Vocabulary Words Every Financial Clerk Should Know

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

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

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

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

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

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

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

Spend

Definition: To use money to buy something; to use time doing something.

• I want to spend my allowance on a new game.
• They decided to spend the weekend at the beach.
• She likes to spend time reading books.

Spend 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

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

Debt

Definition: Money owed to someone; an obligation to pay back.

• He is trying to pay off his debt.
• She learned about managing debt in finance class.
• Living within your means helps avoid debt.

Debt 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

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

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

Change

Definition: To make something different; the act of becoming different.

• She decided to change her hairstyle.
• He likes to change his routine every month.
• Change is a natural part of life.

Change 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

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

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

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

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

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

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

Deal

Definition: To agree on something or to distribute cards in a game.

• We made a deal to share the snacks.
• He had to deal with a difficult situation.
• Let's deal the cards and start the game.

Deal 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

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

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

Fund

Definition: Money set aside for a specific purpose.

• They raised funds for the charity.
• The school needs a fund for new books.
• She donated to the fund to help others.

Fund in a sentence

Interest

Definition: A feeling of wanting to know or learn about something; a stake in something.

• She has a strong interest in science.
• His interest in music started at a young age.
• They learned about how to manage their interest in saving.

Interest 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

Payment

Definition: Money given for goods or services.

• I made my payment for the concert tickets.
• The payment is due at the end of the month.
• We can process your payment online.

Payment in a sentence

Savings

Definition: Money that has been set aside or saved for future use.

• She deposited her savings in a bank account.
• His savings helped him buy a new bike.
• Understanding savings is important for financial planning.

Savings 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

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

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

Funds

Definition: Monies set aside for a specific purpose; financial resources.

• They raised funds for the community center.
• The charity received funds to support its programs.
• Managing funds requires careful budgeting and planning.

Funds 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

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

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

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

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

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

Financial Statement

Definition: A formal record of the financial activities of a business or individual.

• The financial statement showed a profit for the year.
• She reviewed the company's financial statement carefully.
• Understanding financial statements is crucial for investors.

Financial Statement 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

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

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

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

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

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

Expenditure

Definition: the amount of money spent

• The expenditure for the trip was higher than expected.
• She tracked her monthly expenditure carefully.
• Understanding expenditure helps in financial planning.

Expenditure 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

Bookkeeping

Definition: The process of recording financial transactions.

• Bookkeeping is essential for managing a business.
• She studied bookkeeping in her accounting course.
• Good bookkeeping helps keep track of expenses and income.

Bookkeeping in a sentence

Budgetary

Definition: Relating to the budget; concerning financial planning.

• They discussed budgetary constraints during the project.
• Budgetary decisions affect all departments.
• She prepared a budgetary report for the committee.

Budgetary 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

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

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

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

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

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

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

Accounts Payable

Definition: Money a company owes to suppliers.

• Accounts payable need to be managed carefully.
• The accountant reviewed the accounts payable.
• They discussed accounts payable in the meeting.

Accounts Payable in a sentence

Accounts Receivable

Definition: Money owed to a company by customers.

• Managing accounts receivable is essential for cash flow.
• The accounts receivable were higher than expected.
• She tracked the accounts receivable diligently.

Accounts Receivable in a sentence

Asset Management

Definition: The process of managing investments and financial assets to maximize returns.

• Effective asset management is crucial for financial success.
• He studied asset management in his finance course.
• Understanding asset management is important for investors.

Capital Expenditure

Definition: Money spent by a business to acquire or upgrade physical assets.

• The company approved a capital expenditure for new equipment.
• Understanding capital expenditure is important for budgeting.
• They tracked capital expenditure to manage finances.

Capital Expenditure in a sentence

Collateral

Definition: An asset used to secure a loan or guarantee repayment.

• He offered his car as collateral for the loan.
• Collateral is important for reducing lender risk.
• The bank required collateral for the mortgage.

Collateral in a sentence

Fiscal Year

Definition: A one-year period used for financial reporting and budgeting.

• The company's fiscal year ends in December.
• They prepared the budget for the upcoming fiscal year.
• Understanding the fiscal year is crucial for accounting.

Fiscal Year in a sentence

General Ledger

Definition: A complete record of all financial transactions in a business.

• The accountant updated the general ledger monthly.
• Understanding the general ledger is key for finance.
• They reviewed the general ledger for accuracy.

General Ledger in a sentence

Gross Profit

Definition: the revenue remaining after deducting the cost of goods sold

• The business calculated its gross profit for the year.
• He learned how to maximize gross profit in class.
• Tracking gross profit helps in understanding financial health.

Gross Profit in a sentence

Income Statement

Definition: a financial report showing revenue and expenses

• The income statement reveals the company’s profit.
• She analyzed the income statement for insights.
• The income statement is important for investors.

Income Statement in a sentence

Net Income

Definition: The amount of money earned after all expenses and taxes are deducted.

• His net income allows him to save for the future.
• She calculated her net income for budgeting purposes.
• Net income is an important figure for understanding finances.

Net Income in a sentence

Profit Margin

Definition: The difference between sales and costs.

• The profit margin for that product is quite high.
• They are working to improve their profit margin.
• A higher profit margin means better financial health.

Profit Margin in a sentence

Working Capital

Definition: the funds available for day-to-day operations

• A business needs working capital to operate smoothly.
• Understanding working capital is crucial for financial health.
• They managed their working capital carefully.

Working Capital in a sentence