Vocabulary Words Every Accounting Manager Should Know

Account

Definition: A record of financial transactions; a personal description of events.

• She opened an account at the bank.
• He shared his account of what happened.
• The account showed all his expenses.

Account in a sentence

Money

Definition: Paper or coins used to buy things.

• I need money to buy a new book.
• He saved his money for a new bike.
• We use money to pay for food.

Money in a sentence

Bank

Definition: A place where money is kept or managed.

• I need to go to the bank to deposit my allowance.
• The bank offers loans for buying homes.
• He has a savings account at the bank.

Bank in a sentence

Cost

Definition: The amount of money needed to buy something.

• The cost of the book is ten dollars.
• She checked the cost of the concert tickets.
• It may cost more to travel during the holidays.

Cost in a sentence

Price

Definition: The amount of money required to buy something.

• The price of the shirt is ten dollars.
• I found a good price for my favorite book.
• Prices change depending on the store.

Price in a sentence

Pay

Definition: To give money for goods or services.

• I will pay for my lunch today.
• She forgot to pay the bill on time.
• They need to pay for their movie tickets.

Pay in a sentence

Sell

Definition: To give something to someone in exchange for money.

• I want to sell my old toys at the yard sale.
• The shop will sell fresh fruits and vegetables.
• He decided to sell his bike because he needed money.

Sell in a sentence

Buy

Definition: To get something by paying money.

• I want to buy a new phone.
• She bought a gift for her friend.
• They buy fresh vegetables from the market.

Buy in a sentence

Bill

Definition: a statement of money owed

• He received a bill for his phone service.
• The bill was higher than expected.
• She paid the bill at the restaurant.

Bill in a sentence

Tax

Definition: A compulsory financial charge imposed by the government.

• Everyone pays tax on their income.
• He learned about tax rates in his economics class.
• Taxes fund public services like schools and roads.

Tax in a sentence

Save

Definition: To keep something safe or to store for later.

• I save money for a new bike.
• Please save your work before turning off the computer.
• They save energy by using less electricity.

Save in a sentence

Earn

Definition: To receive money or reward for work done.

• She wants to earn money for a new bike.
• He hopes to earn a good grade this semester.
• You can earn points by completing tasks.

Earn in a sentence

Plan

Definition: A detailed proposal for doing or achieving something; a strategy or outline.

• They made a plan for their vacation next summer.
• Having a plan helps organize thoughts and actions.
• She wrote a plan for her science project.

Plan in a sentence

Report

Definition: A spoken or written account of something.

• I need to write a report about my science project.
• The news report covered the recent event.
• He will report the findings to the class.

Report in a sentence

Cash

Definition: Money in the form of coins or banknotes.

• I prefer to pay in cash.
• He kept some cash in his wallet.
• They accepted cash for the ticket.

Cash in a sentence

Total

Definition: the complete amount or sum

• The total cost of the items is $50.
• She calculated the total for the bill.
• Understanding total helps in math.

Total in a sentence

Loan

Definition: Money borrowed that is expected to be paid back.

• He took a loan to buy a car.
• The bank offered her a loan for school.
• She is paying off her loan slowly.

Loan in a sentence

Value

Definition: The importance or worth of something.

• Honesty has great value in life.
• The value of gold is very high.
• She understands the value of hard work.

Value in a sentence

Check

Definition: To look at something to verify its accuracy; a written order for payment.

• Please check your answers before submitting.
• He wrote a check to pay for the groceries.
• She will check the schedule for the meeting.

Check in a sentence

Budget

Definition: A plan for managing money; an estimate of income and expenses.

• I need to create a budget for my monthly spending.
• We saved money by sticking to our budget.
• The school has a budget for supplies and activities.

Budget in a sentence

Balance

Definition: A state of stability; an equal distribution of weight or amount.

• It's important to maintain a balance between work and play.
• She tries to balance her studies and hobbies.
• The scale showed a perfect balance.

Balance in a sentence

Credit

Definition: Recognition or acknowledgment, often for work done.

• She received credit for her hard work.
• You need to give credit to the author.
• He got credit for his contribution to the project.

Credit in a sentence

Debit

Definition: An entry recording an amount owed or payment made, often in a bank account.

• The debit from my account was for groceries.
• She checked her bank statement for recent debits.
• Understanding debits is important for managing money.

Debit in a sentence

Expense

Definition: The cost incurred in the course of doing business or personal activities.

• She tracked her monthly expenses carefully.
• The expense report was submitted for approval.
• Understanding expense management is crucial for budgeting.

Expense in a sentence

Income

Definition: The money received for work or through investments.

• Her income helps support the family.
• He saved part of his income for a vacation.
• They discussed ways to increase their income.

Income in a sentence

Invoice

Definition: A document that itemizes and records a transaction between a buyer and a seller.

• The company sent an invoice for the services provided.
• She checked the invoice for any errors before paying.
• An invoice is usually due within 30 days.

