Essential Business Vocabulary - Finance

1. The bank runs a thorough credit check on all new companies wanting to open an .

expense outlet agency account

2. It is difficult to put a precise value on a publishing company, particularly a publisher of fiction. Much of its value depends on the price you attach to the loyalty of its authors, the author - editor relationship, and the value of the imprint or brand. These can be more important than the value of assets, such as property or inventory.

long-term intangible tangible short-term

3. The auditor insisted we our R&D costs over a period of five years, not ten.

balance advertise amortize appreciate

4. AGM is a common acronym that stands for General Meeting.

Attended April Authorized Annual

5. We have to watch these legal bills. Our attorneys have raised their three times this year and I don't remember receiving any notification.

forecasts budgets profits revenues rates

6. Many financial experts regard mutual as a relatively safe investment because the investor's risk is spread through the purchase of an equity stake in many companies in varying sectors.

friends shares bonds accounts funds

7. The regulatory bodies of the world's main stock exchanges insist that all companies listed and traded on their stock exchanges have their financial records by independent accountants once a year.

forecast estimated evaluated audited

8. We should study the accounts before we make an offer for the group.

consolidated incorporated arbitrated amalgamated

9. If the publicity department is going to use the new color printer on a number of projects and on an on - going basis, we should not be taking the financial hit all in the currant year. The costs should be over at least three years, perhaps five.

funded deferred spread forecast

10. We should be concentrating our resources on expanding the production and sales of our line of educational software. The of profit to cost on this software averages 3 : 1 , whereas we only just break even on the toys.

bottom line ratio gearing margin

11. Buying a new computer network will require an initial investment of $350,000.

profitable taxable capital appreciating

12.

13. The director of the shipping company was prosecuted after it was discovered that the ship was deliberately sunk and the goods that were were, in fact, sold on the black market in Latin America.

written off provided liquidated bought off

14. Expenses incurred travelling from the office to visit a client are deductible, but the expenses of getting from home to work is not.

budget cash tax account interest

15. The husband - and - wife team took out a bank loan to open their own restaurant, but

rates have soared and now they are having difficulty keeping up with the repayments.

fund interest liability gearing short-term

16. Our customer pointed out that we had given him a discount of only 14%, instead of 18% to which he was entitled, but said that instead of a rebate we should just the difference to his account.

credit debit discount adjust

17.

18.

19. ROI stands for “ return on “.

interest incurring investor investment index

20. Because ten of our largest clients deliberately delayed payment on their invoices, our firm has run into problems.

sales cash flow delivery production

21. When my brother and I wanted to start our own business, we needed to use both our family houses to the loan from the bank.

account earn defer result secure

22. When turned down by the major studio, the actor mortgaged his home and sold his yacht to finance the production of his film. However, the movie only $5 million at the box-office and now he is bankrupt.

incurred tendered grossed invested

23. The finance company was forced into bankruptcy when it became clear that its liabilities far exceeded its .

profits assets costs property losses

24. An increase in a company's sales will not produce a corresponding increase in profits if, at the same time, there is a dramatic increase in the of sales and/or overhead.

volume discount price cost

25. The today on a new car is enormous. A car is worth almost 15% less from the moment you buy it and drive it out of the showroom onto the street.

obsolescence discount premium depreciation

26. Because business was very slow that year, many department stores allowed credit card holders to payments on kitchen appliances for up to 90 days after purchase.

disregard defer discount depreciate

27. Compucore, Inc., increased its sales last year to $10 million, but profits dropped to only $250,000. The decrease in profitability was mainly because of cut-throat competition in the computer retail market, forcing prices down and squeezing .

results margins funds gearing

28. Ten years ago, exports to Europe accounted for 50% of the of New Zealand Butter Corporation, but now the majority of sales come from Asian countries, such as Singapore and Japan.

solvency capital tax credit revenue

29. While we were on vacation, our travel company went into and left us stranded without return flights.

liquidation profit agreement loss judgment

30. Our bank is becoming very agitated about our financial position. They have told us we need to pay back some of our overdraft and pay off some of our larger debts to reduce our .

margin funds liquidity gearing

31. As we export over half of our production of quality china, we always include generous

for currency fluctuations in our forecasts.

account consolidation provision depreciation cost

32. The CEO was convinced that the hostile takeover would not succeed because the small shareholders, who held 40% of the , wouldn't accept the bid.

gross debt finance equity

33.

34. The Dow Jones Index fell six points at the start of trading today, but the market gradually recovered during the rest of the day, finishing just half a point lower.

share stock investment bond fund

35. How do you describe a company whose current assets are greater than its current liabilities? intangible tangible solvent interest-free insolvent

36. Even though we have only a minority in the Spanish company that produces our components, we should be able to insist that they meet their delivery dates.

sale profit holding ratio liability

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