My name is Benjamin Le, and I have created a glossary about Accounting Technology because it's my field of study. I've been studying Accounting Technology since August 2021 and will be for another two years. I have chosen this topic for my glossary because it's a glossary to help future accountants to speak English well, with the proper words and to facilitate the access of accountants' words. So, I want you to read the glossary, the definitions of each word and to listen to the word to help you with the pronunciation. Sources: I used Google and the Actively Engaged Online book.
Accounts payable
noun
The amount of money a company owes creditors (suppliers, etc.) in return for goods and/or services they have delivered.
Example: When recording an account payable, debit the asset or expense account to which a purchase relates and credit the accounts payable account. When an account payable is paid, debit accounts payable and credit cash.
fr: Comptes à payer
Assets
noun
Current assets (CA) are those that will be converted to cash within one year. Typically, this could be cash, inventory or accounts receivable. Fixed assets (FA) are long-term and will likely provide benefits to a company for more than one year, such as a real estate, land or major machinery.
Example: An asset can often generate cash flows in the future, such as a piece of machinery, a financial security, or a patent.
fr: Actifs
Balance sheet
noun
A financial report that summarizes a company's assets (what it owns), liabilities (what it owes) and owner or shareholder equity, at a given time.
Example: A balance sheet is comprised of two columns. The column on the left lists the assets of the company. It provides a snapshot of a company's finances as of the date of publication.
fr: Bilan
Capital
noun
A financial asset or the value of a financial asset, such as cash or goods. Working capital is calculated by taking your current assets subtracted from current liabilities—basically the money or assets an organization can put to work.
Example: Property rights give capital it's value and allow it to generate revenues and build wealth.
fr: Capitale
Cash flow
noun
The revenue or expense expected to be generated through business activities (sales, manufacturing, etc.) over a period of time.
Example: Cash flow from operations is comprised of expenditures made as part of the ordinary course of operations. Examples of these cash outflows are payroll, the cost of goods sold, rent, and utilities.
fr: Flux de trésorerie
Cost of goods sold
noun
The direct expenses related to producing the goods sold by a business. The formula for calculating this will depend on what is being produced, but as an example this may include the cost of the raw materials (parts) and the amount of employee labor used in production.
Example: The cost of goods made or bought is adjusted according to change in inventory. If 300 units are made or bought but inventory rises by 50 units, then the cost of 250 units is cost of goods sold.
fr: Coût des marchandises vendues
Credit
noun
An accounting entry that may either decrease assets or increase liabilities and equity on the company's balance sheet, depending on the transaction. When using the double-entry accounting method there will be two recorded entries for every transaction: A credit and a debit.
Example: When a consumer uses a Visa card to make a purchase, the card is considered a form of credit because the consumer is buying goods with the understanding that they will pay the bank back later.
fr: Crédit
Debit
noun
An accounting entry where there is either an increase in assets or a decrease in liabilities on a company's balance sheet.
Example: You would debit the purchase of a new computer by entering the asset gained on the left side of your asset account.
fr: Débit
Depreciation
noun
The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation represents how much of an asset's value has been used. It allows companies to earn revenue from the assets they own by paying for them over a certain period.
Example: . In 1879, owing to the continued depreciation of silver, the free coinage of silver was suspended.
fr: Dépréciation
Dividends
noun
A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividend-paying companies are typically eligible as long as they own the stock before the ex-dividend date.
Example: An example of a dividend is cash paid out to shareholders out of profits. They are usually paid quarterly.
fr: Dividendes
Equity
noun
Equity represents the shareholders' stake in the company, identified on a company's balance sheet.
fr: Équité
Expenses
noun
he fixed, variable, accrued or day-to-day costs that a business may incur through its operations.
Example: Self-employed filers can deduct an expense if it is necessary for business.
fr: Frais
Fixed Cost
noun
A fixed cost is a cost that stays the same regardless of increases or decreases in a company's output or revenues.
Example: Their retail branches are a fixed cost, so the more business they put through them the better.
fr: Coûts fixes
Inventory
noun
Inventory is a current asset and refers to all stock in the various production stages. By keeping stock, both retailers and manufacturers can continue to sell or build items.
Example: If a newspaper vendor uses a vehicle to deliver newspapers to the customers, only the newspaper will be considered inventory.
fr: Inventaire
Liabilities
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: Liabilities are accounts payable, accrued expenses, wages payable, and taxes payable.
fr: Dettes
Liquidity
noun
Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets, while tangible items are less liquid. The two main types of liquidity include market liquidity and accounting liquidity.
Example: High liquidity means that a company can easily meet its short-term debts while low liquidity implies the opposite and that a company could imminently face bankruptcy.
fr: Liquidité
Net income
noun
A company's total earnings, also called net profit. Net income is calculated by subtracting total expenses from total revenues.
Example: An example of an income is a $70,000 a year salary. Net income helps you understand how profitable your business is.
fr: Revenu net
Payroll
noun
Tracking operations that record, administrate, and analyze the compensation paid to employees are collectively known as payroll accounting. Payroll also includes fringe benefits distributed to employees and income taxes withheld from their paychecks.
Present Value
Example: Companies can use professional services and outsource their payroll or use cloud-based software if they do not want to do it themselves.
fr: Paie
Receipt
noun
A receipt is an official written record of a purchase or financial transaction. Receipts serve as proof that the transaction took place and allow those transactions to be processed for tax purposes.
Example: The receipt is a paper you get at the supermarket listing your groceries and what you paid for them.
fr: Reçu
Revenue
noun
Revenue describes the income a business earns by selling products and services associated with its main operations.
Example: A restaurant's revenue covers all food and beverage sales. It would not cover additional sources of income, such as the liquidation of equipment or real estate owned by the business.