Please study the 15 vocabulary terms below. Then press the Mark Complete button to continue.
- annual financial statements
- the set of accounts which are prepared each year
- auditor
- a specialist whose job is to carefully check the accounts and accounting practices of a company
- bookkeeper
- a person, who may or may not be qualified, that records the financial transactions of a business
- CA (chartered accountant)
- a fully qualified accountant, holding current certification
- code of conduct
- a set of rules (often used within a company) which show the correct way to behave
- confidentiality
- the state of being secret and/or kept secret
- creative accounting
- the use of holes in financial law to have an advantage or to show figures in a deceptive way
- income tax
- the tax which is due on personal earnings
- local accounting standards
- the set of rules and laws for a country which govern how accounts should be prepared
- 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
- payroll clerk
- the member of the accounting team who deals with employee compensation and other related issues
- purchase ledger clerk
- (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
- sales ledger clerk
- (U.S. accounts receivable) the member of the accounting team who deals with sales, raises invoices and collects payment.
- tax advisor
- a specialist who is able to give advice on matters of taxation
- 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
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Once a year the shareholders review the annual financial statements to see if the company made a profit or loss.
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The entire department were scared when the team of auditors arrived and asked to see all of the previous year's records.
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A lot of smaller companies use bookkeepers for their daily accounting needs and only use an accountant for the yearly financial statements.
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When the bank asked for confirmation that John would be able to repay the loan, his chartered accountant provided it.
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All employees must follow the company's code of conduct.
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James was dismissed when he broke confidentiality and told his wife that the company was having financial problems.
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Some accountants often use creative accounting to try and cheat the tax authority out of monies due.
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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.
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Multinational corporations need to be aware of the local accounting standards of each country they operate in.
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After the meeting with the management accountant, I realized that launching the new product line didn't make financial sense.
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The sales-director asked the payroll clerk to issue bonuses to the top five sales people.
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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.
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The sales ledger clerk made sure to issue the invoice on the same day as the sale.
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Larger corporations often have a dedicated tax advisor to help them minimize the amount of tax that they need to pay.
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The government are talking about increasing the value added tax rate next year, which means the cost of consumer goods will increase.