Dictionary of Accounting

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Dictionary of
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Accounting
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Fourth edition
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Dictionary of
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Accounting
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Fourth edition
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S.M.H. Collin
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A & C Black 앫 London

www.acblack.com
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First published in Great Britain in 1992
by Peter Collin Publishing
Second edition published 2001#
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Third edition published 2004
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This fourth edition published 2007

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A & C Black Publishers Ltd

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38 Soho Square, London W1D 3HB

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© A & C Black Publishers Ltd 2007

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All rights reserved. No part of this publication may be reproduced

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in any form or by any means without the permission of the publishers

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A CIP record for this book is available from the British Library
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eISBN-13: 978-1-4081-0228-2
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Text Production and Proofreading

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Heather Bateman, Stephen Curtis, Katy McAdam, Howard Sargeant

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This book is produced using paper that is made from wood grown in managed,
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sustainable forests. It is natural, renewable and recyclable. The logging and

manufacturing processes conform to the environmental regulations of the
country of origin.
Text typeset by A & C Black

Printed in Spain by GraphyCems

Preface
This dictionary provides a basic vocabulary of terms used in accounting,
from personal finance and investments to company accounts, balance
sheets and stock valuations. It is ideal for students of accounting and for
anyone who needs to check the meaning of an accountancy term, from
people working in businesses who may not be professional accountants to
translators or those for whom English is an additional language.
2
76
Each headword is explained in clear, straightforward English and
83
examples are given to show how the word may be used in context. There
23
are also quotations from newspapers and specialist magazines. Sample
documents and financial statements are also provided.
-
01
Thanks are due to Hannah Gray and Sarah Williams for their invaluable
03
help and advice during the production of this new edition.
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Pronunciation
The following symbols have been used to show the pronunciation of the main
words in the dictionary.
Stress has been indicated by a main stress mark ( ) and a secondary stress mark
(). Note that these are only guides, as the stress of the word changes according to
2
its position in the sentence.
76
83
Vowels Consonants
back b buck
23
ɑ harm d dead
-
ɒ stop ð other
01
ai type d jump
03
aυ how f fare
aiə hire gold
aυə hour h
#
head
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ɔ course j yellow
ɔi annoy k cab
in
e head l leave
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eə fair m mix
ei n
up
make nil
eυ go ŋ sing
ro
word p print
G
i keep r rest
i s
p
happy save
ap
ə about ʃ shop
i fit t take
ts
iə near tʃ change
ha
u annual θ theft
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u pool v value
υ book w work
si
υə tour x loch
ba
shut measure
Ab
z zone
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A.

Accounting.fm Page 1 Tuesday, February 13, 2007 1:40 PM
2
76
abnormal spoilage /bnɔm(ə)l
AAA abnormal spoilage
AAA abbreviation American Accounting
83
|
Association spɔilid / noun spoilage that contributes to

AAPA
an abnormal loss
23
AAPA abbreviation Association of Author-
above par /əbv pɑ/ adjective referring
above par
ised Public Accountants |
to a share with a market price higher than its
-
AARF
AARF abbreviation Australian Accounting
01
face value
Research Foundation
above-the-line /əbv ðə lain/ adjec-
above-the-line
03
AAT |
AAT abbreviation Association of Account- tive, adverb 1. used to describe entries in a

ing Technicians company’s profit and loss accounts that
#
abacus
abacus /bəkəs/ noun a counting device appear above the line which separates
consisting of parallel rods strung with beads, entries showing the origin of the funds that
us
still widely used for business and accounting have contributed to the profit or loss from
in China and Japan those that relate to its distribution. Excep-
in
abandonment
abandonment /əbndənmənt/ noun an tional and extraordinary items appear above

Jo
act of giving up voluntarily something that the line. 쑗 Exceptional items are noted
you own, such as an option or the right to a above the line in company accounts. 쒁
up
property 왍 abandonment of a claim giving below-the-line 2. relating to revenue items

up a claim in a civil action in a government budget
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abridged accounts /əbrid d əkaυnts/

abridged accounts
abatement
abatement /əbeitmənt/ noun a reduc- | |

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plural noun financial statements produced

tion in a payment, e.g., if a company’s or
individual’s total assets are insufficient to by a company that fall outside the require-
p
cover their debts or legacies ments stipulated in the Companies Act

ap
absorb /əbzɔb/ verb 1. to take in a small

absorb
ABB |
ABB abbreviation activity-based budgeting item so that it forms part of a larger one 왍 a
ts
abbreviated accounts
abbreviated accounts /əbrivieitid ə | | business which has been absorbed by a

ha
kaυnts/ plural noun a shortened version of competitor a small business which has been
a company’s annual accounts that a small or made part of a larger one 2. to assign an
W
medium sized company can file with the overhead to a particular cost centre in a com-
Registrar of Companies, instead of a full pany’s production accounts so that its iden-
si
version tity becomes lost. 쒁 absorption costing

ba
absorbed overhead /əbzɔbd

ABC absorbed overhead
ABC abbreviation activity-based costing |
əυvəhed/ noun an overhead attached to

Ab
ab initio
ab initio /b iniʃiəυ/ phrase a Latin

|
phrase meaning ‘from the beginning’ products or services by means of overhead

ABM absorption rates
ABM abbreviation activity-based manage-
Q
absorption /əbzɔpʃən/ noun the proc-

absorption
ment ess of making a smaller business part of a

A.
abnormal gain
abnormal gain /bnɔm(ə)l ein/ |

larger one, so that the smaller company in
noun any reduction in the volume of process effect no longer exists
loss below that set by the normal loss allow- absorption
absorption costing
costing /əbzɔpʃən |
ance. Abnormal gains are generally costed kɒstiŋ/ noun 1. a form of costing for a
as though they were completed products. product that includes both the direct costs of
abnormal loss
abnormal loss /bnɔm(ə)l lɒs/ noun | production and the indirect overhead costs
any losses which exceed the normal loss as well 2. an accounting practice in which
allowance. Abnormal losses are generally fixed and variable costs of production are
costed as though they were completed prod- absorbed by different cost centres. Provid-
ucts. ing all the products or services can be sold at

absorption rate 2
a price that covers the allocated costs, this
acceptance sampling
acceptance sampling /əkseptəns |
method ensures that both fixed and variable sɑmpliŋ/ noun the process of testing a
costs are recovered in full. 쒁 marginal cost- small sample of a batch to see if the whole
ing batch is good enough to be accepted
absorption rate /əbzɔpʃən reit/ noun
absorption rate
accepting house
|
accepting house /əkseptiŋ haυs/, |
a rate at which overhead costs are absorbed acceptance house /əkseptəns haυs/ |
into each unit of production noun a firm, usually a merchant bank, which
abstract /bstrkt/ noun a short form of
abstract
accepts bills of exchange at a discount, in

a report or document 쑗 to make an abstract return for immediate payment to the issuer,
of the company accounts in this case the Bank of England
2
abusive tax shelter /əbjusiv tks
abusive tax shelter Accepting Houses Committee
|
Accepting Houses Committee /ək
76
|
ʃeltə/ noun a tax shelter used illegally in septiŋ haυziz kəmiti/ noun the main|
order to avoid or reduce tax payments London merchant banks, which organise the
83
Academy of Accounting Historians
Academy of Accounting Historians
lending of money with the Bank of England.

/əkdəmi əv əkaυntiŋ histɔriənz/ They receive slightly better discount rates
23
| | |
noun a US organisation, founded in 1973, from the Bank.
-
that promotes the study of the history of acceptor
acceptor /əkseptə/ noun a person who
01
|
accounting accepts a bill of exchange by signing it, thus

ACAUS abbreviation Association of Char-
ACAUS
making a commitment to pay it by a speci-
03
tered Accountants in the United States fied date
ACCA abbreviation Association of Char-
ACCA accident insurance
accident insurance /ksid(ə)nt in

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tered Certified Accountants ʃυərəns/ noun insurance which will pay

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accelerate /əkseləreit/ verb to reduce the insured person when an accident takes
accelerate
the amount of time before a maturity date place

in
accelerated cost recovery system

accelerated cost recovery system accommodation
accommodation /əkɒmədeiʃ(ə)n/ | |
Jo
/kselrəreitid kɒst rikvəri sistəm/

| | noun money lent for a short time
noun a system used in the United States for accommodation bill
accommodation bill /əkɒmədeiʃ(ə)n

up
| |
calculating depreciation in a way that bil/ noun a bill of exchange where the per-
reduces tax liability son signing (the ‘drawee’) is helping another
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accelerated depreciation /ək

accelerated depreciation
|
company (the ‘drawer’) to raise a loan
seləreitid dipriʃieiʃ(ə)n/ noun a system
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account
of depreciation which reduces the value of

|
account /əkaυnt/ noun 1. a record of

|
financial transactions over a period of time,

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assets at a high rate in the early years to

such as money paid, received, borrowed or
ap
encourage companies, as a result of tax

advantages, to invest in new equipment owed 쑗 Please send me your account or a
detailed or an itemised account. 2. a struc-
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acceleration /əkseləreiʃ(ə)n/ noun the

acceleration
| |
tured record of financial transactions that
ha
speeding up of debt repayment may be maintained as a list or in a more for-

acceleration clause /əkseləreiʃ(ə)n
acceleration clause
mal structured credit and debit basis 3. (in a

W
| |
klɔz/ noun US a clause in a contract that shop) an arrangement in which a customer

provides for immediate payment of the total acquires goods and pays for them at a later
si
balance if there is a breach of contract date, usually the end of the month 쑗 to have
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acceptance /əkseptəns/ noun 1. the act

acceptance
| an account or a credit account with Harrods

of signing a bill of exchange to show that 쑗 Put it on my account or charge it to my
Ab
you agree to pay it 왍 to present a bill for account. 쑗 They are one of our largest
acceptance to present a bill for payment by accounts. 4. a period during which shares
Q
the person who has accepted it 2. a bill are traded for credit, and at the end of which
which has been accepted 3. the act of accept- the shares bought must be paid for (NOTE:
A.
ing an offer of new shares for which you On the London Stock Exchange, there are
have applied twenty-four accounts during the year, each
acceptance credit /əkseptəns kredit/
acceptance credit
|
running usually for ten working days.) 5. a
noun an arrangement of credit from a bank, customer who does a large amount of busi-
where the bank accepts bills of exchange ness with a firm and has an account with it 쑗
drawn on the bank by the debtor: the bank Smith Brothers is one of our largest
then discounts the bills and is responsible accounts. 쑗 Our sales people call on their
for paying them when they mature. The best accounts twice a month.
accountability
debtor owes the bank for the bills but these accountability /əkaυntəbiliti/ noun | |
are covered by letters of credit. the fact of being responsible to someone for

3 accounting concept
something, e.g. the accountability of direc-
account code
account code /əkaυnt kəυd/ noun a |
tors to the shareholders number assigned to a particular account in a

accountable /əkaυntəb(ə)l/ adjective
accountable
| numerical accounting system, e.g., a chart of

referring to a person who has to explain accounts
what has taken place or who is responsible account end
account end /əkaυnt end/ noun the end |
for something (NOTE: You are accountable of an accounting period

to someone for something.) account executive
account executive /əkaυnt i | |
account analysis /əkaυnt ənləsis/

account analysis
| |
zekjυtiv/ noun 1. an employee who looks
noun analysis of a company’s accounts with after customers or who is the link between
the aim of discerning how its activities affect customers and the company 2. an employee
2
its costs of an organisation such as a bank, public
76
accountancy /əkaυntənsi/ noun the
accountancy
|
relations firm or advertising agency who is
work of an accountant 쑗 They are studying responsible for looking after particular cli-
83
accountancy or They are accountancy stu- ents and handling their business with the
dents. organisation
23
accountancy bodies /əkaυntənsi
accountancy bodies
account form
|
account form /əkaυnt fɔm/ noun a bal- |
bɒdiz/ plural noun professional institu-
-
ance sheet laid out in horizontal form. It is
01
tions and associations for accountants the opposite of ‘report’ or ‘vertical’ form.
accountancy profession /əkaυntənsi
accountancy profession
accounting
accounting /əkaυntiŋ/ noun 1. the work
03
|
prəfeʃ(ə)n/ noun the professional bodies

|
of recording money paid, received, bor-

that establish entry standards, organise pro- rowed, or owed 쑗 accounting methods 쑗
fessional examinations, and draw up ethical
and technical guidelines for accountants #
accounting procedures 쑗 an accounting
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machine 2. accountancy, the work of an
accountant /əkaυntənt/ noun 1. a per-
accountant
|
accountant as a course of study
son who keeps a company’s accounts or
in
deals with an individual person’s tax affairs ‘…applicants will be professionally quali-
Jo
fied and have a degree in Commerce or

쑗 The chief accountant of a manufacturing
Accounting’ [Australian Financial
group. 쑗 The accountant has shown that
up
Review]
there is a sharp variance in our labour costs. Accounting and Finance Association of Australia and New Zealand
2. a person who advises a company on its Accounting and Finance Associa-

ro
finances 쑗 I send all my income tax queries tion of Australia and New Zealand /ə |
kaυntiŋ ən fainns əsəυsieiʃ(ə)n əv ɒs

G
to my accountant. 3. a person who examines | |
accounts treiliə ən nju zilənd/ noun an organisa-

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Accountants’ International Study

Accountants’ International Study Group
tion for accounting and finance academics,
ap
Group /əkaυntənts intənʃ(ə)nəl |

researchers and professionals working in
stdi rup/ noun a body of professional Australia and New Zealand. Abbreviation
ts
accounting bodies from the United States, AFAANZ

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accounting bases
Canada, and the United Kingdom that was accounting bases /əkaυntiŋ beisiz/ |
established in 1966 to research accounting plural noun the possible ways in which
W
practices in the three member countries. accounting concepts may be applied to

After publishing 20 reports, it was dis- financial transactions, e.g. the methods used
si
banded in 1977 with the foundation of the to depreciate assets, how intangible assets or
ba
International Federation of Accountants. work in progress are dealt with

accountant’s liability /əkaυntənts
accounting change
accounting change
accountant’s liability
/əkaυntiŋ
Ab
| |
laiəbiliti/ noun the legal liability of an

| tʃeind / noun any of various changes that
accountant who commits fraud or is held to affect a set of accounts, e.g. a change in the
Q
be negligent method of calculating the depreciation of

accountants’ opinion /əkaυntənts ə
accountants’ opinion
assets or a change in the size, structure or
A.
| |
pinjən/ noun a report of the audit of a com- nature of the company

pany’s books, carried out by a certified pub- accounting concept
accounting concept /əkaυntiŋ |
lic accountant (NOTE: The US term is audit kɒnsept/ noun a general assumption on
opinion.) which accounts are prepared. The main con-
accountants’ report /əkaυntənts ri
accountants’ report
| | cepts are: that the business is a going con-

pɔt/ noun in the United Kingdom, a report cern, that revenue and costs are noted when
written by accountants that is required by the they are incurred and not when cash is
London Stock Exchange to be included in received or paid, that the present accounts
the prospectus of a company seeking a list- are drawn up following the same principles
ing on the Exchange as the previous accounts, that the revenue or

accounting control 4
costs are only recorded if it is certain that accounting period /əkaυntiŋ piəriəd/
accounting period
they will be incurred. noun a period of time at the end of which the
accounting control /əkaυntiŋ kən
accounting control
| |
firm’s accounts are made up
trəυl/ noun procedures designed to ensure accounting policies /əkaυntiŋ
accounting policies
that source data for accounts are accurate pɒlisiz/ plural noun the accounting bases
and proper, in order to prevent fraud used by a company when preparing its finan-
accounting conventions /əkaυntiŋ
accounting conventions
|
cial statements
kənvenʃ(ə)nz/ plural noun the fundamen- accounting practice /əkaυntiŋ
accounting practice
| |
tal assumptions that govern the practice of prktis/ noun the way in which account-
accounting, e.g., consistency and prudence. ants and auditors implement accounting pol-
쒁 conceptual framework icies
2
76
accounting cycle /əkaυntiŋ saik(ə)l/ accounting principles /əkaυntiŋ
accounting cycle accounting principles
| |
noun the regular process of recording, ana- prinsip(ə)lz/ plural noun standards of
83
lysing and reporting a company’s transac- accuracy and probity that apply to those car-
tions for a given period rying out accounting procedures
23
accounting date /əkaυntiŋ deit/ noun Accounting Principles Board /ə
accounting date Accounting Principles Board
| |
the date on which an accounting period kaυntiŋ prinsip(ə)lz bɔd/ noun the US
-
01
ends, usually 31st December for annual body which issued Opinions that formed
accounts but it can in fact be any date much of US Generally Accepted Account-
03
Accounting Directives /əkaυntiŋ dai
Accounting Directives
| |
ing Principles up to 1973 when the Financial
rektivz/ plural noun a set of EU directives Accounting Standards Board (FASB) took
#
issued with the aim of regulating accounting over that role. Abbreviation APB
procedures in member states accounting procedure /əkaυntiŋ prə
accounting procedure
us
| |
accounting entity /əkaυntiŋ entəti/

accounting entity
|
sid ə/ noun an accounting method devel-
noun the unit for which financial statements oped by an individual or organisation to deal
in
and accounting records are prepared, e.g., a with routine accounting tasks
Jo
limited company or a partnership. 쒁 report- accounting profits /əkaυntiŋ prɒfits/

accounting profits
ing entity plural noun the difference between revenue

up
accounting equation /əkaυntiŋ i

accounting equation
| |
and the costs of production
kwei (ə)n/ noun the basic formula that accounting rate of return /əkaυntiŋ
accounting rate of return
ro
underpins double-entry bookkeeping. It can reit əv ritn/ noun a method of valuing

|
G
be expressed most simply as ‘assets + shares in a company where the company’s

expenses = liabilities + capital + revenue’ estimated future profits are divided by the
p
where the debit amounts to the left of the rate of return required by investors. Abbrevi-
ap
equals sign must be equivalent to the credit ation ARR

amounts to the right. Also called balance accounting
accounting records
records /əkaυntiŋ
ts
sheet equation rekɔdz/ plural noun all documents in

ha
accounting error /əkaυntiŋ erə/ noun

accounting error
| which accounting information is recorded,

any accounting inaccuracy or misrepresen- used during the preparation of financial
W
tation that is the result of error, not inten- statements

tional fraud accounting reference date /əkaυntiŋ
accounting reference date
si
accounting event /əkaυntiŋ ivent/ ref(ə)rəns deit/ noun the last day of a
accounting event
ba
| |
noun a transaction recorded in a business’s company’s accounting reference period.

books of account Abbreviation ARD
Ab
accounting fees /əkaυntiŋ fiz/ plural accounting reference period /ə

accounting fees accounting reference period
| |
noun fees paid to an accountant for prepar- kaυntiŋ ref(ə)rəns piəriəd/ noun 1. the
Q
ing accounts, which are deductible against period for which a company makes up its
tax accounts. In most, but not all, cases, the
A.
accounting information system /ə

accounting information system
|
period is 12 months. 2. the period for which
kaυntiŋ infəmeiʃ(ə)n sistəm/ noun a
|
corporation tax is calculated
system, usually computer-based, that proc- accounting software /əkaυntiŋ
accounting software
esses information on a company’s transac- sɒftweə/ noun computer programs used to

tions for accounting purposes enter and process accounts information
accounting manual /əkaυntiŋ accounting standard /əkaυntiŋ
accounting manual accounting standard
| |
mnjuəl/ noun a handbook or set of stndəd/ noun an authoritative statement

instructions that set out all procedures and of how particular types of transaction and
responsibilities of those engaged in an other events should be reflected in financial
entity’s accounting systems statements. Compliance with accounting

5 accumulated profit
standards will normally be necessary for accretion /əkriʃ(ə)n/ noun the process
accretion
financial statements to give a true and fair of adding interest to a fund over a period of
view. (NOTE: These principles are recom- time
mended by the Accounting Standards accrual /əkruəl/ noun a gradual increase
accrual
Board in the United Kingdom or by the by addition

FASB in the United States.) accruals /əkruəlz/ plural noun same as
accruals
Accounting Standards Board /ə

Accounting Standards Board
| accrued liabilities
kaυntiŋ stndədz bɔd/ noun a commit- accruals basis /əkruəl beisis/, accru-
accruals basis
tee set up by British accounting institutions als concept /əkruəlz kɒnsept/ noun a |
to monitor methods used in accounting. method of preparing accounts in which rev-

Abbreviation ASB
2
enues and costs are both reported during the
Accounting Standards Committee
76
Accounting Standards Committee
period to which they refer and not during the

/əkaυntiŋ stndədz kəmiti/ noun a UK
| | period when payments are received or made
83
accounting standards issuing body whose accrue /əkru/ verb 1. to record a finan-
accrue
functions were taken over by the ASB in cial transaction in accounts when it takes
23
1990. Abbreviation ASC place, and not when payment is made or
accounting system /əkaυntiŋ
accounting system
received 2. to increase and be due for pay-
-
|
sistəm/ noun the means used by an organi- ment at a later date 쑗 Interest accrues from
01
sation to produce its accounting information the beginning of the month.
03
accounting technician /əkaυntiŋ tek
accounting technician
| | accrued dividend /əkrud dividend/

accrued dividend
niʃ(ə)n/ noun a person who assists in the noun a dividend earned since the last divi-
preparation of accounts but who is not a
#
dend was paid
fully qualified accountant accrued expense /əkrud ikspens/
accrued expense
us
| |
accounting unit /əkaυntiŋ junit/

accounting unit
| noun an expense that has been incurred

noun any unit which takes part in financial within a given accounting period but not yet
in
transactions which are recorded in a set of paid

Jo
accounts. It can be a department, a sole accrued income /əkrud inkm/ noun

accrued income
trader, a Plc or some other unit. revenue entered in accounts, although pay-
up
account payee /əkaυnt peii/ noun the

account payee
| | ment has not yet been received

words printed on most UK cheques indicat- accrued interest /əkrud intrəst/ noun
accrued interest
ro
ing that the cheque can only be paid into the interest which has been earned by an inter-
account of the person or business to whom est-bearing investment 쑗 Accrued interest is
G
the cheque is written, or be cashed for a fee added quarterly.

p
at an agency offering a cheque cashing serv- accrued liabilities /əkrud laiə

accrued liabilities
ap
| |
ice bilitiz/ plural noun liabilities which are

accounts /əkaυnts/ plural noun detailed
accounts
recorded in an accounting period, although

ts
records of a company’s financial affairs payment has not yet been made. This refers
ha
accounts department /əkaυnts di

accounts department
| | to liabilities such as rent, electricity, etc.

pɑtmənt/ noun a department in a com- Also called accruals
W
pany which deals with money paid, accrued revenue /əkrud revənju/
accrued revenue
received, borrowed, or owed noun same as accrued income

si
accounts manager /əkaυnts

accounts manager
|
accumulate /əkjumjυleit/ verb to grow
accumulate
ba
mnid ə/ noun the manager of an in quantity by being added to, or to get more
accounts department of something over a period of time 쑗 We
Ab
accounts payable /əkaυnts peiəb(ə)l/

accounts payable
| allow dividends to accumulate in the fund.

plural noun money owed by a company accumulated depreciation
accumulated depreciation
/ə |
Q
accounts receivable /əkaυnts ri kjumjυleitid dipriʃieiʃ(ə)n/ noun the

accounts receivable
| | | |
sivəb(ə)l/ plural noun money owed to a total amount by which an asset has been
A.
company. Abbreviation AR depreciated since it was purchased

accounts receivable turnover /ə accumulated earnings tax /ə
accounts receivable turnover accumulated earnings tax
| |
kaυnts risivəb(ə)l tnəυvə/ noun a

| kjumjυleitid niŋz tks/, accumu-
statistic showing on average how long cus- lated profits tax /əkjumjυleitid prɒfits |
tomers take to pay money they owe for tks/ noun US a tax on earnings above a
goods or services received specified limit which are unjustifiably
accrete /əkrit/ verb 1. (of a fund) to have
accrete
|
retained in a business to avoid paying higher
interest added to it 2. (of assets) to grow as personal income tax
a result of mergers, expansion or the acqui- accumulated profit /əkjumjυleitid
accumulated profit
sition of other interests prɒfit/ noun a profit which is not paid as

accumulated reserves 6
dividend but is taken over into the accounts activity-based budgeting /ktiviti
activity-based budgeting
of the following year beist bd itiŋ/ noun the allocation of

accumulated
accumulated reserves
reserves /ə |
resources to individual activities. Activity-
kjumjυleitid rizvz/ plural noun
|
based budgeting involves determining
reserves which a company has put aside over which activities incur costs within an organ-
a period of years isation, establishing the relationships
accumulation
accumulation
/əkjumjυleiʃ(ə)n/
| |
between them, and then deciding how much
noun the process of growing larger by being of the total budget should be allocated to
added to, or of getting more and more of each activity. Abbreviation ABB
activity-based costing /ktiviti
activity-based costing
something |
beist kɒstiŋ/ noun a costing system used
2
ACH abbreviation US Automated Clearing
ACH
to assign overhead costs to specific items
76
House
produced, by looking at specific cost drivers.
acid test /sid test/, acid test ratio
acid test
83
Abbreviation ABC. 쒁 cost driver, activity
noun same as liquidity ratio driver, resource driver
23
acquisition /kwiziʃ(ə)n/ noun the
acquisition
activity-based management /k

activity-based management
|
|
takeover of a company. The results and cash tiviti beist mnid mənt/ noun a sys-
-
flows of the acquired company are brought tem of management that uses activity-based
01
into the group accounts only from the date of cost information for a variety of purposes
acquisition: the figures for the previous
03
including cost reduction, cost modelling and
period for the reporting entity should not be customer profitability analysis. Abbrevia-
adjusted. The difference between the fair tion ABM
value of the net identifiable assets acquired
#
activity chart /ktiviti tʃɑt/ noun a
activity chart
us
|
and the fair value of the purchase considera- plan showing work which has been done,
tion is goodwill. made so that it can be compared to a previ-
in
acquisition accounting /kwi

acquisition accounting
|
ous plan showing how much work should be
ziʃ(ə)n əkaυntiŋ/ noun a full consolida-
Jo
|
done
tion, where the assets of a subsidiary com- activity cost pool /ktiviti kɒst pul/
activity cost pool
pany which has been purchased are included

up
noun a grouping of all cost elements associ-

in the parent company’s balance sheet, and ated with an activity
the premium paid for the goodwill is written
ro
activity driver /ktiviti draivə/ a type

activity driver
off against the year’s earnings

|
of cost driver which is used to quantify the

G
across-the-board /əkrɒs ðə bɔd/

across-the-board
|
activities involved in creating a product or
p
adjective applying to everything or everyone service

쑗 an across-the-board price increase or
ap
activity driver analysis /ktiviti

activity driver analysis
wage increase draivər ənləsis/ noun the identification

ts
act /kt/ noun a law passed by parliament

act
and evaluation of the activity drivers used to

ha
which must be obeyed by the people trace the cost of activities to cost objects. It
active /ktiv/ adjective involving many
active
may also involve selecting activity drivers

W
transactions or activities 쑗 an active with potential to contribute to the cost man-

demand for oil shares 쑗 an active day on the agement function with particular reference
si
Stock Exchange 쑗 Computer shares are very to cost reduction.

ba
active. act of God /kt əv ɒd/ noun some-

act of God
active account /ktiv əkaυnt/ noun

active account
thing you do not expect to happen and which

Ab
an account, such as a bank account or invest- cannot be avoided, e.g. a storm or a flood
ment account, which is used to deposit and (NOTE: Acts of God are not usually covered
Q
withdraw money frequently by insurance policies.)

actual /ktʃuəl/ adjective real or correct
actual
active partner /ktiv pɑtnə/ noun a

active partner
A.
partner who works in a company that is a 쑗 What is the actual cost of one unit? 쑗 The
partnership actual figures for directors’ expenses are not
activity /ktiviti/ noun something which
activity
|
shown to the shareholders.
actual cash value /ktʃuəl kʃ
actual cash value
is done, especially something which is

involved in creating a product or a service vlju/ noun the amount of money, less
‘…preliminary indications of the level of depreciation, that it would cost to replace
business investment and activity during something damaged beyond repair with a
the March quarter will provide a good pic- comparable item
actual cost /ktʃuəl kɒst/ noun the total
actual cost
ture of economic activity in the year’ [Aus-

tralian Financial Review] cost of producing or buying an item, which

7 adjustable
may include, e.g., its price plus the cost of living with them, formerly called the ‘sin-
delivery or storage gle-parent allowance’
actual price /ktʃuəl prais/ noun a additional premium /ədiʃ(ə)nəl
actual price additional premium
price for a commodity which is for immedi- primiəm/ noun a payment made to cover
ate delivery extra items in an existing insurance
actuals /ktʃuəlz/ plural noun real fig- additional voluntary contributions
actuals additional voluntary contributions
ures 쑗 These figures are the actuals for last /ədiʃ(ə)n(ə)l

| vɒlənt(ə)ri kɒntri |
year. bjuʃ(ə)nz/ plural noun extra payments

actuarial /ktʃueəriəl/ adjective calcu-
actuarial
|
made voluntarily by an employee to a pen-
lated by an actuary 쑗 The premiums are sion scheme on top of the normal contribu-
tions, up to a maximum of 15% of gross
2
worked out according to actuarial calcula-
76
tions. earnings. Abbreviation AVCs
adequate disclosure /dikwət dis
adequate disclosure
actuarial tables /ktʃueəriəl

actuarial tables
|
83
teib(ə)lz/ plural noun lists showing how kləυ ə/ noun a comprehensive presenta-
long people are likely to live, used to calcu- tion of statistics in financial statements, such
23
late life assurance premiums and annuities that they can be used to inform investment
actuary /ktʃuəri/ noun a person
actuary
decisions
-
01
adjudicate /əd udikeit/ verb to give a
adjudicate
employed by an insurance company or other |
organisation to calculate the risk involved in judgment between two parties in law or to
03
an insurance, and therefore the premiums decide a legal problem 쑗 to adjudicate a
payable by people taking out insurance claim 쑗 to adjudicate in a dispute 왍 he was
#
add /d/ verb to put figures together to
add
adjudicated bankrupt he was declared
make a total 쑗 If you add the interest to the legally bankrupt
us
adjudication /əd udikeiʃ(ə)n/ noun
adjudication
capital you will get quite a large sum. 쑗 | |
Interest is added monthly. the act of giving a judgment or of deciding a

in
add up /d p/ phrasal verb to put several legal problem

Jo
figures together to make a total 쑗 He made adjudication of bankruptcy /ə

adjudication of bankruptcy
a mistake in adding up the column of fig- d udikeiʃ(ə)n əv bŋkrptsi/ noun a

up
ures. legal order making someone bankrupt

add up to /d p tυ/ phrasal verb to make adjudication tribunal /əd udi
adjudication tribunal
ro
| |
a total of 쑗 The total expenditure adds up to keiʃ(ə)n traibjun(ə)l/ noun a group

|
more than £1,000. which adjudicates in industrial disputes

G
added value /did vlju/ noun an adjudicator /əd udikeitə/ noun 1. a

added value adjudicator
p
amount added to the value of a product or person who gives a decision on a problem 쑗
ap
service, equal to the difference between its an adjudicator in an industrial dispute 2. 왍

cost and the amount received when it is sold. the Adjudicator official who examines
ts
Wages, taxes, etc. are deducted from the complaints from individuals and businesses
ha
added value to give the profit. 쒁 VAT about how the Inland Revenue handles their
addend /dend/ noun a number added to
addend
affairs, but does not deal with questions of
W
the augend in an addition tax liability

adjust /əd st/ verb to change something
adjust
addition /ədiʃ(ə)n/ noun 1. a thing or per-

addition
si
|
|
son added 쑗 The management has stopped to fit new conditions 쑗 Prices are adjusted
ba
all additions to the staff. 쑗 We are exhibiting for inflation.

several additions to our product line. 쑗 The ‘…inflation-adjusted GNP moved up at a
Ab
marketing director is the latest addition to 1.3% annual rate’ [Fortune]

the board. 2. an arithmetical operation con- ‘Saudi Arabia will no longer adjust its pro-
Q
sisting of adding together two or more num- duction to match short-term supply with
bers to make a sum 쑗 You don’t need a cal- demand’ [Economist]
A.
culator to do simple addition. ‘…on a seasonally-adjusted basis, output

additional /ədiʃ(ə)nəl/ adjective extra
additional
|
of trucks, electric power, steel and paper
which is added 쑗 additional costs 쑗 They decreased’ [Business Week]
sent us a list of additional charges. 쑗 Some adjustable rate mortgage /ə
adjustable rate mortgage
additional clauses were added to the con- d stəb(ə)l reit mɔid / noun a mort-
tract. 쑗 Additional duty will have to be paid. gage where the interest rate changes accord-
additional personal allowance /ə
additional personal allowance
|
ing to the current market rates. Abbreviation
diʃ(ə)nəl ps(ə)n(ə)l əlaυəns/ noun a |
ARM
tax allowance which can be claimed by a adjustable rate preferred stock /ə
adjustable
single person who has a child of school age d stəb(ə)l reit prifd stɒk/ noun |

adjusted gross income 8

preference shares on which dividends are ADR abbreviation American Depositary
ADR
paid in line with the interest rate on Treasury Receipt

bills. Abbreviation ARPS ad valorem /d vəlɔrəm/ adjective
ad valorem
adjusted gross income /əd stid

adjusted gross income
|
used to describe a tax or commission, e.g.,
rəυs inkm/ noun US a person’s total Value Added Tax, that is calculated on the
annual income less expenses, pension con- value of the goods or services provided,
tributions, capital losses, etc., used as a basis rather than on their number or size 쑗 ad val-
to calculate federal income tax. Abbrevia- orem duty 쑗 ad valorem tax
tion AGI ad valorem duty /d vəlɔrəm djuti/
ad valorem duty
adjuster /əd stə/ noun a person who

adjuster
|
noun the duty calculated on the sales value
calculates losses for an insurance company
2
of the goods
76
adjusting entry /əd stiŋ entri/ noun
adjusting entry
ad valorem tax /d vəlɔrem tks/

ad valorem tax
|
|
an entry in accounts which is made to cor- noun a tax calculated according to the value
83
rect a mistake in the accounts of the goods taxed
adjustment /əd stmənt/ noun 1. an
adjustment
23
advance /ədvɑns/ noun money paid as a
| advance
entry in accounts which does not represent a |
receipt or payment, but which is made to loan or as a part of a payment to be made
-
later 쑗 She asked if she could have a cash
01
make the accounts correct 2. a change in the
exchange rates, made to correct a balance of advance. 쑗 We paid her an advance on
account. 쑗 Can I have an advance of $100
03
payment deficit
against next month’s salary? 쐽 adjective
administer /ədministə/ verb to organise,
administer
|
early, or taking place before something else
manage or direct the whole of an organisa-
tion or part of one 쑗 She administers a large
happens 쑗 advance payment 쑗 Advance
#
us
holiday bookings are up on last year. 쑗 You
pension fund. must give seven days’ advance notice of
administered price /ədministəd
administered price
withdrawals from the account. 쐽 verb 1. to

in
prais/ noun US a price fixed by a manufac- pay an amount of money to someone as a

Jo
turer which cannot be varied by a retailer loan or as a part of a payment to be made

(NOTE: The UK term is resale price mainte- later 쑗 The bank advanced him $100,000
up
nance.) against the security of his house. 2. to make

administration /ədministreiʃ(ə)n/
administration
something happen earlier 쑗 The date of the

ro
| |
noun 1. the action of organising, controlling shipping has been advanced to May 10th. 쑗
G
or managing a company 2. an appointment The meeting with the German distributors

by a court of a person to manage the affairs has been advanced from 11.00 to 9.30.
p
of a company advance payment guarantee /əd

advance payment guarantee
ap
administration costs /ədmini

administration costs
| |
vɑns peimənt rənti/, advance pay- |
streiʃ(ə)n kɒsts/, administration ment bond /ədvɑns peimənt bɒnd/

ts
expenses /ədministreiʃ(ə)n ikspensiz/

| | |
noun a guarantee that enables a buyer to
ha
plural noun the costs of management, not recover an advance payment made under a
including production, marketing, or distri- contract or order if the supplier fails to fulfil
W
bution costs its contractual obligations

administrative expenses /əd
administrative expenses
si
adverse balance /dvs bləns/

adverse balance
|
ministrətiv ikspensiz/ plural noun same noun the deficit on an account, especially a
ba
as administration costs nation’s balance of payments account

administrative receiver /əd
administrative receiver
Ab
adverse opinion /dvs əpinjən/

| adverse opinion
ministrətiv risivə/ noun a person

|
noun US an auditor’s report that a com-

|
appointed by a court to administer the affairs pany’s financial statement is not a fair repre-
Q
of a company sentation of the company’s actual financial

administrative receivership /əd
administrative receivership
A.
|
position
ministrətiv risivəʃip/ noun the appoint-
|
adverse variance /dvs veəriəns/

adverse variance
ment of an administrative receiver by a

debenture holder noun variance which shows that the actual
result is worse than expected. Also called
administrator /ədministreitə/ noun 1. a
administrator
unfavourable variance
|
person who directs the work of other

advice /ədvais/ noun a notification telling
advice
employees in a business 쑗 After several |
years as a college teacher, she hopes to someone what has happened

adviser /ədvaizə/, advisor noun a person
adviser
become an administrator. 2. a person |
appointed by a court to manage the affairs of who suggests what should be done 쑗 He is
someone who dies without leaving a will consulting the company’s legal adviser.

9 agreed
advisory /ədvaiz(ə)ri/ adjective as an taxed as an employee of the agency, not of
advisory
adviser 쑗 She is acting in an advisory the company where he or she actually

capacity. works.
advisory funds /ədvaiz(ə)ri fndz/ agenda /əd endə/ noun a list of things to
advisory funds agenda
| |
plural noun funds placed with a financial be discussed at a meeting 쑗 The conference
institution to invest on behalf of a client, the agenda or the agenda of 쑗 After two hours
institution investing them at its own discre- we were still discussing the first item on the
tion agenda. 쑗 We usually put finance at the top
AFAANZ abbreviation Accounting and
AFAANZ
of the agenda. 쑗 The chair wants two items
Finance Association of Australia and New removed from or taken off the agenda.
2
agent /eid ənt/ noun 1. a person who rep-
agent
Zealand
76
AFBD abbreviation Association of Futures
AFBD
resents a company or another person in an
Brokers and Dealers area 쑗 to be the agent for BMW cars 쑗 to be
83
affiliated /əfilieitid/ adjective connected
affiliated
|
the agent for IBM 2. a person in charge of an
with or owned by another company 쑗 Smiths agency 쑗 The estate agent sent me a list of
23
Ltd is one of our affiliated companies. properties for sale.
agent bank /eid ənt bŋk/ noun a bank
agent bank
-
affiliated enterprise /əfilieitid
affiliated enterprise
01
entəpraiz/, affiliated company /ə |
which uses the credit card system set up by
filieitid kmp(ə)ni/ noun company another bank
03
agent’s commission /eid ənts kə
agent’s commission
which is partly owned by another (though |
less than 50%), and where the share-owning miʃ(ə)n/ noun money, often a percentage
company exerts some management control
or has a close trading relationship with the
of sales, paid to an agent
#
age-related /eid rileitid/ adjective
us
age-related
associate 쑗 one of our affiliated companies connected with a person’s age

in
aftermarket /ɑftəmɑkit/ noun a mar-

aftermarket
age-related allowance /eid rileitid

age-related allowance
| |
ket in new shares, which starts immediately əlaυəns/ noun an extra tax allowance
Jo
after trading in the shares begins which a person over 65 may be entitled to
after tax /ɑftər tks/ adverb after tax
after tax
aggregate /riət/ adjective total, with

aggregate
up
has been paid everything added together 쑗 aggregate out-

put
ro
after-tax profit /ɑftə tks prɒfit/

after-tax profit
noun a profit after tax has been deducted aggregate demand /riət di
aggregate demand
G
age analysis of debtors /eid ə

age analysis of debtors
| mɑnd/ noun the total demand for goods

and services from all sectors of the economy
p
nləsis əv detəz/ noun the amount owed

including individuals, companies and the
ap
by debtors, classified by age of debt

aged debtors analysis /eid d detəz ə
aged debtors analysis
|
government 쑗 Economists are studying the
ts
nləsis/, ageing schedule /eid iŋ recent fall in aggregate demand. 쑗 As

incomes have risen, so has aggregate
ha
ʃedjul/ noun a list which analyses a com-

pany’s debtors, showing the number of days demand.
W
aggregate risk /riət risk/ noun the

aggregate risk
their payments are outstanding

agency /eid ənsi/ noun 1. an office or job
agency
risk which a bank runs in lending to a cus-
si
of representing another company in an area tomer

ba
쑗 They signed an agency agreement or an aggregate supply /riət səplai/

aggregate supply
agency contract. 2. an office or business noun all goods and services on the market 쑗
Ab
which arranges things for other companies Is aggregate supply meeting aggregate
agency bank /eid ənsi bŋk/ noun a
agency bank
demand?
AGI abbreviation US adjusted gross income
Q
AGI
bank which does not accept deposits, but

acts as an agent for another, usually foreign, agio /d iəυ/ noun 1. a charge made for
agio
A.
bank changing money of one currency into

agency bill /eid ənsi bil/ noun a bill of another, or for changing banknotes into cash
agency bill
exchange drawn on the local branch of a for- 2. the difference between two values, such
eign bank as between the interest charged on loans
agency broker /eid ənsi brəυkə/ noun
agency broker
made by a bank and the interest paid by the
a dealer who acts as the agent for an investor, bank on deposits, or the difference between
buying and selling for a commission the values of two currencies
AGM abbreviation Annual General Meeting
AGM
agency worker /eid ənsi wkə/ noun

agency worker
agreed /ərid/ adjective having been

agreed
a person who is employed by an agency to |
work for another company. He or she is accepted by everyone 쑗 We pay an agreed

agreed price 10
amount each month. 쑗 The agreed terms of allow for /əlaυ fɔ/ phrasal verb to give a
|
employment are laid down in the contract. discount for something, or to add an extra
agreed price /ərid prais/ noun a price
agreed price
|
sum to cover something 쑗 to allow for mon-
which has been accepted by both the buyer ey paid in advance 쑗 Add on an extra 10%
and seller to allow for postage and packing.
AICPA abbreviation American Institute of allowable /əlaυəb(ə)l/ adjective legally
AICPA allowable
Certified Public Accountants accepted. Opposite disallowable

AIM abbreviation Alternative Investment
AIM
allowable deductions /əlaυəb(ə)l di

allowable deductions
| |
Market dkʃ(ə)ns/ plural noun deductions from

airmail transfer /eəmeil trnsf/
airmail transfer
income which are allowed by the Inland
2
noun an act of sending money from one Revenue, and which reduce the tax payable
76
bank to another by airmail allowable expenses /əlaυəb(ə)l ik
allowable expenses
| |
alien corporation /eiliən kɔpə

alien corporation
spensiz/ plural noun business expenses
83
|
reiʃ(ə)n/ noun US a company which is which can be claimed against tax

incorporated in a foreign country allowable losses /əlaυəb(ə)l lɒsiz/
23
allowable losses
A list /ei list/ noun a list of members of a

A list
plural noun losses, e.g. on the sale of assets,

company at the time it is wound up who may
-
which are allowed to be set off against gains
01
be liable for the company’s unpaid debts allowance /əlaυəns/ noun 1. money
allowance
all-in price /ɔl in prais/ noun a price

all-in price
which is given for a special reason 쑗 a travel
03
which covers all items in a purchase such as allowance or a travelling allowance 2. a part
goods, delivery, tax or insurance of an income which is not taxed 쑗 allow-
all-in rate /ɔl in reit/ noun 1. a price
#
all-in rate
ances against tax or tax allowances 쑗 per-

us
which covers all the costs connected with a sonal allowances (NOTE: The US term is
purchase, such as delivery, tax and insur- exemption) 3. money removed in the form
ance, as well as the cost of the goods them-
in
of a discount 쑗 an allowance for deprecia-

selves 2. a wage which includes all extra tion 쑗 an allowance for exchange loss
Jo
payments such as bonuses and merit pay ‘…the compensation plan includes base,
allocate /ləkeit/ verb 1. to divide some-
allocate
incentive and car allowance totalling

up
thing in various ways and share it out 쑗 How $50,000+’ [Globe and Mail (Toronto)]
are we going to allocate the available office
ro
allowance for bad debt /əlaυəns fə

allowance for bad debt
space? 2. to assign a whole item of cost, or bd det/ noun a provision made in a com-
G
of revenue, to a single cost unit, centre, pany’s accounts for debts which may never
account or time period be paid
p
allocated costs /ləkeitd kɒsts/ plu-

allocated costs
ap
allowances against tax /əlaυənsiz ə

| allowances against tax
ral noun overhead costs which have been | |
allocated to a specific cost centre enst tks/ plural noun part of someone’s
ts
income which is not taxed

allocation /ləkeiʃ(ə)n/ noun the proc-
allocation
ha
all-risks policy /ɔl risks pɒlisi/ noun

all-risks policy
ess of providing sums of money for particu-

lar purposes, or a sum provided for a pur- an insurance policy which covers risks of
W
pose 쑗 the allocation of funds to a project any kind, with no exclusions

alternative cost /ɔltnətiv kɒst/
alternative cost
allot /əlɒt/ verb to share out

allot
si
|
|
allotment /əlɒtmənt/ noun 1. the process

allotment
noun same as opportunity cost
ba
Alternative Investment Market /ɔl

Alternative Investment Market
of sharing out something, especially money |
lnətiv investmənt mɑkit/ noun a

Ab
between various departments, projects or |
people 쑗 The allotment of funds to each London stock market, regulated by the Lon-
project is the responsibility of the finance don Stock Exchange, dealing in shares in
Q
director. 2. the act of giving shares in a new smaller companies which are not listed on
company to people who have applied for the main London Stock Exchange. Abbrevi-
A.
them 쑗 share allotment 쑗 payment in full on ation AIM (NOTE: The AIM is a way in which
allotment smaller companies can sell shares to the
allow /əlaυ/ verb 1. to say that someone
allow
|
investing public without going to the
can do something 쑗 Junior members of staff expense of obtaining a full share listing.)
are not allowed to use the chairman’s lift. 쑗 alternative minimum tax /ɔllnətiv
alternative minimum tax
The company allows all members of staff to miniməm tks/ noun US a way of calcu-
take six days’ holiday at Christmas. 2. to lating US income tax that is intended to
give 쑗 to allow 5% discount to members of ensure that wealthy individuals, corpora-
staff 3. to agree to or accept legally 쑗 to tions, trusts, and estates pay at least some tax
allow a claim or an appeal regardless of deductions, but that is increas-

