This document provides an overview of the topics covered in an English accounting course titled "ENGLISH4 ACCOUNTANT". The 20 units cover introductory accounting concepts like the accounting equation and bookkeeping, as well as more advanced topics such as management accounting, financial statements, taxes, auditing, and cost accounting. The final units cover payroll, budgets, international accounting, and accounting slang terms.
The document provides definitions for various accounting terms including account, accounting, accounts payable, accounts receivable, accrual basis accounting, aging schedule, amortization, annual percentage rate, annual report, assets, audit, balance sheet, bookkeeping, capital, cash basis, corporation, depreciation, dividend, earnings per share, expenses, income statement, inventory, journal, liabilities, net income, partnership, and proprietorship. It explains key concepts and calculations used in accounting and financial reporting.
The document discusses key concepts related to the balance sheet, including the purpose, format, time frame, and core issues of recognition, valuation, and classification of assets, liabilities, and shareholders' equity. It notes that assets are recognized based on potential future economic benefits from past transactions and if they can be reasonably measured. Valuation methods include historical cost and present value. Liabilities are probable future sacrifices from obligations from past events that can be measured. Equity is a plug calculated as assets minus liabilities.
The accounting cycle is a series of 9 steps that are repeated each reporting period to record business transactions and prepare financial statements. The steps are: 1) analyze transactions, 2) journalize transactions, 3) post to ledger accounts, 4) prepare an unadjusted trial balance, 5) make adjustments, 6) prepare an adjusted trial balance, 7) make financial statements, 8) close temporary accounts, and 9) prepare a post-closing trial balance to verify the accounting records. The cycle ensures transactions are properly recorded and financial statements are prepared accurately.
The document provides an overview of key financial statements including the balance sheet, income statement, and cash flow statement. It explains that the balance sheet is a snapshot of a business's assets and liabilities on a particular day, usually the end of the financial year. Assets include non-current assets like property, plant, and equipment, as well as current assets like inventory, accounts receivable, and cash. Liabilities include current liabilities like accounts payable and non-current liabilities like long-term debt. Equity includes share capital from the sale of shares and retained earnings consisting of undistributed net profits. The balance sheet balances because every financial transaction results in an equal change to at least one asset or liability account
This document provides an introduction to basic accounting concepts including the accounting equation, balance sheet, income statement, assets, liabilities, equity, revenue, expenses, and net income. It uses examples like tracking personal finances to demonstrate how to calculate assets, liabilities, equity, and how equity amounts change as revenue is added and expenses are deducted. Key terms are defined and accounting is framed as ensuring the basic accounting equation is always balanced.
The document provides information on key accounting concepts and the accounting process. It discusses how accounting measures and reports on business transactions and activities in financial terms. The accounting process involves analyzing, recording, classifying, summarizing, and reporting transactions. It also covers the basic accounting equation of assets equaling liabilities plus equity. Several key accounting concepts are defined, including the business entity, realization, accrual, and matching concepts.
The document provides definitions for various accounting terms including account, accounting, accounts payable, accounts receivable, accrual basis accounting, aging schedule, amortization, annual percentage rate, annual report, assets, audit, balance sheet, bookkeeping, capital, cash basis, corporation, depreciation, dividend, earnings per share, expenses, income statement, inventory, journal, liabilities, net income, partnership, and proprietorship. It explains key concepts and calculations used in accounting and financial reporting.
The document discusses key concepts related to the balance sheet, including the purpose, format, time frame, and core issues of recognition, valuation, and classification of assets, liabilities, and shareholders' equity. It notes that assets are recognized based on potential future economic benefits from past transactions and if they can be reasonably measured. Valuation methods include historical cost and present value. Liabilities are probable future sacrifices from obligations from past events that can be measured. Equity is a plug calculated as assets minus liabilities.
The accounting cycle is a series of 9 steps that are repeated each reporting period to record business transactions and prepare financial statements. The steps are: 1) analyze transactions, 2) journalize transactions, 3) post to ledger accounts, 4) prepare an unadjusted trial balance, 5) make adjustments, 6) prepare an adjusted trial balance, 7) make financial statements, 8) close temporary accounts, and 9) prepare a post-closing trial balance to verify the accounting records. The cycle ensures transactions are properly recorded and financial statements are prepared accurately.
The document provides an overview of key financial statements including the balance sheet, income statement, and cash flow statement. It explains that the balance sheet is a snapshot of a business's assets and liabilities on a particular day, usually the end of the financial year. Assets include non-current assets like property, plant, and equipment, as well as current assets like inventory, accounts receivable, and cash. Liabilities include current liabilities like accounts payable and non-current liabilities like long-term debt. Equity includes share capital from the sale of shares and retained earnings consisting of undistributed net profits. The balance sheet balances because every financial transaction results in an equal change to at least one asset or liability account
This document provides an introduction to basic accounting concepts including the accounting equation, balance sheet, income statement, assets, liabilities, equity, revenue, expenses, and net income. It uses examples like tracking personal finances to demonstrate how to calculate assets, liabilities, equity, and how equity amounts change as revenue is added and expenses are deducted. Key terms are defined and accounting is framed as ensuring the basic accounting equation is always balanced.
The document provides information on key accounting concepts and the accounting process. It discusses how accounting measures and reports on business transactions and activities in financial terms. The accounting process involves analyzing, recording, classifying, summarizing, and reporting transactions. It also covers the basic accounting equation of assets equaling liabilities plus equity. Several key accounting concepts are defined, including the business entity, realization, accrual, and matching concepts.
Financial accounting mgt101 power point slides lecture 21Abdul Wadood Ansary
This document discusses distinguishing between capital and revenue expenditures and receipts in financial accounting. It defines capital expenditures as those that benefit future periods, such as acquiring or improving fixed assets. Revenue expenditures benefit the current period, like day-to-day business expenses. While capital items affect the balance sheet, revenue items are included in the profit and loss account. The document provides examples and exceptions to help classify different types of expenditures and receipts as capital or revenue.
The document provides an overview of basic financial accounting concepts. It explains that accounting is based on the accounting equation of Assets = Liabilities + Owners' Equity. The balance sheet expresses this equation by listing assets, liabilities, and owners' equity. It also defines key elements like assets, liabilities, owners' equity, revenues and expenses. Transactions must follow the accounting equation and be recorded and analyzed to maintain accurate financial records.
M6 L1 Financial Documents Used in a Small BusinessNCVPS
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions, and that the journal and ledger are used to record transactions with debits and credits. It also defines accounting concepts like assets, liabilities, revenues, and expenses. Finally, it outlines the cash, accrual, and mixed bases of accounting.
Ammad awan glasgow - basic concepts of financial accountingAmmadAwanGlasgow
Ammad Awan Glasgow says account manager’s are successful if they are good at networking, and building and sustaining relationships. Their business and potential to make money depends on how well they manage in those areas.
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
The accounting process involves collecting documents, posting journal entries, transferring balances to ledger accounts, preparing a trial balance, making adjustments, creating an adjusted trial balance, preparing financial statements, making post-closing entries, and generating a post-closing trial balance. Source documents are collected and analyzed throughout the accounting period. Journal entries are posted using double entry accounting. Ledger accounts track debit and credit balances. An initial trial balance is prepared, then adjustment entries are made and an adjusted trial balance is created to develop financial statements showing the firm's profits, losses, and financial health. Finally, revenue and expense accounts are closed out and balances transferred in post-closing entries.
Here are the solutions to the selected problems from Chapter 17:
P17-7A:
Accounts receivable, December 31, 2009 $90,000
Estimated uncollectible accounts (3% of receivables) 2,700
Net accounts receivable $87,300
Accounts receivable, December 31, 2010 $110,000
Estimated uncollectible accounts (5% of receivables) 5,500
Net accounts receivable $104,500
Increase in net accounts receivable $17,200
P17-9A:
Accounts receivable, January 1 $80,000
Credit sales for January 150,000
Collections for January (120,000)
This document provides details on preparing profit and loss accounts and balance sheets. It begins by defining key accounting concepts like revenue, expenses, net profit, and the difference between cash basis and accrual basis accounting. It then explains the purpose and preparation of key financial statements like the trading account, profit and loss account, and balance sheet. The trading account is used to calculate gross profit/loss, while the profit and loss account calculates net profit/loss. The balance sheet presents the financial position of a business on a given date by listing assets, liabilities, and capital. Manufacturing accounts are also discussed for businesses that manufacture goods.
This document provides definitions and explanations of key concepts in bookkeeping and accounting. It defines bookkeeping as recording business transactions in an organized manner. The double-entry system is described as recording each transaction with two entries, one as a debit and one as a credit. Advantages of the double-entry system include ensuring accuracy, enabling calculation of profits, and preventing fraud. Disadvantages include the cost and complexity of maintaining multiple accounting records.
Basic Concepts of Financial Accounting include Assets Liabilities & Capital Types also Discuss purchases sales all terms and include other Basics 50 + Terms
It’s very helpful for student as well as for Teachers
This document analyzes various techniques used to manipulate financial reports and commit accounting fraud, known as "financial shenanigans". It identifies 7 categories of earnings manipulation including recording revenue and expenses prematurely, improperly shifting items between periods, and using misleading non-GAAP metrics. It also details 4 categories of cash flow manipulation such as misclassifying financing cash flows as operating. Warning signs of potential fraud are provided for each technique. The goal is to help investors detect financial report issues and protect against accounting deception.
Wayne Lippman presents Accounting BasicsWayne Lippman
Wayne Lippman presents Accounting Basics. This basic overview of the accounting process from Wayne Lippman CPA covers the basic principals of accounting. It includes discussions of accounting ethics, accounting process, roles, Generally Accepted Accounting Practices (GAAP).
How to completing accounting cycle with worksheet.
This for you that interest to lean how to completing accounting system with manual. You gonna learn about basic off accounting a lot.
Here are the key qualitative characteristics of useful accounting information according to accounting standards:
Relevance - Capable of making a difference in the decisions made by users. Information is relevant if it is timely and can influence decisions.
Reliability - Information must be free from material error and bias. It must faithfully represent what it purports to represent.
Comparability - Users must be able to compare the financial statements of an entity through time to identify trends in its financial position and performance. Comparability is also important for users to compare different entities.
Understandability - Information must be presented clearly and concisely so that users who have a reasonable knowledge can comprehend its meaning.
Timeliness - To be useful
The document discusses the analysis of balance sheets and profit and loss statements. It defines various line items that appear on both, such as sources of funds, uses of funds, capital, reserves, liabilities, assets, revenue, expenses, and profits. Key aspects covered include classification of current and non-current items, treatment of investments, provisions, and the valuation of inventory.
