ACCOUNTING VOCABULARY IN ENGLISH

1. Asset. Material goods or rights in a property with monetary value. Assets are estimates
on profit through sale or use. An asset appers on the balance sheet and has a normal
debit balance.

2. Liability. Obligation. Amount owed by a debtor to be paid in cash or in goods or

services.

3. Contributed capital. Payment in cash or goods made by partners into a company.

4. Income. Money, or its equivalent, earned or profited during an accounting period from
sales or services rendered or other sources. The inflow of resources to a business for a
period, from the sale of goods or services.

5. Expense. Expired cost. Entry or type of cost of an activity, current or past.

6. Debit. To register a debt entry. An entry on the left side of an account. Debits increase
assets and expenses an decrease liabilities, owners´equities an revenues.

7. Credit. An entry on the right side of an account.

8. Share. Part of división of social capital. Commercial title representing rights of a

partner.

9. Stock. Legal capital in a stock company or corporation; share certificate.

10. Founder´s shares. Privileged shares with or without special specifications.

11. Outstanding stock. Stock that has been issued and is held by third parties.

12. Net current asset. Cash required by a company to meet normal operating costs.
Total assets minus total liabilities capital.

13. Liquid or current asset. Working capital. Cash, uncommitted bank accounts and
readily marketable.

1
14. Land. Real estate. Property of a business

15. Cash sale. Sale of goods or services paid for immediately.

16. Close books. To close he books. To en dan accounting period, transferring income
and expense account balances, directly or through loss and profit accounts.

17. Accounting code. Names and codes of a company´s accounts, describing their use
and nature.

18. Contingency. An evento that may occur but cannot be predicted with any reasonable
degree of certainty.

19. Accounting. Registration, classification and abstraction of a company´s transactions.

20. Accountacy. Accounting theory and practice, its regulations an responsibilities, norms
and formalities.

21. Cost accounting. Field of accounting dealing with classification, registration,

distribution, recollection of current and future costs.

22. Cost unit. Measure unit used as a rule to establish cost of a product. Meter,
units, grams, etc.

23. Credit note. Document which diminishes the amount of an invoice or

obligation.

24. Credit sale. Sale on which payment is not made immediately. Credit terms
may range from a few days to several months and may provide for a cash
discount.

25. Creditor. One to whom a debt is owed.

26. Current ratio. Ratio between current assets and current liabilities.
2
27. Debit note. Document supporting an expense.

28. Depreciated value. Historical cost of an asset less total depreciation.

29. Depreciation. The reductionin value of tangible, long-lived assets from use or
obsolescense.

30. Dividend payable. Amount of dividens previously declared but not yet paid.

Bibliography: Basic Vocabulary Accounting. Alvaro Ramos.