11 Annual General Meeting

ingly targeting the middle class. Abbrevia- analyse a statement of account 쑗 to analyse
tion AMT the market potential
amalgamate /əmləmeit/ verb to join analysis /ənləsis/ noun a detailed
amalgamate analysis
| |
together with another group 쑗 The amalga- examination and report 쑗 a job analysis 쑗
mated group includes six companies. market analysis 쑗 Her job is to produce a
American Accounting Association
American Accounting Association
regular sales analysis. (NOTE: The plural is
/əmerikən əkaυntiŋ əsəυsieiʃ(ə)n/
| | |
analyses.)
noun a US voluntary organisation for those analyst /nəlist/ noun a person who
analyst
with an interest in accounting research and analyses 쑗 a market analyst 쑗 a systems

best practice, which aims to promote excel- analyst
2
lence in the creation, dissemination and analytical review /nəlitik(ə)l rivju/
analytical review
76
|
application of accounting knowledge and noun an examination of accounts from dif-

skills. Abbreviation AAA ferent periods for the purpose of identifying
83
American Depositary Receipt /ə
American Depositary Receipt
| ratios, trends and changes in balances

merikən dipɒzitri risit/ noun a docu-
23
angel /eind əl/ noun an investor in a com-
angel
| |
ment issued by an American bank to US cit- pany in its early stages, often looking for
izens, making them unregistered sharehold-
-
returns over a longer period of time than a
01
ers of companies in foreign countries. The venture capitalist
document allows them to receive dividends
annual /njuəl/ adjective for one year 쑗
annual
03
from their investments, and ADRs can them-
selves be bought or sold. Abbreviation ADR an annual statement of income 쑗 They have
six weeks’ annual leave. 쑗 The company has
American Institute of Certified Pub-
#
American Institute of Certified Public Accountants
an annual growth of 5%. 쑗 We get an annual

lic Accountants /əmerikən institjut
us
|
bonus.
əv stifaid pblik əkaυntənts/ noun |
the national association for certified public ‘…real wages have risen at an annual rate
in
accountants in the United States. Abbrevia- of only 1% in the last two years’ [Sunday
Times]
Jo
tion AICPA
‘…the remuneration package will include
amortisable /mɔtaizəb(ə)l/ adjective
amortisable
up
|
an attractive salary, profit sharing and a
being possible to amortise 쑗 The capital company car together with four weeks’
cost is amortisable over a period of ten
ro
annual holiday’ [Times]

years.
annual accounts /njuəl əkaυnts/
annual accounts
G
amortisation /əmɔtaizeiʃ(ə)n/ noun

amortisation
| |
plural noun the accounts prepared at the end
an act of amortising 쑗 amortisation of a debt
p
of a financial year 쑗 The annual accounts

amortisation period /əmɔtai
amortisation period
ap
| | have been sent to the shareholders.

zeiʃ(ə)n piəriəd/ noun the length of a annual depreciation /njuəl dipriʃi
annual depreciation
ts
| |
lease, used when depreciating the value of eiʃ(ə)n/ noun a reduction in the book value
the asset leased
ha
of an asset at a particular rate per year. 쒁

amortise /əmɔtaiz/, amortize verb 1. to
amortise
|
straight line depreciation
W
repay a loan by regular payments, most of annual depreciation

annual depreciation provision
provision
which pay off the interest on the loan at first, /njuəl dipriʃieiʃ(ə)n prəvi (ə)n/
si
| | |
and then reduce the principal as the repay- noun an assessment of the cost of an asset’s
ment period progresses 쑗 The capital cost is
ba
depreciation in a given accounting period

amortised over five years. 2. to depreciate or
annual exemptions /njuəl i
annual exemptions
Ab
to write down the capital value of an asset |
over a period of time in a company’s zempʃ(ə)nz/ plural noun the amount of

accounts income which is exempt from tax. For exam-
Q
ple, the first £8,500 in capital gains in any

amount paid up /əmaυnt peid p/
amount paid up
|
one year is exempt from tax.
A.
noun an amount paid for a new issue of

Annual General Meeting /njuəl
Annual General Meeting
shares, either the total payment or the first

instalment, if the shares are offered with d en(ə)rəl mitiŋ/ noun an annual meet-
instalment payments ing of all shareholders of a company, when
the company’s financial situation is pre-
amount realised /əmaυnt riəlaizd/
amount realised
|
sented by and discussed with the directors,
noun money received from the sale or when the accounts for the past year are
exchange of property approved and when dividends are declared
AMT abbreviation alternative minimum tax
AMT
and audited. Abbreviation AGM (NOTE: The

analyse /nəlaiz/, analyze verb to exam-
analyse
US term is annual meeting or annual

ine someone or something in detail 쑗 to stockholders’ meeting.)

annual income 12
annual income /njuəl inkm/ noun anti-dumping duty /nti dmpiŋ
annual income anti-dumping duty
money received during a calendar year djuti/ noun same as countervailing duty
annualised /njuəlaizd/, annualized anti-inflationary
annualised
/nti in
anti-inflationary
adjective shown on an annual basis fleiʃ(ə)n(ə)ri/ adjective restricting or try-

‘…he believes this may have caused the ing to restrict inflation 쑗 anti-inflationary
economy to grow at an annualized rate of measures
almost 5 per cent in the final quarter of last anti-trust /nti trst/ adjective attack-
anti-trust
year’ [Investors Chronicle] ing monopolies and encouraging competi-

annualised percentage rate tion 쑗 anti-trust measures
annualised percentage rate
/njuəlaizd pəsentid reit/ noun a |

anti-trust laws /nti trst lɔz/, anti-
anti-trust laws
yearly percentage rate, calculated by multi-
2
trust legislation /nti trst led i |
76
plying the monthly rate by twelve. Abbrevi- sleiʃ(ə)n/ plural noun laws in the United
ation APR (NOTE: The annualised percent- States which prevent the formation of
83
age rate is not as accurate as the Annual monopolies
Percentage Rate (APR), which includes APB abbreviation 1. Accounting Principles
APB
23
fees and other charges.) Board 2. Auditing Practices Board
annually /njuəli/ adverb each year 쑗
annually
-
Appeals Commissioner noun a person
Appeals Commissioner
The figures are updated annually.
01
appointed officially to supervise the collec-
annual management charge /njuəl
annual management charge
tion of taxes, including income tax, capital
03
mnid mənt tʃɑd / noun a charge made gains tax and corporation tax, but not VAT
by the financial institution which is manag-
application /plikeiʃ(ə)n/ noun 1. the
application
#
ing an account |
act of asking for something, usually in writ-

annual meeting /njuəl mitiŋ/ noun
annual meeting
us
ing, or a document in which someone asks
US same as Annual General Meeting for something, e.g. a job 쑗 shares payable
Annual Percentage Rate /njuəl pə
Annual Percentage Rate
on application 쑗 She sent off six applica-

in
sentid reit/ noun a rate of interest (such tions for job or six job applications. 2. effort
Jo
as on a hire-purchase agreement) shown on or diligence 쑗 She has shown great applica-

an annual compound basis, and including tion in her work on the project.
up
fees and charges. Abbreviation APR application of funds /plikeiʃ(ə)n əv

application of funds
annual report /njuəl ripɔt/ noun a

annual report
fndz/ noun details of the way in which

ro
report of a company’s financial situation at funds have been spent during an accounting
the end of a year, sent to all the shareholders
G
period
annual return /njuəl ritn/ noun an
annual return
apportion /əpɔʃ(ə)n/ verb to share out

apportion
p
|
|
official report which a registered company something, e.g. costs, funds or blame 쑗
ap
has to make each year to the Registrar of Costs are apportioned according to pro-
Companies
ts
jected revenue.
annuitant /ənjuitənt/ noun a person
annuitant
apportionment /əpɔʃ(ə)nmənt/ noun

| apportionment
ha
who receives an annuity the sharing out of costs

annuity /ənjuiti/ noun money paid each
annuity
W
appraisal /əpreiz(ə)l/ noun a calculation

| appraisal
year to a retired person, usually in return for

|
of the value of someone or something

a lump-sum payment. The value of the annu-
si
appraise /əpreiz/ verb to assess or to cal-

appraise
ity depends on how long the person lives, as |

ba
it usually cannot be passed on to another culate the value of something or someone

appreciate /əpriʃieit/ verb (of currency,
appreciate
person. Annuities are fixed payments, and

Ab
lose their value with inflation, whereas a shares, etc.) to increase in value
pension can be index-linked. 쑗 to buy or to appreciation /əpriʃieiʃ(ə)n/ noun 1.
appreciation
| |
Q
take out an annuity 쑗 She has a government an increase in value. Also called capital
annuity or an annuity from the government. appreciation 2. the act of valuing some-
A.
annuity certain /ənjuiti stən/ noun

annuity certain
| thing highly 쑗 She was given a pay rise in

an annuity that provides payments for a spe- appreciation of her excellent work.
cific number of years, regardless of life or appropriate verb /əprəυprieit/ to put a
appropriate
death of the annuitant sum of money aside for a special purpose 쑗

annuity contract /ənjuiti kɒntrkt/ to appropriate a sum of money for a capital
annuity contract
noun a contract under which a person is paid project

a fixed sum regularly for life appropriation /əprəυprieiʃ(ə)n/ noun
appropriation
| |
antedate /ntideit/ verb to put an ear-

antedate
| the act of putting money aside for a special

lier date on a document 쑗 The invoice was purpose 쑗 appropriation of funds to the
antedated to January 1st. reserve

13 articles of incorporation
appropriation account /əprəυpri arbitrage syndicate /ɑbitrɑ
appropriation account arbitrage syndicate
| |
eiʃ(ə)n əkaυnt/ noun the part of a profit

| sindikət/ noun a group of people who
and loss account which shows how the profit together raise the capital to invest in arbi-
has been dealt with, e.g., how much has been trage deals
given to the shareholders as dividends and arbitration /ɑbitreiʃ(ə)n/ noun the set-
arbitration
how much is being put into the reserves tling of a dispute by an outside party agreed
approval /əpruv(ə)l/ noun the act of say- on by both sides 쑗 to take a dispute to arbi-
approval
ing or thinking that something is good 쑗 to tration or to go to arbitration 쑗 arbitration

submit a budget for approval in an industrial dispute 쑗 The two sides
approve /əpruv/ verb 1. 왍 to approve of decided to submit the dispute to arbitration
approve
something to think something is good 쑗 or to refer the question to arbitration.
2
76
The chairman approves of the new company arbitrator /ɑbitreitə/ noun a person not
arbitrator
letter heading. 쑗 The sales staff do not concerned with a dispute who is chosen by
83
approve of interference from the accounts both sides to try to settle it 쑗 an industrial
division. 2. to agree to something officially arbitrator 쑗 They refused to accept or they
23
쑗 to approve the terms of a contract 쑗 The rejected the arbitrator’s ruling.
proposal was approved by the board. ARD abbreviation accounting reference
ARD
-
approved accounts /əpruvd ə
approved accounts
01
| |
date
kaυnts/ plural noun accounts that have area manager /eəriə mnid ə/ noun a
area manager
03
been formally accepted by a company’s manager who is responsible for a company’s
board of directors work in a specific part of the country
approved scheme /əpruvd skim/
#
approved scheme
arithmetic mean /riθmetik min/

arithmetic mean
|
noun a pension scheme or share purchase

us
noun a simple average calculated by divid-
scheme which has been approved by the ing the sum of two or more items by the
Inland Revenue number of items
in
approved securities /əpruvd si

approved securities
ARM abbreviation adjustable rate mortgage

| | ARM
Jo
kjυəritiz/ plural noun state bonds which

around /əraυnd/ preposition 1. approxi-
around
can be held by banks to form part of their |
mately 쑗 The office costs around £2,000 a

up
reserves (NOTE: The list of these bonds is

the ‘approved list’.) year to heat. 쑗 Her salary is around
$85,000. 2. with a premium or discount
ro
approximate /əprɒksimət/ adjective not

approximate
ARPS abbreviation adjustable rate pre-

ARPS
exact, but almost correct 쑗 The sales divi-

G
sion has made an approximate forecast of ferred stock

p
ARR abbreviation accounting rate of return

ARR
expenditure.
ap
arrangement fee /əreind mənt fi/

arrangement fee
approximately /əprɒksimətli/ adverb

approximately
| |
not quite exactly, but close to the figure noun a charge made by a bank to a client for
ts
shown 쑗 Expenditure on marketing is arranging credit facilities

ha
approximately 10% down on the previous arrears /əriəz/ plural noun money which
arrears
quarter. is owed, but which has not been paid at the

W
approximation /əprɒksimeiʃ(ə)n/ right time 쑗 a salary with arrears effective

approximation
| |
noun a rough calculation 쑗 Each depart- from January 1st 쑗 We are pressing the com-
si
ment has been asked to provide an approxi- pany to pay arrears of interest. 쑗 You must
ba
mation of expenditure for next year. 쑗 The not allow the mortgage payments to fall into
final figure is only an approximation. arrears.
Ab
APR abbreviation annualised percentage article /ɑtik(ə)l/ noun a section of a legal

APR article
rate agreement such as a contract or treaty 쑗 See

Q
APRA abbreviation Australian Prudential

APRA
article 8 of the contract.
Regulation Authority articles of association /ɑtik(ə)lz əv
articles of association
A.
AR abbreviation accounts receivable

AR
əsəυsieiʃ(ə)n/ plural noun a document

| |
arbitrage /ɑbitrɑ / noun the business

arbitrage
|
which lays down the rules for a company
of making a profit from the difference in regarding such matters as the issue of shares,
value of various assets, e.g. by selling for- the conduct of meetings and the appoint-
eign currencies or commodities on one mar- ment of directors 쑗 This procedure is not
ket and buying on another at almost the allowed under the articles of association of
same time to profit from different exchange the company. (NOTE: The US term is
rates, or by buying currencies forward and bylaws)
articles of incorporation /ɑtik(ə)lz
articles of incorporation
selling them forward at a later date, to bene-

fit from a difference in prices əv inkɔpəreiʃ(ə)n/ plural noun US same
| |

articles of partnership 14
as memorandum and articles of associa- asset stripper /set stripə/ noun a per-
asset stripper
tion son who buys a company to sell its assets

articles of partnership /ɑtik(ə)lz əv
articles of partnership
asset stripping /set stripiŋ/ noun the
asset stripping
pɑtnəʃip/ plural noun same as partner- practice of buying a company at a lower

ship agreement price than its asset value, and then selling its
ASB abbreviation Accounting Standards
ASB
assets
asset turnover /set tnəυvə/ noun a
asset turnover
Board
measure of a company’s efficiency that is
ASC abbreviation Accounting Standards
ASC
the ratio of sales revenue to total assets

Committee
asset turnover ratio /set tnəυvə
asset turnover ratio
A shares /ei ʃeəz/ plural noun ordinary

A shares
reiʃiəυ/ noun the number of times assets

shares with limited voting rights or no vot- are turned over by sales during the year, cal-
ing rights at all culated as turnover divided by total assets
asked price /ɑskt prais/ noun a price at
asked price
less current liabilities

which a commodity or stock is offered for asset value /set vlju/ noun the
asset value
sale by a seller, also called ‘offer price’ in value of a company calculated by adding
the UK together all its assets
asking price /ɑskiŋ prais/ noun a price
asking price
assign /əsain/ verb 1. to give something

assign
which the seller is hoping will be paid for to someone by means of an official legal
the item being sold 쑗 the asking price is transfer 쑗 to assign a right to someone 쑗 to
$24,000 assign shares to someone 2. to give someone
as per /z p/ 쏡 per
as per
a job of work to do and make him or her
assess /əses/ verb to calculate the value
assess
|
responsible for doing it 쑗 She was assigned
of something or someone 쑗 to assess dam- the task of checking the sales figures.
ages at £1,000 쑗 to assess a property for the assignation /sineiʃ(ə)n/ noun a
assignation
purposes of insurance legal transfer 쑗 the assignation of shares to

assessed value /əsest vlju/ noun a
assessed value
|
someone 쑗 the assignation of a patent
value that is the result of calculation by assignee /saini/ noun a person who
assignee
someone such as an auditor or investment receives something which has been assigned
advisor to him or her
assignment /əsainmənt/ noun the legal
assignment
assessment /əsesmənt/ noun a calcula-

assessment |
transfer of a property or right 쑗 the assign-

|
tion of value 쑗 a property assessment 쑗 a

tax assessment ment of a patent or of a copyright 쑗 to sign
a deed of assignment
asset /set/ noun 1. something which
asset
assignor /sainɔ/ noun a person who

assignor
belongs to a company or person, and which assigns something to someone

has a value 쑗 He has an excess of assets over
associate /əsəυsiət/ noun 1. a person or
associate
liabilities. 쑗 Her assets are only $640 as |
against liabilities of $24,000. 2. 왍 valuation company linked to another in a takeover bid

2. a title given to a junior member of a pro-
of a company on an assets basis calculat-
fessional organisation. Senior members are
ing the value of a company on the basis of
usually called ‘fellows’.
the value of its assets (as opposed to a valu-
ation on an earnings or dividend yield basis) associate
associate company
company /əsəυsiət |
kmp(ə)ni/ noun a company which is

asset-backed securities /set bkt
asset-backed securities
partly owned by another company

sikjυəritiz/ plural noun bonds secured
associated company /əsəυsieitid
| associated company
against specific assets

|
kmp(ə)ni/ noun a company which is

asset backing /set bkiŋ/ noun a
asset backing
partly owned by another company (though

support for a share price provided by the less than 50%), which exerts some manage-
value of the company’s assets ment control over it or has a close trading
asset-rich company /set ritʃ relationship with it 쑗 Smith Ltd and its asso-
asset-rich company
kmp(ə)ni/ noun company with valuable ciated company, Jones Brothers

tangible assets, such as property, which pro- associate director /əsəυsiət dai
associate director
| |
vide firm backing for its shares rektə/ noun a director who attends board
assets /sets/ plural noun all items of
assets
meetings, but has not been elected by the
property that contribute to the value of an shareholders
organisation, including tangible items such Association of Accounting Techni-
Association of Accounting Technicians
as cash, stock and real estate, as well as cians /əsəυsieiʃ(ə)n əv əkaυntiŋ | |
intangible items such as goodwill tekniʃ(ə)nz/ noun an organisation which

15 auction
represents accounting technicians and for other types of policy (i.e. those against
grants membership to people who have something which may or may not happen,
passed its examinations. Abbreviation AAT such as an accident) use the terms insure,
Association of Authorised Public
Association of Authorised Public Accountants
insurer and insurance. In the US insure,
Accountants /əsəυsieiʃ(ə)n əv |
insurer and insurance are used for both.)
ɔθəraizd pblik əkaυntənts/ noun an assurer /əʃυərə/, assuror noun an
assurer
| |
organisation which represents accountants insurer or a company which insures

who have been authorised by the govern- AST abbreviation Automated Screen Trad-
AST
ment to work as auditors. It is a subsidiary of ing

the Association of Chartered Certified at call /t kɔl/ adverb immediately
at call
Accountants. Abbreviation AAPA available

Association of Chartered Account-
Association of Chartered Accountants in the United States
ATM abbreviation automated teller machine

ATM
ants in the United States /ə |

‘Swiss banks are issuing new cards which
səυsieiʃ(ə)n əv tʃɑtəd əkaυntənts in |
will allow cash withdrawals from ATMs
ði junaitid steits/ noun an organisation
|
in Belgium, Denmark, Spain, France, the
representing Chartered Accountants from Netherlands, Portugal and Germany’
Australia, Canada, England and Wales, Ire- [Banking Technology]
land, New Zealand, Scotland and South ‘…the major supermarket operator is plan-
Africa who are based in the United States. ning a new type of bank that would earn
Abbreviation ACAUS 90% of its revenue from fees on automated
Association of Chartered Certified teller machine transactions. With the bank
Association of Chartered Certified Accountants
Accountants /əsəυsieiʃ(ə)n əv | setting up ATMs at 7,000 group outlets

tʃɑtəd stifaid əkaυntənts/ noun an |
nationwide, it would have a branch net-
organisation whose members are certified work at least 20 times larger than any of
accountants. Abbreviation ACCA the major banks’ [Nikkei Weekly]
at par /t pɑ/ phrase equal to the face
at par
Association of Corporate Treasur-

Association of Corporate Treasurers
ers /əsəυsieiʃ(ə)n əv kɔp(ə)rət

|
value
at sight /t sait/ adverb immediately,
at sight
tre ərəz/ noun an organisation which

groups company treasurers and awards when it is presented 쑗 a bill of exchange
membership to those who have passed its payable at sight
examinations attachment /əttʃmənt/ noun the act of
attachment
Association of Financial Advisers /ə

Association of Financial Advisers
|
holding a debtor’s property to prevent it
səυsieiʃ(ə)n əv fainnʃ(ə)l ədvaizəz/ | |
being sold until debts are paid
noun a trade association that represents the attachment of earnings /əttʃmənt
attachment of earnings
interests of independent financial advisers əv niŋz/ noun a process in which a court

Association of Futures Brokers and
Association of Futures Brokers and Dealers
uses its legal authority to obtain directly
Dealers /əsəυsieiʃ(ə)n əv fjutʃəz |
from a person’s salary money that the person
brəυkəz ən diləz/ noun a self-regulating owes to the court
attachment of earnings order /ə
attachment of earnings order
organisation which oversees the activities of |
dealers in futures and options. Abbreviation ttʃmənt əv niŋz ɔdə/ noun a court
AFBD order to make an employer pay part of an
assumable mortgage /əsjuməb(ə)l
assumable mortgage
|
employee’s salary to the court to pay off
mɔid / noun US a mortgage which can debts
attachment order /əttʃmənt ɔdə/
attachment order
be passed to another person |
assurance /əʃυərəns/ noun a type of

assurance
|
noun an order from a court to hold a debtor’s
insurance which pays compensation for an property to prevent it being sold until debts
event that is certain to happen at some time, are paid
attest /ətest/ noun a formal statement,
attest
especially for the death of the insured per- |
son. Also called life assurance, life insur- e.g. a statement by an auditor that a com-
ance pany’s financial position is correctly stated
assure /əʃυə/ verb to insure someone, or
assure
|
in the company’s accounts
attributable profit /ətribjυtəb(ə)l
attributable profit
someone’s life, so that the insurance com- |
pany will pay compensation when that per- prɒfit/ noun a profit which can be shown to
son dies 쑗 He has paid the premiums to have come from a particular area of the com-
his wife’s life assured. (NOTE: Assure, pany’s operations
auction /ɔkʃən/ noun 1. a method of sell-
auction
assurer and assurance are used in Britain

for insurance policies relating to something ing goods where people who want to buy
which will certainly happen (such as death); compete with each other by saying how

auctioneer 16
much they will offer for something, and the auditing standards /ɔditiŋ
auditing standards
item is sold to the person who makes the stndədz/ plural noun guidelines, estab-
highest offer 쑗 Their furniture will be sold lished by an authoritative body, that auditors
in the auction rooms next week. 쑗 They should follow when examining financial
announced a sale by auction of the fire-dam- statements and other information
aged stock. 쑗 The equipment was sold by audit opinion /ɔdit əpinjən/ noun US
audit opinion
auction or at auction. 왍 to put an item up

|
a report of the audit of a company’s books,

for auction to offer an item for sale at an carried out by a certified public accountant
auction 2. a method of selling government (NOTE: The UK term is accountant’s opin-
stock, where all stock on issue will be sold, ion.)
and the highest price offered will be auditor /ɔditə/ noun a person who audits
auditor
accepted, as opposed to tendering 쐽 verb to auditors’ fees /ɔditəz fiz/ plural noun
auditors’ fees
sell something at an auction 쑗 The factory fees paid to a company’s auditors, which are
was closed and the machinery was auc- approved by the shareholders at an AGM
tioned off.
auditors’ qualification /ɔditəz
auditors’ qualification
auctioneer
auctioneer /ɔkʃəniə/ noun the person

|
kwɒlifikeiʃ(ə)n/ noun a form of words in
|
who conducts an auction a report from the auditors of a company’s

audit
audit /ɔdit/ noun the examination of the accounts, stating that in their opinion the
books and accounts of a company 쑗 to carry accounts are not a true reflection of the com-
out the annual audit 쐽 verb to examine the pany’s financial position. Also called quali-
books and accounts of a company 쑗 Messrs fication of accounts
Smith have been asked to audit the accounts. auditors’ report /ɔditəz ripɔt/ noun
auditors’ report
쑗 The books have not yet been audited. 왍 to a report written by a company’s auditors
audit the stock to carry out a stock control, after they have examined the accounts of the
in front of witnesses, so as to establish the company. Also called audit report (NOTE: If
exact quantities and value of stock the auditors are satisfied, the report certi-
Audit Commission
Audit Commission /ɔdit kəmiʃ(ə)n/ |

fies that, in their opinion, the accounts give
noun British government agency whose a ‘true and fair’ view of the company’s finan-
duty is to audit the accounts of ministries cial position.)
audit programme /ɔdit prəυrm/
audit programme
and other government departments (NOTE:

The US term is General Accounting noun a listing of all the steps to be taken
Office.) when auditing a company’s accounts
audit regulation /ɔdit rejυleiʃ(ə)n/
audit regulation
audit committee
audit committee /ɔdit kəmiti/ noun a |
committee of a company’s board of directors noun the regulating of auditors by govern-

that monitors finances, on which company ment
audit report /ɔdit ripɔt/ noun same as
audit report
executives cannot sit |
audit cycle
audit cycle /ɔdit saik(ə)l/ noun the auditors’ report

audit risk /ɔdit risk/ noun the risk that
audit risk
interval between audits

audited accounts auditors may give an inappropriate audit
audited accounts /ɔditid əkaυnts/ |
opinion on financial statements
plural noun a set of accounts that have been
audit trail /ɔdit treil/ noun the records
audit trail
thoroughly scrutinised, checked and

approved by a team of auditors that show all the stages of a transaction, e.g.
audit fee
a purchase, a sale or a customer complaint,
audit fee /ɔdit fi/ noun a fee charged by in the order in which they happened (NOTE:
an auditor for auditing a company’s An audit trail can be a useful tool for prob-
accounts lem-solving and, in financial markets, may
auditing
auditing /ɔditiŋ/ noun the work of be used to ensure that the dealers have
examining the books and accounts of a com- been fair and accurate in their proceed-
pany ings.)
Auditing Practices Board
Auditing Practices Board /ɔditiŋ ‘…provides real-time fax monitoring and

prktisiz bɔd/ noun a body responsible audit trail to safeguard information pri-
for developing and issuing professional vacy and accuracy’ [Forbes]
augend /ɔend/ noun the number to
augend
auditing standards in the United Kingdom

and the Republic of Ireland. The APB was which another number (the addend) is added
created in 1991 following an agreement to produce the sum
between the six members of the Consulta- Australian Accounting Research
Australian Accounting Research Foundation
tive Committee of Accountancy Bodies. Foundation /ɒstreiliən əkaυntiŋ ri | | |
Abbreviation APB stʃ faυndeiʃ(ə)n/ noun the authority

|

17 award
that has regulated auditing and assurance availability /əveiləbiliti/ noun the fact
availability
| |
matters in Australia since 2004 of being easy to obtain

Australian Prudential Regulation Authority
Australian Prudential Regulation AVCs abbreviation additional voluntary

AVCs
Authority /ɒstreiliən prυdenʃ(ə)l | |

contributions
rejυleiʃ(ə)n ɔθɒrəti/ noun a federal
| | average /v(ə)rid / noun 1. a number
average
government body responsible for ensuring calculated by adding several figures together
that financial institutions are able to meet and dividing by the number of figures added
their commitments. Abbreviation APRA 쑗 the average for the last three months or
AUT
AUT abbreviation authorised unit trust the last three months’ average 쑗 sales aver-
authorise
age or average of sales 2. the sharing of the
authorise /ɔθəraiz/, authorize verb 1. cost of damage or loss of a ship between the
to give permission for something to be done insurers and the owners 쐽 adjective equal to
쑗 to authorise payment of £10,000 2. to give the average of a set of figures 쑗 the average
someone the authority to do something 쑗 to increase in salaries 쑗 The average cost per
authorise someone to act on the company’s unit is too high. 쑗 The average sales per rep-
behalf resentative are rising. 쐽 verb to work out an
authorised capital
authorised capital /ɔθəraizd average figure for something

kpit(ə)l/ noun the amount of capital ‘…a share with an average rating might
which a company is allowed to have, as yield 5 per cent and have a PER of about
stated in the memorandum of association 10’ [Investors Chronicle]
(NOTE: The US equivalent is authorized ‘…the average price per kilogram for this
stock.) season to the end of April has been 300
authorised share capital
authorised share capital /ɔθəraizd cents’ [Australian Financial Review]

ʃeə kpit(ə)l/ noun the amount of capital average out /v(ə)rid aυt/ phrasal verb
that a company is authorised to issue in the to come to a figure as an average 쑗 It aver-
form of shares ages out at 10% per annum. 쑗 Sales in-
authorised unit trust creases have averaged out at 15%.
authorised unit trust /ɔθəraizd
junit trst/ noun the official name for a average cost of capital /vərid kɒst
average cost of capital
unit trust which has to be managed accord- əv kpit(ə)l/ noun an average figure for
ing to EU directives. Abbreviation AUT the cost of borrowing or the capital raised by
Automated Clearing House
selling shares
Automated Clearing House average due date /v(ə)rid dju
average due date
/ɔtəmeitid kliəriŋ haυs/ noun US an deit/ noun the average date when several
organisation set up by the federal authorities different payments fall due
to settle transactions carried out by compu- average income
average income per capita
per capita
ter, such as automatic mortgage payments /v(ə)rid inkm pə kpitə/ noun same
and trade payments between businesses. as per capita income
Abbreviation ACH
Automated Screen Trading
avoidance /əvɔid(ə)ns/ noun the act of
avoidance
Automated Screen Trading trying not to do something or not to pay

/ɔtəmeitid skrin treidiŋ/ noun a sys- something 쑗 tax avoidance
tem where securities are bought, sold and award /əwɔd/ noun something given by a
award
matched automatically by computer. Abbre- court, tribunal or other official body, espe-
viation AST cially when settling a dispute or claim 쑗 an
award by an industrial tribunal 쑗 The arbi-
automated teller machine
automated teller machine

/ɔtəmeitid telə məʃin/ noun US same | trator’s award was set aside on appeal. 쑗
as cash dispenser The latest pay award has been announced.

B
BAA abbreviation British Accounting
BAA
back interest /bk intrəst/ noun inter-

back interest
Association est which has not yet been paid

backlog /bklɒ/ noun an amount of
backlog
baby bonds /beibi bɒndz/ plural noun

baby bonds
US bonds in small denominations which the work, or of items such as orders or letters,
small investor can afford to buy which should have been dealt with earlier
back /bk/ adjective referring to the past 쑗
back
but is still waiting to be done 쑗 The ware-
a back payment 쐽 verb to help someone, house is trying to cope with a backlog of
especially financially 쑗 The bank is backing orders. 쑗 We’re finding it hard to cope with
us to the tune of $10,000. 쑗 She is looking the backlog of paperwork.
backlog depreciation /bklɒ di
backlog depreciation
for someone to back her project. |
‘…the businesses we back range from priʃieiʃ(ə)n/ noun depreciation which has
start-up ventures to established companies not been provided in previous accounts
in need of further capital for expansion’ because of an increase in the value of the
[Times] asset during the current year due to inflation
back payment /bk peimənt/ noun 1.
back payment
back out /bk aυt/ phrasal verb to stop

being part of a deal or an agreement 쑗 The a payment which is due but has not yet been
bank backed out of the contract. 쑗 We had paid 2. the act of paying money which is
to cancel the project when our German part- owed
back rent /bk rent/ noun a rent due but
back rent
ners backed out.

not paid 쑗 The company owes £100,000 in
backdate /bkdeit/ verb to put an earlier
backdate
back rent.
|
date on a document such as a cheque or an

back tax /bk tks/ noun tax which is
back tax
invoice 쑗 Backdate your invoice to April 1st.

owed
back duty /bk djuti/ noun a duty or
back duty
back-to-back loan /bk tə bk ləυn/

back-to-back loan
tax which is due but has not yet been paid

noun a loan from one company to another in
back-end loaded /bk end ləυdid/
back-end loaded
one currency arranged against a loan from

adjective referring to an insurance or invest- the second company to the first in another
ment scheme where commission is charged currency. Also called parallel loan (NOTE:
when the investor withdraws his or her Back-to-back loans are used by interna-
money from the scheme. Compare front- tional companies to get round exchange
end loaded controls.)
backer /bkə/ noun a person or company
backer
backup withholding /bkp wiθ

backup withholding
that backs someone 쑗 One of the company’s həυldiŋ/ noun US a tax retained from
backers has withdrawn. investment income so that the IRS is sure of
backflush costing /bkflʃ kɒstiŋ/
backflush costing
getting the tax due

noun a method of costing that links cost to backwardation /bkwədeiʃ(ə)n/ noun
backwardation
output produced 1. a penalty paid by the seller when postpon-

backing /bkiŋ/ noun support, especially
backing
ing delivery of shares to the buyer 2. a situ-
financial support 쑗 She has the backing of ation in which the cash price is higher than
an Australian bank. 쑗 The company will the forward price. Opposite forwardation
succeed only if it has sufficient backing. 쑗 backward integration /bkwəd inti
backward integration
She gave her backing to the proposal. reiʃ(ə)n/ noun a process of expansion in
‘…the company has received the backing which a business which deals with the later
of a number of oil companies who are will- stages in the production and sale of a prod-
ing to pay for the results of the survey’ uct acquires a business that deals with an
[Lloyd’s List] earlier stage in the same process, usually a

19 balance
supplier 쑗 Buying up rubber plantations is period used as the opening balance of the
part of the tyre company’s backward inte- current period 왍 balance carried down or
gration policy. Also called vertical integra- forward the closing balance of the current
tion period 2. the rest of an amount owed 쑗 You
backwards spreading /bkwədz
backwards spreading
can pay £100 deposit and the balance within
sprediŋ/ noun the practice of dividing 60 days. 쐽 verb 1. to be equal, i.e. the assets
income earned in a particular accounting owned must always equal the total liabilities
year into portions which are allocated to sev- plus capital 2. to calculate the amount
eral previous accounting periods needed to make the two sides of an account
BACS /bks/ noun a company set up to
BACS
equal 쑗 I have finished balancing the
organise the payment of direct debits, stand- accounts for March. 3. to plan a budget so
ing orders, salary cheques and other pay- that expenditure and income are equal 쑗 The
ments generated by computers. It operates president is planning for a balanced budget.
for all the British clearing banks and several balance off /bləns ɒf/ verb to add up
building societies; it forms part of APACS. and enter the totals for both sides of an ac-
Compare CHAPS count at the end of an accounting period in
bad cheque /bd tʃek/ noun a cheque
bad cheque
order to determine the balance
which is returned to the drawer for any rea- balanced budget
balanced budget /blənst bd it/

son noun a budget where expenditure and
bad debt /bd det/ noun a debt which
bad debt
income are equal

will not be paid, usually because the debtor balanced scorecard
balanced scorecard /blənst

has gone out of business, and which has to skɔkɑd/ noun a system of measurement
be written off in the accounts 쑗 The com- and assessment that uses a variety of indica-
pany has written off $30,000 in bad debts. tors, particularly customer relations, internal
bad debt expense /bd det ikspens/
bad debt expense
|
efficiency, financial performance and inno-
noun an estimate of uncollectible debts vation, to find out how well an organisation
which is charged to the profit and loss is doing in its attempts to achieve its main
account objectives
bad debt provision /bd det prə
bad debt provision
balance of payments
|
balance of payments /bləns əv
vi (ə)n/ noun money put aside in accounts peimənts/ noun a comparison between
to cover potential bad debts total receipts and payments arising from a
bad debts recovered /bd dets ri
bad debts recovered
|
country’s international trade in goods, serv-
kvəd/ plural noun money which was for- ices and financial transactions. Abbreviation
merly classified as bad debts and therefore BOP 왍 balance of payments capital
written off, but that has since been recovered account items in a country’s balance of pay-
either wholly or in part ments which refer to capital investments
badges of trade /bd iz əv treid/ plu- made in or by other countries 왍 balance of
badges of trade
ral noun a collection of principles estab- payments current account record of

lished by case law to determine whether or imports and exports of goods and services
not a person is trading. If so, he or she is and the flows of money between countries
taxed under different rules from non-traders. arising from investments 왍 long-term bal-
bail out /beil aυt/ phrasal verb to rescue a ance of payments record of movements of
company which is in financial difficulties capital relating to overseas investments and
‘…the government has decided to bail out the purchase of companies overseas
the bank which has suffered losses to the balance of payments deficit
balance of payments deficit /bləns

extent that its capital has been wiped out’
[South China Morning Post] əv peimənts defisit/ noun a situation in
which a country imports more than it
bailment /beilmənt/ noun a transfer of
bailment
exports
goods by someone (the ‘bailor’) to someone balance of payments surplus
(the ‘bailee’) who then holds them until they balance of payments surplus
have to be returned to the bailor (NOTE: /bləns əv peimənts spləs/ noun a sit-
Putting jewels in a bank’s safe deposit box uation in which a country exports more than
is an example of bailment.) it imports
balance
balance /bləns/ noun 1. the amount

balance
balance of retained earnings

which has to be put in one of the columns of /bləns əv riteind niŋz/ noun statis-
|
an account to make the total debits and cred- tics that show fluctuations in the level of
its equal 왍 balance brought down or for- income retained for reinvestment during an
ward the closing balance of the previous accounting period

balance sheet 20
balance sheet /bləns ʃit/ noun a (called a ‘balloon payment’) is larger than
balance sheet
statement of the financial position of a com- the others

pany at a particular time, such as the end of BALO noun a French government publica-
BALO
the financial year or the end of a quarter, tion that includes financial statements of
showing the company’s assets and liabilities public companies. Full form Bulletin des
쑗 Our accountant has prepared the balance Annonces Légales Obligatoires
sheet for the first half-year. 쑗 The company bank /bŋk/ noun a business which holds
bank
balance sheet for the last financial year money for its clients, lends money at inter-
shows a worse position than for the previous est, and trades generally in money 쑗 the
year. 쑗 The company balance sheet for 1984 First National Bank 쑗 the Royal Bank of
shows a substantial loss. Scotland 쑗 She put all her earnings into the
COMMENT: The balance sheet shows the bank. 쑗 I have had a letter from my bank
state of a company’s finances at a certain telling me my account is overdrawn. 쐽 verb
date. The profit and loss account shows the
movements which have taken place since to deposit money into a bank or to have an
the end of the previous accounting period. A account with a bank 쑗 He banked the cheque
balance sheet must balance, with the basic as soon as he received it. 쑗 I bank at or with
equation that assets (i.e. what the company Barclays.
owns, including money owed to the compa-
bankable /bŋkəb(ə)l/ adjective accept-
bankable
ny) must equal liabilities (i.e. what the com-

pany owes to its creditors) plus capital (i.e. able by a bank as security for a loan
what it owes to its shareholders). A balance bankable paper /bŋkəb(ə)l peipə/
bankable paper
sheet can be drawn up either in the horizon- noun a document which a bank will accept
tal form, with (in the UK) liabilities and capital
on the left-hand side of the page (in the USA, as security for a loan
bank account /bŋk əkaυnt/ noun an
bank account
it is the reverse) or in the vertical form, with |
assets at the top of the page, followed by li- account which a customer has with a bank,
abilities, and capital at the bottom. Most are where the customer can deposit and with-
usually drawn up in the vertical format, as
opposed to the more old-fashioned horizon- draw money 쑗 to open a bank account 쑗 to
tal style. close a bank account 쑗 How much money do
balance sheet asset value /bləns
balance sheet asset value
you have in your bank account? 쑗 If you let
ʃit set vlju/ noun the value of a com- the balance in your bank account fall below
pany calculated by adding together all its $1,000, you have to pay bank charges.
bank advance /bŋk ədvɑns/ noun
bank advance
assets |
balance sheet audit /bləns ʃit

balance sheet audit
same as bank loan 쑗 She asked for a bank
ɔdit/ noun a limited audit of the items on a advance to start her business.
bank balance /bŋk bləns/ noun the
bank balance
company’s balance sheet in order to confirm

that it complies with the relevant standards state of a bank account at any particular time
and requirements 쑗 Our bank balance went into the red last
month.
balance sheet date /bləns ʃit deit/
balance sheet date
bank base rate /bŋk beis reit/ noun

bank base rate
noun the date (usually the end of a financial

or accounting year) when a balance sheet is a basic rate of interest, on which the actual
drawn up rate a bank charges on loans to its customers
is calculated. Also called base rate
balance sheet equation /bləns ʃit i
balance sheet equation
bank bill /bŋk bil/ noun 1. a bill of

| bank bill
kwei (ə)n/ noun the basis upon which all

accounts are prepared, that assets = liabili- exchange by one bank telling another bank,
ties + assets usually in another country, to pay money to
someone 2. same as banker’s bill 3. US
balance sheet total /bləns ʃit
balance sheet total
same as banknote
təυt(ə)l/ noun in the United Kingdom, the bank book /bŋk bυk/ noun a book
bank book
total of assets shown at the bottom of a bal- given by a bank or building society which
ance sheet and used to classify a company shows money which you deposit or with-
according to size draw from your savings account or building
balancing item /blənsiŋ aitəm/, bal-
balancing item
society account. Also called passbook

ancing figure /blənsiŋ fiə/ noun an bank borrowings /bŋk bɒrəυiŋz/
bank borrowings
item introduced into a balance sheet to make plural noun money borrowed from banks
the two sides balance bank card /bŋk kɑd/ noun a credit
bank card
balloon /bəlun/ noun a loan where the

balloon
|
card or debit card issued to a customer by a
last repayment is larger than the others bank for use instead of cash when buying
balloon mortgage /bəlun mɔid /
balloon mortgage
| goods or services (NOTE: There are interna-

noun a mortgage in which the final payment tionally recognised rules that govern the

21 bank reconciliation
authorisation of the use of bank cards and
bank holiday
bank holiday /bŋk hɒlidei/ noun a

the clearing and settlement of transactions weekday which is a public holiday when the
in which they are used.) banks are closed 쑗 New Year’s Day is a bank
bank certificate /bŋk sətifikət/ noun
bank certificate
| holiday. 쑗 Are we paid for bank holidays in

a document, often requested during an audit, this job?
that is signed by a bank official and confirms bank identification number
bank identification number /bŋk

the balances due or from a company on a aidentifikeiʃ(ə)n nmbə/ noun an inter-
|
specific date nationally organised six-digit number which

bank charge /bŋk tʃɑd / noun same
bank charge
identifies a bank for charge card purposes.

as service charge Abbreviation BIN
bank confirmation /bŋk
bank confirmation
banking
banking /bŋkiŋ/ noun the business of

kɒnfəmeiʃ(ə)n/ noun verification of a banks 쑗 He is studying banking. 쑗 She has
company’s balances requested by an auditor gone into banking.
from a bank banking account
banking account /bŋkiŋ əkaυnt/ |
bank credit /bŋk kredit/ noun loans

bank credit
noun US an account which a customer has

or overdrafts from a bank to a customer with a bank
bank deposits /bŋk dipɒzits/ plural
bank deposits
banking covenants
|
banking covenants /bŋkiŋ
noun all money placed in banks by private or kvənənts/ plural noun a set of conditions
corporate customers imposed by a bank when it lends an institu-
bank draft /bŋk drɑft/ noun an order
bank draft
tion a large amount of money

by one bank telling another bank, usually in Banking Ombudsman
another country, to pay money to someone Banking Ombudsman /bŋkiŋ

ɒmbυdzmən/ noun an official whose duty
banker /bŋkə/ noun 1. a person who is
banker
is to investigate complaints by members of

in an important position in a bank 2. a bank the public against banks
쑗 the company’s banker is Barclays banking products
banker’s acceptance /bŋkəz ək

banker’s acceptance
|
banking products /bŋkiŋ prɒdkts/
septəns/ noun a bill of exchange guaran- plural noun goods and services produced by
teed by a bank banks for customers, e.g. statements, direct
debits
Bankers’ Automated Clearing Serv-
Bankers’ Automated Clearing Services
bank loan
ices /bŋkəz ɔtəmeitid kliəriŋ bank loan /bŋk ləυn/ noun a loan made
svisiz/ plural noun full form of BACS by a bank to a customer, usually against the
banker’s bill /bŋkəz bil/ noun an order
banker’s bill security of a property or asset 쑗 She asked
by one bank telling another bank, usually in for a bank loan to start her business. Also
another country, to pay money to someone. called bank advance
bank manager
Also called bank bill bank manager /bŋk mnid ə/ noun

banker’s credit card /bŋkəz kredit
banker’s credit card
the person in charge of a branch of a bank 쑗
kɑd/ noun a credit card issued by a bank, They asked their bank manager for a loan.
bank mandate
as opposed to cards issued by stores. Typical bank mandate /bŋk mndeit/ noun a
such cards are Visa, Egg or MasterCard. written order to a bank, asking it to open an
banker’s draft /bŋkəz drɑft/ noun a
banker’s draft
account and allow someone to sign cheques
draft payable by a bank in cash on presenta- on behalf of the account holder, and giving
tion. Abbreviation B/D specimen signatures and relevant informa-
banker’s lien /bŋkəz lin/ noun the
banker’s lien
tion
banknote
right of a bank to hold some property of a banknote /bŋk nəυt/ noun 1. a piece of
customer as security against payment of a printed paper money 쑗 a counterfeit £20
debt banknote (NOTE: The US term is bill.) 2. US
banker’s order /bŋkəz ɔdə/ noun an
banker’s order
a non-interest bearing note, issued by a Fed-
order written by a customer asking a bank to eral Reserve Bank, which can be used as
make a regular payment 쑗 He pays his sub- cash
Bank of England
scription by banker’s order. Bank of England /bŋk əv iŋlənd/

banker’s
banker’s reference
reference /bŋkəz noun the UK central bank, owned by the

ref(ə)rəns/ noun a written report issued by state, which, together with the Treasury, reg-
a bank regarding a particular customer’s ulates the nation’s finances
creditworthiness bank reconciliation
bank reconciliation /bŋk rekənsili |
bank giro /bŋk d airəυ/ noun a eiʃ(ə)n/ noun the act of making sure that
bank giro
method used by clearing banks to transfer the bank statements agree with the com-
money rapidly from one account to another pany’s ledgers

bank reserves 22
bank reserves /bŋk rizvz/ plural bartering /bɑtəriŋ/ noun the act of
bank reserves bartering
noun cash and securities held by a bank to exchanging goods for other goods and not
cover deposits for money
bank return /bŋk ritn/ noun a regu-
bank return
base /beis/ noun 1. the lowest or first posi-

base
|
lar report from a bank on its financial position 쑗 Turnover increased by 200%, but
tion started from a low base. 2. a place where a
bankrupt /bŋkrpt/ noun, adjective (a
bankrupt
company has its main office or factory, or a

person) who has been declared by a court place where a business person’s office is
not to be capable of paying his or her debts located 쑗 The company has its base in Lon-
and whose affairs are put into the hands of a don and branches in all the European coun-
receiver 쑗 a bankrupt property developer 쑗 tries. 쑗 She has an office in Madrid which
She was adjudicated or declared bankrupt. she uses as a base while travelling in South-
쑗 He went bankrupt after two years in busi- ern Europe. 쐽 verb 왍 to base something on
ness. 쐽 verb to make someone become something to calculate something using
bankrupt 쑗 The recession bankrupted my something as your starting point or basic
father. material for the calculation 쑗 We based our
bankruptcy /bŋkrptsi/ noun the state
bankruptcy
calculations on the forecast turnover. 왍
of being bankrupt 쑗 The recession has based on calculating from 쑗 based on last
caused thousands of bankruptcies. (NOTE: year’s figures 쑗 based on population fore-
The plural is bankruptcies.) casts
bankruptcy order /bŋkrptsi ɔdə/
bankruptcy order
‘…the base lending rate, or prime rate, is
noun same as declaration of bankruptcy the rate at which banks lend to their top
bankruptcy petition /bŋkrptsi pə
bankruptcy petition
|
corporate borrowers’ [Wall Street Jour-
tiʃ(ə)n/ noun an application to a court ask- nal]
ing for an order making someone bankrupt ‘…other investments include a large stake
bankruptcy
bankruptcy proceedings
proceedings in the Chicago-based insurance company’

