Accounting vocabulary 

Assets: Things of value owned by a business. An asset may be a physical property or it may be a right.

 

Accountant: A person who trained to prepare and maintain financial records.

 

Cash flow: The amount of actual cash generated by business operations, which usually differs from profits shown.

 

Double entry: A system of accounting in which every transaction is recorded twice as a debit and as a credit

 

Factor: A factor is anything that influences something else.

 

File: To file something is to turn it in to the agency that requires it.

 

Firm: A firm is a business that provides professional services like legal counsel, accounting, design, etc.

 

Fixed asset: Non trading business assets of a relatively permanent nature

 

Floppy drive: A floppy drive is a device using a memory chip.

 

Gross margin: The gross margin is the amount of money left when cost of goods sold is subtracted from sales revenue.

 

Hover: To hover means to stay near a particular point.

 

Income: Revenue accruing over a given period of time

 

Inflow: Is cash coming into a company.

 

Inform: To inform someone about something is to tell him or her about it.

 

Internal auditor: An internal auditor is an employee hired by a company to monitor its financial activities.

 

Interpret: To interpret is to determine the appropriate meaning of something.

 

Inventory: The supply or stock of goods and products that a company has for sale.

 

Liability: A liability is a ny amount of money that a company owes.

 

Loan: Money lent at interest for a period of time.

 

Note pad: A note pad is a book of blank paper for writing on.

 

Obsolescence: Obsolescence is a state in which an item is no longer useful because it has been replaced by more advanced alternatives.

 

Owner's equity: Owner's equity is the total monetary value of a company.

 

Plus: Plus means that two quantities are meant to be combined.

 

Plummet: To plummet is to decrease rapidly.

 

Paper clip: A paper clip is a small device that holds sheets of paper together

 

Variable cost: A cost that changes as sales or production change. the variable cost should be zero. However, there will probably be fixed costs.