Business English 2 - 2nd Midterm

• LLC - Limited Liability Company 
• PLC – Public Limited Company 
• Bookkeeping – writing down the details of transaction
• Debits – money payed for the account 
• Credits – money payed into the account 
• Revenue – all the money recieved by a company during a given period 
• Liabilities – all the money that a company will have to pay someone else in future 
• Accounting – keeping financial records, recording income and expenditures, valuing assets and liabilities 
• Managerial accounting – preparing budgets and other financial reports necessary for management 
• Cost accounting – working out the unit cost of products, including materials, labour and other expenses 
• Tax accounting – calculating an individual’s or a company’s liability for tax 
• Creative accounting – using all available accounting procedures and tricks to disguise the true financial position of a company 
• Assets – anything owned by a business 
• Depreciation - the reduction in value of a fixed asset during the years it is in use 
• Creditors – sums of money owned by customers for goods or services purchased on credit 
• Debitors - sums of money owed by suppliers for purchases made on credit 
• Stock or Inventory - raw materials, work in progress and finished products stored ready for sale 
• Overheads - various expenses of operating a business that cannot be charged to any one product, process and department 
• Loan – amount of money you lend to someone 
• Cash card – a plastic card issued to bank costumers for use in cash dispensers 
• Standing order – an instruction to a bank to pay fixed sums of money to certain people or organizations at stated times 
• Yield – return on your loan
• Liquidity – available cash and how easily other assets can be turned into cash 
• Deposit - to place money in a bank; or money placed in a bank 
• Maturity – date when a loan becomes payable 
• Portfolio – collection of investments 
• Possibility of default – non payment of a loan 
• Collateral - anything that acts as a security or a guarantee for a loan 
• Junk bonds – bonds with high possibility of default and higher interest rate 
• Eurocurrency – any currency held outside its country of origin 
• Solvency - ability to pay liabilities when they are due 
• Account payable - liability created by buying goods or services on credit
• Equity or Net assets - The residual interest in the assets of an entity that remains after deducting its liabilities
• Appreciation - increase in value. If a machine cost 1000 dollars last year and is now worth 1200 dollars, it has appreciated in value by 200 dollars.
• Intangible assets - assets that cannot be seen or touched, such as patents, copyrights, and trademarks
• Long-term Liabilities - normally include the amounts of mortgages, bonds, and loans that are due more than a year in the future
• Reserve - appropriation of profits for a specific purpose such as the purchase of a fixed asset
• Subsidiary - a wholly or partially owned company that is a part of a larger corporation
• Called up share capital - total amount of issued capital for which the shareholders are required to pay
• Insolvency - a state when an individual or organization can no longer meet its financial obligations with its lenders