/bŋkrptsi prəsidiŋz/ plural noun a
|
[Lloyd’s List]
base currency /beis krənsi/ noun a
base currency
court case to make someone bankrupt

bank statement /bŋk steitmənt/
bank statement
currency against which exchange rates of
noun a written statement from a bank show- other currencies are quoted
base period /beis piəriəd/ noun US 1.
base period
ing the balance of an account at a specific

date a period against which comparisons are
bank syndicate /bŋk sindikət/ noun
bank syndicate
made 2. the time that an employee must
a group of major international banks which work before becoming eligible for state
group together to underwrite a very large unemployment insurance benefits 쑗
loan Because she had not worked for the base
bank transfer /bŋk trnsf/ noun an
bank transfer
period, she had to rely on the support of her
act of moving money from a bank account to family when she lost her job. 쑗 The new gov-
another account ernment shortened the base period, in order
bargain /bɑin/ noun an agreement on
bargain to increase social service spending.
base rate /beis reit/ noun same as bank
base rate
the price of something 쑗 to strike a bargain

or to make a bargain 쐽 verb to try to reach base rate
base-weighted index /beis weitid
base-weighted index
agreement about something, especially a

price, usually with each person or group indeks/ noun an index which is weighted
involved putting forward suggestions or according to the base year
offers which are discussed until a compro- base year /beis jiə/ noun the first year of
base year
mise is arrived at 쑗 You will have to bargain an index, against which changes occurring
with the dealer if you want a discount. 쑗 in later years are measured
They spent two hours bargaining about or
basic /beisik/ adjective normal
basic
over the price. (NOTE: You bargain with

basic balance /beisik bləns/ noun
basic balance
someone over or about or for something.)

barter /bɑtə/ noun a system in which
barter
the balance of current account and long-
goods are exchanged for other goods and not term capital accounts in a country’s balance
sold for money of payments
basic commodities /beisik kə
basic commodities
‘…under the barter agreements, Nigeria |
will export 175,000 barrels a day of crude mɒditiz/ plural noun ordinary farm pro-
oil in exchange for trucks, food, planes and duce, produced in large quantities, e.g. corn,
chemicals’ [Wall Street Journal] rice or sugar

23 below-the-line
basic discount /beisik diskaυnt/ noun
basic discount
group of documents which are processed at

a normal discount without extra percentages the same time 쑗 Today’s batch of invoices is
쑗 Our basic discount is 20%, but we offer ready to be mailed. 쑗 The factory is working
5% extra for rapid settlement. on yesterday’s batch of orders. 쑗 The
basic earnings per share /beisik
basic earnings per share
accountant signed a batch of cheques. 쑗 We
niŋz pə ʃeə/ noun a figure that shows an deal with the orders in batches of fifty at a
investor how much of a company’s profit time. 쐽 verb to put items together in groups
belongs to each share 쑗 to batch invoices or cheques
batch costing /btʃ kɒstiŋ/ noun a
batch costing
basic pay /beisik pei/ noun a normal

basic pay
salary without extra payments. Also called method of calculating the price of one item
basic salary, basic wage as part of a batch of items made at the same
basic product /beisik prɒdkt/ noun
basic product
time
batch-level activities /btʃ lev(ə)l
batch-level activities
the main product made from a raw material

basic rate tax /beisik reit tks/ noun
basic rate tax
ktivitiz/ plural noun business activities
|
the lowest rate of income tax that vary as output varies

b/d abbreviation brought down
b/d
basic salary /beisik sləri/, basic

basic salary
wage noun same as basic pay B/D abbreviation banker’s draft

B/D
basis /beisis/ noun 1. a point or number

basis
bear /beə/ verb 1. to give interest 쑗 govern-

bear
from which calculations are made 쑗 We ment bonds which bear 5% interest 2. to
forecast the turnover on the basis of a 6% have something, especially to have some-
price increase. (NOTE: The plural is bases.) thing written on it 쑗 an envelope which
2. the general terms of agreement or general bears a London postmark 쑗 a letter bearing
principles on which something is decided or yesterday’s date 쑗 The cheque bears the sig-
done 쑗 This document should form the basis nature of the company secretary. 쑗 The
for an agreement. 쑗 We have three people share certificate bears his name. 3. to pay
working on a freelance basis. (NOTE: The costs 쑗 The costs of the exhibition will be
plural is bases.) 왍 on a short-term or long- borne by the company. 쑗 The company bore
term basis for a short or long period 쑗 He the legal costs of both parties. (NOTE: bear-
has been appointed on a short-term basis. ing – bore – has borne)
basis of accounting /beisis əv ə bearer /beərə/ noun a person who holds a
basis of accounting bearer
|
kaυntiŋ/ noun any of various methods of cheque or certificate

recognising income and expenditure in the bearer bond /beərə bɒnd/, bearer
bearer bond
preparation of accounts security /beərə sikυəriti/ noun a bond

|
basis of apportionment /beisis əv ə

basis of apportionment
| which is payable to the bearer and does not

pɔʃənmənt/ noun a way in which com- have a name written on it
mon overhead costs are shared among vari- beginning inventory
beginning inventory
/biiniŋ |
ous cost centres invənt(ə)ri/ noun US same as opening

basis of assessment /beisis əv ə
basis of assessment
|
stock
sesmənt/ noun a method of deciding in behavioural accounting /biheivjərəl
behavioural accounting
which year financial transactions should be əkaυntiŋ/ noun an approach to the study of
|
assessed for taxation accounting that emphasises the psychologi-

basis period /beisis piəriəd/ noun the
basis period
cal and social aspects of the profession in

period during which transactions occur, addition to the more technical areas
used for the purpose of deciding in which below-the-line /biləυ ðə lain/ adjec-
below-the-line
they should be assessed for taxation tive, adverb used to describe entries in a
basis point /beisis pɔint/ noun one hun-
basis point
company’s profit and loss account that show

dredth of a percentage point (0.01%), the how the profit is distributed, or where the
basic unit used in measuring market move- funds to finance the loss originate. 쒁 above-
ments or interest rates the-line 1
basis swap /beisis swɒp/ noun the
basis swap
below-the-line expenditure /biləυ ðə

below-the-line
exchange of two financial instruments, each lain ikspenditʃə/ noun 1. payments which
|
with a variable interest calculated on a dif- do not arise from a company’s usual activi-
ferent rate ties, e.g. redundancy payments 2. extraordi-
basket of currencies /bɑskit əv
basket of currencies
nary items which are shown in the profit and

krənsiz/ noun same as currency basket loss account below net profit after taxation,
batch /btʃ/ noun 1. a group of items
batch
as opposed to exceptional items which are

which are made at one time 쑗 This batch of included in the figure for profit before taxa-
shoes has the serial number 25–02. 2. a tion

benchmark 24
benchmark /bentʃmɑk/ noun a point or
benchmark bequest
bequest /bikwest/ noun something such

|
level which is important, and can be used as as property or money (but not freehold
a reference when making evaluations or land), given to someone in a will 쑗 He made
assessments several bequests to his staff.
benchmark accounting policy
benchmark accounting policy
best practice
best practice /best prktis/ noun the

/bentʃmɑk əkaυntiŋ pɒlisi/ noun one
|
most effective and efficient way to do some-
of a choice of two possible policies within thing or to achieve a particular aim (NOTE: In
an International Accounting Standard. The business, best practice is often determined
other policy is marked as an ‘allowed alter- by benchmarking, that is by comparing the
native’, although there is no indication of method one organisation uses to carry out
preference. a task with the methods used by other sim-
benchmarking /bentʃmɑkiŋ/ noun the
benchmarking
ilar organisations and determining which

practice of measuring the performance of a method is most efficient and effective.)
company against the performance of other ‘For the past 25 years, managers have been
companies in the same sector. Benchmark- taught that the best practice for valuing
ing is also used widely in the information assets…is to use a discounted-cash-flow
technology sector to measure the perform- (DCF) methodology.’
ance of computer-based information sys- [Harvard Business Review]
tems. b/f
b/f abbreviation brought forward

beneficial interest /benifiʃ(ə)l
beneficial interest
BFH
intrəst/ noun a situation where someone is BFH /bi ef aitʃ/ noun in Germany, the
allowed to occupy or receive rent from a supreme court for issues concerning taxa-
house without owning it tion. Full form Bundesfinanzhof
bid
beneficial occupier
beneficial occupier
/benifiʃ(ə)l bid /bid/ noun 1. an offer to buy something

ɒkjυpaiə/ noun a person who occupies a at a specific price. 쒁 takeover bid 왍 to make
property but does not own it fully a bid for something to offer to buy some-
beneficiary /benifiʃəri/ noun a person
beneficiary thing 쑗 We made a bid for the house. 쑗 The
company made a bid for its rival. 왍 to make
|
who gains money from something 쑗 the

beneficiaries of a will a cash bid to offer to pay cash for something
왍 to put in or enter a bid for something to
benefit /benifit/ verb 1. to make better or
benefit
offer to buy something, usually in writing 2.

to improve 쑗 A fall in inflation benefits the an offer to sell something or do a piece of
exchange rate. 2. 왍 to benefit from or by work at a specific price 쑗 She made the low-
something to be improved by something, to est bid for the job. 쐽 verb to offer to buy 왍
gain more money because of something 쑗 to bid for something (at an auction) to offer
Exports have benefited from the fall in the to buy something 왍 he bid £1,000 for the
exchange rate. 쑗 The employees have bene- jewels he offered to pay £1,000 for the jew-
fited from the profit-sharing scheme. els
‘…the retail sector will also benefit from bidder
the expected influx of tourists’ [Australian bidder /bidə/ noun a person who makes a
Financial Review] bid, usually at an auction 쑗 Several bidders
made offers for the house.
benefit-cost analysis /benifit kɒst ə
benefit-cost analysis
|
bidding
nlisis/ noun same as cost-benefit analy- bidding /bidiŋ/ noun the act of making
sis offers to buy, usually at an auction 왍 the
benefit in kind /benifit in kaind/ noun
benefit in kind bidding started at £1,000 the first and low-
a benefit other than money received by an est bid was £1,000 왍 the bidding stopped
employee as part of his or her total compen- at £250,000 the last bid, i.e. the successful
sation package, e.g. a company car or private bid, was for £250,000 왍 the auctioneer
health insurance. Such benefits are usually started the bidding at £100 the auctioneer
subject to tax. suggested that the first bid should be £100
bid market
Benford’s Law /benfədz lɔ/ noun a law

Benford’s Law
bid market /bid mɑkit/ noun a market
discovered by Dr Benford in 1938, which where there are more bids to buy than offers
shows that in sets of random numbers, it is to sell. Opposite offered market
bid-offer price
more likely that the set will begin with the bid-offer price /bid ɒfə prais/ noun a
number 1 than with any other number price charged by unit trusts to buyers and
BEP abbreviation break-even point
BEP
sellers of units, based on the bid-offer spread
bid-offer spread
bequeath /bikwið/ verb to leave prop- bid-offer spread /bid ɒfə spred/ noun
bequeath
erty, money, etc. (but not freehold land) to the difference between buying and selling
someone in a will prices (i.e. between the bid and offer prices)

25 blind trust
bid price
bid price /bid prais/ noun a price at ‘…at its last traded price the bank was cap-
which investors sell shares or units in a unit italized at around $1.05 billion’ [South
trust (NOTE: The opposite, i.e. the buying China Morning Post]
bill of exchange /bil əv ikstʃeind /
bill of exchange
price, is called the offer price; the differ- |
ence between the two is the spread.) noun a document, signed by the person
bid rate
bid rate /bid reit/ noun a rate of interest authorising it, which tells another person or
offered on deposits a financial institution to pay money uncon-
big business
ditionally to a named person on a specific
big business /bi biznis/ noun very date (NOTE: Bills of exchange are usually
large commercial firms used for payments in foreign currency.)
bill of lading /bil əv leidiŋ/ noun a doc-
Big Four
Big Four /bi fɔ/ noun 1. the four large

bill of lading
British commercial banks: Barclays, Lloyd- ument listing goods that have been shipped,
sTSB, HSB and Natwest, now joined by sev- sent by the transporter to the seller and
eral former building societies that have entered in the seller’s accounts as money
become banks 2. the four largest interna- owed but not yet paid, and therefore as an
tional accounting companies: Pricewater- asset
houseCoopers, Deloitte Touche Tohmatsu, bill of materials /bil əv mətiəriəlz/
bill of materials
Ernst & Young and KPMG 3. the four larg- noun a document setting out the materials
est Japanese securities houses: Daiwa, and parts required to make a product
Nikko, Nomura and Yamaichi bill of sale /bil əv seil/ noun a document
bill of sale
bilateral clearing
bilateral clearing /bailt(ə)rəl

|
which the seller gives to the buyer to show
kliəriŋ/ noun the system of annual settle- that the sale has taken place
bills payable /bilz peiəb(ə)l/ plural
bills payable
ments of accounts between some countries,

where accounts are settled by the central noun bills, especially bills of exchange,
banks which a company will have to pay to its
bilateral credit
bilateral credit /bailt(ə)rəl kredit/

|
creditors. Abbreviation B/P
bills receivable /bilz risivəb(ə)l/ plu-
bills receivable
noun credit allowed by banks to other banks |
in a clearing system, to cover the period ral noun bills, especially bills of exchange,
while cheques are being cleared which are due to be paid by a company’s
bill debtors. Abbreviation B/R
bill /bil/ noun 1. a written list of charges to BIN abbreviation bank identification
BIN
be paid 쑗 The bill is made out to Smith Ltd number

쑗 The sales assistant wrote out the bill. 쑗
binder /baində/ noun US a temporary
binder
Does the bill include VAT? 2. a list of

charges in a restaurant 쑗 Can I have the bill agreement for insurance sent before the
please? 쑗 The bill comes to £20 including insurance policy is issued (NOTE: The UK
term is cover note.)
service. 쑗 Does the bill include service?
black economy /blk ikɒnəmi/ noun
black economy
Same as check 3. a written paper promising |
to pay money 4. US same as banknote 쑗 a goods and services which are paid for in
$5 bill 5. a draft of a new law which will be cash, and therefore not declared for tax.
discussed in Parliament 쐽 verb to present a Also called hidden economy, parallel
bill to someone so that it can be paid 쑗 The economy, shadow economy
black market /blk mɑkit/ noun the
black market
plumbers billed us for the repairs.

bill broker buying and selling of goods or currency in a
bill broker /bil brəυkə/ noun a discount way which is not allowed by law 쑗 There is
house, a firm which buys and sells bills of a flourishing black market in spare parts for
exchange for a fee cars.
billing
billing /biliŋ/ noun the work of writing blank cheque /blŋk tʃek/ noun a
blank cheque
invoices or bills cheque with the amount of money and the

billion
billion /biljən/ noun one thousand million payee left blank, but signed by the drawer
blanket lien /blŋkit lin/ noun US a
blanket lien
(NOTE: In the US, it has always meant one

thousand million, but in UK English it for- lien on a person’s property, including per-
merly meant one million million, and it is still sonal effects
sometimes used with this meaning. With blind entry /blaind entri/ noun a book-
blind entry
figures it is usually written bn: $5bn say keeping entry that simply records a debit or
‘five billion dollars’.) credit but not other essential information
blind trust /blaind trst/ noun a trust set
blind trust
‘…gross wool receipts for the selling sea-

son to end June 30 appear likely to top $2 up to run a person’s affairs without the
billion’ [Australian Financial Review] details of any transaction being known to the

blocked account 26
person concerned (NOTE: Blind trusts are set directors. 2. US a group of people elected by
up by politicians to avoid potential conflicts the shareholders to draw up company policy
of interest.) and to appoint the president and other exec-
blocked account /blɒkt əkaυnt/ noun
blocked account
|
utive officers who are responsible for man-
a bank account which cannot be used, usu- aging the company
ally because a government has forbidden its ‘…a proxy is the written authorization an
use investor sends to a stockholder meeting
blocked currency /blɒkt krənsi/
blocked currency
conveying his vote on a corporate resolu-
noun a currency which cannot be taken out tion or the election of a company’s board
of a country because of government of directors’ [Barrons]
bona fide /bəυnə faidi/ adjective trust-
bona fide
exchange controls
blocked funds /blɒkt fndz/ plural
blocked funds
worthy, which can be trusted
noun money that cannot be transferred from bond /bɒnd/ noun 1. a contract document
bond
one place to another, usually because of promising to repay money borrowed by a

exchange controls imposed by the govern- company or by the government on a specific
ment of the country in which the funds are date, and paying interest at regular intervals
held 2. 왍 goods (held) in bond goods held by
block trading /blɒk treidiŋ/ noun trad-
block trading
customs until duty has been paid 왍 entry of
ing in very large numbers of shares goods under bond bringing goods into a
Blue Book /blu bυk/ noun an annual
Blue Book
country in bond 왍 to take goods out of
publication of national statistics of personal bond to pay duty on goods so that they can
incomes and spending patterns be released by customs 3. a form of insur-
blue chip /blu tʃip/ noun a very safe
blue chip
ance fund which is linked to a unit trust, but
investment, a risk-free share in a good com- where there is no yield because the income
pany is automatically added to the fund
bond discount /bɒnd diskaυnt/ noun
bond discount
Blue list /blu list/ noun US a daily list of

Blue list
municipal bonds and their ratings, issued by the difference between the face value of a
Standard & Poor’s bond and the lower price at which it is issued
bonded /bɒndid/ adjective held in bond
bonded
blue sky laws /blu skai lɔz/ plural

blue sky laws
bonded warehouse /bɒndid

bonded warehouse
noun US state laws to protect investors

against fraudulent traders in securities weəhaυs/ noun a warehouse where goods
board /bɔd/ noun 1. same as board of
board
are stored until excise duty has been paid
directors 쑗 He sits on the board as a repre- bond fund /bɒnd fnd/ noun a unit trust
bond fund
sentative of the bank. 쑗 Two directors were in which investments are made in the form
removed from the board at the AGM. 2. a of bonds
group of people who run an organisation, bondholder /bɒndhəυldə/ noun a per-
bondholder
trust or society 3. 왍 on board on a ship,

|
son who holds government bonds

plane or train 쐽 verb to go on to a ship, plane
bond indenture /bɒnd indentʃə/ noun
bond indenture
or train 쑗 Customs officials boarded the ship |
in the harbour. a document that details the terms of a bond

bondised /bɒndaizd/, bondized adjec-
bondised
‘CEOs, with their wealth of practical expe-

rience, are in great demand and can pick tive referring to an insurance fund linked to
and choose the boards they want to serve a unit trust
bond market /bɒnd mɑkit/ noun a
bond market
on’ [Duns Business Month]

Board for Actuarial Standards /bɔd
Board for Actuarial Standards
market in which government or municipal
fər ktʃueəriəl stndədz/ noun a UK
|
bonds are traded
bond premium /bɒnd primiəm/ noun
bond premium
authority with responsibility for overseeing

the actuarial profession and setting actuarial the difference between the face value of a
standards bond and a higher price at which it is issued
board meeting /bɔd mitiŋ/ noun a bond-washing /bɒnd wɒʃiŋ/ noun the
board meeting bond-washing
meeting of the directors of a company act of selling securities cum dividend and
Board of Customs and Excise /bɔd
Board of Customs and Excise
buying them back later ex dividend, or sell-
əv kstəmz ənd eksaiz/ noun the ruling ing US Treasury bonds with the interest cou-
body of the Customs and Excise pon, and buying them back ex coupon, so as
board of directors /bɔd əv dai
board of directors
|
to reduce tax
rektəz/ noun 1. a group of directors elected bond yield /bɒnd jild/ noun income
bond yield
by the shareholders to run a company 쑗 The produced by a bond, shown as a percentage

bank has two representatives on the board of of its purchase price

27 borrowings
bonus /bəυnəs/ noun an extra payment in book value per share /bυk vlju pə
bonus book value per share
addition to a normal payment ʃeə/ noun a company’s own assessment of

bonus issue /bəυnəs iʃu/ noun a scrip
bonus issue
the value of its shares, which may differ con-
issue or capitalisation issue, in which a com- siderably from the market value
pany transfers money from reserves to share boom /bum/ noun a time when sales, pro-
boom
capital and issues free extra shares to the duction or business activity are increasing 쑗
shareholders. The value of the company a period of economic boom 쑗 the boom of
remains the same, and the total market value the 1990s
of shareholders’ shares remains the same, booming /bumiŋ/ adjective expanding
booming
the market price being adjusted to account or becoming prosperous 쑗 a booming indus-
for the new shares. Also called share split try or company 쑗 Technology is a booming
(NOTE: The US term is stock split.) sector of the economy.
bonus share /bəυnəs ʃeə/ noun an extra
bonus share
boost /bust/ noun help given to increase

boost
share given to an existing shareholder something 쑗 This publicity will give sales a
book /bυk/ noun 1. a set of sheets of paper boost. 쑗 The government hopes to give a
book
attached together 왍 a company’s books the boost to industrial development. 쐽 verb to

financial records of a company 2. a state- make something increase 쑗 We expect our
ment of a dealer’s exposure to the market, publicity campaign to boost sales by 25%. 쑗
i.e. the amount which he or she is due to pay The company hopes to boost its market
or has borrowed 왍 to make a book to have share. 쑗 Incentive schemes are boosting
a list of shares which he or she is prepared to production.
buy or sell on behalf of clients ‘…the company expects to boost turnover
book inventory /bυk invənt(ə)ri/ noun this year to FFr 16bn from FFr 13.6bn last
book inventory
the number of stock items recorded in year’ [Financial Times]

accounts, which is verified by a physical BOP abbreviation balance of payments
BOP
count border tax adjustment /bɔdə tks ə

border tax adjustment
bookkeeper /bυkkipə/ noun a person

bookkeeper
| d stmənt/ noun a deduction of indirect

who keeps the financial records of a com- tax paid on goods being exported or imposi-
pany or an organisation tion of local indirect tax on goods being
bookkeeping /bυkkipiŋ/ noun the imported
bookkeeping
work of keeping the financial records of a borrow /bɒrəυ/ verb 1. to take money
borrow
company or an organisation from someone for a time, possibly paying

bookkeeping barter /bυkkipiŋ interest for it, and repaying it at the end of
bookkeeping barter
bɑtə/ noun the direct exchange of goods the period 쑗 She borrowed £1,000 from the
between two parties without the use of bank. 쑗 The company had to borrow heavily
money as a medium, but using monetary to repay its debts. 쑗 They borrowed £25,000
measures to record the transaction against the security of the factory. 2. to buy
bookkeeping transaction /bυkkipiŋ
bookkeeping transaction
at spot prices and sell forward at the same
trnzkʃən/ noun a transaction which
|
time
borrower /bɒrəυə/ noun a person who
borrower
involves changes to a company’s books of

accounts, but does not alter the value of the borrows 쑗 Borrowers from the bank pay
company in any way, e.g. the issue of bonus 12% interest.
shares borrowing /bɒrəυiŋ/ noun the act of bor-
borrowing
book of account /bυk əv əkaυnt/

book of account
| rowing money 쑗 The new factory was

noun an account book, a book which records financed by bank borrowing.
financial transactions ‘…we tend to think of building societies as
book of prime entry /bυk əv praim
book of prime entry
having the best borrowing rates and indeed
entri/, book of original entry noun a many do offer excellent terms’ [Financial
chronological record of a business’s transac- Times]
tions arranged according to type, e.g., cash borrowing costs /bɒrəυiŋ kɒsts/ plural
borrowing costs
or sales. The books are then used to generate noun the interest and other charges paid on
entries in a double-entry bookkeeping sys- money borrowed
tem. borrowing power /bɒrəυiŋ paυə/
borrowing power
book sales /bυk seilz/ plural noun sales noun the amount of money which a com-
book sales
as recorded in the sales book pany can borrow

book value /bυk vlju/ noun the value borrowings /bɒrəυiŋz/ plural noun
book value borrowings
of an asset as recorded in the company’s bal- money borrowed 쑗 The company’s borrow-
ance sheet ings have doubled.

bottleneck 28
bottleneck /bɒt(ə)lnek/ noun a situation breach of contract /britʃ əv
bottleneck breach of contract
which occurs when one section of an opera- kɒntrkt/ noun the failure to do some-
tion cannot cope with the amount of work it thing which has been agreed in a contract
has to do, which slows down the later stages breach of trust /britʃ əv trst/ noun a
breach of trust
of the operation and business activity in gen- situation where a person does not act cor-
eral 쑗 a bottleneck in the supply system 쑗 rectly or honestly when people expect him
There are serious bottlenecks in the produc- or her to
tion line. break /breik/ noun 1. a pause between
break
bottleneck activity /bɒt(ə)lnek k

bottleneck activity
|
periods of work 쑗 She keyboarded for two
tiviti/ noun any business activity for which hours without a break. 2. a sharp fall in share
the work involved equals or exceeds the prices 쐽 verb 1. to fail to carry out the duties
income generated of a contract 쑗 The company has broken the
bottom /bɒtəm/ verb to reach the lowest contract or the agreement by selling at a
bottom
point 왍 the market has bottomed out the lower price. 2. to cancel a contract 쑗 The
market has reached the lowest point and company is hoping to be able to break the
does not seem likely to fall further contract. (NOTE: [all verb senses] breaking
bottom line /bɒtəm lain/ noun 1. the
bottom line
– broke – has broken)
last line on a balance sheet indicating profit break down /breik daυn/ phrasal verb 1.
or loss 왍 the boss is interested only in the to stop working because of mechanical fail-
bottom line he is only interested in the final ure 쑗 The fax machine has broken down. 2.
profit 2. the final decision on a matter 쑗 The to stop 쑗 Negotiations broke down after six
bottom line was that the work had to com- hours. 3. to show all the items in a total list
pleted within budget. of costs or expenditure 쑗 We broke the ex-
penditure down into fixed and variable
bottom-up budgeting /bɒtəm p
bottom-up budgeting
costs.
bd itiŋ/ noun same as participative
budgeting break even /breik iv(ə)n/ verb to bal-
ance costs and receipts, so as to make nei-
bought day book /bɔt dei bυk/ noun
bought day book
ther a profit nor a loss 쑗 Last year the

a book used to record purchases made on company only just broke even. 쑗 We broke
credit even in our first two months of trading.
bought ledger /bɔt led ə/ noun a book
bought ledger
break up /breik p/ phrasal verb to split

in which purchases are recorded something large into small sections 쑗 The
bought ledger clerk /bɔt led ə
bought ledger clerk
company was broken up and separate divi-
klɑk/ noun an office employee who deals sions sold off.
with the bought ledger or the sales ledger breakages /breikid iz/ plural noun
breakages
bounce /baυns/ verb (of a cheque) to be

bounce
breaking of items 쑗 Customers are expected
returned by the bank to the person who has to pay for breakages.
tried to cash it, because there is not enough breakdown /breikdaυn/ noun 1. an act
breakdown
money in the payer’s account to pay it 쑗 She of stopping working because of mechanical
paid for the car with a cheque that bounced. failure 쑗 We cannot communicate with our
B/P abbreviation bills payable
B/P
Nigerian office because of the breakdown of
B/R abbreviation bills receivable
B/R
the telephone lines. 2. an act of stopping
talking 쑗 a breakdown in wage negotiations
bracket /brkit/ noun a group of items or
bracket
3. an act of showing details item by item 쑗

people taken together 왍 she is in the top tax Give me a breakdown of investment costs.
bracket she pays the highest level of tax
break-even /breik iv(ə)n/ noun a situa-
break-even
branch accounting /brɑntʃ ə

branch accounting
|
tion where there is neither a profit nor a loss
kaυntiŋ/ noun the fact of operating sepa-
break-even analysis /breik iv(ə)n ə
break-even analysis
rate accounting systems for each department |
of an organisation nləsis/ noun 1. the analysis of fixed and

variable costs and sales that determines at
branch accounts /brɑntʃ əkaυnts/
branch accounts
|
what level of production the break-even
plural noun accounts showing transactions point will be reached 쑗 The break-even
belonging to the branches of a large organi- analysis showed that the company will only
sation, i.e., between a branch and other break even if it sells at least 1,000 bicycles a
branches or its head office, or other compa- month. 2. a method of showing the point at
nies outside the organisation which a company’s income from sales will
breach /britʃ/ noun a failure to carry out
breach
be equal to its production costs so that it nei-

the terms of an agreement ther makes a profit nor makes a loss (NOTE:

29 budget account
Break-even analysis is usually shown in the British Accounting Association
British Accounting Association
form of a chart and can be used to help /britiʃ əkaυntiŋ əsəυsieiʃ(ə)n/ an

| |
companies make decisions, set prices for organisation whose aim is to promote
their products, and work out the effects of accounting education and research in the
changes in production or sales volume on United Kingdom. F. Abbreviation BAA
their costs and profits.) broker /brəυkə/ noun a dealer who acts as
broker
break-even chart /breik iv(ə)n tʃɑt/ a middleman between a buyer and a seller
break-even chart
noun a chart showing the point at which a brokerage /brəυkərid / noun 1. same as
brokerage
company breaks even as the intersection broker’s commission 2. same as broking

between a line plotting total revenue and a brokerage firm /brəυkərid fm/, bro-
brokerage firm
line plotting total cost kerage house /brəυkərid haυs/ noun a

break-even point /breikiv(ə)n pɔint/
break-even point
| firm which buys and sells shares for clients

noun the point or level of financial activity broker-dealer /brəυkə dilə/ noun a
broker-dealer
at which expenditure equals income, or the dealer who buys shares and holds them for
value of an investment equals its cost so that resale, and also deals on behalf of investor
the result is neither a profit nor a loss. clients
Abbreviation BEP broker’s commission /brəυkəz kə
broker’s commission
break-even sales /breik iv(ə)n seilz/

break-even sales
miʃ(ə)n/ noun the payment to a broker for

plural noun a level of sales that neither gen- a deal which he or she has carried out. Also
erates profit nor incurs loss called brokerage (NOTE: Formerly, the com-
break-out /breik aυt/ noun a movement
break-out
mission charged by brokers on the London

of a share price above or below its previous Stock Exchange was fixed, but since 1986,
trading level commissions have been variable.)
break-up value /breik p vlju/ noun broking /brəυkiŋ/ noun the business of
break-up value broking
1. the value of the material of a fixed asset 쑗 dealing in stocks and shares
What would the break-up value of our old brought down /brɔt dυn/, brought
brought down
machinery be? 2. the value of various parts forward /brɔt fɔwəd/ adjective used to
of a company taken separately describe the balance in an account from the
bribe /braib/ noun money given secretly previous period when it is taken as the start-
bribe
and usually illegally to someone in authority ing point for the current period 쑗 balance
to get them to help 쑗 The minister was dis- brought down or forward: £365.15 Abbrevi-
missed for taking a bribe. ation b/d, b/f
B/S abbreviation balance sheet
B/S
bricks-and-mortar /briks ən mɔtə/

bricks-and-mortar
adjective referring to the fixed assets of a B shares /bi ʃeəz/ plural noun ordinary
B shares
company, especially its buildings shares with special voting rights, often
bridge finance /brid fainns/ noun
bridge finance
owned by the founder of a company and his
loans to cover short-term needs or her family. See Comment at A shares
buck /bk/ noun US a dollar (informal)
buck
bridging loan /brid iŋ ləυn/ noun 1. a

bridging loan
short-term loan to help someone buy a new budget /bd it/ noun 1. a plan of
budget
house when the old one has not yet been sold expected spending and income for a period
2. a short-term loan made to a company, e.g. of time 쑗 to draw up a budget for salaries
to help in a cash-flow crisis or to fund com- for the coming year 쑗 We have agreed on the
pany restructuring (NOTE: [all senses] The budgets for next year. 2. 왍 the Budget the
US term is bridge loan.) annual plan of taxes and government spend-
bring down /briŋ daυn/ phrasal verb to ing 쑗 The minister put forward a budget
reduce 쑗 Petrol companies have brought aimed at boosting the economy. 쐽 verb to
down the price of oil. plan probable income and expenditure 쑗 We
bring forward /briŋ fɔwəd/ phrasal verb are budgeting for $10,000 of sales next year.
1. to make something take place earlier 쑗 to ‘…he budgeted for further growth of
bring forward the date of repayment 쑗 The 150,000 jobs (or 2.5 per cent) in the cur-
date of the next meeting has been brought rent financial year’ [Sydney Morning Her-
forward to March. 2. to take an account bal- ald]
ance from the end of the previous period as ‘…the Federal government’s budget tar-
the starting point for the current period 쑗 gets for employment and growth are
Balance brought forward: £365.15 within reach according to the latest fig-
bring in /briŋ in/ phrasal verb to earn an ures’ [Australian Financial Review]
amount of interest 쑗 The shares bring in a budget account /bd it əkaυnt/ noun
budget account
small amount. a bank account where you plan income and

budgetary 30
expenditure to allow for periods when output level for a budget period according to
expenditure is high, by paying a set amount the budget. It may be expressed in different
each month ways, e.g., in machine hours or standard
budgetary /bd it(ə)ri/ adjective refer-
budgetary
hours.
ring to a budget budgeted income statement
budgeted income statement
budgetary control /bd it(ə)ri kən

budgetary control
| /bd itid inkm steitmənt/ noun a

trəυl/ noun controlled spending according statement of a company’s expected net
to a planned budget income in a budgetary period
budgeted revenue /bd itid
budgeted revenue
budgetary policy /bd it(ə)ri pɒlisi/

budgetary policy
noun the policy of planning income and revənju/ noun the income that an organi-
expenditure sation expects to receive in a budget period
budgetary requirements /bd it(ə)ri
budgetary requirements
according to the budget
budget information /bd it
budget information
rikwaiəməntz/ plural noun the rate of

|
spending or income required to meet the infəmeiʃ(ə)n/ noun information about a

budget forecasts company’s expected future levels of income
budgetary slack /bd it(ə)ri slk/
budgetary slack
and expenditure
budgeting /bd itiŋ/ noun the prepara-
budgeting
noun a deliberate underestimation of

income and overestimation of costs, tion of budgets to help plan expenditure and
designed to allow for budgetary emergen- income
cies or to make targets more easily attainable budgeting models /bd itiŋ
budgeting models
budget centre /bd it sentə/ noun a

budget centre
mɒd(ə)lz/ plural noun mathematical mod-
part of an organisation for which a separate els used in the planning of a budget and
budget is prepared designed to generate a profit
budget committee /bd it kəmiti/ budget lapsing /bd it lpsiŋ/ noun
budget committee budget lapsing
noun the group within an organisation withdrawal by an authority of the unspent

responsible for drawing up budgets that portion of an organization’s budget allow-
meet departmental requirements, ensuring ance at the time the budget period expires
they comply with policy, and then submit- budget manual /bd it mnjuəl/
budget manual
ting them to the board of directors noun a handbook or set of documents that
budget control /bd it kəntrəυl/ noun
budget control
| detail budgetary procedure for a company or

the monitoring of a company’s actual per- organisation
formance against its expected performance budget period /bd it piəriəd/ noun a
budget period
as detailed in a budget plan period of time covered by a budget

Budget Day /bd it dei/ noun the day
Budget Day
budget planning calendar /bd it

budget planning calendar
when the Chancellor of the Exchequer plniŋ klində/ noun a schedule show-
presents the budget to Parliament. This is ing plans for the preparation of an organisa-
usually in March, but with an advance tion’s master budget and the departmental
budget statement in November. budgets that depend on it, which usually
budget deficit /bd it defisit/ noun 1. takes several months
budget deficit
a deficit in a country’s planned budget, budget report /bd it ripɔt/ noun a

budget report
where income from taxation will not be suf- report that compares a company’s actual
ficient to pay for the government’s expendi- performance with its budgeted performance
ture 2. a deficit in personal finances where a for a given period
household will borrow to finance large pur- budget surplus /bd it spləs/ noun
budget surplus
chases which cannot be made out of income a situation where there is more revenue than
alone was planned for in the budget
budget department /bd it di
budget department
|
budget variance /bd it veəriəns/
budget variance
pɑtmənt/ noun a department in a large noun the difference between the cost as esti-
store which sells cheaper goods mated for a budget and the actual cost
budget director /bd it dairektə/
budget director
|
buffer stocks /bfə stɒks/ plural noun
buffer stocks
noun the person in an organisation who is stocks of a commodity bought by an interna-

responsible for running the budget system tional body when prices are low and held for
budgeted balance sheet /bd itid
budgeted balance sheet
resale at a time when prices have risen, with

bləns ʃit/ noun a statement of com- the intention of reducing sharp fluctuations
pany’s estimated financial position at the in world prices of the commodity
end of a budgetary year build into /bild intu/ phrasal verb to in-
budgeted capacity /bd itid kə
budgeted capacity
| clude something in something which is be-

psiti/ noun an organisation’s available ing set up 쑗 You must build all the forecasts

31 business expenses
into the budget. that many employees were being laid off
build up /bild p/ phrasal verb 1. to create unfairly.
something by adding pieces together 쑗 She Bundesfinanzhof
Bundesfinanzhof
/bυndəzfi |
bought several shoe shops and gradually nntshɒf/ noun the German Federal
built up a chain. 2. to expand something Finance Court
gradually 쑗 to build up a profitable business business /biznis/ noun 1. work in buy-
business
쑗 to build up a team of sales representatives ing, selling, or doing other things to make a
building and loan association
building and loan association
profit 쑗 We do a lot of business with Japan.

/bildiŋ ən ləυn əsəυsieiʃ(ə)n/ noun US | 쑗 Business is slow. 쑗 We did more business
same as building society in the week before Christmas than we usu-
building society /bildiŋ səsaiəti/ noun
building society
|
ally do in a month. 쑗 What’s your line of
a financial institution which accepts and business? 2. a commercial company 쑗 He
pays interest on deposits, and lends money owns a small car repair business. 쑗 She runs
to people who are buying property against a business from her home. 쑗 I set up in busi-
the security of the property which is being ness as an insurance broker. 3. the affairs
bought 쑗 We put our savings into a building discussed 쑗 The main business of the meet-
society or into a building society account. 쑗 ing was finished by 3 p.m.
I have an account with the Nationwide Business Accounting Deliberation
Business Accounting Deliberation Council
Building Society. 쑗 I saw the building soci- Council /biznis əkaυntiŋ dilibə | | |
ety manager to ask for a mortgage. (NOTE: reiʃ(ə)n kaυns(ə)l/ noun in Japan, a com-
The US term is savings and loan.) mittee controlled by the Ministry of Finance
buildup /bildp/ noun a gradual increase
buildup
that is responsible for drawing up regula-
쑗 a buildup in sales or a sales buildup 쑗 tions regarding the consolidated financial
There has been a buildup of complaints statements of listed companies
business address /biznis ədres/ noun
business address
about customer service. |
built-in obsolescence /bilt in ɒbsə

built-in obsolescence
|
the details of number, street, and city or
les(ə)ns/ noun a method of ensuring con- town where a company is located
business angel /biznis eind əl/ noun
business angel
tinuing sales of a product by making it in

such a way that it will soon become obsolete a wealthy entrepreneurial individual who
bulk buying /blk baiiŋ/ noun the act of
bulk buying
invests money, usually less money than a
buying large quantities of goods at low venture capitalist, in a company in return for
prices equity and some control in that company
business angel network /biznis
business angel network
bullet bond /bυlit bɒnd/ noun US a

bullet bond
Eurobond which is only redeemed when it is eind əl netwk/ noun a regional net-
mature (NOTE: Bullet bonds are used in pay- work of business angels
business centre /biznis sentə/ noun
business centre
ments between central banks and also act

as currency backing.) the part of a town where the main banks,
Bulletin des Annonces Légales
Bulletin des Annonces Légales Obligatoires
shops and offices are located
business combination /biznis
business combination
Obligatoires /bυlətn deiz nɒns lei | |
l ɒblitwɑ/ noun in France, an offi-

|
kɒmbineiʃ(ə)n/ noun the process in
|
cial bulletin in which companies make for- which one or more businesses become sub-
mal announcements to shareholders as sidiaries of another business
required by law. Abbreviation BALO business cycle /biznis saik(ə)l/ noun
business cycle
bullet loan /bυlit ləυn/ noun US a loan

bullet loan
the period during which trade expands,
which is repaid in a single payment slows down and then expands again. Also
bullion /bυliən/ noun a gold or silver bars
bullion
called trade cycle
business day /biznis dei/ noun a week-
business day
쑗 A shipment of gold bullion was stolen

from the security van. 쑗 The price of bullion day when banks and stock exchanges are
is fixed daily. open for business
business entity concept /biznis
business entity concept
bumping /bmpiŋ/ noun US a lay-off

bumping
procedure that allows an employee with entiti kɒnsept/ noun the concept that
greater seniority to displace a more junior financial accounting information relates
employee 쑗 The economic recession led to only to the activities of the business and not
extensive bumping in companies where only to the activities of its owner(s)
business expenses /biznis ik
business expenses
the most qualified were retained for some |
jobs. 쑗 The trade unions strongly objected spensiz/ plural noun money spent on run-
to bumping practices since they considered ning a business, not on stock or assets

business hours 32
back.
business hours
business hours /biznis aυəz/ plural

noun the time when a business is open, usu- buy in /bai in/ phrasal verb 1. (of a seller
ally 9.00 a.m. to 5.30 p.m. at an auction) to buy the thing which you are
business intelligence
business intelligence /biznis in |

trying to sell because no one will pay the
telid (ə)ns/ noun information that may be price you want 2. to buy stock to cover a po-
useful to a business when it is planning its sition 3. (of a company) to buy its own
strategy shares
buyback
‘…a system that enables its employees to buyback /baibk/ noun 1. a type of loan
use cell phones to access the consulting agreement to repurchase bonds or securities
firm’s business information database.’ at a later date for the same price as they are
[InformationWeek] being sold 2. an international trading agree-
business name
business name /biznis neim/ noun a ment where a company builds a factory in a
name used by a company for trading pur- foreign country and agrees to buy all its pro-
poses duction
business plan
business plan /biznis pln/ noun a ‘…the corporate sector also continued to
document drawn up to show how a business return cash to shareholders in the form of
is planned to work, with cash flow forecasts, buy-backs, while raising little money in
sales forecasts, etc., often used when trying the form of new or rights issues’ [Finan-
to raise a loan, or when setting up a new cial Times]
buyer
business buyer /baiə/ noun 1. a person who buys 2.

business property relief
business property relief /biznis a person who buys stock on behalf of a trad-
prɒpəti rilif/ noun in the United King-
|
ing organisation for resale or for use in pro-
dom, a reduction in the amount liable to duction
buyer’s market
inheritance tax on certain types of business buyer’s market /baiəz mɑkit/ noun a
property market where products are sold cheaply
business ratepayer
business ratepayer /biznis reitpeiə/ because there are few people who want to
noun a business which pays local taxes on a buy them. Opposite seller’s market
shop, office, factory, etc.
buying department
buying department /baiiŋ di |
business rates
business rates /biznis reits/ plural pɑtmənt/ noun the department in a com-
noun in the United Kingdom, a tax on busi- pany which buys raw materials or goods for
nesses calculated on the value of the prop- use in the company (NOTE: The US term is
erty occupied. Although the rate of tax is set purchasing department.)
by central government, the tax is collected buying power
buying power /baiiŋ paυə/ noun an

the local authority. assessment of an individual’s or organiza-
business review
business review /biznis rivju/ noun a| tion’s disposable income regarded as confer-
report on business carried out over the past ring the power to make purchases 쑗 The
year. It forms part of the directors’ report. buying power of the dollar has fallen over
business segment
business segment /biznis semənt/ the last five years.

buyout
noun a section of a company which can be buyout /baiaυt/ noun the purchase of a
distinguished from the rest of the company controlling interest in a company
by its own revenue and expenditure ‘…we also invest in companies whose
growth and profitability could be
business transaction
business transaction /biznis trn |
zkʃən/ noun an act of buying or selling improved by a management buyout’

business travel [Times]
business travel /biznis trv(ə)l/ noun
travel costs incurred in the course of work, ‘…in a normal leveraged buyout, the
as opposed to private travel or daily travel to acquirer raises money by borrowing
your usual place of work against the assets or cash flow of the target
buy company’ [Fortune]
buy /bai/ verb to get something by paying bylaw
money 쑗 to buy wholesale and sell retail 쑗 bylaw /bailɔ/ noun a rule made by a local
to buy for cash 쑗 She bought 10,000 shares. authority or organisation, and not by central
쑗 The company has been bought by its lead- government
by-product
ing supplier. (NOTE: buying – bought) by-product /bai prɒdkt/ noun a sec-
buy back /bai bk/ phrasal verb to buy ondary product made as a result of manufac-
something which you sold earlier 쑗 She sold turing a main product which can be sold for
the shop last year and is now trying to buy it profit

C
CA abbreviation chartered accountant back to work after his or her usual working
CA
c/a abbreviation capital account

c/a
hours
called up capital /kɔld p kpit(ə)l/
called up capital
C/A abbreviation current account

C/A
noun share capital in a company which has

calculate /klkjυleit/ verb 1. to find the
calculate
been called up. The share capital becomes

answer to a problem using numbers 쑗 The fully paid when all the authorised shares
bank clerk calculated the rate of exchange have been called up.
for the dollar. 2. to estimate 쑗 I calculate ‘…a circular to shareholders highlights
that we have six months’ stock left. that the company’s net assets as at August
calculation /klkjυleiʃ(ə)n/ noun the
calculation
| 1, amounted to £47.9 million – less than

answer to a problem in mathematics 쑗 half the company’s called-up share capital
According to my calculations, we have six of £96.8 million. Accordingly, an EGM
months’ stock left. 왍 we are £20,000 out in has been called for October 7’ [Times]
our calculations we have made a mistake in call-in pay /kɔl in pei/ noun payment
call-in pay
our calculations and arrived at a figure guaranteed to employees who report for
which is £20,000 too much or too little work even if there is no work for them to do
calendar variance /klində veəriəns/
calendar variance
쑗 Call-in pay is often necessary to ensure
noun variance which occurs if a company the attendance of employees where there is
uses calendar months for the financial at least the possibility of work needing to be
accounts but uses the number of actual done.
call loan /kɔl ləυn/ noun a bank loan
call loan
working days to calculate overhead

expenses in the cost accounts repayable at call
call money /kɔl mni/ noun money
call money
calendar year /klində jiə/ noun a

calendar year
year from the 1st January to 31st December loaned for which repayment can be
demanded without notice. Also called
call /kɔl/ noun 1. a demand for repayment
call
money at call, money on call

of a loan by a lender 2. a demand to pay for
call option /kɔl ɒpʃən/ noun an option
call option
new shares which then become paid up 쐽

verb to ask for a loan to be repaid immedi- to buy shares at a future date and at a specific
ately price. Also called call
call price /kɔl prais/ noun a price to be
call price
call in /kɔl in/ phrasal verb 1. to visit 쑗