Invoice in a sentence

Profit

Definition: The financial gain made after subtracting expenses.

• The business made a profit last year.
• They hope to increase their profit this quarter.
• His hard work led to a profit for the company.

Profit in a sentence

Receipt

Definition: A document acknowledging that something has been received, especially in transactions.

• He kept the receipt for his new shoes.
• She asked for a receipt after buying the groceries.
• Understanding receipts is important for budgeting.

Receipt in a sentence

Accounting

Definition: The process of recording and analyzing financial transactions.

• He studies accounting to understand business finances.
• Accounting is important for keeping track of money.
• She works in accounting for a large corporation.

Accounting in a sentence

Finance

Definition: The management of money and investments.

• He studies finance at university.
• They discussed finance and budgeting in class.
• Good finance skills are important for saving money.

Finance in a sentence

Revenue

Definition: The income generated from normal business operations.

• The company's revenue increased this year.
• They need to find ways to boost their revenue.
• Government revenue comes from taxes.

Revenue in a sentence

Loss

Definition: the state of losing something; not having something anymore

• His loss of a pet made him very sad.
• The team felt the loss of their star player.
• She experienced a loss when her grandmother passed away.

Loss in a sentence

Asset

Definition: Something valuable owned by a person or company.

• The house is their biggest asset.
• Her skills are a great asset to the team.
• Investing in education is an important asset.

Asset in a sentence

Liability

Definition: the state of being responsible for something, especially in law

• He accepted liability for the accident.
• The company has a liability to its employees.
• Understanding liability is important in business.

Liability in a sentence

Equity

Definition: Fairness or justice in the way people are treated; ownership in a property.

• They believe in equity for all students.
• The company focuses on promoting equity in the workplace.
• She discussed equity in education during the meeting.

Equity in a sentence

Transaction

Definition: an instance of buying or selling something

• The transaction was completed online.
• He received a receipt for the transaction.
• They tracked the transaction in their records.

Transaction in a sentence

Audit

Definition: An official examination of accounts or financial records.

• The school will conduct an audit of its budget.
• An audit helps ensure that everything is accurate.
• They hired a company to perform the audit for transparency.

Audit in a sentence

Forecast

Definition: a prediction about future events

• The weather forecast says it will rain tomorrow.
• We reviewed the economic forecast for next year.
• The forecast showed sunny skies ahead.

Forecast in a sentence

Investment

Definition: The action of putting money into something to earn more money in the future.

• He made a smart investment in stocks.
• They discussed investment options for their savings.
• Her investment in education paid off.

Investment in a sentence

Statement

Definition: A clear expression of something in speech or writing.

• The teacher asked for a statement about the project.
• He made a statement about his favorite book.
• She wrote a statement to explain her opinion.

Statement in a sentence

Cash Flow

Definition: The movement of money in and out of a business or personal account.

• Monitoring cash flow is important for financial health.
• He created a cash flow plan for his new business.
• Understanding cash flow helps in budgeting and planning.

Cash Flow in a sentence

Assets

Definition: Items of value owned by a person or company.

• The company has many assets, including property.
• She invested in various assets for her future.
• Understanding your assets is important for financial planning.

Assets in a sentence

Liabilities

Definition: financial obligations or debts

• The company has many liabilities to pay.
• Understanding liabilities is crucial for financial health.
• They reviewed their liabilities before applying for a loan.

Liabilities in a sentence

Expenses

Definition: Costs or amounts of money spent on something.

• His monthly expenses include rent and food.
• She keeps track of her expenses to save money.
• They reduced their expenses by eating at home more.

Expenses in a sentence

Financial

Definition: Related to money or the management of money.

• She took a course in financial planning.
• The company is in a strong financial position.
• He needs financial advice for his budget.

Financial in a sentence

Depreciation

Definition: the decrease in value of an asset over time

• The car's depreciation means it's worth less than when we bought it.
• Understanding depreciation helps in calculating taxes.
• He learned about depreciation in his finance class.

Depreciation in a sentence

Ledger

Definition: A book or digital record used for keeping financial accounts.

• The accountant keeps a ledger of all transactions.
• We reviewed the ledger to find the expenses.
• The ledger helps track income and spending.

Ledger in a sentence

Compliance

Definition: Following rules or standards.

• The company is in compliance with safety regulations.
• They ensured compliance with the new laws.
• She checked for compliance with the guidelines.

Compliance in a sentence

Ratio

Definition: A relationship between two numbers or amounts.

• The ratio of students to teachers is important for learning.
• He calculated the ratio of boys to girls in the class.
• Understanding ratios helps with comparisons.

Ratio in a sentence

Valuation

Definition: the process of determining the value of an asset

• The valuation of the company was conducted last week.
• He learned how to perform a business valuation.
• Valuation helps in making investment decisions.

Valuation in a sentence

Reconciliation

Definition: The process of restoring friendly relations or resolving differences.

• They sought reconciliation after their argument.
• Reconciliation is important for maintaining friendships.
• The reconciliation of their views led to a better understanding.

