This glossary contains the words people use when they work in accounting and management.
Accounts payable
noun
Accounts payable (AP) is an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers. Another common usage of "AP" refers to the business department or division that is responsible for making payments owed by the company to suppliers and other creditors.
fr: Comptes à payer
Asset
noun
property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies
Example: When Wilkinson paid for Hoopoe they also paid for its 'Goodwill' although not a tangible asset they have paid for the right to use the established brand that consumers have become loyal to.
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
Example: However, it is used as more "reliable guide to the liquidity of a business than the current assets held at the balance sheet date".
fr: Bilan
Book value
noun
Book value is equal to the cost of carrying an asset on a company's balance sheet, and firms calculate it netting the asset against its accumulated depreciation. ... Book value may also be known as "net book value"
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 comptable
Capital asset
noun
Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended for sale in the regular course of the business's operation
Example: If the capital asset Pricing Model (CAPM) is used the firm's beta is required, as well as the market return and the risk free rate.
fr: Immobilisation
Credit
noun
Consumer credit can be defined as "money, goods or services provided to an individual in the absence of immediate payment".
Example: Financial Analysis The first task for me when conducting a financial analysis is assess the farms goals in performance, solvency (whether or not a bank or supplier can safely grant credit) and potential value (whether an investment will be positive).
fr: Crédit
Debit
noun
A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet. In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction.
fr: Débit
Depreciation
noun
The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured as depreciation.
Example: Union officials feel that it might lead to the depreciation of this traditional institution.
fr: Dépréciation
Equity
noun
Equity represents the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debts were paid off. We can also think of equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset
Example: Debt to equity The debt to equity is a capital gearing ratio (Adams, 1997) and can also be called total liabilities to total equity ratio (Jagels& Coltman, 2004) and involves the scope of monetary support granted by the shareholders and loan suppliers.
fr: Capitaux Propres
Liability
noun
A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services
Example: A loan would be needed but if the research is in depth then it would not be too much of a liability.
fr: Passif
Liquidity
noun
Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price
Example: In addition NPV`s long term orientation may not be beneficial for firms with liquidity problems and or new growing firms that would prefer a less risky and more certain earlier payback.
fr: Liquidité
Payroll
noun
a list of a company's employees and the amount of money they are to be paid
Example: 23% of farms use computers for payroll purposes 39% of farms use computers for arable enterprise management 55% of farms use computers for livestock enterprise management
fr: Paie
Present value
noun
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest
Example: A buyer will use information on future rentals earning to calculate the present value they think the asset is worth.
fr: Valeur actuelle
Receipts
noun
A receipt is a written acknowledgment that something of value has been transferred from one party to another. In addition to the receipts consumers typically receive from vendors and service providers, receipts are also issued in business-to-business dealings as well as stock market transactions
Example: NPV evaluates the project over its entire life of 3 years whereas Payback ignores receipts after payback period and the overall profitability.
fr: Reçus
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. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.