Accounting Vocabulary

_____ is where a company has a negative amount of money in its bank account. Usually, this is agreed with the bank in advance and there is a limit to the amount. This overdraft is a Current Liability.

The job of recording all the entries of a business in its records.

A Financial Statement which shows all the company’s sales and all of its costs, for a period of time.

A _______________ is when a company pays for something, but doesn’t use it for a while. Because it doesn’t use it, it keeps its value and so it is a Current Asset.

_____ is shown in the Income Statement as the calculation of Sales minus Cost of Sales. Clearly, every business needs its Sales to be greater than its Cost of Sales.

Choose the correct synonym of: Profit & Loss

This involved a loss of control over ____________ as a number of high profile clients are refusing to pay their bills.

Things which a company owns that have a long-term value. Examples are buildings, motor vehicles, and machines.

The accounting system used all over the world which records every transaction twice, as a Debit and a Credit.

These are often shown in a shorter form as Dr. and Cr. They are the two sides used in Double Entry.

Money which a company owes to another company or person

Choose the correct synonym of: Trade Debtors

____________are the extra costs of running a business. Examples; insurance, power costs, bank interest payable, administration wages

Everything that a company owns. This might include cars, money, buildings and machines.

______________ means a building (or a number of buildings) that are owned by a company.

The ___________ however, were not able to give a True & Fair audit opinion as there had been major problems with the firm’s bookkeeping during the year.

The company is running very short of cash and because of that is seeking an __________ to improve its cashflow.

On that basis, it is possible that ____________ have been overstated in the annual accounts.

Turnover was up by 12% to £14.5m and ___________ rose by 17% to £4.6m.

Choose the correct synonym of: Non-Current Assets

____________ are monies owed TO a business BY its customers.

The _____ of famous sports agency Zamora PLC were published today and made headline news.

As a result ___________ now stands at a very healthy £37.5m.

The company directors insist that all these bills will be paid, but the __________ don’t have enough evidence that this will happen.

Financial Statement which lists all the assets and all the liabilities of a company on one particular day, which is very often 31st December. It’s like a photograph because it’s at one moment in time.