The systematic process of recording, analyzing, interpreting, and reporting financial transactions for businesses or individuals.
Asset
noun
Resources with economic value that a business owns.
Example: Recording a new machine by increasing the machinery asset account.
Balance sheet
noun
Financial statement providing a snapshot of a company’s financial position at a specific point in time, detailing its assets, liabilities, and shareholders’ equity.
Example: According to the company's annual report, a strong cash reserve and low debt resulted in a healthy balance sheet at year-end.
Bankruptcy
noun
The state of being completely lacking in a particular quality or value.
Example: The company was forced into bankruptcy.
Bookkeeping
verb
The activity or occupation of keeping records of the financial affairs of a business.
Chartered accountant
noun
A highly skilled, internationally recognized accounting professional who has completed rigorous education, examination, and training in financial management, auditing, and taxation.
Civil servant
noun
A person employed in the public sector by a government department or agency for public sector undertakings.
Downsizing
verb
To make a company smaller by eliminating staff positions.
Income tax
noun
Income tax is a government levy on the earnings of individuals and businesses.
Example: Federal income tax will be deducted from your paycheck each month.
Liability
noun
A company’s legal financial debts.
Example: A company recording a $10,000 bank loan as a liability.
management
noun
The process of dealing with or controlling things or people.
Example: Business improved under the new management.
Merger
verb
A business deal where two existing, independent companies combine to form a new, singular legal entity.
Net profit
noun
The amount of money remaining after deducting a company's total expenses from its total revenue for a given accounting period.
NSF cheque
noun
A check that a bank refuses to honor because the account holder has insufficient funds to cover the payment.
Share
noun
Fractional unit of ownership in a company's capital.
Example: When issuing 10,000 shares at $23 with a $20 par value, the company debits cash for $230,000.
Stock exchange
noun
A market in which securities are bought and sold.
Example: Investors closely monitor the stock exchange.
