Chapter 3: Making a career in Accounting

balance sheet

a document which summarizes the assets, liabilities and equity of a business entity at a given time

certified public accountant (CPA)

the American and Australian equivalent of a Chartered accountant

chief financial officer (CFO)

the most senior financial manager, responsible for overseeing the financial activities of the entire company

credit

an entry showing the amount of money owed to the company by its customers

debit

an entry showing an amount owed (due to be paid by the company), entered on the left hand side

deferral

the state for postponing the recognition of an asset or liability until a future time

double taxation

the state where income tax is paid twice (often to two different governments) on one income

due diligence

reasonable actions taken by a person to satisfy a law or regulation

foreign currency

the money used in another country

in excess of

more than, greater than

limited liability company (LLC)

a business entity where the debts of the company are separate from the debts of the share-holder

reconcile

to ensure that two figures agree with each other

record

a written account of a transaction

sole trader

a business which is owned and run by one person

trial balance

a statement of all debits and credits in the double-entry account book, with any discrepancies shown

trainee accountants

Accountants who are studying for professional examinations.

bookkeepers

Administrative staff that is responsible for processing the records of a business's financial activities.

tax accountant

An accountant who specializes in a company's tax affairs

back-office manager

A person in charge of the staff who is responsible for giving administrative support to the Finance department.

internal auditors

Employees of a company who are responsible for inspecting its accounts

external auditors

People employed by an outside firm of accountants and hired by a company to inspect its accounts

accounting

the art of recording, summarizing, reporting, and analyzing financial transactions

audit

an examination of records or financial accounts to check their accuracy

bookkeeping

the systematic recording of a company's financial transactions

financial accounting

reporting of the financial position and performance of a firm through financial statements issued to external users on a periodic basis

an account

a precise list or enumeration of financial transactions

financial statements

a written report of the financial condition of a firm

management accounting

the process of measurement, analysis, preparation and communication of financial information that is used by management to plan, evaluate, and control within an organization

financial condition

the status of a firm's assets, liabilities and equity positions at a specific point in time, often described in a financial statement

auditor

An accountant who reviews the accounting procedures of a company is called an _____

activity-based costing system

Do you have any experience in using an _____?

rule of thumb

A general _____ in business says that 20% of the product line produces 80% of the sales.

share

The term "equity" refers to the owners' _____ of the business

income statement

An expenditure will not necessarily show up on the _____ at the time the expenditure is made

eventually

All expenditures _____ ( = in time) show up as expenses.

expense

Something is an "_____" if it is chargeable against revenue during an accounting period.

chargeable

Something is an "expense" if it is _____ against revenue during an accounting period.

revenue

Something is an "expense" if it is chargeable against _____ during an accounting period.

fiscal year

Our company's _____ begins on May 1.

sales volume

Thanks to your hard work, we've seen some positive changes in _____. ( = we have started selling more)

business transactions

We really need to start keeping our _____ organized.