Their sales representative called in twice paid on redemption of a US bond
call provision /kɔl prəvi (ə)n/ noun a
call provision
last week. 2. to ask for a debt to be paid |
call up /kɔl p/ phrasal verb to ask for clause that allows a bond to be redeemed
share capital to be paid before its maturity date
call purchase /kɔl ptʃis/, call sale
call purchase
callable bond /kɔləb(ə)l bɒnd/ noun a

callable bond
bond which can be redeemed before it /kɔl seil/ noun a transaction where the
matures seller or purchaser can fix the price for
future delivery
callable capital /kɔləb(ə)l kpit(ə)l/
callable capital
calls in arrear /kɔls in əriə/ plural

calls in arrear
noun the part of a company’s capital which noun money called up for shares, but not
has not been called up paid at the correct time and a special calls in
call account /kɔl əkaυnt/ noun a type
call account
|
arrear account is set up to debit the sums
of current account where money can be owing
withdrawn without notice Canadian Institute of Chartered
Canadian Institute of Chartered Accountants
call-back pay /kɔl bk pei/ noun pay Accountants /kəneidiən institjut əv
call-back pay
given to an employee who has been called tʃɑtəd əkaυntənts/ noun in Canada, the
|

cap 34
principal professional accountancy body company with $10,000 capital or with a cap-
that is responsible for setting accounting ital of $10,000 2. money owned by individ-
standards. Abbreviation CICA uals or companies, which they use for
cap /kp/ noun 1. an upper limit placed on
cap
investment
something, such as an interest rate. The capital account /kpit(ə)l əkaυnt/
capital account
opposite, i.e. a lower limit, is a ‘floor’). 2. noun 1. an account that states the value of
same as capitalisation (informal) 쑗 Last funds and assets invested in a business by
year the total market cap of all the world’s the owners or shareholders 2. the portion of
gold companies fell from $71 billion to $46 a country’s balance of payments that refers
billion. 쐽 verb to place an upper limit on to investments, rather than to the buying and
something 쑗 to cap a department’s budget selling of merchandise 3. a statement of the
(NOTE: capping – capped) net worth of an organization at a given time
CAPA noun a large association of account- capital adequacy /kpit(ə)l
CAPA capital adequacy
ancy bodies that operate in Asia and the dikwəsi/, capital adequacy ratio
Pacific Rim countries. Full form Confeder- /kpit(ə)l dikwəsi reiʃiəυ/ noun the
ation of Asian and Pacific Accountants amount of money which a bank has to have
capacity /kəpsiti/ noun 1. the amount
capacity
|
in the form of shareholders’ capital, shown
which can be produced, or the amount of as a percentage of its assets. Also called
work which can be done 쑗 industrial or capital-to-asset ratio (NOTE: The amount
manufacturing or production capacity 2. the is internationally agreed at 8%.)
amount of space 왍 to use up spare or excess capital allowances /kpit(ə)l ə
capital allowances
capacity to make use of time or space which laυənsiz/ plural noun the allowances based
is not fully used 3. ability 쑗 She has a par- on the value of fixed assets which may be
ticular capacity for detailed business deals deducted from a company’s profits and so
with overseas companies. reduce its tax liability
‘…analysts are increasingly convinced capital appreciation /kpit(ə)l ə
capital appreciation
that the industry simply has too much priʃieiʃ(ə)n/ noun same as appreciation
|
capacity’ [Fortune] capital asset pricing

capital asset pricing model
model
capacity costs /kəpsiti kɒsts/ plural
capacity costs
| /kpit(ə)l set praisiŋ mɒd(ə)l/ noun

noun costs incurred to allow a company or an equation that shows the relationship
produce more goods or services, e.g. the between expected risk and expected return
purchase of machinery or buildings on an investment and serves as a model for
capacity management /kəpsiti valuing risky securities. Abbreviation
capacity management
mnid mənt/ noun management of the CAPM

cost of a company’s unused capacity, which capital assets /kpit(ə)l sets/ plural
capital assets
does not rightly influence pricing noun the property, machines, and other
capacity requirements planning /kə assets which a company owns and uses but
capacity requirements planning
psiti rikwaiəmənts plniŋ/ noun

| which it does not buy and sell as part of its
planning that determines how much machin- regular trade. Also called fixed assets
ery and equipment is needed in order to meet capital base /kpit(ə)l beis/ noun the
capital base
production targets capital structure of a company (sharehold-

capacity usage variance /kəpsiti ers’ capital plus loans and retained profits)
capacity usage variance
jusid veəriəns/ noun the difference in used as a way of assessing the company’s
gain or loss in a given period compared to worth
budgeted expectations, caused because the capital bonus /kpit(ə)l bəυnəs/ noun
capital bonus
hours worked were longer or shorter than an extra payment by an insurance company
planned which is produced by a capital gain
capacity variance /kəpsiti veəriəns/
capacity variance
capital budget /kpit(ə)l bd it/ noun

capital budget
|
noun variance caused by the difference a budget for planned purchases of fixed
between planned and actual hours worked assets during the next budget period
Caparo case /kəpɑrəυ keis/ noun in
Caparo case
capital budgeting /kpit(ə)l

capital budgeting
|
|
England, a court decision taken by the bd itiŋ/ noun the process of deciding on
House of Lords in 1990 that auditors owe a specific investment projects, the amount of
duty of care to present (not prospective) expenditure to commit to them and how the
shareholders as a body but not as individuals finance will be raised
CAPEX abbreviation capital expenditure
CAPEX
capital commitments /kpit(ə)l kə

capital commitments
capital /kpit(ə)l/ noun 1. the money, mitmənts/ plural noun expenditure on

capital
property, and assets used in a business 쑗 a assets which has been authorised by direc-

35 capitalism
tors, but not yet spent at the end of a finan- capital goods /kpit(ə)l υdz/ plural
capital goods
cial period noun machinery, buildings, and raw materi-

capital consumption /kpit(ə)l kən
capital consumption
| als which are used to make other goods

smpʃ(ə)n/ noun in a given period, the capital inflow /kpit(ə)l infləυ/ noun
capital inflow
total depreciation of a national economy’s the movement of capital into a country by

fixed assets based on replacement costs buying shares in companies, buying whole
capital costs /kpit(ə)l kɒsts/ plural companies or other forms of investment
capital costs
noun expenses on the purchase of fixed capital-intensive industry /kpit(ə)l

capital-intensive industry
assets intensiv indəstri/ noun an industry

|
capital deepening /kpit(ə)l

capital deepening
which needs a large amount of capital

dipəniŋ/ noun increased investment of investment in plant to make it work
capital in a business, without changing other capital investment /kpit(ə)l in
capital investment
factors of production. Also called capital vestmənt/ noun same as capital expendi-
widening ture
capital employed /kpit(ə)l implɔid/
capital employed
capital investment appraisal

capital investment appraisal
|
noun an amount of capital consisting of /kpit(ə)l investmənt əpreiz(ə)l/ noun

| |
shareholders’ funds plus the long-term debts an analysis of the future profitability of cap-
of a business. 쒁 return on assets ital purchases as an aid to good management
capital equipment /kpit(ə)l i
capital equipment
capitalisation /kpit(ə)laizeiʃ(ə)n/,
capitalisation
|
|
kwipmənt/ noun equipment which a fac- capitalization noun the value of a company
tory or office uses to work calculated by multiplying the price of its
capital expenditure /kpit(ə)l ik
capital expenditure
|
shares on the stock exchange by the number
spenditʃə/ noun money spent on fixed of shares issued. Also called market capi-
assets such as property, machines and furni- talisation
ture. Also called capital investment, capi- ‘…she aimed to double the company’s
tal outlay. Abbreviation CAPEX market capitalization’ [Fortune]
capital expenditure budget
capital expenditure budget
capitalisation issue /kpitəlai

capitalisation issue
/kpit(ə)l ikspenditʃə bd it/ noun a

|
|
zeiʃ(ə)n iʃu/ noun same as bonus issue
budget for planned purchases of fixed assets
capitalisation of costs
capitalisation of costs
during the budget period

/kpit(ə)laizeiʃ(ə)n əv kɒsts/ noun the
capital flight /kpit(ə)l flait/ noun the
capital flight
rapid movement of capital out of a country act of including costs usually charged to the
because of lack of confidence in that coun- profit and loss account in the balance sheet.
try’s economic future in response to political The effect is that profits are higher than if
unrest, war or other conditions. Also called such costs are matched with revenues in the
flight of capital
same accounting period.
capitalisation of earnings
capitalisation of earnings
capital gain /kpit(ə)l ein/ noun an

capital gain
amount of money made by selling a fixed /kpitəlaizeiʃ(ə)n əv niŋz/ noun a

asset or certain other types of property, such method of valuing a business according to
as shares, works of art, leases etc. Opposite its expected future profits
capitalise /kpit(ə)laiz/, capitalize
capitalise
capital loss
capital gains expenses /kpit(ə)l
capital gains expenses
verb 1. to invest money in a working com-
einz ikspensiz/ plural noun expenses
|
pany 왍 the company is capitalised at
incurred in buying or selling assets, which £10,000 the company has a working capital
can be deducted when calculating a capital of £10,000 2. to convert reserves or assets
gain or loss into capital
capital gains tax /kpit(ə)l einz
capital gains tax
‘…at its last traded price the bank was cap-
tks/ noun a tax on the difference between italized at around $1.05 billion with 60 per
the gross acquisition cost and the net pro- cent in the hands of the family’ [South
ceeds when an asset is sold. In the United China Morning Post]
Kingdom, this tax also applies when assets capitalise on phrasal verb to make a profit
are given or exchanged, although each indi- from 쑗 We are seeking to capitalise on our
vidual has an annual capital gains tax allow- market position.
capitalism /kpit(ə)liz(ə)m/ noun the
capitalism
ance that exempts gains within that tax year

below a stated level. In addition, certain economic system in which each person has
assets may be exempt, e.g., a person’s prin- the right to invest money, to work in busi-
cipal private residence and transfers of ness, and to buy and sell, with no restrictions
assets between spouses. Abbreviation CGT from the state

capitalist 36
capitalist /kpit(ə)list/ adjective work-
capitalist
changing the capital structure of a company

ing according to the principles of capitalism by amalgamating or dividing existing shares
쑗 the capitalist system 쑗 the capitalist coun- to form shares of a higher or lower nominal
tries or world value
capitalist economy /kpit(ə)list i capital reserves /kpit(ə)l rizvz/
capitalist economy capital reserves
| |
kɒnəmi/ noun an economy in which each plural noun 1. money from profits, which
person has the right to invest money, to work forms part of the capital of a company and
in business, and to buy and sell, with no can be used for distribution to shareholders
restrictions from the state only when a company is wound up. Also
capital lease /kpit(ə)l lis/ noun a
capital lease
called undistributable reserves 2. the
lease that gives the lessee substantial prop- share capital of a company which comes
erty rights from selling assets and not from their usual
capital levy /kpit(ə)l levi/ noun a tax
capital levy
trading
capital shares /kpit(ə)l ʃeəz/ plural
capital shares
on the value of a person’s property and pos-

sessions noun (on the Stock Exchange) shares in a
capital loss /kpit(ə)l lɒs/ noun a loss
capital loss
unit trust which rise in value as the capital
made by selling assets. Opposite capital value of the units rises, but do not receive
gain any income (NOTE: The other form of shares
capital maintenance
capital maintenance concept
concept in a split-level investment trust are income

/kpit(ə)l meintənəns kɒnsept/ noun a shares, which receive income from the
concept used to determine the definition of investments, but do not rise in value.)
capital stock /kpit(ə)l stɒk/ noun 1.
capital stock
profit, that provides the basis for different

systems of inflation accounting the amount of money raised by a company
capital market /kpit(ə)l mɑkit/
capital market
through the sale of shares, entitling holders
noun an international market where money to dividends, some rights of ownership and
can be raised for investment in a business other benefits 2. the face value of the share
capital outlay /kpit(ə)l aυtlei/ noun
capital outlay capital that a company issues
capital structure /kpit(ə)l strktʃə/
capital structure
same as capital expenditure

capital profit /kpit(ə)l prɒfit/ noun a
capital profit noun the relative proportions of equity capi-
profit made by selling an asset tal and debt capital within a company’s bal-
ance sheet
capital project /kpit(ə)l prɒd ekt/
capital project
capital surplus /kpit(ə)l spləs/

capital surplus
noun a large-scale and complex project,

often involving construction or engineering noun the total value of shares in a company
work, in which an organisation spends part that exceeds the par value
capital tax /kpit(ə)l tks/ noun a tax
capital tax
of its financial resources on creating capac-

ity for production levied on the capital owned by a company,
capital ratio /kpit(ə)l reiʃiəυ/ noun
capital ratio
rather than on its spending. 쒁 capital gains
same as capital adequacy tax
capital-to-asset ratio /kpit(ə)l tυ
capital-to-asset ratio
capital rationing /kpit(ə)l

capital rationing
rʃ(ə)niŋ/ noun restrictions on capital set reiʃiəυ/, capital/asset ratio noun

investment, the result either of the internal same as capital adequacy
capital transactions /kpit(ə)l trn
capital transactions
imposition of a budget ceiling or of external |
limitations such as the fact that additional zkʃ(ə)nz/ plural noun transactions affect-
borrowing is not available ing non-current items such as fixed assets,
capital reconstruction /kpit(ə)l
capital reconstruction
long-term debt or share capital, rather than
rikənstrkʃən/ noun the act of putting a
|
revenue transactions
capital transfer tax /kpit(ə)l
capital transfer tax
company into voluntary liquidation and then

selling its assets to another company with trnsf tks/ noun in the United King-
the same name and same shareholders, but dom, a tax on the transfer of assets that was
with a larger capital base replaced in 1986 by inheritance tax
capital turnover ratio /kpit(ə)l
capital turnover ratio
capital redemption
capital redemption reserve
reserve
/kpit(ə)l ridempʃən rizv/ noun an
| |
tnəυvə reiʃiəυ/ noun turnover divided
account required to prevent a reduction in by average capital during the year
capital widening /kpit(ə)l
capital widening
capital, where a company purchases or

redeems its own shares out of distributable waid(ə)niŋ/ noun same as capital deep-
profits ening
capital reorganisation /kpit(ə)l ri CAPM abbreviation capital asset pricing
capital reorganisation CAPM
ɔənaizeiʃ(ə)n/ noun the process of

| model

37 cash budget
capped floating rate note /kpt profit from 쑗 The company is cashing in on
capped floating rate note
fləυtiŋ reit nəυt/ noun a floating rate the interest in computer games.
note which has an agreed maximum rate cash out phrasal verb US same as cash up
captive market /kptiv mɑkit/ noun
captive market
cash up /kʃ p/ phrasal verb to add up
a market where one supplier has a monopoly the cash in a shop at the end of the day
and the buyer has no choice over the product cashable /kʃəb(ə)l/ adjective able to be
cashable
which he or she must purchase cashed 쑗 A crossed cheque is not cashable

carriage /krid / noun the transporting at any bank.
carriage
of goods from one place to another 쑗 to pay cash account /kʃ əkaυnt/ noun an
cash account
for carriage account which records the money which is

carriage forward /krid fɔwəd/ received and spent
carriage forward
noun a deal where the customer pays for cash accounting /kʃ əkaυntiŋ/ noun
cash accounting
transporting the goods 1. an accounting method in which receipts

carriage free /krid fri/ noun a deal
carriage free
and expenses are recorded in the accounting

where the customer does not pay for the books in the period when they actually occur
shipping 2. in the United Kingdom, a system for
carriage inwards /krid inwədz/
carriage inwards
Value Added Tax that enables the tax payer
noun delivery expenses incurred through the to account for tax paid and received during a
purchase of goods given period, thus allowing automatic relief
carriage outwards /krid aυtwədz/
carriage outwards
for bad debts
cash advance /kʃ ədvɑns/ noun a
cash advance
noun delivery expenses incurred through the |
sale of goods loan in cash against a future payment

carriage paid /krid peid/ noun a cash and carry /kʃ ən kri/ noun 1.
carriage paid cash and carry
deal where the seller has paid for the ship- a large store selling goods at low prices,
ping where the customer pays cash and takes the
carry /kri/ noun the cost of borrowing to
carry
goods away immediately 쑗 We get our sup-
finance a deal plies every morning from the cash and carry.
carry back /kri bk/ phrasal verb to 2. the activity of buying a commodity for
take back to an earlier accounting period cash and selling the same commodity on the
carry down /kri daυn/, carry forward futures market
/kri fɔwəd/ phrasal verb to take an ac- ‘…the small independent retailer who
count balance at the end of the current peri- stocks up using cash and carries could be
od as the starting point for the next period hit hard by the loss of footfall associated
carry forward /kri fɔwəd/ phrasal verb with any increase in smuggled goods’ [The
to take an account balance at the end of the Grocer]
cash at bank /kʃ ət bŋk/ noun the
cash at bank
current period or page as the starting point

for the next period or page total amount of money held at the bank by an
carrying cost /kriiŋ kɒst/ noun any
carrying cost
individual or company
cashback /kʃbk/ noun a discount sys-
cashback
expense associated with holding stock for a

given period, e.g., from the time of delivery tem where a purchaser receives a cash dis-
to the time of dispatch. Carrying costs will count on the completion of the purchase
include storage and insurance. ‘… he mentioned BellSouth’s DSL offer
carrying value /kriiŋ vlju/ noun
carrying value
of $75 a month, plus a one-month cash-
same as book value back rebate.’ [BusinessWeek]
carry-over /kri əυvə/ noun the stock of cash balance /kʃ bləns/ noun a bal-
carry-over cash balance
a commodity held at the beginning of a new ance that represents cash alone, as distinct
financial year from a balance that includes money owed
cartel /kɑtel/ noun a group of companies
cartel
|
but as yet unpaid
cash basis /kʃ beisis/ noun a method
cash basis
which try to fix the price or to regulate the

supply of a product so that they can make of preparing the accounts of a business,
more profit where receipts and payments are shown at
cash /kʃ/ noun 1. money in the form of
cash
the time when they are made, as opposed to
coins or notes 2. the using of money in coins showing debts or credits which are outstand-
or notes 쐽 verb 왍 to cash a cheque to ing at the end of the accounting period. Also
exchange a cheque for cash called receipts and payments basis
cash in /kʃ in/ phrasal verb to sell cash budget /kʃ bd it/ noun a plan
cash budget
shares or other property for cash of cash income and expenditure. Also called
cash in on /kʃ in ɒn/ phrasal verb to cash-flow budget

cash card 38
cash card /kʃ kɑd/ noun a plastic card cash-flow statement /kʃ fləυ
cash card cash-flow statement
used to obtain money from a cash dispenser steitmənt/ noun a record of a company’s
cash cow /kʃ kaυ/ noun a product or
cash cow
cash inflows and cash outflows over a spe-
subsidiary company that consistently gener- cific period of time, typically a year
ates good profits but does not provide cash-flow-to-total-debt ratio /kʃ
cash-flow-to-total-debt ratio
growth fləυ tə det reiʃiəυ/ noun a ratio that indi-

cash discount /kʃ diskaυnt/ noun a
cash discount
cates a company’s ability to pay its debts,
discount given for payment in cash. Also often used as an indicator of bankruptcy
called discount for cash cash fraction /kʃ frkʃən/ noun a
cash fraction
cash dispenser /kʃ dispensə/ noun a small amount of cash paid to a shareholder
cash dispenser
machine which gives out money when a spe- to make up the full amount of part of a share
cial card is inserted and instructions given which has been allocated in a share split
cash dividend /kʃ dividend/ noun a cash-generating unit
cash-generating unit
/kʃ
cash dividend
dividend paid in cash, as opposed to a divi- d enəreitiŋ junit/ noun the smallest
dend in the form of bonus shares identifiable group of assets that generates
cash economy /kʃ ikɒnəmi/ noun a
cash economy
|
cash inflows and outflows that can be meas-
black economy, where goods and services ured
are paid for in cash, and therefore not cashier /kʃiə/ noun 1. a person who
cashier
declared for tax takes money from customers in a shop or

cash equivalent /kʃ ikwivələnt/
cash equivalent
|
who deals with the money that has been paid
noun 1. an amount of money that can be 2. a person who deals with customers in a
realised immediately by selling an asset 2. a bank and takes or gives cash at the counter
safe and highly liquid financial instrument cashier’s check /kʃiəz tʃek/ noun
cashier’s check
such as a Treasury bill US a bank’s own cheque, drawn on itself and

cash equivalents /kʃ ikwivələnts/
cash equivalents
| signed by a cashier or other bank official

noun short-term investments that can be cash inflow /kʃ infləυ/ noun receipts
cash inflow
converted into cash immediately and that are of cash or cheques

subject to only a limited risk. There is usu- cash items /kʃ aitəmz/ plural noun
cash items
ally a limit on their duration, e.g., three goods sold for cash
months.
cashless society /kʃləs səsaiəti/
cashless society
cash float /kʃ fləυt/ noun cash put into

cash float |
noun a society where no one uses cash, all

the cash box at the beginning of the day or purchases being made by credit cards,
week to allow change to be given to custom- charge cards, cheques or direct transfer from
ers one account to another
cash flow /kʃ fləυ/ noun cash which
cash flow
cash limit /kʃ limit/ noun 1. a fixed

cash limit
comes into a company from sales (cash

amount of money which can be spent during
inflow) or the money which goes out in pur- some period 2. a maximum amount some-
chases or overhead expenditure (cash out-
one can withdraw from an ATM using a cash
flow)
card
cash-flow accounting /kʃ fləυ ə
cash-flow accounting
cash offer /kʃ ɒfə/ noun an offer to

| cash offer
kaυntiŋ/ noun the practice of measuring

the financial activities of a company in terms pay in cash, especially an offer to pay cash
of cash receipts and payments, without when buying shares in a takeover bid
cash outflow /kʃ aυtfləυ/ noun
cash outflow
recording accruals, prepayments, debtors,

creditors and stocks expenditure in cash or cheques
cash payment /kʃ peimənt/ noun
cash payment
cash-flow budget /kʃ fləυ bd it/

cash-flow budget
noun same as cash budget payment in cash

cash payments journal /kʃ
cash payments journal
cash-flow forecast /kʃ fləυ

cash-flow forecast
fɔkɑst/ noun a forecast of when cash will peimənts d n(ə)l/ noun a chronological
be received or paid out record of all the payments that have been
cash-flow ratio /kʃ fləυ reiʃiəυ/
cash-flow ratio
made from a company’s bank account
cash position /kʃ pəziʃ(ə)n/ noun a
cash position
noun a ratio that shows the level of cash in a |
business in relation to other assets and the state of the cash which a company currently
use of cash in the activities of the business has available
cash-flow risk /kʃ fləυ risk/ noun the cash price /kʃ prais/ noun 1. a lower
cash-flow risk cash price
risk that a company’s available cash will not price or better terms which apply if the cus-
be sufficient to meet its financial obligations tomer pays cash 2. same as spot price

39 certificate of deposit
cash purchase /kʃ ptʃis/ noun a ceiling /siliŋ/ noun the highest point that
cash purchase ceiling
purchase made for cash something can reach, e.g. the highest rate of
cash receipts journal /kʃ risits
cash receipts journal
|
a pay increase 쑗 to fix a ceiling for a budget
d n(ə)l/ noun a chronological record of 쑗 There is a ceiling of $100,000 on deposits.
all the receipts that have been paid into a 쑗 Output reached its ceiling in June and has
company’s bank account since fallen back. 쑗 What ceiling has the
cash register /kʃ red istə/ noun a
cash register
government put on wage increases this
machine which shows and adds the prices of year?
central bank /sentrəl bŋk/ noun the
central bank
items bought, with a drawer for keeping the

cash received main government-controlled bank in a coun-
cash reserves /kʃ rizvz/ plural
cash reserves
|
try, which controls that country’s financial
noun a company’s reserves in cash deposits affairs by fixing main interest rates, issuing
or bills kept in case of urgent need 쑗 The currency, supervising the commercial banks
company was forced to fall back on its cash and trying to control the foreign exchange
reserves. rate
central bank discount rate /sentrəl
central bank discount rate
cash sale /kʃ seil/ noun a transaction

cash sale
paid for in cash bŋk diskaυnt reit/ noun the rate at

cash surrender value /kʃ sərendə
cash surrender value
|
which a central bank discounts bills such as
vlju/ noun the amount of money that an Treasury bills
central bank intervention /sentrəl
central bank intervention
insurance company will pay a policyholder

who chooses to terminate a policy before the bŋk intəvenʃ(ə)n/ noun an action by a
|
maturity date central bank to change base interest rates, to

cash terms /kʃ tmz/ plural noun
cash terms
impose exchange controls or to buy or sell
lower terms which apply if the customer the country’s own currency in an attempt to
pays cash influence international money markets
central government /sentrəl
central government
cash-to-current-liabilities ratio /kʃ

cash-to-current-liabilities ratio
tə krənt laiəbilitiz reiʃiəυ/ noun a

|
v(ə)nmənt/ noun the main government
ratio that indicates a company’s ability to of a country as opposed to municipal, local,
pay its short-term debts, often used as an provincial or state governments
centralise /sentrəlaiz/ verb to organise
centralise
indicator of liquidity
cash transaction /kʃ trnzkʃən/
cash transaction
|
from a central point 쑗 All purchasing has
noun a transaction paid for in cash, as dis- been centralised in our main office. 쑗 The
tinct from a transaction paid for by means of company has become very centralised, and
a transfer of a financial instrument far more staff work at headquarters.
central purchasing /sentrəl
central purchasing
cash voucher /kʃ vaυtʃə/ noun a

cash voucher
piece of paper which can be exchanged for ptʃisiŋ/ noun purchasing organised by a
cash 쑗 With every $20 of purchases, the cus- central office for all branches of a company
tomer gets a cash voucher to the value of $2. centre /sentə/ noun a department, area or
centre
casting vote /kɑstiŋ vəυt/ noun a vote

casting vote
function to which costs and/or revenues are
used by the chairman in the case where the charged (NOTE: The US spelling is center.)
votes for and against a proposal are equal 쑗 CEO abbreviation chief executive officer
CEO
The chairman has the casting vote. 쑗 She certain annuity /st(ə)n ənjuiti/
certain annuity
used her casting vote to block the motion. noun an annuity which will be paid for a
casual labour /k uəl leibə/ noun
casual labour
specific number of years only

workers who are hired for a short period certificate /sətifikət/ noun an official
certificate
casual work /k uəl wk/ noun work

casual work
document carrying an official declaration by

where the employees are hired only for a someone, and signed by that person
short period certificated bankrupt /sətifikeitid
certificated bankrupt
casual worker /k uəl wkə/ noun an

casual worker
bŋkrpt/ noun a bankrupt who has been

employee who can be hired for a short discharged from bankruptcy with a certifi-
period cate to show that he or she was not at fault
CAT abbreviation certified accounting tech-
CAT
certificate of approval /sətifikət əv ə

certificate of approval
| |
nician pruv(ə)l/ noun a document showing that

CCA abbreviation current cost accounting
CCA
an item has been approved officially

CCAB abbreviation Consultative Commit-
CCAB
certificate of deposit /sətifikət əv di

certificate of deposit
| |
tee of Accountancy Bodies pɒzit/ noun a document from a bank show-

CD abbreviation certificate of deposit
CD
ing that money has been deposited at a guar-

certificate of incorporation 40
anteed interest rate for a certain period of
cession
cession /seʃ(ə)n/ noun the act of giving

time. Abbreviation CD up property to someone, especially a credi-
‘…interest rates on certificates of deposit tor
may have little room to decline in August CFO
CFO abbreviation chief financial officer

as demand for funds from major city banks CGT
is likely to remain strong. After delaying CGT abbreviation capital gains tax
for months, banks are now expected to CH
CH abbreviation Companies House

issue a large volume of CDs. If banks issue chairman
more CDs on the assumption that the offi- chairman /tʃeəmən/ noun 1. a person
cial discount rate reduction will be who is in charge of a meeting 쑗 Mr Howard
delayed, it is very likely that CD rates will was chairman or acted as chairman 2. a per-
be pegged for a longer period than son who presides over the board meetings of
expected’ [Nikkei Weekly] a company 쑗 the chairman of the board or
certificate of incorporation
the company chairman 왍 the chairman’s
certificate of incorporation /sə |
report, the chairman’s statement an

tifikət əv inkɔpəreiʃ(ə)n/ noun a docu-
annual report from the chairman of a com-
| |
ment issued by Companies House to show

that a company has been legally set up and pany to the shareholders
officially registered ‘…the corporation’s entrepreneurial chair-
certificate of origin man seeks a dedicated but part-time presi-
certificate of origin /sətifikət əv |
dent. The new president will work a three-
ɒrid in/ noun a document showing where day week’ [Globe and Mail (Toronto)]
imported goods come from or were made Chamber of Commerce
certificate of quality Chamber of Commerce /tʃeimbər əv

certificate of quality /sətifikət əv |
kɒms/ noun an organisation of local busi-
kwɒliti/ noun a certificate showing the ness people who work together to promote
grade of a soft commodity and protect common interest in trade
certificate of registration
certificate of registration /sətifikət |

Chancellor of the Exchequer
Chancellor of the Exchequer

əv red istreiʃ(ə)n/ noun a document
|
/tʃɑnsələr əv ði ikstʃekə/ noun the
|
showing that an item has been registered chief finance minister in the British govern-
certificate to commence business
certificate to commence business ment (NOTE: The US term is Secretary of

/sətifikət tə kəmens biznis/ noun a
| | the Treasury.)
document issued by the Registrar of Compa- change
change /tʃeind / noun 1. money in coins

nies which allows a registered company to or small notes. 쒁 exchange 왍 to give some-
trade one change for £10 to give someone coins
certified accountant
certified accountant /stifaid ə |

or notes in exchange for a ten pound note 2.
kaυntənt/ noun an accountant who has money given back by the seller, when the
passed the professional examinations and is buyer can pay only with a larger note or coin
a member of the Association of Certified than the amount asked 쑗 She gave me the
Chartered Accountants (ACCA) wrong change. 쑗 You paid the £5.75 bill
certified accounting technician
certified accounting technician with a £10 note, so you should have £4.25
/stifaid əkaυntiŋ tekniʃ(ə)n/ noun a
| |
change. 3. an alteration of the way some-
person who has passed the first stage course thing is done or of the way work is carried
of the Association of Chartered Certified out 왍 change in accounting principles
Accountants (ACCA). Abbreviation CAT using a method to state a company’s
certified cheque
certified cheque /stifaid tʃek/ noun accounts which is different from the method
a cheque which a bank says is good and will used in the previous accounts. This will have
be paid out of money put aside from the to be agreed with the auditors, and possibly
payer’s bank account with the Inland Revenue. 쐽 verb 1. 왍 to
certified public accountant
change a £20 note to give someone smaller
certified public accountant notes or coins in place of a £20 note 2. to
/stifaid pblik əkaυntənt/ noun US |
give one type of currency for another 쑗 to
same as chartered accountant change £1,000 into dollars 쑗 We want to
certify
certify /stifai/ verb to make an official change some traveller’s cheques.

declaration in writing 쑗 I certify that this is change in accounting estimate
change in accounting estimate

a true copy. 쑗 The document is certified as a /tʃeind in əkaυntiŋ estimət/ noun a
|
true copy. (NOTE: certifies – certifying – change in a major assumption or forecast

certified) underpinning a set of accounts, full disclo-
cessation
cessation /seseiʃ(ə)n/ noun the stopping | sure of which should be made in a financial
of an activity or work statement

41 charity
change machine /tʃeind məʃin/ chargeable transfer /tʃɑd əb(ə)l
change machine chargeable transfer
noun a machine which gives small change trnsf/ noun in the United Kingdom,
for a note or larger coin gifts that are liable to inheritance tax. Under
channel /tʃn(ə)l/ noun a means by
channel
UK legislation, individuals may gift assets
which information or goods pass from one to a certain value during their lifetime with-
place to another out incurring any liability to inheritance tax.
CHAPS /tʃps/ noun an electronic, bank-
CHAPS
These are regular transfers out of income
to-bank payment system that guarantees that do not affect the donor’s standard of liv-
same-day payment. Compare BACS ing. Additionally, individuals may transfer
up to £3,000 a year out of capital.
Chapter 7 /tʃptə sevən/ noun a sec-
Chapter 7
charge account /tʃɑd əkaυnt/ noun

charge account
tion of the US Bankruptcy Reform Act |
1978, which sets out the rules for liquida- US same as credit account (NOTE: The cus-
tion, a choice available to individuals, part- tomer will make regular monthly payments
nerships and corporations into the account and is allowed credit of a
multiple of those payments.)
Chapter 11 /tʃptə ten/ noun a section
Chapter 11
charge and discharge accounting

charge and discharge accounting
of the US Bankruptcy Reform Act 1978,

which allows a corporation to be protected /tʃɑd ən distʃɑd əkaυntiŋ/ noun|
from demands made by its creditors for a formerly, a bookkeeping system in which a
period of time, while it is reorganised with a person charges himself or herself with
view to paying its debts receipts and credits himself or herself with
payments. This system was used extensively
Chapter 13 /tʃptə θrtin/ noun a
Chapter 13
|
in medieval times before the advent of dou-
section of the Bankruptcy Reform Act 1978, ble-entry bookkeeping.
which allows a business to continue trading
charge by way of legal mortgage
charge by way of legal mortgage
and to pay off its creditors by regular

monthly payments over a period of time /tʃɑd bai wei əv li(ə)l mɔid /
noun a way of borrowing money on the
charge /tʃɑd / noun 1. money which
charge
security of a property, where the mortgager

must be paid, or the price of a service 쑗 to signs a deed which gives the mortgagee an
make no charge for delivery 쑗 to make a interest in the property
small charge for rental 쑗 There is no charge
charge card /tʃɑd kɑd/ noun a card
charge card
for this service or No charge is made for this

service. 2. a guarantee of security for a loan, issued to customers by a shop, bank or other
for which assets are pledged 3. a sum organisation, used to charge purchases to an
deducted from revenue in the profit and loss account for later payment. 쒁 credit card
chargee /tʃɑd i/ noun a person who has
chargee
account 쐽 verb 1. to ask someone to pay for |
services later 2. to ask for money to be paid the right to force a debtor to pay
쑗 to charge $5 for delivery 쑗 How much charges forward /tʃɑd iz fɔwəd/
charges forward
does he charge? 왍 he charges £16 an hour plural noun charges which will be paid by
he asks to be paid £16 for an hour’s work 3. the customer
to take something as guarantee for a loan 4. charitable /tʃritəb(ə)l/ adjective bene-
charitable
to record an expense or other deduction fiting the general public as a charity

from revenue in the profit and loss account charitable deductions /tʃritəb(ə)l
charitable deductions
chargeable /tʃɑd əb(ə)l/ adjective able

chargeable
didkʃ(ə)nz/ plural noun deductions from

|
to be charged 쑗 repairs chargeable to the taxable income for contributions to charity

occupier charitable purposes /tʃritəb(ə)l
charitable purposes
chargeable asset /tʃɑd əb(ə)l set/ ppəsiz/ plural noun the purpose of sup-
chargeable asset
noun an asset which will produce a capital porting work done by a charitable organisa-
gain when sold. Assets which are not tion, for which purpose money donated, or
chargeable include your family home, cars, the value of services contributed, may be
and some types of investments such as gov- offset against tax
ernment stocks. charitable trust /tʃritəb(ə)l trst/,
charitable trust
chargeable business asset charitable corporation /tʃritəb(ə)l

chargeable business asset
/tʃɑd əb(ə)l biznis set/ noun an asset kɔpəreiʃ(ə)n/ noun a trust which benefits
|
which is owned by a business and is liable to the public as a whole, which promotes edu-
capital gains if sold cation or religion, which helps the poor or
chargeable
chargeable gains
gains /tʃɑd əb(ə)l which does other useful work

einz/ plural noun gains made by selling an charity /tʃriti/ noun an organisation
charity
asset such as shares, on which capital gains which offers free help or services to those in
will be charged need 쑗 Because the organisation is a charity

charity accounts 42
it does not have to pay taxes. 쑗 The charity institjut əv pblik fainns ən ə |
owes its success to clever marketing strate- kaυntənsi/ full form of CIPFA
gies in its fund-raising. Chartered Institute of Taxation
Chartered Institute of Taxation
charity accounts /tʃriti əkaυnts/ /tʃɑtəd institjut əv tkseiʃ(ə)n/

charity accounts
| |
plural noun the accounting records of a char- noun in the United Kingdom, an organisa-
itable institution, that include a statement of tion for professionals in the field of taxation,
financial activities rather than a profit and formerly the Institute of Taxation
loss account. In the United Kingdom, the charting /tʃɑtiŋ/ noun the work of using
charting
accounts should conform to the require- charts to analyse information such as stock
ments stipulated in the Charities Act (1993). market trends and forecast future rises or
Charity Commissioners /tʃriti kə
Charity Commissioners
| falls
miʃ(ə)nəz/ plural noun the UK body which chart of accounts /tʃɑt əv əkaυnts/
chart of accounts
governs charities and sees that they follow noun a detailed and ordered list of an organ-
the law and use their funds for the purposes isation’s numbered or named accounts, pro-
intended viding a standard list of account codes for
chart /tʃɑt/ noun a diagram displaying
chart
assets, liabilities, capital, revenue and
information as a series of lines, blocks, etc. expenses
charter /tʃɑtə/ noun 1. a document giv-
charter
chattel mortgage /tʃt(ə)l mɔid /
chattel mortgage
ing special legal rights to a group 쑗 a shop- noun money lent against the security of an
pers’ charter or a customers’ charter 2. US item purchased, but not against real estate
in the US, a formal document incorporating chattels real /tʃt(ə)lz riəl/ plural noun
chattels real
an organisation, company or educational leaseholds

institution cheap money /tʃip mni/ noun money
cheap money
chartered /tʃɑtəd/ adjective 1. in the which can be borrowed at a low rate of inter-
chartered
UK, used to describe a company which has est

been set up by charter, and not registered cheat /tʃit/ verb to trick someone so that
cheat
under the Companies Act 쑗 a chartered he or she loses money 쑗 He cheated the
bank 2. in the US, used to describe an incor- Inland Revenue out of thousands of pounds.
porated organisation, company or educa- 쑗 She was accused of cheating clients who
tional institution that has been set up by came to ask her for advice.
charter check /tʃek/ verb 1. to stop or delay some-
check
chartered accountant /tʃɑtəd ə thing 쑗 to check the entry of contraband into

chartered accountant
kaυntənt/ noun an accountant who has the country 쑗 to check the flow of money out
passed the necessary professional examina- of a country 2. to examine or to investigate
tions and is a member of the Institute of something 쑗 to check that an invoice is cor-
Chartered Accountants. Abbreviation CA rect 쑗 to check and sign for goods 왍 she
Chartered Association of Certified
Chartered Association of Certified Accountants
checked the computer printout against
Accountants /tʃɑtəd əsəυsieiʃ(ə)n | the invoices she examined the printout and
əv stifaid əkaυntənts/ noun the former| the invoices to see if the figures were the
name of the Association of Chartered Certi- same 3. US to mark something with a sign to
fied Accountants show that it is correct 쑗 check the box
chartered bank /tʃɑtəd bŋk/ noun a
chartered bank
marked ‘R’ (NOTE: The UK term is tick.)
checkable /tʃekəb(ə)l/ adjective US
checkable
bank which has been set up by government

charter, formerly used in England, but now referring to a deposit account on which
only done in the USA and Canada checks can be drawn
chartered
chartered company
company /tʃɑtəd checkbook /tʃekbυk/ noun US same as

checkbook
kmp(ə)ni/ noun a company which has cheque book

been set up by royal charter, and not regis- check card /tʃek kɑd/ noun US same as
check card
tered under the Companies Act cheque card

Chartered Institute of Management
Chartered Institute of Management Accountants
checking account /tʃekiŋ əkaυnt/
checking account
Accountants /tʃɑtəd institju əv noun US same as current account 1

mnid mənt əkaυntənts/ noun a UK | check routing symbol /tʃek rutiŋ
check routing symbol
organisation responsible for the education simbəl/ noun US a number shown on a US

and training of management accountants cheque which identifies the Federal Reserve
who work in industry, commerce, not-for- district through which the cheque will be
profit and public sector organisations cleared, similar to the UK ‘bank sort code’
Chartered Institute of Public cheque /tʃek/ noun a note to a bank asking
Chartered Institute of Public Finance and Accountancy cheque
Finance and Accountancy /tʃɑtəd them to pay money from your account to the

43 claim
account of the person whose name is written acknowledged, paid or that payment has
on the note 쑗 a cheque for £10 or a £10 been received
cheque (NOTE: The US spelling is check.) chose /tʃəυz/ phrase a French word
chose
cheque account /tʃek əkaυnt/ noun

cheque account
| meaning ‘item’ or ‘thing’

same as current account chose in action /tʃəυz in kʃən/ noun
chose in action
cheque book /tʃek bυk/ noun a booklet

cheque book
the legal term for a personal right which can

with new blank cheques (NOTE: The usual be enforced or claimed as if it were property,
US term is checkbook.) e.g. a patent, copyright or debt
cheque card /tʃek kɑd/, cheque guar-
cheque card
chose in possession /tʃəυz in pə

chose in possession
antee card /tʃek rənti kɑd/ noun a

|
zeʃ(ə)n/ the legal term for a physical thing
plastic card from a bank which guarantees which can be owned, such as a piece of fur-
payment of a cheque up to some amount, niture
even if the user has no money in his account Christmas bonus /krisməs bəυnəs/
Christmas bonus
cheque requisition /tʃek

cheque requisition
noun an extra payment made to staff at

rekwiziʃ(ə)n/ noun an official note from a Christmas
department to the company accounts staff chronological order /krɒnəlɒd ik(ə)l
chronological order
asking for a cheque to be written ɔdə/ noun the arrangement of records such
cheque stub /tʃek stb/ noun a piece of
cheque stub
as files and invoices in order of their dates

paper left in a cheque book after a cheque CICA abbreviation Canadian Institute of
CICA
has been written and taken out Chartered Accountants

cheque to bearer /tʃek tə beərə/ noun
cheque to bearer
CIMA /simə/ abbreviation Chartered

CIMA
a cheque with no name written on it, so that Institute of Management Accountants

the person who holds it can cash it
CIPFA noun a leading professional
CIPFA
chief executive /tʃif izekjυtiv/,

chief executive
chief executive officer /tʃif izekjυtiv |

accountancy body in the UK, specialising in
ɒfisə/ noun the most important director in the public services. Full form Chartered
Institute of Public Finance and Account-
charge of a company. Abbreviation CEO
ancy
chief financial officer /tʃif fai
chief financial officer
circularisation of debtors
| circularisation of debtors
nnʃəl ɒfisə/ noun an executive in charge

of a company’s financial operations, report- /skjυləraizeiʃ(ə)n əv detəz/ noun the
ing to the CEO. Abbreviation CFO sending of letters by a company’s auditors to
debtors in order to verify the existence and
chief investment officer /tʃif in
chief investment officer
|
extent of the company’s assets
vestmənt ɒfisə/ noun a senior manager
circular letter of credit /skjυlə
circular letter of credit
responsible for monitoring a company’s

investment portfolio letər əv kredit/ noun a letter of credit sent
to all branches of the bank which issues it
chief operating officer /tʃif
chief operating officer
circulating capital /skjυleitiŋ

circulating capital
ɒpəreitiŋ ɒfisə/ noun a director in charge

of all a company’s operations (same as a kpit(ə)l/ noun capital in the form of cash
‘managing director’). Abbreviation COO or debtors, raw materials, finished products
Chief Secretary to the Treasury
Chief Secretary to the Treasury and work in progress which a company
/tʃif sekrətri tə ðə tre (ə)ri/ noun a
requires to carry on its business
circulation of capital /skjυleiʃ(ə)n
circulation of capital
government minister responsible to the

Chancellor of the Exchequer for the control əv kpit(ə)l/ noun a movement of capital
of public expenditure (NOTE: In the USA, from one investment to another
City Panel on Takeovers and Merg-
City Panel on Takeovers and Mergers
this is the responsibility of the Director of

the Budget.) ers /siti pn(ə)l ɒn teikəυvəz ən
Chinese walls /tʃainiz wɔlz/ plural
Chinese walls
md əz/ noun same as Takeover Panel
civil action /siv(ə)l kʃən/ noun a court
civil action
noun imaginary barriers between depart-

ments in the same organisation, set up to case brought by a person or a company
avoid insider dealing or conflict of interest. against someone who has done them wrong
For example, if a merchant bank is advising claim /kleim/ noun an act of asking for
claim
on a planned takeover bid, its investment something that you feel you have a right to
department should not know that the bid is 쐽 verb 1. to ask for money, especially from
taking place, or they would advise their cli- an insurance company 쑗 He claimed
ents to invest in the company being taken £100,000 damages against the cleaning
over. firm. 쑗 She claimed for repairs to the car
chop /tʃɒp/ noun a mark made on a docu- against her insurance policy. 2. to say that
chop
ment to show that it has been agreed, you have a right to something or that some-

claim form 44
thing is your property 쑗 She is claiming pos- clawback /klɔbk/ noun 1. money taken
clawback
session of the house. 쑗 No one claimed the back, especially money taken back by the
umbrella found in my office. 3. to state that government from grants or tax concessions
something is a fact 쑗 He claims he never which had previously been made 2. the allo-
received the goods. 쑗 She claims that the cation of new shares to existing sharehold-
shares are her property. ers, so as to maintain the value of their hold-
claim form /kleim fɔm/ noun a form
claim form
ings
which has to be filled in when making an clean float /klin fləυt/ noun an act of
clean float
insurance claim floating a currency freely on the interna-

claims department /kleimz di
claims department
|
tional markets, without any interference
pɑtmənt/ noun a department of an insur- from the government
clean opinion /klin əpinjən/, clean
clean opinion
ance company which deals with claims |
claims manager /kleimz mnid ə/

claims manager
report /klin ripɔt/ noun an auditor’s |
noun the manager of a claims department report that is not qualified

clearance certificate /kliərəns sə
clearance certificate
classical system of corporation tax

classical system of corporation tax
|
/klsik(ə)l sistəm əv kɔpəreiʃ(ə)n |

tifikət/ noun a document showing that
tks/ noun a system in which companies goods have been passed by customs
clearance sale /kliərəns seil/ noun a
clearance sale
and their owners are liable for corporation

tax as separate entities. A company’s taxed sale of items at low prices to get rid of stock
income is therefore paid out to shareholders clearing /kliəriŋ/ noun 1. 왍 clearing of a
clearing
who are in turn taxed again. This system debt paying all of a debt 2. 왍 clearing of
operates in the United States and the Nether- goods through customs passing of goods
lands. It was replaced in the United King- through customs 3. an act of passing of a
dom in 1973 by an imputation system. cheque through the banking system, trans-
classification of assets ferring money from one account to another
classification of assets
/klsifikeiʃ(ə)n əv sets/ noun the proc- clearing account /kliəriŋ əkaυnt/

clearing account
ess of listing a company’s assets under noun a temporary account containing

appropriate categories amounts to be transferred to other accounts
classification of
classification of liabilities
liabilities at a later date

/klsifikeiʃ(ə)n əv laiəbilitiz/ noun the
| clearing agency /kliəriŋ eid ənsi/
clearing agency
process of classifying liabilities by the date noun US central office where stock
or period when they are due exchange or commodity exchange transac-
classified stock /klsifaid stɒk/ noun
classified stock
tions are settled (NOTE: The UK term is
a company’s common stock when it is clearing house.)
divided into categories clearing bank /kliəriŋ bŋk/ noun a
clearing bank
classify /klsifai/ verb to put into classes

classify
bank which clears cheques, especially one
or categories according to specific charac- of the major UK High Street banks, special-
teristics (NOTE: classifies – classifying – ising in usual banking business for ordinary
classified) customers, such as loans, cheques, over-
class of assets /klɑs əv sets/ noun
class of assets
drafts and interest-bearing deposits
clearing house /kliəriŋ haυs/ noun a
clearing house
the grouping of similar assets into catego-

ries. This is done because under Interna- central office where clearing banks
tional Accounting Standards Committee exchange cheques, or where stock exchange
rules, tangible assets and intangible assets or commodity exchange transactions are set-
cannot be revalued on an individual basis, tled
only for a class of assets. Clearing House Automated Pay-
Clearing House Automated Payments System
clause /klɔz/ noun a section of a contract

clause
ments System /kliəriŋ haυs
쑗 There are ten clauses in the contract of ɔtəmeitid peimənts sistəm/ noun full
employment. 쑗 There is a clause in this conform of CHAPS
tract concerning the employer’s right to dis- clearing system /kliəriŋ sistəm/ noun
clearing system
miss an employee. 쐽 verb to list details of the system of processing payments using
the relevant parties to a bill of exchange phone and internet, operated in the UK by
claw back /klɔ bk/ verb to take back
claw back
the Association for Payment Clearing Serv-
money which has been allocated 쑗 Income ices, an organisation owned by 39 major
tax claws back 25% of pensions paid out by banks and building societies
the government. 쑗 Of the £1m allocated to clear profit /kliə prɒfit/ noun a profit
clear profit
the project, the government clawed back after all expenses have been paid 쑗 We made
£100,000 in taxes. $6,000 clear profit on the deal.