This document provides definitions for common accounting terminology presented by Ms. Komal Mahajan. It defines key terms related to financial accounting like entity, sales, purchases, revenue, receipts, payments, cost of goods sold, expenses, gross profit, assets, liabilities, owners' equity, accounting equation, debit, credit, journal, ledger, trial balance, profit and loss statement, balance sheet, cash flow statement, and financial statements. It also discusses accounting concepts like the cash basis and accrual basis of accounting, financial accounting, cost accounting, management accounting, single and double entry systems of accounting, and the accounting cycle.
The document provides an overview of how to analyze key components of a balance sheet, including assets, liabilities, and shareholders' equity. It then presents a sample balance sheet for Coca-Cola, discussing current assets like cash, receivables, inventory, and current liabilities like accounts payable. Key metrics for evaluating assets and liabilities, such as current ratio and inventory turnover, are also covered.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
Êtes-vous prêt à échanger avec un nouvel arrivant ayant occupé la même profession que vous dans son pays d'origine, et ainsi l'aider à comprendre le marché du travail québécois dans votre secteur? N'hésitez pas à partager à votre réseau de contacts et nous aider ainsi à realiser nos jumelages !
Financial accounting mgt101 power point slides lecture 21Abdul Wadood Ansary
This document discusses distinguishing between capital and revenue expenditures and receipts in financial accounting. It defines capital expenditures as those that benefit future periods, such as acquiring or improving fixed assets. Revenue expenditures benefit the current period, like day-to-day business expenses. While capital items affect the balance sheet, revenue items are included in the profit and loss account. The document provides examples and exceptions to help classify different types of expenditures and receipts as capital or revenue.
The document provides an overview of basic financial accounting concepts. It explains that accounting is based on the accounting equation of Assets = Liabilities + Owners' Equity. The balance sheet expresses this equation by listing assets, liabilities, and owners' equity. It also defines key elements like assets, liabilities, owners' equity, revenues and expenses. Transactions must follow the accounting equation and be recorded and analyzed to maintain accurate financial records.
M6 L1 Financial Documents Used in a Small BusinessNCVPS
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
This document defines key accounting terminology used in bookkeeping and financial reporting. It explains that bookkeeping is the systematic recording of financial transactions, and that the journal and ledger are used to record transactions with debits and credits. It also defines accounting concepts like assets, liabilities, revenues, and expenses. Finally, it outlines the cash, accrual, and mixed bases of accounting.
Ammad awan glasgow - basic concepts of financial accountingAmmadAwanGlasgow
Ammad Awan Glasgow says account manager’s are successful if they are good at networking, and building and sustaining relationships. Their business and potential to make money depends on how well they manage in those areas.
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
The accounting process involves collecting documents, posting journal entries, transferring balances to ledger accounts, preparing a trial balance, making adjustments, creating an adjusted trial balance, preparing financial statements, making post-closing entries, and generating a post-closing trial balance. Source documents are collected and analyzed throughout the accounting period. Journal entries are posted using double entry accounting. Ledger accounts track debit and credit balances. An initial trial balance is prepared, then adjustment entries are made and an adjusted trial balance is created to develop financial statements showing the firm's profits, losses, and financial health. Finally, revenue and expense accounts are closed out and balances transferred in post-closing entries.
Here are the solutions to the selected problems from Chapter 17:
P17-7A:
Accounts receivable, December 31, 2009 $90,000
Estimated uncollectible accounts (3% of receivables) 2,700
Net accounts receivable $87,300
Accounts receivable, December 31, 2010 $110,000
Estimated uncollectible accounts (5% of receivables) 5,500
Net accounts receivable $104,500
Increase in net accounts receivable $17,200
P17-9A:
Accounts receivable, January 1 $80,000
Credit sales for January 150,000
Collections for January (120,000)
This document provides details on preparing profit and loss accounts and balance sheets. It begins by defining key accounting concepts like revenue, expenses, net profit, and the difference between cash basis and accrual basis accounting. It then explains the purpose and preparation of key financial statements like the trading account, profit and loss account, and balance sheet. The trading account is used to calculate gross profit/loss, while the profit and loss account calculates net profit/loss. The balance sheet presents the financial position of a business on a given date by listing assets, liabilities, and capital. Manufacturing accounts are also discussed for businesses that manufacture goods.
This document provides definitions and explanations of key concepts in bookkeeping and accounting. It defines bookkeeping as recording business transactions in an organized manner. The double-entry system is described as recording each transaction with two entries, one as a debit and one as a credit. Advantages of the double-entry system include ensuring accuracy, enabling calculation of profits, and preventing fraud. Disadvantages include the cost and complexity of maintaining multiple accounting records.
Basic Concepts of Financial Accounting include Assets Liabilities & Capital Types also Discuss purchases sales all terms and include other Basics 50 + Terms
It’s very helpful for student as well as for Teachers
This document analyzes various techniques used to manipulate financial reports and commit accounting fraud, known as "financial shenanigans". It identifies 7 categories of earnings manipulation including recording revenue and expenses prematurely, improperly shifting items between periods, and using misleading non-GAAP metrics. It also details 4 categories of cash flow manipulation such as misclassifying financing cash flows as operating. Warning signs of potential fraud are provided for each technique. The goal is to help investors detect financial report issues and protect against accounting deception.
Wayne Lippman presents Accounting BasicsWayne Lippman
Wayne Lippman presents Accounting Basics. This basic overview of the accounting process from Wayne Lippman CPA covers the basic principals of accounting. It includes discussions of accounting ethics, accounting process, roles, Generally Accepted Accounting Practices (GAAP).
How to completing accounting cycle with worksheet.
This for you that interest to lean how to completing accounting system with manual. You gonna learn about basic off accounting a lot.
Here are the key qualitative characteristics of useful accounting information according to accounting standards:
Relevance - Capable of making a difference in the decisions made by users. Information is relevant if it is timely and can influence decisions.
Reliability - Information must be free from material error and bias. It must faithfully represent what it purports to represent.
Comparability - Users must be able to compare the financial statements of an entity through time to identify trends in its financial position and performance. Comparability is also important for users to compare different entities.
Understandability - Information must be presented clearly and concisely so that users who have a reasonable knowledge can comprehend its meaning.
Timeliness - To be useful
The document discusses the analysis of balance sheets and profit and loss statements. It defines various line items that appear on both, such as sources of funds, uses of funds, capital, reserves, liabilities, assets, revenue, expenses, and profits. Key aspects covered include classification of current and non-current items, treatment of investments, provisions, and the valuation of inventory.
This document provides definitions for common accounting terminology presented by Ms. Komal Mahajan. It defines key terms related to financial accounting like entity, sales, purchases, revenue, receipts, payments, cost of goods sold, expenses, gross profit, assets, liabilities, owners' equity, accounting equation, debit, credit, journal, ledger, trial balance, profit and loss statement, balance sheet, cash flow statement, and financial statements. It also discusses accounting concepts like the cash basis and accrual basis of accounting, financial accounting, cost accounting, management accounting, single and double entry systems of accounting, and the accounting cycle.
The document provides an overview of how to analyze key components of a balance sheet, including assets, liabilities, and shareholders' equity. It then presents a sample balance sheet for Coca-Cola, discussing current assets like cash, receivables, inventory, and current liabilities like accounts payable. Key metrics for evaluating assets and liabilities, such as current ratio and inventory turnover, are also covered.
This document provides an introduction to accounting basics. It defines accounting as the language of business that delivers financial information to various users. Accounting involves recording and interpreting business transactions expressed in monetary terms. The main purposes of accounting are to provide information about a business entity's results of operations, financial position, cash flows, and other useful information to both internal and external users for decision making. The key elements in accounting are assets, liabilities, capital/equity, income, and expenses, which are related through the accounting equation. Financial statements including the income statement, balance sheet, statement of cash flows, and notes to financial statements present the financial information in an organized manner and are interrelated.
Êtes-vous prêt à échanger avec un nouvel arrivant ayant occupé la même profession que vous dans son pays d'origine, et ainsi l'aider à comprendre le marché du travail québécois dans votre secteur? N'hésitez pas à partager à votre réseau de contacts et nous aider ainsi à realiser nos jumelages !
MIT Medellín 2014 contó con el apoyo de varias instituciones públicas y privadas como patrocinadores institucionales, platinium y de innovación. También contó con el apoyo de varios medios de comunicación como socios mediáticos y de universidades, centros de investigación y asociaciones empresariales como socios. El evento fue organizado por MIT Tecnology Review y Opinno.
La ortografía se define como el conjunto de normas que regulan la escritura de una lengua. Su correcto uso asegura una buena comunicación al expresar claramente lo que el emisor desea transmitir. La ortografía tiene su origen en la escritura latina y ha estado en constante cambio y ajuste a través de la historia. En la actualidad, continúa actualizándose periódicamente para adaptarse a las formas de vida y necesidades de comunicación de sus hablantes.
SB 411, the Asbestos Bankruptcy Trust Claims Transparency Act, imposes new disclosure requirements on asbestos claimants regarding claims filed against asbestos bankruptcy trusts. It aims to increase transparency between asbestos bankruptcy trusts and civil litigation. Under the new law, asbestos plaintiffs must disclose all past and potential asbestos trust claims at least 120 days before trial. They must also make all trust claim materials available to defendants. Failure to comply can result in losing a trial date. For non-cancer asbestos claims filed after June 8, 2015, there are also new evidentiary and medical history requirements that make bringing a claim more difficult. While the law removes some of the harshest original provisions, it remains challenging for asbestosis
As a leader for a non-profit, it’s your job to shed light on what goes on in your organization, but distilling down your message can be difficult.
We've worked with many non-profit organizations and we believe video is the most effective way to connect viewers to your important work. Video has the power to unlock emotions, transport people and inspire action like no other medium.
In this on-demand webinar, Ed Heil, President, StoryTeller Media + Communications and Lori L. Jacobwith, Chief Fundraising Culture Changer & Master Storyteller, Ignited Fundraising will introduce several concepts that will help you better understand how to utilize video to drive donations for your organization.
In this free on-demand webinar, you will:
Learn key concepts to help you leverage video storytelling
Understand how to create videos that inspire donors to action
See real examples from other non-profits
Planned giving involves major gifts made by donors through their estate planning, such as real estate, life insurance, or retirement plans, that allow donors to make larger gifts than possible through regular donations alone. It is a highly effective but misunderstood approach for non-profits to pursue. Planned giving establishes stronger long-term relationships with donors and can increase both annual and future planned gifts. Non-profits should treat fundraising like running a business with both immediate and long-term goals in mind. Approaching donors about planned giving requires patience but can result in gifts 200-300 times larger than a donor's typical donation.
Annual Giving: Foundation of the Donor Pyramidtimpuffer
The document discusses annual giving and donor management strategies. It defines annual giving as gifts that are renewable, unrestricted, solicited for current use, and of a certain size. It discusses strategies for managing donor information and relationships, and increasing annual giving revenues through growing gift sizes, number of gifts, and number of donors. The role of annual giving in the overall development plan and strategies for improving cost accountability are also summarized.
