCs Authority /ɒ streiliən prυ denʃ(ə)l | | contributions re jυ leiʃ(ə)n ɔ θɒrəti/ noun a federal | | average / v(ə)rid / noun 1. a number average government body responsible for ensuring calculated by adding several figures together that financial institutions are able to meet and dividing by the number of figures added their commitments. Abbreviation APRA ć the average for the last three months or AUT AUT abbreviation authorised unit trust the last three months’ average ć sales aver- authorise age or average of sales 2. the sharing of the authorise / ɔ θəraiz/, authorize verb 1. cost of damage or loss of a ship between the to give permission for something to be done insurers and the owners í adjective equal to ć to authorise payment of £10,000 2. to give the average of a set of figures ć the average someone the authority to do something ć to increase in salaries ć The average cost per authorise someone to act on the company’s unit is too high. ć The average sales per rep- behalf resentative are rising. í verb to work out an authorised capital authorised capital / ɔ θəraizd average figure for something k pit(ə)l/ noun the amount of capital ‘…a share with an average rating might which a company is allowed to have, as yield 5 per cent and have a PER of about stated in the memorandum of association 10’ [Investors Chronicle] (NOTE: The US equivalent is authorized ‘…the average price per kilogram for this stock.) season to the end of April has been 300 authorised share capital authorised share capital / ɔ θəraizd cents’ [Australian Financial Review] ʃeə k pit(ə)l/ noun the amount of capital average out / v(ə)rid aυt/ phrasal verb that a company is authorised to issue in the to come to a figure as an average ć It aver- form of shares ages out at 10% per annum. ć Sales in- authorised unit trust creases have averaged out at 15%. authorised unit trust / ɔ θəraizd ju nit tr st/ noun the official name for a average cost of capital / vərid kɒst average cost of capital unit trust which has to be managed accord- əv k pit(ə)l/ noun an average figure for ing to EU directives. Abbreviation AUT the cost of borrowing or the capital raised by Automated Clearing House selling shares Automated Clearing House average due date / v(ə)rid dju average due date / ɔ təmeitid kliəriŋ haυs/ noun US an deit/ noun the average date when several organisation set up by the federal authorities different payments fall due to settle transactions carried out by compu- average income average income per capita per capita ter, such as automatic mortgage payments / v(ə)rid ink m pə k pitə/ noun same and trade payments between businesses. as per capita income Abbreviation ACH Automated Screen Trading avoidance /ə vɔid(ə)ns/ noun the act of avoidance | Automated Screen Trading trying not to do something or not to pay / ɔ təmeitid skri n treidiŋ/ noun a sys- something ć tax avoidance tem where securities are bought, sold and award /ə wɔ d/ noun something given by a award | matched automatically by computer. Abbre- court, tribunal or other official body, espe- viation AST cially when settling a dispute or claim ć an award by an industrial tribunal ć The arbi- automated teller machine automated teller machine / ɔ təmeitid telə mə ʃi n/ noun US same | trator’s award was set aside on appeal. ć as cash dispenser The latest pay award has been announced.
  • 24. Accounting.fm Page 18 Tuesday, February 13, 2007 1:40 PM BBAA abbreviation British AccountingBAA back interest / b k intrəst/ noun inter- back interestAssociation est which has not yet been paid backlog / b klɒ / noun an amount of backlogbaby bonds / beibi bɒndz/ plural nounbaby bondsUS bonds in small denominations which the work, or of items such as orders or letters,small investor can afford to buy which should have been dealt with earlierback /b k/ adjective referring to the past ćback but is still waiting to be done ć The ware-a back payment í verb to help someone, house is trying to cope with a backlog ofespecially financially ć The bank is backing orders. ć We’re finding it hard to cope withus to the tune of $10,000. ć She is looking the backlog of paperwork. backlog depreciation / b klɒ di backlog depreciationfor someone to back her project. | ‘…the businesses we back range from pri ʃieiʃ(ə)n/ noun depreciation which has start-up ventures to established companies not been provided in previous accounts in need of further capital for expansion’ because of an increase in the value of the [Times] asset during the current year due to inflation back payment / b k peimənt/ noun 1. back paymentback out / b k aυt/ phrasal verb to stopbeing part of a deal or an agreement ć The a payment which is due but has not yet beenbank backed out of the contract. ć We had paid 2. the act of paying money which isto cancel the project when our German part- owed back rent / b k rent/ noun a rent due but back rentners backed out. not paid ć The company owes £100,000 inbackdate /b k deit/ verb to put an earlierbackdate back rent. |date on a document such as a cheque or an back tax / b k t ks/ noun tax which is back taxinvoice ć Backdate your invoice to April 1st. owedback duty / b k dju ti/ noun a duty orback duty back-to-back loan / b k tə b k ləυn/ back-to-back loantax which is due but has not yet been paid noun a loan from one company to another inback-end loaded / b k end ləυdid/back-end loaded one currency arranged against a loan fromadjective referring to an insurance or invest- the second company to the first in anotherment scheme where commission is charged currency. Also called parallel loan (NOTE:when the investor withdraws his or her Back-to-back loans are used by interna-money from the scheme. Compare front- tional companies to get round exchangeend loaded controls.)backer / b kə/ noun a person or companybacker backup withholding / b k p wiθ backup withholding |that backs someone ć One of the company’s həυldiŋ/ noun US a tax retained frombackers has withdrawn. investment income so that the IRS is sure ofbackflush costing / b kfl ʃ kɒstiŋ/backflush costing getting the tax duenoun a method of costing that links cost to backwardation / b kwə deiʃ(ə)n/ noun backwardation |output produced 1. a penalty paid by the seller when postpon-backing / b kiŋ/ noun support, especiallybacking ing delivery of shares to the buyer 2. a situ-financial support ć She has the backing of ation in which the cash price is higher thanan Australian bank. ć The company will the forward price. Opposite forwardationsucceed only if it has sufficient backing. ć backward integration / b kwəd inti backward integration |She gave her backing to the proposal. reiʃ(ə)n/ noun a process of expansion in ‘…the company has received the backing which a business which deals with the later of a number of oil companies who are will- stages in the production and sale of a prod- ing to pay for the results of the survey’ uct acquires a business that deals with an [Lloyd’s List] earlier stage in the same process, usually a
  • 25. Accounting.fm Page 19 Tuesday, February 13, 2007 1:40 PM 19 balance supplier ć Buying up rubber plantations is period used as the opening balance of the part of the tyre company’s backward inte- current period ˽ balance carried down or gration policy. Also called vertical integra- forward the closing balance of the current tion period 2. the rest of an amount owed ć You backwards spreading / b kwədz backwards spreading can pay £100 deposit and the balance within sprediŋ/ noun the practice of dividing 60 days. í verb 1. to be equal, i.e. the assets income earned in a particular accounting owned must always equal the total liabilities year into portions which are allocated to sev- plus capital 2. to calculate the amount eral previous accounting periods needed to make the two sides of an account BACS /b ks/ noun a company set up to BACS equal ć I have finished balancing the organise the payment of direct debits, stand- accounts for March. 3. to plan a budget so ing orders, salary cheques and other pay- that expenditure and income are equal ć The ments generated by computers. It operates president is planning for a balanced budget. for all the British clearing banks and several balance off / b ləns ɒf/ verb to add up building societies; it forms part of APACS. and enter the totals for both sides of an ac- Compare CHAPS count at the end of an accounting period in bad cheque / b d tʃek/ noun a cheque bad cheque order to determine the balance which is returned to the drawer for any rea- balanced budget balanced budget / b lənst b d it/ son noun a budget where expenditure and bad debt / b d det/ noun a debt which bad debt income are equal will not be paid, usually because the debtor balanced scorecard balanced scorecard / b lənst has gone out of business, and which has to skɔ kɑ d/ noun a system of measurement be written off in the accounts ć The com- and assessment that uses a variety of indica- pany has written off $30,000 in bad debts. tors, particularly customer relations, internal bad debt expense / b d det ik spens/ bad debt expense | efficiency, financial performance and inno- noun an estimate of uncollectible debts vation, to find out how well an organisation which is charged to the profit and loss is doing in its attempts to achieve its main account objectives bad debt provision / b d det prə bad debt provision balance of payments | balance of payments / b ləns əv vi (ə)n/ noun money put aside in accounts peimənts/ noun a comparison between to cover potential bad debts total receipts and payments arising from a bad debts recovered / b d dets ri bad debts recovered | country’s international trade in goods, serv- k vəd/ plural noun money which was for- ices and financial transactions. Abbreviation merly classified as bad debts and therefore BOP ˽ balance of payments capital written off, but that has since been recovered account items in a country’s balance of pay- either wholly or in part ments which refer to capital investments badges of trade / b d iz əv treid/ plu- made in or by other countries ˽ balance of badges of trade ral noun a collection of principles estab- payments current account record of lished by case law to determine whether or imports and exports of goods and services not a person is trading. If so, he or she is and the flows of money between countries taxed under different rules from non-traders. arising from investments ˽ long-term bal- bail out / beil aυt/ phrasal verb to rescue a ance of payments record of movements of company which is in financial difficulties capital relating to overseas investments and ‘…the government has decided to bail out the purchase of companies overseas the bank which has suffered losses to the balance of payments deficit balance of payments deficit / b ləns extent that its capital has been wiped out’ [South China Morning Post] əv peimənts defisit/ noun a situation in which a country imports more than it bailment / beilmənt/ noun a transfer of bailment exports goods by someone (the ‘bailor’) to someone balance of payments surplus (the ‘bailee’) who then holds them until they balance of payments surplus have to be returned to the bailor (NOTE: / b ləns əv peimənts s pləs/ noun a sit- Putting jewels in a bank’s safe deposit box uation in which a country exports more than is an example of bailment.) it imports balance balance / b ləns/ noun 1. the amount balance balance of retained earnings which has to be put in one of the columns of / b ləns əv ri teind niŋz/ noun statis- | an account to make the total debits and cred- tics that show fluctuations in the level of its equal ˽ balance brought down or for- income retained for reinvestment during an ward the closing balance of the previous accounting period
  • 26. Accounting.fm Page 20 Tuesday, February 13, 2007 1:40 PMbalance sheet 20balance sheet / b ləns ʃi t/ noun a (called a ‘balloon payment’) is larger thanbalance sheetstatement of the financial position of a com- the otherspany at a particular time, such as the end of BALO noun a French government publica- BALOthe financial year or the end of a quarter, tion that includes financial statements ofshowing the company’s assets and liabilities public companies. Full form Bulletin desć Our accountant has prepared the balance Annonces Légales Obligatoiressheet for the first half-year. ć The company bank /b ŋk/ noun a business which holds bankbalance sheet for the last financial year money for its clients, lends money at inter-shows a worse position than for the previous est, and trades generally in money ć theyear. ć The company balance sheet for 1984 First National Bank ć the Royal Bank ofshows a substantial loss. Scotland ć She put all her earnings into the COMMENT: The balance sheet shows the bank. ć I have had a letter from my bank state of a company’s finances at a certain telling me my account is overdrawn. í verb date. The profit and loss account shows the movements which have taken place since to deposit money into a bank or to have an the end of the previous accounting period. A account with a bank ć He banked the cheque balance sheet must balance, with the basic as soon as he received it. ć I bank at or with equation that assets (i.e. what the company Barclays. owns, including money owed to the compa- bankable / b ŋkəb(ə)l/ adjective accept- bankable ny) must equal liabilities (i.e. what the com- pany owes to its creditors) plus capital (i.e. able by a bank as security for a loan what it owes to its shareholders). A balance bankable paper / b ŋkəb(ə)l peipə/ bankable paper sheet can be drawn up either in the horizon- noun a document which a bank will accept tal form, with (in the UK) liabilities and capital on the left-hand side of the page (in the USA, as security for a loan bank account / b ŋk ə kaυnt/ noun an bank account it is the reverse) or in the vertical form, with | assets at the top of the page, followed by li- account which a customer has with a bank, abilities, and capital at the bottom. Most are where the customer can deposit and with- usually drawn up in the vertical format, as opposed to the more old-fashioned horizon- draw money ć to open a bank account ć to tal style. close a bank account ć How much money dobalance sheet asset value / b lənsbalance sheet asset value you have in your bank account? ć If you letʃi t set v lju / noun the value of a com- the balance in your bank account fall belowpany calculated by adding together all its $1,000, you have to pay bank charges. bank advance / b ŋk əd vɑ ns/ noun bank advanceassets |balance sheet audit / b ləns ʃi tbalance sheet audit same as bank loan ć She asked for a bank ɔ dit/ noun a limited audit of the items on a advance to start her business. bank balance / b ŋk b ləns/ noun the bank balancecompany’s balance sheet in order to confirmthat it complies with the relevant standards state of a bank account at any particular timeand requirements ć Our bank balance went into the red last month.balance sheet date / b ləns ʃi t deit/balance sheet date bank base rate / b ŋk beis reit/ noun bank base ratenoun the date (usually the end of a financialor accounting year) when a balance sheet is a basic rate of interest, on which the actualdrawn up rate a bank charges on loans to its customers is calculated. Also called base ratebalance sheet equation / b ləns ʃi t ibalance sheet equation bank bill / b ŋk bil/ noun 1. a bill of | bank bill kwei (ə)n/ noun the basis upon which allaccounts are prepared, that assets = liabili- exchange by one bank telling another bank,ties + assets usually in another country, to pay money to someone 2. same as banker’s bill 3. USbalance sheet total / b ləns ʃi tbalance sheet total same as banknote təυt(ə)l/ noun in the United Kingdom, the bank book / b ŋk bυk/ noun a book bank booktotal of assets shown at the bottom of a bal- given by a bank or building society whichance sheet and used to classify a company shows money which you deposit or with-according to size draw from your savings account or buildingbalancing item / b lənsiŋ aitəm/, bal-balancing item society account. Also called passbookancing figure / b lənsiŋ fi ə/ noun an bank borrowings / b ŋk bɒrəυiŋz/ bank borrowingsitem introduced into a balance sheet to make plural noun money borrowed from banksthe two sides balance bank card / b ŋk kɑ d/ noun a credit bank cardballoon /bə lu n/ noun a loan where theballoon | card or debit card issued to a customer by alast repayment is larger than the others bank for use instead of cash when buyingballoon mortgage /bə lu n mɔ id /balloon mortgage | goods or services (NOTE: There are interna-noun a mortgage in which the final payment tionally recognised rules that govern the
  • 27. Accounting.fm Page 21 Tuesday, February 13, 2007 1:40 PM 21 bank reconciliation authorisation of the use of bank cards and bank holiday bank holiday / b ŋk hɒlidei/ noun a the clearing and settlement of transactions weekday which is a public holiday when the in which they are used.) banks are closed ć New Year’s Day is a bank bank certificate / b ŋk sə tifikət/ noun bank certificate | holiday. ć Are we paid for bank holidays in a document, often requested during an audit, this job? that is signed by a bank official and confirms bank identification number bank identification number / b ŋk the balances due or from a company on a aidentifi keiʃ(ə)n n mbə/ noun an inter- | specific date nationally organised six-digit number which bank charge / b ŋk tʃɑ d / noun same bank charge identifies a bank for charge card purposes. as service charge Abbreviation BIN bank confirmation / b ŋk bank confirmation banking banking / b ŋkiŋ/ noun the business of kɒnfəmeiʃ(ə)n/ noun verification of a banks ć He is studying banking. ć She has company’s balances requested by an auditor gone into banking. from a bank banking account banking account / b ŋkiŋ ə kaυnt/ | bank credit / b ŋk kredit/ noun loans bank credit noun US an account which a customer has or overdrafts from a bank to a customer with a bank bank deposits / b ŋk di pɒzits/ plural bank deposits banking covenants | banking covenants / b ŋkiŋ noun all money placed in banks by private or k vənənts/ plural noun a set of conditions corporate customers imposed by a bank when it lends an institu- bank draft / b ŋk drɑ ft/ noun an order bank draft tion a large amount of money by one bank telling another bank, usually in Banking Ombudsman another country, to pay money to someone Banking Ombudsman / b ŋkiŋ ɒmbυdzmən/ noun an official whose duty banker / b ŋkə/ noun 1. a person who is banker is to investigate complaints by members of in an important position in a bank 2. a bank the public against banks ć the company’s banker is Barclays banking products banker’s acceptance / b ŋkəz ək banker’s acceptance | banking products / b ŋkiŋ prɒd kts/ septəns/ noun a bill of exchange guaran- plural noun goods and services produced by teed by a bank banks for customers, e.g. statements, direct debits Bankers’ Automated Clearing Serv- Bankers’ Automated Clearing Services bank loan ices / b ŋkəz ɔ təmeitid kliəriŋ bank loan / b ŋk ləυn/ noun a loan made s visiz/ plural noun full form of BACS by a bank to a customer, usually against the banker’s bill / b ŋkəz bil/ noun an order banker’s bill security of a property or asset ć She asked by one bank telling another bank, usually in for a bank loan to start her business. Also another country, to pay money to someone. called bank advance bank manager Also called bank bill bank manager / b ŋk m nid ə/ noun banker’s credit card / b ŋkəz kredit banker’s credit card the person in charge of a branch of a bank ć kɑ d/ noun a credit card issued by a bank, They asked their bank manager for a loan. bank mandate as opposed to cards issued by stores. Typical bank mandate / b ŋk m ndeit/ noun a such cards are Visa, Egg or MasterCard. written order to a bank, asking it to open an banker’s draft / b ŋkəz drɑ ft/ noun a banker’s draft account and allow someone to sign cheques draft payable by a bank in cash on presenta- on behalf of the account holder, and giving tion. Abbreviation B/D specimen signatures and relevant informa- banker’s lien / b ŋkəz li n/ noun the banker’s lien tion banknote right of a bank to hold some property of a banknote / b ŋk nəυt/ noun 1. a piece of customer as security against payment of a printed paper money ć a counterfeit £20 debt banknote (NOTE: The US term is bill.) 2. US banker’s order / b ŋkəz ɔ də/ noun an banker’s order a non-interest bearing note, issued by a Fed- order written by a customer asking a bank to eral Reserve Bank, which can be used as make a regular payment ć He pays his sub- cash Bank of England scription by banker’s order. Bank of England / b ŋk əv iŋ lənd/ banker’s banker’s reference reference / b ŋkəz noun the UK central bank, owned by the ref(ə)rəns/ noun a written report issued by state, which, together with the Treasury, reg- a bank regarding a particular customer’s ulates the nation’s finances creditworthiness bank reconciliation bank reconciliation / b ŋk rekənsili | bank giro / b ŋk d airəυ/ noun a eiʃ(ə)n/ noun the act of making sure that bank giro method used by clearing banks to transfer the bank statements agree with the com- money rapidly from one account to another pany’s ledgers
  • 28. Accounting.fm Page 22 Tuesday, February 13, 2007 1:40 PMbank reserves 22bank reserves / b ŋk ri z vz/ plural bartering / bɑ təriŋ/ noun the act ofbank reserves bartering |noun cash and securities held by a bank to exchanging goods for other goods and notcover deposits for moneybank return / b ŋk ri t n/ noun a regu-bank return base /beis/ noun 1. the lowest or first posi- base |lar report from a bank on its financial posi- tion ć Turnover increased by 200%, buttion started from a low base. 2. a place where abankrupt / b ŋkr pt/ noun, adjective (abankrupt company has its main office or factory, or aperson) who has been declared by a court place where a business person’s office isnot to be capable of paying his or her debts located ć The company has its base in Lon-and whose affairs are put into the hands of a don and branches in all the European coun-receiver ć a bankrupt property developer ć tries. ć She has an office in Madrid whichShe was adjudicated or declared bankrupt. she uses as a base while travelling in South-ć He went bankrupt after two years in busi- ern Europe. í verb ˽ to base something onness. í verb to make someone become something to calculate something usingbankrupt ć The recession bankrupted my something as your starting point or basicfather. material for the calculation ć We based ourbankruptcy / b ŋkr ptsi/ noun the statebankruptcy calculations on the forecast turnover. ˽of being bankrupt ć The recession has based on calculating from ć based on lastcaused thousands of bankruptcies. (NOTE: year’s figures ć based on population fore-The plural is bankruptcies.) castsbankruptcy order / b ŋkr ptsi ɔ də/bankruptcy order ‘…the base lending rate, or prime rate, isnoun same as declaration of bankruptcy the rate at which banks lend to their topbankruptcy petition / b ŋkr ptsi pəbankruptcy petition | corporate borrowers’ [Wall Street Jour- tiʃ(ə)n/ noun an application to a court ask- nal]ing for an order making someone bankrupt ‘…other investments include a large stakebankruptcybankruptcy proceedings proceedings in the Chicago-based insurance company’/ b ŋkr ptsi prə si diŋz/ plural noun a | [Lloyd’s List] base currency / beis k rənsi/ noun a base currencycourt case to make someone bankruptbank statement / b ŋk steitmənt/bank statement currency against which exchange rates ofnoun a written statement from a bank show- other currencies are quoted base period / beis piəriəd/ noun US 1. base perioding the balance of an account at a specificdate a period against which comparisons arebank syndicate / b ŋk sindikət/ nounbank syndicate made 2. the time that an employee musta group of major international banks which work before becoming eligible for stategroup together to underwrite a very large unemployment insurance benefits ćloan Because she had not worked for the basebank transfer / b ŋk tr nsf / noun anbank transfer period, she had to rely on the support of heract of moving money from a bank account to family when she lost her job. ć The new gov-another account ernment shortened the base period, in orderbargain / bɑ in/ noun an agreement onbargain to increase social service spending. base rate / beis reit/ noun same as bank base ratethe price of something ć to strike a bargainor to make a bargain í verb to try to reach base rate base-weighted index / beis weitid base-weighted indexagreement about something, especially aprice, usually with each person or group indeks/ noun an index which is weightedinvolved putting forward suggestions or according to the base yearoffers which are discussed until a compro- base year / beis jiə/ noun the first year of base yearmise is arrived at ć You will have to bargain an index, against which changes occurringwith the dealer if you want a discount. ć in later years are measuredThey spent two hours bargaining about or basic / beisik/ adjective normal basicover the price. (NOTE: You bargain with basic balance / beisik b ləns/ noun basic balancesomeone over or about or for something.)barter / bɑ tə/ noun a system in whichbarter the balance of current account and long-goods are exchanged for other goods and not term capital accounts in a country’s balancesold for money of payments basic commodities / beisik kə basic commodities ‘…under the barter agreements, Nigeria | will export 175,000 barrels a day of crude mɒditiz/ plural noun ordinary farm pro- oil in exchange for trucks, food, planes and duce, produced in large quantities, e.g. corn, chemicals’ [Wall Street Journal] rice or sugar
  • 29. Accounting.fm Page 23 Tuesday, February 13, 2007 1:40 PM 23 below-the-line basic discount / beisik diskaυnt/ noun basic discount group of documents which are processed at a normal discount without extra percentages the same time ć Today’s batch of invoices is ć Our basic discount is 20%, but we offer ready to be mailed. ć The factory is working 5% extra for rapid settlement. on yesterday’s batch of orders. ć The basic earnings per share / beisik basic earnings per share accountant signed a batch of cheques. ć We niŋz pə ʃeə/ noun a figure that shows an deal with the orders in batches of fifty at a investor how much of a company’s profit time. í verb to put items together in groups belongs to each share ć to batch invoices or cheques batch costing / b tʃ kɒstiŋ/ noun a batch costing basic pay / beisik pei/ noun a normal basic pay salary without extra payments. Also called method of calculating the price of one item basic salary, basic wage as part of a batch of items made at the same basic product / beisik prɒd kt/ noun basic product time batch-level activities / b tʃ lev(ə)l batch-level activities the main product made from a raw material basic rate tax / beisik reit t ks/ noun basic rate tax k tivitiz/ plural noun business activities | the lowest rate of income tax that vary as output varies b/d abbreviation brought down b/d basic salary / beisik s ləri/, basic basic salary wage noun same as basic pay B/D abbreviation banker’s draft B/D basis / beisis/ noun 1. a point or number basis bear /beə/ verb 1. to give interest ć govern- bear from which calculations are made ć We ment bonds which bear 5% interest 2. to forecast the turnover on the basis of a 6% have something, especially to have some- price increase. (NOTE: The plural is bases.) thing written on it ć an envelope which 2. the general terms of agreement or general bears a London postmark ć a letter bearing principles on which something is decided or yesterday’s date ć The cheque bears the sig- done ć This document should form the basis nature of the company secretary. ć The for an agreement. ć We have three people share certificate bears his name. 3. to pay working on a freelance basis. (NOTE: The costs ć The costs of the exhibition will be plural is bases.) ˽ on a short-term or long- borne by the company. ć The company bore term basis for a short or long period ć He the legal costs of both parties. (NOTE: bear- has been appointed on a short-term basis. ing – bore – has borne) basis of accounting / beisis əv ə bearer / beərə/ noun a person who holds a basis of accounting bearer | kaυntiŋ/ noun any of various methods of cheque or certificate recognising income and expenditure in the bearer bond / beərə bɒnd/, bearer bearer bond preparation of accounts security / beərə si k υəriti/ noun a bond | basis of apportionment / beisis əv ə basis of apportionment | which is payable to the bearer and does not pɔ ʃənmənt/ noun a way in which com- have a name written on it mon overhead costs are shared among vari- beginning inventory beginning inventory /bi iniŋ | ous cost centres invənt(ə)ri/ noun US same as opening basis of assessment / beisis əv ə basis of assessment | stock sesmənt/ noun a method of deciding in behavioural accounting /bi heivjərəl behavioural accounting | which year financial transactions should be ə kaυntiŋ/ noun an approach to the study of | assessed for taxation accounting that emphasises the psychologi- basis period / beisis piəriəd/ noun the basis period cal and social aspects of the profession in period during which transactions occur, addition to the more technical areas used for the purpose of deciding in which below-the-line /bi ləυ ðə lain/ adjec- below-the-line | they should be assessed for taxation tive, adverb used to describe entries in a basis point / beisis pɔint/ noun one hun- basis point company’s profit and loss account that show dredth of a percentage point (0.01%), the how the profit is distributed, or where the basic unit used in measuring market move- funds to finance the loss originate. ı above- ments or interest rates the-line 1 basis swap / beisis swɒp/ noun the basis swap below-the-line expenditure /bi ləυ ðə below-the-line | exchange of two financial instruments, each lain ik spenditʃə/ noun 1. payments which | with a variable interest calculated on a dif- do not arise from a company’s usual activi- ferent rate ties, e.g. redundancy payments 2. extraordi- basket of currencies / bɑ skit əv basket of currencies nary items which are shown in the profit and k rənsiz/ noun same as currency basket loss account below net profit after taxation, batch /b tʃ/ noun 1. a group of items batch as opposed to exceptional items which are which are made at one time ć This batch of included in the figure for profit before taxa- shoes has the serial number 25–02. 2. a tion
  • 30. Accounting.fm Page 24 Tuesday, February 13, 2007 1:40 PMbenchmark 24benchmark / bentʃmɑ k/ noun a point orbenchmark bequest bequest /bi kwest/ noun something such |level which is important, and can be used as as property or money (but not freeholda reference when making evaluations or land), given to someone in a will ć He madeassessments several bequests to his staff.benchmark accounting policybenchmark accounting policy best practice best practice / best pr ktis/ noun the/ bentʃmɑ k ə kaυntiŋ pɒlisi/ noun one | most effective and efficient way to do some-of a choice of two possible policies within thing or to achieve a particular aim (NOTE: Inan International Accounting Standard. The business, best practice is often determinedother policy is marked as an ‘allowed alter- by benchmarking, that is by comparing thenative’, although there is no indication of method one organisation uses to carry outpreference. a task with the methods used by other sim-benchmarking / bentʃmɑ kiŋ/ noun thebenchmarking ilar organisations and determining whichpractice of measuring the performance of a method is most efficient and effective.)company against the performance of other ‘For the past 25 years, managers have beencompanies in the same sector. Benchmark- taught that the best practice for valuinging is also used widely in the information assets…is to use a discounted-cash-flowtechnology sector to measure the perform- (DCF) methodology.’ance of computer-based information sys- [Harvard Business Review]tems. b/f b/f abbreviation brought forwardbeneficial interest / benifiʃ(ə)lbeneficial interest BFH intrəst/ noun a situation where someone is BFH / bi ef aitʃ/ noun in Germany, theallowed to occupy or receive rent from a supreme court for issues concerning taxa-house without owning it tion. Full form Bundesfinanzhof bidbeneficial occupierbeneficial occupier / benifiʃ(ə)l bid /bid/ noun 1. an offer to buy something ɒkjυpaiə/ noun a person who occupies a at a specific price. ı takeover bid ˽ to makeproperty but does not own it fully a bid for something to offer to buy some-beneficiary / beni fiʃəri/ noun a personbeneficiary thing ć We made a bid for the house. ć The company made a bid for its rival. ˽ to make |who gains money from something ć thebeneficiaries of a will a cash bid to offer to pay cash for something ˽ to put in or enter a bid for something tobenefit / benifit/ verb 1. to make better orbenefit offer to buy something, usually in writing 2.to improve ć A fall in inflation benefits the an offer to sell something or do a piece ofexchange rate. 2. ˽ to benefit from or by work at a specific price ć She made the low-something to be improved by something, to est bid for the job. í verb to offer to buy ˽gain more money because of something ć to bid for something (at an auction) to offerExports have benefited from the fall in the to buy something ˽ he bid £1,000 for theexchange rate. ć The employees have bene- jewels he offered to pay £1,000 for the jew-fited from the profit-sharing scheme. els ‘…the retail sector will also benefit from bidder the expected influx of tourists’ [Australian bidder / bidə/ noun a person who makes a Financial Review] bid, usually at an auction ć Several bidders made offers for the house.benefit-cost analysis / benifit kɒst əbenefit-cost analysis | bidding n lisis/ noun same as cost-benefit analy- bidding / bidiŋ/ noun the act of makingsis offers to buy, usually at an auction ˽ thebenefit in kind / benifit in kaind/ nounbenefit in kind bidding started at £1,000 the first and low-a benefit other than money received by an est bid was £1,000 ˽ the bidding stoppedemployee as part of his or her total compen- at £250,000 the last bid, i.e. the successfulsation package, e.g. a company car or private bid, was for £250,000 ˽ the auctioneerhealth insurance. Such benefits are usually started the bidding at £100 the auctioneersubject to tax. suggested that the first bid should be £100 bid marketBenford’s Law / benfədz lɔ / noun a lawBenford’s Law bid market / bid mɑ kit/ noun a marketdiscovered by Dr Benford in 1938, which where there are more bids to buy than offersshows that in sets of random numbers, it is to sell. Opposite offered market bid-offer pricemore likely that the set will begin with the bid-offer price / bid ɒfə prais/ noun anumber 1 than with any other number price charged by unit trusts to buyers andBEP abbreviation break-even pointBEP sellers of units, based on the bid-offer spread bid-offer spreadbequeath /bi kwi ð/ verb to leave prop- bid-offer spread / bid ɒfə spred/ nounbequeath |erty, money, etc. (but not freehold land) to the difference between buying and sellingsomeone in a will prices (i.e. between the bid and offer prices)
