Accounting and financial staments.

1. Income. All the money received from business activities during a given period.
2. Expenditure. All the money that a business spends on goods or services during a given period.
3. Budget. A financial operating plan showing expected income and expenditure.
4. Asset. Anything owned by a business-Cash, building, machines, equipment, etc.
5. Liabilities. All the money that a company will have to pay to someone else in the future.
6. Debit. An entry in an account, recording a payment made.
7. Credit. An entry in an account, recording a payment received.
8. Intangible. Adjective describing something without a material existence, which you can’t touch. [Assets whose value
can only be turned into cash with difficulty.]
9. Accrued. Adjective describing a liability, which has been incurred but not, yet invoiced to the company.
10. Accrued expenses. Expenses such as wages. Taxes and interest that have no yet been paid at the date of the balance
sheet.
11. Deferred. Delayed or postponed until a later time.
12. Cost accounting. Calculating all the expenses involved in producing something, including material, labour, and all other
expenses.
13. Tax accounting. Calculating how much an individual or a company will have to pay to the local and national
governments.
14. Auditing. Inspecting and reporting on account and financial records.
15. Accounting. Preparing financial statements showing income and expenditure, assets and liabilities.
16. Managerial or management accounting. Providing information that will allow a business to make decisions, plan
future operations and develop business strategies.
17. Creative accounting. Using all available accounting procedures and tricks to disguise the true financial positions of a
company.
18. Bookkeeping. Writing down the details of transactions (debits and credits).
19. Financial statements: Balance sheet, cash flow statements and income statements.
20. Balance sheet. A statement showing the value of a business’s assets, its liabilities, and its capital or shareholders’ equity.
21. Cash flow statement. A statement giving details of money coming into and leaving the business, divided into day-to-day
operations, investing and financing.
22. Income statement. A statement showing the difference between the revenues and expenses of a period.
23. Shareholders’ equity. All the money belonging to the company’s owner.
24. Additional paid-capital. Capital that shareholders have contributed to the company above the nominal or par value of
the stock.
25. Total receivable. Money owed by costumer for goods or services purchased on credit.
26. Account payable. Money owed to suppliers for purchases made on credit.
27. Repaid expenses. Money paid in advances for goods and services.
28. Property. Tangible assets, such as office, machines, etc.
29. Goodwill. The difference between the purchases price of acquired companies and their net tangible assets.
30. Total liabilities. The total amount of money owed that the company will have to pay out.
31. Interest income. Money received from investment.
32. Research and development. Money spent in order to produce income in the future.
33. Cost of revenue. Expenses specific to providing the company’s services.
34. Selling/General expenses. Additional expenses involved in running the company.
35. Amortization. Loss of value of intangible assets.
36. Depreciation. Loss of value of tangible assets.
37. Cluster. Group of similar things situated close together.
38. Landlord. Person or organization that owns a building and rents it to other people.
39. Entrepreneur. Person who start a business, especially when this involves taking risks.
40. Headhunter. A recruiter or important personnel companies.
41. Attorney. Lawyer.
42. Vulnerable. Likely to be attacked.
43. Patent. Official legal right to make or sell an invention for a particular number or years.
44. Dominate. To have control over something, or to be the most important person or thing.
45. Disrupt. Prevent something from continuing as expected.
46. Address or tackle. To try to deal with a problem.
47. Market leader. The firm with the largest market share.
48. Market challenger. The second firm with the largest market share.
49. Diversify. Become more varied or different.
50. Retail outlets. Places where good are sold.
51. Listed companies. Public companies whose stocks are trade on a stock exchange.
52. Fees. Amounts of money paid for services.
53. Conglomerates. Companies that own or control several smaller businesses selling very different products or services.
54. Synergy. The combined power or value of a group of thing working together, which is greater than the total power,
achieved when each is working separately.
55. Market capitalization. The total value of a company on the stock exchange.
56. Subsidiaries. Companies that are owned by a larger parent company.
57. Pension fund. A sum of money reserved to pay a company’s retired employees.
58. Unfettered. Not limited by any rule or controls.
59. Externalities. Positive or negative consequences of economic activities experiences by other people.
60. Income tax. Tax people pay on their wages and salaries.
61. Direct tax. Tax on wages and salaries or on company profits.
62. Progressive tax. A tax levied at a higher rate on higher incomes.
63. Indirect tax. Tax paid on a property, sales transactions, and imports.
64. Valued-added tax. Tax collected at each stage of production.
65. Capital gains tax. Profits made by selling assets.
66. Inheritance tax. Gift to a family member over a certain value.
67. Wealth tax. The annual tax imposed on people’s fortune.
68. Tax evasion. Making false declarations to the tax authorities.
69. Tax avoidances. Reducing the amount of tax, you pay to a legal minimum.
70. Tax haven. Countries where taxes are low.
71. Loophole. A small mistake or exception in a tax law.
72. Downturn. A decline in economic activity.
73. Upturn. An increase in economic activity.
74. Consumption. Purchasing and using goods and services.
75. Balance of payments. The differences between the funds a country receives and those it pays for international
transactions.
76. Gross domestic products [GDP]. The total market value of all the goods and services produces in a country during a
given period.
77. Demand. The willingness and ability of consumers to purchases goods and services.
78. Supply. The willingness and ability of businesses to offer goods and services.
79. Save. To put money aside to spend in the future.
80. Keynesianism. Economic theory that government monetary and fiscal policy should stimulate business activity and
increase employment in a recession.