The total depreciation claimed, to date, on a property. It is an entry on the balance sheet and is supposed to properly reflect that the property is becoming less valuable with the passage of time.Realistically,in the case of real estate,the property is usually becoming more valuable each year.As a result,you may have a book value of $200,000 but a fair market value of $2,000,000.
Example: Kim have a computer with a value of $2000, but it's been three years since she had it, so its accrued depreciation is $500. So her computer has a true value of $1500.
fr: Amortissement cumulé
Asset
Noun
Items of ownership convertible into cash; total ressources of a person or business, as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate (opposed to liabilities).
Example: The computer of Alycia count as an asset.
fr: Actif
Balance sheet
Noun
Also called the statement of financial condition, it is a summary of a company's assets, liabilities, and owners' equity.
Example: The bank asked to see our balance sheet.
fr: Bilan
Bank reconciliation
Noun
The act or process of recording transactions that have occurred since one received one's bank statement in order to arrive at an accurate account balance. For example, if one spent $1,200 between bank statements, bank reconciliation involves recording those transactions so that they add up to $1,200.
Example: The bank made an error, I made a deposit of $300, but it's written $350 on the bank reconciliation, it will be fixed tomorrow.
fr: Rapprochement bancaire
Book value
Noun
A company's total assets minus intangible assets and liabilities, such as debt. A company's book value might be higher or lower than its market value.
Example: I bought a car $20000, but after the accrued depreciation, this capital asset book value is of $15000.
fr: Valeur comptable
Capital asset
Noun
A long-term asset, such as land or a building, not purchased or sold in the normal course of business.
Example: Naomie bought a house last friday. The house and the land are capital assets.
fr: Immobilisation
Cashflow
Noun
The movement of money into and out of a business.
Example: The business of Victor gained $200 but bought $100 of assets, its cashflow is of 100$ debit.
fr: Flux de trésorerie
Chart of accounts
Noun
A chart of accounts (COA) is a list of the categories used by an organization to classify and distinguish financial assets, liabilities, and transactions. It is used to organize the entity’s finances and segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the entity’s financial health
Example: The bank account is an asset that is represented in the chart of accounts as the number 1010.
fr: Plan comptable
Equity
Noun
The market value of a debtor's property in excess of all debts to wich it is liable.
Example: Jean-Pierre add $300 from his account to his business account, it is now an equity.
fr: Capitaux propres
Expense
Noun
In accounting, expense has a very specific meaning. It is an outflow of cash or other valuable assets from a person or company to another person or company.
Example: Philippe has to pay for the electric bill, it is an expense.
fr: Charges
Financial statement
Noun
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Example: The balance sheet and the income statement are financial statements.
fr: Rapport financier
Gross profit
Noun
Gross profit (Gross margin) is the net sales minus the cost of goods and services sold.
Example: The sales of Joseph are of $400, but the cost of his goods is of $200, so his gross profit is of $200.
fr: Bénéfice brut
Income
Noun
The monetary payment received for goods or services, or from other sources, as rents or investments.
Example: Juan made $100 for his work, it's his income.
fr: Produit
Income statement
Noun
An income statement is one of the financial statements of a company and shows the company's revenues and expenses during a particular period.
Example: If Bruno wants to see how much his business gained in February, he have to do his Income statement.
fr: État des résultats
Invoice
Noun
A document issued by a seller to a buyer listing the goods or services supplied and stating the sum of money due.
Example: Jonathan had an invoice sent from his supplier.
fr: Facture
Liability
Noun
Moneys owed; debts or pecuniary obligations (opposed to assets).
Example: Marco owns $200 to the flower seller, but he just have to pay in 30 days. he have to put it in his liability account.
fr: Passif
Net profit
Noun
Gross profit minus all operating costs not included in the calculation of gross profit, esp wages, overheads, and depreciation.
Example: Gertrude made her income statement to find her gross income. She suppressed her expenses from her gross income to obtain it.
fr: Bénéfice net
Supplier
Noun
A person or organization that provides something needed such as a product or service.
Example: China is a supplier of America.
fr: Fournisseur
To amortize
Verb
Amortization is the accounting practice of spreading the cost of an intangible asset over its useful life. Intangible assets are not physical in nature but they are, nonetheless, assets of value. So the action of.
Example: Copyright is a capital asset intangible, so we have to amortize it.
fr: Amortir (actif incorporel)
To depreciate
Verb
Depreciation is the expensing of a fixed asset over its useful life. Fixed assets are tangible objects acquired by a business. The action of.
Example: A field is not depreciated, it's an exception.