  • 31. Accounting.fm Page 25 Tuesday, February 13, 2007 1:40 PM 25 blind trust bid price bid price / bid prais/ noun a price at ‘…at its last traded price the bank was cap- which investors sell shares or units in a unit italized at around $1.05 billion’ [South trust (NOTE: The opposite, i.e. the buying China Morning Post] bill of exchange / bil əv iks tʃeind / bill of exchange price, is called the offer price; the differ- | ence between the two is the spread.) noun a document, signed by the person bid rate bid rate / bid reit/ noun a rate of interest authorising it, which tells another person or offered on deposits a financial institution to pay money uncon- big business ditionally to a named person on a specific big business / bi biznis/ noun very date (NOTE: Bills of exchange are usually large commercial firms used for payments in foreign currency.) bill of lading / bil əv leidiŋ/ noun a doc- Big Four Big Four / bi fɔ / noun 1. the four large bill of lading British commercial banks: Barclays, Lloyd- ument listing goods that have been shipped, sTSB, HSB and Natwest, now joined by sev- sent by the transporter to the seller and eral former building societies that have entered in the seller’s accounts as money become banks 2. the four largest interna- owed but not yet paid, and therefore as an tional accounting companies: Pricewater- asset houseCoopers, Deloitte Touche Tohmatsu, bill of materials / bil əv mə tiəriəlz/ bill of materials | Ernst & Young and KPMG 3. the four larg- noun a document setting out the materials est Japanese securities houses: Daiwa, and parts required to make a product Nikko, Nomura and Yamaichi bill of sale / bil əv seil/ noun a document bill of sale bilateral clearing bilateral clearing /bai l t(ə)rəl | which the seller gives to the buyer to show kliəriŋ/ noun the system of annual settle- that the sale has taken place bills payable / bilz peiəb(ə)l/ plural bills payable ments of accounts between some countries, where accounts are settled by the central noun bills, especially bills of exchange, banks which a company will have to pay to its bilateral credit bilateral credit /bai l t(ə)rəl kredit/ | creditors. Abbreviation B/P bills receivable / bilz ri si vəb(ə)l/ plu- bills receivable noun credit allowed by banks to other banks | in a clearing system, to cover the period ral noun bills, especially bills of exchange, while cheques are being cleared which are due to be paid by a company’s bill debtors. Abbreviation B/R bill /bil/ noun 1. a written list of charges to BIN abbreviation bank identification BIN be paid ć The bill is made out to Smith Ltd number ć The sales assistant wrote out the bill. ć binder / baində/ noun US a temporary binder Does the bill include VAT? 2. a list of charges in a restaurant ć Can I have the bill agreement for insurance sent before the please? ć The bill comes to £20 including insurance policy is issued (NOTE: The UK term is cover note.) service. ć Does the bill include service? black economy / bl k i kɒnəmi/ noun black economy Same as check 3. a written paper promising | to pay money 4. US same as banknote ć a goods and services which are paid for in $5 bill 5. a draft of a new law which will be cash, and therefore not declared for tax. discussed in Parliament í verb to present a Also called hidden economy, parallel bill to someone so that it can be paid ć The economy, shadow economy black market / bl k mɑ kit/ noun the black market plumbers billed us for the repairs. bill broker buying and selling of goods or currency in a bill broker / bil brəυkə/ noun a discount way which is not allowed by law ć There is house, a firm which buys and sells bills of a flourishing black market in spare parts for exchange for a fee cars. billing billing / biliŋ/ noun the work of writing blank cheque / bl ŋk tʃek/ noun a blank cheque invoices or bills cheque with the amount of money and the billion billion / biljən/ noun one thousand million payee left blank, but signed by the drawer blanket lien / bl ŋkit li n/ noun US a blanket lien (NOTE: In the US, it has always meant one thousand million, but in UK English it for- lien on a person’s property, including per- merly meant one million million, and it is still sonal effects sometimes used with this meaning. With blind entry / blaind entri/ noun a book- blind entry figures it is usually written bn: $5bn say keeping entry that simply records a debit or ‘five billion dollars’.) credit but not other essential information blind trust / blaind tr st/ noun a trust set blind trust ‘…gross wool receipts for the selling sea- son to end June 30 appear likely to top $2 up to run a person’s affairs without the billion’ [Australian Financial Review] details of any transaction being known to the
  • 32. Accounting.fm Page 26 Tuesday, February 13, 2007 1:40 PMblocked account 26person concerned (NOTE: Blind trusts are set directors. 2. US a group of people elected byup by politicians to avoid potential conflicts the shareholders to draw up company policyof interest.) and to appoint the president and other exec-blocked account / blɒkt ə kaυnt/ nounblocked account | utive officers who are responsible for man-a bank account which cannot be used, usu- aging the companyally because a government has forbidden its ‘…a proxy is the written authorization anuse investor sends to a stockholder meetingblocked currency / blɒkt k rənsi/blocked currency conveying his vote on a corporate resolu-noun a currency which cannot be taken out tion or the election of a company’s boardof a country because of government of directors’ [Barrons] bona fide / bəυnə faidi/ adjective trust- bona fideexchange controlsblocked funds / blɒkt f ndz/ pluralblocked funds worthy, which can be trustednoun money that cannot be transferred from bond /bɒnd/ noun 1. a contract document bondone place to another, usually because of promising to repay money borrowed by aexchange controls imposed by the govern- company or by the government on a specificment of the country in which the funds are date, and paying interest at regular intervalsheld 2. ˽ goods (held) in bond goods held byblock trading / blɒk treidiŋ/ noun trad-block trading customs until duty has been paid ˽ entry ofing in very large numbers of shares goods under bond bringing goods into aBlue Book / blu bυk/ noun an annualBlue Book country in bond ˽ to take goods out ofpublication of national statistics of personal bond to pay duty on goods so that they canincomes and spending patterns be released by customs 3. a form of insur-blue chip / blu tʃip/ noun a very safeblue chip ance fund which is linked to a unit trust, butinvestment, a risk-free share in a good com- where there is no yield because the incomepany is automatically added to the fund bond discount / bɒnd diskaυnt/ noun bond discountBlue list / blu list/ noun US a daily list ofBlue listmunicipal bonds and their ratings, issued by the difference between the face value of aStandard & Poor’s bond and the lower price at which it is issued bonded / bɒndid/ adjective held in bond bondedblue sky laws / blu skai lɔ z/ pluralblue sky laws bonded warehouse / bɒndid bonded warehousenoun US state laws to protect investorsagainst fraudulent traders in securities weəhaυs/ noun a warehouse where goodsboard /bɔ d/ noun 1. same as board ofboard are stored until excise duty has been paiddirectors ć He sits on the board as a repre- bond fund / bɒnd f nd/ noun a unit trust bond fundsentative of the bank. ć Two directors were in which investments are made in the formremoved from the board at the AGM. 2. a of bondsgroup of people who run an organisation, bondholder / bɒnd həυldə/ noun a per- bondholdertrust or society 3. ˽ on board on a ship, | son who holds government bondsplane or train í verb to go on to a ship, plane bond indenture / bɒnd in dentʃə/ noun bond indentureor train ć Customs officials boarded the ship |in the harbour. a document that details the terms of a bond bondised / bɒndaizd/, bondized adjec- bondised ‘CEOs, with their wealth of practical expe- rience, are in great demand and can pick tive referring to an insurance fund linked to and choose the boards they want to serve a unit trust bond market / bɒnd mɑ kit/ noun a bond market on’ [Duns Business Month]Board for Actuarial Standards / bɔ dBoard for Actuarial Standards market in which government or municipalfər ktʃu eəriəl st ndədz/ noun a UK | bonds are traded bond premium / bɒnd pri miəm/ noun bond premiumauthority with responsibility for overseeingthe actuarial profession and setting actuarial the difference between the face value of astandards bond and a higher price at which it is issuedboard meeting / bɔ d mi tiŋ/ noun a bond-washing / bɒnd wɒʃiŋ/ noun theboard meeting bond-washingmeeting of the directors of a company act of selling securities cum dividend andBoard of Customs and Excise / bɔ dBoard of Customs and Excise buying them back later ex dividend, or sell-əv k stəmz ənd eksaiz/ noun the ruling ing US Treasury bonds with the interest cou-body of the Customs and Excise pon, and buying them back ex coupon, so asboard of directors / bɔ d əv daiboard of directors | to reduce tax rektəz/ noun 1. a group of directors elected bond yield / bɒnd ji ld/ noun income bond yieldby the shareholders to run a company ć The produced by a bond, shown as a percentagebank has two representatives on the board of of its purchase price
  • 33. Accounting.fm Page 27 Tuesday, February 13, 2007 1:40 PM 27 borrowings bonus / bəυnəs/ noun an extra payment in book value per share / bυk v lju pə bonus book value per share addition to a normal payment ʃeə/ noun a company’s own assessment of bonus issue / bəυnəs iʃu / noun a scrip bonus issue the value of its shares, which may differ con- issue or capitalisation issue, in which a com- siderably from the market value pany transfers money from reserves to share boom /bu m/ noun a time when sales, pro- boom capital and issues free extra shares to the duction or business activity are increasing ć shareholders. The value of the company a period of economic boom ć the boom of remains the same, and the total market value the 1990s of shareholders’ shares remains the same, booming / bu miŋ/ adjective expanding booming the market price being adjusted to account or becoming prosperous ć a booming indus- for the new shares. Also called share split try or company ć Technology is a booming (NOTE: The US term is stock split.) sector of the economy. bonus share / bəυnəs ʃeə/ noun an extra bonus share boost /bu st/ noun help given to increase boost share given to an existing shareholder something ć This publicity will give sales a book /bυk/ noun 1. a set of sheets of paper boost. ć The government hopes to give a book attached together ˽ a company’s books the boost to industrial development. í verb to financial records of a company 2. a state- make something increase ć We expect our ment of a dealer’s exposure to the market, publicity campaign to boost sales by 25%. ć i.e. the amount which he or she is due to pay The company hopes to boost its market or has borrowed ˽ to make a book to have share. ć Incentive schemes are boosting a list of shares which he or she is prepared to production. buy or sell on behalf of clients ‘…the company expects to boost turnover book inventory / bυk invənt(ə)ri/ noun this year to FFr 16bn from FFr 13.6bn last book inventory the number of stock items recorded in year’ [Financial Times] accounts, which is verified by a physical BOP abbreviation balance of payments BOP count border tax adjustment / bɔ də t ks ə border tax adjustment | bookkeeper / bυk ki pə/ noun a person bookkeeper | d stmənt/ noun a deduction of indirect who keeps the financial records of a com- tax paid on goods being exported or imposi- pany or an organisation tion of local indirect tax on goods being bookkeeping / bυk ki piŋ/ noun the imported bookkeeping | work of keeping the financial records of a borrow / bɒrəυ/ verb 1. to take money borrow company or an organisation from someone for a time, possibly paying bookkeeping barter / bυkki piŋ interest for it, and repaying it at the end of bookkeeping barter bɑ tə/ noun the direct exchange of goods the period ć She borrowed £1,000 from the between two parties without the use of bank. ć The company had to borrow heavily money as a medium, but using monetary to repay its debts. ć They borrowed £25,000 measures to record the transaction against the security of the factory. 2. to buy bookkeeping transaction / bυkki piŋ bookkeeping transaction at spot prices and sell forward at the same tr n z kʃən/ noun a transaction which | time borrower / bɒrəυə/ noun a person who borrower involves changes to a company’s books of accounts, but does not alter the value of the borrows ć Borrowers from the bank pay company in any way, e.g. the issue of bonus 12% interest. shares borrowing / bɒrəυiŋ/ noun the act of bor- borrowing book of account / bυk əv ə kaυnt/ book of account | rowing money ć The new factory was noun an account book, a book which records financed by bank borrowing. financial transactions ‘…we tend to think of building societies as book of prime entry / bυk əv praim book of prime entry having the best borrowing rates and indeed entri/, book of original entry noun a many do offer excellent terms’ [Financial chronological record of a business’s transac- Times] tions arranged according to type, e.g., cash borrowing costs / bɒrəυiŋ kɒsts/ plural borrowing costs or sales. The books are then used to generate noun the interest and other charges paid on entries in a double-entry bookkeeping sys- money borrowed tem. borrowing power / bɒrəυiŋ paυə/ borrowing power book sales / bυk seilz/ plural noun sales noun the amount of money which a com- book sales as recorded in the sales book pany can borrow book value / bυk v lju / noun the value borrowings / bɒrəυiŋz/ plural noun book value borrowings of an asset as recorded in the company’s bal- money borrowed ć The company’s borrow- ance sheet ings have doubled.
  • 34. Accounting.fm Page 28 Tuesday, February 13, 2007 1:40 PMbottleneck 28bottleneck / bɒt(ə)lnek/ noun a situation breach of contract / bri tʃ əvbottleneck breach of contractwhich occurs when one section of an opera- kɒntr kt/ noun the failure to do some-tion cannot cope with the amount of work it thing which has been agreed in a contracthas to do, which slows down the later stages breach of trust / bri tʃ əv tr st/ noun a breach of trustof the operation and business activity in gen- situation where a person does not act cor-eral ć a bottleneck in the supply system ć rectly or honestly when people expect himThere are serious bottlenecks in the produc- or her totion line. break /breik/ noun 1. a pause between breakbottleneck activity / bɒt(ə)lnek kbottleneck activity | periods of work ć She keyboarded for two tiviti/ noun any business activity for which hours without a break. 2. a sharp fall in sharethe work involved equals or exceeds the prices í verb 1. to fail to carry out the dutiesincome generated of a contract ć The company has broken thebottom / bɒtəm/ verb to reach the lowest contract or the agreement by selling at abottompoint ˽ the market has bottomed out the lower price. 2. to cancel a contract ć Themarket has reached the lowest point and company is hoping to be able to break thedoes not seem likely to fall further contract. (NOTE: [all verb senses] breakingbottom line / bɒtəm lain/ noun 1. thebottom line – broke – has broken)last line on a balance sheet indicating profit break down / breik daυn/ phrasal verb 1.or loss ˽ the boss is interested only in the to stop working because of mechanical fail-bottom line he is only interested in the final ure ć The fax machine has broken down. 2.profit 2. the final decision on a matter ć The to stop ć Negotiations broke down after sixbottom line was that the work had to com- hours. 3. to show all the items in a total listpleted within budget. of costs or expenditure ć We broke the ex- penditure down into fixed and variablebottom-up budgeting / bɒtəmbottom-up budgeting p costs. b d itiŋ/ noun same as participativebudgeting break even / breik i v(ə)n/ verb to bal- ance costs and receipts, so as to make nei-bought day book / bɔ t dei bυk/ nounbought day book ther a profit nor a loss ć Last year thea book used to record purchases made on company only just broke even. ć We brokecredit even in our first two months of trading.bought ledger / bɔ t led ə/ noun a bookbought ledger break up / breik p/ phrasal verb to splitin which purchases are recorded something large into small sections ć Thebought ledger clerk / bɔ t led əbought ledger clerk company was broken up and separate divi- klɑ k/ noun an office employee who deals sions sold off.with the bought ledger or the sales ledger breakages / breikid iz/ plural noun breakagesbounce /baυns/ verb (of a cheque) to bebounce breaking of items ć Customers are expectedreturned by the bank to the person who has to pay for breakages.tried to cash it, because there is not enough breakdown / breikdaυn/ noun 1. an act breakdownmoney in the payer’s account to pay it ć She of stopping working because of mechanicalpaid for the car with a cheque that bounced. failure ć We cannot communicate with ourB/P abbreviation bills payableB/P Nigerian office because of the breakdown ofB/R abbreviation bills receivableB/R the telephone lines. 2. an act of stopping talking ć a breakdown in wage negotiationsbracket / br kit/ noun a group of items orbracket 3. an act of showing details item by item ćpeople taken together ˽ she is in the top tax Give me a breakdown of investment costs.bracket she pays the highest level of tax break-even / breik i v(ə)n/ noun a situa- break-evenbranch accounting / brɑ ntʃ əbranch accounting | tion where there is neither a profit nor a loss kaυntiŋ/ noun the fact of operating sepa- break-even analysis / breik i v(ə)n ə break-even analysisrate accounting systems for each department |of an organisation n ləsis/ noun 1. the analysis of fixed and variable costs and sales that determines atbranch accounts / brɑ ntʃ ə kaυnts/branch accounts | what level of production the break-evenplural noun accounts showing transactions point will be reached ć The break-evenbelonging to the branches of a large organi- analysis showed that the company will onlysation, i.e., between a branch and other break even if it sells at least 1,000 bicycles abranches or its head office, or other compa- month. 2. a method of showing the point atnies outside the organisation which a company’s income from sales willbreach /bri tʃ/ noun a failure to carry outbreach be equal to its production costs so that it nei-the terms of an agreement ther makes a profit nor makes a loss (NOTE:
  • 35. Accounting.fm Page 29 Tuesday, February 13, 2007 1:40 PM 29 budget account Break-even analysis is usually shown in the British Accounting Association British Accounting Association form of a chart and can be used to help / britiʃ ə kaυntiŋ ə səυsieiʃ(ə)n/ an | | companies make decisions, set prices for organisation whose aim is to promote their products, and work out the effects of accounting education and research in the changes in production or sales volume on United Kingdom. F. Abbreviation BAA their costs and profits.) broker / brəυkə/ noun a dealer who acts as broker break-even chart / breik i v(ə)n tʃɑ t/ a middleman between a buyer and a seller break-even chart noun a chart showing the point at which a brokerage / brəυkərid / noun 1. same as brokerage company breaks even as the intersection broker’s commission 2. same as broking between a line plotting total revenue and a brokerage firm / brəυkərid f m/, bro- brokerage firm line plotting total cost kerage house / brəυkərid haυs/ noun a break-even point / breik i v(ə)n pɔint/ break-even point | firm which buys and sells shares for clients noun the point or level of financial activity broker-dealer / brəυkə di lə/ noun a broker-dealer at which expenditure equals income, or the dealer who buys shares and holds them for value of an investment equals its cost so that resale, and also deals on behalf of investor the result is neither a profit nor a loss. clients Abbreviation BEP broker’s commission / brəυkəz kə broker’s commission | break-even sales / breik i v(ə)n seilz/ break-even sales miʃ(ə)n/ noun the payment to a broker for plural noun a level of sales that neither gen- a deal which he or she has carried out. Also erates profit nor incurs loss called brokerage (NOTE: Formerly, the com- break-out / breik aυt/ noun a movement break-out mission charged by brokers on the London of a share price above or below its previous Stock Exchange was fixed, but since 1986, trading level commissions have been variable.) break-up value / breik p v lju / noun broking / brəυkiŋ/ noun the business of break-up value broking 1. the value of the material of a fixed asset ć dealing in stocks and shares What would the break-up value of our old brought down / brɔ t d υn/, brought brought down machinery be? 2. the value of various parts forward / brɔ t fɔ wəd/ adjective used to of a company taken separately describe the balance in an account from the bribe /braib/ noun money given secretly previous period when it is taken as the start- bribe and usually illegally to someone in authority ing point for the current period ć balance to get them to help ć The minister was dis- brought down or forward: £365.15 Abbrevi- missed for taking a bribe. ation b/d, b/f B/S abbreviation balance sheet B/S bricks-and-mortar / briks ən mɔ tə/ bricks-and-mortar adjective referring to the fixed assets of a B shares / bi ʃeəz/ plural noun ordinary B shares company, especially its buildings shares with special voting rights, often bridge finance / brid fain ns/ noun bridge finance owned by the founder of a company and his loans to cover short-term needs or her family. See Comment at A shares buck /b k/ noun US a dollar (informal) buck bridging loan / brid iŋ ləυn/ noun 1. a bridging loan short-term loan to help someone buy a new budget / b d it/ noun 1. a plan of budget house when the old one has not yet been sold expected spending and income for a period 2. a short-term loan made to a company, e.g. of time ć to draw up a budget for salaries to help in a cash-flow crisis or to fund com- for the coming year ć We have agreed on the pany restructuring (NOTE: [all senses] The budgets for next year. 2. ˽ the Budget the US term is bridge loan.) annual plan of taxes and government spend- bring down / briŋ daυn/ phrasal verb to ing ć The minister put forward a budget reduce ć Petrol companies have brought aimed at boosting the economy. í verb to down the price of oil. plan probable income and expenditure ć We bring forward / briŋ fɔ wəd/ phrasal verb are budgeting for $10,000 of sales next year. 1. to make something take place earlier ć to ‘…he budgeted for further growth of bring forward the date of repayment ć The 150,000 jobs (or 2.5 per cent) in the cur- date of the next meeting has been brought rent financial year’ [Sydney Morning Her- forward to March. 2. to take an account bal- ald] ance from the end of the previous period as ‘…the Federal government’s budget tar- the starting point for the current period ć gets for employment and growth are Balance brought forward: £365.15 within reach according to the latest fig- bring in / briŋ in/ phrasal verb to earn an ures’ [Australian Financial Review] amount of interest ć The shares bring in a budget account / b d it ə kaυnt/ noun budget account | small amount. a bank account where you plan income and
  • 36. Accounting.fm Page 30 Tuesday, February 13, 2007 1:40 PMbudgetary 30expenditure to allow for periods when output level for a budget period according toexpenditure is high, by paying a set amount the budget. It may be expressed in differenteach month ways, e.g., in machine hours or standardbudgetary / b d it(ə)ri/ adjective refer-budgetary hours.ring to a budget budgeted income statement budgeted income statementbudgetary control / b d it(ə)ri kənbudgetary control | / b d itid ink m steitmənt/ noun a trəυl/ noun controlled spending according statement of a company’s expected netto a planned budget income in a budgetary period budgeted revenue / b d itid budgeted revenuebudgetary policy / b d it(ə)ri pɒlisi/budgetary policynoun the policy of planning income and revənju / noun the income that an organi-expenditure sation expects to receive in a budget periodbudgetary requirements / b d it(ə)ribudgetary requirements according to the budget budget information / b d it budget informationri kwaiəməntz/ plural noun the rate of |spending or income required to meet the infəmeiʃ(ə)n/ noun information about abudget forecasts company’s expected future levels of incomebudgetary slack / b d it(ə)ri sl k/budgetary slack and expenditure budgeting / b d itiŋ/ noun the prepara- budgetingnoun a deliberate underestimation ofincome and overestimation of costs, tion of budgets to help plan expenditure anddesigned to allow for budgetary emergen- incomecies or to make targets more easily attainable budgeting models / b d itiŋ budgeting modelsbudget centre / b d it sentə/ noun abudget centre mɒd(ə)lz/ plural noun mathematical mod-part of an organisation for which a separate els used in the planning of a budget andbudget is prepared designed to generate a profitbudget committee / b d it kə miti/ budget lapsing / b d it l psiŋ/ nounbudget committee budget lapsing |noun the group within an organisation withdrawal by an authority of the unspentresponsible for drawing up budgets that portion of an organization’s budget allow-meet departmental requirements, ensuring ance at the time the budget period expiresthey comply with policy, and then submit- budget manual / b d it m njuəl/ budget manualting them to the board of directors noun a handbook or set of documents thatbudget control / b d it kən trəυl/ nounbudget control | detail budgetary procedure for a company orthe monitoring of a company’s actual per- organisationformance against its expected performance budget period / b d it piəriəd/ noun a budget periodas detailed in a budget plan period of time covered by a budgetBudget Day / b d it dei/ noun the dayBudget Day budget planning calendar / b d it budget planning calendarwhen the Chancellor of the Exchequer pl niŋ k lində/ noun a schedule show-presents the budget to Parliament. This is ing plans for the preparation of an organisa-usually in March, but with an advance tion’s master budget and the departmentalbudget statement in November. budgets that depend on it, which usuallybudget deficit / b d it defisit/ noun 1. takes several monthsbudget deficita deficit in a country’s planned budget, budget report / b d it ri pɔ t/ noun a budget report |where income from taxation will not be suf- report that compares a company’s actualficient to pay for the government’s expendi- performance with its budgeted performanceture 2. a deficit in personal finances where a for a given periodhousehold will borrow to finance large pur- budget surplus / b d it s pləs/ noun budget surpluschases which cannot be made out of income a situation where there is more revenue thanalone was planned for in the budgetbudget department / b d it dibudget department | budget variance / b d it veəriəns/ budget variance pɑ tmənt/ noun a department in a large noun the difference between the cost as esti-store which sells cheaper goods mated for a budget and the actual costbudget director / b d it dai rektə/budget director | buffer stocks / b fə stɒks/ plural noun buffer stocksnoun the person in an organisation who is stocks of a commodity bought by an interna-responsible for running the budget system tional body when prices are low and held forbudgeted balance sheet / b d itidbudgeted balance sheet resale at a time when prices have risen, with b ləns ʃi t/ noun a statement of com- the intention of reducing sharp fluctuationspany’s estimated financial position at the in world prices of the commodityend of a budgetary year build into / bild intu / phrasal verb to in-budgeted capacity / b d itid kəbudgeted capacity | clude something in something which is be- p siti/ noun an organisation’s available ing set up ć You must build all the forecasts
  • 37. Accounting.fm Page 31 Tuesday, February 13, 2007 1:40 PM 31 business expenses into the budget. that many employees were being laid off build up / bild p/ phrasal verb 1. to create unfairly. something by adding pieces together ć She Bundesfinanzhof Bundesfinanzhof / bυndəzfi | bought several shoe shops and gradually n ntshɒf/ noun the German Federal built up a chain. 2. to expand something Finance Court gradually ć to build up a profitable business business / biznis/ noun 1. work in buy- business ć to build up a team of sales representatives ing, selling, or doing other things to make a building and loan association building and loan association profit ć We do a lot of business with Japan. / bildiŋ ən ləυn ə səυsieiʃ(ə)n/ noun US | ć Business is slow. ć We did more business same as building society in the week before Christmas than we usu- building society / bildiŋ sə saiəti/ noun building society | ally do in a month. ć What’s your line of a financial institution which accepts and business? 2. a commercial company ć He pays interest on deposits, and lends money owns a small car repair business. ć She runs to people who are buying property against a business from her home. ć I set up in busi- the security of the property which is being ness as an insurance broker. 3. the affairs bought ć We put our savings into a building discussed ć The main business of the meet- society or into a building society account. ć ing was finished by 3 p.m. I have an account with the Nationwide Business Accounting Deliberation Business Accounting Deliberation Council Building Society. ć I saw the building soci- Council / biznis ə kaυntiŋ di libə | | | ety manager to ask for a mortgage. (NOTE: reiʃ(ə)n kaυns(ə)l/ noun in Japan, a com- The US term is savings and loan.) mittee controlled by the Ministry of Finance buildup / bild p/ noun a gradual increase buildup that is responsible for drawing up regula- ć a buildup in sales or a sales buildup ć tions regarding the consolidated financial There has been a buildup of complaints statements of listed companies business address / biznis ə dres/ noun business address about customer service. | built-in obsolescence / bilt in ɒbsə built-in obsolescence | the details of number, street, and city or les(ə)ns/ noun a method of ensuring con- town where a company is located business angel / biznis eind əl/ noun business angel tinuing sales of a product by making it in such a way that it will soon become obsolete a wealthy entrepreneurial individual who bulk buying / b lk baiiŋ/ noun the act of bulk buying invests money, usually less money than a buying large quantities of goods at low venture capitalist, in a company in return for prices equity and some control in that company business angel network / biznis business angel network bullet bond / bυlit bɒnd/ noun US a bullet bond Eurobond which is only redeemed when it is eind əl netw k/ noun a regional net- mature (NOTE: Bullet bonds are used in pay- work of business angels business centre / biznis sentə/ noun business centre ments between central banks and also act as currency backing.) the part of a town where the main banks, Bulletin des Annonces Légales Bulletin des Annonces Légales Obligatoires shops and offices are located business combination / biznis business combination Obligatoires / bυlət n deiz nɒns lei | | l ɒbli twɑ / noun in France, an offi- | kɒmbi neiʃ(ə)n/ noun the process in | cial bulletin in which companies make for- which one or more businesses become sub- mal announcements to shareholders as sidiaries of another business required by law. Abbreviation BALO business cycle / biznis saik(ə)l/ noun business cycle bullet loan / bυlit ləυn/ noun US a loan bullet loan the period during which trade expands, which is repaid in a single payment slows down and then expands again. Also bullion / bυliən/ noun a gold or silver bars bullion called trade cycle business day / biznis dei/ noun a week- business day ć A shipment of gold bullion was stolen from the security van. ć The price of bullion day when banks and stock exchanges are is fixed daily. open for business business entity concept / biznis business entity concept bumping / b mpiŋ/ noun US a lay-off bumping procedure that allows an employee with entiti kɒnsept/ noun the concept that greater seniority to displace a more junior financial accounting information relates employee ć The economic recession led to only to the activities of the business and not extensive bumping in companies where only to the activities of its owner(s) business expenses / biznis ik business expenses the most qualified were retained for some | jobs. ć The trade unions strongly objected spensiz/ plural noun money spent on run- to bumping practices since they considered ning a business, not on stock or assets
  • 38. Accounting.fm Page 32 Tuesday, February 13, 2007 1:40 PMbusiness hours 32 back.business hoursbusiness hours / biznis aυəz/ pluralnoun the time when a business is open, usu- buy in / bai in/ phrasal verb 1. (of a sellerally 9.00 a.m. to 5.30 p.m. at an auction) to buy the thing which you arebusiness intelligencebusiness intelligence / biznis in | trying to sell because no one will pay the telid (ə)ns/ noun information that may be price you want 2. to buy stock to cover a po-useful to a business when it is planning its sition 3. (of a company) to buy its ownstrategy shares buyback ‘…a system that enables its employees to buyback / baib k/ noun 1. a type of loan use cell phones to access the consulting agreement to repurchase bonds or securities firm’s business information database.’ at a later date for the same price as they are [InformationWeek] being sold 2. an international trading agree-business namebusiness name / biznis neim/ noun a ment where a company builds a factory in aname used by a company for trading pur- foreign country and agrees to buy all its pro-poses ductionbusiness planbusiness plan / biznis pl n/ noun a ‘…the corporate sector also continued todocument drawn up to show how a business return cash to shareholders in the form ofis planned to work, with cash flow forecasts, buy-backs, while raising little money insales forecasts, etc., often used when trying the form of new or rights issues’ [Finan-to raise a loan, or when setting up a new cial Times] buyerbusiness buyer / baiə/ noun 1. a person who buys 2.business property reliefbusiness property relief / biznis a person who buys stock on behalf of a trad- prɒpəti ri li f/ noun in the United King- | ing organisation for resale or for use in pro-dom, a reduction in the amount liable to duction buyer’s marketinheritance tax on certain types of business buyer’s market / baiəz mɑ kit/ noun aproperty market where products are sold cheaplybusiness ratepayerbusiness ratepayer / biznis reitpeiə/ because there are few people who want tonoun a business which pays local taxes on a buy them. Opposite seller’s marketshop, office, factory, etc. buying department buying department / baiiŋ di |business ratesbusiness rates / biznis reits/ plural pɑ tmənt/ noun the department in a com-noun in the United Kingdom, a tax on busi- pany which buys raw materials or goods fornesses calculated on the value of the prop- use in the company (NOTE: The US term iserty occupied. Although the rate of tax is set purchasing department.)by central government, the tax is collected buying power buying power / baiiŋ paυə/ noun anthe local authority. assessment of an individual’s or organiza-business reviewbusiness review / biznis ri vju / noun a | tion’s disposable income regarded as confer-report on business carried out over the past ring the power to make purchases ć Theyear. It forms part of the directors’ report. buying power of the dollar has fallen overbusiness segmentbusiness segment / biznis se mənt/ the last five years. buyoutnoun a section of a company which can be buyout / baiaυt/ noun the purchase of adistinguished from the rest of the company controlling interest in a companyby its own revenue and expenditure ‘…we also invest in companies whose growth and profitability could bebusiness transactionbusiness transaction / biznis tr n | z kʃən/ noun an act of buying or selling improved by a management buyout’business travel [Times]business travel / biznis tr v(ə)l/ nountravel costs incurred in the course of work, ‘…in a normal leveraged buyout, theas opposed to private travel or daily travel to acquirer raises money by borrowingyour usual place of work against the assets or cash flow of the targetbuy company’ [Fortune]buy /bai/ verb to get something by paying bylawmoney ć to buy wholesale and sell retail ć bylaw / bailɔ / noun a rule made by a localto buy for cash ć She bought 10,000 shares. authority or organisation, and not by centralć The company has been bought by its lead- government by-producting supplier. (NOTE: buying – bought) by-product / bai prɒd kt/ noun a sec-buy back / bai b k/ phrasal verb to buy ondary product made as a result of manufac-something which you sold earlier ć She sold turing a main product which can be sold forthe shop last year and is now trying to buy it profit