45 co-creditor
clerical error /klerik(ə)l erə/ noun a closely held /kləυsli held/ adjective
clerical error closely held
mistake made by someone doing office work referring to shares in a company which are
client /klaiənt/ noun a person with whom
client
controlled by only a few shareholders
business is done or who pays for a service 쑗 close off /kləυz ɒf/ verb to come to the
close off
One of our major clients has defaulted on end of an accounting period and make up the
her payments. profit and loss account
client account /klaiənt əkaυnt/ noun a closing /kləυziŋ/ adjective 1. final or
client account closing
bank account opened by a solicitor or estate coming at the end 2. at the end of an
agent to hold money on behalf of a client accounting period 쑗 At the end of the quar-
clientele /kliɒntel/ noun all the clients
clientele
ter the bookkeeper has to calculate the clos-
ing balance. 쐽 noun 왍 the closing of an
|
of a business or all the customers of a shop

close /kləυz/ verb 1. 왍 to close the
close account the act of stopping supply to a cus-
accounts to come to the end of an account- tomer on credit
closing balance /kləυziŋ bləns/
closing balance
ing period and make up the profit and loss

account 2. to bring something to an end 왍 noun the balance at the end of an accounting
she closed her building society account period
closing-down sale /kləυziŋ daυn
closing-down sale
she took all the money out and stopped using

the account seil/ noun the sale of goods when a shop is
close company /kləυs kmp(ə)ni/
close company
closing for ever
closing entries /kləυziŋ entriz/ noun
closing entries
noun a privately owned company controlled

by a few shareholders (in the UK, fewer than in a double-entry bookkeeping system,
five) where the public may own a small entries made at the very end of an account-
number of the shares (NOTE: The US term is ing period to balance the expense and reve-
close corporation or closed corpora- nue ledgers
tion.) closing out /kləυziŋ aυt/ noun US the
closing out
closed economy /kləυzd ikɒnəmi/

closed economy
| act of selling goods cheaply to try to get rid

noun a type of economy where trade and of them
financial dealings are tightly controlled by closing rate /kləυziŋ reit/ noun the
closing rate
the government exchange rate of two or more currencies at

closed-end credit /kləυzd end kredit/
closed-end credit
the close of business of a balance sheet date,

noun a loan, plus any interest and finance e.g. at the end of the financial year
charges, that is to be repaid in full by a spec- closing-rate method /kləυziŋ reit
closing-rate method
ified future date. Loans that have property or meθəd/ noun a technique for translating the
motor vehicles as collateral are usually figures from a set of financial statements
closed-end. 쒁 revolving credit (NOTE: Most into a different currency using the closing
loans for the purchase of property or motor rate. This method is often used for the
vehicles are closed-end credits.) accounts of a foreign subsidiary of a parent
closed-end fund /kləυzd end fnd/
closed-end fund
company.
noun an investment fund shares in which closing stock /kləυziŋ stɒk/ noun a
closing stock
can only be bought and sold on the open business’s remaining stock at the end of an
market accounting period. It includes finished prod-
closed fund /kləυzd fnd/ noun a fund,
closed fund
ucts, raw materials, or work in progress and

such as an investment trust, where the inves- is deducted from the period’s costs in the
tor buys shares in the trust and receives div- balance sheets. 쑗 At the end of the month the
idends. This is as opposed to an open-ended closing stock was 10% higher than at the
trust, such as a unit trust, where the investor end of the previous month.
buys units, and the investment is used to pur- closure /kləυ ə/ noun the act of closing
closure
chase further securities for the trust.

C/N abbreviation credit note
C/N
closed market /kləυzd mɑkit/ noun a

closed market
CNCC abbreviation Compagnie Nationale

CNCC
market where a supplier deals only with one

agent or distributor and does not supply any des Commissaires aux Comptes
co- /kəυ/ prefix working or acting together
co-
others direct 쑗 They signed a closed-market

CoCoA abbreviation continuously contem-
CoCoA
agreement with an Egyptian company.

close-ended /kləυs endid/, closed-
close-ended
porary accounting
co-creditor /kəυ kreditə/ noun a person
co-creditor
end /kləυzd end/ adjective referring to an

investment which has a fixed capital, such as who is a creditor of the same company as
an investment trust you are

code 46
code /kəυd/ noun 1. a system of signs, collecting agency /kəlektiŋ eid ənsi/
code collecting agency
numbers, or letters which mean something noun an agency which collects money owed
2. a set of rules to other companies for a commission
collecting bank /kəlektiŋ bŋk/ noun
collecting bank
code of practice /kəυd əv prktis/

code of practice
noun 1. rules drawn up by an association a bank into which a person has deposited a
which the members must follow when doing cheque, and which has the duty to collect the
business 2. the formally established ways in money from the account of the writer of the
which members of a profession agree to cheque
work 쑗 Advertisers have agreed to abide by collection period /kəlekʃən piəriəd/
collection period
the code of practice set out by the advertis- noun the number of days it takes a company
ing council. to collect money owing
codicil /kəυdisil/ noun a document exe- collection ratio /kəlekʃən reiʃiəυ/
codicil collection ratio
cuted in the same way as a will, making noun the average number of days it takes a
additions or changes to an existing will firm to convert its accounts receivable into
coding /kəυdiŋ/ noun the act of putting a
coding
cash. Also known as days’ sales outstand-
code on something 쑗 the coding of invoices ing
collections /kəlekʃənz/ plural noun
collections
coding of accounts /kəυdiŋ əv ə

coding of accounts
|
|
kaυnts/ noun the practice of assigning money which has been collected
collective investment /kəlektiv in
collective investment
codes to the individual accounts that make | |
up the accounting system of a large com- vestmənt/ noun the practice of investing
pany money with other individuals or organisa-
co-director /kəυ dairektə/ noun a per-
co-director
|
tions in order to share costs and risk
collector /kəlektə/ noun a person who
collector
son who is a director of the same company |
as you makes people pay money which is owed 쑗

He works as a debt collector.
coefficient of variation /kəυifiʃ(ə)nt
coefficient of variation
column /kɒləm/ noun a series of numbers

column
əv veərieiʃ(ə)n/ noun a measure of the

|
spread of statistical data, which is equal to arranged one underneath the other 쑗 to add
the standard deviation multiplied by 100 up a column of figures 쑗 Put the total at the
bottom of the column.
co-financing /kəυ fainnsiŋ/ noun the
co-financing
combined financial statement /kəm

combined financial statement
act of arranging finance for a project from a |
series of sources baind fainnʃəl steitmənt/ noun a

|
written record covering the assets, liabili-

cold start /kəυld stɑt/ noun the act of
cold start
ties, net worth and operating statement of

beginning a new business or opening a new two or more related or affiliated companies
shop with no previous turnover to base it on
comfort letter /kmfət letə/ noun 1. in
comfort letter
collateral /kəlt(ə)rəl/ noun a security,

collateral
|
the United States, an accountant’s statement
such as negotiable instruments, shares or confirming that the unaudited financial
goods, used to provide a guarantee for a loan information in a prospectus follows GAAP
‘…examiners have come to inspect the 2. a letter from a parent company to a lender
collateral that thrifts may use in borrowing assuring the lender that a subsidiary com-
from the Fed’ [Wall Street Journal] pany that has applied for a loan will be sup-
collateralisation
collateralisation
/kəlt(ə)rəlai | |
ported by the parent in its efforts to stay in
zeiʃ(ə)n/ noun the act of securing a debt by business
selling long-term receivables to another command economy /kəmɑnd i
command economy
| |
company which secures them on the debts kɒnəmi/ noun same as planned economy
collateralise /kəlt(ə)rəlaiz/, collater- commerce /kɒms/ noun the buying
collateralise commerce
alize verb to secure a debt by means of a col- and selling of goods and services
lateral commercial /kəmʃ(ə)l/ adjective 1.
commercial
collect /kəlekt/ verb 1. to get money

collect
| referring to business 2. profitable

which is owed to you by making the person commercial bank /kəmʃ(ə)l bŋk/
commercial bank
who owes it pay 2. to take things away from noun a bank which offers banking services
a place 쑗 We have to collect the stock from to the public, as opposed to a merchant bank
the warehouse. 쐽 adverb, adjective used to commercial bill /kəmʃ(ə)l bil/ noun
commercial bill
describe a phone call which the person a bill of exchange issued by a company (a
receiving the call agrees to pay for trade bill) or accepted by a bank (a bank
collectibility /kəlektibiliti/ noun ability
collectibility
| | bill), as opposed to a Treasury bill, which is

of cash owed to be collected issued by the government

47 committee
commercial directory /kəmʃ(ə)l dai Commissioner of the Inland Reve-
commercial directory Commissioner of the Inland Revenue
| |
rekt(ə)ri/ noun a book which lists all the nue /kəmiʃ(ə)nəz əv θi inlənd |
businesses and business people in a town revənju/ noun same as Appeals Com-
commercial
commercial failure
failure /kəmʃ(ə)l |
missioner
commission house /kəmiʃ(ə)n haυs/
commission house
feiljə/ noun financial collapse or bank- |
ruptcy noun a firm which buys or sells for clients,

commercial law /kəmʃ(ə)l lɔ/ noun
commercial law
|
and charges a commission for this service
commission rep /kəmiʃ(ə)n rep/ noun
commission rep
the laws regarding the conduct of businesses |
commercial lawyer /kəmʃ(ə)l lɔjə/

commercial lawyer
|
a representative who is not paid a salary but
noun a person who specialises in company receives a commission on sales
commit /kəmit/ verb 왍 to commit your-
commit
law or who advises companies on legal |
problems self to to guarantee something, especially a

commercial loan /kəmʃ(ə)l ləυn/
commercial loan
|
loan issue, or to guarantee to do something
commitment /kəmitmənt/ noun some-
commitment
noun a short-term renewable loan or line of |
credit used to finance the seasonal or cycli- thing which you have agreed to do 쑗 to make
cal working capital needs of a company a commitment or to enter into a commitment
commercially /kəmʃ(ə)li/ adverb 1.
commercially
|
to do something 쑗 The company has a com-
for the purpose of making a profit 2. in the mitment to provide a cheap service.
commitment document /kəmitmənt
commitment document
operation of a business |
commercial paper /kəmʃ(ə)l peipə/

commercial paper dɒkjυmənt/ noun a contract, change order,
purchase order or letter of intent which deals
|
noun an IOU issued by a company to raise a

short-term loan. Abbreviation CP with the supply of goods and services and
commits an organisation to legal, financial
commercial property /kəmʃ(ə)l
commercial property
|
and other obligations
prɒpəti/ noun a building, or buildings, commitment fee /kəmitmənt fi/ noun
commitment fee
used as offices or shops a fee paid to a bank which has arranged a

commercial report /kəmʃ(ə)l ri
commercial report
| |
line of credit which has not been fully used
pɔt/ noun an investigative report made by commitments basis /kəmitmənts
commitments basis
an organisation such as a credit bureau that beisis/ noun the method of recording the
specialises in obtaining information regard- expenditure of a public sector organisation
ing a person or organisation applying for at the time when it commits itself to it rather
something such as credit or employment than when it actually pays for it
commercial substance /kəmʃ(ə)l
commercial substance
commitments for capital expendi-

commitments for capital expenditure
|
sbstəns/ noun the economic reality that ture /kəmitmənts fə kpit(ə)l ik

| |
underlies a transaction or arrangement, spenditʃə/ plural noun the amount a com-

regardless of its legal or technical denomi- pany has committed to spend on fixed assets
nation. For example, a company may sell an in the future. In the United Kingdom, com-
office block and then immediately lease it panies are legally obliged to disclose this
back: the commercial substance may be that amount, and any additional commitments, in
it has not been sold. their annual report.
commercial year /kəmʃ(ə)l jiə/
commercial year
committed credit lines /kəmitid

committed credit lines
|
|
noun an artificial year treated as having 12 kredit lainz/ plural noun a bank’s agree-
months of 30 days each, used for calculating ment to provide a loan on the borrower’s
such things as monthly sales data and inven- request, with a fee paid by the borrower for
tory levels any undrawn portion of the agreed loan
commission /kəmiʃ(ə)n/ noun 1. money
commission
Committee of European Securities

Committee of European Securities Regulators
|
paid to a salesperson or agent, usually a per- Regulators /kəmiti əv jυərəpiən si | |
centage of the sales made 쑗 She gets 10% kjυəritiz rejυleitəz/ noun an independ-
commission on everything she sells. 쑗 He is ent organisation of securities regulators
paid on a commission basis. 2. a group of established to promote consistent supervi-
people officially appointed to examine some sion of the European market for financial
problem 쑗 He is the chairman of the govern- services
ment commission on export subsidies. Committee on Accounting Proce-
committee
commission agent /kəmiʃ(ə)n

commission agent
|
dure /kəmiti ɒn əkaυntiŋ prəsid ə/
| | |
eid ənt/ noun an agent who is paid a per- noun in the United States, a committee of
centage of sales the American Institute of Certified Public
commissioner /kəmiʃ(ə)nə/ noun an
commissioner
| Accountants that was responsible between

ombudsman 1939 and 1959 for issuing accounting prin-

commodity 48
ciples, some of which are still part of the company car /kmp(ə)ni kɑ/ noun a
company car
Generally Accepted Accounting Principles car which belongs to a company and is lent
commodity /kəmɒditi/ noun something
commodity
|
to an employee to use for business or other
sold in very large quantities, especially a purposes
raw material such as a metal or a food such company director /kmp(ə)ni dai
company director
as wheat rektə/ noun a person appointed by the

commodity exchange /kəmɒditi iks
commodity exchange
| |
shareholders to help run a company
tʃeind / noun a place where commodities company flat /kmp(ə)ni flt/ noun a
company flat
are bought and sold flat owned by a company and used by mem-
commodity
commodity futures
futures /kəmɒditi | bers of staff from time to time (NOTE: The

fjutʃəz/ plural noun commodities traded US term is company apartment.)
for delivery at a later date 쑗 Silver rose 5% company law /kmp(ə)ni lɔ/ noun
company law
on the commodity futures market yesterday. laws which refer to the way companies work
commodity market /kəmɒditi
commodity market
company pension scheme

company pension scheme
|
mɑkit/ noun a place where people buy and /kmp(ə)ni penʃən skim/ noun same as
sell commodities occupational pension scheme 쑗 She
commodity trader /kəmɒditi treidə/ decided to join the company’s pension
commodity trader
noun a person whose business is buying and scheme.

selling commodities company promoter /kmp(ə)ni prə
company promoter
common cost /kɒmən kɒst/ noun a məυtə/ noun a person who organises the
common cost
cost which is apportioned to two or more setting up of a new company

cost centres company
company registrar
registrar /kmp(ə)ni
common ownership /kɒmən
common ownership
red istrɑ/ noun the person who keeps the

əυnəʃip/ noun a situation where a business share register of a company
is owned by the employees who work in it company reserves /kmp(ə)ni ri
company reserves
common pricing /kɒmən praisiŋ/

common pricing
zvz/ plural noun same as revenue

noun the illegal fixing of prices by several reserves
businesses so that they all charge the same company
company secretary
secretary /kmp(ə)ni
price sekrit(ə)ri/ noun a person who is responsi-
common stock /kɒmən stɒk/ noun US
common stock
ble for a company’s legal and financial

same as ordinary shares affairs
Compagnie Nationale des Commis-
Compagnie Nationale des Commissaires aux Comptes
comparability /kɒmp(ə)rəbiliti/ noun

comparability
saires aux Comptes /kɒmpni the extent to which accurate comparisons

nʃənɑl dei kɒmiseəz əυ kɒmt/ noun can be made of the financial status of differ-
in France, an organisation that regulates ent companies, based on similarities in their
external audit. Abbreviation CNCC accounting procedures, measurement con-
Companies House /kmpəniz haυs/
Companies House
cepts and other features
noun an official organisation where the comparative balance sheet /kəm
comparative balance sheet
records of companies must be deposited, so prətiv bləns ʃit/ noun one of two or
that they can be inspected by the public. The more financial statements prepared on dif-
official name is the ‘Companies Registration ferent dates that lend themselves to a com-
Office’. parative analysis of the financial condition
Companies Registration Office of an organisation
Companies Registration Office
/kmp(ə)niz red istreiʃ(ə)n ɒfis/ noun |

comparative statements
comparative statements
/kəm |
an office of the Registrar of Companies, the prətiv steitmənts/ plural noun finan-
official organisation where the records of cial statements which cover different
companies must be deposited, so that they accounting periods, usually the previous
can be inspected by the public. Abbreviation accounting period, but which are prepared in
CRO. Also called Companies House the same way and therefore allow informa-
company /kmp(ə)ni/ noun a business tion to be fairly compared
company
organisation, a group of people organised to compensate /kɒmpənseit/ verb to give

compensate
buy, sell, or provide a service, usually for someone money to make up for a loss or
profit injury 쑗 In this case we will compensate a
company auditor /kmp(ə)ni ɔditə/ manager for loss of commission. 쑗 The com-
company auditor
noun the individual or firm of accountants a pany will compensate the employee for the
company appoints to audit its annual burns suffered in the accident. (NOTE: You
accounts compensate someone for something.)

49 compliance test
compensating
compensating balance
balance tries to retain its market share’ [Citizen

/kɒmpənseitiŋ bləns/ noun the amount (Ottawa)]
of money which a customer has to keep in a competitive devaluation /kəmpetitiv
competitive devaluation
bank account in order to get free services divljueiʃ(ə)n/ noun a devaluation of a

|
from the bank currency to make a country’s goods more

compensating errors /kɒmpənseitiŋ competitive on the international markets
compensating errors
erəz/ plural noun two or more errors which competitive pricing /kəmpetitiv
competitive pricing
are set against each other so that the praisiŋ/ noun the practice of putting low
accounts still balance prices on goods so as to compete with other
compensation /kɒmpənseiʃ(ə)n/
compensation
| products
noun 1. 왍 compensation for damage pay- competitor /kəmpetitə/ noun a person
competitor
ment for damage done 왍 compensation for

|
or company that is competing with another

loss of office payment to a director who is 쑗 Two German firms are our main competi-
asked to leave a company before their con- tors.
tract ends 왍 compensation for loss of earn- ‘…sterling labour costs continue to rise
ings payment to someone who has stopped between 3% and 5% a year faster than in
earning money or who is not able to earn most of our competitor countries’ [Sunday
money 2. US a salary Times]
‘…compensation can also be via the mag- complete /kəmplit/ verb to sign a con-
complete
istrates courts for relatively minor injuries’ tract for the sale of a property and to
[Personnel Management] exchange it with the other party, so making
compensation deal /kɒmpənseiʃ(ə)n
compensation deal
|
it legal
dil/ noun a deal where an exporter is paid completed contract method /kəm
completed contract method
(at least in part) in goods from the country to plitid kɒntrkt meθəd/ noun a way of
which he or she is exporting accounting for a particular contractual obli-
compensation fund /kɒmpənseiʃ(ə)n
compensation fund
|
gation, e.g., a long-term construction
fnd/ noun a fund operated by the Stock project, whereby the profit is not recorded
Exchange to compensate investors for losses until the final completion of the project,
suffered when members of the Stock even if there has been some revenue while
Exchange default the project was still in progress
compensation package /kɒmpən
compensation package
completion date /kəmpliʃ(ə)n deit/

completion date
|
|
seiʃ(ə)n pkid / noun the salary, pension noun a date when something will be finished
and other benefits offered with a job
compliance /kəmplaiəns/ noun agree-
compliance
‘…golden parachutes are liberal compen- ment to do what is ordered

sation packages given to executives leav-
compliance audit /kəmplaiəns ɔdit/
compliance audit
ing a company’ [Publishers Weekly] |
noun an audit of business activities carried

compete /kəmpit/ verb 왍 to compete
compete
|
out to determine whether performance
with someone or with a company to try to matches contractual, regulatory or statutory
do better than another person or another requirements
company 쑗 We have to compete with cheap
compliance costs /kəmplaiəns kɒsts/
compliance costs
imports from the Far East. 쑗 They were |
competing unsuccessfully with local compa- plural noun expenses incurred as a result of
nies on their home territory. 왍 the two com- meeting legal requirements, e.g., for safety
panies are competing for a market share requirements or to comply with company
or for a contract each company is trying to law
compliance department /kəmplaiəns
compliance department
win a larger part of the market, trying to win |
the contract dipɑtmənt/ noun a department which

|
competition /kɒmpətiʃ(ə)n/ noun a sit-

competition
|
ensures that the company is adhering to any
uation where companies or individuals are relevant regulations, such as FSA regula-
trying to do better than others, e.g. trying to tions
compliance officer /kəmplaiəns
compliance officer
win a larger share of the market, or to pro- |
duce a better or cheaper product or to control ɒfisə/ noun an employee of a financial

the use of resources organisation whose job is to make sure that
‘…profit margins in the industries most the organisation complies with the regula-
exposed to foreign competition are worse tions governing its business
than usual’ [Sunday Times] compliance test /kəmplaiəns test/
compliance test
‘…competition is steadily increasing and noun any of various audit procedures fol-
could affect profit margins as the company lowed to ensure that accounting procedures

composition 50
within a company are reasonable and com- National Audit Office who reports back to
ply with regulations Parliament on the audit of government
composition /kɒmpəziʃ(ə)n/ noun an
composition
|
departments
agreement between a debtor and creditors, compulsory annuity /kəmplsəri ə
compulsory annuity
| |
where the debtor settles a debt by repaying njuiti/ noun in the United Kingdom, the
only part of it legal requirement that at least 75% of the
compound /kəmpaυnd/ verb 1. to agree
compound
|
funds built-up in a personal pension plan
with creditors to settle a debt by paying part have to be used to purchase an annuity by
of what is owed 2. to add to 쑗 The interest is the age of 75
compulsory liquidation /kəmplsəri
compulsory liquidation
compounded daily. |
compound discount /kɒmpaυnd

compound discount
likwideiʃ(ə)n/ noun same as compul-
|
diskaυnt/ noun the difference between the sory winding up

compulsory purchase /kəmplsəri
compulsory purchase
nominal amount of a particular sum in the |
future and its present discounted value. So, ptʃis/ noun the purchase of an annuity
if £150 in a year’s time is worth £142 now, with the fund built up in a personal pension
the compound discount is £8. scheme
compounding period /kɒmpaυndiŋ compulsory winding up /kəmplsəri
compounding period compulsory winding up
piəriəd/ noun the period over which com- waindiŋ p/ noun liquidation which is
pound interest is calculated ordered by a court
compound interest /kɒmpaυnd compulsory winding up order /kəm
compound interest compulsory winding up order
intrəst/ noun interest which is added to the plsəri waindiŋ p ɔdə/ noun an order
capital and then earns interest itself from a court saying that a company must be
compound journal entry /kɒmpaυnd
compound journal entry
wound up
computable /kəmpjutəb(ə)l/ adjective
computable
d n(ə)l entri/ noun an entry in a journal |
that comprises more than individual equally possible to calculate

matched debit and credit items computation /kɒmpjυteiʃ(ə)n/ noun a
computation
comprehensive
comprehensive income
income calculation
/kɒmprihensiv inkm/ noun a com- computational error
computational error
pany’s total income for a given accounting /kɒmpjυteiʃ(ə)nəl erə/ noun a mistake
period, taking into account all gains and made in calculating
losses, not only those included in a normal compute /kəmpjut/ verb to calculate, to
compute
income statement. In the United States, do calculations

comprehensive income must be declared computerise /kəmpjutəraiz/, compu-
computerise
whereas in the United Kingdom it appears in terize verb to change something from a
the statement of total recognised gains and manual system to one using computers 쑗 We
losses. have computerised all our records. 쑗 Stock
comprehensive insurance
comprehensive insurance
control is now completely computerised.

/kɒmprihensiv inʃυərəns/, comprehen- |
concealment of assets /kənsilmənt
concealment of assets
sive policy /kɒmprihensiv pɒlisi/ noun əv sets/ noun the act of hiding assets so
an insurance policy which covers you that creditors do not know they exist
against all risks which are likely to happen concept /kɒnsept/ noun an idea 왍 con-
concept
comprehensive tax allocation

comprehensive tax allocation
cept of capital maintenance the idea that

/kɒmprihensiv tks ləkeiʃ(ə)n/ noun profit is only recorded if the capital of the
the setting aside of money to cover deferred company, measured in terms of its net assets,
tax increases during an accounting period.
compromise /kɒmprəmaiz/ noun an
compromise
Assets can be measured at historical cost or

agreement between two sides, where each in units of constant purchasing power. 왍
side gives way a little 쑗 Management concept of maintenance of operating
offered £5 an hour, the union asked for £9, capacity the concept of capital maintenance
and a compromise of £7.50 was reached. 쐽 measured in terms of the changes in the cur-
verb to reach an agreement by giving way a rent values of fixed assets, stock and work-
little 쑗 She asked £15 for it, I offered £7 and ing capital. Profit can only be taken if the
we compromised on £10. total value of these assets, called the ‘net
comptroller /kəntrəυlə/ noun a financial
comptroller
| operating assets’, including adjustments for

controller changes in prices affecting these assets,
Comptroller and Auditor General
Comptroller and Auditor General
increases during an accounting period.
/kəntrəυlə ənd ɔditə d en(ə)rəl/ noun conceptual framework /kənseptʃuəl
conceptual framework
| |
in the United Kingdom, the head of the freimwk/ noun a set of theoretical prin-

51 consignment
ciples that underlies the practice and regula- firm may profit personally from decisions
tion of financial accounting. In the United taken in an official capacity
States, this is expressed in the Statements of conglomerate /kənlɒmərət/ noun a
conglomerate
Financial Accounting Concepts issued by group of subsidiary companies linked

the Financial Accounting Standards Board. together and forming a group, each making
In the United Kingdom, it is expressed in the very different types of products
Statement of Principles issued by the connected
connected persons
persons /kənektid |
Accounting Standards Board. ps(ə)nz/ plural noun for purposes of dis-

concern /kənsn/ noun a business or
concern
|
closure under the UK Companies Act, cer-
company tain people who are related to or connected
concession /kənseʃ(ə)n/ noun 1. the
concession
| with members of the board of directors,

right to use someone else’s property for including his or her spouse and children
business purposes 2. the right to be the only Conseil National de la Comptabilité
Conseil National de la Comptabilité
seller of a product in a place 쑗 She runs a /kɒnsei n ʃənɑl də kɒmt bilitei/

| |
jewellery concession in a department store. noun in France, a committee appointed by

3. an allowance, e.g. a reduction of tax or the government that is responsible for draw-
price ing up the Plan Comptable Général (General
concessionaire /kənseʃəneə/ noun a
concessionaire
| | Accounting Plan)
person or business that has the right to be the consensus ad idem /kənsensəs d
consensus ad idem
only seller of a product in a place aidem/ phrase a Latin phrase meaning

concessionary fare /kənseʃ(ə)nəri
concessionary fare
|
‘agreement to this same thing’: real agree-
feə/ noun a reduced fare for some types of ment to a contract by both parties
passenger such as pensioners, students or conservative /kənsvətiv/ adjective
conservative
employees of a transport company careful, not overestimating 쑗 His forecast of

conciliation /kənsilieiʃ(ə)n/ noun the
conciliation
| |
expenditure was very conservative or She
practice of bringing together the parties in a made a conservative forecast of expenditure.
dispute with an independent third party, so ‘…we are calculating our next budget
that the dispute can be settled through a income at an oil price of $15 per barrel.
series of negotiations We know it is a conservative projection,
condition /kəndiʃ(ə)n/ noun something
condition
|
but we do not want to come in for a shock
which has to be carried out as part of a con- should prices dive at any time during the
tract or which has to be agreed before a con- year’ [Lloyd’s List]
conservatively /kənsvətivli/ adverb
conservatively
tract becomes valid |
conditional /kəndiʃ(ə)n(ə)l/ adjective

conditional
|
not overestimating 쑗 The total sales are
provided that specific conditions are taken conservatively estimated at £2.3m.
consideration /kənsidəreiʃ(ə)n/ noun
consideration
into account | |
1. serious thought 쑗 We are giving consider-

conditionality /kəndiʃ(ə)n liti/ noun
conditionality
| |
the fact of having conditions attached ation to moving the head office to Scotland.
2. something valuable exchanged as part of
conditional sale /kəndiʃ(ə)nəl seil/
conditional sale
|
a contract
noun a sale which is subject to conditions,
consign /kənsain/ verb 왍 to consign
consign
such as a hire-purchase agreement

|
goods to someone to send goods to some-

conditions of employment /kən
conditions of employment
|
one for them to use or to sell for you
diʃ(ə)nz əv implɔimənt/ plural noun the |
consignation /kɒnsaineiʃ(ə)n/ noun
consignation
terms of a contract of employment the act of consigning

conditions of sale /kəndiʃ(ə)nz əv
conditions of sale
consignee /kɒnsaini/ noun a person

| consignee
seil/ plural noun special features that apply

|
who receives goods from someone for their

to a particular sale, e.g. discounts or credit own use or to sell for the sender
terms
consignment /kənsainmənt/ noun 1.
consignment
Confederation of Asian and Pacific

Confederation of Asian and Pacific Accountants
the sending of goods to someone who will

Accountants /kənfedəreiʃ(ə)n əv |
sell them for you 2. a group of goods sent for
ei(ə)n ən pəsifik əkaυntənts/ noun | |
sale 쑗 A consignment of goods has arrived.
full form of CAPA 쑗 We are expecting a consignment of cars
confidential report /kɒnfidenʃəl ri
confidential report
|
from Japan.
pɔt/ noun a secret document which must ‘…some of the most prominent stores are
not be shown to other people gradually moving away from the tradi-
conflict of interest /kɒnflikt əv
conflict of interest
tional consignment system, under which

intrəst/ noun a situation where a person or manufacturers agree to repurchase any

consignment accounts 52
unsold goods, and in return dictate prices profit and loss statement or income
and sales strategies and even dispatch staff statement.)
to sell the products’ [Nikkei Weekly] consolidation /kənsɒlideiʃ(ə)n/ noun
consolidation
| |
consignment accounts /kən

consignment accounts
| 1. the grouping together of goods for ship-

sainmənt əkaυnts/ plural noun accounts
| ping 2. the act of taking profits from specu-
kept by both consignee and consignor, lative investments and investing them safely
showing quantities, dates of shipment, and in blue-chip companies
payments for stocks held consolidation adjustments /kənsɒli
consolidation adjustments
| |
consignment note /kənsainmənt

consignment note
| deiʃ(ə)n əd stmənts/ plural noun nec-

|
nəυt/ noun a note saying that goods have essary changes and deletions made to finan-
been sent cial records when consolidating the
consignor /kənsainə/ noun a person
consignor
|
accounts of a group of enterprises
who consigns goods to someone consolidation difference /kənsɒli
consolidation difference
| |
consistency /kənsistənsi/ noun one of

consistency
|
deiʃ(ə)n dif(ə)rəns/ noun the difference
the basic accounting concepts, that items in between the price paid for a subsidiary and
the accounts should be treated in the same the value of the assets and liabilities
way from year to year obtained in the purchase
consols /kɒnsɒlz/ plural noun govern-
consols
consolidate /kənsɒlideit/ verb 1. to

consolidate
include the accounts of several subsidiary ment bonds which pay interest but do not
companies as well as the holding company have a maturity date
in a single set of accounts 2. to group goods consortium /kənsɔtiəm/ noun a group
consortium
together for shipping of companies which work together 쑗 A con-

consolidated
consolidated accounts
accounts /kən |
sortium of Canadian companies or A Cana-
sɒlideitid əkaυnts/ plural noun accounts |
dian consortium has tendered for the job.
where the financial position of several dif- (NOTE: The plural is consortia.)
ferent companies, i.e. a holding company ‘…the consortium was one of only four
and its subsidiaries, are recorded together bidders for the £2 billion contract to run
consolidated balance sheet /kən
consolidated balance sheet
|
the lines, seen as potentially the most dif-
sɒlideitid bləns ʃit/ noun the balance ficult contract because of the need for huge
sheets of subsidiary companies grouped investment’ [Times]
constant purchasing power
constant purchasing power
together into the balance sheet of the parent

company. Also called group balance sheet /kɒnstənt ptʃisiŋ paυə/ noun same as
consolidated cash flow statement
consolidated cash flow statement
current purchasing power
constraint /kənstreint/ noun any factor
constraint
/kənsɒlideitid kʃ fləυ steitmənt/

|
|
noun a cash flow statement for a group of that limits the activities of a business, e.g.
enterprises and its parent company as a the capacity of a machine or the number of
whole hours a worker can legally work
constraint-based costing /kən
constraint-based costing
consolidated financial statement

consolidated financial statement
|
/kənsɒlideitid fainnʃəl steitmənt/

| |
streint beist kɒstiŋ/ noun a costing
noun a document that gives the main details method that takes account of restraints on
of the financial status of a company and its capacity, e.g. the capacity of machinery
Consultative Committee of
Consultative Committee of Accountancy Bodies
subsidiaries. Also called group financial

statement Accountancy Bodies /kənsltətiv kə | |
consolidated fund /kənsɒlideitid

consolidated fund
|
miti əv əkaυntənsi bɒdiz/ noun an |
fnd/ noun money in the Exchequer which organisation established in 1974 that repre-
comes from tax revenues and is used to pay sents and encourages coordination between
for government expenditure the six professional accountancy bodies in
consolidated income statement /kən
consolidated income statement
|
the United Kingdom and Ireland. Abbrevia-
sɒlideitid inkm steitmənt/ noun an tion CCAB
consulting /kənsltiŋ/ adjective giving
consulting
income statement for a group of enterprises |
and its parent company as a whole specialist advice 쑗 a consulting engineer

consulting actuary /kənsltiŋ
consulting actuary
consolidated profit and loss

consolidated profit and loss account
|
account /kənsɒlideitid prɒfit ən lɒs ə | |

ktjuəri/ noun an independent actuary
kaυnt/ noun profit and loss accounts of the who advises large pension funds
consumable goods /kənsjuməb(ə)l
consumable goods
holding company and its subsidiary compa- |
nies, grouped together into a single profit υdz/, consumables plural noun goods
and loss account (NOTE: The US term is which are bought by members of the public

53 continuous improvement
and not by companies. Also called con- contested takeover /kəntestid
contested takeover
sumer goods teikəυvə/ noun a takeover bid where the

consumed cost /kənsjumd kɒst/
consumed cost
|
board of the target company does not recom-
noun same as sunk cost mend it to the shareholders and tries to fight
consumer /kənsjumə/ noun a person or
consumer
|
it. Also called hostile bid
contingency fund /kəntind ənsi
contingency fund
company that buys and uses goods and serv- |
ices 쑗 Gas consumers are protesting at the fnd/ noun money set aside in case it is
increase in prices. 쑗 The factory is a heavy needed urgently
consumer of water. contingent expenses /kəntind ənt ik
contingent expenses
| |
consumer
consumer council
council /kənsjumə |
spensiz/ plural noun expenses which will
kaυns(ə)l/ noun a group representing the be incurred only if something happens
interests of consumers contingent gain /kəntind ənt ein/
contingent gain
consumer credit /kənsjumə kredit/

consumer credit
|
noun a possible gain that is conditional on
noun credit given by shops, banks and other the occurrence of a certain event in the
financial institutions to consumers so that future
they can buy goods (NOTE: Lenders have to contingent liability /kəntind ənt laiə
contingent liability
| |
be licensed under the Consumer Credit Act, biliti/ noun a liability which may or may
1974.) not occur, but for which provision is made in
Consumer Credit Act, 1974 /kən
Consumer Credit Act, 1974
| a company’s accounts, as opposed to ‘provi-

sjumə kredit kt/ noun an Act of Parlia- sions’, where money is set aside for an antic-
ment which licenses lenders, and requires ipated expenditure
them to state clearly the full terms of loans contingent loss /kəntind ənt lɒs/
contingent loss
which they make, including the APR noun a possible loss that is conditional on
consumer goods /kənsjumə υdz/
consumer goods
| the occurrence of a certain event in the

plural noun same as consumable goods future
contingent policy /kəntind ənt
contingent policy
Consumer Price Index /kənsjumə

Consumer Price Index
| |
prais indeks/ noun a US index showing pɒlisi/ noun an insurance policy which
how prices of consumer goods have risen pays out only if something happens, such as
over a period of time, used as a way of meas- if a person named in the policy dies before
uring inflation and the cost of living. Abbre- the person due to benefit
viation CPI (NOTE: The UK term is retail contingent reserve /kəntind ənt ri
contingent reserve
| |
prices index.) zv/ noun a fund set aside to meet unex-

‘…analysis of the consumer price index pected costs, e.g. an increase in interest rates
for the first half of the year shows that the continuing professional develop-
continuing professional development
rate of inflation went down by about 12.9 ment /kəntinjuiŋ prəfeʃ(ə)n(ə)l di | | |
per cent’ [Business Times (Lagos)] veləpmənt/ noun full form of CPD
consumer protection /kənsjumə prə
consumer protection
continuous disclosure /kəntinjυəs

continuous disclosure
| |
|
tekʃən/ noun the activity of protecting con- diskləυ ə/ noun in Canada, the practice of
|
sumers against unfair or illegal traders ensuring that complete, timely, accurate and
consumer spending /kənsjumə
consumer spending
| balanced information about a public com-

spendiŋ/ noun spending by private house- pany is made available to shareholders
holds on goods and services continuous improvement
continuous improvement
/kən |
‘…companies selling in the UK market are tinjuəs impruvmənt/ noun a procedure

|
worried about reduced consumer spending and management philosophy that focuses on
as a consequence of higher interest rates looking all the time for ways in which small
and inflation’ [Business] improvements can be made to processes and
consumption tax /kənsmpʃ(ə)n products, with the aim of increasing quality
consumption tax
tks/ noun a tax used to encourage people and reducing waste and cost (NOTE: Contin-
to buy less of a particular good or service by uous improvement is one of the tools that
increasing its price. This type of tax is often underpin the philosophies of total quality
levied in times of national hardship. management and lean production; in Japan
Contact Committee /kɒntkt kəmiti/
Contact Committee
|
it is known as kaizen.)
noun an advisory body, established by the continuously contemporary
continuous improvement
European Union, that oversees the applica- accounting /kəntinjυəsli kən

| |
tion of European accounting directives and temp(ə)rəri əkaυntiŋ/ noun an account- |
makes recommendations to the European ing system that measures assets and liabili-
Commission about changes to those direc- ties at their current cash price. Profit and loss
tives can therefore be viewed in terms of changes

contra 54
in the value as all items are measured in the contractual /kəntrktʃυəl/ adjective
contractual
same way. Abbreviation CoCoA according to a contract 쑗 contractual condi-

contra
contra /kɒntrə/ noun an accounting term tions

contractual liability /kəntrktʃuəl
contractual liability
used when debits are matched with related |
credits in an account or set of accounts laiəbiliti/ noun a legal responsibility for

|
contra account something as stated in a contract

contra account /kɒntrə əkaυnt/ noun
contractually /kəntrktjuəli/ adverb
| contractually
an account which offsets another account, |
according to a contract 쑗 The company is

e.g. where a company’s supplier is not only
contractually bound to pay our expenses.
a creditor in that company’s books but also a
contractual obligation /kəntrktʃuəl
contractual obligation
debtor because it has purchased goods on |
credit ɒblieiʃ(ə)n/ noun something that a per-

|
son is legally forced to do through having

signed a contract to do 왍 to fulfil your con-
contract
contract noun /kɒntrkt/ 1. a legal

agreement between two parties 쑗 to draw up tractual obligations to do what you have
a contract 쑗 to draft a contract 쑗 to sign a agreed to do in a contract
contract 왍 the contract is binding on both contract work /kɒntrkt wk/ noun
contract work
parties both parties signing the contract work done according to a written agreement
must do what is agreed 왍 under contract contra entry /kɒntrə entri/ noun an
contra entry
bound by the terms of a contract 쑗 The firm entry made in the opposite side of an
is under contract to deliver the goods by account to make an earlier entry worthless,
November. 왍 to void a contract to make a i.e. a debit against a credit
contract invalid 2. 왍 by private contract by
contribute /kəntribjut/ verb to give
contribute
private legal agreement 3. an agreement for |
the supply of a service or goods 쑗 to enter money or add to money 쑗 We agreed to con-
tribute 10% of the profits. 쑗 They had con-
into a contract to supply spare parts 쑗 to tributed to the pension fund for 10 years.
sign a contract for $10,000 worth of spare
contribution /kɒntribjuʃ(ə)n/ noun 1.
contribution
parts 4. (Stock Exchange) a deal to buy or |
sell shares, or an agreement to purchase money paid to add to a sum 2. the difference
options or futures 쐽 verb /kəntrkt/ to |
between sales value and the variable costs of
agree to do some work on the basis of a a unit sold. This goes to cover fixed costs
legally binding contract 쑗 to contract to and provide the profit.
contribution income statement
contribution income statement
supply spare parts or to contract for the sup-

ply of spare parts /kɒntribjuʃ(ə)n inkm steitmənt/
contract costing noun a way of presenting an income state-
contract costing /kɒntrkt kɒstiŋ/ ment in which fixed costs are shown as a
noun a method of costing large projects, deduction from the total contribution. This
where the contracted work will run over sev- format is often used as part of management
eral accounting periods accounting.
contracting party
contracting party /kəntrktiŋ pɑti/

| contribution margin /kɒntribjuʃ(ə)n
contribution margin
noun a person or company that signs a con- mɑd in/ noun a way of showing how
tract much individual products or services con-
contract note
contract note /kɒntrkt nəυt/ noun a tribute to net profit

note showing that shares have been bought ‘The provider of rehabilitation services
or sold but not yet paid for, also including cited the negative impact of Part B therapy
the commission caps on estimated Contract Therapy con-
contract of employment tribution margins.’ [BusinessWeek]
contract of employment /kɒntrkt contribution of capital /kɒntri
contribution of capital
əv implɔimənt/ noun a contract between

|
bjuʃ(ə)n əv kpit(ə)l/ noun money paid
an employer and an employee stating all the to a company as additional capital
conditions of work. Also called employ-
contributor of capital /kəntribjυtər
contributor of capital
ment contract
|
contract of service
əv kpit(ə)l/ noun a person who contrib-
contract of service /kɒntrkt əv utes capital
svis/ noun a legal agreement between an contributory /kəntribjυt(ə)ri/ adjective
contributory
employer and an employee whereby the causing or helping to cause 쑗 Falling

employee will work for the employer and be exchange rates have been a contributory
directed by them, in return for payment factor in the company’s loss of profits.
contractor
contractor /kəntrktə/ noun a person or

| control account /kəntrəυl əkaυnt/
control account
| |
company that does work according to a writ- noun an account used to record the total
ten agreement amounts entered in a number of different

55 cooperative store
ledger accounts. It also acts as a means of 1. a price at which preference shares are
checking the accuracy of the ledger converted into ordinary shares 2. a rate at
accounts. which a currency is changed into a foreign
controllable variance /kəntrəυləb(ə)l
controllable variance
|
currency
veəriəns/ noun a difference between actual conversion value /kənvʃ(ə)n
conversion value
and budgeted amounts that is considered as vlju/ noun a value of convertible stock,
being within the control of the budget centre including the extra value of the ordinary
manager shares into which they may be converted
controlled
controlled company
company /kəntrəυld | convert /kənvt/ verb 1. to change

convert
kmp(ə)ni/ noun company where more money of one country for money of another
than 50% (or in the USA, 25%) of the shares 쑗 We converted our pounds into Swiss
belong to one owner francs. 2. 왍 to convert funds to your own
controlled economy /kəntrəυld i
controlled economy
| |
use to use someone else’s money for your-
kɒnəmi/ noun an economy where most self
business activity is directed by orders from convertibility /kənvtəbiləti/ noun
convertibility
| |
the government the ability of a currency to be exchanged for

controller /kəntrəυlə/ noun 1. a person
controller
|
another easily
who controls something, especially the convertible currency /kənvtəb(ə)l
convertible currency
finances of a company 2. US the chief krənsi/ noun a currency which can easily
accountant in a company be exchanged for another
control limits /kəntrəυl limits/ plural convertible debenture /kənvtəb(ə)l
control limits convertible debenture
| |
noun limits on quantities or values which, if dibentʃə/ noun a debenture or loan stock
|
exceeded, trigger intervention from man- which can be exchanged for ordinary shares
agement at a later date
control period /kəntrəυl piəriəd/ noun
control period
| convertible loan stock /kənvtəb(ə)l

convertible loan stock
the fraction of the financial year, e.g., a ləυn stɒk/ noun money lent to a company
month, for which separate totals are given in which can be converted into shares at a later
a budget date
control risk /kəntrəυl risk/ noun that convertibles /kənvtəb(ə)lz/ plural
control risk convertibles
| |
aspect of an audit risk that involves a client’s noun corporate bonds or preference shares
internal control system which can be converted into ordinary shares
control totals /kəntrəυl təυt(ə)lz/ plu-
control totals
|
at a set price on set dates
ral noun in auditing, totals calculated for conveyance /kənveiəns/ noun a legal
conveyance
important data fields, used as a check of data document which transfers a property from
processing standards the seller to the buyer
conventional cost system /kən conveyancer /kənveiənsə/ noun a per-
conventional cost system conveyancer
| |
venʃ(ə)n(ə)l kɒst sistəm/ noun a stand- son who draws up a conveyance

ard system for applying overhead costs to conveyancing /kənveiənsiŋ/ noun the
conveyancing
products and services, using only unit-based work of legally transferring a property from
cost drivers a seller to a buyer
conversion /kənvʃ(ə)n/ noun the
conversion
|
COO abbreviation chief operating officer
COO
action of changing convertible loan stock cooling-off period /kuliŋ ɒf piəriəd/
cooling-off period
into ordinary shares noun 1. (during an industrial dispute) a

conversion costs /kənvʃ(ə)n kɒsts/
conversion costs
|
period when negotiations have to be carried
plural noun the cost of changing raw materi- on and no action can be taken by either side
als into finished or semi-finished products, 2. a period during which someone who is
including wages, other direct production about to enter into an agreement may reflect
costs and the production overhead on all aspects of the arrangement and change
conversion of funds /kənvʃ(ə)n əv his or her mind if necessary 쑗 New York has
conversion of funds
fndz/ noun the act of using money which a three day cooling-off period for telephone
does not belong to you for a purpose for sales.
which it is not supposed to be used cooperative society /kəυɒp(ə)rətiv
cooperative society
conversion period /kənvʃ(ə)n səsaiəti/ noun an organisation where cus-

conversion period
| |
piəriəd/ noun a time during which convert- tomers and employees are partners and share
ible loan stock may be changed into ordi- the profits
nary shares cooperative store /kəυɒp(ə)rətiv stɔ/
cooperative store
conversion price /kənvʃ(ə)n prais/,

conversion price
| noun a store owned by those who shop there

conversion rate /kənvʃ(ə)n reit/ noun | as well as by its workers

coproperty 56
coproperty /kəυprɒpəti/ noun the own- corporate name /kɔp(ə)rət neim/
coproperty corporate name
ership of property by two or more people noun the name of a large corporation
together corporate plan /kɔp(ə)rət pln/ noun
corporate plan
coproprietor /kəυprəpraiətə/ noun a

coproprietor
| a plan for the future work of a whole com-

person who owns a property with another pany
person or several other people corporate
corporate planning
planning /kɔp(ə)rət
copyright /kɒpirait/ noun an author’s
copyright
plniŋ/ noun 1. the process of planning the

legal right to publish his or her own work future work of a whole company 2. planning
and not to have it copied, lasting seventy the future financial state of a group of com-
years after the author’s death 쐽 verb to con- panies
firm the copyright of a written work by corporate profits /kɔp(ə)rət prɒfits/
corporate profits
inserting a copyright notice and publishing plural noun the profits of a corporation
the work
‘…corporate profits for the first quarter
Copyright Act /kɒpirait kt/ noun an
Copyright Act
showed a 4 per cent drop from last year’