El documento proporciona una introducción a los estándares DVB (Digital Video Broadcasting) para la transmisión digital de televisión, incluyendo DVB-T, DVB-T2, DVB-H, DVB-SH, DVB-S, DVB-S2, DVB-C y DVB-C2. Explica las características clave y aplicaciones de cada estándar, así como su implementación en el mercado.
The document provides definitions for 30 common accounting terms, organized alphabetically. It defines key terms like assets, liabilities, balance sheet, debit, credit, double entry, profit, revenue, capital, cash flow, payroll, accounts payable, accounts receivable, and financial statements. Examples are provided for each term to illustrate their meaning. An exercise at the end tests the reader's understanding of the definitions through multiple choice and matching questions.
Accounting involves recording, classifying, and summarizing financial transactions and events. The objectives of accounting include maintaining business records, ascertaining profit/loss, determining financial position, and providing information to internal and external users. The fundamental accounting equation shows that assets equal liabilities plus capital. Key accounting concepts include money measurement, entity, going concern, cost, dual aspect, periodicity, prudence, and realization. Accounting conventions include matching revenues and expenses, consistency, and materiality.
Assets are objects or entities that have economic value for a company, including tangible assets like equipment and buildings, as well as intangible assets like patents and accounts receivable. Assets are classified as current, fixed, or long-term depending on their liquidity and lifespan. Liabilities are financial obligations like loans that a company owes, classified as current or long-term. Equity or capital represents the owner's financial stake in the company and is calculated by subtracting liabilities from total assets. Income is revenue earned from sales or interest, while expenses are costs that allow a company to operate.
Basic Accounting & Cost Control #1 by Dino LeonandriDINOLEONANDRI
The document provides an overview of basic accounting principles for hotel cost control, including accrual basis accounting, accounting entity concept, accounting periods, matching principle, and the three main elements of accounting - the balance sheet, income statement, and cash flow statement. It explains key accounting concepts like recognizing revenue when earned and expenses when incurred, separating business and personal transactions, reporting finances annually with monthly or quarterly updates, and matching income with related expenses. It also defines the components of the balance sheet, including different types of assets, liabilities, and equity.
Even if you did want to branch out into finance and economics, a background in accountancy lays the valuable groundwork for developing broader monetary theories. Accountants can hone their craft through the application of known methodologies.
An accountancy certification is always valuable. You’ll learn how to focus on money management, financial recording and reporting, and the best processes to save cash for a business or sole traders. These skills are desired in every industry. For most accountants, it’s never hard to find work.
This presentation is based on the subject Financial Accounting which helps the beginners to know the basic concept of accounting . This is according to the syllabus of Pt. Ravishankar University , Raipur and Durg University, Durg.
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
The document defines and provides examples of key financial statements including the balance sheet, income statement, cash flow statement, and statement of changes in equity. The balance sheet presents a company's assets, liabilities, and equity at a point in time. It categorizes assets as current, non-current, growth, and defensive and liabilities as current and long-term. The income statement reports a company's revenues and expenses over a period of time. The cash flow statement shows cash inflows and outflows from operating, investing, and financing activities. The statement of changes in equity details movements in owners' equity from net income, share transactions, dividends, and other adjustments.
This document provides an overview of basic financial accounting concepts, including the accounting equation, balance sheets, assets, liabilities, owners' equity, revenues, expenses, transactions, historical cost, adjustments, interest, rent, depreciation, and unearned revenue. It explains that the accounting equation must always balance, assets represent resources owned, liabilities are obligations, and owners' equity is the residual claim on assets. Revenues increase owners' equity while expenses decrease it.
6 fixed assets, current assets, depreciation methodsDr.R. SELVAM
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, assets, liabilities, equity, revenue, and expenses. It describes the double-entry system of accounting and the accounting cycle of recording transactions in journals, posting to ledgers, preparing a trial balance, and developing financial statements. It also outlines accounting concepts, conventions, the different bases of accounting, and the types and roles of various accounts.
Definition of accounting, what is accounting cycle? And how to record business transactions, it consist on various series which started from journal entries, ledger, and trial balance. key terms of accounting. The Accounting Rules of debit and credit, Debit money, assets and liabilities, Bad Debits, Balance Sheet, Double-entry, bad debts, inventory, Expenses, depreciation , Accumulated Depreciation , types of ledger account, categories of general ledger account, Assets and Liabilities, Owners’ Equity, Revenue Expansion of the Basic Equation and Expense, and examples.
The accounting cycle is the process by which accountants prepare financial statements for an entity over a period of time. It involves analyzing transactions, journalizing them, posting to ledger accounts, adjusting entries, preparing a trial balance and financial statements, and closing entries. Key steps include journalizing, posting, preparing a trial balance, adjusting entries, and financial statements.
This document defines and provides examples of window dressing in finance, banking, and accounting. Window dressing refers to actions taken to improve the appearance of financial statements, such as postponing payments to increase reported cash or accelerating revenue recognition. While not always illegal, it can mislead investors and other stakeholders. The document discusses why companies engage in window dressing, who benefits, methods used, disadvantages, and how to identify it.
The document discusses the needs and purposes of key financial statements including the income statement, balance sheet, and statement of cash flows. It explains the components and calculations of these statements. It also describes common financial ratios used in analysis of statements, such as liquidity, profitability, asset management, and leverage ratios. These ratios are used to evaluate a firm's performance and financial position over time and in comparison to other companies.
The document provides an overview of basic financial accounting concepts including the definition of accounts, accounting principles and processes, types of accounts and ledgers, the accounting cycle, and key accounting terminology. It also discusses the different bases, systems, and branches of accounting as well as the advantages, limitations, and users of accounting information.
This document discusses key accounting principles and financial statements. It provides information on contacting TICSE and summarizes three important financial statements: the cash flow statement, profit and loss statement, and balance sheet. It then describes thirteen accounting principles - such as matching, disclosure, consistency and conservatism - and provides an example of how each principle could be breached.
The document discusses basic concepts of financial accounting including the accounting equation, balance sheets, and key elements like assets, liabilities, owners' equity, revenues, and expenses. It explains that the accounting equation must always balance, with assets equal to liabilities plus owners' equity. Transactions can increase or decrease different elements of the balance sheet to maintain the balance of the equation. Historical costs, revenues, expenses, adjustments, and other accounting concepts are also summarized.
The document discusses various aspects of financial analysis including the four main financial statements: balance sheet, income statement, shareholders' statement, and statement of cash flows. It provides details on how to analyze each statement. The balance sheet shows a company's assets, liabilities, and equity at a point in time. The income statement measures performance over a period of time by showing revenues and expenses. Cash flow analysis examines sources and uses of cash by tracing changes in the balance sheet. Financial ratios are also covered as tools to analyze liquidity, leverage, asset management, profitability, and market value.
Los estudiantes solicitan una visita a sus lugares de trabajo como parte de los requisitos para completar su programa de aprendizaje en el SENA. Adjuntan la información personal y de contacto de 7 estudiantes que cursan la carrera de Tecnología en Análisis y Desarrollo de Sistemas de Información y que se encuentran realizando prácticas en empresas como Mareigua, Mapfre, Tetra Tech ARD, Editorial Santillana e Ingenian Software, pero aún no han recibido dicha visita.
El documento describe diferentes áreas y competencias evaluadas en World Skills Colombia 2015, incluyendo control industrial, desarrollo de aplicaciones móviles y peluquería. Los aprendices tuvieron que optimizar tiempos de trabajo a través de sistemas de control, desarrollar un juego móvil en 5 horas, y realizar 3 modelos de peluquería en 80 minutos cada uno, con el objetivo de seleccionar un representante nacional para WorldSkills Latinoamérica.
Este documento es una citación para que Paola Andrea Betancur Zambrano rinda el examen de estado Saber Pro el 21 de junio de 2015 a las 7:00 a.m. en la Universidad Autónoma de Colombia, bloque 13, salón 205. Se le recuerda que debe presentar su documento de identidad válido y solo podrá llevar lápiz, borrador y tajalápiz. Debe permanecer en el salón por lo menos 2 horas y no se permite el ingreso de elementos electrónicos o de comunicación.
Este documento describe un taller sobre el fortalecimiento de la competencia de razonamiento cuantitativo que se llevará a cabo en mayo de 2014. El taller consistirá en tres actividades: 1) resolver puzzles en grupos, 2) analizar videos y materiales sobre las pruebas Saber Pro, y 3) realizar un simulacro individual sobre razonamiento cuantitativo. El objetivo del taller es reconocer la importancia del desarrollo de habilidades de razonamiento cuantitativo.
Con E-PARK ubica un lugar donde ESTACIONAR tu vehículo, encuentra el ACCESO al centro comercial, localiza tu automóvil de REGRESO al parqueadero y traza la ruta que te lleva a la SALIDA.
E-park mision, vision, justificacion y antecedentesMisa Amane
E-PARK es un servicio web pionero para dispositivos móviles que facilita el uso de parqueaderos en centros comerciales. Su misión es facilitar la ubicación de vehículos dentro de parqueaderos grandes, especialmente en centros comerciales. Actualmente no existe un servicio similar aunque se puede saber la disponibilidad de cupos, no se puede identificar dónde hay espacios disponibles. La idea inicial era crear un mapa virtual de puntos de interés en centros comerciales, pero se descubrió que los clientes necesitaban ubicar sus
El documento contiene 10 preguntas sobre la implementación de un sistema de administración de parqueaderos en un centro comercial. Pregunta sobre si actualmente se usa un sistema, si sería útil implementar uno nuevo, cómo se maneja el parqueadero cuando está casi lleno, si estarían dispuestos a comprar o invertir en un sistema y si creen que uno nuevo aumentaría las ventas.
Este documento describe una aplicación llamada E-PARK que ayuda a los usuarios a encontrar estacionamiento en centros comerciales al ubicar la entrada, trazar la ruta de regreso al vehículo, y localizar la salida más cercana. La aplicación también ofrece noticias, promociones y novedades sobre los centros comerciales a través de redes sociales.
E-PARK ayuda a ubicar un lugar para estacionar el vehículo en un centro comercial, encontrar cómo acceder al centro comercial desde el parqueadero, localizar dónde se dejó estacionado el vehículo para regresar, y trazar la ruta para salir del parqueadero.
El documento presenta una encuesta sobre el uso de aplicaciones móviles. Consiste en 16 preguntas que indagan sobre el tipo de teléfono, frecuencia de uso de internet, número de aplicaciones instaladas, categorías de aplicaciones usadas, pago por aplicaciones, intereses en contenidos como mangas, animes y figuras de colección. Finalmente incluye preguntas demográficas sobre género y edad.
Los estudiantes deben desarrollar una interfaz gráfica de calculadora en Java que permita realizar las cuatro operaciones básicas. La interfaz debe permitir ingresar valores a través de botones y mostrar el resultado. Además, debe incluir un botón para cerrar la ventana y una opción de menú para salir del programa. Como trabajo opcional se pide agregar 3 funciones científicas como potenciación o raíz cuadrada.
