This is a glossary to help you when you read my blog to make sure you know the definition of the terms that will probably be used in it. Those terms are used very often in the world of accounting. I used Google and coraltreetech.com to find the terms and their definition.
accounts payable
noun
Accounts payable (AP) represents the total, short-term financial obligations a business owes to suppliers or vendors for goods and services purchased on credit.
Example: The company's annual report showed a significant increase in accounts payable due to recent inventory purchases on credit.
fr: comptes à payer
accounts receivable
noun
Accounts receivable (AR) represents the outstanding balance of money owed to a business by customers for goods or services already delivered on credit.
Example: Variation in Acid Test Ratio An entity should be seeking to find a balance between the advantages of high level liquidity, and the disadvantages of high ACCOUNTS RECEIVABLE turnover ratio.
fr: comptes débiteurs
acquisition
noun
An asset or object bought or obtained, typically by a library or museum.
Example: Asda has plans to open up to 200 small format stores in the next 5 years, whether this is done through ACQUISITION, or natural expansion remains to be seen.
fr: acquisition
break-even point
noun
The break-even point (BEP) is the level where a business's total revenue exactly equals its total costs.
Example: He also mentions that Bodycote exited from electroplating business (loss of £3.2 m in 2004), coming to a BREAK-EVEN POINT in 2005.
fr: seuil de rentabilité
budget
noun
An estimate of income and expenditure for a set period of time.
Example: Yet the profit margin would have been much greater because the process of development of these projects involve less professionals that need to be paid from the BUDGET.
fr: budget
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: A firm will have accepted all projects that offer a return greater than the cost of CAPITAL in such way that any other interim cash flows could only be reinvested at the cost of CAPITAL.
fr: capital
credit
noun
A credit is a bookkeeping entry that increases liabilities, equity, or revenue, and decreases assets or expenses, recorded on the right side of an account ledger.
Example: Since the company's Cash balance is decreased, the company will credit the account Cash for $4,000 and will debit the asset Office Equipment account for $4,000.
fr: crédit
debit
noun
An entry recording an amount owed, listed on the left-hand side or column of an account.
Example: The total of debits must balance the total of credits.
fr: débit
deferred revenue
noun phrase
It represents payment for goods or services not yet delivered, such as subscriptions, pre-paid contracts, or retainer fees.
Example: Stephen Penman, in his article (2003) on the quality of financial statements, puts forth certain changes that need to be implemented: An analysis of net revenue, a reconciliation of gross revenue to net revenue and a breakdown of booked and DEFERRED REVENUE is needed.
fr: revenus différés
dividends
noun
A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Example: Shareholders were furious over the firm's decision not to pay dividends.
fr: dividendes
equity
noun
The value of the shares issued by a company.
Example: It gives three pieces of information, assets, liabilities and owner's EQUITY.
fr: fonds
expenses
noun
The cost required for something; the money spent on something.
Example: The expense budget is used to look at anticipated and actual EXPENSES, for each department and for the organisation as a whole. It can show all types of EXPENSES or just focus on particular EXPENSES such as research.
fr: dépenses
financial statements
noun phrase
A financial statement is a formal record summarizing a business's financial activities and health over a specific period (month, quarter, or year), acting as a "report card" for stakeholders like investors, lenders, and managers to assess performance, position, and cash flow.
Example: The most obvious place this is true is the section in the annual report, the first section of notes to the FINANCIAL STATEMENTS, describes how this has been done.
fr: états financiers
fiscal year
noun
A fiscal year (FY) is a consecutive 12-month period used by governments, businesses, and organizations for accounting, budgeting, and financial reporting.
Example: Different with the dividend per share in Table 5 as there are changes of the total number of ordinary shares during the FISCAL YEAR.
fr: exercice fiscal
inventory
noun
A complete list of items such as property, goods in stock, or the contents of a building.
Example: The INVENTORY is checked after every pick up as this is when items are added to the INVENTORY as this is the when the INVENTORY is changed.
fr: inventaire
liquidity
noun
The availability of liquid assets to a market or company.
Example: Suppliers are concerned about payment of debt of company and availability of LIQUIDITY.
fr: liquidité
net income
noun
Net income for an individual describes your earnings after taxes, benefits and other payroll deductions.
Example: At the bottom there is the NET INCOME, this is the profit or loss for the given time.
fr: revenu net
profit
noun
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
Example: A supermarket cannot continue to operate if it does not make any PROFIT and so it is essential to know how to increase the total revenue.
fr: profit
revenue
noun
Income, especially when of a company or organization and of a substantial nature.
Example: It is important to know the responsiveness of food demand because it is closely related to total REVENUE as it depends on the extent to which the quantity sold changes as the price changes.
fr: revenu
trial balance
noun
A statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.
Example: He demonstrated year-end closing entries and proposed that a trial balance be used to prove a balanced ledger.