To pass this unit, please study the 14 vocabulary words below.
- accounting equation
- capital
- contingent liabilities
- current assets
- draws
- goodwill
- income statement
- incur
- intangible asset
- intellectual property
- quantify
- shareholder equity
- sole proprietorship
- terminology
USA
UK
USA
UK
the foundation of double entry accounting which shows that all assets are either financed by borrowing money or paying with the money of the company's shareholders
USA
UK
"The accounting equation was the first thing I learned on the bookkeeping course I went on."
USA
UK
USA
UK
the total financial value of all assets, less any liabilities
USA
UK
"After three years trading the capital of the company had increased to $100m."
USA
UK
USA
UK
a potential obligation that may be incurred depending on the outcome of a future event
USA
UK
"The management accountant estimated a contingent liability of $45,000 on the purchase of the new property."
USA
UK
USA
UK
all assets that are expected to be converted into cash within one year of normal business activity
USA
UK
"Of course you cannot depreciate current assets as they won't be in the company a year from now."
USA
UK
USA
UK
the withdrawal of business cash or other assets by the owner for the personal use of the owner
USA
UK
"The accounting team tried to explain that the owner shouldn't make so many draws from the company as it was leading to huge losses."
USA
UK
USA
UK
the favour or advantage that a business has acquired especially through its brands and its good reputation
USA
UK
"The company had assets of $62 million excluding goodwill."
USA
UK
USA
UK
the financial statement which measures a company's financial performance over a specific accounting period
USA
UK
"After studying the income statement it was clear that the company was in financial trouble."
USA
UK
USA
UK
come into or acquire (some consequence, usually undesirable)
USA
UK
"The company has incurred taxes of $27,000 this quarter."
USA
UK
USA
UK
an asset which is not physical in nature, such as branding or a patent
USA
UK
"The valuation team had trouble valuing the intangible assets of the firm."
USA
UK
USA
UK
creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce
USA
UK
"Lawyers and accountants in Hollywood have to be experienced in intellectual property law."
USA
UK
USA
UK
determine or express the quantity of
USA
UK
"When entering a new market, you should be able to quantify the potential sales and the risk attached to them."
USA
UK
USA
UK
a firm's total assets minus its total liabilities
USA
UK
"The board of management was delighted with the 15% rise in shareholder equity on the past year."
USA
UK
USA
UK
a type of business entity that is owned and run by one individual
USA
UK
"Many people choose to form a sole proprietorship as it is the simplest form of business entity."
USA
UK
USA
UK
a specific vocabulary of technical terms, used in a particular field
USA
UK
"There is some very complicated terminology in accounting so you should make sure you have a good dictionary."