Accounting and Finance - Business and Legal English-Karteikarten

profit

money a business makes after subtracting costs

e.g. The company's sales were high this year, so their ______ increased significantly.

reciept

a document showing that money has been paid

e.g. After buying the laptop, she kept the ______ in case she needed to return it.

consumers

people who buy goods or services

e.g. The marketing team studied ______' preferences to design a new product line.

expenditure

money spent on goods, services, or activities

e.g. The company reduced its ______ on office supplies to save money.

interest

extra money paid on a loan or earned on savings

e.g. The bank charges high ______ on credit card debt if it is not paid on time.

invoice

a document requesting payment for goods or services provided

e.g. The supplier sent an ______ for the 500 chairs delivered last week.

loan

money borrowed from a bank or other lender

e.g. They took out a ______ to expand their café and buy new equipment.

loss

when costs are higher than income; negative profit

e.g. The business reported a ______ last quarter because sales were lower than expected.

retail

selling goods directly to consumers

e.g. The company operates both online and in physical ______ stores across the country.

turnover

total sales or revenue of a business in a period

e.g. The company's annual ______ increased by 15% due to higher demand for its products.

wholesale

selling goods in large quantities, usually to retailers

e.g. The supplier sells products at ______ prices to shops that then sell them to customers.

balance sheet

a financial statement showing a company's assets, liabilities, and equity at a specific date

e.g. The accountant prepared the ______ to show the company's financial position at the end of the year.

equity

the value of the owners' share in the company (assets minus liabilities)

e.g. After paying off debts, the owners' ______ in the company increased significantly.

depreciation

the reduction in value of an asset over time

e.g. The company calculated the ______ of its delivery trucks to include in the financial report.

audit

a formal check of a company's financial accounts

e.g. The auditors completed the ______ to ensure all financial statements were accurate and legal.

gross profit

revenue minus the cost of goods sold (before other expenses)

e.g. The company's ______ grew after reducing production costs.

fiscal year

a 12-month period used for accounting and financial reporting

e.g. The company closed its books at the end of the ______ to prepare the annual report.

ledger

a book or record where all financial transactions are recorded

e.g. Every sale and purchase is entered into the company's ______ for accounting purposes.

net profit

profit after all costs, taxes, and expenses are deducted

e.g. After paying salaries, rent, and taxes, the company reported a small ______ for the quarter.

venture capital

money invested in a new or small business with high growth potential, usually in exchange for part ownership

e.g. The start-up received ______ from investors to develop its new app, hoping it would become profitable quickly.

to default

to fail to pay back money owed, such as a loan or debt

e.g. The company went into ______ after missing several payments on its bank loan.

collateral

something valuable that a borrower offers to a lender to secure a loan

e.g. The bank required the entrepreneur to use her house as ______ before approving the business loan.

cash flow

the movement of money into and out of a business

e.g. The accountant reviewed the company's ______ to ensure there was enough money to pay suppliers and employees.

liquidity

how easily a company can turn assets into cash to pay short-term debts

e.g. The firm's high ______ allowed it to cover unexpected expenses without borrowing money.

fraud

deliberate deception to gain money or advantage

e.g. The accountant discovered ______ when the employee created fake invoices to steal funds.

embezzlement

stealing money or property entrusted to you, usually at work

e.g. The CFO was arrested for ______ after transferring company money to a personal account

money laundering

making illegally obtained money appear legal

e.g. The bank reported suspicious transactions suspected to be part of ______.

tax evasion

illegal practice of not paying taxes owed

e.g. The business owner was investigated for ______ after hiding income in offshore accounts.

insider trading

using confidential company information to buy or sell stocks for personal gain

e.g. The investor was charged with ______ after selling shares based on unpublished financial results.