Este documento presenta un modelo de negocio canvas para una aplicación llamada MANGAPP. La aplicación ofrecerá descargas gratuitas de manga y enlaces con tiendas de anime, además de souvenires y publicidad. Los socios clave incluyen Sena Cenigraf y Tecnoparque. El segmento objetivo son otakus, gamers y fans de series.
El documento presenta los objetivos generales y específicos de un proyecto llamado Manga HouseTM. El objetivo general es desarrollar una aplicación móvil para que las personas puedan leer manga en sus dispositivos móviles y acceder a un directorio de tiendas otaku en Chapinero. Los objetivos específicos incluyen promover la cultura otaku, generar ingresos anuales, fomentar el empleo, consolidar la empresa en 6 meses-1 año y promover la conservación ambiental. El documento también proporciona comentarios sobre
Este documento presenta la misión y visión de la empresa Mangapp, que ofrece servicios de anime y manga. Su misión es brindar estos servicios con calidad y compromiso para integrar a los clientes y dar a conocer la cultura otaku. Su visión es que para 2015 Mangapp sea reconocida por ofrecer un servicio móvil que motive e impresione a los clientes sobre la cultura japonesa. El proyecto surge de las experiencias personales de los fundadores con productos similares y su deseo de innovar para satisfacer necesidades identificadas.
Este documento presenta un manual de usuario sobre phpMyAdmin en Xampp. Explica cómo descargar e instalar Xampp, actualizar phpMyAdmin a una nueva versión, crear una base de datos y tabla, y generar un nuevo usuario con privilegios. El manual guía al usuario a través de cada uno de estos pasos detallando el proceso requerido.
A Guide to a Winning Interview June 2024Bruce Bennett
This webinar is an in-depth review of the interview process. Preparation is a key element to acing an interview. Learn the best approaches from the initial phone screen to the face-to-face meeting with the hiring manager. You will hear great answers to several standard questions, including the dreaded “Tell Me About Yourself”.
Joyce M Sullivan, Founder & CEO of SocMediaFin, Inc. shares her "Five Questions - The Story of You", "Reflections - What Matters to You?" and "The Three Circle Exercise" to guide those evaluating what their next move may be in their careers.
Learnings from Successful Jobs SearchersBruce Bennett
Are you interested to know what actions help in a job search? This webinar is the summary of several individuals who discussed their job search journey for others to follow. You will learn there are common actions that helped them succeed in their quest for gainful employment.
Success is often not achievable without facing and overcoming obstacles along the way. To reach our goals and achieve success, it is important to understand and resolve the obstacles that come in our way.
In this article, we will discuss the various obstacles that hinder success, strategies to overcome them, and examples of individuals who have successfully surmounted their obstacles.
We recently hosted the much-anticipated Community Skill Builders Workshop during our June online meeting. This event was a culmination of six months of listening to your feedback and crafting solutions to better support your PMI journey. Here’s a look back at what happened and the exciting developments that emerged from our collaborative efforts.
A Gathering of Minds
We were thrilled to see a diverse group of attendees, including local certified PMI trainers and both new and experienced members eager to contribute their perspectives. The workshop was structured into three dynamic discussion sessions, each led by our dedicated membership advocates.
Key Takeaways and Future Directions
The insights and feedback gathered from these discussions were invaluable. Here are some of the key takeaways and the steps we are taking to address them:
• Enhanced Resource Accessibility: We are working on a new, user-friendly resource page that will make it easier for members to access training materials and real-world application guides.
• Structured Mentorship Program: Plans are underway to launch a mentorship program that will connect members with experienced professionals for guidance and support.
• Increased Networking Opportunities: Expect to see more frequent and varied networking events, both virtual and in-person, to help you build connections and foster a sense of community.
Moving Forward
We are committed to turning your feedback into actionable solutions that enhance your PMI journey. This workshop was just the beginning. By actively participating and sharing your experiences, you have helped shape the future of our Chapter’s offerings.
Thank you to everyone who attended and contributed to the success of the Community Skill Builders Workshop. Your engagement and enthusiasm are what make our Chapter strong and vibrant. Stay tuned for updates on the new initiatives and opportunities to get involved. Together, we are building a community that supports and empowers each other on our PMI journeys.
Stay connected, stay engaged, and let’s continue to grow together!
About PMI Silver Spring Chapter
We are a branch of the Project Management Institute. We offer a platform for project management professionals in Silver Spring, MD, and the DC/Baltimore metro area. Monthly meetings facilitate networking, knowledge sharing, and professional development. For more, visit pmissc.org.
In the intricate tapestry of life, connections serve as the vibrant threads that weave together opportunities, experiences, and growth. Whether in personal or professional spheres, the ability to forge meaningful connections opens doors to a multitude of possibilities, propelling individuals toward success and fulfillment.
Eirini is an HR professional with strong passion for technology and semiconductors industry in particular. She started her career as a software recruiter in 2012, and developed an interest for business development, talent enablement and innovation which later got her setting up the concept of Software Community Management in ASML, and to Developer Relations today. She holds a bachelor degree in Lifelong Learning and an MBA specialised in Strategic Human Resources Management. She is a world citizen, having grown up in Greece, she studied and kickstarted her career in The Netherlands and can currently be found in Santa Clara, CA.
1. ENGLISH4 ACCOUNTANT
Unit 1: Introduction to Accounting
Unit 2: Making a Career in Accounting
Unit 3: Bookkeeping
Unit 4: Tax accounting vs GAAP
Unit 5: Management Accounting
Unit 6: The Accounting Equation
Unit 7: Depreciation and Amortization
Unit 8: Financial statements
Unit 9: Taxes: Part One
Unit 10: Auditing
Unit 11: Currency
Unit 12: International Accounting
Unit 13: Professional Relationships
Unit 14: Taxes: Part 2
Unit 15: The Future of Accounting
Unit 16: Payroll
Unit 17: Cost accounting
Unit 18: Investments
Unit 19: Budgets
Unit 20: Slang
2. Dictionary
· Abnormality
Something which is not typical or appearing to be right
Example:
Several abnormalities were discovered during the audit, which resulted in the
company being taken to court.
· Above board
In a legal and proper manner.
Example:
We are not worried about the audit as everything was prepared above board.
· Accelerated depreciation
A term used to show that the reduction of an assets value happens faster at the
start of its useful life than at the end.
Example:
Assets like vehicles lose a lot of value in the first year of their life, which is why
accelerated depreciation is such a useful tool.
· Accounting equation
3. The foundation of double entry accounting which shows that all assets are either
financed by borrowing money or paying with the money of the company's
shareholders.
Example:
The accounting equation was the first thing I learnt on the bookkeeping course I
went on.
· Accrual Accounting
An accounting method that measures the performance and position of a company
by recognizing economic events regardless of when cash transactions occur.
Example:
The accountant advised to operate an accrual accounting system for the small
start-up, as he said it gave a more accurate picture of the true financial state.
· Accrual basis accounting
The method of accounting in which income and expenditure are recorded at the
date they are earned / incurred.
Example:
From the accounting point of view, it doesn't matter when you actually receive the
payment as I am using accrual basis accounting so I have already accounted for
the invoice.
· Accrue
To be added over a given period
4. Example:
Interest on the loan accrues over the 10 year term
· Accurate
Free from errors, careful
Example:
Make sure the figures are accurate before submitting the tax return.
· Acquire
To come into possession or ownership of, to buy, to purchase
Example:
The company has acquired several buildings on the island.
· act on
Do something as a reaction
Example:
The board decided to act on the performance auditor's recommendations and
instituted new purchasing procedures.
· Ad hoc
5. For a particular purpose or need
Example:
As well as regular reports the CFO often demands ad hoc reports when the need
arises.
· Additional
In addition to, extra.
Example:
His promotion will mean additional work, but also additional pay.
· adhere to
Follow or obey
Example:
Each company should adhere to the accounting standards of the country that
they operate in.
· Adverse
Having a negative or harmful effect.
Example:
Recent bad publicity had an adverse effect on the company's sales.
· allocate
6. Distribute according to an existing plan.
Example:
After studying the budget, it was clear that the marketing department had been
allocated more than was needed.
· Allowance for uncollectable accounts
A contra asset account recording debts which may not be collected.
Example:
We need to post that debt to the allowance for uncollectable accounts as the
company has gone into receivership and we probably won't be paid.
· Amend
To improve by correcting exiting information.
Example:
The entry was posted to the wrong account so the account had to be amended.
· Amortization
The deduction of capital expenses incurred on an intangible asset over a specific
period of time.
Example:
7. The accounts department started the amortization process as soon as the
purchase of the licenses was finalized.
· Annual financial statements
The set of accounts which are prepared each year.
Example:
Once a year the shareholders review the annual financial statements to see if the
company made a profit or loss.
· Annuity depreciation
A method of depreciation centred around cost recovery and a constant rate of
return upon any asset that is being depreciated.
Example:
Most production machinery is depreciated using annuity depreciation as it allows
the calculation of a per unit produced cost for the asset.
· Anti-avoidance legislation
The laws which govern the correct payment of taxes.
Example:
There is strict anti-avoidance legislation in most countries which means that
failure to pay the full amount of due taxes is punishable by law.
· anticipate
8. To imagine or expect that something will happen.
Example:
Shareholders are anticipating a record dividend payment this year.
· Applicable
Relating to, or having to do with.
Example:
VAT is not applicable on education or training services
· Apply
To be suitable, pertinent or relevant to.
Example:
Different accounting policies apply to different countries.
· Appreciable
Large or noticeable enough to have a significant effect.
Example:
The crisis has had an appreciable effect on the financial market.
9. · arising from
To happen because of, or owing to.
Example:
There are many costs arising from the purchase of new property.
· Arrears
Money that is owed or should have already been paid.
Example:
As he was five months in arrears on his payments, the company repossessed his
car.
· Asset
A resource in the possession of a company which is available for use.
Example:
The auditors checked the factory to make sure that all the assets listed in the
accounts were there.
· Assist
Help, or make easier
Example:
10. Having correct and timely financial information assists in making operational
decisions
· Assist
To give help to.
Example:
How can I assist you?
· At their disposal
Available to be used by somebody.
Example:
The company has millions of dollars at its disposal to fund new research.
· Attributable to
Caused by or connected to.
Example:
The company's success is attributable to the new CEO's leadership.
· Audit
An examination of records or financial accounts to check their correctness.
Example:
11. The IRS audit will take place next week, so make sure all documentation is ready
by then.
· Auditor
A specialist whose job is to carefully check the accounts and accounting practices
of a company.
Example:
The entire department were scared when the team of auditors arrived and asked
to see all of the previous year's records.
· Authorise
To give permission to happen
Example:
All purchases over five thousand dollars must be authorized by accounts payable.
· Authorization
Official permission for something to happen.
