This glossary contains the words that people working in this field in their everyday life.
Account payable
noun
A liability account showing how much is owed for goods and services purchased on credit.
Example: In our company, managing accounts payable is a crucial aspect of our financial operations.
fr: Compte à payer
Account reconciliation
noun
The act of confirming that the balance in one’s checkbook matches the corresponding bank statement.
Example: Every month, we perform an account reconciliation to verify the accuracy of our financial data.
fr: Réconciliation des comptes
Accounts receivable
noun
Sales made but not paid-for by customers (trade debtors), shown as current (short-term) assets in a
balance sheet and are, in fact, unsecured promises by customers to pay.
Example: In our company, accounts receivable are regularly updated to reflect the most recent transactions.
fr: Comptes clients
Bankruptcy
noun
A legal proceeding involving a person or business that is unable to repay outstanding debts.
Example: Due to the economic downturn, the company faced bankruptcy, forcing it to close its doors and lay off its employees.
fr: La faillite
Breakeven point
noun
The point al which the income from sale of a product or service equals the invested costs, resulting in
neither profit nor loss; the stage at which income equals expenditure.
Example: Despite the initial losses, the business finally reached the breakeven point, where its revenue equaled its expenses.
fr: Seuil de rentabilité
Cash cycle
noun
The length of time between the purchase of raw materials and the collection of accounts receivable generated
in the sale of the final product.
Example: By optimizing our cash cycle, we were able to reduce the time it takes to convert inventory into cash, improving our overall financial efficiency.
fr: Cycle de trésorerie
Charge off
noun
The declaration by a creditor (usually a credit card account) that an amount of debt is unlikely to be collected.
This occurs when a consumer becomes severely delinquent on a debt.
Example: Following numerous unsuccessful collection efforts, the company decided to proceed with the charge off of the debt.
fr: Radiation de créance
Conservatism
noun
The belief that business systems should follow a safe approach to business practices.
Example: Under accounting conservatism, companies must take a cautious approach, preferring to underestimate rather than overestimate their financial position.
fr: Conservatisme
Current liabilities
noun
Obligations such as deferred dividend, trade credit and unpaid taxes, arising in the normal course of a
business and due for payment within a year.
Example: The company's current liabilities include accounts payable, accrued expenses, and short-term loans, all of which are due within the next year.
fr: Passif circulant
Debtor
noun
A company or individual that owes a sum of money.
Example: The debtor failed to make the scheduled payments, resulting in legal action being taken against them by the creditor.
fr: Débiteur
Deferred revenue
noun
Revenue that is considered a liability until it becomes relevant to the business at hand, such as a payment
received for work that has not yet been performed.
Example: The company reported deferred revenue on its balance sheet due to prepaid subscriptions that have not yet been fulfilled.
fr: Revenu différé
Doubtful account
noun
The name given to an account that records the sums (accounts) whose collection looks uncertain.
Such accounts are termed “bad debts” and are usually written off against the profit of the firm as
expense.
Example: The company recorded a provision for doubtful accounts to reflect uncertainty regarding the collection of these receivables.
fr: Compte douteux
Equity
noun
Total assets minus total liabilities; also called net worth or book value.
Example: The equity has significantly increased this year!
fr: Capitaux propres
Margin
noun
The difference between a sale price and a cost.
Example: The company's profit margin increased significantly after implementing cost-cutting measures.
fr: Marge
Overdraft
noun
A loan arrangement under which a bank extends credit up to a maximum amount against which a
current checking account customer can write checks or make withdrawals.
Example: The bank allowed the customer to access an overdraft facility to cover unexpected expenses when their account balance was insufficient.
fr: Découvert
Prime cost
noun
The direct cost of a commodity in terms of the materials and labor involved in its production, excluding
fixed costs.
Example: The prime cost of construction for the new building project includes the expenses for materials, labor, and equipment directly used in the construction process.
fr: Coût principal
Retained earnings
noun
Profit generated by a company that is not distributed to shareholders as dividends but is either
reinvested in the business or kept as reserve for specific objectives.
Example: At the end of the fiscal year, the company's retained earnings increased due to strong operational performance and prudent financial management.
fr: Les bénéfices non répartis
Running cost
noun
Money spent by a company for the purpose of managing the business and/ or for operating machinery
for use in the business.
Example: The running cost of operating the new machinery includes expenses for maintenance, repairs, and energy consumption.
fr: Coût d'exploitation
Shareholder
noun
An owner of shares in a company.
Example: The company distributed dividends to its shareholders as a reward for their investment in the business.
fr: Actionnaire
Solvency
noun
The ability to meet maturing obligations as they come due.
Example: Given the recent downturn in profits, there are doubts about the company's solvency moving forward.