Unit 5: Vocabulary

To pass this unit, please study the 15 vocabulary words below.
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additional
in addition to, extra
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His promotion will mean additional work, but also additional pay.
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assist
help, or make easier
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Having correct and timely financial information assists in making operational decisions.
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benchmarks
a standard by which something can be measured or assessed
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The recently released 2012 earnings benchmark figures show that CPAs are earning more than in 2011.
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budgeting
the process of creating set financial targets which should be met
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A lot of companies fell short of the budgeting expectations because of the unexpected impact of the financial crisis.
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draft
prepare a written version of
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The lawyer drafted the contract and sent it to his client for approval.
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entity
a person, partnership, organization, or business that has a legal and separately identifiable existence
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A limited company is a separate legal entity from its members.
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forecast
estimate or calculate in advance
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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.
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in-depth
carefully worked out, detailed or thorough
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Management accountants need an in-depth knowledge of finance and management as well as accountancy to be successful.
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indicate
show, be a sign of
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The financial report indicates that the company has exceeded its expectations.
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management accounting
the process of preparing management reports and accounts that provide accurate financial and statistical information
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The management accounting team finished their analysis of production costs and presented their findings to the board of managers.
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overheads
the ongoing administrative expenses of a business which cannot be matched to any specific business activity
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In an attempt to try and reduce overheads the company switched water suppliers and cancelled the 'free lunch' programme for staff.
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period
an interval of time characterized by the occurrence of a certain condition, or event
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The accounting period for tax reporting is 12 months from the 1st of January.
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risk
the possibility of suffering harm or loss
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It is important to minimize the risk to a company by having all the relevant information before making a decision.
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takeover
the transfer of control of a firm from one group of shareholders to another group of shareholders
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AOL's takeover of Timewarner was one of the largest acquisitions in business history.
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variance
the difference between two figures
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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.
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