Example:
The payment was a week late because the financial director only gave
authorization to pay it yesterday.
· Backdoor
Dishonest, unethical or illegal.
12. Example:
The company was fined when the tax authority realized that their return had been
prepared in a back door way
· Balance Sheet
A document which summarizes the assets, liabilities and equity of a business entity at a
given time.
Example:
The analysis of balance sheets for the last three months showed an increase in the value
of the company.
· Bank reconciliation
The process of comparing the actual state of the bank account with the bank nominal code
in the accounts.
Example:
After James had finished the bank reconciliation, it became clear the company had a major
cash flow problem.
· Barter
To trade by exchanging goods rather than money
Example:
Before money was common, people often bartered with animals like goats or cows.
· Be consistent with
In agreement with, in accordance with.
Example:
Whichever method you use when accounting for tax, it is important to be consistent with
the regulations in that method.
· Be in the ballpark
To estimate with reasonable accuracy.
13. Example:
They didn't know the exact figure and guessed at 500,000 which turned out to be in the
ballpark.
· Bean counter
A person such as an accountant who is very concerned with small details.
Example:
Even as a young boy Peter was a bean counter, so it made perfect sense when he said he
wanted to be a financial controller.
· Benchmarks
A standard by which something can be measured or assessed.
Example:
The recently released 2012 earnings benchmark figures show that CPAs are earning more
than in 2011.
· Billable
Time spent working that you can charge money for.
Example:
Some firms charge a flat rate rather than using a system of billable hours.
· Blown
Spent a large amount of money (in a wasteful way).
Example:
The new manager didn't know what he was doing and blew the yearly overtime budget in 2
months.
· Blue-chip
Considered to be a safe investment because of previous performance.
14. Example:
Even blue-chip companies like Apple and Unilever are struggling as a result of the crisis.
· Bond
A certificate of ownership of a specified amount which can be redeemed
Example:
Treasury bonds are a popular form of saving in the US.
· Bonds
An amount of money that a government or individual borrows and agrees to repay at a
certain date with a certain amount of interest.
Example:
Some investors cannot hold bonds with a risk rating worse than A.
· Bookkeeper
A person, who may or may not be qualified, that records the financial transactions of a
business.
Example:
A lot of smaller companies use bookkeepers for their daily accounting needs and only use
an accountant for the yearly financial statements.
· Boom
A period of sudden economic growth.
Example:
Property investors became rich during the 1980's property boom.
· Bottom-line
The final line in the accounts, the net profit or loss made by a company.
Example:
15. The CFO is working on minimizing the effects of the scandal on the bottom-line.
· Bracket
A set group with fixed upper and lower limits.
Example:
As he earns over $400,000 a year, he is in the highest tax bracket and pays 39.6%
income tax rate.
· Breach
The act of breaking a law, promise or other agreement.
Example:
The company was taken to court for breaching the contract.
· Breakeven point
The figure at which neither profit or loss is made.
Example:
By calculating the cost of production, we found the breakeven point of $5.35 per item.
· Broker
A person who acts in representation when buying or selling shares, insurance etc.
Example:
His stock broker advised him to invest in KBL industries.
· Budget
A plan that shows how much money you have will have and what it will be spent on.
Example:
Corporate planners are preparing the budget for the next financial year.
16. · Budgeting
The process of creating set financial targets which should be met.
Example:
A lot of companies fell short of the budgeting expectations because of the unexpected
impact of the financial crisis.
· Bull market
A time when the prices of most shares are rising.
Example:
By studying the stock market over a period of time, you can see if we are in a bull market
or not.
· Burden
A large amount of money that you own, or the responsibility to pay this money.
Example:
Although he hired a tax specialist, his total tax burden couldn't be reduced.
· Capital
The total financial value of all assets less any liabilities. The net worth of a
company.
Example:
After three years trading the capital of the company had increased to $100m.
· Capital gains tax
The tax on the increase of value of a capital asset which is then sold.
Example:
The accountant advised the owner to retain the property for 12 months before
selling so as to reduce the amount of capital gains tax due.
· carry out
To perform or complete a job or activity.
17. Example:
The IRS carried out an audit of the company as a result of errors in the accounts.
· carry over
Transfer a sum relating to one account to a new column, page, year.
Example:
When preparing the accounts for each year, you must remember to carry over the
balances from the previous year’s depreciation account.
· Cash in hand
The amount of liquid equity held by an entity at a certain point of time.
Example:
The accounts showed a large profit for the year, but as the company had spent a lot on
new assets there was a lack of cash in hand.
· Cash-flow
The movement of money into and out of a company, firm or legal entity.
Example:
When you apply for a bank loan, you will need to provide cash-flow records showing your
financial situation.
· CPA (Certified Public Accountant)
The American and Australian equivalent of a Chartered accountant
Example:
After James passed his exams, he became a certified public accountant.
· Charge
A fee, cost or expense which has to be paid.
Example:
18. Going over ones overdraft usually incurs a small charge.
· Chartered accountant
A fully qualified accountant, holding current certification.
Example:
When the bank asked for confirmation that John would be able to repay the loan,
his chartered accountant provided it.
· check
A printed form, used instead of money to make payments from a bank account.
Example:
John didn’t provide his bank details in time for the transfer to be made, so he was
paid by check instead.
· CEO 2 (Chief Executive Officer 2)
The highest rank in a company
Example:
The CEO decided to hire a freelance tax advisor to help solve the problem.
· CFO (Chief financial officer)
The most senior financial manager, responsible for overseeing the financial
activities of the entire company.
Example:
The board of directors were satisfied with the CFO's explanation of the
unexpected loss reported in the accounts.
· classify
To divide things into groups according to their type.
Example:
Costs are classified into two groups, direct and indirect.
19. · close of play
The end of the working day
Example:
I may be late home tonight as I have to finish this report by the close of play.
· Code of conduct
A set of rules (often used within a company) which show the correct way to behave.
Example:
All employees must follow the company's code of conduct.
· Commission
A system of payment based on a percentage of the value of sales, business generated.
Example:
Commission is a common incentive in the sales sector as it encourages employees
to sell more.
· Commodities
Substances or products which can be traded in large quantities.
Example:
Higher commodities profits increased first quarter profits.
· Commodity
A product or financial product that can be traded.
Example:
The firms most valuable commodity is its property.
· Compensation
The combination of payments and other benefits which employees receive.
20. Example:
Large multinational companies can usually offer better compensation packages than small
companies.
· Compliance
The procedure of obeying a law, regulation or rule.
Example:
Most large accounting firms have a compliance officer to ensure that all regulations are
followed.
· Comptroller
The person in charge of the financial accounts of a company.
Example:
It is the comptrollers responsibility to ensure that the returns are filed on time.
· Confidentiality
The state of being secret and/or kept secret.
Example:
James was dismissed when he broke confidentiality and told his wife that the company
was having financial problems.
· Consumption tax
The duty which is levied on the sale or purchase of goods.
Example:
The American system of consumption tax in the form of sales tax is much easier to
calculate than the European system of VAT.
· Consumption tax
A tax that is added to the price of goods or services which are bought by the public.
21. Example:
Some people say that consumption tax is unfair as even the poor have to buy certain
goods and as a result are taxed.
· Contingent liabilities
A potential obligation that may be incurred depending on the outcome of a future event.
Example:
The management accountant estimated a contingent liability of $45,000 on the
purchase of the new property.
· Contrast
To compare with an aim to showing the differences.
Example:
By contrasting this years' expenditure with last years', we will see the main differences.
· Control
A standard of comparison for checking or verifying the results.
Example:
The company has several control systems in place to ensure theft does not happen.
· cooked the books
Changed numbers dishonestly in the accounts of a company.
Example:
The financial controller was fired after he was caught cooking the books.
· Corporation tax
The tax which is paid on the earnings of a corporation, or entity being treated as a
corporation.
Example:
22. In America the corporation tax rate varies from 15% to 35% depending on the level of
earnings.
· Cost accounting
The process in which all costs are examined.
Example:
Most large companies use cost accounting to help save money and maximize efficiency.
· cost reduction
The process of minimizing any expenses due from direct business activity.
Example:
In times of hardship, cost reduction is essential to a company's success.
· Costs incurred
Any expenses due as a direct result of business activity.
Example:
By looking at costs incurred on a particular product, we can see where money can
be saved.
· Cottage industry
A business activity in which there are many individuals or small firms working.
Example:
Large multinational firms are killing off the cottage industry in most sectors.
· cover
To deal with or to include something.
Example:
You need to ensure that the report covers all possible costs.
· Creative accounting
23. The use of holes in financial law to have an advantage or to show figures in a deceptive
way.
Example:
Some accountants often use creative accounting to try and cheat the tax authority out of
monies due.
· Creditor
Someone who money is owed to.
Example:
As the invoice hadn't been paid the creditor started legal proceedings.
· Credits
An entry showing the amount of money owed to the company by its customers.
Example:
The sales ledger clerk totaled the credits and saw that the company was owed over $1
million.
· Cross-check
Verify by comparing two sets of data.
Example:
Each month the accounts supervisor cross-checks the records which were posted
against the nominal code assigned.
· Cryptocurrency
A currency which is designed around exchanging secure information rather than an actual
item.
Example:
BitCoin was the world's first cryptocurrency.
· curb
Reduce or limit.
24. Example:
The company is trying to curb spending, so all salaries have been frozen.
· Current
New, present or most recent.
Example:
The current legislation differs in several ways from the old.
· Current assets
All assets that are expected to be converted into cash within one year of normal
business activity.
Example:
Of course you cannot depreciate current assets as they won't be in the company a year
from now.
· Cutoff
A fixed point, date or level at which you stop including things.
Example:
The cutoff date for registration is the 30th September, so make sure you apply before then.
· Cyclical pattern
A trend which is repeated at intervals.
Example:
Changes in the economy have followed a cyclical pattern.
· Daybooks
A journal of financial transactions entered on the day that they happened.
25. Example:
I hate working with daybooks; it is so much easier to use a computerized
accounting system.
· Debit
An entry showing an amount owed (due to be paid by the company), entered on
the left hand side.
Example:
Before we can pay the invoice, we need to record the invoice as a debit in the
accounting system.
· Debtor
Someone who owes money.
Example:
We have 5 long-term debtors who owe us a total of $175,000.
· Decentralize
To distribute the powers of a central organization over a wider area.
Example:
A lot of companies decentralize certain functions like HR as it is more effective to
have HR departments in all locations instead of only at the head office.
· Declare
To make known, announce officially or state clearly.
Example:
The company declared net losses of 2million in the last financial year.
· Default
To fail to pay interest or other money that is owed.
Example:
26. As the company defaulted on the loan payments, legal proceedings were started.
· defer
Put off or postpone to a later date.
Example:
The company accountant deferred the tax due until the start of next year.
· Deferral
The state for postponing the recognition of an asset or liability until a future time.
