To pass this unit, please study the 15 vocabulary words below.
- Accrual basis accounting
- Be consistent with
- Depreciation
- Expense
- Fixed asset
- GAAP (generally accepted accounting principles)
- Levy
- Net earnings
- Omit
- Public company
- Reducing balance depreciation
- Revenue
- Significant
- Tax accounting
- Taxable income
Noun (thing)
USA
UK
USA
UK
the method, of accounting, in which income and expenditure, are recorded at the date they are earned
USA
UK
"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."
Verb (infinitive)
USA
UK
USA
UK
in agreement with, in accordance with
USA
UK
"Whichever method you use when accounting for tax, it is important to be consistent with the regulations in that method."
Noun (thing)
USA
UK
USA
UK
the method of allocating the cost of an asset over its useful life
USA
UK
"The depreciation of the new machine will happen over 12 years."
Verb (infinitive)
USA
UK
USA
UK
show the full cost of something in the company
USA
UK
"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."
Noun (thing)
USA
UK
USA
UK
an asset which is not consumed or sold during the normal course of business activities
USA
UK
"The auditors checked through the list of fixed assets and made sure that all the machinery, vehicles and property listed really existed."
Noun (thing)
USA
UK
USA
UK
the common set of standards and procedures used by companies when preparing financial statements
USA
UK
"All accountants should have a firm understanding of GAAP, and follow the principles closely."
Noun (thing)
USA
UK
USA
UK
impose or collect
USA
UK
"The government levies a higher tax on luxury goods, than on basic products."
Noun (thing)
USA
UK
USA
UK
a company's total revenue minus the operating expenses, depreciation, and interest paid and taxes
USA
UK
"When the board reviewed the previous year's accounts they were pleased to see that the net earnings had increased."
Noun (thing)
USA
UK
USA
UK
exclude, leave out
USA
UK
"When the company was audited, it was noticed that $12,000 of income had been omitted from the tax return."
Noun (thing)
USA
UK
USA
UK
a firm which is permitted to sell shares in the firm to the general public
USA
UK
"After the merger Questcore became a public company and the value of their shares has increased by over 30%."
Verb (infinitive)
USA
UK
USA
UK
a method which imposes a set rate of depreciation on the remaining balance of the asset
USA
UK
"The new premises cost $100,000 but as we will be using reducing balance depreciation over 5 years, the first year will cost us the most."
Noun (thing)
USA
UK
USA
UK
the amount of money a company receives over a given time frame
USA
UK
"Due to the Christmas season, revenues in shops are usually higher in the last quarter of the year than in the first."
Adjective
USA
UK
USA
UK
having, or expressing, meaning or importance
USA
UK
"As a potential investor the most significant figures for me are the total profit and the liabilities."
Noun (thing)
USA
UK
USA
UK
methods of accounting which focus on tax instead of the appearance of public financial statements
USA
UK
"Tax accounting provides a simpler method of calculating your tax liability."
Noun (thing)
USA
UK
USA
UK
the amount of money on which tax is paid
USA
UK
"Tax revenues fall when workers lose their jobs, and the taxable income that goes with them."