Act of Parliament making copyright legal, [Financial Times]
and controlling the copying of copyright
corporate raider /kɔp(ə)rət reidə/
corporate raider
material
noun a person or company which buys a
copyright deposit /kɒpirait dipɒzit/
copyright deposit
|
stake in another company before making a
noun the act of depositing a copy of a pub- hostile takeover bid
lished work in a copyright library, which is
corporation /kɔpəreiʃ(ə)n/ noun 1. a
corporation
part of the formal copyrighting of copyright |
material large company 2. US a company which is

incorporated in the United States 3. a munic-
copyright holder /kɒpirait həυldə/
copyright holder
ipal authority
noun a person who owns a copyright and
corporation income tax
corporation income tax
who can expect to receive royalties from it

/kɔpəreiʃ(ə)n inkm tks/ noun a tax
copyright law /kɒpirait lɔ/ noun laws
copyright law
concerning the protection of copyright on profits made by incorporated companies

corporation loan /kɔpəreiʃ(ə)n ləυn/
corporation loan
copyright notice /kɒpirait nəυtis/

copyright notice |
noun a note in a book showing who owns the noun a loan issued by a local authority
corporation tax /kɔpəreiʃ(ə)n tks/
corporation tax
copyright and the date of ownership |
corporate /kɔp(ə)rət/ adjective refer-

corporate
noun a tax on profits and capital gains made
ring to corporations or companies, or to a by companies, calculated before dividends
particular company as a whole are paid. Abbreviation CT
correcting entry /kərektiŋ entri/ noun
correcting entry
‘…the prime rate is the rate at which banks |
lend to their top corporate borrowers’ an entry made in accounts to make some-
[Wall Street Journal] thing right which was previously wrong
correlation /kɒrəleiʃ(ə)n/ noun the
correlation
‘…if corporate forecasts are met, sales will |
exceed $50 million next year’ [Citizen degree to which there is a relationship
(Ottawa)] between two sets of data 쑗 Is there any cor-
corporate bond /kɔp(ə)rət bɒnd/
corporate bond
relation between people’s incomes and the
noun a loan stock officially issued by a com- amount they spend on clothing?
COSA abbreviation cost of sales adjust-
COSA
pany to raise capital, usually against the

security of some of its assets (NOTE: The ment
company promises to pay an amount of cost /kɒst/ noun the amount of money paid
cost
interest on a set date every year until the to acquire, produce or maintain something,
redemption date, when it repays the loan.) e.g. the money paid for materials, labour and
corporate finance /kɔp(ə)rət
corporate finance
overheads in the manufacture of a product

fainns/ noun the financial affairs of com- produced and sold by a business 쑗 Compu-
panies ter costs are falling each year. 쑗 We cannot
corporate governance /kɔp(ə)rət
corporate governance
afford the cost of two cars. 쐽 verb 1. to cause
v(ə)nəns/ noun the way a company or money to be spent or lost 2. to determine the
other organisation is run, including the pow- cost of something 왍 to cost a product to
ers of the board of directors, audit commit- calculate how much money will be needed
tees, ethics, environmental impact, treat- to make a product, and so work out its sell-
ment of workers, directors’ salaries and ing price
internal control cost absorption /kɒst əbzɔpʃən/
cost absorption
corporate loan /kɔp(ə)rət ləυn/ noun noun any system in which costs are assigned
corporate loan
a loan issued by a corporation to units produced

57 cost modelling
cost accountant /kɒst əkaυntənt/ cost driver /kɒst draivə/ noun a factor
cost accountant cost driver
noun an accountant who gives managers that determines how much it costs to carry
information about their business costs out a particular task or project, e.g. the
cost accounting /kɒst əkaυntiŋ/ noun
cost accounting
|
amount of resources needed for it, or the
the process of preparing special accounts of activities involved in completing it
cost-effective /kɒsti fektiv/ adjective
cost-effective
manufacturing and sales costs

cost accumulation /kɒst əkjumjυ
cost accumulation
| |
giving good value when compared with the
leiʃ(ə)n/ noun a system of presenting costs original cost 쑗 We find advertising in the
in an account Sunday newspapers very cost-effective.
cost-effectiveness /kɒst ifektivnəs/,
cost-effectiveness
cost allocation /kɒst ləkeiʃ(ə)n/

cost allocation
|
noun the way in which overhead expenses cost efficiency /kɒst ifiʃənsi/ noun the
|
are related to various cost centres quality of being cost-effective 쑗 Can we cal-
cost analysis /kɒst ənləsis/ noun the
cost analysis
|
culate the cost-effectiveness of air freight
process of calculating in advance what a against shipping by sea?
cost element /kɒst elimənt/ noun a
cost element
new product will cost

cost apportionment
cost apportionment
/kɒst ə |
single element of a total cost, e.g. the cost of
pɔʃ(ə)nmənt/ noun the sharing out of depreciation of an item or the cost of ware-
common overhead costs among various cost housing the item
cost estimation /kɒst estimeiʃ(ə)n/
cost estimation
centres
cost assignment path /kɒst ə
cost assignment path
|
noun the process of determining cost behav-
sainmənt pɑθ/ noun a link between a iour patterns
cost factor /kɒst fktə/ noun any activ-
cost factor
cost and its cost object

cost-based price /kɒst beist prais/
cost-based price
ity or item of material, equipment or person-
noun a price for a particular product or serv- nel that incurs a cost
cost function /kɒst fŋkʃ(ə)n/ noun a
cost function
ice based on that portion of overall costs

assigned to it mathematical function that links a com-
cost behaviour pattern /kɒst bi
cost behaviour pattern
|
pany’s total costs to its output and factor
heivjə pt(ə)n/ noun the extent to which costs
cost hierarchy /kɒst haiərɑki/ noun a
cost hierarchy
a cost will change as the level of activity of

a business changes system for classifying a company’s activities
cost-benefit analysis /kɒst benifit ə
cost-benefit analysis
|
according to the costs they incur
costing /kɒstiŋ/ noun a calculation of the
costing
nləsis/ noun the process of comparing the

costs and benefits of various possible ways manufacturing costs, and so the selling
of using available resources. Also called price, of a product 쑗 The costings give us a
benefit-cost analysis retail price of $2.95. 쑗 We cannot do the
cost centre /kɒst sentə/ noun 1. a per-
cost centre
costing until we have details of all the pro-
son or group whose costs can be itemised duction expenditure.
costly /kɒstli/ adjective costing a lot of
costly
and to which costs can be allocated in

accounts 2. a unit, a process or an individual money, or costing too much money 쑗
that provides a service needed by another Defending the court case was a costly proc-
part of an organisation and whose cost is ess. 쑗 The mistakes were time-consuming
therefore accepted as an overhead of the and costly.
business cost
cost management
management /kɒst
cost (at cost) concept /kɒst ət kɒst mnid mənt/ noun the application of
cost concept
kɒnsept/ noun the practice of valuing management accounting concepts, methods

assets with reference to their acquisition of data collection, analysis and presentation,
cost in order to provide the information required
cost control /kɒst kəntrəυl/ noun the
cost control
|
to enable costs to be planned, monitored and
process of ensuring that a business’s actual controlled
cost management function /kɒst
cost management function
costs do not exceed predetermined accepta-

ble limits mnid mənt fŋkʃ(ə)n/ noun the man-
cost-cutting /kɒst ktiŋ/ adjective
cost-cutting
agement of those activities that help deter-
intended to reduce costs 쑗 We have taken mine accurate costs
cost modelling /kɒst mɒd(ə)liŋ/ noun
cost modelling
out the second telephone line as a cost-cut-

ting exercise. 쐽 noun the process of reduc- the use of a costing system to give a clear
ing costs 쑗 As a result of cost-cutting, we view of the costs and profitability of a prod-
have had to make three staff redundant. uct or service

cost object 58
cost object /kɒst ɒbd ikt/ noun any and margin 쑗 We are charging for the work
cost object
aspect of a company’s business for which a on a cost plus basis.

costing can be produced, e.g. employees’ cost pool /kɒst pul/ noun a grouping of
cost pool
salaries and factory overheads individual costs, e.g. by department or by

cost of borrowing /kɒst əv bɒrəυiŋ/
cost of borrowing
type of job
noun an interest rate paid on borrowed cost price /kɒst prais/ noun a selling
cost price
money price that is the same as the price paid by the

cost of capital /kɒst əv kpit(ə)l/
cost of capital
seller, which results in no profit being made

noun interest paid on the capital used in cost reduction programme /kɒst ri
cost reduction programme
operating a business dkʃən prəυrm/ noun a programme of

cost of goods sold /kɒst əv υdz
cost of goods sold
cutting costs in order to improve profitabil-

səυld/ noun same as cost of sales ity
cost of living /kɒst əv liviŋ/ noun
cost of living
costs /kɒsts/ plural noun the expenses

costs
money which has to be paid for basic items involved in a court case 쑗 The judge
such as food, heating or rent 쑗 to allow for awarded costs to the defendant. 쑗 Costs of
the cost of living in the salary adjustments the case will be borne by the prosecution.
cost-of-living adjustment /kɒst əv
cost-of-living adjustment
costs of nonconformance /kɒsts əv

costs of nonconformance
liviŋ əd stmənt/ noun an increase in

|
nɒnkənfɔməns/ plural noun costs
|
wages or salary that compensates for an incurred by a company in rectifying defects

increase in the cost of living in products or services sold
cost-of-living allowance /kɒst əv
cost-of-living allowance
costs of quality /kɒsts əv kwɒləti/

costs of quality
liviŋ əlaυəns/ noun an addition to normal

|
plural noun costs incurred in applying qual-
salary to cover increases in the cost of living ity control standards
cost-of-living bonus /kɒst əv liviŋ
cost-of-living bonus
cost summary schedule /kɒst

cost summary schedule
bəυnəs/ noun money paid to meet an

increase in the cost of living sməri ʃedjul/ noun a method of deter-
mining the cost to be transferred to a depart-
cost-of-living increase /kɒst əv liviŋ
cost-of-living increase
ment’s finished goods inventory account

inkris/ noun an increase in salary to allow
cost-volume-profit analysis /kɒst
cost-volume-profit analysis
it to keep up with the increased cost of living

vɒljum prɒfit ənləsis/ noun an analy-
cost-of-living index /kɒst əv liviŋ
cost-of-living index |
sis of the relationship between gross profit

indeks/ noun a way of measuring the cost and costs of production at different selling
of living which is shown as a percentage prices and output volumes. Also called CVP
increase on the figure for the previous year. analysis
It is similar to the consumer price index, but
coterminous period ends
coterminous period ends
includes other items such as the interest on

mortgages. /kəυtminəs piəriəd endz/ plural noun
cost of replacement /kɒst əv ri
cost of replacement
|
a point in time that marks the end of the
pleismənt/ noun same as replacement accounting period for separate and related
cost accounts that cover the same period
council tax /kaυnsəl tks/ noun a tax
council tax
cost of sales /kɒst əv seilz/ noun all

cost of sales
the costs of a product sold, including manu- paid by individuals or companies to a local
facturing costs and the staff costs of the pro- authority. Introduced in April 1993 as a
duction department, before general over- replacement for the much maligned commu-
heads are calculated. Also called cost of nity charge, or ‘poll tax’, council tax
goods sold depends on the value of the residential or
commercial property occupied.
cost of sales adjustment /kɒst əv
cost of sales adjustment
count /kaυnt/ verb 1. to add figures

count
seilz əd stmənt/ noun an adjustment

|
made in current cost accounting to a com- together to make a total 쑗 She counted up
pany’s historical cost profit figure to take the sales for the six months to December. 2.
into account the effect of inflation on the to include something 쑗 Did you count my
value of materials used in production during trip to New York as part of my sales
the accounting period. If prices are rising, expenses?
counterbid /kaυntəbid/ noun a higher
counterbid
the COSA will reduce historical cost profit.

Abbreviation COSA bid in reply to a previous bid 쑗 When I bid
cost plus /kɒst pls/ noun a system of
cost plus
$20 she put in a counterbid of $25.
counter-claim /kaυntə kleim/ noun a
counter-claim
calculating a price, by taking the cost of pro-

duction of goods or services and adding a claim for damages made in reply to a previ-
percentage to cover the supplier’s overheads ous claim 쑗 Jones claimed £25,000 in dam-

59 CPD
ages against Smith, and Smith entered a overseas taxation, repatriation of profits,
counter-claim of £50,000 for loss of office. nationalisation, currency instability, etc.
counterfeit /kaυntəfit/ adjective refer- coupon /kupɒn/ noun 1. a piece of paper
counterfeit coupon
ring to false or imitation money 쑗 Shops in used in place of money 2. a slip of paper
the area have been asked to look out for attached to a government bond certificate
counterfeit £20 notes. 쐽 verb to make imita- which can be cashed to provide the annual
tion money interest
counterfoil /kaυntəfɔil/ noun a slip of coupon rate /kupɒn reit/ noun the per-
counterfoil coupon rate
paper kept after writing a cheque, an invoice centage fixed interest rate on a government
or a receipt, as a record of the deal which has bond or a debenture
taken place coupon security /kupɒn sikjυəriti/
coupon security
countermand /kaυntəmɑnd/ verb to

countermand
| noun a government security which carries a

say that an order must not be carried out 쑗 coupon and pays interest, as opposed to one
to countermand an order 왍 to countermand which pays no interest but is sold at a dis-
an order to say that an order must not be count to its face value
carried out covenant /kvənənt/ noun a legal con-
covenant
counter-offer /kaυntər ɒfə/ noun a

counter-offer
tract 쐽 verb to agree to pay annually a spec-
higher or lower offer made in reply to ified sum of money to a person or organisa-
another offer 쑗 Smith Ltd made an offer of tion by contract. When payments are made
$1m for the property, and Blacks replied under covenant to a charity, the charity can
with a counter-offer of $1.4m. reclaim the tax paid by the donee. 쑗 to cov-
‘…the company set about paring costs and enant to pay £10 per annum
cover /kvə/ noun an amount of money
cover
improving the design of its product. It

came up with a price cut of 14%, but its large enough to guarantee that something
counter-offer – for an order that was to can be paid for 쑗 Do you have sufficient
have provided 8% of its workload next cover for this loan? 쐽 verb 1. to provide pro-
year – was too late and too expensive’ tection by insurance against something 쑗
[Wall Street Journal] The insurance covers fire, theft and loss of
counterparty /kaυntəpɑti/ noun each work. 왍 to cover a risk to be protected by
counterparty
of the other parties to a contract, considered insurance against a risk 2. to earn enough
from the viewpoint of a particular party money to pay for costs, expenses, etc. 쑗 We
counterpurchase
counterpurchase
/kaυntəptʃis/ do not make enough sales to cover the

noun an international trading deal, where a expense of running the shop. 쑗 Break-even
company agrees to use money received on a point is reached when sales cover all costs.
sale to purchase goods in the country where 3. to ask for security against a loan which
the sale was made you are making
countersign /kaυntəsain/ verb to sign a
countersign
‘…three export credit agencies have
document which has already been signed by agreed to provide cover for large projects
someone else 쑗 All our cheques have to be in Nigeria’ [Business Times (Lagos)]
coverage /kv(ə)rid / noun US protec-
coverage
countersigned by the finance director. 쑗 The

sales director countersigns all my orders. tion guaranteed by insurance 쑗 Do you have
countertrade /kaυntətreid/ noun a
countertrade
coverage against fire damage?
trade which does not involve payment of ‘…from a PR point of view it is easier to
money, but something such as a barter or a get press coverage when you are selling an
buy-back deal instead industry and not a brand’ [PR Week]
covered option /kvəd ɒpʃ(ə)n/ noun
covered option
countervailing duty /kaυntəveiliŋ

countervailing duty
djuti/ noun a duty imposed by a country an option the owner of which is also the
on imported goods, where the price of the owner of the shares for the option
cover note /kvə nəυt/ noun a letter
cover note
goods includes a subsidy from the govern-

ment in the country of origin. Also called from an insurance company giving details of
anti-dumping duty an insurance policy and confirming that the
counting house /kaυntiŋ haυs/ noun a
counting house
policy exists
CP abbreviation commercial paper
CP
department dealing with cash (dated)

CPA abbreviation certified public account-
CPA
country risk /kntri risk/ noun the risk

country risk
associated with undertaking transactions ant

with, or holding assets in, a particular coun- CPD /si pi di/ noun training and educa-
CPD
try. Sources of risk might be political, eco- tion that continues throughout a person’s
nomic or regulatory instability affecting career in order to improve the skills and

CPI 60
knowledge they use to do a job or succession credit card holder /kredit kɑd
credit card holder
of jobs. Full form continuing professional həυldə/ noun a person who has a credit
development card
CPI abbreviation Consumer Price Index credit column /kredit kɒləm/ noun the
CPI credit column
creative accountancy /krieitiv ə

creative accountancy
| |
right-hand column in accounts showing
kaυntənsi/, creative accounting /kri |
money received
credit control /kredit kəntrəυl/ noun a
credit control
eitiv əkaυntiŋ/ noun an adaptation of a

|
|
company’s figures to present a better picture check that customers pay on time and do not
than is correct, usually intended to make a owe more than their credit limit
company more attractive to a potential credit controller /kredit kəntrəυlə/
credit controller
buyer, or done for some other reason which noun a member of staff whose job is to try to
may not be strictly legal get payment of overdue invoices
credit /kredit/ noun 1. a period of time credit entry /kredit entri/ noun an entry
credit credit entry
allowed before a customer has to pay a debt on the credit side of an account
incurred for goods or services 쑗 to give credit facilities /kredit fəsilitiz/ plural
credit facilities
someone six months’ credit 쑗 to sell on good noun an arrangement with a bank or supplier
credit terms 2. an amount entered in to have credit so as to buy goods
accounts to show a decrease in assets or credit freeze /kredit friz/ noun a period
credit freeze
expenses or an increase in liabilities, reve- when lending by banks is restricted by the

nue or capital. In accounts, credits are government
entered in the right-hand column. 쑗 to enter credit limit /kredit limit/ noun the larg-
credit limit
$100 to someone’s credit 쑗 to pay in $100 to est amount of money which a customer can
the credit of Mr Smith Compare debit 쐽 borrow
verb to put money into someone’s account,
credit line /kredit lain/ noun an over-
credit line
or to note money received in an account 쑗 to

credit an account with £100 or to credit draft, the amount by which a person can
£100 to an account draw money from an account with no funds,
with the agreement of the bank
credit account /kredit əkaυnt/ noun
credit account
credit note /kredit nəυt/ noun a note

| credit note
an account which a customer has with a shop

which allows him or her to buy goods and showing that money is owed to a customer 쑗
pay for them later The company sent the wrong order and so
had to issue a credit note. Abbreviation C/N
credit agency /kredit eid ənsi/ noun a
credit agency
creditor /kreditə/ noun a person or com-

creditor
company which reports on the creditworthi- pany that is owed money, i.e. a company’s
ness of customers to show whether they creditors are its liabilities
should be allowed credit. Also called credit
creditor days /kreditə deiz/ plural noun
creditor days
bureau
the number of days on average that a com-
credit agreement /kredit ərimənt/
credit agreement
|
pany requires to pay its creditors. 쒁 debtor
noun a document that sets out the terms days
under which credit is made available, or the
creditors /kreditəz/ plural noun a list of
creditors
agreement enshrined in such a document

all liabilities in a set of accounts, including
credit analysis /kredit ənləsis/ noun
credit analysis
|
overdrafts, amounts owing to other compa-
the process of assessing a potential bor- nies in the group, trade creditors, payments
rower’s creditworthiness received on account for goods not yet sup-
credit balance /kredit bləns/ noun a
credit balance
plied, etc.
balance in an account showing that more creditors’ meeting /kreditəz mitiŋ/
creditors’ meeting
money has been received than is owed 쑗 The noun a meeting of all the people to whom an
account has a credit balance of £100. insolvent company owes money, to decide
credit bank /kredit bŋk/ noun a bank
credit bank
how to obtain the money owed

which lends money credit rating /kredit reitiŋ/ noun an
credit rating
credit bureau /kredit bjυərəυ/ noun

credit bureau
amount which a credit agency feels a cus-

US same as credit agency tomer will be able to repay
credit reference /kredit ref(ə)rəns/
credit reference
credit card /kredit kɑd/ noun a plastic

credit card
card which allows someone to borrow noun a credit rating or other indication of the
money and to buy goods up to a certain limit creditworthiness of a company or individual
without paying for them immediately, but credit-reference agency /kredit
credit-reference agency
only after a period of grace of about 25–30 refər(ə)ns eid ənsi/ noun same as credit
days. 쒁 charge card agency

61 cumulative interest
credit report /kredit ripɔt/ noun infor-
credit report
| Method charts or PERT reports.’ [Infor-

mation about an individual or entity relevant mationWeek]
to a decision to grant credit CRO abbreviation Companies Registration
CRO
credit risk
credit risk /kredit risk/ noun a risk that Office

cross-border /krɒs bɔdə/ adjective
cross-border
a borrower may not be able to repay a loan

credit side /kredit said/ noun the right-
credit side
from one country to another, covering sev-
hand column of accounts showing money eral countries
cross-border services /krɒs bɔdə
cross-border services
received
credit squeeze /kredit skwiz/ noun a
credit squeeze svisiz/ plural noun accountancy services
period when lending by the banks is provided by an accountancy firm in one
restricted by the government country for a client in another country
crossed cheque /krɒst tʃek/ noun a
crossed cheque
credit union /kredit junjən/ noun a

credit union
cheque with two lines across it showing that

group of people who pay in regular deposits it can only be deposited at a bank and not
or subscriptions which earn interest and are exchanged for cash
used to make loans to other members of the
cross holdings /krɒs həυldiŋz/ plural
cross holdings
group
noun a situation where two companies own
creditworthiness /kreditwðinəs/
creditworthiness
|
shares in each other in order to stop either
noun the extent to which an individual or from being taken over 쑗 The two companies
organisation is creditworthy have protected themselves from takeover by
creditworthy /kreditwði/ adjective
creditworthy
a system of cross holdings.

judged as likely to be able to repay money cross rate /krɒs reit/ noun an exchange
cross rate
borrowed, either, in the case of an individ- rate between two currencies expressed in a
ual, by a credit reference agency, or, in the third currency
case of an organisation, by a credit rating cross-subsidy /krɒs sbsidi/ noun the
cross-subsidy
agency 쑗 We will do some checks on her to process of deliberately assigning costs to

see if she is creditworthy. items in an account in such a way that some
crisis /kraisis/ noun a serious economic
crisis
items are undercosted and some overcosted

situation where decisions have to be taken crown jewels /kraυn d uəlz/ plural
crown jewels
rapidly 쑗 a banking crisis 쑗 The govern- noun the most valuable assets of a company,
ment stepped in to try to resolve the interna- the reason why other companies may want
tional crisis. 쑗 Withdrawals from the bank to make takeover bids
have reached crisis level. crystallise /kristəlaiz/, crystallize verb
crystallise
crisis management to become chargeable on an asset 쑗 a

crisis management
/kraisis
mnid mənt/ noun 1. management of a deferred gain is crystallised when you real-
business or a country’s economy during a ise the gain by selling the asset
period of crisis 2. actions taken by an organ- CT abbreviation corporation tax
CT
isation to protect itself when unexpected cum /km/ preposition with

cum
events or situations occur that could threaten

cum all /km ɔl/ adverb including all
cum all
its success or continued operation (NOTE:

entitlements
Crisis situations may result from external
cum coupon /km kupɒn/ adverb
cum coupon
factors such as the development of a new

product by a competitor or changes in legis- with a coupon attached or before interest
lation, or from internal factors such as a due on a security is paid
cum dividend /km dividend/, cum
cum dividend
product failure or faulty decision-making,

and often involve the need to make quick div adverb including the next dividend still
decisions on the basis of uncertain or to be paid
cum rights /km raits/ adverb sold with
cum rights
incomplete information.)
critical-path method /kritik(ə)l pɑθ
critical-path method
the right to purchase new shares in a rights
meθəd/ noun a technique used in project issue
cumulative /kjumjυlətiv/ adjective
cumulative
management to identify the activities within

a project that are critical to its success, usu- added to regularly over a period of time
cumulative interest /kjumjυlətiv
cumulative interest
ally by showing on a diagram or flow chart

the order in which activities must be carried intrəst/ noun the total amount of interest
out so that the project can be completed in that has been charged on a loan up to a given
the shortest time and at the least cost point
cumulative preference share
cumulative interest
‘…need initial project designs to be more

complex or need to generate Critical Path /kjumjυlətiv pref(ə)rəns ʃeə/ noun a

currency 62
preference share which will have the divi- interest rate margin may be offset by
dend paid at a later date even if the company changes in the exchange rates which
is not able to pay a dividend in the current increase the value of the loan in the com-
year (NOTE: The US term is cumulative pany’s balance sheet.
preferred stock.) currency movements
currency movements
/krənsi
cumulative weighted average cost muvmənts/ plural noun fluctuations in the
currency
/kjumjυlətiv weitid v(ə)rid kɒst/, value of the world’s currencies that occur as
cumulative weighted average price they are traded
/kjumjυlətiv weitid v(ə)rid prais/ currency note /krənsi nəυt/ noun a
currency note
noun the average price per unit of stock bank note

delivered in a period calculated each time a currency reserves /krənsi rizvz/
currency reserves
new delivery is received. Compare periodic plural noun foreign money held by a govern-
weighted average cost ment to support its own currency and to pay
currency /krənsi/ noun 1. money in
currency
its debts
coins and notes which is used in a particular currency swap /krənsi swɒp/ noun 1.
currency swap
country 2. foreign currency, the currency of an agreement to use a certain currency for
another country (NOTE: Currency has no payments under a contract in exchange for
plural when it refers to the money of one another currency (the two companies
country: He was arrested trying to take cur- involved can each buy one of the currencies
rency out of the country.) at a more favourable rate than the other) 2.
‘…today’s wide daily variations in the buying or selling of a fixed amount of a
exchange rates show the instability of a foreign currency on the spot market, and the
system based on a single currency, namely selling or buying of the same amount of the
the dollar’ [Economist] same currency on the forward market
‘…the level of currency in circulation current account /krənt əkaυnt/ noun
current account
increased to N4.9 billion in the month of 1. an account in an bank from which the cus-
August’ [Business Times (Lagos)] tomer can withdraw money when he or she
currency backing /krənsi bkiŋ/
currency backing
wants. Current accounts do not always pay

noun gold or government securities which interest. 쑗 to pay money into a current
maintain the strength of a currency account Also called cheque account
currency band /krənsi bnd/ noun
currency band
(NOTE: The US term is checking account.)

the exchange rate levels between which a 2. an account of the balance of payments of
currency is allowed to move without full a country relating to the sale or purchase of
devaluation raw materials, goods and invisibles
currency basket /krənsi bɑskit/ current assets /krənt sets/ plural
currency basket current assets
noun a group of currencies, each of which is noun the assets used by a company in its
weighted, calculated together as a single ordinary work, e.g. materials, finished
unit against which another currency can be goods, cash and monies due, and which are
measured held for a short time only
currency clause /krənsi klɔz/ noun a current cost /krənt kɒst/ noun the
currency clause current cost
clause in a contract which avoids problems amount it would cost to replace an asset at
of payment caused by changes in exchange current prices
rates, by fixing the exchange rate for the var- current cost accounting /krənt
current cost accounting
ious transactions covered by the contract kɒst əkaυntiŋ/ noun a method of

|
currency futures /krənsi fjutʃəz/

currency futures
accounting in which assets are valued at the

plural noun purchases of foreign currency amount it would cost to replace them, rather
for delivery at a future date than at the original cost. Abbreviation CCA.
currency hedging /krənsi hed iŋ/
currency hedging
Also called replacement cost accounting
noun a method of reducing exchange rate current liabilities /krənt laiəbilitiz/
current liabilities
risk by diversifying currency holdings and plural noun the debts which a company has
adjusting them according to changes in to pay within the next accounting period. In
exchange rates a company’s annual accounts, these would
currency mismatching /krənsi
currency mismatching
be debts which must be paid within the year
mismtʃiŋ/ noun the activity of borrow- and are usually payments for goods or serv-
ing money in the currency of a country ices received.
where interest rates are low and depositing it current purchasing power /krənt
current purchasing power
in the currency of a country with higher ptʃisiŋ paυə/ noun a method of

interest rates. The potential profit from the accounting which takes inflation into

63 customs seal
account by using constant monetary units customer service department
customer service department
(actual amounts multiplied by a general /kstəmə svis dipɑtmənt/ noun a

|
price index). Also called constant pur- department which deals with customers and
chasing power their complaints and orders
customise /kstəmaiz/, customize
customise
current ratio /krənt reiʃiəυ/ noun a

current ratio
ratio of current assets to current liabilities verb to change something to fit the special
showing if a company may not be able to needs of a customer 쑗 We use customised
meet its immediate debts computer terminals.
customs /kstəmz/ plural noun the gov-
customs
current value /krənt vlju/ noun a

current value
figure that represents the amount by which ernment department which organises the
current assets are greater than current liabil- collection of taxes on imports, or an office of
ities this department at a port or airport 쑗 He was
current value accounting /krənt
current value accounting
stopped by customs. 쑗 Her car was searched
vlju əkaυntiŋ/ noun a reassessment of
|
by customs.
Customs and Excise /kstəmz ən
Customs and Excise
the value of assets and liabilities

eksaiz/ noun a former UK government
current year /krənt jiə/ noun the year
current year
in which an accounting period falls 쑗 Under department which organised the collection
of taxes on imports and also collected VAT.
self-assessment, income is taxed on a cur-
It merged with the Inland Revenue to form
rent year basis – i.e. it is taxed in the year in
which it is received. HM Revenue & Customs in 2005.
customs barrier /kstəmz briə/
customs barrier
current yield /krənt jild/ noun a div-

current yield
noun any provision intended to make trade

idend calculated as a percentage of the cur- more difficult, e.g. a high level of duty
rent price of a share on the stock market
customs broker /kstəmz brəυkə/
customs broker
curve /kv/ noun a line which is not

curve
noun a person or company that takes goods

straight, e.g. a line on a graph 쑗 The graph through customs for a shipping company
shows an upward curve. customs
customs clearance
clearance /kstəmz
cushion /kυʃ(ə)n/ noun money which
cushion
kliərəns/ noun 1. the act of passing goods

allows a company to pay interest on its bor- through customs so that they can enter or
rowings or to survive a loss 쑗 We have sums leave the country 2. a document given by
on deposit which are a useful cushion when customs to a shipper to show that customs
cash flow is tight. duty has been paid and the goods can be
custodian /kstəυdiən/ noun a bank shipped 쑗 to wait for customs clearance
custodian
whose principal function is to maintain and customs declaration /kstəmz deklə

customs declaration
grow the assets contained in a trust reiʃ(ə)n/ noun a statement showing goods
custom /kstəm/ noun the use of a shop
custom
being imported on which duty will have to

by regular shoppers be paid 쑗 to fill in a customs declaration
customer /kstəmə/ noun a person or
customer
form
customs duty /kstəmz djuti/ noun a
customs duty
company that buys goods 쑗 The shop was

full of customers. 쑗 Can you serve this cus- tax on goods imported into a country
tomer first please? 쑗 She’s a regular cus- customs entry point /kstəmz entri
customs entry point
tomer of ours. (NOTE: The customer may not pɔint/ noun a place at a border between two
be the consumer or end user of the prod- countries where goods are declared to cus-
uct.) toms
customs examination /kstəmz i
customs examination
‘…unless advertising and promotion is |
done in the context of an overall customer zmineiʃ(ə)n/ noun the inspection of

orientation, it cannot seriously be thought goods or baggage by customs officials
of as marketing’ [Quarterly Review of customs formalities /kstəmz fɔ
customs formalities
Marketing] mlitiz/ plural noun a declaration of goods

customer profitability /kstəmə
customer profitability
by the shipper and examination of them by

prɒfitəbiliti/ noun the amount of profit
| customs
generated by each individual customer. Usu- customs officer /kstəmz ɒfisə/ noun
customs officer
ally a small percentage of customers gener- a person working for the customs depart-
ate the most profit. ment of a country
customer profitability analysis customs seal /kstəmz sil/ noun a seal
customer profitability analysis customs seal
/kstəm prɒfitəbiliti ənlisis/ noun | | attached by a customs officer to a box, to

analysis of the revenues and costs associated show that the contents have not passed
with particular customers through customs

customs tariff 64
customs tariff
customs tariff /kstəmz trif/ noun a ‘Opec has on average cut production by
list of taxes to be paid on imported goods one third since 1979’ [Economist]
customs union
customs union /kstəmz junjən/ cut down (on) phrasal verb to reduce sud-
noun an agreement between several coun- denly the amount of something used 쑗 The
tries that goods can travel between them, government is cutting down on welfare ex-
without paying duty, while goods from other penditure. 쑗 The office is trying to cut down
countries have to pay special duties on electricity consumption. 쑗 We have in-
cut stalled networked computers to cut down on
cut /kt/ noun 1. the sudden lowering of a paperwork.
price, salary or the number of jobs 쑗 price cutback /ktbk/ noun a reduction 쑗
cutback
cuts or cuts in prices 왍 he took a cut in sal- cutbacks in government spending

ary, he took a salary cut he accepted a
cut-off /kt ɒf/ noun a date and procedure
cut-off
lower salary 2. a share in a payment 쑗 She

introduces new customers and gets a cut of for isolating the flow of cash and goods,
the sales rep’s commission. 쐽 verb 1. to stocktaking and the related documentation,
lower something suddenly 쑗 We are cutting to ensure that all aspects of a transaction are
prices on all our models. 쑗 We have taken dealt with in the same financial period
CVP analysis /si vi pi ənlisis/
CVP analysis
out the second telephone line in order to try |
to cut costs. 2. to reduce the number of noun same as cost-volume-profit analysis

cycle /saik(ə)l/ noun a set of events which
cycle
something
‘…state-owned banks cut their prime rates happen in a regularly repeated sequence
cyclical /siklik(ə)l/ adjective happening
cyclical
a percentage point to 11%’ [Wall Street

Journal] in cycles
cyclical factors /siklik(ə)l fktəz/
cyclical factors
‘…the US bank announced a cut in its

prime from 10½ per cent to 10 per cent’ plural noun the way in which a trade cycle
[Financial Times] affects businesses

D
D/A abbreviation deposit account
D/A dead money
dead money /ded mni/ noun money

damages /dmid iz/ plural noun money
damages
which is not invested to make a profit
claimed as compensation for harm done 쑗 to deal
deal /dil/ noun a business agreement,

claim £1000 in damages 쑗 to be liable for affair or contract 쑗 The sales director set up
damages 쑗 to pay £25,000 in damages a deal with a Russian bank. 쑗 The deal will
D & B abbreviation Dun & Bradstreet
D & B
be signed tomorrow. 쑗 They did a deal with
danger money /deind ə mni/ noun
danger money
an American airline. 쐽 verb to buy and sell
extra money paid to employees in dangerous 왍 to deal in leather or options to buy and
jobs 쑗 The workforce has stopped work and sell leather or options
asked for danger money. 쑗 He decided to go
dealer
dealer /dilə/ noun 1. a person who buys

to work on an oil rig because of the danger and sells 쑗 a used-car dealer 2. a person or
money offered as an incentive. firm that buys or sells on their own account,
Datastream /deitəstrim/ noun a data
Datastream
not on behalf of clients
system available online, giving information
dealing
dealing /diliŋ/ noun 1. the business of

about securities, prices, stock exchange buying and selling on the Stock Exchange,
transactions, etc. commodity markets or currency markets 왍
date of bill /deit əv bil/ noun a date
date of bill
dealing for or within the account buying
when a bill will mature shares and selling the same shares during an
date of maturity /deit əv mətjυəriti/
date of maturity
|
account, which means that the dealer has
noun same as maturity date only to pay the difference between the price
of the shares bought and the price obtained
date of record /deit əv rekɔd/ noun
date of record
for them when they are sold 2. the business

the date when a shareholder must be regis- of buying and selling goods
tered to qualify for a dividend dear money
date stamp /deit stmp/ noun a stamp

date stamp dear money /diə mni/ noun money
with rubber figures which can be moved, which has to be borrowed at a high interest
used for marking the date on documents rate, and so restricts expenditure by compa-
nies. Also called tight money
dawn raid /dɔn reid/ noun a sudden
dawn raid
death benefit
planned purchase of a large number of a death benefit /deθ benifit/ noun insur-
company’s shares at the beginning of a day’s ance benefit paid to the family of someone
trading (NOTE: Up to 15% of a company’s who dies in an accident at work
death duty
shares may be bought in this way, and the death duty /deθ djuti/ noun same as
purchaser must wait for seven days before inheritance tax
purchasing any more shares. Sometimes a death in service
death in service /deθ in svis/ noun

dawn raid is the first step towards a takeo- an insurance benefit or pension paid when
ver of the target company.) someone dies while employed by a company
day book /dei bυk/ noun a book with an
day book
death tax
death tax /deθ tks/ noun same as

account of sales and purchases made each inheritance tax
day debenture
debenture /dibentʃə/ noun agreement to

|
DCF abbreviation discounted cash flow

DCF
repay a debt with fixed interest using the

DD abbreviation direct debit
DD
company’s assets as security 쑗 The bank

dead account /ded əkaυnt/ noun an
dead account
| holds a debenture on the company.

account which is no longer used debenture bond
debenture bond /dibentʃə bɒnd/ noun

|
dead loss /ded lɒs/ noun a total loss 쑗

dead loss
US 1. a certificate showing that a debenture

The car was written off as a dead loss. has been issued 2. an unsecured loan

debenture capital 66
debenture capital collects debts for other companies for a
debenture capital
/dibentʃə |
kpit(ə)l/ noun capital borrowed by a commission

company, using its fixed assets as security debt collector /det kəlektə/ noun a
debt collector
debenture holder /dibentʃə həυldə/

debenture holder
|
person who collects debts
noun a person who holds a debenture for debt-convertible bond /det kən
debt-convertible bond
money lent vtib(ə)l bɒnd/ noun a floating-rate bond

debenture issue /dibentʃə iʃu/ noun
debenture issue
|
which can be converted to a fixed rate of
the activity of borrowing money against the interest. 쒁 droplock bond
debt counselling /det kaυnsəliŋ/
debt counselling
security of the company’s assets

debenture stock /dibentʃə stɒk/ noun
debenture stock
|
noun the work of advising people who are in
a form of debt instrument in which a com- debt of the best ways to arrange their
pany guarantees payments on a fixed sched- finances so as to pay off their debts
debt-equity ratio /det ekwiti reiʃiəυ/
debt-equity ratio
ule or at a fixed rate of interest

debit /debit/ noun an amount entered in
debit
noun a measure of a company’s ability to
accounts which shows an increase in assets repay its creditors, equal to its total long
or expenses or a decrease in liabilities, reve- term debt divided by the total of sharehold-
nue or capital. In accounts, debits are ers’ equity. 쒁 gearing
debt factoring /det fktəriŋ/ noun the
debt factoring
entered in the left-hand column. Compare

credit business of buying debts at a discount. A
debitable /debitəb(ə)l/ adjective able to
debitable
factor collects a company’s debts when due,
be debited and pays the creditor in advance part of the
sum to be collected, so ‘buying’ the debt.
debit balance /debit bləns/ noun a
debit balance
debtor /detə/ noun a person who owes

debtor
balance in an account showing that more money

money is owed than has been received 쑗
debtor days /detə deiz/ plural noun the
debtor days
Because of large payments to suppliers, the

account has a debit balance of £1,000. number of days on average that it takes a
company to receive payment for what it
debit card /debit kɑd/ noun a plastic
debit card
sells. 쒁 creditor days

card, similar to a credit card, but which deb-
debtors /detəz/ noun all money owed to
debtors
its the holder’s account immediately through

an EPOS system a company as shown in the accounts
debtors control account /detəz kən
debtors control account
debit column /debit kɒləm/ noun the

debit column |
left-hand column in accounts showing the trəυl əkaυnt/ noun an account used to
|
money paid or owed to others summarise the balances on the individual

sales ledger accounts
debit entry /debit entri/ noun an entry
debit entry
debtor side /detə said/ noun the debit

debtor side
on the debit side of an account side of an account

debit note /debit nəυt/ noun a note
debit note
debtors ledger /detəz led ə/ noun

debtors ledger
showing that a customer owes money 쑗 We same as sales ledger

undercharged Mr Smith and had to send him
debtors turnover ratio /detəz
debtors turnover ratio
a debit note for the extra amount.

tnəυvə reiʃiəυ/ noun the average time
debits and credits /debits ən kredits/
debits and credits
which debtors take to pay

plural noun money which a company owes
debt ratio /det reiʃiəυ/ noun the debts of
debt ratio
and money it receives, or figures which are a company shown as a percentage of its
entered in the accounts to record increases equity plus loan capital
or decreases in assets, expenses, liabilities,
debt rescheduling /det riʃedjuliŋ/
debt rescheduling
revenue or capital |
noun the process of reorganising the way in

debit side /debit said/ noun a left-hand
debit side
which debts are repaid. Debt rescheduling

column of accounts showing money owed or may be necessary if a company is unable to
paid to others pay its debts and may involve postponing
debt /det/ noun money owed for goods or
debt
debt payments, postponing payment of

services 쑗 The company stopped trading interest, or negotiating a new loan.
with debts of over £1 million. 왍 he is in debt decile /desail/ noun one of a series of nine
decile
to the tune of £250,000 he owes £250,000 figures below which one tenth or several
debt collection /det kəlekʃən/ noun
debt collection
| tenths of the total fall

the act of collecting money which is owed decimalisation /desim(ə)laizeiʃ(ə)n/,
decimalisation
debt collection agency /det kə

debt collection agency
| decimalization noun the process of chang-

lekʃən eid ənsi/ noun a company which ing to a decimal system

67 deed of covenant
decimalise /desim(ə)laiz/, decimalize over the last year. 쑗 The economy declined
decimalise
verb to change something to a decimal sys- during the last government. 쑗 The purchas-
tem ing power of the pound declined over the
decimal point /desim(ə)l pɔint/ noun a
decimal point
decade.
dot which indicates the division between the ‘Saudi oil production has declined by three
whole unit and its smaller parts, e.g. 4.75 quarters to around 2.5m barrels a day’
decimal system /desim(ə)l sistəm/
decimal system
[Economist]
noun a system of mathematics based on the ‘…this gives an average monthly decline
number 10 of 2.15 per cent during the period’ [Busi-
decision support system /disi (ə)n
decision support system
|
ness Times (Lagos)]
səpɔt sistəm/ noun a computer-based
| ‘…share prices disclosed a weak tendency
system which presents auditor judgments in right from the onset of business and
a structured way and can be used to create declined further, showing losses over a
audit programmes or document the assess- broad front’ [The Hindu]
declining balance method /diklainiŋ
declining balance method
ment of business risk |
decision theory /disi (ə)n θiəri/ noun

decision theory
|
bləns meθəd/ noun US same as reduc-
the mathematical methods for weighing the ing balance method
various factors in making decisions 쑗 In decrease /dikris/ verb to fall or to
decrease
practice it is difficult to apply decision the- become less 쑗 Imports are decreasing. 쑗
ory to our planning. 쑗 Students study deci- The value of the pound has decreased by
sion theory to help them suggest strategies 5%.
in case-studies. deduct /didkt/ verb to take money away
deduct
decision tree /disi (ə)n tri/ noun a

decision tree
| from a total 쑗 to deduct £3 from the price 쑗

model for decision-making, showing the to deduct a sum for expenses 쑗 After deduct-
possible outcomes of different decisions 쑗 ing costs the gross margin is only 23%. 쑗
This computer programme incorporates a Expenses are still to be deducted.
decision tree. deductible /didktib(ə)l/ adjective pos-
deductible
declaration /dekləreiʃ(ə)n/ noun an

declaration
| sible to deduct
official statement deduction /didkʃən/ noun the remov-
deduction
declaration date /dekləreiʃ(ə)n deit/

declaration date
|
ing of money from a total, or the amount of
noun US the date on which a board of direc- money removed from a total 쑗 Net salary is
tors declares the dividend to be paid salary after deduction of tax and social
declaration of bankruptcy security. 쑗 The deduction from her wages
declaration of bankruptcy
/dekləreiʃ(ə)n əv bŋkrptsi/ noun an represented the cost of repairing the damage

official statement that someone is bankrupt she had caused to the machinery. 왍 deduc-
declaration of income /dekləreiʃ(ə)n
declaration of income
tions from salary, salary deductions,
əv inkm/ noun same as income tax deductions at source money which a com-
return pany removes from salaries to give to the
declaration
declaration of solvency
of solvency government as tax, National Insurance con-

/dekləreiʃ(ə)n əv sɒlv(ə)nsi/ noun a doc- tributions, etc.
deed /did/ noun a legal document or writ-
deed
ument, lodged with the Registrar of Compa-

nies, that lists the assets and liabilities of a ten agreement
company seeking voluntary liquidation to deed of arrangement /did əv ə
deed of arrangement
show that the company is capable of repay- reind mənt/ noun an agreement made
ing its debts within 12months between a debtor and creditors whereby the
declare /dikleə/ verb to make an official
declare
| creditors accept an agreed sum in settlement

statement of something, or announce some- of their claim rather than make the debtor
thing to the public 쑗 to declare someone bankrupt
bankrupt 쑗 The company declared an deed of assignment /did əv ə
deed of assignment
interim dividend of 10p per share. sainmənt/ noun a document which legally
declared /dikleəd/ adjective having been
declared
| transfers a property from a debtor to a cred-

made public or officially stated itor
declared value /dikleəd vlju/ noun
declared value
deed of covenant /did əv kvənənt/

deed of covenant
|
the value of goods entered on a customs dec- noun a legal document in which a person or
laration organisation promises to pay a third party a
decline /diklain/ verb to fall slowly or
decline
| sum of money on an annual basis. In certain

decrease 쑗 Shares declined in a weak mar- countries this arrangement may have tax
ket. 쑗 New job applications have declined advantages. For example, in the United

deed of partnership 68
Kingdom, it is often used for making regular deferred expenditure /difd ik
deferred expenditure
| |
payments to a charity. spenditʃə/ noun expenditure incurred now

deed of partnership /did əv
deed of partnership
but reflected in the accounts of future years
pɑtnəʃip/ noun agreement which sets up a deferred maintenance /difd
deferred maintenance
partnership meintənəns/ noun a failure to carry out

deed of transfer /did əv trnsf/
deed of transfer
maintenance, e.g. to machinery, that
noun a document which transfers the owner- adversely affects its value, recorded in
ship of shares accounts
deferred payment /difd peimənt/
deferred payment
deep pocket /dip pɒkit/ noun a com-

deep pocket
|
pany which provides finance for another noun 1. money paid later than the agreed
defalcation /diflkeiʃ(ə)n/ noun the
defalcation
|
date 2. payment for goods by instalments
illegal use of money by someone who is not over a long period
deferred revenue /difd revənju/
deferred revenue
the owner but who has been trusted to look |
after it noun revenue carried forward to future

accounting periods
default /difɔlt/ noun a failure to carry out
default
deferred tax /difd tks/ noun a tax

deferred tax
the terms of a contract, especially failure to |
pay back a debt 쐽 verb to fail to carry out the which may become payable at some later
terms of a contract, especially to fail to pay date
deficiency /difiʃ(ə)nsi/ noun a lack of
deficiency
back a debt 쑗 There was a major financial |
crisis when the bank defaulted. something, or the amount by which some-
defaulter /difɔltə/ noun a person who
defaulter thing, e.g. a sum of money, is less than it
should be 쑗 There is a £10 deficiency in the
|
defaults
petty cash.
default notice /difɔlt nəυtis/ noun a
default notice
deficit /defisit/ noun the amount by

| deficit
formal notice to a borrower stating that he or

which spending is higher than income
she has defaulted on the loan and legal
deficit financing /defisit fainnsiŋ/
deficit financing
action may be taken to recover the money.

