Unit 12: Vocabulary

To pass this unit, please study the 20 vocabulary words below.
accurate
free from errors, careful
Make sure the figures are accurate before submitting the tax return.
allowance for uncollectable accounts
a contra asset account recording debts which may not be collected
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
The entry was posted to the wrong account so the account had to be amended.
apply
to be suitable, pertinent or relevant to
Different accounting policies apply to different countries.
assist
to give help to
How can I assist you?
comptroller
the person in charge of the financial accounts of a company
It is the comptrollers responsibility to ensure that the returns are filed on time.
current
new, present or most recent
The current legislation differs in several ways from the old.
declare
to make known, announce officially or state clearly
The company declared net losses of 2million in the last financial year.
dividend
a sum of money paid to shareholders
Shareholders were happy with the company's performance as they received a larger dividend than in the previous year.
escrow
a contract, deed or bond which is deposited with a third person
The purchase may be agreed if the company deposits the funds in an escrow account.
Exemption
not included within, unaffected by
There are many exemptions to the VAT regulations, which makes it harder to know which items should have VAT and which shouldn't.
extraordinary item
gain or loss included in financial reports which come from infrequent or unusual sources
The losses caused by damage from the flying saucer were recorded as an extraordinary item.
income statement
a financial report which shows the firms net profit or loss over a given period
It was clear from the third quarter income statement that the company wasn't going to hit target.
IFRS (international financial reporting standards)
A common set of accounting principles
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
Most retailers keep a large inventory , which needs to be carefully listed for the accounts.
oversee
to supervise
The comptroller carefully oversees all large financial transactions.
record
to set down in writing
All income must be recorded for accounting purposes.
regulation
a law, rule or other obligation set by an authority
All companies must follow the regulations of the country in which they do business.
split
to divide between two or more
As both salesmen achieved the same result, the bonus will be split between them.
supersede
to replace in power, validity or effectiveness
The new directive supersedes the old so we need to change the way we operate.
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