Example:
As his accountant hadn't finished the tax calculations, he applied for a deferral.
· defraud
Illegally take money from someone by using deceit.
Example:
Mr. Franks was convicted of defrauding the company out of millions.
· Depreciation
The method of allocating the cost of an asset over its useful life.
Example:
The depreciation of the new machine will happen over 12 years.
· Designated
Previously named or selected for a certain function
Example:
Mr. Smith is the designated representative for your area, so please contact him
with any complaints.
· designated for
27. Stated as officially having a particular purpose
Example:
This building has been designated for the accounting team.
· Determine
To decide upon.
Example:
We need to determine the best course of action to deal with this problem.
· determined by
Decided by or because of.
Example:
Our decision to stop production was determined by poor sales over the past year.
· Discrepancy
A difference between two things that should be the same.
Example:
While processing the invoice, John noticed a discrepancy in the number of units
ordered and delivered.
· Dispute
An official argument or disagreement between two or more parties.
Example:
The court looked into the details of the dispute over payment.
· diversify
To put money into a range of different types of investment to reduce risk.
Example:
28. Fortunately, he diversified his investments by buying shares and property so he
wasn't as badly affected when the property market crashed.
· divide
Split into equal parts or groups.
Example:
If you want to know your hourly salary, divide your weekly wage by the number of
hours you work.
· Dividend
A sum of money paid to shareholders
Example:
Shareholders were happy with the company's performance as they received a
larger dividend than in the previous year.
· Double Entry Bookkeeping
A system of keeping financial records where each transaction has a debit and a
credit posted.
Example:
The majority of experienced bookkeepers use double entry bookkeeping as it
allows them to check that both sides agree
· Double taxation
The state where income tax is paid twice (often to two different governments) on
one income.
Example:
A lot of countries now have double taxation agreements, so people should only pay
the tax in the country where the money was earned.
· downsize
To make smaller by reducing the number of people working in a place.
29. Example:
A lot of companies have had to downsize as a result of the financial crisis.
· Draft
Prepare a written version of.
Example:
The lawyer drafted the contract and sent it to his client for approval.
· Draft
A first version
Example:
The financial director looked at the draft set of accounts and then approved them.
· Drawing up
Officially preparing a written document.
Example:
The lawyers drew up the contract of sale.
· Draws
The withdrawal of business cash or other assets by the owner for the personal use
of the owner.
Example:
The accounting team tried to explain that the owner shouldn't make so many draws
from the company as it was leading to huge losses.
· Drill down
To study something in great detail.
Example:
We really need to drill down on the budget and find out where we went wrong.
30. · Due diligence
Reasonable actions taken by a person to satisfy a law or regulation.
Example:
The accountant suggested not signing the final contract until all due diligence was
done to check that the company would be profitable.
· Duplication
The practice of doing the same thing more than once.
Example:
The company used both traditional ledgers and an accounting computer program
to record transactions, but the duplication of work took too much time so they
stopped.
· Dynamic budget
A financial forecast which adapts to changes of one or more variable.
Example:
Dynamic budgets have become more popular since it is increasingly difficult to
precisely forecast sales volume.
· Eliminate
To completely remove something which is not wanted.
Example:
It is impossible to eliminate all risk in investment so you should seek advice on the
safest options.
· Endorse
To sign ones name on a commercial document.
Example:
After the accounts manager endorses your payment request, it will be processed.
31. · Ensure
To make certain that something happens
Example:
All business owners should ensure that their tax returns are received by the Inland
Revenue by 31st April.
· Entity
A person, partnership, organization, or business that has a legal and separately
identifiable existence.
Example:
A limited company is a separate legal entity from its members.
· Escrow
A contract, deed or bond which is deposited with a third person.
Example:
The purchase may be agreed if the company deposits the funds in an escrow
account.
· Estimate
To say what you believe the cost, size, value of something is when you are not
certain.
Example:
The government estimates that there are 3.5 million unemployed people in the
country, but no one is sure.
· Exceed
To be greater than a number, or go beyond a limit.
Example:
If an order exceeds $10,000 it is eligible for a 5% discount.
· Exemption
32. Not included within, unaffected by
Example:
There are many exemptions to the VAT regulations, which makes it harder to know
which items should have VAT and which shouldn't.
· Expenditure
All monies spent
All monies spent
Example:
The director stopped the lunch programme for employees so he could reduce
expenditure and save money.
· Expense
Show the full cost of something in the company
Example:
I don't expect that the new van will be worth anything after 12 months, so I decided
to expense it in the accounts this year.
· External
Of, or coming from the outside.
Example:
There are several external bodies which regulate financial accounting.
· Extraordinary item
Gain or loss included in financial reports which come from infrequent or unusual
sources.
Example:
The losses caused by damage from the flying saucer were recorded as an
extraordinary item.
· Feasibility
33. The possibility that can be made, done or achieved or is reasonable.
Example:
The management accountant is looking into the feasibility of outsourcing bookkeeping.
· Finite life
A lifespan which is limited to a certain number of years, months, weeks or days.
Example:
Most assets have a finite life, as eventually they will break or need to be replaced.
· Fixed asset
An asset which is not consumed or sold during the normal course of business
activities.
Example:
The auditors checked through the list of fixed assets and made sure that all the
machinery, vehicles and property listed really existed.
· Fluctuation
Constant changes and instability.
Example:
Fluctuations in the exchange rate mean that the value of a currency is never
predictable.
· Forecast
Estimate or calculate in advance.
Example:
By studying the previous year's accounts and considering any changes in the
market, you can forecast the financial state of the company 12 months in advance.
· Foreign currency
34. The money used in another country.
Example:
Because the company had offices in Spain, Brazil and America, they had to deal
with several foreign currencies including the euro.
· Freeze
To stop or limit the use of
Example:
After he had been accused of fraud, the government froze his assets to prevent
him spending the money.
· Fringe benefits
An extra thing which is given to you by an employer.
Example:
The company's package of fringe benefits includes: company car, pension plan
and private health insurance.
· Fund
Money invested in a range of shares, bonds etc. along with other investors money.
Example:
The fund's performance is linked to the NY stock exchange.
· Garnishment
Deduction of income or property from someone who owes a debt.
Example:
After garnishment for alimony and child support, he was left with just enough to pay
his rent.
· GAAP (Generally accepted accounting principles)
35. After garnishment for alimony and child support, he was left with just enough to pay
his rent.
Example:
All accountants should have a firm understanding of GAAP, and follow the
principles closely.
· generate
To produce or create something.
Example:
The company generated profits of 8 million despite the global recession.
· go ahead
To continue or proceed.
Example:
The meeting went ahead when John returned.
· go over
To look at in detail, to study.
Example:
After going over the budget, it is clear that we will not meet our sales targets.
· Goodwill
The favour or advantage that a business has acquired especially through its
brands and its good reputation.
Example:
The company had assets of $62 million excluding goodwill.
· Hold fire
To delay, or wait for something before continuing.
36. Example:
They had to hold fire on the accounts preparation as they are waiting for the client
to supply some missing documents.
· Holding
A specific investment
Example:
The company has many holdings in China.
· implement
To put into effect
Example:
The new legislation will be implemented next year.
· import duty
A tax placed on goods coming into one country from another.
Example:
The US imposed a 35% import duty on tires from China to try and protect US motor
workers jobs.
· In conjunction with
Combined with.
Example:
The low number of graduates in conjunction with the high demand for their skills
means finding a job is easy.
· In effect
To be active, or being used.
37. Example:
There are over 14 different taxes in effect in the US at the moment.
· In excess of
More than, greater than
Example:
The most recent set of accounts reported a net profit in excess of $5 million.
· In-depth
Carefully worked out, detailed or thorough.
Example:
Management accountants need an in-depth knowledge of finance and
management as well as accountancy to be successful.
· Incentive
Something which provides stimulus or encouragement to do something.
Example:
Something which provides stimulus or encouragement to do something.
· Incentives
Something (often financial) that encourages a person to do something
Example:
The company pays incentives to staff to try and motivate them.
· Income
All monies received
Example:
The company is looking for a way to increase its income, so they are talking about
expanding into a new market.
38. · Income statement
The financial statement which measures a company's financial performance over a
specific accounting period.
Example:
After studying the income statement it was clear that the company was in financial
trouble.
· Income statement
A financial report which shows the firms net profit or loss over a given period.
Example:
It was clear from the third quarter income statement that the company wasn't
going to hit target.
· Income tax
The tax which is due on personal earnings.
Example:
Most people complain about the rate of income tax, but for those earning over
40,000 a year who have to pay 32% it is an even less comfortable situation.
· Incorrect
Wrong, false.
Example:
John wasn't paying attention so the answer he got was incorrect.
· Incur
Come into or acquire (some consequence, usually undesirable).
Example:
The company has incurred taxes of $27,000 this quarter.
· Index fund
39. (Also known as a tracker) a sum of money invested in a stock index, for either an
entire market or a segment of that market...
Example:
The best that the average investor can do is buy an index fund and hold it forever.
· Indicate
Show, be a sign of.
Example:
The financial report indicates that the company has exceeded its expectations.
· Instrument
A means by which something is effected or done.
Example:
The government has several instruments for ensuring compliance with tax
regulations.
· Intangible asset
An asset which is not physical in nature.
Example:
The valuation team had trouble valuing the intangible assets of the firm.
· integrate
To combine two or more things to make it more effective.
Example:
They are planning to integrate the sales and marketing departments.
· Intellectual property
40. Creations of the mind: inventions, literary and artistic works, and symbols, names,
images, and designs used in commerce.
Example:
Lawyers and accountants in Hollywood have to be experienced in intellectual
property law.
· Internal
Of, or coming from the inside.
Example:
Management accounting generally deals with internal reports.
· IFRS (International Financial Reporting Standards)
A common set of accounting principles.
Example:
Both UK and US GAAP differ from the IFRS to some degree.
· Inventory
A complete listing of all goods held by an entity, or the goods which are on the list.
Example:
Most retailers keep a large inventory, which needs to be carefully listed for the
accounts.
· Invoice
The written record of a payment due, which is sent to the customer before
payment.
Example:
The company issued a pro-forma invoice, with 14-day payment terms, when the
order was confirmed.
· Irregularities
41. Defects, failures of mistakes.
Example:
If the IRS finds any irregularities in your tax calculations, you can be fined.
· Itemization
To place individual items as a list
Example:
Itemization of expenses helps in identifying areas of high cost.
J (Empty)
· Keep track of
Follow, or pay attention to (particularly in changeable situations)
Example:
Working in a multi-national accounting department, you should keep track of the
exchange rate at all times.
· Ledger control
A process in which totals from subsidiary nominal accounts are entered into a
control account to make it easier to interpret the data.
Example:
The financial controller does the ledger control for the company as the first step in
his management accounting.
· Ledgers
Accounting books in which accounts were prepared
Example:
42. Each accounting function maintains a separate ledger.
· Levy
Impose or collect.
