To pass this unit, please study the 15 vocabulary words below.
- annual financial statement
- auditor
- bookkeeper
- CA (chartered accountant)
- code of conduct
- confidentiality
- creative accounting
- income tax
- local accounting standards
- management accountant
- payroll clerk
- purchase ledger clerk
- sales ledger clerk
- tax advisor
- VAT (value added tax)
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a yearly report typically including an income statement, balance sheet, cash flow statement, and financial notes
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"Once a year the shareholders review the annual financial statements to see if the company made a profit or loss."
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a specialist whose job is to carefully check the accounts and accounting practices of a company
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"The entire department was scared when the team of auditors arrived and asked to see all of the previous year's records."
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a person, who may or may not be qualified, that records the financial transactions of a business
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"A lot of smaller companies use bookkeepers for their daily accounting needs and only use an accountant for the yearly financial statements."
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a fully qualified accountant, holding current certification
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"When the bank asked for confirmation that John would be able to repay the loan, his chartered accountant provided it."
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a set of rules (often used within a company) which show the correct way to behave
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"All employees must follow the company's code of conduct."
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the state of being secret and/or kept secret
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"James was dismissed when he broke confidentiality and told his wife that the company was having financial problems."
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the use of holes in financial law to have an advantage or to show figures in a deceptive way
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"Some accountants often use creative accounting to try and cheat the tax authority out of monies due."
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the tax which is due on personal earnings
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"Most people complain about the rate of income tax, but for those earning over 40,000 a year who have to pay 32% it is an even less comfortable situation."
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the set of rules and laws for a country which govern how accounts should be prepared
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"Multinational corporations need to be aware of the local accounting standards of each country they operate in."
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a senior member of the accounting team, who liaises with company owners, and advises them on the financial aspects of any planned action
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"After the meeting with the management accountant, I realized that launching the new product line didn't make financial sense."
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a member of the accounting team who deals with employee compensation and other related issues
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"The sales-director asked the payroll clerk to issue bonuses to the top five sales people."
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(U.S. accounts payable) the member of the accounting team who deals with suppliers, issues payment for goods and services and keeps track of expenditure
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"When the supplier contacted the company to ask why the invoice wasn't paid, the purchase ledger clerk explained that the cheque was in the mail."
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(U.S. accounts receivable) a member of the accounting team who deals with sales, raises invoices and collects payment.
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"The sales ledger clerk made sure to issue the invoice on the same day as the sale."
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a specialist who is able to give advice on matters of taxation
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"Larger corporations often have a dedicated tax advisor to help them minimize the amount of tax that they need to pay."
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the tax which is due on the difference between the value of a product or service and the cost of its production
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"The government is talking about increasing the value added tax rate next year, which means the cost of consumer goods will increase."