  • 39. Accounting.fm Page 33 Tuesday, February 13, 2007 1:40 PM C CA abbreviation chartered accountant back to work after his or her usual working CA c/a abbreviation capital account c/a hours called up capital / kɔ ld p k pit(ə)l/ called up capital C/A abbreviation current account C/A noun share capital in a company which has calculate / k lkjυleit/ verb 1. to find the calculate been called up. The share capital becomes answer to a problem using numbers ć The fully paid when all the authorised shares bank clerk calculated the rate of exchange have been called up. for the dollar. 2. to estimate ć I calculate ‘…a circular to shareholders highlights that we have six months’ stock left. that the company’s net assets as at August calculation / k lkjυ leiʃ(ə)n/ noun the calculation | 1, amounted to £47.9 million – less than answer to a problem in mathematics ć half the company’s called-up share capital According to my calculations, we have six of £96.8 million. Accordingly, an EGM months’ stock left. ˽ we are £20,000 out in has been called for October 7’ [Times] our calculations we have made a mistake in call-in pay / kɔ l in pei/ noun payment call-in pay our calculations and arrived at a figure guaranteed to employees who report for which is £20,000 too much or too little work even if there is no work for them to do calendar variance / k lində veəriəns/ calendar variance ć Call-in pay is often necessary to ensure noun variance which occurs if a company the attendance of employees where there is uses calendar months for the financial at least the possibility of work needing to be accounts but uses the number of actual done. call loan / kɔ l ləυn/ noun a bank loan call loan working days to calculate overhead expenses in the cost accounts repayable at call call money / kɔ l m ni/ noun money call money calendar year / k lində jiə/ noun a calendar year year from the 1st January to 31st December loaned for which repayment can be demanded without notice. Also called call /kɔ l/ noun 1. a demand for repayment call money at call, money on call of a loan by a lender 2. a demand to pay for call option / kɔ l ɒpʃən/ noun an option call option new shares which then become paid up í verb to ask for a loan to be repaid immedi- to buy shares at a future date and at a specific ately price. Also called call call price / kɔ l prais/ noun a price to be call price call in / kɔ l in/ phrasal verb 1. to visit ć Their sales representative called in twice paid on redemption of a US bond call provision / kɔ l prə vi (ə)n/ noun a call provision last week. 2. to ask for a debt to be paid | call up / kɔ l p/ phrasal verb to ask for clause that allows a bond to be redeemed share capital to be paid before its maturity date call purchase / kɔ l p tʃis/, call sale call purchase callable bond / kɔ ləb(ə)l bɒnd/ noun a callable bond bond which can be redeemed before it / kɔ l seil/ noun a transaction where the matures seller or purchaser can fix the price for future delivery callable capital / kɔ ləb(ə)l k pit(ə)l/ callable capital calls in arrear / kɔ ls in ə riə/ plural calls in arrear | noun the part of a company’s capital which noun money called up for shares, but not has not been called up paid at the correct time and a special calls in call account / kɔ l ə kaυnt/ noun a type call account | arrear account is set up to debit the sums of current account where money can be owing withdrawn without notice Canadian Institute of Chartered Canadian Institute of Chartered Accountants call-back pay / kɔ l b k pei/ noun pay Accountants /kə neidiən institju t əv call-back pay | given to an employee who has been called tʃɑ təd ə kaυntənts/ noun in Canada, the |
  • 40. Accounting.fm Page 34 Tuesday, February 13, 2007 1:40 PMcap 34principal professional accountancy body company with $10,000 capital or with a cap-that is responsible for setting accounting ital of $10,000 2. money owned by individ-standards. Abbreviation CICA uals or companies, which they use forcap /k p/ noun 1. an upper limit placed oncap investmentsomething, such as an interest rate. The capital account / k pit(ə)l ə kaυnt/ capital account |opposite, i.e. a lower limit, is a ‘floor’). 2. noun 1. an account that states the value ofsame as capitalisation (informal) ć Last funds and assets invested in a business byyear the total market cap of all the world’s the owners or shareholders 2. the portion ofgold companies fell from $71 billion to $46 a country’s balance of payments that refersbillion. í verb to place an upper limit on to investments, rather than to the buying andsomething ć to cap a department’s budget selling of merchandise 3. a statement of the(NOTE: capping – capped) net worth of an organization at a given timeCAPA noun a large association of account- capital adequacy / k pit(ə)lCAPA capital adequacyancy bodies that operate in Asia and the dikwəsi/, capital adequacy ratioPacific Rim countries. Full form Confeder- / k pit(ə)l dikwəsi reiʃiəυ/ noun theation of Asian and Pacific Accountants amount of money which a bank has to havecapacity /kə p siti/ noun 1. the amountcapacity | in the form of shareholders’ capital, shownwhich can be produced, or the amount of as a percentage of its assets. Also calledwork which can be done ć industrial or capital-to-asset ratio (NOTE: The amountmanufacturing or production capacity 2. the is internationally agreed at 8%.)amount of space ˽ to use up spare or excess capital allowances / k pit(ə)l ə capital allowances |capacity to make use of time or space which laυənsiz/ plural noun the allowances basedis not fully used 3. ability ć She has a par- on the value of fixed assets which may beticular capacity for detailed business deals deducted from a company’s profits and sowith overseas companies. reduce its tax liability ‘…analysts are increasingly convinced capital appreciation / k pit(ə)l ə capital appreciation | that the industry simply has too much pri ʃi eiʃ(ə)n/ noun same as appreciation | capacity’ [Fortune] capital asset pricing capital asset pricing model modelcapacity costs /kə p siti kɒsts/ pluralcapacity costs | / k pit(ə)l set praisiŋ mɒd(ə)l/ nounnoun costs incurred to allow a company or an equation that shows the relationshipproduce more goods or services, e.g. the between expected risk and expected returnpurchase of machinery or buildings on an investment and serves as a model forcapacity management /kə p siti valuing risky securities. Abbreviationcapacity management | m nid mənt/ noun management of the CAPMcost of a company’s unused capacity, which capital assets / k pit(ə)l sets/ plural capital assetsdoes not rightly influence pricing noun the property, machines, and othercapacity requirements planning /kə assets which a company owns and uses butcapacity requirements planning | p siti ri kwaiəmənts pl niŋ/ noun | which it does not buy and sell as part of itsplanning that determines how much machin- regular trade. Also called fixed assetsery and equipment is needed in order to meet capital base / k pit(ə)l beis/ noun the capital baseproduction targets capital structure of a company (sharehold-capacity usage variance /kə p siti ers’ capital plus loans and retained profits)capacity usage variance | ju sid veəriəns/ noun the difference in used as a way of assessing the company’sgain or loss in a given period compared to worthbudgeted expectations, caused because the capital bonus / k pit(ə)l bəυnəs/ noun capital bonushours worked were longer or shorter than an extra payment by an insurance companyplanned which is produced by a capital gaincapacity variance /kə p siti veəriəns/capacity variance capital budget / k pit(ə)l b d it/ noun capital budget |noun variance caused by the difference a budget for planned purchases of fixedbetween planned and actual hours worked assets during the next budget periodCaparo case /kə pɑ rəυ keis/ noun inCaparo case capital budgeting / k pit(ə)l capital budgeting | |England, a court decision taken by the b d itiŋ/ noun the process of deciding onHouse of Lords in 1990 that auditors owe a specific investment projects, the amount ofduty of care to present (not prospective) expenditure to commit to them and how theshareholders as a body but not as individuals finance will be raisedCAPEX abbreviation capital expenditureCAPEX capital commitments / k pit(ə)l kə capital commitments |capital / k pit(ə)l/ noun 1. the money, mitmənts/ plural noun expenditure oncapitalproperty, and assets used in a business ć a assets which has been authorised by direc-
  • 41. Accounting.fm Page 35 Tuesday, February 13, 2007 1:40 PM 35 capitalism tors, but not yet spent at the end of a finan- capital goods / k pit(ə)l υdz/ plural capital goods cial period noun machinery, buildings, and raw materi- capital consumption / k pit(ə)l kən capital consumption | als which are used to make other goods s mpʃ(ə)n/ noun in a given period, the capital inflow / k pit(ə)l infləυ/ noun capital inflow total depreciation of a national economy’s the movement of capital into a country by fixed assets based on replacement costs buying shares in companies, buying whole capital costs / k pit(ə)l kɒsts/ plural companies or other forms of investment capital costs noun expenses on the purchase of fixed capital-intensive industry / k pit(ə)l capital-intensive industry assets in tensiv indəstri/ noun an industry | capital deepening / k pit(ə)l capital deepening which needs a large amount of capital di pəniŋ/ noun increased investment of investment in plant to make it work capital in a business, without changing other capital investment / k pit(ə)l in capital investment | factors of production. Also called capital vestmənt/ noun same as capital expendi- widening ture capital employed / k pit(ə)l im plɔid/ capital employed capital investment appraisal capital investment appraisal | noun an amount of capital consisting of / k pit(ə)l in vestmənt ə preiz(ə)l/ noun | | shareholders’ funds plus the long-term debts an analysis of the future profitability of cap- of a business. ı return on assets ital purchases as an aid to good management capital equipment / k pit(ə)l i capital equipment capitalisation / k pit(ə)lai zeiʃ(ə)n/, capitalisation | | kwipmənt/ noun equipment which a fac- capitalization noun the value of a company tory or office uses to work calculated by multiplying the price of its capital expenditure / k pit(ə)l ik capital expenditure | shares on the stock exchange by the number spenditʃə/ noun money spent on fixed of shares issued. Also called market capi- assets such as property, machines and furni- talisation ture. Also called capital investment, capi- ‘…she aimed to double the company’s tal outlay. Abbreviation CAPEX market capitalization’ [Fortune] capital expenditure budget capital expenditure budget capitalisation issue / k pitəlai capitalisation issue / k pit(ə)l ik spenditʃə b d it/ noun a | | zeiʃ(ə)n iʃu / noun same as bonus issue budget for planned purchases of fixed assets capitalisation of costs capitalisation of costs during the budget period / k pit(ə)laizeiʃ(ə)n əv kɒsts/ noun the capital flight / k pit(ə)l flait/ noun the capital flight rapid movement of capital out of a country act of including costs usually charged to the because of lack of confidence in that coun- profit and loss account in the balance sheet. try’s economic future in response to political The effect is that profits are higher than if unrest, war or other conditions. Also called such costs are matched with revenues in the flight of capital same accounting period. capitalisation of earnings capitalisation of earnings capital gain / k pit(ə)l ein/ noun an capital gain amount of money made by selling a fixed / k pitəlaizeiʃ(ə)n əv niŋz/ noun a asset or certain other types of property, such method of valuing a business according to as shares, works of art, leases etc. Opposite its expected future profits capitalise / k pit(ə)laiz/, capitalize capitalise capital loss capital gains expenses / k pit(ə)l capital gains expenses verb 1. to invest money in a working com- einz ik spensiz/ plural noun expenses | pany ˽ the company is capitalised at incurred in buying or selling assets, which £10,000 the company has a working capital can be deducted when calculating a capital of £10,000 2. to convert reserves or assets gain or loss into capital capital gains tax / k pit(ə)l einz capital gains tax ‘…at its last traded price the bank was cap- t ks/ noun a tax on the difference between italized at around $1.05 billion with 60 per the gross acquisition cost and the net pro- cent in the hands of the family’ [South ceeds when an asset is sold. In the United China Morning Post] Kingdom, this tax also applies when assets capitalise on phrasal verb to make a profit are given or exchanged, although each indi- from ć We are seeking to capitalise on our vidual has an annual capital gains tax allow- market position. capitalism / k pit(ə)liz(ə)m/ noun the capitalism ance that exempts gains within that tax year below a stated level. In addition, certain economic system in which each person has assets may be exempt, e.g., a person’s prin- the right to invest money, to work in busi- cipal private residence and transfers of ness, and to buy and sell, with no restrictions assets between spouses. Abbreviation CGT from the state
  • 42. Accounting.fm Page 36 Tuesday, February 13, 2007 1:40 PMcapitalist 36capitalist / k pit(ə)list/ adjective work-capitalist changing the capital structure of a companying according to the principles of capitalism by amalgamating or dividing existing sharesć the capitalist system ć the capitalist coun- to form shares of a higher or lower nominaltries or world valuecapitalist economy / k pit(ə)list i capital reserves / k pit(ə)l ri z vz/capitalist economy capital reserves | | kɒnəmi/ noun an economy in which each plural noun 1. money from profits, whichperson has the right to invest money, to work forms part of the capital of a company andin business, and to buy and sell, with no can be used for distribution to shareholdersrestrictions from the state only when a company is wound up. Alsocapital lease / k pit(ə)l li s/ noun acapital lease called undistributable reserves 2. thelease that gives the lessee substantial prop- share capital of a company which comeserty rights from selling assets and not from their usualcapital levy / k pit(ə)l levi/ noun a taxcapital levy trading capital shares / k pit(ə)l ʃeəz/ plural capital shareson the value of a person’s property and pos-sessions noun (on the Stock Exchange) shares in acapital loss / k pit(ə)l lɒs/ noun a losscapital loss unit trust which rise in value as the capitalmade by selling assets. Opposite capital value of the units rises, but do not receivegain any income (NOTE: The other form of sharescapital maintenancecapital maintenance concept concept in a split-level investment trust are income/ k pit(ə)l meintənəns kɒnsept/ noun a shares, which receive income from theconcept used to determine the definition of investments, but do not rise in value.) capital stock / k pit(ə)l stɒk/ noun 1. capital stockprofit, that provides the basis for differentsystems of inflation accounting the amount of money raised by a companycapital market / k pit(ə)l mɑ kit/capital market through the sale of shares, entitling holdersnoun an international market where money to dividends, some rights of ownership andcan be raised for investment in a business other benefits 2. the face value of the sharecapital outlay / k pit(ə)l aυtlei/ nouncapital outlay capital that a company issues capital structure / k pit(ə)l str ktʃə/ capital structuresame as capital expenditurecapital profit / k pit(ə)l prɒfit/ noun acapital profit noun the relative proportions of equity capi-profit made by selling an asset tal and debt capital within a company’s bal- ance sheetcapital project / k pit(ə)l prɒd ekt/capital project capital surplus / k pit(ə)l s pləs/ capital surplusnoun a large-scale and complex project,often involving construction or engineering noun the total value of shares in a companywork, in which an organisation spends part that exceeds the par value capital tax / k pit(ə)l t ks/ noun a tax capital taxof its financial resources on creating capac-ity for production levied on the capital owned by a company,capital ratio / k pit(ə)l reiʃiəυ/ nouncapital ratio rather than on its spending. ı capital gainssame as capital adequacy tax capital-to-asset ratio / k pit(ə)l tυ capital-to-asset ratiocapital rationing / k pit(ə)lcapital rationing r ʃ(ə)niŋ/ noun restrictions on capital set reiʃiəυ/, capital/asset ratio nouninvestment, the result either of the internal same as capital adequacy capital transactions / k pit(ə)l tr n capital transactionsimposition of a budget ceiling or of external |limitations such as the fact that additional z kʃ(ə)nz/ plural noun transactions affect-borrowing is not available ing non-current items such as fixed assets,capital reconstruction / k pit(ə)lcapital reconstruction long-term debt or share capital, rather than ri kən str kʃən/ noun the act of putting a | revenue transactions capital transfer tax / k pit(ə)l capital transfer taxcompany into voluntary liquidation and thenselling its assets to another company with tr nsf t ks/ noun in the United King-the same name and same shareholders, but dom, a tax on the transfer of assets that waswith a larger capital base replaced in 1986 by inheritance tax capital turnover ratio / k pit(ə)l capital turnover ratiocapital redemptioncapital redemption reserve reserve/ k pit(ə)l ri dempʃən ri z v/ noun an | | t nəυvə reiʃiəυ/ noun turnover dividedaccount required to prevent a reduction in by average capital during the year capital widening / k pit(ə)l capital wideningcapital, where a company purchases orredeems its own shares out of distributable waid(ə)niŋ/ noun same as capital deep-profits eningcapital reorganisation / k pit(ə)l ri CAPM abbreviation capital asset pricingcapital reorganisation CAPM | ɔ ənai zeiʃ(ə)n/ noun the process of | model
  • 43. Accounting.fm Page 37 Tuesday, February 13, 2007 1:40 PM 37 cash budget capped floating rate note / k pt profit from ć The company is cashing in on capped floating rate note fləυtiŋ reit nəυt/ noun a floating rate the interest in computer games. note which has an agreed maximum rate cash out phrasal verb US same as cash up captive market / k ptiv mɑ kit/ noun captive market cash up / k ʃ p/ phrasal verb to add up a market where one supplier has a monopoly the cash in a shop at the end of the day and the buyer has no choice over the product cashable / k ʃəb(ə)l/ adjective able to be cashable which he or she must purchase cashed ć A crossed cheque is not cashable carriage / k rid / noun the transporting at any bank. carriage of goods from one place to another ć to pay cash account / k ʃ ə kaυnt/ noun an cash account | for carriage account which records the money which is carriage forward / k rid fɔ wəd/ received and spent carriage forward noun a deal where the customer pays for cash accounting / k ʃ ə kaυntiŋ/ noun cash accounting | transporting the goods 1. an accounting method in which receipts carriage free / k rid fri / noun a deal carriage free and expenses are recorded in the accounting where the customer does not pay for the books in the period when they actually occur shipping 2. in the United Kingdom, a system for carriage inwards / k rid inwədz/ carriage inwards Value Added Tax that enables the tax payer noun delivery expenses incurred through the to account for tax paid and received during a purchase of goods given period, thus allowing automatic relief carriage outwards / k rid aυtwədz/ carriage outwards for bad debts cash advance / k ʃ əd vɑ ns/ noun a cash advance noun delivery expenses incurred through the | sale of goods loan in cash against a future payment carriage paid / k rid peid/ noun a cash and carry / k ʃ ən k ri/ noun 1. carriage paid cash and carry deal where the seller has paid for the ship- a large store selling goods at low prices, ping where the customer pays cash and takes the carry / k ri/ noun the cost of borrowing to carry goods away immediately ć We get our sup- finance a deal plies every morning from the cash and carry. carry back / k ri b k/ phrasal verb to 2. the activity of buying a commodity for take back to an earlier accounting period cash and selling the same commodity on the carry down / k ri daυn/, carry forward futures market / k ri fɔ wəd/ phrasal verb to take an ac- ‘…the small independent retailer who count balance at the end of the current peri- stocks up using cash and carries could be od as the starting point for the next period hit hard by the loss of footfall associated carry forward / k ri fɔ wəd/ phrasal verb with any increase in smuggled goods’ [The to take an account balance at the end of the Grocer] cash at bank / k ʃ ət b ŋk/ noun the cash at bank current period or page as the starting point for the next period or page total amount of money held at the bank by an carrying cost / k riiŋ kɒst/ noun any carrying cost individual or company cashback / k ʃb k/ noun a discount sys- cashback expense associated with holding stock for a given period, e.g., from the time of delivery tem where a purchaser receives a cash dis- to the time of dispatch. Carrying costs will count on the completion of the purchase include storage and insurance. ‘… he mentioned BellSouth’s DSL offer carrying value / k riiŋ v lju / noun carrying value of $75 a month, plus a one-month cash- same as book value back rebate.’ [BusinessWeek] carry-over / k ri əυvə/ noun the stock of cash balance / k ʃ b ləns/ noun a bal- carry-over cash balance a commodity held at the beginning of a new ance that represents cash alone, as distinct financial year from a balance that includes money owed cartel /kɑ tel/ noun a group of companies cartel | but as yet unpaid cash basis / k ʃ beisis/ noun a method cash basis which try to fix the price or to regulate the supply of a product so that they can make of preparing the accounts of a business, more profit where receipts and payments are shown at cash /k ʃ/ noun 1. money in the form of cash the time when they are made, as opposed to coins or notes 2. the using of money in coins showing debts or credits which are outstand- or notes í verb ˽ to cash a cheque to ing at the end of the accounting period. Also exchange a cheque for cash called receipts and payments basis cash in / k ʃ in/ phrasal verb to sell cash budget / k ʃ b d it/ noun a plan cash budget shares or other property for cash of cash income and expenditure. Also called cash in on / k ʃ in ɒn/ phrasal verb to cash-flow budget
  • 44. Accounting.fm Page 38 Tuesday, February 13, 2007 1:40 PMcash card 38cash card / k ʃ kɑ d/ noun a plastic card cash-flow statement / k ʃ fləυcash card cash-flow statementused to obtain money from a cash dispenser steitmənt/ noun a record of a company’scash cow / k ʃ kaυ/ noun a product orcash cow cash inflows and cash outflows over a spe-subsidiary company that consistently gener- cific period of time, typically a yearates good profits but does not provide cash-flow-to-total-debt ratio / k ʃ cash-flow-to-total-debt ratiogrowth fləυ tə det reiʃiəυ/ noun a ratio that indi-cash discount / k ʃ diskaυnt/ noun acash discount cates a company’s ability to pay its debts,discount given for payment in cash. Also often used as an indicator of bankruptcycalled discount for cash cash fraction / k ʃ fr kʃən/ noun a cash fractioncash dispenser / k ʃ di spensə/ noun a small amount of cash paid to a shareholdercash dispenser |machine which gives out money when a spe- to make up the full amount of part of a sharecial card is inserted and instructions given which has been allocated in a share splitcash dividend / k ʃ dividend/ noun a cash-generating unit cash-generating unit /k ʃcash dividenddividend paid in cash, as opposed to a divi- d enəreitiŋ ju nit/ noun the smallestdend in the form of bonus shares identifiable group of assets that generatescash economy / k ʃ i kɒnəmi/ noun acash economy | cash inflows and outflows that can be meas-black economy, where goods and services uredare paid for in cash, and therefore not cashier /k ʃiə/ noun 1. a person who cashier |declared for tax takes money from customers in a shop orcash equivalent / k ʃ i kwivələnt/cash equivalent | who deals with the money that has been paidnoun 1. an amount of money that can be 2. a person who deals with customers in arealised immediately by selling an asset 2. a bank and takes or gives cash at the countersafe and highly liquid financial instrument cashier’s check /k ʃiəz tʃek/ noun cashier’s check |such as a Treasury bill US a bank’s own cheque, drawn on itself andcash equivalents / k ʃ i kwivələnts/cash equivalents | signed by a cashier or other bank officialnoun short-term investments that can be cash inflow / k ʃ infləυ/ noun receipts cash inflowconverted into cash immediately and that are of cash or chequessubject to only a limited risk. There is usu- cash items / k ʃ aitəmz/ plural noun cash itemsally a limit on their duration, e.g., three goods sold for cashmonths. cashless society / k ʃləs sə saiəti/ cashless societycash float / k ʃ fləυt/ noun cash put intocash float | noun a society where no one uses cash, allthe cash box at the beginning of the day or purchases being made by credit cards,week to allow change to be given to custom- charge cards, cheques or direct transfer fromers one account to anothercash flow / k ʃ fləυ/ noun cash whichcash flow cash limit / k ʃ limit/ noun 1. a fixed cash limitcomes into a company from sales (cash amount of money which can be spent duringinflow) or the money which goes out in pur- some period 2. a maximum amount some-chases or overhead expenditure (cash out- one can withdraw from an ATM using a cashflow) cardcash-flow accounting / k ʃ fləυ əcash-flow accounting cash offer / k ʃ ɒfə/ noun an offer to | cash offer kaυntiŋ/ noun the practice of measuringthe financial activities of a company in terms pay in cash, especially an offer to pay cashof cash receipts and payments, without when buying shares in a takeover bid cash outflow / k ʃ aυtfləυ/ noun cash outflowrecording accruals, prepayments, debtors,creditors and stocks expenditure in cash or cheques cash payment / k ʃ peimənt/ noun cash paymentcash-flow budget / k ʃ fləυ b d it/cash-flow budgetnoun same as cash budget payment in cash cash payments journal / k ʃ cash payments journalcash-flow forecast / k ʃ fləυcash-flow forecast fɔ kɑ st/ noun a forecast of when cash will peimənts d n(ə)l/ noun a chronologicalbe received or paid out record of all the payments that have beencash-flow ratio / k ʃ fləυ reiʃiəυ/cash-flow ratio made from a company’s bank account cash position / k ʃ pə ziʃ(ə)n/ noun a cash positionnoun a ratio that shows the level of cash in a |business in relation to other assets and the state of the cash which a company currentlyuse of cash in the activities of the business has availablecash-flow risk / k ʃ fləυ risk/ noun the cash price / k ʃ prais/ noun 1. a lowercash-flow risk cash pricerisk that a company’s available cash will not price or better terms which apply if the cus-be sufficient to meet its financial obligations tomer pays cash 2. same as spot price
  • 45. Accounting.fm Page 39 Tuesday, February 13, 2007 1:40 PM 39 certificate of deposit cash purchase / k ʃ p tʃis/ noun a ceiling / si liŋ/ noun the highest point that cash purchase ceiling purchase made for cash something can reach, e.g. the highest rate of cash receipts journal / k ʃ ri si ts cash receipts journal | a pay increase ć to fix a ceiling for a budget d n(ə)l/ noun a chronological record of ć There is a ceiling of $100,000 on deposits. all the receipts that have been paid into a ć Output reached its ceiling in June and has company’s bank account since fallen back. ć What ceiling has the cash register / k ʃ red istə/ noun a cash register government put on wage increases this machine which shows and adds the prices of year? central bank / sentrəl b ŋk/ noun the central bank items bought, with a drawer for keeping the cash received main government-controlled bank in a coun- cash reserves / k ʃ ri z vz/ plural cash reserves | try, which controls that country’s financial noun a company’s reserves in cash deposits affairs by fixing main interest rates, issuing or bills kept in case of urgent need ć The currency, supervising the commercial banks company was forced to fall back on its cash and trying to control the foreign exchange reserves. rate central bank discount rate / sentrəl central bank discount rate cash sale / k ʃ seil/ noun a transaction cash sale paid for in cash b ŋk diskaυnt reit/ noun the rate at cash surrender value / k ʃ sə rendə cash surrender value | which a central bank discounts bills such as v lju / noun the amount of money that an Treasury bills central bank intervention / sentrəl central bank intervention insurance company will pay a policyholder who chooses to terminate a policy before the b ŋk intə venʃ(ə)n/ noun an action by a | maturity date central bank to change base interest rates, to cash terms / k ʃ t mz/ plural noun cash terms impose exchange controls or to buy or sell lower terms which apply if the customer the country’s own currency in an attempt to pays cash influence international money markets central government / sentrəl central government cash-to-current-liabilities ratio / k ʃ cash-to-current-liabilities ratio tə k rənt laiə bilitiz reiʃiəυ/ noun a | v(ə)nmənt/ noun the main government ratio that indicates a company’s ability to of a country as opposed to municipal, local, pay its short-term debts, often used as an provincial or state governments centralise / sentrəlaiz/ verb to organise centralise indicator of liquidity cash transaction / k ʃ tr n z kʃən/ cash transaction | from a central point ć All purchasing has noun a transaction paid for in cash, as dis- been centralised in our main office. ć The tinct from a transaction paid for by means of company has become very centralised, and a transfer of a financial instrument far more staff work at headquarters. central purchasing / sentrəl central purchasing cash voucher / k ʃ vaυtʃə/ noun a cash voucher piece of paper which can be exchanged for p tʃisiŋ/ noun purchasing organised by a cash ć With every $20 of purchases, the cus- central office for all branches of a company tomer gets a cash voucher to the value of $2. centre / sentə/ noun a department, area or centre casting vote / kɑ stiŋ vəυt/ noun a vote casting vote function to which costs and/or revenues are used by the chairman in the case where the charged (NOTE: The US spelling is center.) votes for and against a proposal are equal ć CEO abbreviation chief executive officer CEO The chairman has the casting vote. ć She certain annuity / s t(ə)n ə nju iti/ certain annuity | used her casting vote to block the motion. noun an annuity which will be paid for a casual labour / k uəl leibə/ noun casual labour specific number of years only workers who are hired for a short period certificate /sə tifikət/ noun an official certificate | casual work / k uəl w k/ noun work casual work document carrying an official declaration by where the employees are hired only for a someone, and signed by that person short period certificated bankrupt /sə tifikeitid certificated bankrupt | casual worker / k uəl w kə/ noun an casual worker b ŋkr pt/ noun a bankrupt who has been employee who can be hired for a short discharged from bankruptcy with a certifi- period cate to show that he or she was not at fault CAT abbreviation certified accounting tech- CAT certificate of approval /sə tifikət əv ə certificate of approval | | nician pru v(ə)l/ noun a document showing that CCA abbreviation current cost accounting CCA an item has been approved officially CCAB abbreviation Consultative Commit- CCAB certificate of deposit /sə tifikət əv di certificate of deposit | | tee of Accountancy Bodies pɒzit/ noun a document from a bank show- CD abbreviation certificate of deposit CD ing that money has been deposited at a guar-
  • 46. Accounting.fm Page 40 Tuesday, February 13, 2007 1:40 PMcertificate of incorporation 40anteed interest rate for a certain period of cession cession / seʃ(ə)n/ noun the act of givingtime. Abbreviation CD up property to someone, especially a credi- ‘…interest rates on certificates of deposit tor may have little room to decline in August CFO CFO abbreviation chief financial officer as demand for funds from major city banks CGT is likely to remain strong. After delaying CGT abbreviation capital gains tax for months, banks are now expected to CH CH abbreviation Companies House issue a large volume of CDs. If banks issue chairman more CDs on the assumption that the offi- chairman / tʃeəmən/ noun 1. a person cial discount rate reduction will be who is in charge of a meeting ć Mr Howard delayed, it is very likely that CD rates will was chairman or acted as chairman 2. a per- be pegged for a longer period than son who presides over the board meetings of expected’ [Nikkei Weekly] a company ć the chairman of the board orcertificate of incorporation the company chairman ˽ the chairman’scertificate of incorporation /sə | report, the chairman’s statement an tifikət əv in kɔ pə reiʃ(ə)n/ noun a docu- annual report from the chairman of a com- | |ment issued by Companies House to showthat a company has been legally set up and pany to the shareholdersofficially registered ‘…the corporation’s entrepreneurial chair-certificate of origin man seeks a dedicated but part-time presi-certificate of origin /sə tifikət əv | dent. The new president will work a three- ɒrid in/ noun a document showing where day week’ [Globe and Mail (Toronto)]imported goods come from or were made Chamber of Commercecertificate of quality Chamber of Commerce / tʃeimbər əvcertificate of quality /sə tifikət əv | kɒm s/ noun an organisation of local busi- kwɒliti/ noun a certificate showing the ness people who work together to promotegrade of a soft commodity and protect common interest in tradecertificate of registrationcertificate of registration /sə tifikət | Chancellor of the Exchequer Chancellor of the Exchequerəv red i streiʃ(ə)n/ noun a document | / tʃɑ nsələr əv ði iks tʃekə/ noun the |showing that an item has been registered chief finance minister in the British govern-certificate to commence businesscertificate to commence business ment (NOTE: The US term is Secretary of/sə tifikət tə kə mens biznis/ noun a | | the Treasury.)document issued by the Registrar of Compa- change change /tʃeind / noun 1. money in coinsnies which allows a registered company to or small notes. ı exchange ˽ to give some-trade one change for £10 to give someone coinscertified accountantcertified accountant / s tifaid ə | or notes in exchange for a ten pound note 2. kaυntənt/ noun an accountant who has money given back by the seller, when thepassed the professional examinations and is buyer can pay only with a larger note or coina member of the Association of Certified than the amount asked ć She gave me theChartered Accountants (ACCA) wrong change. ć You paid the £5.75 billcertified accounting techniciancertified accounting technician with a £10 note, so you should have £4.25/ s tifaid ə kaυntiŋ tek niʃ(ə)n/ noun a | | change. 3. an alteration of the way some-person who has passed the first stage course thing is done or of the way work is carriedof the Association of Chartered Certified out ˽ change in accounting principlesAccountants (ACCA). Abbreviation CAT using a method to state a company’scertified chequecertified cheque / s tifaid tʃek/ noun accounts which is different from the methoda cheque which a bank says is good and will used in the previous accounts. This will havebe paid out of money put aside from the to be agreed with the auditors, and possiblypayer’s bank account with the Inland Revenue. í verb 1. ˽ tocertified public accountant change a £20 note to give someone smallercertified public accountant notes or coins in place of a £20 note 2. to/ s tifaid p blik ə kaυntənt/ noun US | give one type of currency for another ć tosame as chartered accountant change £1,000 into dollars ć We want tocertifycertify / s tifai/ verb to make an official change some traveller’s cheques.declaration in writing ć I certify that this is change in accounting estimate change in accounting estimatea true copy. ć The document is certified as a / tʃeind in ə kaυntiŋ estimət/ noun a |true copy. (NOTE: certifies – certifying – change in a major assumption or forecastcertified) underpinning a set of accounts, full disclo-cessationcessation /se seiʃ(ə)n/ noun the stopping | sure of which should be made in a financialof an activity or work statement