Example:
The government levies a higher tax on luxury goods, than on basic products.
· Liability
A company's debt or obligation
Example:
The company shut down when the accounts showed that the liabilities were larger
than the income and assets.
· Like herding cats
To be difficult and time consuming.
Example:
Dealing with the IRS can be like herding cats as there are so many forms which
need to be completed.
· LLC (Limited liability company)
A business entity where the debts of the company are separate from the debts of
the share-holder.
Example:
As it was a Limited liability company, the creditors couldn't get at John's private
assets when the company went bankrupt.
· Liquidate
Convert into cash.
Example:
The firm liquidated 50% of their fleet to raise funds for the investment.
43. · Local accounting standards
The set of rules and laws for a country which govern how accounts should be
prepared.
Example:
Multinational corporations need to be aware of the local accounting standards of
each country they operate in.
· Loophole
a small mistake in an agreement or law which can be abused for benefit.
Example:
The contract was carefully written so that there were no loopholes.
make ends meet
have just enough money to pay for things you need.
Example:
Most people want more than to make ends meet.
· Management accountant
A senior member of the accounting team, who liaises with company owners /
directors and advises on the financial aspects of any planned action.
Example:
After the meeting with the management accountant, I realized that launching the
new product line didn't make financial sense.
· Management accounting
The process of preparing management reports and accounts that provide accurate
financial and statistical information.
Example:
44. The management accounting team finished their analysis of production costs and
presented their findings to the board of managers.
· margin of safety
the amount by which sales can decrease before a company becomes unprofitable.
Example:
As our margin of safety is only 10,000, we need to look at ways of increasing sales.
· marginal cost
marginal cost: the cost of producing one more item as compared to the cost of
producing all items.
Example:
Marginal costs are generally relative to the amount of fixed costs.
· matching principle
the idea that expenses should be allocated to a revenue stream where possible.
Example:
The matching principle should be followed in order to reach accurate net income
figures.
· maturity
the time when an investment becomes ready to be paid.
Example:
We can offer investments with 2, 4, 10 or 25 year maturities
· meat-and-potatoes
more basic or important than other things.
Example:
45. The company produces many items, but the meat-and-potatoes products are plant
pots.
· Merchant
a storekeeper, retailed or wholesaler. One who sells products.
Example:
More and more merchants accept American Express as a payment option.
· merge
to join together, or be joined together - to make a larger company
Example:
When the two firms merged they became an industry leader.
· Meticulously
Very careful, paying attention to every detail.
Example:
The auditors meticulously studied the accounting records looking for anything
suspect.
· Minimize
Try to make as small or little as possible.
Example:
The accountant minimized the tax liability and saved the company thousands of
dollars.
· Multiply
Increase the number of by the power of x.
Example:
If you multiply two by three, you'll get six.
46. · Net earnings
A company's total revenue minus the operating expenses, depreciation, and
interest paid and taxes.
Example:
When the board reviewed the previous year's accounts they were pleased to see
that the net earnings had increased.
· Net-book value
The current value of an asset shown in the accounting documents.
Example:
The car was purchased in 2011 for $30, 00, now only one year later the net-book
value is $22,000, which shows a depreciation rate of $8,000 in year 1.
· Nominal code
A reference number which allows the grouping of financial transactions.
Example:
It took me ages to remember all of the nominal codes, but now I do it is much
quicker to enter invoices into the system.
· Non-inventory asset
Any capital asset which is retained by the company and not likely to be turned into
cash within one year under normal trading conditions.
Example:
When the auditors studied the non-inventory assets and found that two of the
company cars were missing.
· Notes to the accounts
Additional information added at the end of the accounts to give a full understanding
of the company’s situation.
Example:
47. The management board studied the notes to the accounts to make sure they
understood the workings properly.
· Notional
existing as an idea or as an approximate amount.
Example:
I'm sorry but I cannot give you an exact figure, but the notional amount is
560,000.
· Objectivity
The state of being uninfluenced by emotions or personal prejudices.
Example:
Audits are often performed by external auditors to maintain objectivity.
· Obliged to
To have an obligation to do something
Example:
In most countries employees are obliged to pay national insurance.
· Offset
Place over against; to balance; as, to offset one account or charge against another.
Example:
The profits for this quarter more than offset the losses from last quarter, so we are
making a profit for the year.
· offset
to balance one influence against another.
Example:
They offset the loss on the sale of the fleet against the profits made on the sale of
the factory and reduced the tax liability to zero.
48. · omission
the failure to include or do something.
Example:
The omission of the depreciation cost for the year meant the budgeted figures were
not correct.
· Omit
. Exclude, leave out
Example:
When the company was audited, it was noticed that $12,000 of income had been
omitted from the tax return.
· on account of
because of, due to.
Example:
The company was closed on account of low sales and high costs.
· on the fritz
temporarily broken or out-of-order.
Example:
I always have a coffee before I go to work as the office coffee machine is usually
on the fritz.
· opportunity costs
the imagined loss made on not following a certain course of action instead.
Example:
We cannot afford to expand into both markets so please find out the opportunity
cost of expanding into Iran instead of Iraq.
· organ
49. an organization that works as part of a larger organization.
Example:
Contacting the IRS can be difficult as it is often unclear which organ you should be
dealing with.
· Outcome
The end result
Example:
The outcome of the meeting was the decision to relocate to Brazil.
· outsource
to employ an outside company to do work for you.
Example:
A lot of bookkeeping work is outsourced to India as salaries are much lower.
· Outstanding
not yet paid, solved or done.
Example:
The outstanding debt was paid and the account balance returned to zero.
· Overall
in general rather than in particular.
Example:
We need to study the overall costs and locate an area in which savings can be
made.
· Overheads
The ongoing administrative expenses of a business which cannot be matched to
any specific business activity.
50. Example:
In an attempt to try and reduce overheads the company switched water suppliers
and cancelled the 'free lunch' programme for staff.
· Oversee
to supervise.
Example:
The comptroller carefully oversees all large financial transactions.
· Oversight
a mistake made by a failure to notice something.
Example:
It appears that there has been an oversight and the clerk forgot to mail in the VAT
return.
· Overtime
time worked in addition to your usual job hours.
Example:
Approval must be given for all overtime worked.
· PAYE
The system of payroll in the UK, by which employers pay all employees.
Example:
The payroll clerk uses a computerized PAYE system to submit all payroll records to
the tax office.
· Payroll clerk
The member of the accounting team who deals with employees.
Example:
51. The sales-director asked the payroll clerk to issue bonuses to the top five sales
people.
· per annum
Annual or each year.
Example:
His new salary is $42,000 per annum.
· Period
An interval of time characterized by the occurrence of a certain condition, or event.
Example:
The accounting period for tax reporting is 12 months from the 1st of January.
· Plummet
to drop, decrease or fall very rapidly.
Example:
The shares plummeted by 24% causing the shareholders to lose millions.
· Portfolio
a collection of different investments owned by a person or company.
Example:
Many investors now try to build up portfolios with many types of investments.
· Post
To make an entry in an accounting ledger or software system
Example:
When you post a transaction in the system, the programme will automatically post
the second side of it.
52. · PBC (Prepared By Client)
Used to show that documents were not prepared by professionals.
Example:
The job involves checking PBC documents to make sure they contain no errors.
· prior
Before, previous.
Example:
He hadn't had any prior experience so he didn't know what he was doing.
· progressive tax
a tax in which the rate of tax is higher on larger sums of money.
Example:
The progressive system levies more tax against people with higher earnings.
· project
to calculate an amount or figure expected in the future based on information in the
present.
Example:
The financial team projected net earnings of over $750,000, if it happens it will be a
record for the company
· Public company
A firm which is permitted to sell shares in the firm to the general public.
Example:
After the merger Questcore became a public company and the value of their
shares has increased by over 30%.
· Purchase ledger clerk
53. (U.S. accounts payable) The member of the accounting team who deals with
suppliers, issues payment for goods and services and keeps track of expenditure
Example:
When the supplier contacted the company to ask why the invoice wasn't paid, the
purchase ledger clerk explained that the cheque was in the mail.
· Quantify
Determine or express the quantity of.
Example:
When entering a new market, you should be able to quantify the potential sales
and the risk attached to them.
· ran into
Encountered unexpectedly
Example:
The company ran into financial problems when the exchange rate changed
significantly.
· range of
a set of similar products or services which are sold by a company.
Example:
The firm offers a wide range of accounting solutions.
· raw materials
a substance in its natural state which is used to make something in an industrial
process.
Example:
The company imports most of the raw materials from China as it is cheaper.
54. · reallocation
changing the way in which an amount of money, asset, time is used.
Example:
The company's reallocation of funds from R&D into marketing, showed that they
needed to improve their image.
· Receipt
The written record of a payment made, which is given to the customer after
payment.
Example:
The company will only reimburse staff for petty cash purchases if they provide a
receipt.
· Reconcile
To ensure that two figures agree with each other.
Example:
A lot of accounting departments reconcile the bank account to the accounts every
day.
· Record
A written account of a transaction.
Example:
The auditors went through every record of sale over the last decade before they
were satisfied.
· Record
to set down in writing.
Example:
55. All income must be recorded for accounting purposes.
· red tape
official rules and procedures which seem unnecessary and cause delay.
Example:
International accounting is often delayed by red tape.
· Reducing balance depreciation
A method of deprecation which imposes a set rate of depreciation on the remaining
balance of the asset.
Example:
The new premises cost $100,000 but as we will be using reducing balance
depreciation over 5 year - the first year will cost us the most.
· Refer
to send someone to a different person or place for help.
Example:
I am afraid I do not have the authority to make that decision, I will have to refer you
to my supervisor.
· referred to
checked or consulted a source of information.
Example:
"I'm afraid that I do not know, I will need to refer to my manager for that answer."
· regressive tax
a tax in which poor people pay a higher percentage of their income than rich
people.
Example:
Under regressive tax systems everyone pays the same rate up to a certain limit,
regardless of their earnings.
56. · Regulation
a law, rule or other obligation set by an authority.
Example:
All companies must follow the regulations of the country in which they do business.
· reimbursement
the act of paying back money which is owed
Example:
Remember to keep all receipts for fuel purchased with your own money for
reimbursement at the end of the month.
· relative
as judged or measured in comparison with something else.
Example:
Taking the two ideas into consideration, the relative merits of the first are clear.
· Remit
to send money to someone.
Example:
We have to remit all tax payable for the period by the 21st April.
· Require
to need or have need of.
Example:
A lot of companies use e-invoicing nowadays and don't require a paper copy.
· requisite
needed for a particular purpose or result.
57. Example:
A master’s degree is requisite to apply for the job.
· resistant
not easily changed or damaged.
Example:
Traditionally the market for gold has been resistant to financial downturns.
· retail
the activity of selling goods to the general public.
Example:
The city has several shopping malls with a large retail industry.
