Hi, this glossary is made to help you when you have difficulties with some words associated with the Accounting and Management field of study. I hope it will be helpful for you!
Accounting Period
Noun
An Accounting Period is designated in all Financial Statements (Income Statement, Balance Sheet, and Statement of Cash Flows). The period communicates the span of time that is reported in the statements.
Example: The value calculated gives the number of times stock is turned over in that accounting period.
fr: Période comptable
Accounts Payable
Noun
Accounts Payable include all of the expenses that a business has incurred but has not yet paid. This account is recorded as a liability on the Balance Sheet as it is a debt owed by the company.
Example: I am going to check the accounts payables to see if we need to pay a supplier.
fr: Comptes payables
Accounts Receivable
Noun
Accounts Receivable include all of the revenue (sales) that a company has provided but has not yet collected payment on. This account is on the Balance Sheet, recorded as an asset that will likely convert to cash in the short-term.
Example: I am going to check the accounts receivable to see if someone needs to pay us.
fr: Comptes recevables
Balance Sheet
Noun
A financial statement that reports on all of a company’s assets, liabilities, and equity. As suggested by its name, a balance sheet abides by the equation .
Example: I need to do the balance sheet to see how many loans we have.
fr: Bilan
Book Value
Noun
As an asset is depreciated, it loses value. The Book Value shows the original value of an Asset, less any accumulated Depreciation.
Example: The measured photopeak energy compared with the book value for the same decay process.
fr: Valeur comptable
Cash Flow
Noun
Cash Flow is the term that describes the inflow and outflow of cash in a business. The Net Cash Flow for a period of time is found by taking the Beginning Cash Balance and subtracting the Ending Cash Balance. A positive number indicates that more cash flowed into the business than out, where a negative number indicates the opposite.
Example: Interest rates directly affect a household's cash flow: a change in interest rates alters the immediate burden of mortgages interest payments.
fr: Flux de trésorerie
Certified Public Accountant (CPA)
Noun
CPA is a professional designation that an accountant can earn by passing the CPA exam and fulfilling the requirements for both education and work experience, which vary by state.
Example: My Certified Public Accountant is doing the accounting of my business. He is really good.
fr: Expert-comptable agréé (CPA)
Depreciation
Noun
Depreciation is the term that accounts for the loss of value in an asset over time. Generally, an asset has to have substantial value in order to warrant depreciating it. Common assets to be depreciated are automobiles and equipment. Depreciation appears on the Income Statement as an expense and is often categorized as a “Non-Cash Expense” since it doesn’t have a direct impact on a company’s cash position.
Example: The jump in interest rate is because for the UIP condition to hold, the interest rate parity after the abandon of fixed exchange rate has to adjust immediately to reflect the depreciation in currency.
fr: Dépréciation
Enrolled Agent
Noun
An Enrolled Agent is a professional accounting designation assigned to professionals who have successfully passed tests showcasing expertise in business and personal taxes. Enrolled Agents are generally sought out to complete business tax filings to ensure compliance with the IRS.
Example: Make sure your accountant is an enrolled agent, it is safer for your money.
fr: Agent inscrit
Gross Margin
Noun
Gross Margin is a percentage calculated by taking Gross Profit and dividing by Revenue for the same period. It represents the profitability of a company after deducting the Cost of Goods Sold.
Example: The gross margin is calculated before all the accounting charges and tax.
fr: Marge brute
Human Resources (HR)
Noun
Human resources are the set of people who make up the workforce of an organization, business sector, industry, or economy. A narrower concept is human capital, the knowledge which the individuals embody. Similar terms include manpower, labor, personnel, associates, or simply people.
Example: An employee of a business is called a human resource.
fr: Ressources humaines (RH)
Interest
Noun
Interest is the amount paid on a loan or line of credit that exceeds the repayment of the principal balance.
Example: When you borrow money at the bank, you have to pay some interest.
fr: Intérêts
Inventory
Noun
Inventory is the term used to classify the assets that a company has purchased to sell to its customers that remain unsold. As these items are sold to customers, the inventory account will lower.
Example: When you buy some production materials, it raises the grocery inventory.
fr: Inventaire
Liquidity
Noun
A term referencing how quickly something can be converted into cash. For example, stocks are more liquid than a house since you can sell stocks (turning it into cash) more quickly than real estate.
Example: Your available money right now in the business is called liquidity.
fr: Liquidité
Payroll
Noun
Payroll is the account that shows payments to employee salaries, wages, bonuses, and deductions. Often this will appear on the Balance Sheet as a Liability that the company owes if there is accrued vacation pay or any unpaid wages.
Example: Keep track of staff payroll and create invoices.
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