Reconciliation in a sentence

Taxation

Definition: The process of collecting taxes from individuals and businesses by the government.

• Taxation is used to fund public services.
• They learned about taxation in social studies.
• Understanding taxation helps with financial planning.

Taxation in a sentence

Inventory

Definition: A list of items in stock or available.

• The store keeps an inventory of all products.
• We need to check the inventory before ordering more.
• His job is to manage the inventory of supplies.

Inventory in a sentence

Analysis

Definition: The detailed examination of something to understand it better.

• He did an analysis of the data for his project.
• Her analysis showed interesting results.
• They worked together on the analysis of the report.

Analysis in a sentence

Stakeholder

Definition: A person or group with an interest in a project or decision.

• The company considers all stakeholders in its decisions.
• Parents are important stakeholders in education.
• They invited stakeholders to discuss the new plan.

Stakeholder in a sentence

Management

Definition: The process of dealing with or controlling things or people.

• Good management is key to a successful project.
• She works in management at a large company.
• Effective management helps teams achieve their goals.

Management in a sentence

Accounting Principles

Definition: The rules and guidelines that govern financial reporting and accounting practices.

• Understanding accounting principles is essential for financial literacy.
• She studied accounting principles in her business class.
• The accounting principles help maintain transparency.

Accounting Principles in a sentence

Accrual

Definition: The accumulation of something over time.

• Accrual of interest can increase savings.
• The accountant explained the accrual process.
• Accrual accounting reflects financial realities.

Accrual in a sentence

Amortization

Definition: The process of gradually paying off a debt over time.

• Amortization schedules help manage loan payments.
• He learned about amortization in finance class.
• Understanding amortization is important for budgeting.

Amortization in a sentence

Balance Sheet

Definition: a financial statement showing assets, liabilities, and equity

• The accountant prepared the balance sheet for the company.
• A balance sheet helps assess financial health.
• They reviewed the balance sheet at the meeting.

Balance Sheet in a sentence

Benchmark

Definition: A standard used for comparison.

• They set a benchmark to measure student progress.
• The benchmark helps evaluate the effectiveness of programs.
• She used the benchmark to track her improvement.

Benchmark in a sentence

Capital

Definition: The city where a government is based; also refers to wealth used for investment.

• London is the capital of England.
• The company needs capital to expand its business.
• Understanding the concept of capital is important in economics.

Capital in a sentence

Fiscal

Definition: Related to government revenue, spending, and financial matters.

• The government announced a new fiscal policy.
• Fiscal responsibility is important for a healthy economy.
• She studied fiscal management in her finance course.

Fiscal in a sentence

Margin

Definition: The space between the edge of a page and the text; also refers to the difference in cost and revenue.

• He wrote notes in the margin of his book.
• The margin for error in the experiment was small.
• She adjusted the margin settings for her report.

Margin in a sentence

Solvency

Definition: The ability of an individual or organization to meet its long-term financial obligations.

• The company’s solvency was assessed during the audit.
• Maintaining solvency is crucial for business success.
• He learned about solvency in his finance class.

Solvency in a sentence

Variance

Definition: The difference between what is expected and what actually occurs.

• The variance in test scores surprised the teacher.
• Understanding variance can help improve future performance.
• The financial report showed a variance in expenses.

Variance in a sentence

Write-off

Definition: An amount that is deducted from taxable income or a debt that will not be paid.

• The company had to declare a write-off for the lost inventory.
• He claimed the expenses as a write-off on his taxes.
• The bank agreed to a write-off after the loan default.

Consolidation

Definition: the process of combining multiple things into one

• The consolidation of the two companies created a larger business.
• They are working on the consolidation of their debts.
• Understanding consolidation helps in understanding finance.

Consolidation in a sentence

Financial Statements

Definition: Formal records that outline the financial activities and position of a business.

• Understanding financial statements is crucial for investors.
• He analyzed the financial statements to assess the company's health.
• Financial statements include the balance sheet and income statement.

Financial Statements in a sentence

GAAP

Definition: Generally Accepted Accounting Principles; standard guidelines for financial reporting.

• Companies must follow GAAP for transparency.
• She learned about GAAP in her accounting class.
• GAAP ensures consistency in financial statements.

Liquidity

Definition: The ease with which an asset can be converted into cash.

• High liquidity means you can quickly access your money.
• She learned about liquidity in her finance class.
• Understanding liquidity is essential for financial management.

Liquidity in a sentence

Misstatement

Definition: An incorrect or false statement; a mistake in information.

• The report contained a misstatement about the data.
• He corrected the misstatement during the meeting.
• Misstatements can lead to misunderstandings.

Misstatement in a sentence

Retained Earnings

Definition: The portion of a company's profits that is kept for future use instead of being paid out as dividends.

• The company has significant retained earnings to invest in new projects.
• Retained earnings can help a business grow over time.
• Shareholders often look at retained earnings for financial health.

Retained Earnings in a sentence