Also called notice of default (NOTE: The noun a type of financial planning by a gov-
US term is notice of default.) ernment in which it borrows money to cover
the difference between its tax income and its
defer /dif/ verb to put back to a later
defer
|
expenditure
date, to postpone 쑗 We will have to defer
deflation /difleiʃ(ə)n/ noun a general
deflation
payment until January. 쑗 The decision has |
been deferred until the next meeting. (NOTE: reduction in economic activity as a result of
deferring – deferred) a reduced supply of money and credit, lead-
ing to lower prices 쑗 The oil crisis resulted
deferment /difmənt/ noun the act of
deferment
|
in worldwide deflation. Opposite inflation
leaving until a later date 쑗 deferment of pay-
ment 쑗 deferment of a decision ‘…the reluctance of people to spend is one
of the main reasons behind 26 consecutive
deferred annuity /difd ənjuəti/
deferred annuity
| |
months of price deflation, a key economic
noun an investment that does not pay out ill that has led to price wars, depressed the
until at least one year after the final premium profit margins of state enterprises and hit
has been paid incomes among the rural population’
deferred consideration /difd kən
deferred consideration
| |
[Financial Times]
sidəreiʃ(ə)n/ noun instalment payments deflationary /difleiʃ(ə)n(ə)ri/ adjective
deflationary
| |
for the acquisition of new subsidiaries usu- causing deflation 쑗 The government has
ally made in the form of cash and shares, introduced some deflationary measures in
where the balance due after the initial the budget.
deposit depends on the performance of the deflator /difleitə/ noun the amount by
deflator
business acquired which a country’s GNP is reduced to take

deferred cost /difd kɒst/ noun a cost inflation into account
deferred cost
with future benefit that extends beyond the degearing /diiəriŋ/ noun a reduction
degearing
current accounting period in gearing, reducing a company’s loan capi-

deferred credit /difd kredit/ noun
deferred credit
| tal in relation to the value of its ordinary

income received but not yet entered in shares
accounts as income del credere /del kreidəri/ noun an
del credere
deferred creditor /difd kreditə/

deferred creditor
|
amount added to a charge to cover the possi-
noun a person who is owed money by a bility of not being paid
bankrupt but who is paid only after all other del credere agent /del kreidəri
del credere agent
creditors eid ənt/ noun an agent who receives a high

69 departmental accounts
commission because he or she guarantees duction to meet the extra demand. 2. to ask
payment by customers for something and expect to get it 쑗 She
delinquency /diliŋkwənsi/ noun US the
delinquency
|
demanded a refund. 쑗 The suppliers are
fact of being overdue in payment of an demanding immediate payment of their out-
account, an interest payment, etc. standing invoices.
delinquent /diliŋkwənt/ adjective US
delinquent
|
‘…spot prices are now relatively stable in
referring to an account or payment of tax the run-up to the winter’s peak demand’
which is overdue [Economist]
deliver /dilivə/ verb to transport goods to
deliver
|
‘…the demand for the company’s products
a customer 왍 goods delivered free or free remained strong throughout the first six
delivered goods goods transported to the months of the year with production and
customer’s address at a price which includes sales showing significant increases’ [Busi-
transport costs 왍 goods delivered on board ness Times (Lagos)]
goods transported free to the ship or plane ‘…growth in demand is still coming from
but not to the customer’s warehouse the private rather than the public sector’
[Lloyd’s List]
delivered price /dilivəd prais/ noun a
delivered price
demand bill /dimɑnd bil/ noun a bill of

demand bill
price which includes packing and transport |
exchange which must be paid when payment

delivery /diliv(ə)ri/ noun 1. a consign-
delivery
|
is asked for
ment of goods being delivered 쑗 We take in
demand price /dimɑnd prais/ noun the
demand price
three deliveries a day. 쑗 There were four |
items missing in the last delivery. 2. the price at which a quantity of goods will be
transport of a commodity to a purchaser 3. bought
demerge /dimd / verb to separate a
demerge
the transfer of a bill of exchange or other |
negotiable instrument to the bank which is company into several separate parts
demerger /dimd ə/ noun the separa-
demerger
due to make payment |
delivery cycle time /diliv(ə)ri saik(ə)l

delivery cycle time
|
tion of a company into several separate
taim/ noun the interval between the time of parts, especially used of companies which
accepting an order and the time of making have grown by acquisition
demise /dimaiz/ noun 1. a death 쑗 On his
demise
the final delivery |
delivery month /diliv(ə)ri mnθ/ noun

delivery month
|
demise the estate passed to his daughter. 2.
a month in a futures contract when actual the act of granting a property on a lease 쐽
delivery will take place verb to grant property on a lease
demonetisation /dimnitaizeiʃ(ə)n/,
demonetisation
delivery note /diliv(ə)ri nəυt/ noun a

delivery note
| |
|
list of goods being delivered, given to the demonetization noun the act of stopping a
customer with the goods coin or note being used as money
demonetise /dimnitaiz/, demonetize
demonetise
delivery of goods /diliv(ə)ri əv υdz/

delivery of goods
|
|
noun the transport of goods to a customer’s verb to stop a coin or note being used as
address money
demurrage /dimrid / noun money paid
demurrage
delivery order /diliv(ə)ri ɔdə/ noun

delivery order
|
|
the instructions given by the customer to the to a customer when a shipment is delayed at
person holding her goods, to tell her where a port or by customs
demutualisation /dimjutjuəlai
demutualisation
and when to deliver them | |
delivery time /diliv(ə)ri taim/ noun the

delivery time
|
zeiʃ(ə)n/, demutualization noun the proc-
number of days before something will be ess by which a mutual society, such as a
delivered building society, becomes a publicly owned
demand /dimɑnd/ noun 1. an act of ask-
demand
|
corporation
demutualise /dimjutjuəlaiz/, demu-
demutualise
ing for payment 2. an act of asking for some- |
thing and insisting on getting it 쑗 The man- tualize /dimjutʃuəlaiz/ verb to stop
| |
agement refused to give in to union demands having mutual status and become a publicly
for a meeting. 쐽 verb 1. the need that cus- owned corporation by selling shares to the
tomers have for a product or their eagerness general public on the stock market
denomination /dinɒmineiʃ(ə)n/ noun
denomination
to buy it 쑗 There was an active demand for | |
oil shares on the stock market. 쑗 The factory a unit of money on a coin, banknote or stamp
had to cut production when demand slack- 쑗 We collect coins of all denominations for
ened. 쑗 The office cleaning company cannot charity. 쑗 Small denomination notes are not
keep up with the demand for its services. 왍 often counterfeited.
to meet or fill a demand to supply what is departmental accounts
departmental accounts
needed 쑗 The factory had to increase pro- /dipɑtment(ə)l əkaυnts/ plural noun |

dependent variable 70
accounts which analyse the sales of different depreciable /dipriʃiəb(ə)l/ adjective
depreciable
departments or products of a company possible to depreciate

Department for Education and
dependent variable
depreciable asset /dipriʃiəb(ə)l

depreciable asset
Skills /dipɑtmənt fər edjυkeiʃ(ə)n ən

| | set/ noun an asset which will be used over
skilz/ noun a British government depart- more than one accounting period, but which
ment responsible for education and training. has a limited life and so can be depreciated
Abbreviation DFES depreciable cost /dipriʃiəb(ə)l kɒst/
depreciable cost
Department of Trade and Industry

Department of Trade and Industry
noun a cost that can be applied to more than

/dipɑtmənt əv treid ənd indəstri/
| one accounting period
noun a British government department depreciable life /dipriʃiəb(ə)l laif/
depreciable life
which deals with areas such as commerce, noun the period over which the cost of an
international trade and the stock exchange. asset may be spread
Abbreviation DTI depreciate /dipriʃieit/ verb 1. to make
depreciate
dependent variable
dependent variable
/dipendənt |
an allowance in accounts for the loss of
veəriəb(ə)l/ noun a variable or factor value of an asset over time 쑗 We depreciate
which changes as a result of a change in our company cars over three years. 2. to
another (the ‘independent variable’) 쑗 We lose value 쑗 a share that has depreciated by
are trying to understand the effects of sev- 10% over the year 쑗 The pound has depre-
eral independent variables on one depend- ciated by 5% against the dollar.
ent variable, in this case, sales. depreciation /dipriʃieiʃ(ə)n/ noun 1. a
depreciation
| |
deposit /dipɒzit/ noun 1. money placed

deposit
|
loss of value 쑗 a share that has shown a
in a bank for safe keeping or to earn interest depreciation of 10% over the year 쑗 the
2. money given in advance so that the thing depreciation of the pound against the dollar
which you want to buy will not be sold to 2. the loss of value of an asset over time,
someone else 쑗 to pay a deposit on a watch which is recorded in accounts as an expense
쑗 to leave £10 as deposit 쐽 verb 1. to put depreciation accounting /dipriʃi
depreciation accounting
| |
documents somewhere for safe keeping 쑗 to eiʃ(ə)n əkaυntiŋ/ noun the process of
|
deposit shares with a bank 쑗 We have depos- spreading the cost of an asset over its useful
ited the deeds of the house with the bank. 쑗 life
He deposited his will with his solicitor. 2. to
depreciation provision /dipriʃi
depreciation provision
put money into a bank account 쑗 to deposit | |
£100 in a current account eiʃ(ə)n prəvi (ə)n/ noun the amount of

|
depreciation, in relation to a particular asset,

deposit account /dipɒzit əkaυnt/
deposit account
| |
that has been charged cumulatively to an
noun a bank account which pays interest but account since the asset was acquired
on which notice has to be given to withdraw
depreciation rate /dipriʃieiʃ(ə)n reit/
depreciation rate
money. Abbreviation D/A | |
noun the rate at which an asset is depreci-

depositary /dipɒzitəri/ noun US a per-
depositary
|
ated each year in the company accounts
son or corporation which can place money depress /dipres/ verb to reduce some-
depress
or documents for safekeeping with a depos-

|
thing 쑗 Reducing the money supply has the

itory. 쒁 American Depositary Receipt effect of depressing demand for consumer
(NOTE: Do not confuse with depository.)
goods.
depositor /dipɒzitə/ noun a person who
depositor
depressed market /diprest mɑkit/

depressed market
|
|
deposits money in a bank, building society, noun a market where there are more goods
etc. than customers
depository /dipɒzit(ə)ri/ noun a person
depository
deregulate /direjυleit/ verb to remove

deregulate
|
|
or company with whom money or docu- government controls from an industry 쑗 The
ments can be deposited (NOTE: Do not con- US government deregulated the banking
fuse with depositary.) sector in the 1980s.
deposit slip /dipɒzit slip/ noun US
deposit slip
deregulation /direjυleiʃ(ə)n/ noun

deregulation
|
| |
same as paying-in slip the reduction of government control over an

deposit-taking institution /dipɒzit
deposit-taking institution
| industry 쑗 the deregulation of the airlines

teikiŋ institjuʃ(ə)n/, depository insti-
|
‘…after the slump in receipts last year that
tution /dipɒzit(ə)ri institjuʃ(ə)n/ noun
| |
followed liner shipping deregulation in the
an institution which is licensed to receive US, carriers are probably still losing
money on deposit from private individuals money on their transatlantic services. But
and to pay interest on it, e.g. a building soci- with a possible contraction in capacity and
ety, bank or friendly society healthy trade growth, this year has begun

71 director
in a much more promising fashion than diminish /diminiʃ/ verb to become
diminish
last’ [Lloyd’s List] smaller 쑗 Our share of the market has

derivative instruments /dirivətiv diminished over the last few years.
derivative instruments
instrυmənts/, derivatives /dirivətivz/ | direct allocation method /dairekt

direct allocation method
plural noun any forms of traded security ləkeiʃ(ə)n meθəd/, direct method /dai
| |
such as option contracts, which are derived rekt meθəd/ noun a method of relating the
from ordinary bonds and shares, exchange costs incurred by service departments of a
rates or stock market indices company to the production departments
designated account /dezineitid ə
designated account
|
direct cost /dairekt kɒst/ noun a cost
direct cost
kaυnt/ noun an account opened and held in which can be directly related to the making
one person’s name, but which also features of a product, i.e. its production cost
another person’s name for extra identifica- direct cost variance /dairekt kɒst
direct cost variance
tion purposes veəriəns/ noun the difference between the

detailed audit /diteild ɔdit/ noun an
detailed audit
planned direct costs for a product and the

audit that involves examining all or most of actual direct costs
a company’s transactions, rather than a sam- direct debit /dairekt debit/ noun a sys-
direct debit
ple of them tem where a customer allows a company to

devaluation /divljueiʃ(ə)n/ noun a
devaluation
|
charge costs to his or her bank account auto-
reduction in the value of a currency against matically and where the amount charged can
other currencies 쑗 the devaluation of the be increased or decreased with the agree-
rand ment of the customer 쑗 I pay my electricity
devalue /divlju/ verb to reduce the
devalue
|
bill by direct debit. Abbreviation DD
value of a currency against other currencies direct expenses /dairekt ikspensiz/
direct expenses
| |
쑗 The pound has been devalued by 7%. plural noun expenses excluding materials,
development costs /diveləpmənt
development costs
|
labour or purchase of stock for resale which
kɒsts/ plural noun costs of developing new are incurred in making a product
or improved products, sometimes also incor- directional testing /dairekʃən(ə)l
directional testing
porating a portion of standard overhead testiŋ/ noun an auditing technique by

costs which work is reduced by testing debits only
devise /divaiz/ noun the act of giving
devise
|
for overstatement and credits only for under-
freehold land to someone in a will 쐽 verb to statement
give freehold property to someone in a will directive /dairektiv/ noun an order or
directive
devisee /divaizi/ noun a person who

devisee
|
command to someone to do something 쑗
receives freehold property in a will The Commission issued a directive on food
DFES abbreviation Department for Educa-
DFES
prices. (NOTE: Directives from the European

tion and Skills Union are binding, but member states can
differential tariffs /difərenʃəl trifs/
differential tariffs
implement them as they wish. A directive is

plural noun different tariffs for different binding as to the result to be achieved, but
classes of goods as, e.g., when imports from leaves to the national authorities the choice
some countries are taxed more heavily than of form and method.)
similar imports from other countries direct labour costs /dairekt leibə
direct labour costs
digit /did it/ noun a single number 쑗 a kɒsts/ plural noun the cost of employing
digit
seven-digit phone number those workers directly involved in producing

digital analysis /did it(ə)l ənləsis/
digital analysis
| a particular product, not including materials

noun auditing techniques that investigate the or overheads
digits in accounting numbers to reveal fraud direct materials cost /dairekt mə
direct materials cost
| |
and error tiəriəlz kɒst/ noun the cost of the materi-

diluted earnings per share /dailutid als used in producing a particular product
diluted earnings per share
rniŋz pə ʃeə/ noun a hypothetical meas- director /dairektə/ noun a senior

director
ure of the quality of a company’s earnings employee appointed by the shareholders to

per share that assumes all convertible secu- help run a company, who is usually in charge
rities are exercised of one or other of its main functions, e.g.
dilution of shareholding /dailuʃ(ə)n
dilution of shareholding
| sales or human relations, and usually, but not

əv ʃeəhəυldiŋ/ noun a situation where the always, a member of the board of directors
ordinary share capital of a company has ‘…the research director will manage and
been increased, but without an increase in direct a team of business analysts report-
the assets so that each share is worth less ing on the latest developments in retail dis-
than before tribution throughout the UK’ [Times]

directorate 72
directorate /dairekt(ə)rət/ noun a group rupt to release someone from bankruptcy
directorate
of directors because they have has paid their debts 2. 왍

Director of the Budget /dairektər əv
Director of the Budget
|
to discharge a debt, to discharge your lia-
ðə bd it/ noun the member of a govern- bilities to pay a debt or your liabilities in full
ment in charge of the preparation of the 3. to dismiss an employee 쑗 to discharge an
budget employee for negligence
discharged bankrupt
director’s fees /dairektəz fiz/ plural

director’s fees
|
discharged bankrupt /distʃɑd d |
noun money paid to a director for attend- bŋkrpt/ noun a person who has been
ance at board meetings released from being bankrupt because his or
directorship /dairektəʃip/ noun the post
directorship
|
her debts have been paid
of director 쑗 She was offered a directorship
disclaimer
disclaimer /diskleimə/ noun a legal |
with Smith Ltd refusal to accept responsibility

directors’ report /dairektəz ripɔt/
directors’ report disclose
| | disclose /diskləυz/ verb to tell some-

|
noun the annual report from the board of thing that was previously unknown to other
directors to the shareholders people or secret 쑗 The bank has no right to
direct product profitability /dairekt
direct product profitability
| disclose details of my account to the tax

prɒdkt prɒfitəbiliti/ noun an assess- | office.
ment of the net profit generated by a partic- disclosure
disclosure /diskləυ ə/ noun the act of

|
ular product, which considers costs such as telling something that was previously
distribution, warehousing and retailing but unknown to other people or secret 쑗 The dis-
not the original purchase price. Abbrevia- closure of the takeover bid raised the price
tion DPP of the shares.
direct share ownership /dairekt ʃeə
direct share ownership
disclosure of shareholding
|
disclosure of shareholding /dis |
əυnəʃip/ noun the ownership of shares by kləυ ər əv ʃeəhəυldiŋ/ noun the act of
private individuals, buying or selling making public the fact that someone owns
through brokers, and not via holdings in unit shares in a company
trusts discount
discount noun /diskaυnt/ 1. the percent-

direct tax /dairekt tks/ noun a tax that
direct tax
|
age by which the seller reduces the full price
is paid directly to the government, e.g. for the buyer 쑗 to give a discount on bulk
income tax, as distinct from a tax such as purchases 왍 to sell goods at a discount or
VAT that is paid indirectly at a discount price to sell goods below the
direct taxation /dairekt tkseiʃ(ə)n/ normal price 왍 10% discount for cash,
direct taxation
| |
noun the process in which a government 10% cash discount you pay 10% less if you
raises revenue in the form of direct taxes 쑗 pay in cash 2. the amount by which some-
The government raises more money by direct thing is sold for less than its value 쐽 verb
taxation than by indirect. /diskaυnt/ 1. to reduce prices to increase
|
dirty float /dti fləυt/ noun the process sales 2. 왍 to discount bills of exchange to
dirty float
of floating a currency, in which the govern- buy or sell bills of exchange for less than the
ment intervenes to regulate the exchange value written on them in order to cash them
rate later 3. to react to something which may
disallow /disəlaυ/ verb not to accept a
disallow
|
happen in the future, such as a possible take-
claim for insurance 쑗 She claimed £2,000 over bid or currency devaluation 4. to calcu-
for fire damage, but the claim was disal- late the value of future income or expendi-
lowed. ture in present value terms
discountable
disallowable /disəlaυəb(ə)l/ adjective discountable /diskaυntəb(ə)l/ adjec-

disallowable
not able to be allowed for tax relief 쑗 The tive possible to discount 쑗 These bills are
use of a car for private travel is a disallow- not discountable.
able expense. Opposite allowable discounted cash flow
discounted cash flow /diskaυntid

disburse /disbs/ verb to pay money
disburse
| kʃ fləυ/ noun the calculation of the fore-

disbursement /disbsmənt/ noun the
disbursement
| cast return on capital investment by dis-

payment of money counting future cash flows from the invest-
discharge /distʃɑd / noun /distʃɑd /
discharge
|
ment, usually at a rate equivalent to the com-
1. the act of paying a debt 왍 in full dis- pany’s minimum required rate of return.
charge of a debt as full payment of a debt 2. Abbreviation DCF
왍 in discharge of her duties as director
discounted value
discounted value /diskaυntid vlju/

while carrying out her duties as director 쐽 noun the difference between the face value
verb 1. to pay a debt 왍 to discharge a bank- of a share and its lower market price

73 distribute
discounter /diskaυntə/ noun a person or Inland Revenue by which business expenses
discounter
company that discounts bills or invoices, or paid to an employee are not declared for tax
sells goods at a discount disposable personal income /di
disposable personal income
discount for cash /diskaυnt fə kʃ/

discount for cash
spəυzəb(ə)l ps(ə)nəl inkm/ noun the

noun same as cash discount income left after tax and National Insurance
discount house /diskaυnt haυs/ noun
discount house
have been deducted. Also called take-home
a financial company which specialises in pay
discounting bills disposal /dispəυz(ə)l/ noun a sale 쑗 a
disposal
discount rate /diskaυnt reit/ noun the disposal of securities 쑗 The company has
discount rate
rate charged by a central bank on any loans started a systematic disposal of its property
it makes to other banks portfolio. 왍 lease or business for disposal a
discrepancy /diskrepənsi/ noun a lack
discrepancy
|
lease or business for sale
of agreement between figures in invoices or disposals /dispəυz(ə)lz/ plural noun
disposals
accounts assets which have been sold or scrapped

discretion /diskreʃ(ə)n/ noun the ability
discretion
disqualification /diskwɒlifikeiʃ(ə)n/
disqualification
|
| |
to decide what should be done noun 1. the act of making someone disqual-
discretionary account /di ified to do something 2. a court order which
discretionary account
skreʃ(ə)n(ə)ri əkaυnt/ noun a client’s

| forbids a person from being a director of a
account with a stockbroker, where the bro- company. A variety of offences, even those
ker invests and sells at his or her own discre- termed as ‘administrative’, can result in
tion without the client needing to give him some being disqualified for up to five years.
specific instructions disqualify /diskwɒlifai/ verb to make a
disqualify
discretionary client /diskreʃ(ə)n(ə)ri

discretionary client
| person unqualified to do something, such as

klaiənt/ noun a client whose funds are to be a director of a company
managed on a discretionary basis dissolution /disəluʃ(ə)n/ noun the
dissolution
discretionary cost /diskreʃ(ə)n(ə)ri

discretionary cost
|
ending of a partnership
kɒst/ noun a cost that can vary greatly dissolve /dizɒlv/ verb to bring to an end
dissolve
within an accounting period and is deter- 쑗 to dissolve a partnership

mined by the appropriate budget holder
distrain /distrein/ verb to seize goods to
distrain
discretionary funds /diskreʃ(ə)n(ə)ri

discretionary funds |
|
pay for debts
fndz/ plural noun funds managed on a dis-
distress /distres/ noun the act of taking
distress
cretionary basis |
discretionary trust /diskreʃ(ə)n(ə)ri

discretionary trust
|
someone’s goods to pay for debts
distress merchandise
distress merchandise
trst/ noun a trust where the trustees /distres |
decide how to invest the income and when mtʃəndais/ noun US goods sold cheaply
and how much income should be paid to the to pay a company’s debts
distress sale /distres seil/ noun a sale
distress sale
beneficiaries |
diseconomies of scale /disikɒnəmiz

diseconomies of scale
|
of goods at low prices to pay a company’s
əv skeil/ plural noun a situation where debts
increased production leads to a higher pro- distributable /distribjυtəb(ə)l/ adjec-
distributable
duction cost per unit or average production tive possible to distribute

cost distributable profits /distribjυtəb(ə)l
distributable profits
disequilibrium /disikwilibriəm/ noun

disequilibrium
|
prɒfits/ plural noun profits which can be
an imbalance in the economy when supply distributed to shareholders as dividends if
does not equal demand the directors decide to do so
dishonoured cheque /disɒnəd tʃek/
dishonoured cheque
distributable reserve /distribjυtb(ə)l

distributable reserve
|
|
noun a cheque which the bank will not pay rizv/ noun a reserve fund that is able to
|
because there is not enough money in the be distributed to shareholders in the form of
account to pay it dividends
disinvest /disinvest/ verb to reduce
disinvest
distribute /distribjut/ verb 1. to share

distribute
|
|
investment by not replacing capital assets out dividends 쑗 Profits were distributed
when they wear out among the shareholders. 2. to send out
disinvestment /disinvestmənt/ noun a
disinvestment
|
goods from a manufacturer’s warehouse to
reduction in capital assets by not replacing retail shops 쑗 Smith Ltd distributes for sev-
them when they wear out eral smaller companies. 쑗 All orders are
dispensation /dispenseiʃ(ə)n/ noun
dispensation
| distributed from our warehouse near

arrangement between an employer and the Oxford.

distributed profits 74
distributed profits /distribjυtid dividend check /dividend tʃek/ noun
distributed profits dividend check
prɒfits/ plural noun profits passed to share- US same as dividend warrant

holders in the form of dividends dividend cover /dividend kvə/ noun
dividend cover
distribution /distribjuʃ(ə)n/ noun the

distribution
| the ratio of profits to dividends paid to

act of sending goods from the manufacturer shareholders
to the wholesaler and then to retailers 쑗 dividend forecast /dividend fɔkɑst/
dividend forecast
Stock is held in a distribution centre which noun a forecast of the amount of an expected
deals with all order processing. 쑗 Distribu- dividend
tion costs have risen sharply over the last 18 dividend growth model /dividend
dividend growth model
months. 쑗 She has several years’ experience rəυθ mɒd(ə)l/ noun a financial model that
as distribution manager. assesses the value of a company using fig-
‘British distribution companies are poised ures for its current and assumed future divi-
to capture a major share of the European dend payments
market’ [Management News] dividend
dividend mandate
mandate /dividend
distribution cost /distribjuʃ(ə)n
distribution cost
| mndeit/ noun authorisation by a share-

kɒst/, distribution expense /distri | holder to the company, to pay his or her div-
bjuʃ(ə)n ikspens/, distribution over-
| idends directly into a bank account
head /distribjuʃ(ə)n əυvəhed/ noun
|
dividend payout /dividend peiaυt/
dividend payout
expenditure involved in warehousing, pack- noun money paid as dividends to sharehold-

ing and sending products for sale ers
distribution network /distribjuʃ(ə)n
distribution network
dividend per share /dividend pə ʃeə/

dividend per share
|
netwk/ noun a series of points or small noun an amount of money paid as dividend
warehouses from which goods are sent all for each share held
over a country dividend warrant /dividend wɒrənt/
dividend warrant
distribution of income
distribution of income
noun a cheque which makes payment of a

/distribjuʃ(ə)n əv inkm/ noun the pay- dividend (NOTE: The US term is dividend
ment of dividends to shareholders check.)
distributor /distribjυtə/ noun a com-
distributor
dividend yield /dividend jild/ noun a

dividend yield
pany which sells goods for another company dividend expressed as a percentage of the
which makes them current market price of a share
distributorship /distribjυtəʃip/ noun dividend yield basis /dividend jild
distributorship dividend yield basis
the position of being a distributor for a com- beisis/ noun a method of valuing shares in
pany a company, by which the dividend per share
District Bank /distrikt bŋk/ noun one
District Bank
is divided by the expected dividend yield
divisional headquarters /divi (ə)nəl
divisional headquarters
of the 12 US banks that make up the Federal |
Reserve System. Each District Bank is hedkwɔtəz/ plural noun the main office of
|
responsible for all banking activity in its a division of a company

area. divisor /divaizə/ noun a number divided
divisor
diversification
diversification
/daivsifikeiʃ(ə)n/ | |
into another number
noun the process in which a company begins document /dɒkjυmənt/ noun a paper,
document
to engage in a new and different type of busi- especially an official paper, with written
ness information on it 쑗 He left a file of docu-
diversify /daivsifai/ verb 1. to add new
diversify
|
ments in the taxi. 쑗 She asked to see the doc-
types of business to existing ones 쑗 The uments relating to the case.
documentary /dɒkjυment(ə)ri/ adjec-
documentary
company is planning to diversify into new |
products. 2. to invest in different types of tive in the form of documents 쑗 documen-

shares or savings so as to spread the risk of tary evidence
loss documentary credit /dɒkjυment(ə)ri
documentary credit
divestiture /daivestitʃə/ noun the sale

divestiture
| kredit/ noun a credit document used in

of an asset export trade, when a bank issues a letter of
dividend /dividend/ noun 1. a percent-
dividend
credit against shipping documents
age of profits paid to shareholders 왍 to raise documentation /dɒkjυmenteiʃ(ə)n/
documentation
or increase the dividend to pay out a higher noun all the documents referring to some-
dividend than in the previous year 왍 to omit thing 쑗 Please send me the complete docu-
or pass the dividend to pay no dividend 2. mentation concerning the sale.
a number or quantity that is to be divided by dollar /dɒlə/ noun a unit of currency used
dollar
another number or quantity in the US and other countries such as Aus-

75 draft
tralia, Bahamas, Barbados, Bermuda, Bru- tion is accounted for on both the credit and
nei, Canada, Fiji, Hong Kong, Jamaica, New debit side of an account
Zealand, Singapore and Zimbabwe 쑗 The double taxation /db(ə)l tkseiʃ(ə)n/
double taxation
US dollar rose 2%. 쑗 They sent a cheque for noun the act of taxing the same income
fifty Canadian dollars. 쑗 It costs six Austral- twice
ian dollars. double taxation agreement /db(ə)l
double taxation agreement
dollar area /dɒlər eəriə/ noun an area of

dollar area
tkseiʃ(ə)n ərimənt/, double taxa-

| |
the world where the US dollar is the main tion treaty /db(ə)l tkseiʃ(ə)n triti/
|
trading currency noun an agreement between two countries

dollar balances /dɒlə blənsiz/ plural
dollar balances
that a person living in one country shall not
noun a country’s trade balances expressed in be taxed in both countries on the income
US dollars earned in the other country
double taxation relief /db(ə)l tk
double taxation relief
dollar-cost averaging /dɒlər kɒst

dollar-cost averaging
|
v(ə)rid iŋ/ noun 쏡 pound-cost averag- seiʃ(ə)n rilif/ noun a reduction of tax
|
ing payable in one country by the amount of tax

on income, profits or capital gains already
dollar crisis /dɒlə kraisis/ noun a fall in
dollar crisis
paid in another country

the exchange rate for the US dollar
doubtful /daυtf(ə)l/ adjective 왍 doubtful
doubtful
dollar gap /dɒlə p/ noun a situation

dollar gap
debt a debt which may never be paid 왍

where the supply of US dollars is not enough doubtful loan a loan which may never be
to satisfy the demand for them from over- repaid
seas buyers
doubtful debt provision /daυtf(ə)l
doubtful debt provision
dollar millionaire /dɒlə miljəneə/

dollar millionaire
|
det prəvi (ə)n/ noun 쏡 bad debt provi-
|
noun a person who has more than one mil- sion

lion dollars doubtful loan /daυtf(ə)l ləυn/ noun a
doubtful loan
dollar stocks /dɒlə stɒks/ plural noun

dollar stocks
loan which may never be repaid

shares in US companies downgrade /daυnreid/ verb 1. to
downgrade
domestic production /dəmestik prə

domestic production
| | reduce the status of an employee or position

dkʃən/ noun the production of goods for 쑗 The post was downgraded in the company
use in the home country reorganisation. 2. to revise an earlier assess-
domicile /dɒmisail/ noun the country
domicile
ment of a company’s future financial posi-
where someone lives or where a company’s tion, or of the return on an investment, to
office is registered 쐽 verb 왍 she is domi- give a less favourable likely outcome
ciled in Denmark she lives in Denmark down payment /daυn peimənt/ noun
down payment
officially part of a total payment made in advance 쑗

donation /dəυneiʃ(ə)n/ noun a gift, espe-
donation
|
We made a down payment of $100.
downside factor /daυnsaid fktə/,
downside factor
cially to a charity
donee /dəυni/ noun a person who
donee
|
downside potential /daυnsaid pə |
receives a gift from a donor tenʃ(ə)l/ noun the possibility of making a

loss in an investment
donor /dəυnə/ noun a person who gives,
donor
especially someone who gives money downside risk /daυnsaid risk/ noun the
downside risk
risk that an investment will fall in value.

dormant /dɔmənt/ adjective no longer
dormant
Opposite upside potential

active or no longer operating
down time /daυn taim/ noun the time
down time
dormant account /dɔmənt əkaυnt/

dormant account
|
when a machine is not working or not avail-
noun a bank account which is no longer used able because it is broken or being mended
dormant company /dɔmənt
dormant company
downturn /daυntn/ noun a downward

downturn
kmp(ə)ni/ noun company which has not trend in sales or profits 쑗 a downturn in the
made any transactions during an accounting market price 쑗 The last quarter saw a down-
period turn in the economy.
dot.com /dɒt kɒm/, dot-com /dɒt
dot.com
DPP abbreviation direct profit profitability

DPP
kɒm/ noun a business that markets its prod- draft /drɑft/ noun 1. an order for money to
draft
ucts through the Internet, rather than by be paid by a bank 쑗 We asked for payment by
using traditional marketing channels banker’s draft. 2. a first rough plan or docu-
double-entry bookkeeping /db(ə)l ment which has not been finished 쑗 The
double-entry bookkeeping
entri bυkkipiŋ/ noun the most com- finance depart 쑗 A draft of the contract or
monly used system of bookkeeping, based The draft contract is waiting for the MD’s
on the principle that every financial transac- comments. 쑗 He drew up the draft agree-

drafting 76
ment on the back of an envelope. 쐽 verb to cent in urban areas during the period under
make a first rough plan of a document 쑗 to review’ [Business Times (Lagos)]
draft a letter 쑗 to draft a contract 쑗 The ‘…corporate profits for the first quarter
contract is still being drafted or is still in the showed a 4 per cent drop from last year’s
drafting stage. final three months’ [Financial Times]
drafting /drɑftiŋ/ noun an act of prepar- ‘…since last summer American interest
drafting
ing the draft of a document 쑗 The drafting of rates have dropped by between three and
the contract took six weeks. four percentage points’ [Sunday Times]
droplock bond /drɒplɒk bɒnd/ noun a
droplock bond
drain /drein/ noun a gradual loss of money

drain
flowing away 쑗 The costs of the London floating rate bond which will convert to a
office are a continual drain on our fixed rate of interest if interest rates fall to
resources. 쐽 verb to remove something some level. 쒁 debt-convertible bond
gradually 쑗 The expansion plan has drained dry goods /drai υdz/ plural noun cloth,
dry goods
all our profits. 쑗 The company’s capital clothes and household goods
resources have drained away. DTI abbreviation Department of Trade and
DTI
draw /drɔ/ verb 1. to take money away 쑗

draw
Industry
to draw money out of an account 2. to write dual currency bond /djuəl krənsi
dual currency bond
a cheque 쑗 She paid the invoice with a bɒnd/ noun a bond which is paid for in one
cheque drawn on an Egyptian bank. (NOTE: currency but which is repayable in another
drawing – drew – has drawn) on redemption
draw up phrasal verb to write a legal docu-
dual listing /djuəl listiŋ/ noun the list-
dual listing
ment 쑗 to draw up a contract or an agree-

ment 쑗 to draw up a company’s articles of ing of a share on two stock exchanges
dual pricing /djuəl praisiŋ/ noun the
dual pricing
association
drawback /drɔbk/ noun 1. something
drawback practice of setting different prices for a
which is not convenient or which is likely to given product in the different market in
cause problems 쑗 One of the main draw- which it is sold
dual resident /djuəl rezid(ə)nt/ noun
dual resident
backs of the scheme is that it will take six

years to complete. 2. a rebate on customs a person who is legally resident in two coun-
duty for imported goods when these are then tries
dud /dd/ noun, adjective referring to a
dud
used in producing exports

drawdown /drɔdaυn/ noun the act of
drawdown
coin or banknote that is false or not good, or
drawing money which is available under a something that does not do what it is sup-
credit agreement posed to do (informal) 쑗 The £50 note was a
drawee /drɔi/ noun the person or bank
drawee
|
dud.
dud cheque /dd tʃek/ noun a cheque
dud cheque
asked to make a payment by a drawer

drawer /drɔə/ noun the person who
drawer
which cannot be cashed because the person
writes a cheque or a bill asking a drawee to writing it does not have enough money in the
pay money to a payee account to pay it
due /dju/ adjective owed 쑗 a sum due from
due
drawing account /drɔiŋ əkaυnt/

drawing account
a debtor 왍 to fall or become due to be ready

|
noun a current account, or any account from

which the customer may take money when for payment
he or she wants ‘…many expect the US economic indica-
drawings /drɔiŋz/ plural noun money or
drawings
tors for April, due out this Thursday, to
trading stock taken by a partner from a part- show faster economic growth’ [Australian
nership, or by a sole trader from his or her Financial Review]
due date /dju deit/ noun the date on
due date
business
drawings account /drɔiŋz əkaυnt/
drawings account
|
which a debt is required to be paid
due diligence /dju dilid əns/ noun
due diligence
noun an account showing amounts drawn by

partners in a partnership the examination of a company’s accounts
drop /drɒp/ noun a fall 쑗 a drop in sales 쑗
drop
prior to a potential takeover by another
Sales show a drop of 10%. 쑗 The drop in organisation. This assessment is often
prices resulted in no significant increase in undertaken by an independent third party.
dues /djuz/ plural noun orders taken but
dues
sales. 쐽 verb to fall 쑗 Sales have dropped by

10% or have dropped 10%. 쑗 The pound not supplied until new stock arrives
dropped three points against the dollar. dumping /dmpiŋ/ noun the act of get-
dumping
‘…while unemployment dropped by 1.6 ting rid of excess goods cheaply in an over-
per cent in the rural areas, it rose by 1.9 per seas market 쑗 The government has passed

77 duty-paid goods
anti-dumping legislation. 쑗 Dumping of worth of European goods’ [Globe and
goods on the European market is banned. Mail (Toronto)]
Dun & Bradstreet /dn ən brdstrit/
Dun & Bradstreet
‘…the Department of Customs and Excise

noun an organisation which produces collected a total of N79m under the new
reports on the financial rating of companies, advance duty payment scheme’ [Business
and also acts as a debt collection agency. Times (Lagos)]
Abbreviation D&B duty-free
duty-free /djuti fri/ adjective, adverb

duty /djuti/ noun a tax that has to be paid
duty
sold with no duty to be paid 쑗 She bought

쑗 Traders are asking the government to take
duty-free perfume at the airport. 쑗 He
the duty off alcohol or to put a duty on ciga-
rettes. bought the watch duty-free.
duty-paid goods
‘Canadian and European negotiators duty-paid goods /djuti peid υdz/

agreed to a deal under which Canada could plural noun goods where the duty has been
lower its import duties on $150 million paid

E
e- /i/ prefix referring to electronics or the culation is based on average earnings over
e-
Internet three years. 2. the profit made by a company

EAA abbreviation European Accounting
EAA
‘…the US now accounts for more than half
Association of our world-wide sales. It has made a
huge contribution to our earnings turna-
e. & o.e. abbreviation errors and omissions
e. & o.e.
round’ [Duns Business Month]

excepted ‘…last fiscal year the chain reported a
early withdrawal /li wiðdrɔəl/ noun
early withdrawal
|
116% jump in earnings, to $6.4 million or
the act of withdrawing money from a deposit $1.10 a share’ [Barrons]
account before the due date 쑗 Early with- earnings before interest, taxes,
earnings before interest, taxes, depreciation and amortisation
drawal usually incurs a penalty. depreciation and amortisation

earmark
earmark /iəmɑk/ verb to reserve for a /niŋz bifɔ intrəst tksiz di | |
special purpose 쑗 to earmark funds for a priʃieiʃ(ə)n ənd əmɔtaizeiʃ(ə)n/ plu- | |
project 쑗 The grant is earmarked for com- ral noun the earnings generated by a busi-
puter systems development. ness’s fundamental operating performance,
earn
earn /n/ verb 1. to be paid money for frequently used in accounting ratios for
working 쑗 to earn £100 a week 쑗 How much comparison with other companies. Interest
do you earn in your new job? 2. to produce on borrowings, tax payable on those profits,
interest or dividends 쑗 a building society depreciation, and amortisation are excluded
account which earns interest at 10% 쑗 What on the basis that they can distort the under-
level of dividend do these shares earn? lying performance. Abbreviation EBITDA
earnings before interest and tax
earnings before interest and tax
earned income /nd inkm/ noun

earned income
income from wages, salaries, pensions, fees, /niŋz bifɔ intrəst ən tks/ noun the
|
rental income, etc., as opposed to ‘unearned’ amount earned by a business before deduc-
income from investments tions are made for tax and interest payments.
earnest Abbreviation EBIT
earnest /nist/ noun money paid as an earnings cap /niŋz kp/ noun the
earnings cap
initial payment by a buyer to a seller, to upper limit on the amount of salary that can
show commitment to the contract of sale be taken into account when calculating pen-
earning capacity
earning capacity /niŋ kəpsiti/, |

sions
earning power /niŋ paυə/ noun the earnings growth /niŋz rəυθ/ noun
earnings growth
amount of money someone should be able to an increase in profit per share

earn earnings performance /niŋz pə
earnings performance
earning potential /niŋ pətenʃəl/

earning potential
|
fɔməns/ noun a way in which shares earn
noun 1. the amount of money a person dividends
should be able to earn in his or her profes- earnings per share /niŋz pə ʃeə/
earnings per share
sional capacity 2. the amount of dividend plural noun the money earned in dividends
which a share is capable of earning per share, shown as a percentage of the mar-
earning power
earning power /niŋ paυə/ noun the ket price of one share. Abbreviation EPS
amount of money someone should be able to earnings-related contributions
earnings-related contributions
earn 쑗 She is such a fine designer that her /niŋz rileitid kɒntribjuʃ(ə)nz/ plu-
| |
earning power is very large. ral noun contributions to social security

earnings
earnings /niŋz/ plural noun 1. salary, which rise as the employee’s earnings rise
wages, dividends or interest received 쑗 High earnings-related pension /niŋz ri
earnings-related pension
earnings in top management reflect the leitid penʃən/ noun a pension which is
heavy responsibilities involved. 쑗 The cal- linked to the size of a person’s salary

79 economic model
earnings surprises /niŋz səpraiziz/ econometrics /ikɒnəmetriks/ noun
earnings surprises econometrics
| | |
plural noun an announced income level for a the study of the statistics of economics,
company that is significantly higher or lower using computers to analyse these statistics
than that forecast by analysts and make forecasts using mathematical
earnings yield /niŋz jild/ noun the
earnings yield
models
economic /ikənɒmik/ adjective 1. pro-
economic
money earned in dividends per share as a |
percentage of the current market price of the viding enough money to make a profit 쑗 The
share flat is let at an economic rent. 쑗 It is hardly
ease /iz/ verb to fall a little 쑗 The share
ease
economic for the company to run its own
index eased slightly today. warehouse. 2. referring to the financial state
easy market /izi mɑkit/ noun a mar-
easy market of a country 쑗 economic trends 쑗 Economic
ket where few people are buying, so prices planners are expecting a consumer-led
are lower than they were before boom. 쑗 The economic situation is getting
worse. 쑗 The country’s economic system
easy money /izi mni/ noun 1. money
easy money
needs more regulation.

which can be earned with no difficulty 2. a ‘…each of the major issues on the agenda
loan available on easy repayment terms at this week’s meeting is important to the
easy money policy /izi mni pɒlisi/
easy money policy
government’s success in overall economic

noun a government policy of expanding the management’ [Australian Financial
economy by making money more easily Review]
available, e.g. through lower interest rates economical /ikənɒmik(ə)l/ adjective
economical
and easy access to credit saving money or materials or being less

easy terms /izi tmz/ plural noun expensive 쑗 This car is very economical. 왍
easy terms
financial terms which are not difficult to an economical use of resources the fact of
accept 쑗 The shop is let on very easy terms. using resources as carefully as possible
EBIT /ibit/ abbreviation earnings before Economic and Monetary Union
EBIT Economic and Monetary Union
interest and tax /ikənɒmik ən mnit(ə)ri junjən/ noun

EBITDA /ibitdɑ/ abbreviation earnings
EBITDA
|
same as European Monetary Union
economic crisis /ikənɒmik kraisis/,
economic crisis
before interest, taxes, depreciation and

amortisation economic depression /ikənɒmik di |
EBRD abbreviation European Bank for

EBRD
preʃ(ə)n/ noun a situation where a country
Reconstruction and Development is in financial collapse 쑗 The government
e-business /i biznis/ noun a general
e-business
has introduced import controls to solve the
term that refers to any type of business activ- current economic crisis.
economic cycle /ikənɒmik saik(ə)l/
economic cycle
ity on the Internet, including marketing,

branding and research 쑗 E-business is a ris- noun a period during which trade expands,
ing part of the economy. then slows down and then expands again
economic development /ikənɒmik
economic development
‘…the enormous potential of e-business is

that it can automate the link between sup- diveləpmənt/ noun improvements in the
|
pliers and customers’ [Investors Chroni- living standards and wealth of the citizens of
cle] a country 쑗 The government has offered tax
ECB abbreviation European Central Bank
ECB
incentives to speed up the economic devel-
opment of the region. 쑗 Economic develop-
ECGD abbreviation Export Credit Guaran-
ECGD
ment has been relatively slow in the north,

tee Department compared with the rest of the country.
e-commerce /i kɒms/ noun a general
e-commerce
economic forecaster /ikənɒmik

economic forecaster
term that is usually used to refer to the proc- fɔkɑstə/ noun a person who says how he
ess of buying and selling goods over the or she thinks a country’s economy will per-
Internet form in the future
‘…the problem is that if e-commerce takes economic growth /ikənɒmik rəυθ/
economic growth
just a 3 per cent slice of the market that noun the rate at which a country’s national
would be enough to reduce margins to rib- income grows
bons’ [Investors Chronicle]
economic life /ikənɒmik laif/ noun
economic life
‘…the new economy requires new com-

pany structures. He believes that other the extent of trade and manufacturing in a
blue-chip organizations are going to find country, regarded as a measure of its relative
that new set-ups would be needed to attract prosperity
economic model /ikənɒmik mɒd(ə)l/
economic model
and retain the best talent for e-commerce’

[Times] noun a computerised plan of a country’s

economic order quantity 80

economic system, used for forecasting eco- introduce economies or economy meas-
nomic trends ures into the system to start using methods
economic order quantity /ikənɒmik
economic order quantity
to save money or materials 2. the financial
ɔdə kwɒntiti/ noun the quantity of stocks state of a country, or the way in which a
which a company should hold, calculated on country makes and uses its money 쑗 The
the basis of the costs of warehousing, of country’s economy is in ruins.
lower unit costs because of higher quantities economy drive /ikɒnəmi draiv/ noun a
economy drive
purchased, the rate at which stocks are used, vigorous effort to save money or materials
and the time it takes for suppliers to deliver ECP abbreviation Eurocommercial paper
ECP
new orders. Abbreviation EOQ

ecu /ekju/, ECU abbreviation European
ecu
economic planning /ikənɒmik

economic planning
Currency Unit
plniŋ/ noun plans made by a government
ED abbreviation exposure draft
ED
for the future financial state of a country