  • 47. Accounting.fm Page 41 Tuesday, February 13, 2007 1:40 PM 41 charity change machine / tʃeind mə ʃi n/ chargeable transfer / tʃɑ d əb(ə)l change machine chargeable transfer | noun a machine which gives small change tr nsf / noun in the United Kingdom, for a note or larger coin gifts that are liable to inheritance tax. Under channel / tʃ n(ə)l/ noun a means by channel UK legislation, individuals may gift assets which information or goods pass from one to a certain value during their lifetime with- place to another out incurring any liability to inheritance tax. CHAPS /tʃ ps/ noun an electronic, bank- CHAPS These are regular transfers out of income to-bank payment system that guarantees that do not affect the donor’s standard of liv- same-day payment. Compare BACS ing. Additionally, individuals may transfer up to £3,000 a year out of capital. Chapter 7 / tʃ ptə sevən/ noun a sec- Chapter 7 charge account / tʃɑ d ə kaυnt/ noun charge account tion of the US Bankruptcy Reform Act | 1978, which sets out the rules for liquida- US same as credit account (NOTE: The cus- tion, a choice available to individuals, part- tomer will make regular monthly payments nerships and corporations into the account and is allowed credit of a multiple of those payments.) Chapter 11 / tʃ ptə ten/ noun a section Chapter 11 charge and discharge accounting charge and discharge accounting of the US Bankruptcy Reform Act 1978, which allows a corporation to be protected / tʃɑ d ən distʃɑ d ə kaυntiŋ/ noun | from demands made by its creditors for a formerly, a bookkeeping system in which a period of time, while it is reorganised with a person charges himself or herself with view to paying its debts receipts and credits himself or herself with payments. This system was used extensively Chapter 13 / tʃ ptə θ r ti n/ noun a Chapter 13 | in medieval times before the advent of dou- section of the Bankruptcy Reform Act 1978, ble-entry bookkeeping. which allows a business to continue trading charge by way of legal mortgage charge by way of legal mortgage and to pay off its creditors by regular monthly payments over a period of time / tʃɑ d bai wei əv li (ə)l mɔ id / noun a way of borrowing money on the charge /tʃɑ d / noun 1. money which charge security of a property, where the mortgager must be paid, or the price of a service ć to signs a deed which gives the mortgagee an make no charge for delivery ć to make a interest in the property small charge for rental ć There is no charge charge card / tʃɑ d kɑ d/ noun a card charge card for this service or No charge is made for this service. 2. a guarantee of security for a loan, issued to customers by a shop, bank or other for which assets are pledged 3. a sum organisation, used to charge purchases to an deducted from revenue in the profit and loss account for later payment. ı credit card chargee /tʃɑ d i / noun a person who has chargee account í verb 1. to ask someone to pay for | services later 2. to ask for money to be paid the right to force a debtor to pay ć to charge $5 for delivery ć How much charges forward / tʃɑ d iz fɔ wəd/ charges forward does he charge? ˽ he charges £16 an hour plural noun charges which will be paid by he asks to be paid £16 for an hour’s work 3. the customer to take something as guarantee for a loan 4. charitable / tʃ ritəb(ə)l/ adjective bene- charitable to record an expense or other deduction fiting the general public as a charity from revenue in the profit and loss account charitable deductions / tʃ ritəb(ə)l charitable deductions chargeable / tʃɑ d əb(ə)l/ adjective able chargeable di d kʃ(ə)nz/ plural noun deductions from | to be charged ć repairs chargeable to the taxable income for contributions to charity occupier charitable purposes / tʃ ritəb(ə)l charitable purposes chargeable asset / tʃɑ d əb(ə)l set/ p pəsiz/ plural noun the purpose of sup- chargeable asset noun an asset which will produce a capital porting work done by a charitable organisa- gain when sold. Assets which are not tion, for which purpose money donated, or chargeable include your family home, cars, the value of services contributed, may be and some types of investments such as gov- offset against tax ernment stocks. charitable trust / tʃ ritəb(ə)l tr st/, charitable trust chargeable business asset charitable corporation / tʃ ritəb(ə)l chargeable business asset / tʃɑ d əb(ə)l biznis set/ noun an asset kɔ pə reiʃ(ə)n/ noun a trust which benefits | which is owned by a business and is liable to the public as a whole, which promotes edu- capital gains if sold cation or religion, which helps the poor or chargeable chargeable gains gains / tʃɑ d əb(ə)l which does other useful work einz/ plural noun gains made by selling an charity / tʃ riti/ noun an organisation charity asset such as shares, on which capital gains which offers free help or services to those in will be charged need ć Because the organisation is a charity
  • 48. Accounting.fm Page 42 Tuesday, February 13, 2007 1:40 PMcharity accounts 42it does not have to pay taxes. ć The charity institju t əv p blik fain ns ən ə |owes its success to clever marketing strate- kaυntənsi/ full form of CIPFAgies in its fund-raising. Chartered Institute of Taxation Chartered Institute of Taxationcharity accounts / tʃ riti ə kaυnts/ / tʃɑ təd institju t əv t k seiʃ(ə)n/charity accounts | |plural noun the accounting records of a char- noun in the United Kingdom, an organisa-itable institution, that include a statement of tion for professionals in the field of taxation,financial activities rather than a profit and formerly the Institute of Taxationloss account. In the United Kingdom, the charting / tʃɑ tiŋ/ noun the work of using chartingaccounts should conform to the require- charts to analyse information such as stockments stipulated in the Charities Act (1993). market trends and forecast future rises orCharity Commissioners / tʃ riti kəCharity Commissioners | falls miʃ(ə)nəz/ plural noun the UK body which chart of accounts / tʃɑ t əv ə kaυnts/ chart of accounts |governs charities and sees that they follow noun a detailed and ordered list of an organ-the law and use their funds for the purposes isation’s numbered or named accounts, pro-intended viding a standard list of account codes forchart /tʃɑ t/ noun a diagram displayingchart assets, liabilities, capital, revenue andinformation as a series of lines, blocks, etc. expensescharter / tʃɑ tə/ noun 1. a document giv-charter chattel mortgage / tʃ t(ə)l mɔ id / chattel mortgageing special legal rights to a group ć a shop- noun money lent against the security of anpers’ charter or a customers’ charter 2. US item purchased, but not against real estatein the US, a formal document incorporating chattels real / tʃ t(ə)lz riəl/ plural noun chattels realan organisation, company or educational leaseholdsinstitution cheap money / tʃi p m ni/ noun money cheap moneychartered / tʃɑ təd/ adjective 1. in the which can be borrowed at a low rate of inter-charteredUK, used to describe a company which has estbeen set up by charter, and not registered cheat /tʃi t/ verb to trick someone so that cheatunder the Companies Act ć a chartered he or she loses money ć He cheated thebank 2. in the US, used to describe an incor- Inland Revenue out of thousands of pounds.porated organisation, company or educa- ć She was accused of cheating clients whotional institution that has been set up by came to ask her for advice.charter check /tʃek/ verb 1. to stop or delay some- checkchartered accountant / tʃɑ təd ə thing ć to check the entry of contraband intochartered accountant | kaυntənt/ noun an accountant who has the country ć to check the flow of money outpassed the necessary professional examina- of a country 2. to examine or to investigatetions and is a member of the Institute of something ć to check that an invoice is cor-Chartered Accountants. Abbreviation CA rect ć to check and sign for goods ˽ sheChartered Association of CertifiedChartered Association of Certified Accountants checked the computer printout againstAccountants / tʃɑ təd ə səυsieiʃ(ə)n | the invoices she examined the printout andəv s tifaid ə kaυntənts/ noun the former | the invoices to see if the figures were thename of the Association of Chartered Certi- same 3. US to mark something with a sign tofied Accountants show that it is correct ć check the boxchartered bank / tʃɑ təd b ŋk/ noun achartered bank marked ‘R’ (NOTE: The UK term is tick.) checkable / tʃekəb(ə)l/ adjective US checkablebank which has been set up by governmentcharter, formerly used in England, but now referring to a deposit account on whichonly done in the USA and Canada checks can be drawncharteredchartered company company / tʃɑ təd checkbook / tʃekbυk/ noun US same as checkbook k mp(ə)ni/ noun a company which has cheque bookbeen set up by royal charter, and not regis- check card / tʃek kɑ d/ noun US same as check cardtered under the Companies Act cheque cardChartered Institute of ManagementChartered Institute of Management Accountants checking account / tʃekiŋ ə kaυnt/ checking account |Accountants / tʃɑ təd institju əv noun US same as current account 1 m nid mənt ə kaυntənts/ noun a UK | check routing symbol / tʃek ru tiŋ check routing symbolorganisation responsible for the education simbəl/ noun US a number shown on a USand training of management accountants cheque which identifies the Federal Reservewho work in industry, commerce, not-for- district through which the cheque will beprofit and public sector organisations cleared, similar to the UK ‘bank sort code’Chartered Institute of Public cheque /tʃek/ noun a note to a bank askingChartered Institute of Public Finance and Accountancy chequeFinance and Accountancy / tʃɑ təd them to pay money from your account to the
  • 49. Accounting.fm Page 43 Tuesday, February 13, 2007 1:40 PM 43 claim account of the person whose name is written acknowledged, paid or that payment has on the note ć a cheque for £10 or a £10 been received cheque (NOTE: The US spelling is check.) chose /tʃəυz/ phrase a French word chose cheque account / tʃek ə kaυnt/ noun cheque account | meaning ‘item’ or ‘thing’ same as current account chose in action / tʃəυz in kʃən/ noun chose in action cheque book / tʃek bυk/ noun a booklet cheque book the legal term for a personal right which can with new blank cheques (NOTE: The usual be enforced or claimed as if it were property, US term is checkbook.) e.g. a patent, copyright or debt cheque card / tʃek kɑ d/, cheque guar- cheque card chose in possession / tʃəυz in pə chose in possession | antee card / tʃek rən ti kɑ d/ noun a | zeʃ(ə)n/ the legal term for a physical thing plastic card from a bank which guarantees which can be owned, such as a piece of fur- payment of a cheque up to some amount, niture even if the user has no money in his account Christmas bonus / krisməs bəυnəs/ Christmas bonus cheque requisition / tʃek cheque requisition noun an extra payment made to staff at rekwiziʃ(ə)n/ noun an official note from a Christmas department to the company accounts staff chronological order / krɒnəlɒd ik(ə)l chronological order asking for a cheque to be written ɔ də/ noun the arrangement of records such cheque stub / tʃek st b/ noun a piece of cheque stub as files and invoices in order of their dates paper left in a cheque book after a cheque CICA abbreviation Canadian Institute of CICA has been written and taken out Chartered Accountants cheque to bearer / tʃek tə beərə/ noun cheque to bearer CIMA / si mə/ abbreviation Chartered CIMA a cheque with no name written on it, so that Institute of Management Accountants the person who holds it can cash it CIPFA noun a leading professional CIPFA chief executive / tʃi f i zekjυtiv/, chief executive | chief executive officer / tʃi f i zekjυtiv | accountancy body in the UK, specialising in ɒfisə/ noun the most important director in the public services. Full form Chartered Institute of Public Finance and Account- charge of a company. Abbreviation CEO ancy chief financial officer / tʃi f fai chief financial officer circularisation of debtors | circularisation of debtors n nʃəl ɒfisə/ noun an executive in charge of a company’s financial operations, report- / s kjυləraizeiʃ(ə)n əv detəz/ noun the ing to the CEO. Abbreviation CFO sending of letters by a company’s auditors to debtors in order to verify the existence and chief investment officer / tʃi f in chief investment officer | extent of the company’s assets vestmənt ɒfisə/ noun a senior manager circular letter of credit / s kjυlə circular letter of credit responsible for monitoring a company’s investment portfolio letər əv kredit/ noun a letter of credit sent to all branches of the bank which issues it chief operating officer /tʃi f chief operating officer circulating capital / s kjυleitiŋ circulating capital ɒpəreitiŋ ɒfisə/ noun a director in charge of all a company’s operations (same as a k pit(ə)l/ noun capital in the form of cash ‘managing director’). Abbreviation COO or debtors, raw materials, finished products Chief Secretary to the Treasury Chief Secretary to the Treasury and work in progress which a company / tʃi f sekrətri tə ðə tre (ə)ri/ noun a requires to carry on its business circulation of capital / s kjυleiʃ(ə)n circulation of capital government minister responsible to the Chancellor of the Exchequer for the control əv k pit(ə)l/ noun a movement of capital of public expenditure (NOTE: In the USA, from one investment to another City Panel on Takeovers and Merg- City Panel on Takeovers and Mergers this is the responsibility of the Director of the Budget.) ers / siti p n(ə)l ɒn teikəυvəz ən Chinese walls / tʃaini z wɔ lz/ plural Chinese walls m d əz/ noun same as Takeover Panel civil action / siv(ə)l kʃən/ noun a court civil action noun imaginary barriers between depart- ments in the same organisation, set up to case brought by a person or a company avoid insider dealing or conflict of interest. against someone who has done them wrong For example, if a merchant bank is advising claim /kleim/ noun an act of asking for claim on a planned takeover bid, its investment something that you feel you have a right to department should not know that the bid is í verb 1. to ask for money, especially from taking place, or they would advise their cli- an insurance company ć He claimed ents to invest in the company being taken £100,000 damages against the cleaning over. firm. ć She claimed for repairs to the car chop /tʃɒp/ noun a mark made on a docu- against her insurance policy. 2. to say that chop ment to show that it has been agreed, you have a right to something or that some-
  • 50. Accounting.fm Page 44 Tuesday, February 13, 2007 1:40 PMclaim form 44thing is your property ć She is claiming pos- clawback / klɔ b k/ noun 1. money taken clawbacksession of the house. ć No one claimed the back, especially money taken back by theumbrella found in my office. 3. to state that government from grants or tax concessionssomething is a fact ć He claims he never which had previously been made 2. the allo-received the goods. ć She claims that the cation of new shares to existing sharehold-shares are her property. ers, so as to maintain the value of their hold-claim form / kleim fɔ m/ noun a formclaim form ingswhich has to be filled in when making an clean float / kli n fləυt/ noun an act of clean floatinsurance claim floating a currency freely on the interna-claims department / kleimz diclaims department | tional markets, without any interference pɑ tmənt/ noun a department of an insur- from the government clean opinion / kli n ə pinjən/, clean clean opinionance company which deals with claims |claims manager / kleimz m nid ə/claims manager report / kli n ri pɔ t/ noun an auditor’s |noun the manager of a claims department report that is not qualified clearance certificate / kliərəns sə clearance certificateclassical system of corporation taxclassical system of corporation tax |/ kl sik(ə)l sistəm əv kɔ pə reiʃ(ə)n | tifikət/ noun a document showing that t ks/ noun a system in which companies goods have been passed by customs clearance sale / kliərəns seil/ noun a clearance saleand their owners are liable for corporationtax as separate entities. A company’s taxed sale of items at low prices to get rid of stockincome is therefore paid out to shareholders clearing / kliəriŋ/ noun 1. ˽ clearing of a clearingwho are in turn taxed again. This system debt paying all of a debt 2. ˽ clearing ofoperates in the United States and the Nether- goods through customs passing of goodslands. It was replaced in the United King- through customs 3. an act of passing of adom in 1973 by an imputation system. cheque through the banking system, trans-classification of assets ferring money from one account to anotherclassification of assets/ kl sifikeiʃ(ə)n əv sets/ noun the proc- clearing account / kliəriŋ ə kaυnt/ clearing account |ess of listing a company’s assets under noun a temporary account containingappropriate categories amounts to be transferred to other accountsclassification ofclassification of liabilities liabilities at a later date/ kl sifikeiʃ(ə)n əv laiə bilitiz/ noun the | clearing agency / kliəriŋ eid ənsi/ clearing agencyprocess of classifying liabilities by the date noun US central office where stockor period when they are due exchange or commodity exchange transac-classified stock / kl sifaid stɒk/ nounclassified stock tions are settled (NOTE: The UK term isa company’s common stock when it is clearing house.)divided into categories clearing bank / kliəriŋ b ŋk/ noun a clearing bankclassify / kl sifai/ verb to put into classesclassify bank which clears cheques, especially oneor categories according to specific charac- of the major UK High Street banks, special-teristics (NOTE: classifies – classifying – ising in usual banking business for ordinaryclassified) customers, such as loans, cheques, over-class of assets / klɑ s əv sets/ nounclass of assets drafts and interest-bearing deposits clearing house / kliəriŋ haυs/ noun a clearing housethe grouping of similar assets into catego-ries. This is done because under Interna- central office where clearing bankstional Accounting Standards Committee exchange cheques, or where stock exchangerules, tangible assets and intangible assets or commodity exchange transactions are set-cannot be revalued on an individual basis, tledonly for a class of assets. Clearing House Automated Pay- Clearing House Automated Payments Systemclause /klɔ z/ noun a section of a contractclause ments System / kliəriŋ haυsć There are ten clauses in the contract of ɔ təmeitid peimənts sistəm/ noun fullemployment. ć There is a clause in this con- form of CHAPStract concerning the employer’s right to dis- clearing system / kliəriŋ sistəm/ noun clearing systemmiss an employee. í verb to list details of the system of processing payments usingthe relevant parties to a bill of exchange phone and internet, operated in the UK byclaw back / klɔ b k/ verb to take backclaw back the Association for Payment Clearing Serv-money which has been allocated ć Income ices, an organisation owned by 39 majortax claws back 25% of pensions paid out by banks and building societiesthe government. ć Of the £1m allocated to clear profit / kliə prɒfit/ noun a profit clear profitthe project, the government clawed back after all expenses have been paid ć We made£100,000 in taxes. $6,000 clear profit on the deal.
  • 51. Accounting.fm Page 45 Tuesday, February 13, 2007 1:40 PM 45 co-creditor clerical error / klerik(ə)l erə/ noun a closely held / kləυsli held/ adjective clerical error closely held mistake made by someone doing office work referring to shares in a company which are client / klaiənt/ noun a person with whom client controlled by only a few shareholders business is done or who pays for a service ć close off / kləυz ɒf/ verb to come to the close off One of our major clients has defaulted on end of an accounting period and make up the her payments. profit and loss account client account / klaiənt ə kaυnt/ noun a closing / kləυziŋ/ adjective 1. final or client account closing | bank account opened by a solicitor or estate coming at the end 2. at the end of an agent to hold money on behalf of a client accounting period ć At the end of the quar- clientele / kli ɒn tel/ noun all the clients clientele ter the bookkeeper has to calculate the clos- ing balance. í noun ˽ the closing of an | of a business or all the customers of a shop close /kləυz/ verb 1. ˽ to close the close account the act of stopping supply to a cus- accounts to come to the end of an account- tomer on credit closing balance / kləυziŋ b ləns/ closing balance ing period and make up the profit and loss account 2. to bring something to an end ˽ noun the balance at the end of an accounting she closed her building society account period closing-down sale / kləυziŋ daυn closing-down sale she took all the money out and stopped using the account seil/ noun the sale of goods when a shop is close company / kləυs k mp(ə)ni/ close company closing for ever closing entries / kləυziŋ entriz/ noun closing entries noun a privately owned company controlled by a few shareholders (in the UK, fewer than in a double-entry bookkeeping system, five) where the public may own a small entries made at the very end of an account- number of the shares (NOTE: The US term is ing period to balance the expense and reve- close corporation or closed corpora- nue ledgers tion.) closing out / kləυziŋ aυt/ noun US the closing out closed economy / kləυzd i kɒnəmi/ closed economy | act of selling goods cheaply to try to get rid noun a type of economy where trade and of them financial dealings are tightly controlled by closing rate / kləυziŋ reit/ noun the closing rate the government exchange rate of two or more currencies at closed-end credit / kləυzd end kredit/ closed-end credit the close of business of a balance sheet date, noun a loan, plus any interest and finance e.g. at the end of the financial year charges, that is to be repaid in full by a spec- closing-rate method / kləυziŋ reit closing-rate method ified future date. Loans that have property or meθəd/ noun a technique for translating the motor vehicles as collateral are usually figures from a set of financial statements closed-end. ı revolving credit (NOTE: Most into a different currency using the closing loans for the purchase of property or motor rate. This method is often used for the vehicles are closed-end credits.) accounts of a foreign subsidiary of a parent closed-end fund / kləυzd end f nd/ closed-end fund company. noun an investment fund shares in which closing stock / kləυziŋ stɒk/ noun a closing stock can only be bought and sold on the open business’s remaining stock at the end of an market accounting period. It includes finished prod- closed fund / kləυzd f nd/ noun a fund, closed fund ucts, raw materials, or work in progress and such as an investment trust, where the inves- is deducted from the period’s costs in the tor buys shares in the trust and receives div- balance sheets. ć At the end of the month the idends. This is as opposed to an open-ended closing stock was 10% higher than at the trust, such as a unit trust, where the investor end of the previous month. buys units, and the investment is used to pur- closure / kləυ ə/ noun the act of closing closure chase further securities for the trust. C/N abbreviation credit note C/N closed market / kləυzd mɑ kit/ noun a closed market CNCC abbreviation Compagnie Nationale CNCC market where a supplier deals only with one agent or distributor and does not supply any des Commissaires aux Comptes co- /kəυ/ prefix working or acting together co- others direct ć They signed a closed-market CoCoA abbreviation continuously contem- CoCoA agreement with an Egyptian company. close-ended / kləυs endid/, closed- close-ended porary accounting co-creditor / kəυ kreditə/ noun a person co-creditor end / kləυzd end/ adjective referring to an investment which has a fixed capital, such as who is a creditor of the same company as an investment trust you are
  • 52. Accounting.fm Page 46 Tuesday, February 13, 2007 1:40 PMcode 46code /kəυd/ noun 1. a system of signs, collecting agency /kə lektiŋ eid ənsi/code collecting agency |numbers, or letters which mean something noun an agency which collects money owed2. a set of rules to other companies for a commission collecting bank /kə lektiŋ b ŋk/ noun collecting bankcode of practice / kəυd əv pr ktis/code of practice |noun 1. rules drawn up by an association a bank into which a person has deposited awhich the members must follow when doing cheque, and which has the duty to collect thebusiness 2. the formally established ways in money from the account of the writer of thewhich members of a profession agree to chequework ć Advertisers have agreed to abide by collection period /kə lekʃən piəriəd/ collection period |the code of practice set out by the advertis- noun the number of days it takes a companying council. to collect money owingcodicil / kəυdisil/ noun a document exe- collection ratio /kə lekʃən reiʃiəυ/codicil collection ratio |cuted in the same way as a will, making noun the average number of days it takes aadditions or changes to an existing will firm to convert its accounts receivable intocoding / kəυdiŋ/ noun the act of putting acoding cash. Also known as days’ sales outstand-code on something ć the coding of invoices ing collections /kə lekʃənz/ plural noun collectionscoding of accounts / kəυdiŋ əv əcoding of accounts | | kaυnts/ noun the practice of assigning money which has been collected collective investment /kə lektiv in collective investmentcodes to the individual accounts that make | |up the accounting system of a large com- vestmənt/ noun the practice of investingpany money with other individuals or organisa-co-director / kəυ dai rektə/ noun a per-co-director | tions in order to share costs and risk collector /kə lektə/ noun a person who collectorson who is a director of the same company |as you makes people pay money which is owed ć He works as a debt collector.coefficient of variation / kəυifiʃ(ə)ntcoefficient of variation column / kɒləm/ noun a series of numbers columnəv veəri eiʃ(ə)n/ noun a measure of the |spread of statistical data, which is equal to arranged one underneath the other ć to addthe standard deviation multiplied by 100 up a column of figures ć Put the total at the bottom of the column.co-financing / kəυ fain nsiŋ/ noun theco-financing combined financial statement /kəm combined financial statementact of arranging finance for a project from a |series of sources baind fai n nʃəl steitmənt/ noun a | written record covering the assets, liabili-cold start / kəυld stɑ t/ noun the act ofcold start ties, net worth and operating statement ofbeginning a new business or opening a new two or more related or affiliated companiesshop with no previous turnover to base it on comfort letter / k mfət letə/ noun 1. in comfort lettercollateral /kə l t(ə)rəl/ noun a security,collateral | the United States, an accountant’s statementsuch as negotiable instruments, shares or confirming that the unaudited financialgoods, used to provide a guarantee for a loan information in a prospectus follows GAAP ‘…examiners have come to inspect the 2. a letter from a parent company to a lender collateral that thrifts may use in borrowing assuring the lender that a subsidiary com- from the Fed’ [Wall Street Journal] pany that has applied for a loan will be sup-collateralisationcollateralisation /kə l t(ə)rəlai | | ported by the parent in its efforts to stay in zeiʃ(ə)n/ noun the act of securing a debt by businessselling long-term receivables to another command economy /kə mɑ nd i command economy | |company which secures them on the debts kɒnəmi/ noun same as planned economycollateralise /kə l t(ə)rəlaiz/, collater- commerce / kɒm s/ noun the buyingcollateralise commerce |alize verb to secure a debt by means of a col- and selling of goods and serviceslateral commercial /kə m ʃ(ə)l/ adjective 1. commercial |collect /kə lekt/ verb 1. to get moneycollect | referring to business 2. profitablewhich is owed to you by making the person commercial bank /kə m ʃ(ə)l b ŋk/ commercial bank |who owes it pay 2. to take things away from noun a bank which offers banking servicesa place ć We have to collect the stock from to the public, as opposed to a merchant bankthe warehouse. í adverb, adjective used to commercial bill /kə m ʃ(ə)l bil/ noun commercial bill |describe a phone call which the person a bill of exchange issued by a company (areceiving the call agrees to pay for trade bill) or accepted by a bank (a bankcollectibility /kə lekti biliti/ noun abilitycollectibility | | bill), as opposed to a Treasury bill, which isof cash owed to be collected issued by the government
  • 53. Accounting.fm Page 47 Tuesday, February 13, 2007 1:40 PM 47 committee commercial directory /kə m ʃ(ə)l dai Commissioner of the Inland Reve- commercial directory Commissioner of the Inland Revenue | | rekt(ə)ri/ noun a book which lists all the nue /kə miʃ(ə)nəz əv θi inlənd | businesses and business people in a town revənju / noun same as Appeals Com- commercial commercial failure failure /kə m ʃ(ə)l | missioner commission house /kə miʃ(ə)n haυs/ commission house feiljə/ noun financial collapse or bank- | ruptcy noun a firm which buys or sells for clients, commercial law /kə m ʃ(ə)l lɔ / noun commercial law | and charges a commission for this service commission rep /kə miʃ(ə)n rep/ noun commission rep the laws regarding the conduct of businesses | commercial lawyer /kə m ʃ(ə)l lɔ jə/ commercial lawyer | a representative who is not paid a salary but noun a person who specialises in company receives a commission on sales commit /kə mit/ verb ˽ to commit your- commit law or who advises companies on legal | problems self to to guarantee something, especially a commercial loan /kə m ʃ(ə)l ləυn/ commercial loan | loan issue, or to guarantee to do something commitment /kə mitmənt/ noun some- commitment noun a short-term renewable loan or line of | credit used to finance the seasonal or cycli- thing which you have agreed to do ć to make cal working capital needs of a company a commitment or to enter into a commitment commercially /kə m ʃ(ə)li/ adverb 1. commercially | to do something ć The company has a com- for the purpose of making a profit 2. in the mitment to provide a cheap service. commitment document /kə mitmənt commitment document operation of a business | commercial paper /kə m ʃ(ə)l peipə/ commercial paper dɒkjυmənt/ noun a contract, change order, purchase order or letter of intent which deals | noun an IOU issued by a company to raise a short-term loan. Abbreviation CP with the supply of goods and services and commits an organisation to legal, financial commercial property /kə m ʃ(ə)l commercial property | and other obligations prɒpəti/ noun a building, or buildings, commitment fee /kə mitmənt fi / noun commitment fee | used as offices or shops a fee paid to a bank which has arranged a commercial report /kə m ʃ(ə)l ri commercial report | | line of credit which has not been fully used pɔ t/ noun an investigative report made by commitments basis /kə mitmənts commitments basis | an organisation such as a credit bureau that beisis/ noun the method of recording the specialises in obtaining information regard- expenditure of a public sector organisation ing a person or organisation applying for at the time when it commits itself to it rather something such as credit or employment than when it actually pays for it commercial substance /kə m ʃ(ə)l commercial substance commitments for capital expendi- commitments for capital expenditure | s bstəns/ noun the economic reality that ture /kə mitmənts fə k pit(ə)l ik| | underlies a transaction or arrangement, spenditʃə/ plural noun the amount a com- regardless of its legal or technical denomi- pany has committed to spend on fixed assets nation. For example, a company may sell an in the future. In the United Kingdom, com- office block and then immediately lease it panies are legally obliged to disclose this back: the commercial substance may be that amount, and any additional commitments, in it has not been sold. their annual report. commercial year /kə m ʃ(ə)l jiə/ commercial year committed credit lines /kə mitid committed credit lines | | noun an artificial year treated as having 12 kredit lainz/ plural noun a bank’s agree- months of 30 days each, used for calculating ment to provide a loan on the borrower’s such things as monthly sales data and inven- request, with a fee paid by the borrower for tory levels any undrawn portion of the agreed loan commission /kə miʃ(ə)n/ noun 1. money commission Committee of European Securities Committee of European Securities Regulators | paid to a salesperson or agent, usually a per- Regulators /kə miti əv jυərəpi ən si | | centage of the sales made ć She gets 10% kjυəritiz re jυleitəz/ noun an independ- commission on everything she sells. ć He is ent organisation of securities regulators paid on a commission basis. 2. a group of established to promote consistent supervi- people officially appointed to examine some sion of the European market for financial problem ć He is the chairman of the govern- services ment commission on export subsidies. Committee on Accounting Proce- committee commission agent /kə miʃ(ə)n commission agent | dure /kə miti ɒn ə kaυntiŋ prə si d ə/ | | | eid ənt/ noun an agent who is paid a per- noun in the United States, a committee of centage of sales the American Institute of Certified Public commissioner /kə miʃ(ə)nə/ noun an commissioner | Accountants that was responsible between ombudsman 1939 and 1959 for issuing accounting prin-
  • 54. Accounting.fm Page 48 Tuesday, February 13, 2007 1:40 PMcommodity 48ciples, some of which are still part of the company car / k mp(ə)ni kɑ / noun a company carGenerally Accepted Accounting Principles car which belongs to a company and is lentcommodity /kə mɒditi/ noun somethingcommodity | to an employee to use for business or othersold in very large quantities, especially a purposesraw material such as a metal or a food such company director / k mp(ə)ni dai company director |as wheat rektə/ noun a person appointed by thecommodity exchange /kə mɒditi ikscommodity exchange | | shareholders to help run a company tʃeind / noun a place where commodities company flat / k mp(ə)ni fl t/ noun a company flatare bought and sold flat owned by a company and used by mem-commoditycommodity futures futures /kə mɒditi | bers of staff from time to time (NOTE: The fju tʃəz/ plural noun commodities traded US term is company apartment.)for delivery at a later date ć Silver rose 5% company law / k mp(ə)ni lɔ / noun company lawon the commodity futures market yesterday. laws which refer to the way companies workcommodity market /kə mɒditicommodity market company pension scheme company pension scheme | mɑ kit/ noun a place where people buy and / k mp(ə)ni penʃən ski m/ noun same assell commodities occupational pension scheme ć Shecommodity trader /kə mɒditi treidə/ decided to join the company’s pensioncommodity trader |noun a person whose business is buying and scheme.selling commodities company promoter / k mp(ə)ni prə company promoter |common cost / kɒmən kɒst/ noun a məυtə/ noun a person who organises thecommon costcost which is apportioned to two or more setting up of a new companycost centres company company registrar registrar / k mp(ə)nicommon ownership / kɒməncommon ownership red istrɑ / noun the person who keeps the əυnəʃip/ noun a situation where a business share register of a companyis owned by the employees who work in it company reserves / k mp(ə)ni ri company reserves |common pricing / kɒmən praisiŋ/common pricing z vz/ plural noun same as revenuenoun the illegal fixing of prices by several reservesbusinesses so that they all charge the same company company secretary secretary / k mp(ə)niprice sekrit(ə)ri/ noun a person who is responsi-common stock / kɒmən stɒk/ noun UScommon stock ble for a company’s legal and financialsame as ordinary shares affairsCompagnie Nationale des Commis-Compagnie Nationale des Commissaires aux Comptes comparability / kɒmp(ə)rə biliti/ noun comparability |saires aux Comptes / kɒmp ni the extent to which accurate comparisons n ʃənɑ l dei kɒmiseəz əυ kɒmt/ noun can be made of the financial status of differ-in France, an organisation that regulates ent companies, based on similarities in theirexternal audit. Abbreviation CNCC accounting procedures, measurement con-Companies House / k mpəniz haυs/Companies House cepts and other featuresnoun an official organisation where the comparative balance sheet /kəm comparative balance sheet |records of companies must be deposited, so p rətiv b ləns ʃi t/ noun one of two orthat they can be inspected by the public. The more financial statements prepared on dif-official name is the ‘Companies Registration ferent dates that lend themselves to a com-Office’. parative analysis of the financial conditionCompanies Registration Office of an organisationCompanies Registration Office/ k mp(ə)niz red i streiʃ(ə)n ɒfis/ noun | comparative statements comparative statements /kəm |an office of the Registrar of Companies, the p rətiv steitmənts/ plural noun finan-official organisation where the records of cial statements which cover differentcompanies must be deposited, so that they accounting periods, usually the previouscan be inspected by the public. Abbreviation accounting period, but which are prepared inCRO. Also called Companies House the same way and therefore allow informa-company / k mp(ə)ni/ noun a business tion to be fairly comparedcompanyorganisation, a group of people organised to compensate / kɒmpənseit/ verb to give compensatebuy, sell, or provide a service, usually for someone money to make up for a loss orprofit injury ć In this case we will compensate acompany auditor / k mp(ə)ni ɔ ditə/ manager for loss of commission. ć The com-company auditornoun the individual or firm of accountants a pany will compensate the employee for thecompany appoints to audit its annual burns suffered in the accident. (NOTE: Youaccounts compensate someone for something.)
