This glossary features 20 words that are useful for people who work in accounting.
Accounts Payable
noun
Accounts Payable include all of the expenses that a business has incurred but has not yet paid. It's the money a company has to pay to its creditors
Example: The Sage Extended Enterprise Suite has general ledger, purchase order and accounts payable capabilities.
fr: Comptes fournisseurs
Asset
noun
Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies
Example: It is clear from the oral evidence provided by the Claimant that when he seeked to recover his money, he approached the Defendant on the basis that he was ready to forgo any increase in value of the property and was prepared to liquidate his asset in order to get his money back.
fr: Actif
Balance sheet
noun
A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.
Example: He couldn't explain the irregularities in the balance sheet, and I suspect him of taking the money.
fr: Bilan
Balloon loan
noun
A loan that is structured so that the small business owner makes regular repayments on a predetermined schedule and one much larger payment, or balloon payment, at the end.
Example: Most of these contracts obligate you to pay a large balloon payment if you return a vehicle in early.
fr: Hypothèque à versements forfaitaire
Book value
noun
Book value is the net value of a firm's assets found on its balance sheet, and it is roughly equal to the total amount all shareholders would get if they liquidated the company.
Example: The directors state they believe the market value of the properties of the group to be in excess of the book value of £3,175m.
fr: Valeur nette comptable
Break-even point
noun
The point at which total revenues equals total costs.
Example: The company expects to break even during the fourth quarter of 2002.
fr: seuil de rentabilité
Broker
noun
A broker is an independent party, whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate or stock broker who facilitates the sale of a property.
Example: On Wall Street, the broker buys and sells stocks for various clients around the city.
fr: Courtier
Buyout
noun
Purchase of at least a controlling percentage of a company’s stock to take over its assets and operations.
Example: Since the financial year end we have completed the buyout of the minority shareholders in the company.
fr: rachat
cash advance
noun
A cash advance is a service provided by most credit card and charge card issuers. The service allows cardholders to withdraw cash, either through an ATM or over the counter at a bank or other financial agency, up to a certain limit. For a credit card, this will be the credit limit.
Example: Each cash advance heaps more debt on to your card balance. It got so bad that we were getting cash advances on our credit cards to pay our credit card bills!
fr: Avance de fonds
Cash flow
noun
Cash Flow is the term that describes the inflow and outflow of cash in a business. The Net Cash Flow for a period of time is found by taking the Beginning Cash Balance and subtracting the Ending Cash Balance. A positive number indicates that more cash flowed into the business than out, where a negative number indicates the opposite.
Example: Unlike one-time sales, subscriptions generate steady cash flow and provide a convenient benchmark by which to measure growth
fr: Flux de trésorerie
Earnings per share
noun
Earnings per share (EPS) is a company's net profit divided by the number of common shares it has outstanding. EPS indicates how much money a company makes for each share of its stock, and is a widely used metric to estimate corporate value.
Example: In the case of Hemlock, its current quarterly earnings per share is calculated by dividing its net income of $250 million by the company’s 37 million outstanding shares
fr: Bénéfice par action
Floating interest rate
noun
A floating interest rate is an interest rate that moves up and down with the market or an index. It can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
Example: You can choose either a fixed or floating interest rate for the loan.
fr: Taux d'intérêt variable
General ledger
noun
A general ledger represents the record-keeping system for a company's financial data with debit and credit account records validated by a trial balance. The general ledger provides a record of each financial transaction that takes place during the life of an operating company.
Example: Cost can be easily found in the general ledger, but it is hard to determine the net realizable value.
fr: Grand livre général
Gross margin
noun
Gross margin is the difference between revenue and cost of goods sold, divided by revenue. Gross margin is expressed as a percentage. Generally, it is calculated as the selling price of an item, less the cost of goods sold, then divided by the same selling price.
Example: Gross profit margin should be stable since change in this ratio can have a significant impact on Net profit for the year and without adequate gross margin, a company will not be able to "pay its operation and other expenses and build for the future".
fr: Marge brute
Guarantor
noun
A guarantor is a financial term describing an individual who promises to pay a borrower's debt in the event that the borrower defaults on his or her loan obligation.
Example: From time to time we need to ask prospective tenants to provide a guarantor for the rent.
fr: Endosseur
Income Statement
noun
The Income Statement (often referred to as a Profit and Loss, or P&L) is the financial statement that shows the revenues, expenses, and profits over a given time period. Revenue earned is shown at the top of the report and various costs (expenses) are subtracted from it until all costs are accounted for; the result being Net Income.
Example: on-operating income and non-operating expenses shall be accounted for separately and separately disclosed in the income statement.
fr: État des résultats
Liability
noun
This business finance key term is a legal obligation to repay or otherwise settle a debt. Liabilities are considered either current (payable within one year or less) or long-term (payable after one year) and are listed on a business’s balance sheet. A business’s accounts payable, wages, taxes, and accrued expenses are all considered liabilities.
Example: This includes distributing assets and joint financial property as well as deciding who will assume responsibility for each liability.
fr: Passif
Net income
noun
Net income is your take-home pay after taxes and other payroll deductions. Your net income, the amount on your paycheck, is what's used to make your budget.
Example: My cousin has a net income of 15,000$ per year
fr: Revenu net
Overhead expenses
noun
Overhead expenses are all costs on the income statement except for direct labor, direct materials, and direct expenses. Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.
Example: The chain keeps its rates affordable by keeping its overhead costs low.
fr: Dépenses courantes
Trial balance
noun
A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into debit and credit account column totals that are equal. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.
Example: The bookkeeper brings the books to the trial balance stage : an accountant may prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper
