Hi, my name is Jasleen Pantlia. I live in Montreal, and I've been studying Accounting for two years at Ahuntsic College. The glossary I've created is designed to help both new and current accounting students. It includes important terms that are used in the field of accounting. By learning these words, you will be able to understand the basic ideas and concepts that are important in accounting. This glossary is a great way to start getting familiar with the language of accounting.
account payable
noun
A liability account showing how much is owed for goods and services purchased on credit.
Example: All known accounts payable have been included in the accounts.
en: compte à payer
account receivable
noun
Sales made but not paid-for by customers, shown as current assets in a balance sheet and are, in fact, unsecured promises by customers to pay.
Example: The company's accounts receivable include unpaid invoices from customers.
en: compte débiteur
amortize
verb
Reduce or pay off (a debt) with regular payment.
Example: The following year a sinking fund was established in an effort to amortize the debt.
en: amortir
asset
noun
An item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.
Example: Debiting the asset account.
en: actif
balance sheet
noun
A financial statement that summarizes a company's assets, liabilities and share holder's equity at a specific point in time.
Example: The accountant prepared the balance sheet to show the company’s financial position at the end of the year.
en: bilan
capital
noun
Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
Example: The entrepreneur raised enough capital from investors to launch her new startup.
en: capital
cash flow
noun
The total amount of money being transferred into and out of a business, especially as affecting liquidity,.
Example: The company needs positive cash flow to pay its employees on time.
en: flux de trésorerie
debt
noun
Something, typically money, that is owed or due.
Example: After taking out a loan for his new car, Jake found himself in a lot of debt.
en: dette
equity
noun
Total assets minus total liabilities;also called net worth or book value.
Example: The company’s equity increased after a profitable year and paying down some of its debt.
en: capitaux propres
expenses
noun
Any cost that contributes to a company's overall cost of doing business.
Example: The company's monthly expenses include rent and employee salaries.
en: dépenses
financial statement
noun
A document showing credits and debits.
Example: The accountant prepared the financial statement to provide a clear overview of the company's revenues, expenses, and profits for the year.
en: état financier
fixed costs
noun
A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.
Example: Rent and insurance are examples of fixed costs that a business must pay regardless of its sales revenue.
en: coûts fixes
general journal
noun
A book of raw business transactions recorded in chronological order by date.
Example: All sales were recorded in the general journal before being posted to the accounts.
en: journal général
gross income
noun
Receipts and gains from all sources less the cost of goods sold.
Example: John's gross income includes his salary, bonuses, and any additional earning before taxes and deductions.
en: revenu brut
gross profit
noun
Sales minus all costs directly related to those sales, including manufacturing expenses, raw materials, labor, selling, marketing and other expenses.
Example: The company's gross profit is the revenue minus the cost of goods sold.
en: bénéfice brut
income statement
noun
Shows a company's revenues, expenses and profitability over a period of time.
Example: The accountant prepared the income statement to show the company's profit for the year.
en: état des résultats
interest
noun
A charge with a loan, usually a percentage of the amount loaned.
Example: She pays 5% interest on her can loan every month.
en: intérêt
liability
noun
An obligation that legally binds an individual or company to settle a debt.
Example: The business' liability for those debts make the situation complicated.
en: passif
profit
noun
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Example: The company made a profit of $10 000 after deducting all expenses.
en: profit
tax
noun
A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.
Example: She pays a percentage of her salary as income tax every year.