  • 55. Accounting.fm Page 49 Tuesday, February 13, 2007 1:40 PM 49 compliance test compensating compensating balance balance tries to retain its market share’ [Citizen / kɒmpənseitiŋ b ləns/ noun the amount (Ottawa)] of money which a customer has to keep in a competitive devaluation /kəm petitiv competitive devaluation | bank account in order to get free services di v lju eiʃ(ə)n/ noun a devaluation of a | from the bank currency to make a country’s goods more compensating errors / kɒmpənseitiŋ competitive on the international markets compensating errors erəz/ plural noun two or more errors which competitive pricing /kəm petitiv competitive pricing | are set against each other so that the praisiŋ/ noun the practice of putting low accounts still balance prices on goods so as to compete with other compensation / kɒmpən seiʃ(ə)n/ compensation | products noun 1. ˽ compensation for damage pay- competitor /kəm petitə/ noun a person competitor ment for damage done ˽ compensation for | or company that is competing with another loss of office payment to a director who is ć Two German firms are our main competi- asked to leave a company before their con- tors. tract ends ˽ compensation for loss of earn- ‘…sterling labour costs continue to rise ings payment to someone who has stopped between 3% and 5% a year faster than in earning money or who is not able to earn most of our competitor countries’ [Sunday money 2. US a salary Times] ‘…compensation can also be via the mag- complete /kəm pli t/ verb to sign a con- complete | istrates courts for relatively minor injuries’ tract for the sale of a property and to [Personnel Management] exchange it with the other party, so making compensation deal / kɒmpən seiʃ(ə)n compensation deal | it legal di l/ noun a deal where an exporter is paid completed contract method /kəm completed contract method | (at least in part) in goods from the country to pli tid kɒntr kt meθəd/ noun a way of which he or she is exporting accounting for a particular contractual obli- compensation fund / kɒmpən seiʃ(ə)n compensation fund | gation, e.g., a long-term construction f nd/ noun a fund operated by the Stock project, whereby the profit is not recorded Exchange to compensate investors for losses until the final completion of the project, suffered when members of the Stock even if there has been some revenue while Exchange default the project was still in progress compensation package / kɒmpən compensation package completion date /kəm pli ʃ(ə)n deit/ completion date | | seiʃ(ə)n p kid / noun the salary, pension noun a date when something will be finished and other benefits offered with a job compliance /kəm plaiəns/ noun agree- compliance | ‘…golden parachutes are liberal compen- ment to do what is ordered sation packages given to executives leav- compliance audit /kəm plaiəns ɔ dit/ compliance audit ing a company’ [Publishers Weekly] | noun an audit of business activities carried compete /kəm pi t/ verb ˽ to compete compete | out to determine whether performance with someone or with a company to try to matches contractual, regulatory or statutory do better than another person or another requirements company ć We have to compete with cheap compliance costs /kəm plaiəns kɒsts/ compliance costs imports from the Far East. ć They were | competing unsuccessfully with local compa- plural noun expenses incurred as a result of nies on their home territory. ˽ the two com- meeting legal requirements, e.g., for safety panies are competing for a market share requirements or to comply with company or for a contract each company is trying to law compliance department /kəm plaiəns compliance department win a larger part of the market, trying to win | the contract di pɑ tmənt/ noun a department which | competition / kɒmpə tiʃ(ə)n/ noun a sit- competition | ensures that the company is adhering to any uation where companies or individuals are relevant regulations, such as FSA regula- trying to do better than others, e.g. trying to tions compliance officer /kəm plaiəns compliance officer win a larger share of the market, or to pro- | duce a better or cheaper product or to control ɒfisə/ noun an employee of a financial the use of resources organisation whose job is to make sure that ‘…profit margins in the industries most the organisation complies with the regula- exposed to foreign competition are worse tions governing its business than usual’ [Sunday Times] compliance test /kəm plaiəns test/ compliance test | ‘…competition is steadily increasing and noun any of various audit procedures fol- could affect profit margins as the company lowed to ensure that accounting procedures
  • 56. Accounting.fm Page 50 Tuesday, February 13, 2007 1:40 PMcomposition 50within a company are reasonable and com- National Audit Office who reports back toply with regulations Parliament on the audit of governmentcomposition / kɒmpə ziʃ(ə)n/ noun ancomposition | departmentsagreement between a debtor and creditors, compulsory annuity /kəm p lsəri ə compulsory annuity | |where the debtor settles a debt by repaying nju iti/ noun in the United Kingdom, theonly part of it legal requirement that at least 75% of thecompound /kəm paυnd/ verb 1. to agreecompound | funds built-up in a personal pension planwith creditors to settle a debt by paying part have to be used to purchase an annuity byof what is owed 2. to add to ć The interest is the age of 75 compulsory liquidation /kəm p lsəri compulsory liquidationcompounded daily. |compound discount / kɒmpaυndcompound discount likwi deiʃ(ə)n/ noun same as compul- | diskaυnt/ noun the difference between the sory winding up compulsory purchase /kəm p lsəri compulsory purchasenominal amount of a particular sum in the |future and its present discounted value. So, p tʃis/ noun the purchase of an annuityif £150 in a year’s time is worth £142 now, with the fund built up in a personal pensionthe compound discount is £8. schemecompounding period / kɒmpaυndiŋ compulsory winding up /kəm p lsəricompounding period compulsory winding up | piəriəd/ noun the period over which com- waindiŋ p/ noun liquidation which ispound interest is calculated ordered by a courtcompound interest / kɒmpaυnd compulsory winding up order /kəmcompound interest compulsory winding up order | intrəst/ noun interest which is added to the p lsəri waindiŋ p ɔ də/ noun an ordercapital and then earns interest itself from a court saying that a company must becompound journal entry / kɒmpaυndcompound journal entry wound up computable /kəm pju təb(ə)l/ adjective computable d n(ə)l entri/ noun an entry in a journal |that comprises more than individual equally possible to calculatematched debit and credit items computation / kɒmpjυ teiʃ(ə)n/ noun a computation |comprehensivecomprehensive income income calculation/ kɒmprihensiv ink m/ noun a com- computational error computational errorpany’s total income for a given accounting / kɒmpjυteiʃ(ə)nəl erə/ noun a mistakeperiod, taking into account all gains and made in calculatinglosses, not only those included in a normal compute /kəm pju t/ verb to calculate, to compute |income statement. In the United States, do calculationscomprehensive income must be declared computerise /kəm pju təraiz/, compu- computerise |whereas in the United Kingdom it appears in terize verb to change something from athe statement of total recognised gains and manual system to one using computers ć Welosses. have computerised all our records. ć Stockcomprehensive insurancecomprehensive insurance control is now completely computerised./ kɒmprihensiv in ʃυərəns/, comprehen- | concealment of assets /kən si lmənt concealment of assets |sive policy / kɒmprihensiv pɒlisi/ noun əv sets/ noun the act of hiding assets soan insurance policy which covers you that creditors do not know they existagainst all risks which are likely to happen concept / kɒnsept/ noun an idea ˽ con- conceptcomprehensive tax allocationcomprehensive tax allocation cept of capital maintenance the idea that/ kɒmprihensiv t ks ləkeiʃ(ə)n/ noun profit is only recorded if the capital of thethe setting aside of money to cover deferred company, measured in terms of its net assets,tax increases during an accounting period.compromise / kɒmprəmaiz/ noun ancompromise Assets can be measured at historical cost oragreement between two sides, where each in units of constant purchasing power. ˽side gives way a little ć Management concept of maintenance of operatingoffered £5 an hour, the union asked for £9, capacity the concept of capital maintenanceand a compromise of £7.50 was reached. í measured in terms of the changes in the cur-verb to reach an agreement by giving way a rent values of fixed assets, stock and work-little ć She asked £15 for it, I offered £7 and ing capital. Profit can only be taken if thewe compromised on £10. total value of these assets, called the ‘netcomptroller /kən trəυlə/ noun a financialcomptroller | operating assets’, including adjustments forcontroller changes in prices affecting these assets,Comptroller and Auditor GeneralComptroller and Auditor General increases during an accounting period./kən trəυlə ənd ɔ ditə d en(ə)rəl/ noun conceptual framework /kən septʃuəl conceptual framework | |in the United Kingdom, the head of the freimw k/ noun a set of theoretical prin-
  • 57. Accounting.fm Page 51 Tuesday, February 13, 2007 1:53 PM 51 consignment ciples that underlies the practice and regula- firm may profit personally from decisions tion of financial accounting. In the United taken in an official capacity States, this is expressed in the Statements of conglomerate /kən lɒmərət/ noun a conglomerate | Financial Accounting Concepts issued by group of subsidiary companies linked the Financial Accounting Standards Board. together and forming a group, each making In the United Kingdom, it is expressed in the very different types of products Statement of Principles issued by the connected connected persons persons /kə nektid | Accounting Standards Board. p s(ə)nz/ plural noun for purposes of dis- concern /kən s n/ noun a business or concern | closure under the UK Companies Act, cer- company tain people who are related to or connected concession /kən seʃ(ə)n/ noun 1. the concession | with members of the board of directors, right to use someone else’s property for including his or her spouse and children business purposes 2. the right to be the only Conseil National de la Comptabilité Conseil National de la Comptabilité seller of a product in a place ć She runs a /kɒn sei n ʃənɑ l də | kɒmt bilitei/ | jewellery concession in a department store. noun in France, a committee appointed by 3. an allowance, e.g. a reduction of tax or the government that is responsible for draw- price ing up the Plan Comptable Général (General concessionaire /kən seʃə neə/ noun a concessionaire | | Accounting Plan) person or business that has the right to be the consensus ad idem /kən sensəs d consensus ad idem | only seller of a product in a place aidem/ phrase a Latin phrase meaning concessionary fare /kən seʃ(ə)nəri concessionary fare | ‘agreement to this same thing’: real agree- feə/ noun a reduced fare for some types of ment to a contract by both parties passenger such as pensioners, students or conservative /kən s vətiv/ adjective conservative | employees of a transport company careful, not overestimating ć His forecast of conciliation /kən sili eiʃ(ə)n/ noun the conciliation | | expenditure was very conservative or She practice of bringing together the parties in a made a conservative forecast of expenditure. dispute with an independent third party, so ‘…we are calculating our next budget that the dispute can be settled through a income at an oil price of $15 per barrel. series of negotiations We know it is a conservative projection, condition /kən diʃ(ə)n/ noun something condition | but we do not want to come in for a shock which has to be carried out as part of a con- should prices dive at any time during the tract or which has to be agreed before a con- year’ [Lloyd’s List] conservatively /kən s vətivli/ adverb conservatively tract becomes valid | conditional /kən diʃ(ə)n(ə)l/ adjective conditional | not overestimating ć The total sales are provided that specific conditions are taken conservatively estimated at £2.3m. consideration /kən sidə reiʃ(ə)n/ noun consideration into account | | 1. serious thought ć We are giving consider- conditionality /kən diʃ(ə) n liti/ noun conditionality | | the fact of having conditions attached ation to moving the head office to Scotland. 2. something valuable exchanged as part of conditional sale /kən diʃ(ə)nəl seil/ conditional sale | a contract noun a sale which is subject to conditions, consign /kən sain/ verb ˽ to consign consign such as a hire-purchase agreement | goods to someone to send goods to some- conditions of employment /kən conditions of employment | one for them to use or to sell for you diʃ(ə)nz əv im plɔimənt/ plural noun the | consignation / kɒnsai neiʃ(ə)n/ noun consignation | terms of a contract of employment the act of consigning conditions of sale /kən diʃ(ə)nz əv conditions of sale consignee / kɒnsai ni / noun a person | consignee seil/ plural noun special features that apply | who receives goods from someone for their to a particular sale, e.g. discounts or credit own use or to sell for the sender terms consignment /kən sainmənt/ noun 1. consignment | Confederation of Asian and Pacific Confederation of Asian and Pacific Accountants the sending of goods to someone who will Accountants /kən fedəreiʃ(ə)n əv | sell them for you 2. a group of goods sent for ei (ə)n ən pə sifik ə kaυntənts/ noun | | sale ć A consignment of goods has arrived. full form of CAPA ć We are expecting a consignment of cars confidential report / kɒnfidenʃəl ri confidential report | from Japan. pɔ t/ noun a secret document which must ‘…some of the most prominent stores are not be shown to other people gradually moving away from the tradi- conflict of interest / kɒnflikt əv conflict of interest tional consignment system, under which intrəst/ noun a situation where a person or manufacturers agree to repurchase any
  • 58. Accounting.fm Page 52 Tuesday, February 13, 2007 1:40 PMconsignment accounts 52 unsold goods, and in return dictate prices profit and loss statement or income and sales strategies and even dispatch staff statement.) to sell the products’ [Nikkei Weekly] consolidation /kən sɒli deiʃ(ə)n/ noun consolidation | |consignment accounts /kənconsignment accounts | 1. the grouping together of goods for ship- sainmənt ə kaυnts/ plural noun accounts | ping 2. the act of taking profits from specu-kept by both consignee and consignor, lative investments and investing them safelyshowing quantities, dates of shipment, and in blue-chip companiespayments for stocks held consolidation adjustments /kən sɒli consolidation adjustments | |consignment note /kən sainməntconsignment note | deiʃ(ə)n ə d stmənts/ plural noun nec- |nəυt/ noun a note saying that goods have essary changes and deletions made to finan-been sent cial records when consolidating theconsignor /kən sainə/ noun a personconsignor | accounts of a group of enterpriseswho consigns goods to someone consolidation difference /kən sɒli consolidation difference | |consistency /kən sistənsi/ noun one ofconsistency | deiʃ(ə)n dif(ə)rəns/ noun the differencethe basic accounting concepts, that items in between the price paid for a subsidiary andthe accounts should be treated in the same the value of the assets and liabilitiesway from year to year obtained in the purchase consols / kɒnsɒlz/ plural noun govern- consolsconsolidate /kən sɒlideit/ verb 1. toconsolidate |include the accounts of several subsidiary ment bonds which pay interest but do notcompanies as well as the holding company have a maturity datein a single set of accounts 2. to group goods consortium /kən sɔ tiəm/ noun a group consortium |together for shipping of companies which work together ć A con-consolidatedconsolidated accounts accounts /kən | sortium of Canadian companies or A Cana- sɒlideitid ə kaυnts/ plural noun accounts | dian consortium has tendered for the job.where the financial position of several dif- (NOTE: The plural is consortia.)ferent companies, i.e. a holding company ‘…the consortium was one of only fourand its subsidiaries, are recorded together bidders for the £2 billion contract to runconsolidated balance sheet /kənconsolidated balance sheet | the lines, seen as potentially the most dif- sɒlideitid b ləns ʃi t/ noun the balance ficult contract because of the need for hugesheets of subsidiary companies grouped investment’ [Times] constant purchasing power constant purchasing powertogether into the balance sheet of the parentcompany. Also called group balance sheet / kɒnstənt p tʃisiŋ paυə/ noun same asconsolidated cash flow statementconsolidated cash flow statement current purchasing power constraint /kən streint/ noun any factor constraint/kən sɒlideitid k ʃ fləυ steitmənt/ | |noun a cash flow statement for a group of that limits the activities of a business, e.g.enterprises and its parent company as a the capacity of a machine or the number ofwhole hours a worker can legally work constraint-based costing /kən constraint-based costingconsolidated financial statementconsolidated financial statement |/kən sɒlideitid fai n nʃəl steitmənt/ | | streint beist kɒstiŋ/ noun a costingnoun a document that gives the main details method that takes account of restraints onof the financial status of a company and its capacity, e.g. the capacity of machinery Consultative Committee of Consultative Committee of Accountancy Bodiessubsidiaries. Also called group financialstatement Accountancy Bodies /kən s ltətiv kə | |consolidated fund /kən sɒlideitidconsolidated fund | miti əv ə kaυntənsi bɒdiz/ noun an | f nd/ noun money in the Exchequer which organisation established in 1974 that repre-comes from tax revenues and is used to pay sents and encourages coordination betweenfor government expenditure the six professional accountancy bodies inconsolidated income statement /kənconsolidated income statement | the United Kingdom and Ireland. Abbrevia- sɒlideitid ink m steitmənt/ noun an tion CCAB consulting /kən s ltiŋ/ adjective giving consultingincome statement for a group of enterprises |and its parent company as a whole specialist advice ć a consulting engineer consulting actuary /kən s ltiŋ consulting actuaryconsolidated profit and lossconsolidated profit and loss account |account /kən sɒlideitid prɒfit ən lɒs ə | | ktjuəri/ noun an independent actuary kaυnt/ noun profit and loss accounts of the who advises large pension funds consumable goods /kən sju məb(ə)l consumable goodsholding company and its subsidiary compa- |nies, grouped together into a single profit υdz/, consumables plural noun goodsand loss account (NOTE: The US term is which are bought by members of the public
  • 59. Accounting.fm Page 53 Tuesday, February 13, 2007 1:40 PM 53 continuous improvement and not by companies. Also called con- contested takeover /kən testid contested takeover | sumer goods teikəυvə/ noun a takeover bid where the consumed cost /kən sju md kɒst/ consumed cost | board of the target company does not recom- noun same as sunk cost mend it to the shareholders and tries to fight consumer /kən sju mə/ noun a person or consumer | it. Also called hostile bid contingency fund /kən tind ənsi contingency fund company that buys and uses goods and serv- | ices ć Gas consumers are protesting at the f nd/ noun money set aside in case it is increase in prices. ć The factory is a heavy needed urgently consumer of water. contingent expenses /kən tind ənt ik contingent expenses | | consumer consumer council council /kən sju mə | spensiz/ plural noun expenses which will kaυns(ə)l/ noun a group representing the be incurred only if something happens interests of consumers contingent gain /kən tind ənt ein/ contingent gain | consumer credit /kən sju mə kredit/ consumer credit | noun a possible gain that is conditional on noun credit given by shops, banks and other the occurrence of a certain event in the financial institutions to consumers so that future they can buy goods (NOTE: Lenders have to contingent liability /kən tind ənt laiə contingent liability | | be licensed under the Consumer Credit Act, biliti/ noun a liability which may or may 1974.) not occur, but for which provision is made in Consumer Credit Act, 1974 /kən Consumer Credit Act, 1974 | a company’s accounts, as opposed to ‘provi- sju mə kredit kt/ noun an Act of Parlia- sions’, where money is set aside for an antic- ment which licenses lenders, and requires ipated expenditure them to state clearly the full terms of loans contingent loss /kən tind ənt lɒs/ contingent loss | which they make, including the APR noun a possible loss that is conditional on consumer goods /kən sju mə υdz/ consumer goods | the occurrence of a certain event in the plural noun same as consumable goods future contingent policy /kən tind ənt contingent policy Consumer Price Index /kən sju mə Consumer Price Index | | prais indeks/ noun a US index showing pɒlisi/ noun an insurance policy which how prices of consumer goods have risen pays out only if something happens, such as over a period of time, used as a way of meas- if a person named in the policy dies before uring inflation and the cost of living. Abbre- the person due to benefit viation CPI (NOTE: The UK term is retail contingent reserve /kən tind ənt ri contingent reserve | | prices index.) z v/ noun a fund set aside to meet unex- ‘…analysis of the consumer price index pected costs, e.g. an increase in interest rates for the first half of the year shows that the continuing professional develop- continuing professional development rate of inflation went down by about 12.9 ment /kən tinjuiŋ prə feʃ(ə)n(ə)l di | | | per cent’ [Business Times (Lagos)] veləpmənt/ noun full form of CPD consumer protection /kən sju mə prə consumer protection continuous disclosure /kən tinjυəs continuous disclosure | | | tekʃən/ noun the activity of protecting con- dis kləυ ə/ noun in Canada, the practice of | sumers against unfair or illegal traders ensuring that complete, timely, accurate and consumer spending /kən sju mə consumer spending | balanced information about a public com- spendiŋ/ noun spending by private house- pany is made available to shareholders holds on goods and services continuous improvement continuous improvement /kən | ‘…companies selling in the UK market are tinjuəs im pru vmənt/ noun a procedure | worried about reduced consumer spending and management philosophy that focuses on as a consequence of higher interest rates looking all the time for ways in which small and inflation’ [Business] improvements can be made to processes and consumption tax /kən s mpʃ(ə)n products, with the aim of increasing quality consumption tax | t ks/ noun a tax used to encourage people and reducing waste and cost (NOTE: Contin- to buy less of a particular good or service by uous improvement is one of the tools that increasing its price. This type of tax is often underpin the philosophies of total quality levied in times of national hardship. management and lean production; in Japan Contact Committee / kɒnt kt kə miti/ Contact Committee | it is known as kaizen.) noun an advisory body, established by the continuously contemporary continuous improvement European Union, that oversees the applica- accounting /kən tinjυəsli kən | | tion of European accounting directives and temp(ə)rəri ə kaυntiŋ/ noun an account- | makes recommendations to the European ing system that measures assets and liabili- Commission about changes to those direc- ties at their current cash price. Profit and loss tives can therefore be viewed in terms of changes
  • 60. Accounting.fm Page 54 Tuesday, February 13, 2007 1:40 PMcontra 54in the value as all items are measured in the contractual /kən tr ktʃυəl/ adjective contractual |same way. Abbreviation CoCoA according to a contract ć contractual condi-contracontra / kɒntrə/ noun an accounting term tions contractual liability /kən tr ktʃuəl contractual liabilityused when debits are matched with related |credits in an account or set of accounts laiə biliti/ noun a legal responsibility for |contra account something as stated in a contractcontra account / kɒntrə ə kaυnt/ noun contractually /kən tr ktjuəli/ adverb | contractuallyan account which offsets another account, | according to a contract ć The company ise.g. where a company’s supplier is not only contractually bound to pay our expenses.a creditor in that company’s books but also a contractual obligation /kən tr ktʃuəl contractual obligationdebtor because it has purchased goods on |credit ɒbli eiʃ(ə)n/ noun something that a per- | son is legally forced to do through having signed a contract to do ˽ to fulfil your con-contractcontract noun / kɒntr kt/ 1. a legalagreement between two parties ć to draw up tractual obligations to do what you havea contract ć to draft a contract ć to sign a agreed to do in a contractcontract ˽ the contract is binding on both contract work / kɒntr kt w k/ noun contract workparties both parties signing the contract work done according to a written agreementmust do what is agreed ˽ under contract contra entry / kɒntrə entri/ noun an contra entrybound by the terms of a contract ć The firm entry made in the opposite side of anis under contract to deliver the goods by account to make an earlier entry worthless,November. ˽ to void a contract to make a i.e. a debit against a creditcontract invalid 2. ˽ by private contract by contribute /kən tribju t/ verb to give contributeprivate legal agreement 3. an agreement for |the supply of a service or goods ć to enter money or add to money ć We agreed to con- tribute 10% of the profits. ć They had con-into a contract to supply spare parts ć to tributed to the pension fund for 10 years.sign a contract for $10,000 worth of spare contribution / kɒntri bju ʃ(ə)n/ noun 1. contributionparts 4. (Stock Exchange) a deal to buy or |sell shares, or an agreement to purchase money paid to add to a sum 2. the differenceoptions or futures í verb /kən tr kt/ to | between sales value and the variable costs ofagree to do some work on the basis of a a unit sold. This goes to cover fixed costslegally binding contract ć to contract to and provide the profit. contribution income statement contribution income statementsupply spare parts or to contract for the sup-ply of spare parts / kɒntribju ʃ(ə)n ink m steitmənt/contract costing noun a way of presenting an income state-contract costing / kɒntr kt kɒstiŋ/ ment in which fixed costs are shown as anoun a method of costing large projects, deduction from the total contribution. Thiswhere the contracted work will run over sev- format is often used as part of managementeral accounting periods accounting.contracting partycontracting party /kən tr ktiŋ pɑ ti/ | contribution margin / kɒntri bju ʃ(ə)n contribution margin |noun a person or company that signs a con- mɑ d in/ noun a way of showing howtract much individual products or services con-contract notecontract note / kɒntr kt nəυt/ noun a tribute to net profitnote showing that shares have been bought ‘The provider of rehabilitation servicesor sold but not yet paid for, also including cited the negative impact of Part B therapythe commission caps on estimated Contract Therapy con-contract of employment tribution margins.’ [BusinessWeek]contract of employment / kɒntr kt contribution of capital /kɒntri contribution of capital |əv im plɔimənt/ noun a contract between | bju ʃ(ə)n əv k pit(ə)l/ noun money paidan employer and an employee stating all the to a company as additional capitalconditions of work. Also called employ- contributor of capital /kən tribjυtər contributor of capitalment contract |contract of service əv k pit(ə)l/ noun a person who contrib-contract of service / kɒntr kt əv utes capital s vis/ noun a legal agreement between an contributory /kən tribjυt(ə)ri/ adjective contributory |employer and an employee whereby the causing or helping to cause ć Fallingemployee will work for the employer and be exchange rates have been a contributorydirected by them, in return for payment factor in the company’s loss of profits.contractorcontractor /kən tr ktə/ noun a person or | control account /kən trəυl ə kaυnt/ control account | |company that does work according to a writ- noun an account used to record the totalten agreement amounts entered in a number of different
  • 61. Accounting.fm Page 55 Tuesday, February 13, 2007 1:40 PM 55 cooperative store ledger accounts. It also acts as a means of 1. a price at which preference shares are checking the accuracy of the ledger converted into ordinary shares 2. a rate at accounts. which a currency is changed into a foreign controllable variance /kən trəυləb(ə)l controllable variance | currency veəriəns/ noun a difference between actual conversion value /kən v ʃ(ə)n conversion value | and budgeted amounts that is considered as v lju / noun a value of convertible stock, being within the control of the budget centre including the extra value of the ordinary manager shares into which they may be converted controlled controlled company company /kən trəυld | convert /kən v t/ verb 1. to change convert | k mp(ə)ni/ noun company where more money of one country for money of another than 50% (or in the USA, 25%) of the shares ć We converted our pounds into Swiss belong to one owner francs. 2. ˽ to convert funds to your own controlled economy /kən trəυld i controlled economy | | use to use someone else’s money for your- kɒnəmi/ noun an economy where most self business activity is directed by orders from convertibility /kən v tə biləti/ noun convertibility | | the government the ability of a currency to be exchanged for controller /kən trəυlə/ noun 1. a person controller | another easily who controls something, especially the convertible currency /kən v təb(ə)l convertible currency | finances of a company 2. US the chief k rənsi/ noun a currency which can easily accountant in a company be exchanged for another control limits /kən trəυl limits/ plural convertible debenture /kən v təb(ə)l control limits convertible debenture | | noun limits on quantities or values which, if di bentʃə/ noun a debenture or loan stock | exceeded, trigger intervention from man- which can be exchanged for ordinary shares agement at a later date control period /kən trəυl piəriəd/ noun control period | convertible loan stock /kən v təb(ə)l convertible loan stock | the fraction of the financial year, e.g., a ləυn stɒk/ noun money lent to a company month, for which separate totals are given in which can be converted into shares at a later a budget date control risk /kən trəυl risk/ noun that convertibles /kən v təb(ə)lz/ plural control risk convertibles | | aspect of an audit risk that involves a client’s noun corporate bonds or preference shares internal control system which can be converted into ordinary shares control totals /kən trəυl təυt(ə)lz/ plu- control totals | at a set price on set dates ral noun in auditing, totals calculated for conveyance /kən veiəns/ noun a legal conveyance | important data fields, used as a check of data document which transfers a property from processing standards the seller to the buyer conventional cost system /kən conveyancer /kən veiənsə/ noun a per- conventional cost system conveyancer | | venʃ(ə)n(ə)l kɒst sistəm/ noun a stand- son who draws up a conveyance ard system for applying overhead costs to conveyancing /kən veiənsiŋ/ noun the conveyancing | products and services, using only unit-based work of legally transferring a property from cost drivers a seller to a buyer conversion /kən v ʃ(ə)n/ noun the conversion | COO abbreviation chief operating officer COO action of changing convertible loan stock cooling-off period / ku liŋ ɒf piəriəd/ cooling-off period into ordinary shares noun 1. (during an industrial dispute) a conversion costs /kən v ʃ(ə)n kɒsts/ conversion costs | period when negotiations have to be carried plural noun the cost of changing raw materi- on and no action can be taken by either side als into finished or semi-finished products, 2. a period during which someone who is including wages, other direct production about to enter into an agreement may reflect costs and the production overhead on all aspects of the arrangement and change conversion of funds /kən v ʃ(ə)n əv his or her mind if necessary ć New York has conversion of funds | f ndz/ noun the act of using money which a three day cooling-off period for telephone does not belong to you for a purpose for sales. which it is not supposed to be used cooperative society /kəυ ɒp(ə)rətiv cooperative society | conversion period /kən v ʃ(ə)n sə saiəti/ noun an organisation where cus- conversion period | | piəriəd/ noun a time during which convert- tomers and employees are partners and share ible loan stock may be changed into ordi- the profits nary shares cooperative store /kəυ ɒp(ə)rətiv stɔ / cooperative store | conversion price /kən v ʃ(ə)n prais/, conversion price | noun a store owned by those who shop there conversion rate /kən v ʃ(ə)n reit/ noun | as well as by its workers