· Retain
Keep in one’s possession.
Example:
Mr. Smith decided not to invest the profit from the last year so he retained it in his
bank account.
· Return
A form which is submitted to a tax authority
Example:
When James had finished the clients' tax return he gave it to his supervisor to
check before sending to the Inland Revenue.
· return
profit produced by an investment.
Example:
58. The return on the investment was almost 11% which made it one of the most
profitable.
· ROI (return on investment)
The yearly, monthly profit on an activity when compared to the invested capital.
Example:
Most companies require a 20% yearly return on investment for the investment to
be considered.
· Revenue
The amount of money a company receives over a given time frame.
Example:
Due to the Christmas season, revenues in shops are usually higher in the last
quarter of the year than the first.
· rigorous
Detailed and careful.
Example:
I want a rigorous financial analysis of the budget.
· Rip-off
something which is not worth what you have paid for it
Example:
That new computer was a real rip-off, he could have bought one much cheaper.
· Risk
The possibility of suffering harm or loss.
Example:
It is important to minimize the risk to a company by having all the relevant
information before making a decision.
59. · Rocket
to increase or rise quickly.
Example:
House prices are rocketing which means that they are good investments.
· salary
A fixed amount of money agreed every year as pay for an employee.
Example:
His basic monthly salary is $1700 but this is subject to bonuses.
· Sales ledger clerk
(U.S. accounts receivable) The member of the accounting team who deals with
sales, raises invoices and collects payment.
Example:
The sales ledger clerk made sure to issue the invoice on the same day as the sale.
· Salvage value
The amount of money that an asset will be worth at the end of its useful life.
Example:
The company purchased a $16,000 forklift for use in its warehouse and believes it'll
be able to resell the forklift for a salvage value of $1,000 at the end of 8 years.
· Seizure
taking possession of an item or monies legally or by force.
Example:
The government's seizure of his estate came as a surprise to his wife.
· set aside
to save something for a special purpose.
60. Example:
The management have been setting $500 a month aside for the staff party.
· setting out
arranging or preparing something for others to see or use.
Example:
The CFO set out new regulations for payment processing.
· Shareholder equity
A firm's total assets minus its total liabilities.
Example:
The board of management was delighted with the 15% rise in shareholder equity
on the past year.
· Significant
Having or expressing meaning, important.
Example:
As a potential investor the most significant figures for me are the total profit and the
liabilities.
· Single Entry Bookkeeping
A simple system of keeping financial records, where transactions are entered only
once.
Example:
As Bob wasn't very good at math he used single entry bookkeeping to keep track
of his daily transactions
· Sloppy
Untidy or with mistakes
Example:
61. James was fired for being too sloppy in his work, after it was noticed that he had
made several serious mistakes.
· slump
a period of low economic activity.
Example:
Having a varied investment portfolio helped him to survive the slump.
· Sole proprietorship
A type of business entity that is owned and run by one individual.
Example:
Many people choose to form a sole proprietorship as it is the simplest form of
business entity.
· Sole-trader
A business which is owned and run by one person.
Example:
Sole-traders don’t have to meet such strict accounting requirements as larger
corporations.
· Sound
Having a firm basis
Example:
John has a sound knowledge of financial matters but he has never dealt with an
IRS audit so the CFO insisted on being present during the audit.
· speculate
to guess, to form opinions without having all information.
Example:
We can only speculate what accounting firms will look like in 200 years.
· Split
62. to divide between two or more
Example:
As both salesmen achieved the same result, the bonus will be split between them.
· Startup
a business that has just started.
Example:
Most startup's go bankrupt within the first two years.
· State
to say or write something officially.
Example:
The regulations state that all employees must hold a valid driving license.
· Statistical sampling
The process of checking an entity based on a small amount of data taken at
random.
Example:
The auditor chose one month at random for statistical sampling.
· Statutory
Of, or relating to a legal statute.
Example:
The statutory sick pay in the UK is just over 60 pounds a week, but most
companies pay more than that.
· statutory
decided, controlled or required by law.
Example:
63. All companies are obliged to pay statutory sick pay, but many pay above this.
· stay afloat
have enough to remain in business.
Example:
Many companies struggle to stay afloat in the current economic crisis.
· Straight line depreciation
The method for reducing the value of a tangible asset by equal amounts over its
useful life.
Example:
Not having much experience in accounting, he chose the straight line method of
depreciation as it appeared to be the easiest to understand.
· subject to
to have or experience a particular thing (usually unpleasant).
Example:
All business transactions are subject to taxes.
· successive
happening one after another.
Example:
The company has made successive losses in the past five years.
· Sum-of-years-digits depreciation
The method for reducing the value of a tangible asset by a variable percentage
depending on how long the asset has been on the books.
Example:
64. A lot of people are put off of the sum-of-years-digits method of depreciation as it
can seem complicated, but it does have some advantages.
· Supersede
to replace in power, validity or effectiveness
Example:
The new directive supersedes the old so we need to change the way we operate.
· Supplier
a person, company or body that provides goods.
Example:
As they were not happy with the quality of goods, they decided to change their
supplier.
· T-accounts
An informal word for a set of financial records using double entry bookkeeping, with
debits entered on the left and credits on the right.
Example:
You should remember that each T-account should balance. If it doesn't, there must
be a mistake somewhere.
· take into account
to consider or remember something when evaluating a situation.
Example:
The CFO didn't take the predicted rise in the price of fuel into account when
budgeting for the year, so costs were higher than he expected.
· Takeover
The transfer of control of a firm from one group of shareholders to another group of
shareholders.
65. Example:
AOL's takeover of Timewarner was one of the largest acquisitions in business
history.
· tariff
a tax on goods coming into or out of a country.
Example:
Tariffs are commonly used in times of economic downturn to protect domestic
industries
· Tax accounting
Methods of accounting which focus on tax instead of the appearance of public
financial statements
Example:
Tax accounting provides a simpler method of calculating your tax liability.
· Tax advisor
A specialist who is able to give advice on matters of taxation.
Example:
Larger corporations often have a dedicated tax advisor to help them minimize the
amount of tax that they need to pay.
· tax break
a legal means to pay less in taxes
Example:
A lot of business's make charitable donations and take advantage of the tax breaks
connected to them.
· tax code
A set of numbers and letters used to show the amount of income tax that an
individual should pay.
Example:
66. The higher the numbers in your tax code, the more tax-free income you have.
· Tax credit
an amount of money, calculated on personal situation, that reduces tax payable.
Example:
Tax credits are commonly used as a means of providing child benefits to working
parents.
· tax credit
An amount of money that a taxpayer is able to subtract from the amount of tax that
they owe to the government
Example:
The company received a $45,000 tax credit for investing in solar panels for the new
property.
· tax reduction
an amount of money, not calculated on personal situation, that reduces tax
payable.
Example:
After the tax reduction was applied, he was left with a tax bill of only $1200.
· Taxable earnings
The gross profit of a company or individual on which tax is due.
Example:
As Johns taxable earnings for the year were under the lower level bracket he didn’t
need to pay any tax
· Taxable income
The amount of money on which tax is paid
Example:
67. Tax revenues fall when workers lose their jobs, and the taxable income that goes
with them.
· Term
a period of time during which something lasts or can last.
Example:
Our standard payment terms for invoices is 21 days.
· Terminology
The vocabulary of technical terms used in a particular field.
Example:
There is some very complicated terminology in accounting so you should make
sure you have a good dictionary.
· Third Party
a person or organization who is involved in a legal matter by chance or to a small
degree.
Example:
The contract is between the bank and you, it doesn't take account of any possible
third parties.
· tied to
closely connected with, or reliant on.
Example:
The bonus system is tied to company profits, so if we have a bad year there won’t
be any bonuses.
· Timely
happening at a suitable moment.
Example:
68. All reports must be filed in a timely manner.
· to file
Officially submit a document to a legal entity.
Example:
The latest date for filling your tax return is the 31stof March, so ensure that you
have it finished and sent by the 29th.
· To post
Enter or record (a financial transaction).
Example:
Peter was posting the previous day’s sales into the system when his manager
arrived.
· Transaction
an item of business which has been carried out or conducted.
Example:
The acquisition of K&M was the largest transaction in the history of the firm.
· Transparency
The state of providing clear visible information to all involved in an activity
Example:
Increased transparency in the accounting department has increased shareholder
faith in the company
· trend
a general development or pattern in the way people behave.
Example:
By studying current trends, we can get an idea of what will happen next.
69. · Trial Balance
A statement of all debits and credits in the double-entry account book, with any
discrepancies shown.
Example:
The company accountant spent two days trying to get the trial balance to agree.
· underlying
real but not immediately visible.
Example:
Investments are made by evaluating the underlying value.
· undertake
to do, or begin to do something.
Example:
He needs to undertake correct budgeting practices.
· Validity
Being correct and valid.
Example:
The validity of the accounts was questioned by the IRS and an audit was
performed.
· VAT (Value added tax)
The tax which is due on the difference between the value of a product or service
and the cost of its production.
Example:
The government are talking about increasing the value added tax rate next year,
which means the cost of consumer goods will increase.
70. · Variable
something which does not remain fixed or stable.
Example:
An uncertain exchange rate, unknown order quantity and indefinite payment terms
are all variables which make doing business with them problematic.
· Variance
The difference between two figures.
Example:
The company expected costs to be 100,000 but the actual costs were 120,000 so
the director asked about the reason for the variance.
· Verify
Prove the truth of by presentation of evidence or testimony.
Example:
The accounts manage must verify all payments over $10,000.
· Vital
very important.
Example:
The accounting department is vital to the success of a company.
· volatile
likely to change suddenly and unexpectedly
Example:
Property has always been less volatile than shares.
· Voltaic cell
A device that derives energy from chemical reaction, such as in a battery
71. Example:
Car batteries are a good example of voltaic cells: there are electrodes which are
submerged in a solution, and due to some chemical reaction which takes place in
the solution, the energy is derived.
· wages
an amount of money that is paid every week to an employee for their work for each
hour worked.
Example:
Most countries have minimum wages but there are still companies paying less than
that.
· well-off
wealthy, or having money
Example:
John had always been well-off, but after his investments paid off he became a
multi-millionaire.
· went bust
forced to close because of being financially unsuccessful, to go bankrupt.
Example:
When the company went bust over 500 people lost their jobs.
· wholesale
the activity of selling goods in large amounts to businesses which then sell on to
the public.
Example:
Most small businesses buy goods wholesale as it is much cheaper than buying in a
normal shop.
· Withhold
to refuse to give, or keep back something.
72. Example:
The company withheld payment as they were not satisfied with the quality of the
goods delivered.
· worked out
calculated, found the answer to.
Example:
One of the advantages of the computerized system is that it works out the tax due
automatically.
X (Empty)
· yield
the total amount of profit produced by a business or investment.
Example:
All investors are looking for maximum yield with minimum risk.
Z (Empty)