STACY ALICIA LLAIQUE TOLEDO 2°A

ACCOUNTING TERMS

1. Paying: Credit corresponding items to a current account. 2. Make records in the

credit of an account.
2. Credit: Part of an account where increases or decreases in obligations are recorded.
3. Cash: Funds in cash, checks and credit card payment receipts, in national or foreign
currency, available immediately.
4. Capital: Amount invested in a company by the owners, partners or shareholders.
5. Account: Formal record of a particular type of transaction expressed in money or
other unit of measure. Element of the accounting information system used to record
transactions in a systematic and homogeneous manner.
6. Disbursement: Outflow of cash. Payment in current currency or cheque.
7. Tax evasion: Illegal activity to avoid paying taxes.
8. Tax expenditure: Expenditure made by all institutions included in that sector,
including the Government, ministries and all those entities producing public goods or
services.
9. Auditor: Person who AUDITS financial accounts and records kept by others.
Includes both public accounting firms registered with the PCAOB and associated persons
thereof.
10. Book Value: Amount, net or CONTRA ACCOUNT balances, that an ASSET or
LIABILITY shows on the BALANCE SHEET of acompany. Also known as CARRYING
VALUE.
11. Cash Flows: Net of cash receipts and cash disbursements relating to a particular
activity during a specified accounting period.
12. Commodities: Bulk goods such as grains, metals, and foods traded on a
commodities exchange or on the SPOT MARKET.
13. Commission: Percentage of the selling price of the property, paid by the seller.
14. Commercial Paper: A way of borrowing money by using unsecured short-term
loans sold directly to the public, usually through professionally managed investments firms.
15. Control Risk: Measure of risk that errors exceeding a tolerable amount will not be
prevented or detected by an entity's internal controls.
16. Cost of Capital: Rate of return that a business could earn if it chose
another investment with equivalent risk.
17. Exchanges: Transfer of money, property or services in exchange for any
combination of these items.
18. Firm: A business partnership, especially when it is unincorporated.
19. Guaranty: Legal arrangement involving a promise by one person to perform the
obligations of a second person to a third person, in the event the second person fails to
perform.
20. Inflation: Rise in the prices of goods and services, as happens when spending
increases relative to the supply of goods on the market.