Financial Vocabulary

#81

Credit entry

Example sentences

1. The accountant posted a credit entry to the sales account.
2. A credit entry reduced the cash balance in this record.
3. He corrected the wrong credit entry.

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#82

Journal entry

Example sentences

1. She made a journal entry for the rent payment.
2. Each journal entry has a debit and a credit.
3. The auditor reviewed the journal entry.

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#83

General ledger

Example sentences

1. The general ledger contains all company accounts.
2. He checked the general ledger before preparing the report.
3. Every journal entry moves into the general ledger.

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#84

Chart of accounts

Example sentences

1. The company added a travel account to its chart of accounts.
2. A chart of accounts organizes financial records.
3. She reviewed the chart of accounts with the accountant.

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#85

Trial balance

Example sentences

1. The accountant prepared a trial balance at month-end.
2. The trial balance showed equal debit and credit totals.
3. An error was found while checking the trial balance.

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#86

Double-entry bookkeeping

Example sentences

1. The company uses double-entry bookkeeping.
2. Double-entry bookkeeping records both sides of a transaction.
3. The accountant learned double-entry bookkeeping in class.

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#87

Accounts receivable

Example sentences

1. The company expects to collect its accounts receivable soon.
2. Late customers increased accounts receivable.
3. The manager reviews accounts receivable every week.

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#88

Accounts payable

Example sentences

1. The business paid its accounts payable on Monday.
2. Accounts payable includes bills owed to suppliers.
3. The accountant checks accounts payable before sending payments.

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#89

Inventory

Example sentences

1. The store counted its inventory at the end of the month.
2. Too much inventory can use a lot of cash.
3. The new inventory arrived this morning.

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#90

Cost of goods sold

Example sentences

1. The cost of goods sold rose because materials became expensive.
2. The company subtracts cost of goods sold from sales.
3. Lower cost of goods sold improved the gross profit.

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#91

Revenue recognition

Example sentences

1. The company follows a clear revenue recognition rule.
2. Revenue recognition happened when the service was completed.
3. The auditor questioned the timing of revenue recognition.

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#92

Matching principle

Example sentences

1. The matching principle links expenses with related revenue.
2. The accountant used the matching principle in the annual report.
3. The matching principle helps show a fair profit figure.

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#93

Accrued expense

Example sentences

1. Unpaid employee wages were recorded as an accrued expense.
2. The company included the accrued expense in December.
3. An accrued expense is recorded before cash is paid.

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#94

Prepaid expense

Example sentences

1. The yearly insurance payment became a prepaid expense.
2. The company records part of the prepaid expense each month.
3. A prepaid expense is paid before the benefit is used.

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#95

Deferred revenue

Example sentences

1. The advance customer payment was recorded as deferred revenue.
2. Deferred revenue becomes revenue after the service is provided.
3. The company reported higher deferred revenue this quarter.

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#96

Allowance for doubtful accounts

Example sentences

1. The company increased its allowance for doubtful accounts.
2. The allowance for doubtful accounts covers bills that may not be paid.
3. The accountant reviewed the allowance for doubtful accounts.

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#97

Depreciation

Example sentences

1. The truck loses value through depreciation each year.
2. The company records depreciation as an expense.
3. Depreciation spreads the cost of equipment over time.

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#98

Amortization expense

Example sentences

1. The company recorded amortization expense for the software license.
2. Amortization expense reduced reported profit.
3. The accountant calculated the yearly amortization expense.

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#99

Impairment

Example sentences

1. The damaged building required an impairment charge.
2. Impairment reduced the asset's recorded value.
3. The company tested the investment for impairment.

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#100

Write-off

Example sentences

1. The bank made a write-off for the unpaid loan.
2. The damaged equipment became a complete write-off.
3. A write-off removed the value from the accounts.

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