  • 62. Accounting.fm Page 56 Tuesday, February 13, 2007 1:40 PMcoproperty 56coproperty /kəυ prɒpəti/ noun the own- corporate name / kɔ p(ə)rət neim/coproperty corporate name |ership of property by two or more people noun the name of a large corporationtogether corporate plan / kɔ p(ə)rət pl n/ noun corporate plancoproprietor / kəυprə praiətə/ noun acoproprietor | a plan for the future work of a whole com-person who owns a property with another panyperson or several other people corporate corporate planning planning / kɔ p(ə)rətcopyright / kɒpirait/ noun an author’scopyright pl niŋ/ noun 1. the process of planning thelegal right to publish his or her own work future work of a whole company 2. planningand not to have it copied, lasting seventy the future financial state of a group of com-years after the author’s death í verb to con- paniesfirm the copyright of a written work by corporate profits / kɔ p(ə)rət prɒfits/ corporate profitsinserting a copyright notice and publishing plural noun the profits of a corporationthe work ‘…corporate profits for the first quarterCopyright Act / kɒpirait kt/ noun anCopyright Act showed a 4 per cent drop from last year’Act of Parliament making copyright legal, [Financial Times]and controlling the copying of copyright corporate raider / kɔ p(ə)rət reidə/ corporate raidermaterial noun a person or company which buys acopyright deposit / kɒpirait di pɒzit/copyright deposit | stake in another company before making anoun the act of depositing a copy of a pub- hostile takeover bidlished work in a copyright library, which is corporation / kɔ pə reiʃ(ə)n/ noun 1. a corporationpart of the formal copyrighting of copyright |material large company 2. US a company which is incorporated in the United States 3. a munic-copyright holder / kɒpirait həυldə/copyright holder ipal authoritynoun a person who owns a copyright and corporation income tax corporation income taxwho can expect to receive royalties from it / kɔ pəreiʃ(ə)n ink m t ks/ noun a taxcopyright law / kɒpirait lɔ / noun lawscopyright lawconcerning the protection of copyright on profits made by incorporated companies corporation loan / kɔ pə reiʃ(ə)n ləυn/ corporation loancopyright notice / kɒpirait nəυtis/copyright notice |noun a note in a book showing who owns the noun a loan issued by a local authority corporation tax / kɔ pə reiʃ(ə)n t ks/ corporation taxcopyright and the date of ownership |corporate / kɔ p(ə)rət/ adjective refer-corporate noun a tax on profits and capital gains madering to corporations or companies, or to a by companies, calculated before dividendsparticular company as a whole are paid. Abbreviation CT correcting entry /kə rektiŋ entri/ noun correcting entry ‘…the prime rate is the rate at which banks | lend to their top corporate borrowers’ an entry made in accounts to make some- [Wall Street Journal] thing right which was previously wrong correlation / kɒrə leiʃ(ə)n/ noun the correlation ‘…if corporate forecasts are met, sales will | exceed $50 million next year’ [Citizen degree to which there is a relationship (Ottawa)] between two sets of data ć Is there any cor-corporate bond / kɔ p(ə)rət bɒnd/corporate bond relation between people’s incomes and thenoun a loan stock officially issued by a com- amount they spend on clothing? COSA abbreviation cost of sales adjust- COSApany to raise capital, usually against thesecurity of some of its assets (NOTE: The mentcompany promises to pay an amount of cost /kɒst/ noun the amount of money paid costinterest on a set date every year until the to acquire, produce or maintain something,redemption date, when it repays the loan.) e.g. the money paid for materials, labour andcorporate finance / kɔ p(ə)rətcorporate finance overheads in the manufacture of a product fain ns/ noun the financial affairs of com- produced and sold by a business ć Compu-panies ter costs are falling each year. ć We cannotcorporate governance / kɔ p(ə)rətcorporate governance afford the cost of two cars. í verb 1. to cause v(ə)nəns/ noun the way a company or money to be spent or lost 2. to determine theother organisation is run, including the pow- cost of something ˽ to cost a product toers of the board of directors, audit commit- calculate how much money will be neededtees, ethics, environmental impact, treat- to make a product, and so work out its sell-ment of workers, directors’ salaries and ing priceinternal control cost absorption / kɒst əb zɔ pʃən/ cost absorption |corporate loan / kɔ p(ə)rət ləυn/ noun noun any system in which costs are assignedcorporate loana loan issued by a corporation to units produced
  • 63. Accounting.fm Page 57 Tuesday, February 13, 2007 1:40 PM 57 cost modelling cost accountant / kɒst ə kaυntənt/ cost driver / kɒst draivə/ noun a factor cost accountant cost driver | noun an accountant who gives managers that determines how much it costs to carry information about their business costs out a particular task or project, e.g. the cost accounting / kɒst ə kaυntiŋ/ noun cost accounting | amount of resources needed for it, or the the process of preparing special accounts of activities involved in completing it cost-effective / kɒsti fektiv/ adjective cost-effective manufacturing and sales costs cost accumulation / kɒst ə kju mjυ cost accumulation | | giving good value when compared with the leiʃ(ə)n/ noun a system of presenting costs original cost ć We find advertising in the in an account Sunday newspapers very cost-effective. cost-effectiveness / kɒst i fektivnəs/, cost-effectiveness cost allocation / kɒst ləkeiʃ(ə)n/ cost allocation | noun the way in which overhead expenses cost efficiency / kɒst i fiʃənsi/ noun the | are related to various cost centres quality of being cost-effective ć Can we cal- cost analysis / kɒst ə n ləsis/ noun the cost analysis | culate the cost-effectiveness of air freight process of calculating in advance what a against shipping by sea? cost element / kɒst elimənt/ noun a cost element new product will cost cost apportionment cost apportionment / kɒst ə| single element of a total cost, e.g. the cost of pɔ ʃ(ə)nmənt/ noun the sharing out of depreciation of an item or the cost of ware- common overhead costs among various cost housing the item cost estimation / kɒst estimeiʃ(ə)n/ cost estimation centres cost assignment path / kɒst ə cost assignment path | noun the process of determining cost behav- sainmənt pɑ θ/ noun a link between a iour patterns cost factor / kɒst f ktə/ noun any activ- cost factor cost and its cost object cost-based price / kɒst beist prais/ cost-based price ity or item of material, equipment or person- noun a price for a particular product or serv- nel that incurs a cost cost function /kɒst f ŋkʃ(ə)n/ noun a cost function ice based on that portion of overall costs assigned to it mathematical function that links a com- cost behaviour pattern / kɒst bi cost behaviour pattern | pany’s total costs to its output and factor heivjə p t(ə)n/ noun the extent to which costs cost hierarchy / kɒst haiərɑ ki/ noun a cost hierarchy a cost will change as the level of activity of a business changes system for classifying a company’s activities cost-benefit analysis / kɒst benifit ə cost-benefit analysis | according to the costs they incur costing / kɒstiŋ/ noun a calculation of the costing n ləsis/ noun the process of comparing the costs and benefits of various possible ways manufacturing costs, and so the selling of using available resources. Also called price, of a product ć The costings give us a benefit-cost analysis retail price of $2.95. ć We cannot do the cost centre / kɒst sentə/ noun 1. a per- cost centre costing until we have details of all the pro- son or group whose costs can be itemised duction expenditure. costly / kɒstli/ adjective costing a lot of costly and to which costs can be allocated in accounts 2. a unit, a process or an individual money, or costing too much money ć that provides a service needed by another Defending the court case was a costly proc- part of an organisation and whose cost is ess. ć The mistakes were time-consuming therefore accepted as an overhead of the and costly. business cost cost management management / kɒst cost (at cost) concept / kɒst ət kɒst m nid mənt/ noun the application of cost concept kɒnsept/ noun the practice of valuing management accounting concepts, methods assets with reference to their acquisition of data collection, analysis and presentation, cost in order to provide the information required cost control / kɒst kən trəυl/ noun the cost control | to enable costs to be planned, monitored and process of ensuring that a business’s actual controlled cost management function / kɒst cost management function costs do not exceed predetermined accepta- ble limits m nid mənt f ŋkʃ(ə)n/ noun the man- cost-cutting / kɒst k tiŋ/ adjective cost-cutting agement of those activities that help deter- intended to reduce costs ć We have taken mine accurate costs cost modelling / kɒst mɒd(ə)liŋ/ noun cost modelling out the second telephone line as a cost-cut- ting exercise. í noun the process of reduc- the use of a costing system to give a clear ing costs ć As a result of cost-cutting, we view of the costs and profitability of a prod- have had to make three staff redundant. uct or service
  • 64. Accounting.fm Page 58 Tuesday, February 13, 2007 1:40 PMcost object 58cost object / kɒst ɒbd ikt/ noun any and margin ć We are charging for the workcost objectaspect of a company’s business for which a on a cost plus basis.costing can be produced, e.g. employees’ cost pool / kɒst pu l/ noun a grouping of cost poolsalaries and factory overheads individual costs, e.g. by department or bycost of borrowing / kɒst əv bɒrəυiŋ/cost of borrowing type of jobnoun an interest rate paid on borrowed cost price / kɒst prais/ noun a selling cost pricemoney price that is the same as the price paid by thecost of capital / kɒst əv k pit(ə)l/cost of capital seller, which results in no profit being madenoun interest paid on the capital used in cost reduction programme / kɒst ri cost reduction programme |operating a business d kʃən prəυ r m/ noun a programme ofcost of goods sold / kɒst əv υdzcost of goods sold cutting costs in order to improve profitabil- səυld/ noun same as cost of sales itycost of living / kɒst əv liviŋ/ nouncost of living costs /kɒsts/ plural noun the expenses costsmoney which has to be paid for basic items involved in a court case ć The judgesuch as food, heating or rent ć to allow for awarded costs to the defendant. ć Costs ofthe cost of living in the salary adjustments the case will be borne by the prosecution.cost-of-living adjustment / kɒst əvcost-of-living adjustment costs of nonconformance / kɒsts əv costs of nonconformance liviŋ ə d stmənt/ noun an increase in | nɒnkən fɔ məns/ plural noun costs |wages or salary that compensates for an incurred by a company in rectifying defectsincrease in the cost of living in products or services soldcost-of-living allowance / kɒst əvcost-of-living allowance costs of quality / kɒsts əv kwɒləti/ costs of quality liviŋ ə laυəns/ noun an addition to normal | plural noun costs incurred in applying qual-salary to cover increases in the cost of living ity control standardscost-of-living bonus / kɒst əv liviŋcost-of-living bonus cost summary schedule / kɒst cost summary schedule bəυnəs/ noun money paid to meet anincrease in the cost of living s məri ʃedju l/ noun a method of deter- mining the cost to be transferred to a depart-cost-of-living increase / kɒst əv liviŋcost-of-living increase ment’s finished goods inventory account inkri s/ noun an increase in salary to allow cost-volume-profit analysis / kɒst cost-volume-profit analysisit to keep up with the increased cost of living vɒlju m prɒfit ə n ləsis/ noun an analy-cost-of-living index / kɒst əv liviŋcost-of-living index | sis of the relationship between gross profit indeks/ noun a way of measuring the cost and costs of production at different sellingof living which is shown as a percentage prices and output volumes. Also called CVPincrease on the figure for the previous year. analysisIt is similar to the consumer price index, but coterminous period ends coterminous period endsincludes other items such as the interest onmortgages. / kəυt minəs piəriəd endz/ plural nouncost of replacement / kɒst əv ricost of replacement | a point in time that marks the end of the pleismənt/ noun same as replacement accounting period for separate and relatedcost accounts that cover the same period council tax / kaυnsəl t ks/ noun a tax council taxcost of sales / kɒst əv seilz/ noun allcost of salesthe costs of a product sold, including manu- paid by individuals or companies to a localfacturing costs and the staff costs of the pro- authority. Introduced in April 1993 as aduction department, before general over- replacement for the much maligned commu-heads are calculated. Also called cost of nity charge, or ‘poll tax’, council taxgoods sold depends on the value of the residential or commercial property occupied.cost of sales adjustment / kɒst əvcost of sales adjustment count /kaυnt/ verb 1. to add figures count seilz ə d stmənt/ noun an adjustment |made in current cost accounting to a com- together to make a total ć She counted uppany’s historical cost profit figure to take the sales for the six months to December. 2.into account the effect of inflation on the to include something ć Did you count myvalue of materials used in production during trip to New York as part of my salesthe accounting period. If prices are rising, expenses? counterbid / kaυntəbid/ noun a higher counterbidthe COSA will reduce historical cost profit.Abbreviation COSA bid in reply to a previous bid ć When I bidcost plus / kɒst pl s/ noun a system ofcost plus $20 she put in a counterbid of $25. counter-claim / kaυntə kleim/ noun a counter-claimcalculating a price, by taking the cost of pro-duction of goods or services and adding a claim for damages made in reply to a previ-percentage to cover the supplier’s overheads ous claim ć Jones claimed £25,000 in dam-
  • 65. Accounting.fm Page 59 Tuesday, February 13, 2007 1:40 PM 59 CPD ages against Smith, and Smith entered a overseas taxation, repatriation of profits, counter-claim of £50,000 for loss of office. nationalisation, currency instability, etc. counterfeit / kaυntəfit/ adjective refer- coupon / ku pɒn/ noun 1. a piece of paper counterfeit coupon ring to false or imitation money ć Shops in used in place of money 2. a slip of paper the area have been asked to look out for attached to a government bond certificate counterfeit £20 notes. í verb to make imita- which can be cashed to provide the annual tion money interest counterfoil / kaυntəfɔil/ noun a slip of coupon rate / ku pɒn reit/ noun the per- counterfoil coupon rate paper kept after writing a cheque, an invoice centage fixed interest rate on a government or a receipt, as a record of the deal which has bond or a debenture taken place coupon security / ku pɒn si kjυəriti/ coupon security | countermand / kaυntə mɑ nd/ verb to countermand | noun a government security which carries a say that an order must not be carried out ć coupon and pays interest, as opposed to one to countermand an order ˽ to countermand which pays no interest but is sold at a dis- an order to say that an order must not be count to its face value carried out covenant / k vənənt/ noun a legal con- covenant counter-offer / kaυntər ɒfə/ noun a counter-offer tract í verb to agree to pay annually a spec- higher or lower offer made in reply to ified sum of money to a person or organisa- another offer ć Smith Ltd made an offer of tion by contract. When payments are made $1m for the property, and Blacks replied under covenant to a charity, the charity can with a counter-offer of $1.4m. reclaim the tax paid by the donee. ć to cov- ‘…the company set about paring costs and enant to pay £10 per annum cover / k və/ noun an amount of money cover improving the design of its product. It came up with a price cut of 14%, but its large enough to guarantee that something counter-offer – for an order that was to can be paid for ć Do you have sufficient have provided 8% of its workload next cover for this loan? í verb 1. to provide pro- year – was too late and too expensive’ tection by insurance against something ć [Wall Street Journal] The insurance covers fire, theft and loss of counterparty / kaυntəpɑ ti/ noun each work. ˽ to cover a risk to be protected by counterparty of the other parties to a contract, considered insurance against a risk 2. to earn enough from the viewpoint of a particular party money to pay for costs, expenses, etc. ć We counterpurchase counterpurchase / kaυntəp tʃis/ do not make enough sales to cover the noun an international trading deal, where a expense of running the shop. ć Break-even company agrees to use money received on a point is reached when sales cover all costs. sale to purchase goods in the country where 3. to ask for security against a loan which the sale was made you are making countersign / kaυntəsain/ verb to sign a countersign ‘…three export credit agencies have document which has already been signed by agreed to provide cover for large projects someone else ć All our cheques have to be in Nigeria’ [Business Times (Lagos)] coverage / k v(ə)rid / noun US protec- coverage countersigned by the finance director. ć The sales director countersigns all my orders. tion guaranteed by insurance ć Do you have countertrade / kaυntətreid/ noun a countertrade coverage against fire damage? trade which does not involve payment of ‘…from a PR point of view it is easier to money, but something such as a barter or a get press coverage when you are selling an buy-back deal instead industry and not a brand’ [PR Week] covered option / k vəd ɒpʃ(ə)n/ noun covered option countervailing duty / kaυntəveiliŋ countervailing duty dju ti/ noun a duty imposed by a country an option the owner of which is also the on imported goods, where the price of the owner of the shares for the option cover note / k və nəυt/ noun a letter cover note goods includes a subsidy from the govern- ment in the country of origin. Also called from an insurance company giving details of anti-dumping duty an insurance policy and confirming that the counting house / kaυntiŋ haυs/ noun a counting house policy exists CP abbreviation commercial paper CP department dealing with cash (dated) CPA abbreviation certified public account- CPA country risk / k ntri risk/ noun the risk country risk associated with undertaking transactions ant with, or holding assets in, a particular coun- CPD / si pi di / noun training and educa- CPD try. Sources of risk might be political, eco- tion that continues throughout a person’s nomic or regulatory instability affecting career in order to improve the skills and
  • 66. Accounting.fm Page 60 Tuesday, February 13, 2007 1:40 PMCPI 60knowledge they use to do a job or succession credit card holder / kredit kɑ d credit card holderof jobs. Full form continuing professional həυldə/ noun a person who has a creditdevelopment cardCPI abbreviation Consumer Price Index credit column / kredit kɒləm/ noun theCPI credit columncreative accountancy /kri eitiv əcreative accountancy | | right-hand column in accounts showingkaυntənsi/, creative accounting /kri | money received credit control / kredit kən trəυl/ noun a credit controleitiv ə kaυntiŋ/ noun an adaptation of a | |company’s figures to present a better picture check that customers pay on time and do notthan is correct, usually intended to make a owe more than their credit limitcompany more attractive to a potential credit controller / kredit kən trəυlə/ credit controller |buyer, or done for some other reason which noun a member of staff whose job is to try tomay not be strictly legal get payment of overdue invoicescredit / kredit/ noun 1. a period of time credit entry / kredit entri/ noun an entrycredit credit entryallowed before a customer has to pay a debt on the credit side of an accountincurred for goods or services ć to give credit facilities / kredit fə silitiz/ plural credit facilities |someone six months’ credit ć to sell on good noun an arrangement with a bank or suppliercredit terms 2. an amount entered in to have credit so as to buy goodsaccounts to show a decrease in assets or credit freeze / kredit fri z/ noun a period credit freezeexpenses or an increase in liabilities, reve- when lending by banks is restricted by thenue or capital. In accounts, credits are governmententered in the right-hand column. ć to enter credit limit / kredit limit/ noun the larg- credit limit$100 to someone’s credit ć to pay in $100 to est amount of money which a customer canthe credit of Mr Smith Compare debit í borrowverb to put money into someone’s account, credit line / kredit lain/ noun an over- credit lineor to note money received in an account ć tocredit an account with £100 or to credit draft, the amount by which a person can£100 to an account draw money from an account with no funds, with the agreement of the bankcredit account / kredit ə kaυnt/ nouncredit account credit note / kredit nəυt/ noun a note | credit notean account which a customer has with a shopwhich allows him or her to buy goods and showing that money is owed to a customer ćpay for them later The company sent the wrong order and so had to issue a credit note. Abbreviation C/Ncredit agency / kredit eid ənsi/ noun acredit agency creditor / kreditə/ noun a person or com- creditorcompany which reports on the creditworthi- pany that is owed money, i.e. a company’sness of customers to show whether they creditors are its liabilitiesshould be allowed credit. Also called credit creditor days / kreditə deiz/ plural noun creditor daysbureau the number of days on average that a com-credit agreement / kredit ə ri mənt/credit agreement | pany requires to pay its creditors. ı debtornoun a document that sets out the terms daysunder which credit is made available, or the creditors / kreditəz/ plural noun a list of creditorsagreement enshrined in such a document all liabilities in a set of accounts, includingcredit analysis / kredit ə n ləsis/ nouncredit analysis | overdrafts, amounts owing to other compa-the process of assessing a potential bor- nies in the group, trade creditors, paymentsrower’s creditworthiness received on account for goods not yet sup-credit balance / kredit b ləns/ noun acredit balance plied, etc.balance in an account showing that more creditors’ meeting / kreditəz mi tiŋ/ creditors’ meetingmoney has been received than is owed ć The noun a meeting of all the people to whom anaccount has a credit balance of £100. insolvent company owes money, to decidecredit bank / kredit b ŋk/ noun a bankcredit bank how to obtain the money owedwhich lends money credit rating / kredit reitiŋ/ noun an credit ratingcredit bureau / kredit bjυərəυ/ nouncredit bureau amount which a credit agency feels a cus-US same as credit agency tomer will be able to repay credit reference / kredit ref(ə)rəns/ credit referencecredit card / kredit kɑ d/ noun a plasticcredit cardcard which allows someone to borrow noun a credit rating or other indication of themoney and to buy goods up to a certain limit creditworthiness of a company or individualwithout paying for them immediately, but credit-reference agency / kredit credit-reference agencyonly after a period of grace of about 25–30 refər(ə)ns eid ənsi/ noun same as creditdays. ı charge card agency
  • 67. Accounting.fm Page 61 Tuesday, February 13, 2007 1:40 PM 61 cumulative interest credit report / kredit ri pɔ t/ noun infor- credit report | Method charts or PERT reports.’ [Infor- mation about an individual or entity relevant mationWeek] to a decision to grant credit CRO abbreviation Companies Registration CRO credit risk credit risk / kredit risk/ noun a risk that Office cross-border / krɒs bɔ də/ adjective cross-border a borrower may not be able to repay a loan credit side / kredit said/ noun the right- credit side from one country to another, covering sev- hand column of accounts showing money eral countries cross-border services / krɒs bɔ də cross-border services received credit squeeze / kredit skwi z/ noun a credit squeeze s visiz/ plural noun accountancy services period when lending by the banks is provided by an accountancy firm in one restricted by the government country for a client in another country crossed cheque / krɒst tʃek/ noun a crossed cheque credit union / kredit ju njən/ noun a credit union cheque with two lines across it showing that group of people who pay in regular deposits it can only be deposited at a bank and not or subscriptions which earn interest and are exchanged for cash used to make loans to other members of the cross holdings / krɒs həυldiŋz/ plural cross holdings group noun a situation where two companies own creditworthiness / kredit w ðinəs/ creditworthiness | shares in each other in order to stop either noun the extent to which an individual or from being taken over ć The two companies organisation is creditworthy have protected themselves from takeover by creditworthy / kreditw ði/ adjective creditworthy a system of cross holdings. judged as likely to be able to repay money cross rate / krɒs reit/ noun an exchange cross rate borrowed, either, in the case of an individ- rate between two currencies expressed in a ual, by a credit reference agency, or, in the third currency case of an organisation, by a credit rating cross-subsidy / krɒs s bsidi/ noun the cross-subsidy agency ć We will do some checks on her to process of deliberately assigning costs to see if she is creditworthy. items in an account in such a way that some crisis / kraisis/ noun a serious economic crisis items are undercosted and some overcosted situation where decisions have to be taken crown jewels / kraυn d u əlz/ plural crown jewels rapidly ć a banking crisis ć The govern- noun the most valuable assets of a company, ment stepped in to try to resolve the interna- the reason why other companies may want tional crisis. ć Withdrawals from the bank to make takeover bids have reached crisis level. crystallise / kristəlaiz/, crystallize verb crystallise crisis management to become chargeable on an asset ć a crisis management / kraisis m nid mənt/ noun 1. management of a deferred gain is crystallised when you real- business or a country’s economy during a ise the gain by selling the asset period of crisis 2. actions taken by an organ- CT abbreviation corporation tax CT isation to protect itself when unexpected cum /k m/ preposition with cum events or situations occur that could threaten cum all / k m ɔ l/ adverb including all cum all its success or continued operation (NOTE: entitlements Crisis situations may result from external cum coupon / k m ku pɒn/ adverb cum coupon factors such as the development of a new product by a competitor or changes in legis- with a coupon attached or before interest lation, or from internal factors such as a due on a security is paid cum dividend / k m dividend/, cum cum dividend product failure or faulty decision-making, and often involve the need to make quick div adverb including the next dividend still decisions on the basis of uncertain or to be paid cum rights / k m raits/ adverb sold with cum rights incomplete information.) critical-path method / kritik(ə)l pɑ θ critical-path method the right to purchase new shares in a rights meθəd/ noun a technique used in project issue cumulative / kju mjυlətiv/ adjective cumulative management to identify the activities within a project that are critical to its success, usu- added to regularly over a period of time cumulative interest / kju mjυlətiv cumulative interest ally by showing on a diagram or flow chart the order in which activities must be carried intrəst/ noun the total amount of interest out so that the project can be completed in that has been charged on a loan up to a given the shortest time and at the least cost point cumulative preference share cumulative interest ‘…need initial project designs to be more complex or need to generate Critical Path / kju mjυlətiv pref(ə)rəns ʃeə/ noun a
  • 68. Accounting.fm Page 62 Tuesday, February 13, 2007 1:40 PMcurrency 62preference share which will have the divi- interest rate margin may be offset bydend paid at a later date even if the company changes in the exchange rates whichis not able to pay a dividend in the current increase the value of the loan in the com-year (NOTE: The US term is cumulative pany’s balance sheet.preferred stock.) currency movements currency movements / k rənsicumulative weighted average cost mu vmənts/ plural noun fluctuations in thecurrency/ kju mjυlətiv weitid v(ə)rid kɒst/, value of the world’s currencies that occur ascumulative weighted average price they are traded/ kju mjυlətiv weitid v(ə)rid prais/ currency note / k rənsi nəυt/ noun a currency notenoun the average price per unit of stock bank notedelivered in a period calculated each time a currency reserves / k rənsi ri z vz/ currency reserves |new delivery is received. Compare periodic plural noun foreign money held by a govern-weighted average cost ment to support its own currency and to paycurrency / k rənsi/ noun 1. money incurrency its debtscoins and notes which is used in a particular currency swap / k rənsi swɒp/ noun 1. currency swapcountry 2. foreign currency, the currency of an agreement to use a certain currency foranother country (NOTE: Currency has no payments under a contract in exchange forplural when it refers to the money of one another currency (the two companiescountry: He was arrested trying to take cur- involved can each buy one of the currenciesrency out of the country.) at a more favourable rate than the other) 2. ‘…today’s wide daily variations in the buying or selling of a fixed amount of a exchange rates show the instability of a foreign currency on the spot market, and the system based on a single currency, namely selling or buying of the same amount of the the dollar’ [Economist] same currency on the forward market ‘…the level of currency in circulation current account / k rənt ə kaυnt/ noun current account | increased to N4.9 billion in the month of 1. an account in an bank from which the cus- August’ [Business Times (Lagos)] tomer can withdraw money when he or shecurrency backing / k rənsi b kiŋ/currency backing wants. Current accounts do not always paynoun gold or government securities which interest. ć to pay money into a currentmaintain the strength of a currency account Also called cheque accountcurrency band / k rənsi b nd/ nouncurrency band (NOTE: The US term is checking account.)the exchange rate levels between which a 2. an account of the balance of payments ofcurrency is allowed to move without full a country relating to the sale or purchase ofdevaluation raw materials, goods and invisiblescurrency basket / k rənsi bɑ skit/ current assets / k rənt sets/ pluralcurrency basket current assetsnoun a group of currencies, each of which is noun the assets used by a company in itsweighted, calculated together as a single ordinary work, e.g. materials, finishedunit against which another currency can be goods, cash and monies due, and which aremeasured held for a short time onlycurrency clause / k rənsi klɔ z/ noun a current cost / k rənt kɒst/ noun thecurrency clause current costclause in a contract which avoids problems amount it would cost to replace an asset atof payment caused by changes in exchange current pricesrates, by fixing the exchange rate for the var- current cost accounting / k rənt current cost accountingious transactions covered by the contract kɒst ə kaυntiŋ/ noun a method of |currency futures / k rənsi fju tʃəz/currency futures accounting in which assets are valued at theplural noun purchases of foreign currency amount it would cost to replace them, ratherfor delivery at a future date than at the original cost. Abbreviation CCA.currency hedging / k rənsi hed iŋ/currency hedging Also called replacement cost accountingnoun a method of reducing exchange rate current liabilities / k rənt laiə bilitiz/ current liabilities |risk by diversifying currency holdings and plural noun the debts which a company hasadjusting them according to changes in to pay within the next accounting period. Inexchange rates a company’s annual accounts, these wouldcurrency mismatching / k rənsicurrency mismatching be debts which must be paid within the year mism tʃiŋ/ noun the activity of borrow- and are usually payments for goods or serv-ing money in the currency of a country ices received.where interest rates are low and depositing it current purchasing power / k rənt current purchasing powerin the currency of a country with higher p tʃisiŋ paυə/ noun a method ofinterest rates. The potential profit from the accounting which takes inflation into
