Glossary of Key Business Terms

Vocabulary flashcards covering key accounting, finance, and regulatory terms from the lecture notes.

Accounts Receivable

The outstanding payments a business is owed by its customers.

Acquisition

When one business takes over another business.

Auditing

The process of testing and evaluating a business’s accounting processes and internal control.

Australian Competition and Consumer Commission (ACCC)

Government body that enforces the Competition and Consumer Act 2010 and promotes competition, fair trading, and regulation of national infrastructure.

Australian Taxation Office (ATO)

The government body in charge of administering and collecting tax for the federal government.

Balance Sheet

Shows a business’s assets and liabilities (financial position) at a point in time.

Bookkeeping

The keeping and processing of a business’s financial records.

Budgeting

Estimating the business’s financial performance for a given future period.

Cash Book

Provides a summary of all the business’s cash receipts and payments, compiled from source documents.

Cash Flow

The money being transferred into and going out of the business.

Code of Practice

A written set of guidelines intended to help businesses achieve government standards, e.g., in dealing fairly with customers.

Consumer Affairs Victoria

Victoria’s government body that regulates the marketplace to ensure fairness for businesses and consumers.

Credit Terms

The terms and conditions of sale between a customer and a business, including time allowed for final payment.

Customer Database

A bank of information on existing and potential customers, including contact info, details, and buying habits.

Domain Name

The address of a website on the internet.

Exporter

A local business that manufactures goods for overseas customers.

Financial Control Systems

Processes, methods, and tools that allow a business to accurately monitor and manage its financial performance.

Freelancers

Independent workers who charge businesses or individuals for work on a per-job basis.

Income Statement

Used primarily to help a business calculate how much profit it has made over a period of time.

Inventory Control

Ensures that costs are minimised and that the business has access to the right amounts of materials when required.

Merger

The joining together of two or more businesses to form one business.

Policy

A written set of broad guidelines to be followed by all employees.

Procedure

A series of actions that enable a policy to be put into practice.

Procurement

The process of researching and selecting suppliers, negotiating contracts, and purchasing resources vital for production.

Progressive Tax Rate

A tax rate that increases as the individual earns a higher income.

Robotics

The engineering behind the design, construction, and application of robots.

Separate Entity Accounting Principle

Recognises that the owner’s finances are separate from those of the business; business transactions are recorded separately.

Social Media Advertising

Online advertising that uses social media channels to deliver targeted commercial messages to potential customers.

Source Documents

Written documents that provide evidence of a financial transaction.

Three-Dimensional (3D) Printing

The production of a physical object from a digital design or model.

WorkSafe Victoria

A government agency that aims to reduce workplace injuries and support injured workers.