Please study the 15 vocabulary terms below. Then press the Mark Complete button to continue.
- balance sheet
- a document which summarizes the assets, liabilities and equity of a business entity at a given time
- CPA (certified public accountant)
- the American and Australian equivalent of a chartered accountant
- CFO (chief financial officer)
- the most senior financial manager, responsible for overseeing the financial activities of the entire company
- credits
- an entry showing the amount of money paid (or owed) to the company, entered on the right hand side
- debit
- an entry showing an amount owed (due to be paid by the company), entered on the left hand side
- deferral
- the state for postponing the recognition of an asset or liability until a future time
- double taxation
- the state where income tax is paid twice (often to two different governments) on one income
- due diligence
- reasonable actions taken by a person to satisfy a law or regulation
- foreign currency
- the money used in another country
- in excess of
- more than, greater than
- LLC (limited liability company)
- a business entity where the debts of the company are separate from the debts of the share-holder
- reconcile
- to ensure that two figures agree with each other
- record
- a written account of a transaction
- sole-trader
- a business which is owned and run by one person
- trial balance
- a statement of all debits and credits in the double-entry account book, with any discrepancies shown
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The analysis of balance sheets for the last three months showed an increase in the value of the company.
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After James passed his exams, he became a certified public accountant.
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The board of directors were satisfied with the CFO's explanation of the unexpected loss reported in the accounts.
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The sales ledger clerk totaled the credits and saw that the company was owed over $1 million.
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Before we can pay the invoice, we need to record the invoice as a debit in the accounting system.
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As his accountant hadn't finished the tax calculations, he applied for a deferral.
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A lot of countries now have double taxation agreements, so people should only pay the tax in the country where the money was earned.
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The accountant suggested not signing the final contract until all due diligence was done to check that the company would be profitable.
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Because the company had offices in Spain, Brazil and America, they had to deal with several foreign currencies including the Euro.
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The most recent set of accounts reported a net profit in excess of $5 million.
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As it was a Limited liability company, the creditors couldn't get at John's private assets when the company went bankrupt.
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A lot of accounting departments reconcile the bank account to the accounts every day.
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The auditors went through every record of sale over the last decade before they were satisfied.
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Sole-traders don’t have to meet such strict accounting requirements as larger corporations.
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The company accountant spent two days trying to get the trial balance to agree.