  • 69. Accounting.fm Page 63 Tuesday, February 13, 2007 1:40 PM 63 customs seal account by using constant monetary units customer service department customer service department (actual amounts multiplied by a general / k stəmə s vis di pɑ tmənt/ noun a | price index). Also called constant pur- department which deals with customers and chasing power their complaints and orders customise / k stəmaiz/, customize customise current ratio / k rənt reiʃiəυ/ noun a current ratio ratio of current assets to current liabilities verb to change something to fit the special showing if a company may not be able to needs of a customer ć We use customised meet its immediate debts computer terminals. customs / k stəmz/ plural noun the gov- customs current value / k rənt v lju / noun a current value figure that represents the amount by which ernment department which organises the current assets are greater than current liabil- collection of taxes on imports, or an office of ities this department at a port or airport ć He was current value accounting / k rənt current value accounting stopped by customs. ć Her car was searched v lju ə kaυntiŋ/ noun a reassessment of | by customs. Customs and Excise / k stəmz ən Customs and Excise the value of assets and liabilities eksaiz/ noun a former UK government current year / k rənt jiə/ noun the year current year in which an accounting period falls ć Under department which organised the collection of taxes on imports and also collected VAT. self-assessment, income is taxed on a cur- It merged with the Inland Revenue to form rent year basis – i.e. it is taxed in the year in HM Revenue & Customs in 2005. which it is received. customs barrier / k stəmz b riə/ customs barrier current yield / k rənt ji ld/ noun a div- current yield noun any provision intended to make trade idend calculated as a percentage of the cur- more difficult, e.g. a high level of duty rent price of a share on the stock market customs broker / k stəmz brəυkə/ customs broker curve /k v/ noun a line which is not curve noun a person or company that takes goods straight, e.g. a line on a graph ć The graph through customs for a shipping company shows an upward curve. customs customs clearance clearance / k stəmz cushion / kυʃ(ə)n/ noun money which cushion kliərəns/ noun 1. the act of passing goods allows a company to pay interest on its bor- through customs so that they can enter or rowings or to survive a loss ć We have sums leave the country 2. a document given by on deposit which are a useful cushion when customs to a shipper to show that customs cash flow is tight. duty has been paid and the goods can be custodian /k stəυdiən/ noun a bank shipped ć to wait for customs clearance custodian | whose principal function is to maintain and customs declaration / k stəmz deklə customs declaration | grow the assets contained in a trust reiʃ(ə)n/ noun a statement showing goods custom / k stəm/ noun the use of a shop custom being imported on which duty will have to by regular shoppers be paid ć to fill in a customs declaration customer / k stəmə/ noun a person or customer form customs duty / k stəmz dju ti/ noun a customs duty company that buys goods ć The shop was full of customers. ć Can you serve this cus- tax on goods imported into a country tomer first please? ć She’s a regular cus- customs entry point / k stəmz entri customs entry point tomer of ours. (NOTE: The customer may not pɔint/ noun a place at a border between two be the consumer or end user of the prod- countries where goods are declared to cus- uct.) toms customs examination / k stəmz i customs examination ‘…unless advertising and promotion is | done in the context of an overall customer z mineiʃ(ə)n/ noun the inspection of orientation, it cannot seriously be thought goods or baggage by customs officials of as marketing’ [Quarterly Review of customs formalities / k stəmz fɔ customs formalities | Marketing] m litiz/ plural noun a declaration of goods customer profitability / k stəmə customer profitability by the shipper and examination of them by prɒfitə biliti/ noun the amount of profit | customs generated by each individual customer. Usu- customs officer / k stəmz ɒfisə/ noun customs officer ally a small percentage of customers gener- a person working for the customs depart- ate the most profit. ment of a country customer profitability analysis customs seal / k stəmz si l/ noun a seal customer profitability analysis customs seal / k stəm prɒfitə biliti ə n lisis/ noun| | attached by a customs officer to a box, to analysis of the revenues and costs associated show that the contents have not passed with particular customers through customs
  • 70. Accounting.fm Page 64 Tuesday, February 13, 2007 1:40 PMcustoms tariff 64customs tariffcustoms tariff / k stəmz t rif/ noun a ‘Opec has on average cut production bylist of taxes to be paid on imported goods one third since 1979’ [Economist]customs unioncustoms union / k stəmz ju njən/ cut down (on) phrasal verb to reduce sud-noun an agreement between several coun- denly the amount of something used ć Thetries that goods can travel between them, government is cutting down on welfare ex-without paying duty, while goods from other penditure. ć The office is trying to cut downcountries have to pay special duties on electricity consumption. ć We have in-cut stalled networked computers to cut down oncut /k t/ noun 1. the sudden lowering of a paperwork.price, salary or the number of jobs ć price cutback / k tb k/ noun a reduction ć cutbackcuts or cuts in prices ˽ he took a cut in sal- cutbacks in government spendingary, he took a salary cut he accepted a cut-off / k t ɒf/ noun a date and procedure cut-offlower salary 2. a share in a payment ć Sheintroduces new customers and gets a cut of for isolating the flow of cash and goods,the sales rep’s commission. í verb 1. to stocktaking and the related documentation,lower something suddenly ć We are cutting to ensure that all aspects of a transaction areprices on all our models. ć We have taken dealt with in the same financial period CVP analysis / si vi pi ə n lisis/ CVP analysisout the second telephone line in order to try |to cut costs. 2. to reduce the number of noun same as cost-volume-profit analysis cycle / saik(ə)l/ noun a set of events which cyclesomething ‘…state-owned banks cut their prime rates happen in a regularly repeated sequence cyclical / siklik(ə)l/ adjective happening cyclical a percentage point to 11%’ [Wall Street Journal] in cycles cyclical factors / siklik(ə)l f ktəz/ cyclical factors ‘…the US bank announced a cut in its prime from 10½ per cent to 10 per cent’ plural noun the way in which a trade cycle [Financial Times] affects businesses
  • 71. Accounting.fm Page 65 Tuesday, February 13, 2007 1:40 PM D D/A abbreviation deposit account D/A dead money dead money / ded m ni/ noun money damages / d mid iz/ plural noun money damages which is not invested to make a profit claimed as compensation for harm done ć to deal deal /di l/ noun a business agreement, claim £1000 in damages ć to be liable for affair or contract ć The sales director set up damages ć to pay £25,000 in damages a deal with a Russian bank. ć The deal will D & B abbreviation Dun & Bradstreet D & B be signed tomorrow. ć They did a deal with danger money / deind ə m ni/ noun danger money an American airline. í verb to buy and sell extra money paid to employees in dangerous ˽ to deal in leather or options to buy and jobs ć The workforce has stopped work and sell leather or options asked for danger money. ć He decided to go dealer dealer / di lə/ noun 1. a person who buys to work on an oil rig because of the danger and sells ć a used-car dealer 2. a person or money offered as an incentive. firm that buys or sells on their own account, Datastream / deitəstri m/ noun a data Datastream not on behalf of clients system available online, giving information dealing dealing / di liŋ/ noun 1. the business of about securities, prices, stock exchange buying and selling on the Stock Exchange, transactions, etc. commodity markets or currency markets ˽ date of bill / deit əv bil/ noun a date date of bill dealing for or within the account buying when a bill will mature shares and selling the same shares during an date of maturity / deit əv mə tjυəriti/ date of maturity | account, which means that the dealer has noun same as maturity date only to pay the difference between the price of the shares bought and the price obtained date of record / deit əv rekɔ d/ noun date of record for them when they are sold 2. the business the date when a shareholder must be regis- of buying and selling goods tered to qualify for a dividend dear money date stamp / deit st mp/ noun a stamp date stamp dear money / diə m ni/ noun money with rubber figures which can be moved, which has to be borrowed at a high interest used for marking the date on documents rate, and so restricts expenditure by compa- nies. Also called tight money dawn raid /dɔ n reid/ noun a sudden dawn raid death benefit planned purchase of a large number of a death benefit / deθ benifit/ noun insur- company’s shares at the beginning of a day’s ance benefit paid to the family of someone trading (NOTE: Up to 15% of a company’s who dies in an accident at work death duty shares may be bought in this way, and the death duty / deθ dju ti/ noun same as purchaser must wait for seven days before inheritance tax purchasing any more shares. Sometimes a death in service death in service / deθ in s vis/ noun dawn raid is the first step towards a takeo- an insurance benefit or pension paid when ver of the target company.) someone dies while employed by a company day book / dei bυk/ noun a book with an day book death tax death tax / deθ t ks/ noun same as account of sales and purchases made each inheritance tax day debenture debenture /di bentʃə/ noun agreement to | DCF abbreviation discounted cash flow DCF repay a debt with fixed interest using the DD abbreviation direct debit DD company’s assets as security ć The bank dead account / ded ə kaυnt/ noun an dead account | holds a debenture on the company. account which is no longer used debenture bond debenture bond /di bentʃə bɒnd/ noun | dead loss / ded lɒs/ noun a total loss ć dead loss US 1. a certificate showing that a debenture The car was written off as a dead loss. has been issued 2. an unsecured loan
  • 72. Accounting.fm Page 66 Tuesday, February 13, 2007 1:40 PMdebenture capital 66debenture capital collects debts for other companies for adebenture capital /di bentʃə | k pit(ə)l/ noun capital borrowed by a commissioncompany, using its fixed assets as security debt collector / det kə lektə/ noun a debt collector |debenture holder /di bentʃə həυldə/debenture holder | person who collects debtsnoun a person who holds a debenture for debt-convertible bond / det kən debt-convertible bond |money lent v tib(ə)l bɒnd/ noun a floating-rate bonddebenture issue /di bentʃə iʃu / noundebenture issue | which can be converted to a fixed rate ofthe activity of borrowing money against the interest. ı droplock bond debt counselling / det kaυnsəliŋ/ debt counsellingsecurity of the company’s assetsdebenture stock /di bentʃə stɒk/ noundebenture stock | noun the work of advising people who are ina form of debt instrument in which a com- debt of the best ways to arrange theirpany guarantees payments on a fixed sched- finances so as to pay off their debts debt-equity ratio / det ekwiti reiʃiəυ/ debt-equity ratioule or at a fixed rate of interestdebit / debit/ noun an amount entered indebit noun a measure of a company’s ability toaccounts which shows an increase in assets repay its creditors, equal to its total longor expenses or a decrease in liabilities, reve- term debt divided by the total of sharehold-nue or capital. In accounts, debits are ers’ equity. ı gearing debt factoring / det f ktəriŋ/ noun the debt factoringentered in the left-hand column. Comparecredit business of buying debts at a discount. Adebitable / debitəb(ə)l/ adjective able todebitable factor collects a company’s debts when due,be debited and pays the creditor in advance part of the sum to be collected, so ‘buying’ the debt.debit balance / debit b ləns/ noun adebit balance debtor / detə/ noun a person who owes debtorbalance in an account showing that more moneymoney is owed than has been received ć debtor days / detə deiz/ plural noun the debtor daysBecause of large payments to suppliers, theaccount has a debit balance of £1,000. number of days on average that it takes a company to receive payment for what itdebit card / debit kɑ d/ noun a plasticdebit card sells. ı creditor dayscard, similar to a credit card, but which deb- debtors / detəz/ noun all money owed to debtorsits the holder’s account immediately throughan EPOS system a company as shown in the accounts debtors control account / detəz kən debtors control accountdebit column / debit kɒləm/ noun thedebit column |left-hand column in accounts showing the trəυl ə kaυnt/ noun an account used to |money paid or owed to others summarise the balances on the individual sales ledger accountsdebit entry / debit entri/ noun an entrydebit entry debtor side / detə said/ noun the debit debtor sideon the debit side of an account side of an accountdebit note / debit nəυt/ noun a notedebit note debtors ledger / detəz led ə/ noun debtors ledgershowing that a customer owes money ć We same as sales ledgerundercharged Mr Smith and had to send him debtors turnover ratio / detəz debtors turnover ratioa debit note for the extra amount. t nəυvə reiʃiəυ/ noun the average timedebits and credits / debits ən kredits/debits and credits which debtors take to payplural noun money which a company owes debt ratio / det reiʃiəυ/ noun the debts of debt ratioand money it receives, or figures which are a company shown as a percentage of itsentered in the accounts to record increases equity plus loan capitalor decreases in assets, expenses, liabilities, debt rescheduling / det ri ʃedju liŋ/ debt reschedulingrevenue or capital | noun the process of reorganising the way indebit side / debit said/ noun a left-handdebit side which debts are repaid. Debt reschedulingcolumn of accounts showing money owed or may be necessary if a company is unable topaid to others pay its debts and may involve postponingdebt /det/ noun money owed for goods ordebt debt payments, postponing payment ofservices ć The company stopped trading interest, or negotiating a new loan.with debts of over £1 million. ˽ he is in debt decile / desail/ noun one of a series of nine decileto the tune of £250,000 he owes £250,000 figures below which one tenth or severaldebt collection / det kə lekʃən/ noundebt collection | tenths of the total fallthe act of collecting money which is owed decimalisation / desim(ə)lai zeiʃ(ə)n/, decimalisation |debt collection agency / det kədebt collection agency | decimalization noun the process of chang- lekʃən eid ənsi/ noun a company which ing to a decimal system
  • 73. Accounting.fm Page 67 Tuesday, February 13, 2007 1:40 PM 67 deed of covenant decimalise / desim(ə)laiz/, decimalize over the last year. ć The economy declined decimalise verb to change something to a decimal sys- during the last government. ć The purchas- tem ing power of the pound declined over the decimal point / desim(ə)l pɔint/ noun a decimal point decade. dot which indicates the division between the ‘Saudi oil production has declined by three whole unit and its smaller parts, e.g. 4.75 quarters to around 2.5m barrels a day’ decimal system / desim(ə)l sistəm/ decimal system [Economist] noun a system of mathematics based on the ‘…this gives an average monthly decline number 10 of 2.15 per cent during the period’ [Busi- decision support system /di si (ə)n decision support system | ness Times (Lagos)] sə pɔ t sistəm/ noun a computer-based | ‘…share prices disclosed a weak tendency system which presents auditor judgments in right from the onset of business and a structured way and can be used to create declined further, showing losses over a audit programmes or document the assess- broad front’ [The Hindu] declining balance method /di klainiŋ declining balance method ment of business risk | decision theory /di si (ə)n θiəri/ noun decision theory | b ləns meθəd/ noun US same as reduc- the mathematical methods for weighing the ing balance method various factors in making decisions ć In decrease /di kri s/ verb to fall or to decrease | practice it is difficult to apply decision the- become less ć Imports are decreasing. ć ory to our planning. ć Students study deci- The value of the pound has decreased by sion theory to help them suggest strategies 5%. in case-studies. deduct /di d kt/ verb to take money away deduct | decision tree /di si (ə)n tri / noun a decision tree | from a total ć to deduct £3 from the price ć model for decision-making, showing the to deduct a sum for expenses ć After deduct- possible outcomes of different decisions ć ing costs the gross margin is only 23%. ć This computer programme incorporates a Expenses are still to be deducted. decision tree. deductible /di d ktib(ə)l/ adjective pos- deductible | declaration / deklə reiʃ(ə)n/ noun an declaration | sible to deduct official statement deduction /di d kʃən/ noun the remov- deduction | declaration date / deklə reiʃ(ə)n deit/ declaration date | ing of money from a total, or the amount of noun US the date on which a board of direc- money removed from a total ć Net salary is tors declares the dividend to be paid salary after deduction of tax and social declaration of bankruptcy security. ć The deduction from her wages declaration of bankruptcy / dekləreiʃ(ə)n əv b ŋkr ptsi/ noun an represented the cost of repairing the damage official statement that someone is bankrupt she had caused to the machinery. ˽ deduc- declaration of income / dekləreiʃ(ə)n declaration of income tions from salary, salary deductions, əv ink m/ noun same as income tax deductions at source money which a com- return pany removes from salaries to give to the declaration declaration of solvency of solvency government as tax, National Insurance con- / dekləreiʃ(ə)n əv sɒlv(ə)nsi/ noun a doc- tributions, etc. deed /di d/ noun a legal document or writ- deed ument, lodged with the Registrar of Compa- nies, that lists the assets and liabilities of a ten agreement company seeking voluntary liquidation to deed of arrangement / di d əv ə deed of arrangement | show that the company is capable of repay- reind mənt/ noun an agreement made ing its debts within 12months between a debtor and creditors whereby the declare /di kleə/ verb to make an official declare | creditors accept an agreed sum in settlement statement of something, or announce some- of their claim rather than make the debtor thing to the public ć to declare someone bankrupt bankrupt ć The company declared an deed of assignment / di d əv ə deed of assignment | interim dividend of 10p per share. sainmənt/ noun a document which legally declared /di kleəd/ adjective having been declared | transfers a property from a debtor to a cred- made public or officially stated itor declared value /di kleəd v lju / noun declared value deed of covenant / di d əv k vənənt/ deed of covenant | the value of goods entered on a customs dec- noun a legal document in which a person or laration organisation promises to pay a third party a decline /di klain/ verb to fall slowly or decline | sum of money on an annual basis. In certain decrease ć Shares declined in a weak mar- countries this arrangement may have tax ket. ć New job applications have declined advantages. For example, in the United
  • 74. Accounting.fm Page 68 Tuesday, February 13, 2007 1:40 PMdeed of partnership 68Kingdom, it is often used for making regular deferred expenditure /di f d ik deferred expenditure | |payments to a charity. spenditʃə/ noun expenditure incurred nowdeed of partnership / di d əvdeed of partnership but reflected in the accounts of future years pɑ tnəʃip/ noun agreement which sets up a deferred maintenance /di f d deferred maintenance |partnership meintənəns/ noun a failure to carry outdeed of transfer / di d əv tr nsf /deed of transfer maintenance, e.g. to machinery, thatnoun a document which transfers the owner- adversely affects its value, recorded inship of shares accounts deferred payment /di f d peimənt/ deferred paymentdeep pocket / di p pɒkit/ noun a com-deep pocket |pany which provides finance for another noun 1. money paid later than the agreeddefalcation / di f l keiʃ(ə)n/ noun thedefalcation | date 2. payment for goods by instalmentsillegal use of money by someone who is not over a long period deferred revenue /di f d revənju / deferred revenuethe owner but who has been trusted to look |after it noun revenue carried forward to future accounting periodsdefault /di fɔ lt/ noun a failure to carry outdefault | deferred tax /di f d t ks/ noun a tax deferred taxthe terms of a contract, especially failure to |pay back a debt í verb to fail to carry out the which may become payable at some laterterms of a contract, especially to fail to pay date deficiency /di fiʃ(ə)nsi/ noun a lack of deficiencyback a debt ć There was a major financial |crisis when the bank defaulted. something, or the amount by which some-defaulter /di fɔ ltə/ noun a person whodefaulter thing, e.g. a sum of money, is less than it should be ć There is a £10 deficiency in the |defaults petty cash.default notice /di fɔ lt nəυtis/ noun adefault notice deficit / defisit/ noun the amount by | deficitformal notice to a borrower stating that he or which spending is higher than incomeshe has defaulted on the loan and legal deficit financing / defisit fain nsiŋ/ deficit financingaction may be taken to recover the money.Also called notice of default (NOTE: The noun a type of financial planning by a gov-US term is notice of default.) ernment in which it borrows money to cover the difference between its tax income and itsdefer /di f / verb to put back to a laterdefer | expendituredate, to postpone ć We will have to defer deflation /di fleiʃ(ə)n/ noun a general deflationpayment until January. ć The decision has |been deferred until the next meeting. (NOTE: reduction in economic activity as a result ofdeferring – deferred) a reduced supply of money and credit, lead- ing to lower prices ć The oil crisis resulteddeferment /di f mənt/ noun the act ofdeferment | in worldwide deflation. Opposite inflationleaving until a later date ć deferment of pay-ment ć deferment of a decision ‘…the reluctance of people to spend is one of the main reasons behind 26 consecutivedeferred annuity /di f d ə nju əti/deferred annuity | | months of price deflation, a key economicnoun an investment that does not pay out ill that has led to price wars, depressed theuntil at least one year after the final premium profit margins of state enterprises and hithas been paid incomes among the rural population’deferred consideration /di f d kəndeferred consideration | | [Financial Times] sidə reiʃ(ə)n/ noun instalment payments deflationary /di fleiʃ(ə)n(ə)ri/ adjective deflationary | |for the acquisition of new subsidiaries usu- causing deflation ć The government hasally made in the form of cash and shares, introduced some deflationary measures inwhere the balance due after the initial the budget.deposit depends on the performance of the deflator /di fleitə/ noun the amount by deflator |business acquired which a country’s GNP is reduced to takedeferred cost /di f d kɒst/ noun a cost inflation into accountdeferred cost |with future benefit that extends beyond the degearing /di iəriŋ/ noun a reduction degearing |current accounting period in gearing, reducing a company’s loan capi-deferred credit /di f d kredit/ noundeferred credit | tal in relation to the value of its ordinaryincome received but not yet entered in sharesaccounts as income del credere / del kreidəri/ noun an del crederedeferred creditor /di f d kreditə/deferred creditor | amount added to a charge to cover the possi-noun a person who is owed money by a bility of not being paidbankrupt but who is paid only after all other del credere agent / del kreidəri del credere agentcreditors eid ənt/ noun an agent who receives a high
  • 75. Accounting.fm Page 69 Tuesday, February 13, 2007 1:40 PM 69 departmental accounts commission because he or she guarantees duction to meet the extra demand. 2. to ask payment by customers for something and expect to get it ć She delinquency /di liŋkwənsi/ noun US the delinquency | demanded a refund. ć The suppliers are fact of being overdue in payment of an demanding immediate payment of their out- account, an interest payment, etc. standing invoices. delinquent /di liŋkwənt/ adjective US delinquent | ‘…spot prices are now relatively stable in referring to an account or payment of tax the run-up to the winter’s peak demand’ which is overdue [Economist] deliver /di livə/ verb to transport goods to deliver | ‘…the demand for the company’s products a customer ˽ goods delivered free or free remained strong throughout the first six delivered goods goods transported to the months of the year with production and customer’s address at a price which includes sales showing significant increases’ [Busi- transport costs ˽ goods delivered on board ness Times (Lagos)] goods transported free to the ship or plane ‘…growth in demand is still coming from but not to the customer’s warehouse the private rather than the public sector’ [Lloyd’s List] delivered price /di livəd prais/ noun a delivered price | demand bill /di mɑ nd bil/ noun a bill of demand bill price which includes packing and transport | exchange which must be paid when payment delivery /di liv(ə)ri/ noun 1. a consign- delivery | is asked for ment of goods being delivered ć We take in demand price /di mɑ nd prais/ noun the demand price three deliveries a day. ć There were four | items missing in the last delivery. 2. the price at which a quantity of goods will be transport of a commodity to a purchaser 3. bought demerge /di m d / verb to separate a demerge the transfer of a bill of exchange or other | negotiable instrument to the bank which is company into several separate parts demerger /di m d ə/ noun the separa- demerger due to make payment | delivery cycle time /di liv(ə)ri saik(ə)l delivery cycle time | tion of a company into several separate taim/ noun the interval between the time of parts, especially used of companies which accepting an order and the time of making have grown by acquisition demise /di maiz/ noun 1. a death ć On his demise the final delivery | delivery month /di liv(ə)ri m nθ/ noun delivery month | demise the estate passed to his daughter. 2. a month in a futures contract when actual the act of granting a property on a lease í delivery will take place verb to grant property on a lease demonetisation /di m nitai zeiʃ(ə)n/, demonetisation delivery note /di liv(ə)ri nəυt/ noun a delivery note | | | list of goods being delivered, given to the demonetization noun the act of stopping a customer with the goods coin or note being used as money demonetise /di m nitaiz/, demonetize demonetise delivery of goods /di liv(ə)ri əv υdz/ delivery of goods | | noun the transport of goods to a customer’s verb to stop a coin or note being used as address money demurrage /di m rid / noun money paid demurrage delivery order /di liv(ə)ri ɔ də/ noun delivery order | | the instructions given by the customer to the to a customer when a shipment is delayed at person holding her goods, to tell her where a port or by customs demutualisation /di mju tjuəlai demutualisation and when to deliver them | | delivery time /di liv(ə)ri taim/ noun the delivery time | zeiʃ(ə)n/, demutualization noun the proc- number of days before something will be ess by which a mutual society, such as a delivered building society, becomes a publicly owned demand /di mɑ nd/ noun 1. an act of ask- demand | corporation demutualise /di mju tjuəlaiz/, demu- demutualise ing for payment 2. an act of asking for some- | thing and insisting on getting it ć The man- tualize /di mju tʃuə laiz/ verb to stop | | agement refused to give in to union demands having mutual status and become a publicly for a meeting. í verb 1. the need that cus- owned corporation by selling shares to the tomers have for a product or their eagerness general public on the stock market denomination /di nɒmi neiʃ(ə)n/ noun denomination to buy it ć There was an active demand for | | oil shares on the stock market. ć The factory a unit of money on a coin, banknote or stamp had to cut production when demand slack- ć We collect coins of all denominations for ened. ć The office cleaning company cannot charity. ć Small denomination notes are not keep up with the demand for its services. ˽ often counterfeited. to meet or fill a demand to supply what is departmental accounts departmental accounts needed ć The factory had to increase pro- / di pɑ tment(ə)l ə kaυnts/ plural noun |
  • 76. Accounting.fm Page 70 Tuesday, February 13, 2007 1:40 PMdependent variable 70accounts which analyse the sales of different depreciable /di pri ʃiəb(ə)l/ adjective depreciable |departments or products of a company possible to depreciateDepartment for Education anddependent variable depreciable asset /di pri ʃiəb(ə)l depreciable asset |Skills /di pɑ tmənt fər edjυ keiʃ(ə)n ən | | set/ noun an asset which will be used over skilz/ noun a British government depart- more than one accounting period, but whichment responsible for education and training. has a limited life and so can be depreciatedAbbreviation DFES depreciable cost /di pri ʃiəb(ə)l kɒst/ depreciable cost |Department of Trade and IndustryDepartment of Trade and Industry noun a cost that can be applied to more than/di pɑ tmənt əv treid ənd indəstri/ | one accounting periodnoun a British government department depreciable life /di pri ʃiəb(ə)l laif/ depreciable life |which deals with areas such as commerce, noun the period over which the cost of aninternational trade and the stock exchange. asset may be spreadAbbreviation DTI depreciate /di pri ʃieit/ verb 1. to make depreciate |dependent variabledependent variable /di pendənt | an allowance in accounts for the loss of veəriəb(ə)l/ noun a variable or factor value of an asset over time ć We depreciatewhich changes as a result of a change in our company cars over three years. 2. toanother (the ‘independent variable’) ć We lose value ć a share that has depreciated byare trying to understand the effects of sev- 10% over the year ć The pound has depre-eral independent variables on one depend- ciated by 5% against the dollar.ent variable, in this case, sales. depreciation /di pri ʃi eiʃ(ə)n/ noun 1. a depreciation | |deposit /di pɒzit/ noun 1. money placeddeposit | loss of value ć a share that has shown ain a bank for safe keeping or to earn interest depreciation of 10% over the year ć the2. money given in advance so that the thing depreciation of the pound against the dollarwhich you want to buy will not be sold to 2. the loss of value of an asset over time,someone else ć to pay a deposit on a watch which is recorded in accounts as an expenseć to leave £10 as deposit í verb 1. to put depreciation accounting /di pri ʃi depreciation accounting | |documents somewhere for safe keeping ć to eiʃ(ə)n ə kaυntiŋ/ noun the process of |deposit shares with a bank ć We have depos- spreading the cost of an asset over its usefulited the deeds of the house with the bank. ć lifeHe deposited his will with his solicitor. 2. to depreciation provision /di pri ʃi depreciation provisionput money into a bank account ć to deposit | |£100 in a current account eiʃ(ə)n prə vi (ə)n/ noun the amount of | depreciation, in relation to a particular asset,deposit account /di pɒzit ə kaυnt/deposit account | | that has been charged cumulatively to announ a bank account which pays interest but account since the asset was acquiredon which notice has to be given to withdraw depreciation rate /di pri ʃi eiʃ(ə)n reit/ depreciation ratemoney. Abbreviation D/A | | noun the rate at which an asset is depreci-depositary /di pɒzitəri/ noun US a per-depositary | ated each year in the company accountsson or corporation which can place money depress /di pres/ verb to reduce some- depressor documents for safekeeping with a depos- | thing ć Reducing the money supply has theitory. ı American Depositary Receipt effect of depressing demand for consumer(NOTE: Do not confuse with depository.) goods.depositor /di pɒzitə/ noun a person whodepositor depressed market /di prest mɑ kit/ depressed market | |deposits money in a bank, building society, noun a market where there are more goodsetc. than customersdepository /di pɒzit(ə)ri/ noun a persondepository deregulate /di re jυleit/ verb to remove deregulate | |or company with whom money or docu- government controls from an industry ć Thements can be deposited (NOTE: Do not con- US government deregulated the bankingfuse with depositary.) sector in the 1980s.deposit slip /di pɒzit slip/ noun USdeposit slip deregulation /di re jυ leiʃ(ə)n/ noun deregulation | | |same as paying-in slip the reduction of government control over andeposit-taking institution /di pɒzitdeposit-taking institution | industry ć the deregulation of the airlines teikiŋ insti tju ʃ(ə)n/, depository insti- | ‘…after the slump in receipts last year thattution /di pɒzit(ə)ri insti tju ʃ(ə)n/ noun | | followed liner shipping deregulation in thean institution which is licensed to receive US, carriers are probably still losingmoney on deposit from private individuals money on their transatlantic services. Butand to pay interest on it, e.g. a building soci- with a possible contraction in capacity andety, bank or friendly society healthy trade growth, this year has begun
  • 77. Accounting.fm Page 71 Tuesday, February 13, 2007 1:40 PM 71 director in a much more promising fashion than diminish /di miniʃ/ verb to become diminish | last’ [Lloyd’s List] smaller ć Our share of the market has derivative instruments /di rivətiv diminished over the last few years. derivative instruments | instrυmənts/, derivatives /di rivətivz/ | direct allocation method / dairekt direct allocation method plural noun any forms of traded security lə keiʃ(ə)n meθəd/, direct method /dai | | such as option contracts, which are derived rekt meθəd/ noun a method of relating the from ordinary bonds and shares, exchange costs incurred by service departments of a rates or stock market indices company to the production departments designated account / dezi neitid ə designated account | direct cost /dai rekt kɒst/ noun a cost direct cost | kaυnt/ noun an account opened and held in which can be directly related to the making one person’s name, but which also features of a product, i.e. its production cost another person’s name for extra identifica- direct cost variance /dai rekt kɒst direct cost variance | tion purposes veəriəns/ noun the difference between the detailed audit / di teild ɔ dit/ noun an detailed audit planned direct costs for a product and the audit that involves examining all or most of actual direct costs a company’s transactions, rather than a sam- direct debit /dai rekt debit/ noun a sys- direct debit | ple of them tem where a customer allows a company to devaluation / di v lju eiʃ(ə)n/ noun a devaluation | charge costs to his or her bank account auto- reduction in the value of a currency against matically and where the amount charged can other currencies ć the devaluation of the be increased or decreased with the agree- rand ment of the customer ć I pay my electricity devalue /di v lju / verb to reduce the devalue | bill by direct debit. Abbreviation DD value of a currency against other currencies direct expenses /dai rekt ik spensiz/ direct expenses | | ć The pound has been devalued by 7%. plural noun expenses excluding materials, development costs /di veləpmənt development costs | labour or purchase of stock for resale which kɒsts/ plural noun costs of developing new are incurred in making a product or improved products, sometimes also incor- directional testing /dai rekʃən(ə)l directional testing | porating a portion of standard overhead testiŋ/ noun an auditing technique by costs which work is reduced by testing debits only devise /di vaiz/ noun the act of giving devise | for overstatement and credits only for under- freehold land to someone in a will í verb to statement give freehold property to someone in a will directive /dai rektiv/ noun an order or directive | devisee /divai zi / noun a person who devisee | command to someone to do something ć receives freehold property in a will The Commission issued a directive on food DFES abbreviation Department for Educa- DFES prices. (NOTE: Directives from the European tion and Skills Union are binding, but member states can differential tariffs / difərenʃəl t rifs/ differential tariffs implement them as they wish. A directive is plural noun different tariffs for different binding as to the result to be achieved, but classes of goods as, e.g., when imports from leaves to the national authorities the choice some countries are taxed more heavily than of form and method.) similar imports from other countries direct labour costs /dai rekt leibə direct labour costs | digit / did it/ noun a single number ć a kɒsts/ plural noun the cost of employing digit seven-digit phone number those workers directly involved in producing digital analysis / did it(ə)l ə n ləsis/ digital analysis | a particular product, not including materials noun auditing techniques that investigate the or overheads digits in accounting numbers to reveal fraud direct materials cost /dai rekt mə direct materials cost | | and error tiəriəlz kɒst/ noun the cost of the materi- diluted earnings per share /dai lu tid als used in producing a particular product diluted earnings per share | rniŋz pə ʃeə/ noun a hypothetical meas- director /dai rektə/ noun a senior director | ure of the quality of a company’s earnings employee appointed by the shareholders to per share that assumes all convertible secu- help run a company, who is usually in charge rities are exercised of one or other of its main functions, e.g. dilution of shareholding /dai lu ʃ(ə)n dilution of shareholding | sales or human relations, and usually, but not əv ʃeəhəυldiŋ/ noun a situation where the always, a member of the board of directors ordinary share capital of a company has ‘…the research director will manage and been increased, but without an increase in direct a team of business analysts report- the assets so that each share is worth less ing on the latest developments in retail dis- than before tribution throughout the UK’ [Times]
  • 78. Accounting.fm Page 72 Tuesday, February 13, 2007 1:40 PMdirectorate 72directorate /dai rekt(ə)rət/ noun a group rupt to release someone from bankruptcydirectorate |of directors because they have has paid their debts 2. ˽Director of the Budget /dai rektər əvDirector of the Budget | to discharge a debt, to discharge your lia-ðə b d it/ noun the member of a govern- bilities to pay a debt or your liabilities in fullment in charge of the preparation of the 3. to dismiss an employee ć to discharge anbudget employee for negligence discharged bankruptdirector’s fees /dai rektəz fi z/ pluraldirector’s fees | discharged bankrupt /dis tʃɑ d d |noun money paid to a director for attend- b ŋkr pt/ noun a person who has beenance at board meetings released from being bankrupt because his ordirectorship /dai rektəʃip/ noun the postdirectorship | her debts have been paidof director ć She was offered a directorship disclaimer disclaimer /dis kleimə/ noun a legal |with Smith Ltd refusal to accept responsibilitydirectors’ report /dai rektəz ri pɔ t/directors’ report disclose | | disclose /dis kləυz/ verb to tell some- |noun the annual report from the board of thing that was previously unknown to otherdirectors to the shareholders people or secret ć The bank has no right todirect product profitability /dai rektdirect product profitability | disclose details of my account to the tax prɒd kt prɒfitə biliti/ noun an assess- | office.ment of the net profit generated by a partic- disclosure disclosure /dis kləυ ə/ noun the act of |ular product, which considers costs such as telling something that was previouslydistribution, warehousing and retailing but unknown to other people or secret ć The dis-not the original purchase price. Abbrevia- closure of the takeover bid raised the pricetion DPP of the shares.direct share ownership /dai rekt ʃeədirect share ownership disclosure of shareholding | disclosure of shareholding /dis | əυnəʃip/ noun the ownership of shares by kləυ ər əv ʃeəhəυldiŋ/ noun the act ofprivate individuals, buying or selling making public the fact that someone ownsthrough brokers, and not via holdings in unit shares in a companytrusts discount discount noun / diskaυnt/ 1. the percent-direct tax /dai rekt t ks/ noun a tax thatdirect tax | age by which the seller reduces the full priceis paid directly to the government, e.g. for the buyer ć to give a discount on bulkincome tax, as distinct from a tax such as purchases ˽ to sell goods at a discount orVAT that is paid indirectly at a discount price to sell goods below thedirect taxation /dai rekt t k seiʃ(ə)n/ normal price ˽ 10% discount for cash,direct taxation | |noun the process in which a government 10% cash discount you pay 10% less if youraises revenue in the form of direct taxes ć pay in cash 2. the amount by which some-The government raises more money by direct thing is sold for less than its value í verbtaxation than by indirect. /dis kaυnt/ 1. to reduce prices to increase |dirty float / d ti fləυt/ noun the process sales 2. ˽ to discount bills of exchange todirty floatof floating a currency, in which the govern- buy or sell bills of exchange for less than thement intervenes to regulate the exchange value written on them in order to cash themrate later 3. to react to something which maydisallow / disə laυ/ verb not to accept adisallow | happen in the future, such as a possible take-claim for insurance ć She claimed £2,000 over bid or currency devaluation 4. to calcu-for fire damage, but the claim was disal- late the value of future income or expendi-lowed. ture in present value terms discountabledisallowable / disə laυəb(ə)l/ adjective discountable / diskaυntəb(ə)l/ adjec-disallowable |not able to be allowed for tax relief ć The tive possible to discount ć These bills areuse of a car for private travel is a disallow- not discountable.able expense. Opposite allowable discounted cash flow discounted cash flow / diskaυntiddisburse /dis b s/ verb to pay moneydisburse | k ʃ fləυ/ noun the calculation of the fore-disbursement /dis b smənt/ noun thedisbursement | cast return on capital investment by dis-payment of money counting future cash flows from the invest-discharge /dis tʃɑ d / noun / distʃɑ d /discharge | ment, usually at a rate equivalent to the com-1. the act of paying a debt ˽ in full dis- pany’s minimum required rate of return.charge of a debt as full payment of a debt 2. Abbreviation DCF˽ in discharge of her duties as director discounted value discounted value / diskaυntid v lju /while carrying out her duties as director í noun the difference between the face valueverb 1. to pay a debt ˽ to discharge a bank- of a share and its lower market price
  • 79. Accounting.fm Page 73 Tuesday, February 13, 2007 1:40 PM 73 distribute discounter / diskaυntə/ noun a person or Inland Revenue by which business expenses discounter company that discounts bills or invoices, or paid to an employee are not declared for tax sells goods at a discount disposable personal income /di disposable personal income | discount for cash / diskaυnt fə k ʃ/ discount for cash spəυzəb(ə)l p s(ə)nəl ink m/ noun the noun same as cash discount income left after tax and National Insurance discount house / diskaυnt haυs/ noun discount house have been deducted. Also called take-home a financial company which specialises in pay discounting bills disposal /di spəυz(ə)l/ noun a sale ć a disposal | discount rate / diskaυnt reit/ noun the disposal of securities ć The company has discount rate rate charged by a central bank on any loans started a systematic disposal of its property it makes to other banks portfolio. ˽ lease or business for disposal a discrepancy /di skrepənsi/ noun a lack discrepancy | lease or business for sale of agreement between figures in invoices or disposals /di spəυz(ə)lz/ plural noun disposals | accounts assets which have been sold or scrapped discretion /di skreʃ(ə)n/ noun the ability discretion disqualification /dis kwɒlifi keiʃ(ə)n/ disqualification | | | to decide what should be done noun 1. the act of making someone disqual- discretionary account /di ified to do something 2. a court order which discretionary account | skreʃ(ə)n(ə)ri ə kaυnt/ noun a client’s | forbids a person from being a director of a account with a stockbroker, where the bro- company. A variety of offences, even those ker invests and sells at his or her own discre- termed as ‘administrative’, can result in tion without the client needing to give him some being disqualified for up to five years. specific instructions disqualify /dis kwɒlifai/ verb to make a disqualify | discretionary client /di skreʃ(ə)n(ə)ri discretionary client | person unqualified to do something, such as klaiənt/ noun a client whose funds are to be a director of a company managed on a discretionary basis dissolution / disə lu ʃ(ə)n/ noun the dissolution | discretionary cost /di skreʃ(ə)n(ə)ri discretionary cost | ending of a partnership kɒst/ noun a cost that can vary greatly dissolve /di zɒlv/ verb to bring to an end dissolve | within an accounting period and is deter- ć to dissolve a partnership mined by the appropriate budget holder distrain /di strein/ verb to seize goods to distrain discretionary funds /di skreʃ(ə)n(ə)ri discretionary funds | | pay for debts f ndz/ plural noun funds managed on a dis- distress /di stres/ noun the act of taking distress cretionary basis | discretionary trust /di skreʃ(ə)n(ə)ri discretionary trust | someone’s goods to pay for debts distress merchandise distress merchandise tr st/ noun a trust where the trustees /di stres | decide how to invest the income and when m tʃəndais/ noun US goods sold cheaply and how much income should be paid to the to pay a company’s debts distress sale /di stres seil/ noun a sale distress sale beneficiaries | diseconomies of scale /disi kɒnəmiz diseconomies of scale | of goods at low prices to pay a company’s əv skeil/ plural noun a situation where debts increased production leads to a higher pro- distributable /dis tribjυtəb(ə)l/ adjec- distributable | duction cost per unit or average production tive possible to distribute cost distributable profits /dis tribjυtəb(ə)l distributable profits | disequilibrium / disi kwi libriəm/ noun disequilibrium | prɒfits/ plural noun profits which can be an imbalance in the economy when supply distributed to shareholders as dividends if does not equal demand the directors decide to do so dishonoured cheque /dis ɒnəd tʃek/ dishonoured cheque distributable reserve /di stribjυtb(ə)l distributable reserve | | noun a cheque which the bank will not pay ri z v/ noun a reserve fund that is able to | because there is not enough money in the be distributed to shareholders in the form of account to pay it dividends disinvest / disin vest/ verb to reduce disinvest distribute /di stribju t/ verb 1. to share distribute | | investment by not replacing capital assets out dividends ć Profits were distributed when they wear out among the shareholders. 2. to send out disinvestment / disin vestmənt/ noun a disinvestment | goods from a manufacturer’s warehouse to reduction in capital assets by not replacing retail shops ć Smith Ltd distributes for sev- them when they wear out eral smaller companies. ć All orders are dispensation / dispen seiʃ(ə)n/ noun dispensation | distributed from our warehouse near arrangement between an employer and the Oxford.
  • 80. Accounting.fm Page 74 Tuesday, February 13, 2007 1:40 PMdistributed profits 74distributed profits /di stribjυtid dividend check / dividend tʃek/ noundistributed profits dividend check | prɒfits/ plural noun profits passed to share- US same as dividend warrantholders in the form of dividends dividend cover / dividend k və/ noun dividend coverdistribution / distri bju ʃ(ə)n/ noun thedistribution | the ratio of profits to dividends paid toact of sending goods from the manufacturer shareholdersto the wholesaler and then to retailers ć dividend forecast / dividend fɔ kɑ st/ dividend forecastStock is held in a distribution centre which noun a forecast of the amount of an expecteddeals with all order processing. ć Distribu- dividendtion costs have risen sharply over the last 18 dividend growth model / dividend dividend growth modelmonths. ć She has several years’ experience rəυθ mɒd(ə)l/ noun a financial model thatas distribution manager. assesses the value of a company using fig- ‘British distribution companies are poised ures for its current and assumed future divi- to capture a major share of the European dend payments market’ [Management News] dividend dividend mandate mandate / dividenddistribution cost / distri bju ʃ(ə)ndistribution cost | m ndeit/ noun authorisation by a share- kɒst/, distribution expense / distri | holder to the company, to pay his or her div- bju ʃ(ə)n ik spens/, distribution over- | idends directly into a bank accounthead / distri bju ʃ(ə)n əυvəhed/ noun | dividend payout / dividend peiaυt/ dividend payoutexpenditure involved in warehousing, pack- noun money paid as dividends to sharehold-ing and sending products for sale ersdistribution network / distri bju ʃ(ə)ndistribution network dividend per share / dividend pə ʃeə/ dividend per share | netw k/ noun a series of points or small noun an amount of money paid as dividendwarehouses from which goods are sent all for each share heldover a country dividend warrant / dividend wɒrənt/ dividend warrantdistribution of incomedistribution of income noun a cheque which makes payment of a/ distribju ʃ(ə)n əv ink m/ noun the pay- dividend (NOTE: The US term is dividendment of dividends to shareholders check.)distributor /di stribjυtə/ noun a com-distributor dividend yield / dividend ji ld/ noun a dividend yield |pany which sells goods for another company dividend expressed as a percentage of thewhich makes them current market price of a sharedistributorship /di stribjυtəʃip/ noun dividend yield basis / dividend ji lddistributorship dividend yield basis |the position of being a distributor for a com- beisis/ noun a method of valuing shares inpany a company, by which the dividend per shareDistrict Bank / distrikt b ŋk/ noun oneDistrict Bank is divided by the expected dividend yield divisional headquarters /di vi (ə)nəl divisional headquartersof the 12 US banks that make up the Federal |Reserve System. Each District Bank is hed kwɔ təz/ plural noun the main office of |responsible for all banking activity in its a division of a companyarea. divisor /di vaizə/ noun a number divided divisor |diversificationdiversification /dai v sifi keiʃ(ə)n/ | | into another numbernoun the process in which a company begins document / dɒkjυmənt/ noun a paper, documentto engage in a new and different type of busi- especially an official paper, with writtenness information on it ć He left a file of docu-diversify /dai v sifai/ verb 1. to add newdiversify | ments in the taxi. ć She asked to see the doc-types of business to existing ones ć The uments relating to the case. documentary / dɒkjυ ment(ə)ri/ adjec- documentarycompany is planning to diversify into new |products. 2. to invest in different types of tive in the form of documents ć documen-shares or savings so as to spread the risk of tary evidenceloss documentary credit / dɒkjυment(ə)ri documentary creditdivestiture /dai vestitʃə/ noun the saledivestiture | kredit/ noun a credit document used inof an asset export trade, when a bank issues a letter ofdividend / dividend/ noun 1. a percent-dividend credit against shipping documentsage of profits paid to shareholders ˽ to raise documentation / dɒkjυmen teiʃ(ə)n/ documentation |or increase the dividend to pay out a higher noun all the documents referring to some-dividend than in the previous year ˽ to omit thing ć Please send me the complete docu-or pass the dividend to pay no dividend 2. mentation concerning the sale.a number or quantity that is to be divided by dollar / dɒlə/ noun a unit of currency used dollaranother number or quantity in the US and other countries such as Aus-
  • 81. Accounting.fm Page 75 Tuesday, February 13, 2007 1:40 PM 75 draft tralia, Bahamas, Barbados, Bermuda, Bru- tion is accounted for on both the credit and nei, Canada, Fiji, Hong Kong, Jamaica, New debit side of an account Zealand, Singapore and Zimbabwe ć The double taxation / d b(ə)l t k seiʃ(ə)n/ double taxation | US dollar rose 2%. ć They sent a cheque for noun the act of taxing the same income fifty Canadian dollars. ć It costs six Austral- twice ian dollars. double taxation agreement / d b(ə)l double taxation agreement dollar area / dɒlər eəriə/ noun an area of dollar area t k seiʃ(ə)n ə ri mənt/, double taxa- | | the world where the US dollar is the main tion treaty / d b(ə)l t k seiʃ(ə)n tri ti/ | trading currency noun an agreement between two countries dollar balances / dɒlə b lənsiz/ plural dollar balances that a person living in one country shall not noun a country’s trade balances expressed in be taxed in both countries on the income US dollars earned in the other country double taxation relief / d b(ə)l t k double taxation relief dollar-cost averaging / dɒlər kɒst dollar-cost averaging | v(ə)rid iŋ/ noun ‘ pound-cost averag- seiʃ(ə)n ri li f/ noun a reduction of tax | ing payable in one country by the amount of tax on income, profits or capital gains already dollar crisis / dɒlə kraisis/ noun a fall in dollar crisis paid in another country the exchange rate for the US dollar doubtful / daυtf(ə)l/ adjective ˽ doubtful doubtful dollar gap / dɒlə p/ noun a situation dollar gap debt a debt which may never be paid ˽ where the supply of US dollars is not enough doubtful loan a loan which may never be to satisfy the demand for them from over- repaid seas buyers doubtful debt provision / daυtf(ə)l doubtful debt provision dollar millionaire / dɒlə miljə neə/ dollar millionaire | det prə vi (ə)n/ noun ‘ bad debt provi- | noun a person who has more than one mil- sion lion dollars doubtful loan / daυtf(ə)l ləυn/ noun a doubtful loan dollar stocks / dɒlə stɒks/ plural noun dollar stocks loan which may never be repaid shares in US companies downgrade / daυn reid/ verb 1. to downgrade domestic production /də mestik prə domestic production | | reduce the status of an employee or position d kʃən/ noun the production of goods for ć The post was downgraded in the company use in the home country reorganisation. 2. to revise an earlier assess- domicile / dɒmisail/ noun the country domicile ment of a company’s future financial posi- where someone lives or where a company’s tion, or of the return on an investment, to office is registered í verb ˽ she is domi- give a less favourable likely outcome ciled in Denmark she lives in Denmark down payment / daυn peimənt/ noun down payment officially part of a total payment made in advance ć donation /dəυ neiʃ(ə)n/ noun a gift, espe- donation | We made a down payment of $100. downside factor / daυnsaid f ktə/, downside factor cially to a charity donee / dəυ ni / noun a person who donee | downside potential / daυnsaid pə | receives a gift from a donor tenʃ(ə)l/ noun the possibility of making a loss in an investment donor / dəυnə/ noun a person who gives, donor especially someone who gives money downside risk / daυnsaid risk/ noun the downside risk risk that an investment will fall in value. dormant / dɔ mənt/ adjective no longer dormant Opposite upside potential active or no longer operating down time / daυn taim/ noun the time down time dormant account / dɔ mənt ə kaυnt/ dormant account | when a machine is not working or not avail- noun a bank account which is no longer used able because it is broken or being mended dormant company / dɔ mənt dormant company downturn / daυnt n/ noun a downward downturn k mp(ə)ni/ noun company which has not trend in sales or profits ć a downturn in the made any transactions during an accounting market price ć The last quarter saw a down- period turn in the economy. dot.com / dɒt kɒm/, dot-com / dɒt dot.com DPP abbreviation direct profit profitability DPP kɒm/ noun a business that markets its prod- draft /drɑ ft/ noun 1. an order for money to draft ucts through the Internet, rather than by be paid by a bank ć We asked for payment by using traditional marketing channels banker’s draft. 2. a first rough plan or docu- double-entry bookkeeping / d b(ə)l ment which has not been finished ć The double-entry bookkeeping entri bυkki piŋ/ noun the most com- finance depart ć A draft of the contract or monly used system of bookkeeping, based The draft contract is waiting for the MD’s on the principle that every financial transac- comments. ć He drew up the draft agree-
  • 82. Accounting.fm Page 76 Tuesday, February 13, 2007 1:40 PMdrafting 76ment on the back of an envelope. í verb to cent in urban areas during the period undermake a first rough plan of a document ć to review’ [Business Times (Lagos)]draft a letter ć to draft a contract ć The ‘…corporate profits for the first quartercontract is still being drafted or is still in the showed a 4 per cent drop from last year’sdrafting stage. final three months’ [Financial Times]drafting / drɑ ftiŋ/ noun an act of prepar- ‘…since last summer American interestdraftinging the draft of a document ć The drafting of rates have dropped by between three andthe contract took six weeks. four percentage points’ [Sunday Times] droplock bond / drɒplɒk bɒnd/ noun a droplock bonddrain /drein/ noun a gradual loss of moneydrainflowing away ć The costs of the London floating rate bond which will convert to aoffice are a continual drain on our fixed rate of interest if interest rates fall toresources. í verb to remove something some level. ı debt-convertible bondgradually ć The expansion plan has drained dry goods / drai υdz/ plural noun cloth, dry goodsall our profits. ć The company’s capital clothes and household goodsresources have drained away. DTI abbreviation Department of Trade and DTIdraw /drɔ / verb 1. to take money away ćdraw Industryto draw money out of an account 2. to write dual currency bond / dju əl k rənsi dual currency bonda cheque ć She paid the invoice with a bɒnd/ noun a bond which is paid for in onecheque drawn on an Egyptian bank. (NOTE: currency but which is repayable in anotherdrawing – drew – has drawn) on redemptiondraw up phrasal verb to write a legal docu- dual listing / dju əl listiŋ/ noun the list- dual listingment ć to draw up a contract or an agree-ment ć to draw up a company’s articles of ing of a share on two stock exchanges dual pricing / dju əl praisiŋ/ noun the dual pricingassociationdrawback / drɔ b k/ noun 1. somethingdrawback practice of setting different prices for awhich is not convenient or which is likely to given product in the different market incause problems ć One of the main draw- which it is sold dual resident / dju əl rezid(ə)nt/ noun dual residentbacks of the scheme is that it will take sixyears to complete. 2. a rebate on customs a person who is legally resident in two coun-duty for imported goods when these are then tries dud /d d/ noun, adjective referring to a dudused in producing exportsdrawdown / drɔ daυn/ noun the act ofdrawdown coin or banknote that is false or not good, ordrawing money which is available under a something that does not do what it is sup-credit agreement posed to do (informal) ć The £50 note was adrawee /drɔ i / noun the person or bankdrawee | dud. dud cheque / d d tʃek/ noun a cheque dud chequeasked to make a payment by a drawerdrawer / drɔ ə/ noun the person whodrawer which cannot be cashed because the personwrites a cheque or a bill asking a drawee to writing it does not have enough money in thepay money to a payee account to pay it due /dju / adjective owed ć a sum due from duedrawing account / drɔ iŋ ə kaυnt/drawing account a debtor ˽ to fall or become due to be ready |noun a current account, or any account fromwhich the customer may take money when for paymenthe or she wants ‘…many expect the US economic indica-drawings / drɔ iŋz/ plural noun money ordrawings tors for April, due out this Thursday, totrading stock taken by a partner from a part- show faster economic growth’ [Australiannership, or by a sole trader from his or her Financial Review] due date / dju deit/ noun the date on due datebusinessdrawings account / drɔ iŋz ə kaυnt/drawings account | which a debt is required to be paid due diligence / dju dilid əns/ noun due diligencenoun an account showing amounts drawn bypartners in a partnership the examination of a company’s accountsdrop /drɒp/ noun a fall ć a drop in sales ćdrop prior to a potential takeover by anotherSales show a drop of 10%. ć The drop in organisation. This assessment is oftenprices resulted in no significant increase in undertaken by an independent third party. dues /dju z/ plural noun orders taken but duessales. í verb to fall ć Sales have dropped by10% or have dropped 10%. ć The pound not supplied until new stock arrivesdropped three points against the dollar. dumping / d mpiŋ/ noun the act of get- dumping ‘…while unemployment dropped by 1.6 ting rid of excess goods cheaply in an over- per cent in the rural areas, it rose by 1.9 per seas market ć The government has passed
  • 83. Accounting.fm Page 77 Tuesday, February 13, 2007 1:40 PM 77 duty-paid goods anti-dumping legislation. ć Dumping of worth of European goods’ [Globe and goods on the European market is banned. Mail (Toronto)] Dun & Bradstreet / d n ən br dstri t/ Dun & Bradstreet ‘…the Department of Customs and Excise noun an organisation which produces collected a total of N79m under the new reports on the financial rating of companies, advance duty payment scheme’ [Business and also acts as a debt collection agency. Times (Lagos)] Abbreviation D&B duty-free duty-free / dju ti fri / adjective, adverb duty / dju ti/ noun a tax that has to be paid duty sold with no duty to be paid ć She bought ć Traders are asking the government to take duty-free perfume at the airport. ć He the duty off alcohol or to put a duty on ciga- rettes. bought the watch duty-free. duty-paid goods ‘Canadian and European negotiators duty-paid goods / dju ti peid υdz/ agreed to a deal under which Canada could plural noun goods where the duty has been lower its import duties on $150 million paid
  • 84. Accounting.fm Page 78 Tuesday, February 13, 2007 1:40 PM Ee- /i / prefix referring to electronics or the culation is based on average earnings overe-Internet three years. 2. the profit made by a companyEAA abbreviation European AccountingEAA ‘…the US now accounts for more than halfAssociation of our world-wide sales. It has made a huge contribution to our earnings turna-e. & o.e. abbreviation errors and omissionse. & o.e. round’ [Duns Business Month]excepted ‘…last fiscal year the chain reported aearly withdrawal / li wið drɔ əl/ nounearly withdrawal | 116% jump in earnings, to $6.4 million orthe act of withdrawing money from a deposit $1.10 a share’ [Barrons]account before the due date ć Early with- earnings before interest, taxes, earnings before interest, taxes, depreciation and amortisationdrawal usually incurs a penalty. depreciation and amortisationearmarkearmark / iəmɑ k/ verb to reserve for a / niŋz bi fɔ intrəst t ksiz di | |special purpose ć to earmark funds for a pri ʃieiʃ(ə)n ənd ə mɔ tai zeiʃ(ə)n/ plu- | |project ć The grant is earmarked for com- ral noun the earnings generated by a busi-puter systems development. ness’s fundamental operating performance,earnearn / n/ verb 1. to be paid money for frequently used in accounting ratios forworking ć to earn £100 a week ć How much comparison with other companies. Interestdo you earn in your new job? 2. to produce on borrowings, tax payable on those profits,interest or dividends ć a building society depreciation, and amortisation are excludedaccount which earns interest at 10% ć What on the basis that they can distort the under-level of dividend do these shares earn? lying performance. Abbreviation EBITDA earnings before interest and tax earnings before interest and taxearned income / nd ink m/ nounearned incomeincome from wages, salaries, pensions, fees, / niŋz bi fɔ intrəst ən t ks/ noun the |rental income, etc., as opposed to ‘unearned’ amount earned by a business before deduc-income from investments tions are made for tax and interest payments.earnest Abbreviation EBITearnest / nist/ noun money paid as an earnings cap / niŋz k p/ noun the earnings capinitial payment by a buyer to a seller, to upper limit on the amount of salary that canshow commitment to the contract of sale be taken into account when calculating pen-earning capacityearning capacity / niŋ kə p siti/, | sionsearning power / niŋ paυə/ noun the earnings growth / niŋz rəυθ/ noun earnings growthamount of money someone should be able to an increase in profit per shareearn earnings performance / niŋz pə earnings performance |earning potential / niŋ pə tenʃəl/earning potential | fɔ məns/ noun a way in which shares earnnoun 1. the amount of money a person dividendsshould be able to earn in his or her profes- earnings per share / niŋz pə ʃeə/ earnings per sharesional capacity 2. the amount of dividend plural noun the money earned in dividendswhich a share is capable of earning per share, shown as a percentage of the mar-earning powerearning power / niŋ paυə/ noun the ket price of one share. Abbreviation EPSamount of money someone should be able to earnings-related contributions earnings-related contributionsearn ć She is such a fine designer that her / niŋz ri leitid kɒntri bju ʃ(ə)nz/ plu- | |earning power is very large. ral noun contributions to social securityearningsearnings / niŋz/ plural noun 1. salary, which rise as the employee’s earnings risewages, dividends or interest received ć High earnings-related pension / niŋz ri earnings-related pension |earnings in top management reflect the leitid penʃən/ noun a pension which isheavy responsibilities involved. ć The cal- linked to the size of a person’s salary
  • 85. Accounting.fm Page 79 Tuesday, February 13, 2007 1:40 PM 79 economic model earnings surprises / niŋz sə praiziz/ econometrics /i kɒnə metriks/ noun earnings surprises econometrics | | | plural noun an announced income level for a the study of the statistics of economics, company that is significantly higher or lower using computers to analyse these statistics than that forecast by analysts and make forecasts using mathematical earnings yield / niŋz ji ld/ noun the earnings yield models economic / i kə nɒmik/ adjective 1. pro- economic money earned in dividends per share as a | percentage of the current market price of the viding enough money to make a profit ć The share flat is let at an economic rent. ć It is hardly ease /i z/ verb to fall a little ć The share ease economic for the company to run its own index eased slightly today. warehouse. 2. referring to the financial state easy market / i zi mɑ kit/ noun a mar- easy market of a country ć economic trends ć Economic ket where few people are buying, so prices planners are expecting a consumer-led are lower than they were before boom. ć The economic situation is getting worse. ć The country’s economic system easy money / i zi m ni/ noun 1. money easy money needs more regulation. which can be earned with no difficulty 2. a ‘…each of the major issues on the agenda loan available on easy repayment terms at this week’s meeting is important to the easy money policy / i zi m ni pɒlisi/ easy money policy government’s success in overall economic noun a government policy of expanding the management’ [Australian Financial economy by making money more easily Review] available, e.g. through lower interest rates economical / i kə nɒmik(ə)l/ adjective economical | and easy access to credit saving money or materials or being less easy terms / i zi t mz/ plural noun expensive ć This car is very economical. ˽ easy terms financial terms which are not difficult to an economical use of resources the fact of accept ć The shop is let on very easy terms. using resources as carefully as possible EBIT / i bit/ abbreviation earnings before Economic and Monetary Union EBIT Economic and Monetary Union interest and tax / i kənɒmik ən m nit(ə)ri ju njən/ noun EBITDA / i bit dɑ / abbreviation earnings EBITDA | same as Eu