EDI abbreviation electronic data inter-
EDI
economics /ikənɒmiks/ noun the

economics
study of the production, distribution, selling change

and use of goods and services 쐽 plural noun EEA abbreviation European Economic
EEA
the study of financial structures to show how Area

a product or service is costed and what effect /ifekt/ noun 1. a result 쑗 The effect
effect
returns it produces 쑗 I do not understand the of the pay increase was to raise productivity
economics of the coal industry. (NOTE: [all levels. 2. an operation 왍 terms of a contract
senses] takes a singular verb) which take effect or come into effect from
economic sanctions /ikənɒmik
economic sanctions
January 1st terms which start to operate on

sŋkʃ(ə)nz/ plural noun restrictions on January 1st 3. meaning 왍 a clause to the
trade that foreign governments impose with effect that a clause which means that 쐽 verb
the aim of influencing the political situation to carry out
of a country 쑗 to impose economic sanctions effective /ifektiv/ adjective 1. actual, as
effective
on a country opposed to theoretical 2. 왍 a clause effec-

economic stagnation /ikənɒmik
economic stagnation
tive as from January 1st a clause which

stneiʃ(ə)n/ noun a lack of expansion in
|
starts to be applied on January 1st 3. produc-
the economy ing results 쑗 Advertising in the Sunday
economic value added /ikənɒmik
economic value added
papers is the most effective way of selling. 쑗

vlju did/ noun a way of judging finan- She is an effective marketing manager. 쒁
cial performance by measuring the amount cost-effective
by which the earnings of a project, an oper- effective annual rate /ifektiv njuəl
effective annual rate
ation or a company exceed or fall short of reit/ noun the average interest rate paid on
the total amount of capital that was origi- a deposit for a period of a year. It is the total
nally invested by its owners. Abbreviation interest received over 12 months expressed
EVA as a percentage of the principal at the begin-
economies of scale /ikɒnəmiz əv
economies of scale
|
ning of the period.
skeil/ plural noun the cost advantages of a effective date /ifektiv deit/ noun the
effective date
company producing a product in larger date on which a rule or contract starts to be

quantities so that each unit costs less to applied, or on which a transaction takes
make. Compare diseconomies of scale place
economies of scope /ikɒnəmiz əv
economies of scope
effective demand /ifektiv dimɑnd/

| effective demand
skəυp/ plural noun the cost advantages of a | |
company producing a number of products or noun demand for a product made by individ-
engaging in a number of profitable activities uals and institutions with sufficient wealth
that use the same technology pay for it
effective exchange rate /ifektiv iks
effective exchange rate
economist /ikɒnəmist/ noun a person

economist
| |
|
who specialises in the study of economics 쑗 tʃeind reit/ noun a rate of exchange for a
Government economists are forecasting a currency calculated against a basket of cur-
growth rate of 3% next year. 쑗 An agricul- rencies
effective price /ifektiv prais/ noun a
effective price
tural economist studies the economics of the |
agriculture industry. share price which has been adjusted to allow

economy /ikɒnəmi/ noun 1. an action
economy
|
for a rights issue
effective rate /ifektiv reit/ noun the
effective rate
which is intended to stop money or materials |
from being wasted, or the quality of being real interest rate on a loan or deposit, i.e., the
careful not to waste money or materials 왍 to APR

81 embargo
effective tax rate /ifektiv tks reit/ standard format used when business docu-
effective tax rate
noun the average tax rate applicable to a ments such as invoices and purchase orders
given transaction, whether it is income from are exchanged over electronic networks
work undertaken, the sale of an asset, or a such as the Internet. Abbreviation EDI
gift, taking into account personal allowances electronic funds transfer /elektrɒnik
electronic funds transfer
and scales of tax. It is the amount of money fndz trnsf/ noun the system used by
generated by the transaction divided by the banking organisations for the movement of
additional tax payable because of it. funds between accounts and for the provi-
effective yield /ifektiv jild/ noun
effective yield
| sion of services to the customer. Abbrevia-

actual yield shown as a percentage of the tion EFT
price paid after adjustments have been made electronic funds transfer at point of
electronic funds transfer at point of sale
efficiency ratio /ifiʃ(ə)nsi reiʃiəυ/

efficiency ratio
| sale /elektrɒnik fndz trnsf ət

noun a measure of the efficiency of a busi- pɔint əv seil/ noun the payment for goods
ness, expressed as expenditure divided by or services by a bank customer using a card
revenue that is swiped through an electronic reader
efficiency
efficiency variance
variance /ifiʃ(ə)nsi | on the till, thereby transferring the cash from

veəriəns/ noun the discrepancy between the customer’s account to the retailer’s or
the actual cost of making a product and the service provider’s account. Abbreviation
standard cost EFTPOS
Electronic Lodgement Service
Electronic Lodgement Service
Efficient Market Hypothesis /i

Efficient Market Hypothesis
fiʃ(ə)nt mɑkit haipɒθəsis/, Efficient | /elektrɒnik lɒd mənt svis/ noun a

Markets Hypothesis /ifiʃ(ə)nt mɑkits | British system for filing your tax return elec-
haipɒθəsis/ noun the hypothesis that all
| tronically. Abbreviation ELS
relevant information is immediately electronic point of sale /elektrɒnik
electronic point of sale
reflected in the price of a security. Abbrevi- pɔint əv seil/ noun a system where sales
ation EMH are charged automatically to a customer’s
EFT abbreviation electronic funds transfer credit card and stock is controlled by the
EFT
EFTA abbreviation European Free Trade

EFTA
shop’s computer. Abbreviation EPOS
Association electronic version of the tax return
electronic version of the tax return
EFTPOS /eftpɒz/ abbreviation electronic

EFTPOS
/elektrɒnik vʃ(ə)n əv ðə tks ritn/ |
funds transfer at point of sale noun a method of making an individual’s tax

EIB abbreviation European Investment
EIB
return using email. Abbreviation EVR
ELS abbreviation Electronic Lodgement
ELS
Bank
eighty/twenty law /eiti twenti rul/,
eighty/twenty law
Service
email /imeil/, e-mail noun 1. a system of
email
80/20 law noun the rule that a small percent-

age of customers may account for a large sending messages from one computer termi-
percentage of sales. 쒁 Pareto’s Law nal to another, using a modem and telephone
EIS abbreviation Enterprise Investment
EIS
lines 쑗 You can contact me by phone or
Scheme email if you want. 2. a message sent elec-
elastic /ilstik/ adjective able to expand
elastic
|
tronically 쑗 I had six emails from him today.
or contract easily because of small changes 쐽 verb to send a message from one compu-
in price ter to another, using a modem and telephone
lines 쑗 She emailed her order to the ware-
elasticity /ilstisiti/ noun the ability to
elasticity
|
house. 쑗 I emailed him about the meeting.
change easily in response to a change in cir-
embargo /imbɑəυ/ noun 1. a govern-
embargo
cumstances |
ment order which stops a type of trade 왍 to

eldercare /eldəkeə/ noun assurance serv-
eldercare
impose or put an embargo on trade with a

ices sold to elderly people and their families
country to say that trade with a country
-elect /ilekt/ suffix referring to a person
-elect
must not take place 쑗 The government has

who has been elected but has not yet started put an embargo on the export of computer
the term of office equipment. 2. a period of time during which
electronic banking /elektrɒnik
electronic banking
specific information in a press release must

bŋkiŋ/ noun the use of computers to not be published (NOTE: The plural is
carry out banking transactions such as with- embargoes.) 쐽 verb 1. to stop trade, or not
drawals through cash dispensers or transfer to allow something to be traded 쑗 The gov-
of funds at point of sale ernment has embargoed trade with coun-
electronic data interchange
electronic data interchange
tries that are in breach of international

/elektrɒnik deitə intətʃeind / noun a agreements. 2. not to allow publication of

embezzle 82
information for a period of time 쑗 The news employment contract /implɔimənt
employment contract
of the merger has been embargoed until next kɒntrkt/ noun same as contract of
Wednesday. employment
embezzle /imbez(ə)l/ verb to use ille- employment income /implɔimənt
embezzle employment income
| |
gally money which is not yours, or which inkm/ noun money received from an
you are looking after for someone 쑗 He was employer, e.g. salary, fees, commission,
sent to prison for six months for embezzling bonus, fringe benefits
his clients’ money. EMS abbreviation European Monetary Sys-
EMS
embezzlement /imbez(ə)lmənt/ noun

embezzlement
| tem
the act of embezzling 쑗 He was sent to EMU abbreviation 1. Economic and Mone-
EMU
prison for six months for embezzlement. tary Union 2. European Monetary Union
embezzler /imbez(ə)lə/ noun a person
embezzler
encash /inkʃ/ verb to cash a cheque, to

encash
|
|
who embezzles exchange a cheque for cash

EMH abbreviation Efficient Market
EMH
encashable /inkʃəb(ə)l/ adjective pos-

encashable
Hypothesis sible to cash

emoluments /imɒljυmənts/ plural noun
emoluments
encashment /inkʃmənt/ noun an act

encashment
|
|
pay, salary or fees, or the earnings of direc- of exchanging something for cash
tors who are not employees (NOTE: US Eng- encumbrance /inkmbrəns/ noun a lia-
encumbrance
lish uses the singular emolument.) bility which is attached usually to a property
employed /implɔid/ adjective 1. in regu-
employed
|
or land, e.g. a mortgage or charge
lar paid work 2. referring to money used endorse /indɔs/ verb to say that a prod-
endorse
profitably 쐽 plural noun people who are

|
uct is good 왍 to endorse a bill or a cheque

working 쑗 the employers and the employed to sign a bill or cheque on the back to show
employee /implɔii/ noun a person
employee
|
that you accept it
employed by another 쑗 Employees of the endorsee /endɔsi/ noun a person
endorsee
firm are eligible to join a profit-sharing whose name is written on a bill or cheque as
scheme. 쑗 Relations between management having the right to cash it
and employees are good. 쑗 The company
endorsement /indɔsmənt/ noun 1. the
endorsement
has decided to take on new employees. |
act of endorsing 2. a signature on a docu-

‘…companies introducing robotics think it ment which endorses it 3. a note on an insur-
important to involve individual employees
in planning their introduction’ [Econo- ance policy which adds conditions to the
mist] policy
endorser /indɔsə/ noun a person who
endorser
employee contribution /implɔii

employee contribution
|
|
kɒntribjuʃ(ə)n/ noun a contribution paid

|
endorses a bill or cheque which is then paid
by an employee towards his or her pension to him or her
endowment /indaυmənt/ noun the act
endowment
employee share ownership plan /im

employee share ownership plan
|
|
plɔii ʃeər əυnəʃip pln/, employee of giving money to provide a regular income
endowment assurance /indaυmənt ə
endowment assurance
share ownership programme /implɔii |

| |
ʃeər əυnəʃip prəυrm/, employee ʃυərəns/, endowment insurance /in |
share scheme /implɔii ʃeə skim/ |

daυmənt inʃυərəns/ noun an insurance
|
noun a plan which allows employees to policy where a sum of money is paid to the
obtain shares in the company for which they insured person on a specific date or to his
work, though tax may be payable if the heirs if he dies before that date
endowment mortgage /indaυmənt
endowment mortgage
shares are sold to employees at a price which |
is lower than the current market price. mɔid / noun a mortgage in which the ini-
Abbreviation ESOP tial sum borrowed is repaid at the end of the
employer /implɔiə/ noun a person or
employer
|
loan term by the proceeds of an insurance
company that has regular employees and policy linked to it
endowment policy /indaυmənt
endowment policy
pays them |
employer’s contribution /implɔiəz

employer’s contribution
|
pɒlisi/ noun same as endowment assur-
kɒntribjuʃ(ə)n/ noun money paid by an
|
ance
end product /end prɒdkt/ noun a
end product
employer towards an employee’s pension

employers’ liability insurance /im
employers’ liability insurance
|
manufactured product resulting from a pro-
plɔiəz laiəbiliti inʃυərəns/ noun insur-
| |
duction process
ance to cover accidents which may happen energy costs /enəd i kɒsts/ plural noun
energy costs
at work, and for which the company may be costs of gas, electricity, etc., as shown in
responsible accounts

83 equally
enforce /infɔs/ verb to make sure some- entity /entiti/ noun a single separate body
enforce entity
thing is done or that a rule is obeyed 쑗 to or organisation

enforce the terms of a contract entity accounting /entiti əkaυntiŋ/
entity accounting
enforcement /infɔsmənt/ noun the act

enforcement
| noun a form of accounting in which

of making sure that something is obeyed 쑗 accounts are prepared for an entity which is
enforcement of the terms of a contract smaller than or distinct from a company, e.g.
engagement /ineid mənt/ noun an
engagement
|
for a branch or a particular activity
entrepreneur /ɒntrəprən/ noun a
entrepreneur
agreement to do something |
engagement letter /ineid mənt

engagement letter
|
person who is willing to take commercial
letə/ noun a letter, usually required by pro- risks by starting or financing commercial
fessional standards, sent by an accountant to enterprises
entrepreneurial /ɒntrəprənriəl/
entrepreneurial
a client setting out the work the accountant |
is to do and further administrative matters, adjective taking commercial risks 쑗 an

such as any limit on the accountant’s liabil- entrepreneurial decision
ity entry /entri/ noun 1. an item of written
entry
entail /inteil/ noun a legal condition

entail
| information put in an accounts ledger (NOTE:

which passes ownership of a property only The plural is entries.) 2. an act of going in
to some specific persons or the place where you can go in 쑗 to pass a
enterprise /entəpraiz/ noun 1. a system
enterprise
customs entry point 쑗 entry of goods under
of carrying on a business 2. a business bond
entry price /entri prais/ noun the
entry price
enterprise accounting /entəpraiz ə

enterprise accounting
kaυntiŋ/ noun accounts prepared for the replacement cost of an asset recorded in an
whole of a business, not merely for a depart- account
entry value /entri vlju/ noun replace-
entry value
ment or other subdivisions

Enterprise Investment Scheme
Enterprise Investment Scheme
ment cost, the cost of replacing an asset
/entəpraiz investmənt skim/ noun a |
already bought or a service already received
scheme which provides income and capital and accounted for
environmental accounting /in
environmental accounting
gains tax relief for people prepared to risk |
investing in a single unquoted or AIM-listed vairənment(ə)l əkaυntiŋ/ noun the prac-

|
trading company. Abbreviation EIS tice of including the indirect costs and bene-
enterprise resource
enterprise resource planning
planning fits of a product or activity, e.g. its environ-

/entəpraiz rizɔs plniŋ/ noun a sophis- |
mental effects on health and the economy,
ticated computerised management system along with its direct costs when making
that connects multiple business operations, business decisions
environmental reporting /invairən
environmental reporting
e.g. personnel, the financial accounting sys- | |
tem, production and distribution, and can ment(ə)l ripɔtiŋ/ noun the process in
|
also connect the business with its suppliers which a UK company reports on its use of
and customers. Abbreviation ERP resources and its generation and disposal of
enterprise zone /entəpraiz zəυn/ noun
enterprise zone
waste to the Department for Environment,
an area of the country where businesses are Food and Rural Affairs
EOQ abbreviation economic order quantity
EOQ
encouraged to develop by offering special

conditions such as easy planning permission epos /ipɒs/, EPOS, EPoS abbreviation
epos
for buildings or a reduction in the business electronic point of sale

rate EPS abbreviation earnings per share
EPS
entertainment allowance /entə

entertainment allowance
equal /ikwəl/ adjective exactly the same

equal
|
teinmənt əlaυəns/ noun an amount of |

쑗 Male and female employees have equal
money set aside by a company for entertain- pay. 쐽 verb to be the same as 쑗 Production
ing clients and visitors this month has equalled our best month ever.
entertainment expenses /entə
entertainment expenses
| (NOTE: equalling – equalled. The US spell-

teinmənt ikspensiz/ plural noun money | ing is equaling – equaled.)
spent on giving meals to business visitors equalise /ikwəlaiz/, equalize verb to
equalise
entitle /intait(ə)l/ verb to give the right to make equal 쑗 to equalise dividends
entitle
someone to have something 쑗 After one equally /ikwəli/ adverb so that each has
equally
year’s service the employee is entitled to or pays the same, or to the same degree 쑗
four weeks’ holiday. Costs will be shared equally between the two
entitlement /intait(ə)lmənt/ noun a per- parties. 쑗 They were both equally responsi-
entitlement
son’s right to something ble for the disastrous launch.

equate 84
equate /ikweit/ verb to reduce to a stand- future earnings (NOTE: The UK term is
equate
ard value equity sweetener.)

equity share capital /ekwiti ʃeə
equity share capital
equation /ikwei (ə)n/ noun a set of

equation
mathematical rules applied to solve a prob- kpit(ə)l/ noun a company’s issued share
lem 쑗 The basic accounting equation is that capital less capital which carries preferential
assets equal liabilities plus equity. rights. Equity share capital normally com-
equilibrium /ikwilibriəm/ noun the
equilibrium
|
prises ordinary shares.
equity sweetener /ekwiti swit(ə)nə/
equity sweetener
state of balance in the economy where sup-

ply equals demand or a country’s balance of noun an incentive to encourage people to
payments is neither in deficit nor in excess lend a company money, in the form of a war-
equities /ekwitiz/ plural noun ordinary
equities
rant giving the right to buy shares at a later
shares date and at an agreed price
equivalence /ikwivələns/ noun the con-
equivalence
‘…in the past three years commercial |
property has seriously underperformed dition of having the same value or of being
equities and dropped out of favour as a the same
equivalent /ikwivələnt/ noun a person
equivalent
result’ [Investors Chronicle] |
equity /ekwiti/ noun 1. the right to

equity
who is the equal of someone else
equivalent production /ikwivələnt
equivalent production
receive dividends from the profit of a com- |
pany in which shares are owned 2. the value prədkʃən/ noun a way of measuring units
|
of a company that is the property of its produced by a company that combines parts
shareholders, calculated as the value of the of units produced into whole-unit equiva-
company’s assets minus the value of its lia- lents
equivalent taxable yield /ikwivələnt
equivalent taxable yield
bilities, not including the ordinary share |
capital 3. the value of an asset minus any tksəb(ə)l jild/ noun the level of taxable
loans outstanding on it 4. a fair system of investment required to provide the same
laws, the system of British law which devel- return as some other form of investment
oped in parallel with the common law to equivalent unit /ikwivələnt junit/
equivalent unit
make the common law fairer, summarised in noun a unit of unfinished production calcu-
the maxim ‘equity does not suffer a wrong to lated for valuation purposes when work
be without a remedy’ started during the period is not finished at
equity accounting /ekwiti əkaυntiŋ/ the end of the period, or when work started
equity accounting
noun a method of accounting which puts during the previous period is finished during
part of the profits of a subsidiary into the the current period
parent company’s books ERP abbreviation enterprise resource plan-
ERP
equity capital /ekwiti kpit(ə)l/ noun

equity capital
ning
the nominal value of the shares owned by the errors and omissions excepted
errors and omissions excepted
ordinary shareholders of a company (NOTE: /erəz ənd əυmiʃ(ə)nz ikseptid/ phrase

| |
Preference shares are not equity capital. If words written on an invoice to show that the
the company were wound up, none of the company has no responsibility for mistakes
equity capital would be distributed to prefer- in the invoice. Abbreviation e. & o.e.
ence shareholders.) ESC abbreviation European Social Charter
ESC
equity dividend cover /ekwiti

equity dividend cover
escalate /eskəleit/ verb to increase stead-

escalate
dividend kvə/ noun an accounting ratio, ily

calculated by dividing the distributable prof- escalator clause /eskəleitə klɔz/,
escalator clause
its during a given period by the actual divi- escalation clause noun a clause in a con-
dend paid in that period, that indicates the tract allowing for regular price increases
likelihood of the dividend being maintained because of increased costs, or regular wage
in future years. 쒁 capital reserves increases because of the increased cost of
equity finance /ekwiti fainns/ noun
equity finance
living
finance for a company in the form of ordi- escape clause /iskeip klɔz/ noun a
escape clause
nary shares paid for by shareholders clause in a contract which allows one of the
equity gearing /ekwiti iəriŋ/ noun
equity gearing
parties to avoid carrying out the terms of the

the ratio between a company’s borrowings at contract under conditions
interest and its ordinary share capital escrow /eskrəυ/ noun US an agreement
escrow
equity kicker /ekwiti kikə/ noun US an

equity kicker
between two parties that something should

incentive given to people to lend a company be held by a third party until conditions are
money, in the form of a warrant to share in fulfilled

85 Euroland
escrow account /eskrəυ əkaυnt/ noun estimator /estimeitə/ noun a person
escrow account estimator
US an account where money is held in whose job is to calculate estimates for carry-
escrow until a contract is signed or until ing out work
goods are delivered EU abbreviation European Union 쑗 EU
EU
ESOP abbreviation employee share owner-

ESOP
ministers met today in Brussels. 쑗 The US is

ship plan increasing its trade with the EU.
establishment /istbliʃmənt/ noun 1. euro /jυərəυ/ noun a unit of currency
establishment euro
a commercial business 쑗 He runs an impor- adopted by several European countries for

tant printing establishment. 2. the number of electronic payments in 1999 and then as
people working in a company legal tender from January 1st, 2002 쑗 Many
establishment
establishment charges
charges /i |
articles are priced in euros. 쑗 What’s the
stbliʃmənt tʃɑd iz/ plural noun the exchange rate for the euro? (NOTE: The plu-
cost of people and property in a company’s ral is euro or euros. Written € before num-
accounts bers: €250: say: ‘two hundred and fifty
estate /isteit/ noun property left by a
estate
|
euros’.)
dead person ‘…cross-border mergers in the European
estate accounting /isteit əkaυntiŋ/
estate accounting
| |
Union have shot up since the introduction
noun the preparation of financial accounts of the euro’ [Investors Chronicle]
Euro- /jυərəυ/ prefix referring to Europe or
Euro-
by the person administering the estate of

someone deceased the European Union
euro account /jυərəυ əkaυnt/ noun a
euro account
estate duty /isteit djuti/ noun a tax

estate duty
|
|
paid on the property left by a dead person bank account in euros

Eurobond /jυərəυbɒnd/ noun a long-
Eurobond
(NOTE: now called inheritance tax)

estate tax /isteit tks/ noun US a tax
estate tax
|
term bearer bond issued by an international
paid on the right to pass property on to heirs, corporation or government outside its coun-
based on the value of the property and paid try of origin and sold to purchasers who pay
before it is passed to the heirs in a Eurocurrency, sold on the Eurobond
estimate noun /estimət/ 1. a calculation
estimate market
Eurocheque /jυərəυtʃek/ noun a
Eurocheque
of the probable cost, size or time of some-

thing 쑗 Can you give me an estimate of how cheque which can be cashed in any Euro-
much time was spent on the job? 2. a calcu- pean bank. The Eurocheque system is based
lation by a contractor or seller of a service of in Brussels.
Eurocommercial paper
Eurocommercial paper
how much something is likely to cost, given

to a client in advance of an order 쑗 You /jυərəυtkəmʃ(ə)l peipə/ noun a form
should ask for an estimate before commit- of short-term borrowing in Eurocurrencies.
ting yourselves. 쑗 Before we can give the Abbreviation ECP
eurocredit /jυərəυkredit/ noun a large
eurocredit
grant we must have an estimate of the total |
costs involved. 쑗 Unfortunately the final bill bank loan in a Eurocurrency, usually pro-
was quite different from the estimate. 쐽 verb vided by a group of banks to a large com-
/estimeit/ to calculate the probable cost, mercial undertaking
size, or time of something 쑗 to estimate that Eurocurrency /jυərəυkrənsi/ noun
Eurocurrency
it will cost £1m or to estimate costs at £1m 쑗 any currency used for trade within Europe
We estimate current sales at only 60% of last but outside its country of origin, the Euro-
year. dollar being the most important 쑗 a Euro-
estimated /estimeitid/ adjective calcu-
estimated
currency loan 쑗 the Eurocurrency market
lated approximately 쑗 estimated sales 쑗 eurodeposit /jυərəυdipɒzit/ noun a
eurodeposit
Costs were slightly more than the estimated deposit of Eurodollars in a bank outside the
figure. US
estimated cost /estimeitid kɒst/ noun Eurodollar /jυərəυdɒlə/ noun a US dol-
estimated cost Eurodollar
necessary future expenditure that the pur- lar deposited in a bank outside the US, used
chase of something entails, e.g. future run- mainly for trade within Europe 쑗 a Eurodol-
ning costs or future repairs lar loan 쑗 the Eurodollar markets
estimated liability /estimeitid laiə euroequity /jυərəυekwiti/ noun a share
estimated liability euroequity
| |
biliti/ noun a liability that exists but has a in an international company traded on Euro-
cost that can only be estimated as yet, as can pean stock markets outside its country of
any future tax liability origin
estimation /estimeiʃ(ə)n/ noun an Euroland /jυərəυlnd/ noun same as
estimation Euroland
approximate calculation Eurozone

euronote 86
euronote /jυərəυnəυt/ noun a short- European Financial Reporting Advi-
euronote European Financial Reporting Advisory Group
term Eurocurrency bearer note sory Group /jυərəpiən fainnʃ(ə)l ri | | |
euro-option /jυərəυ ɒpʃ(ə)n/ noun an

euro-option
pɔtiŋ/ noun a group that advises on the
option to buy European bonds at a later date technical assessment of accounting stand-
ards in Europe
Europe /jυərəp/ noun 1. the continent of
Europe
European Free Trade Association

European Free Trade Association
Europe, the part of the world to the west of

Asia, from Russia to Ireland 쑗 Most of the /jυərəpiən fri treid əsəυsieiʃ(ə)n/
| |
countries of Western Europe are members of noun a group of countries (Iceland, Liech-
the EU. 쑗 Poland is in eastern Europe, and tenstein, Norway and Switzerland) formed
Greece, Spain and Portugal are in southern to encourage freedom of trade between its
Europe. 2. the European Union, including members, and linked with the EU in the
the UK 쑗 Canadian exports to Europe have European Economic Area. Abbreviation
risen by 25%. EFTA
European Investment Bank
European Investment Bank
European /jυərəpiən/ adjective refer-

European
ring to Europe 쑗 They do business with sev- /jυərəpiən investmənt bŋk/ noun a |
eral European countries. financial institution whose main task is to

facilitate regional development within the
European Accounting Association
European Accounting Association
EU by financing capital projects, modernis-

/jυərəpiən əkaυntiŋ əsəυsieiʃ(ə)n/ | |
ing or converting undertakings, and devel-
noun an organisation for teachers and oping new activities. Abbreviation EIB
researchers in accountancy, founded in 1977
European Monetary System
European Monetary System
and based in Brussels, that aims to be a

/jυərəpiən mnit(ə)ri sistəm/ noun the
forum for European research in the subject.
Abbreviation EAA first stage of economic and monetary union
of the EU, which came into force in March
European Bank for Reconstruction
European Bank for Reconstruction and Development
1979, giving stable, but adjustable,

and Development /jυərəpiən bŋk fə exchange rates. Abbreviation EMS
rikənstrktʃ(ə)n ən diveləpmənt/ noun
| |
European Monetary
European Monetary Union
Union
a bank, based in London, which channels aid /jυərəpiən mnit(ə)ri junjən/ noun
from the EU to Eastern European and Cen- the process by which some of the member
tral Asian countries. Abbreviation EBRD states of the EU joined together to adopt the
European Central Bank /jυərəpiən
European Central Bank
euro as their common currency on 1st Janu-

sentrəl bŋk/ noun the central bank for ary 1999. The euro became legal tender for
most of the countries in the European Union, these member states from 2002. Abbrevia-
those which have accepted European Mone- tion EMU
tary Union and have the euro as their com- European Social Charter /jυərəpiən
European Social Charter
mon currency. Abbreviation ECB səυʃ(ə)l tʃɑtə/ noun a charter for

‘…the ECB begins with some $300 billion employees, drawn up by the EU in 1989, by
of foreign exchange reserves, far more which employees have the right to a fair
than any other central bank’ [Investors wage, and to equal treatment for men and
Chronicle] women, a safe work environment, training,
‘…any change in the European bank’s freedom of association and collective bar-
statutes must be agreed and ratified by all gaining, provision for disabled workers,
EU member nations’ [The Times] freedom of movement from country to coun-
European Currency Unit /jυərəpiən try, guaranteed standards of living both for
European Currency Unit
krənsi junit/ noun the official monetary the working population and for retired peo-
unit of the European Union from 1979 to ple. Abbreviation ESC. Also called Social
1999. Abbreviation ECU Charter
European Union /jυərəpiən junjən/
European Union
European Economic Area

European Economic Area
/jυərəpiən ikənɒmik eəriə/ an area noun a group of European countries linked

comprising the countries of the EU and the together by the Treaty of Rome. Abbrevia-
members of EFTA, formed by an agreement tion EU
on trade between the two organisations. euroyen /jυərəυjen/ noun a Japanese
euroyen
Abbreviation EEA yen deposited in a European bank and used

European Federation of Account-
European Federation of Accountants
for trade within Europe
ants /jυərəpiən fedəreiʃ(ə)n əv ə Eurozone /jυərəυzəυn/ noun the Euro-
Eurozone
kaυntənts/ noun the representative organi- pean countries which use the euro as a com-
sation for the accountancy profession in mon currency, seen as a group. Also called
Europe Euroland

87 exchange controls
‘…the European Central Bank left the because of their size or nature (NOTE: Such
door open yesterday for a cut in Eurozone items are shown separately in a note to the
interest rates’ [Financial Times] company’s accounts but not on the face of
‘…a sustained recovery in the euro will the P & L account unless they are profits or
require either a sharp slowdown in US losses on the sale or termination of an oper-
growth or a rise in inflation and interest ation, or costs of a fundamental reorganisa-
rates in the Eurozone beyond that already tion or restructuring which have a material
discounted’ [Investors Chronicle] effect on the nature and focus of the report-
EVA abbreviation economic value added
EVA
ing entity’s operations, or profits or losses

evade /iveid/ verb to try to avoid some-
evade
| on the disposal of fixed assets.) 2. items in

thing 왍 to evade tax to try illegally to avoid a balance sheet which do not appear there
paying tax each year and which are included in the
evaluate /ivljueit/ verb to calculate a
evaluate
|
accounts before the pre-tax profit is calcu-
value for something 쑗 to evaluate costs 쑗 lated, as opposed to extraordinary items
We will evaluate jobs on the basis of their which are calculated after the pre-tax profit
exception report /iksepʃən ripɔt/
exception report
contribution to the organisation as a whole. | |
쑗 We need to evaluate the experience and noun a report which flags discrepancies
qualifications of all the candidates. between a company’s actual and expected
evaluation /ivljueiʃ(ə)n/ noun the
evaluation
| |
performance, used to identify issues which
process of calculating the value of an asset then need investigating
excess /ekses/; /ikses/ noun, adjective
excess
evasion /ivei (ə)n/ noun the act of avoid-

evasion
|
|
ing something an amount which is more than what is

EVR abbreviation electronic version of the
EVR
allowed 쑗 an excess of expenditure over rev-
tax return enue 쑗 Excess costs have caused us consid-
ex /eks/ prefix out of or from 쐽 adverb
ex
erable problems.
excess capacity /ekses kəpsiti/
excess capacity
without |
exact /izkt/ adjective strictly correct,

exact
|
noun spare capacity which is not being used
excess profit /ekses prɒfit/ noun a
excess profit
not varying in any way from, e.g. not any

more or less than, what is stated 쑗 The exact level of profit that is higher than a level
time is 10.27. 쑗 The salesgirl asked me if I regarded as normal
had the exact sum, since the shop had no excess profits tax /ekses prɒfits
excess profits tax
change. tks/ noun a tax on excess profit

exact interest /izkt intrəst/ noun excess reserves /ikses rizvz/ plural
exact interest excess reserves
| | |
annual interest calculated on the basis of 365 noun US reserves held by a financial institu-
days, as opposed to ordinary interest which tion that are higher than those required by
is calculated on 360 days the regulatory authorities. As such reserves
exactly /izktli/ adverb not varying in
exactly
| may indicate that demand for loans is low,

any way from, e.g. not any more or less than, banks often sell their excess reserves to
what is stated 쑗 The total cost was exactly other institutions. Compare required
£6,500. reserves
ex-all /eks ɔl/ adjective referring to a exchange /ikstʃeind / noun 1. the act of
ex-all exchange
share price where the share is sold without giving one thing for another 2. a market for
the dividend, rights issue or any other cur- shares, commodities, futures, etc. 쐽 verb 1.
rent issue. Abbreviation xa 왍 to exchange something (for something
ex ante /eks nti/ adverb a Latin phrase
ex ante
else) to give one thing in place of something
meaning ‘before the event’. Compare ex else 쑗 He exchanged his motorcycle for a
post (NOTE: An ex ante budget, or standard, car. 쑗 Goods can be exchanged only on pro-
is set before a period of activity com- duction of the sales slip. 2. to change money
mences, and is based on the best informa- of one country for money of another 쑗 to
tion available at that time on expected levels exchange euros for pounds
of cost, performance, etc.) ‘…under the barter agreements, Nigeria
exceed /iksid/ verb to be more than 쑗 a
exceed
|
will export crude oil in exchange for
discount not exceeding 15% 쑗 Last year trucks, food, planes and chemicals’ [Wall
costs exceeded 20% of income for the first Street Journal]
exchangeable /ikstʃeind əb(ə)l/
exchangeable
time. |
exceptional
exceptional items
items /iksepʃən(ə)l |
adjective possible to exchange
aitəmz/ plural noun 1. items which arise exchange controls /ikstʃeind kən
exchange controls
| |
from normal trading but which are unusual trəυlz/ plural noun government restrictions

exchange cross rates 88

on changing the local currency into foreign excise duty /eksaiz djuti/ noun a tax
excise duty
currency 쑗 The government had to impose on goods such as alcohol and petrol which
exchange controls to stop the rush to buy are produced in the country
dollars. 쑗 They say the government is going excise tax /iksaiz tks/ noun US a tax
excise tax
to lift exchange controls. levied for a particular purpose

exchange cross rates /ikstʃeind
exchange cross rates
exclude /iksklud/ verb to keep out, or

exclude
|
krɒs reits/ plural noun rates of exchange

|
not to include 쑗 The interest charges have

for two currencies, shown against each been excluded from the document. 쑗 Dam-
other, but in terms of a third currency, often age by fire is excluded from the policy.
the US dollar
exclusion clause /iksklu (ə)n klɔz/
exclusion clause
exchange dealer /ikstʃeind dilə/

exchange dealer |
|
noun a person who buys and sells foreign noun a clause in an insurance policy or war-
currency ranty which says which items or events are
not covered
exchange dealings /ikstʃeind
exchange dealings
exclusive agreement /iksklusiv ə

exclusive agreement
diliŋz/ plural noun the buying and selling | |
of foreign currency rimənt/ noun an agreement where a per-

exchange gain /ikstʃeind ein/,
exchange gain
|
son is made sole agent for a product in a
exchange loss /ikstʃeind lɒs/ noun a|
market
exclusive of tax /iksklusiv əv tks/
exclusive of tax
gain or loss made from changes in the |
exchange rate which take place during the adjective not including tax 쑗 All payments
period of the transaction are exclusive of tax.
exclusivity /eksklusiviti/ noun the
exclusivity
exchange premium /ikstʃeind

exchange premium
| |
primiəm/ noun an extra cost above the exclusive right to market a product
usual rate for buying a foreign currency ex coupon /eks kupɒn/ adverb without
ex coupon
exchanger /ikstʃeind ə/ noun a person

exchanger
| the interest coupons or after interest has

who buys and sells foreign currency been paid
exchange rate /ikstʃeind reit/ noun 1.
exchange rate
ex dividend /eks dividend/, ex div

ex dividend
|
a rate at which one currency is exchanged /eks div/ adjective used to describe a share
for another. Also called rate of exchange 2. that does not have the right to receive the
a figure that expresses how much a unit of next dividend 쑗 The shares went ex dividend
one country’s currency is worth in terms of yesterday. Abbreviation xd
the currency of another country execute /eksikjut/ verb to carry out an
execute
exchange rate mechanism /iks

exchange rate mechanism
|
order 쑗 Failure to execute orders may lead
tʃeind reit mekəniz(ə)m/ noun a to dismissal. 쑗 There were many practical
former method of stabilising exchange rates difficulties in executing the managing direc-
within the European Monetary System, tor’s instructions.
where currencies could only move up or
execution /eksikjuʃ(ə)n/ noun the car-
execution
down within a narrow band (usually 2.25% |
either way, but for some currencies widened rying out of a commercial order or contract
executive /izekjυtiv/ adjective putting
executive
to 6%) without involving a realignment of |
all the currencies in the system decisions into action

executive director /izekjυtiv dai
executive director
exchange rate parity /ikstʃeind reit

exchange rate parity
| | |
priti/ noun the existence of uniform rektə/ noun 1. a director who works full-
exchange rate levels between a group of time in the company. Compare non-execu-
countries, such that a basket of goods costs tive director 2. a senior employee of an
the same in the currencies of these countries organisation who is usually in charge of one
exchange transaction /ikstʃeind
exchange transaction
|
or other of its main functions, e.g. sales or
trnzkʃən/ noun a purchase or sale of
|
human relations, and is usually, but not
foreign currency always, a member of the board of directors
executive power /izekjυtiv paυə/
executive power
Exchequer /ikstʃekə/ 앳 the Exchequer

Exchequer
| |
1. the fund of all money received by the gov- noun the right to act as director or to put
ernment of the UK from taxes and other rev- decisions into action
enues 2. the British government’s account executive share option scheme /i
executive share option scheme
with the Bank of England 3. the British gov- zekjυtiv ʃeər ɒpʃən skim/ noun a
ernment department dealing with public rev- scheme under which senior managers are
enue given the opportunity to buy shares in their
Exchequer stocks /ikstʃekə stɒks/ company at a preferential fixed price at a
Exchequer stocks
plural noun same as Treasury stocks later date

89 expense account
executor /izekjυtə/ noun a person or exit price /eksit prais/ noun the price at
executor exit price
firm that sees that the terms of a will are car- which an investor sells an investment or at
ried out 쑗 She was named executor of her which a firm sells up and leaves a market
brother’s will. exit value /eksit vlju/ noun income
exit value
executrix /izekjυtriks/ noun a female

executrix
|
that would be received if an asset or a busi-
executor ness were sold
exempt /izempt/ adjective not forced to
exempt
ex officio /eks əfiʃiəυ/ adjective, adverb

ex officio
|
|
do something, especially not forced to obey because of an office held 쑗 The treasurer is
a particular law or rule, or not forced to pay ex officio a member or an ex officio member
something 쑗 Anyone over 65 is exempt from of the finance committee.
charges 왍 exempt from tax not required to
expand /ikspnd/ verb to get bigger, or
expand
pay tax 쑗 As a non-profit-making organisa- |
tion we are exempt from tax. make something bigger 쑗 an expanding

economy 쑗 The company is expanding fast.
‘Companies with sales under $500,000 a 쑗 We have had to expand our sales force.
year will be exempt from the minimum-
expansion /ikspnʃən/ noun an
expansion
wage requirements’ [Nation’s Business] |
exempt assets /izempt sets/ plural

exempt assets
increase in size 쑗 The expansion of the
domestic market. 쑗 The company had diffi-
|
noun assets such as cars which are not sub-

ject to capital gains tax when sold culty in financing its current expansion pro-
gramme.
exempt gift /izempt ift/ noun a gift
exempt gift
that is not subject to US gift tax ‘…inflation-adjusted GNP moved up at a

exempt investment fund /izempt in
exempt investment fund 1.3% annual rate, its worst performance
| |
since the economic expansion began’
vestmənt fnd/ noun in the United King- [Fortune]
dom, a collective investment, usually a unit
trust, for investors who have certain tax priv- ‘…the businesses we back range from
ileges, e.g., charities or contributors to pen- start-up ventures to established businesses
in need of further capital for expansion’
sion plans [Times]
exemption /izempʃ(ə)n/ noun the act
exemption
‘…the group is undergoing a period of

of exempting something from a contract or rapid expansion and this has created an
from a tax 왍 exemption from tax, tax exciting opportunity for a qualified
exemption the fact of being free from hav- accountant’ [Financial Times]
ing to pay tax 쑗 As a non-profit-making
ex parte /eks pɑti/ phrase a Latin
ex parte
organisation you can claim tax exemption.

phrase meaning ‘on behalf of’
exempt supplies /izempt səplaiz/
exempt supplies
| |
expected annual activity /ikspektid

expected annual activity
plural noun products or services on which |
the supplier does not have to charge VAT, njuəl ktiviti/ noun a company’s antic-
|
e.g., the purchase of, or rent on, property and ipated level of activity or production for a
financial services given year
expected value /ikspektid vlju/
expected value
exercise /eksəsaiz/ noun 1. the use of

exercise
|
something 2. a financial year 쑗 during the noun the future value of a course of action,
current exercise 쐽 verb to use 쑗 The chair- weighted according to the probability that
woman exercised her veto to block the the course of action will actually occur. If
motion. the possible course of action produces
exercise date /eksəsaiz deit/ noun the
exercise date
income of £10,000 and has a 10% chance of
date when an option can be put into effect occurring, its expected value is 10% of
exercise price /eksəsaiz prais/ noun
exercise price
£10,000 or £1,000.
expenditure /ikspenditʃə/ noun the
expenditure
the price at which an option will be put into |
effect amount of money spent

ex gratia /eks reiʃə/ adjective as an act expense /ikspens/ noun money spent 쑗
ex gratia expense
of favour, without obligation The expense is too much for my bank bal-
exit /eksit/ noun the way in which an
exit
ance. 쑗 The likely profits do not justify the
investor can realise their investment, e.g. by expense of setting up the project.
selling the company they have invested in expense account /ikspens əkaυnt/
expense account
| |
exit charge /eksit tʃɑd /, exit fee noun an allowance of money which a busi-
exit charge
/eksit fi/ noun a charge sometimes made ness pays for an employee to spend on trav-
by a trust when selling units in a unit trust or elling and entertaining clients in connection
when selling out of an investment such as an with that business 쑗 I’ll put this lunch on my
ISA expense account.

expenses 90
export duty /ekspɔt djuti/ noun a tax
expenses export duty
expenses /ikspensiz/ plural noun money |
paid to cover the costs incurred by someone paid on goods sent out of a country for sale
when doing something 쑗 The salary offered exporter /ikspɔtə/ noun a person, com-
exporter
is £10,000 plus expenses. 쑗 She has a high pany, or country that sells goods in foreign
salary and all her travel expenses are paid countries 쑗 a major furniture exporter 쑗
by the company. Canada is an important exporter of oil or an
expert system
expert system /ekspt sistəm/ noun important oil exporter.

software that applies the knowledge, advice export house /ekspɔt haυs/ noun a
export house
and rules defined by experts in a particular company which specialises in the export of
field to a user’s data to help solve a problem goods manufactured by other companies
export licence /ekspɔt lais(ə)ns/
expiration export licence
expiration /ekspəreiʃ(ə)n/ noun the act |
of coming to an end 쑗 the expiration of an noun a government permit allowing some-

insurance policy 쑗 to repay before the expi- thing to be exported 쑗 The government has
ration of the stated period refused an export licence for computer
expiration date
expiration date /ekspəreiʃ(ə)n deit/ |

parts.
export manager /ekspɔt mnid ə/
export manager
noun US same as expiry date

noun the person in charge of an export
expire /ikspaiə/ verb to come to an end 쑗
expire
department in a company 쑗 The export man-

The lease expires in 2010. ager planned to set up a sales force in South-
expiry
expiry /ikspaiəri/ noun the act of coming

|
ern Europe. 쑗 Sales managers from all
to an end 쑗 the expiry of an insurance policy export markets report to our export man-
expiry date
expiry date /ikspaiəri deit/ noun a date |

ager.
when something will end exports /ekspɔts/ plural noun goods sent
exports
exponent
exponent /ikspəυnənt/ noun a number |

to a foreign country to be sold 쑗 Exports to
or variable placed to the upper right of a Africa have increased by 25%. 쒁 export
number or mathematical expression that (NOTE: Usually used in the plural, but the
indicates the number of times the number or singular form is used before a noun.)
ex post /eks pəυst/ adverb a Latin
ex post
expression is to be multiplied by itself, as in

23, which equals 8 phrase meaning ‘after the event’. Compare
exponential smoothing
exponential smoothing /ekspə |

ex ante (NOTE: An ex post budget, or stand-
nenʃ(ə)l smuðiŋ/ noun a technique for ard, is set after the end of a period of activ-
working out averages while allowing for ity, when it can represent the optimum
recent changes in values by moving forward achievable level of performance in the con-
the period under consideration at regular ditions which were experienced. Thus the
intervals budget can be flexed, and standards can
export reflect factors such as unanticipated
export noun /ekspɔt/ the practice or changes in technology and in price levels.)
business of sending goods to foreign coun-
exposure /ikspəυ ə/ noun 1. publicity
exposure
tries to be sold 쑗 50% of the company’s |
profits come from the export trade or the given to an organisation or product 쑗 Our
export market. 쒁 exports 쐽 verb /ikspɔt/ |
company has achieved more exposure since
to send goods to foreign countries for sale 쑗 we decided to advertise nationally. 2. the
50% of our production is exported. 쑗 The amount of risk which a lender or investor
company imports raw materials and exports runs 쑗 He is trying to limit his exposure in
the finished products. the property market.
exportation ‘…it attributed the poor result to the
exportation /ekspɔteiʃ(ə)n/ noun the |
bank’s high exposure to residential mort-
act of sending goods to foreign countries for gages, which showed a significant slow-
sale down in the past few months’ [South
Export Credit Guarantee Department
Export Credit Guarantee Depart- China Morning Post]

ment /ekspɔt kredit rənti di | | exposure draft /ikspəυ ə drɑft/ noun
exposure draft
pɑtmənt/ noun a British government a document produced by a body before a

department which insures sellers of exports new authoritative pronouncement is pub-
sold on credit against the possibility of non- lished. It invites accountants and other inter-
payment by the purchasers. Abbreviation ested parties to comment on matters raised
ECGD by the draft. Abbreviation ED
export department
export department /ekspɔt di expressly /ikspresli/ adverb clearly in

expressly
| |
pɑtmənt/ noun the section of a company words 쑗 The contract expressly forbids
which deals in sales to foreign countries sales to the United States.

91 extraordinary item
ex-rights /eks raits/ adjective referring
ex-rights external auditing
external auditing /ikstn(ə)l ɔditiŋ/

|
to a share price where the share is sold with- noun an action of auditing a set of accounts
out a recent rights issue. Abbreviation xr by an external auditor
extend /ikstend/ verb 1. to offer some-
extend
external auditor
|
external auditor /ikstn(ə)l ɔditə/ |
thing 쑗 to extend credit to a customer 2. to noun an independent person who audits the
make something longer 쑗 Her contract of company’s accounts
employment was extended for two years. 쑗 external debt
We have extended the deadline for making external debt /ikstn(ə)l det/ noun
|
the appointment by two weeks. money which a company has borrowed from
outside sources such as a bank, as opposed
extended credit /ikstendid kredit/
extended credit
to money raised from shareholders. Also

noun 1. credit allowing the borrower a very
called external funds
long time to pay 쑗 We sell to Australia on external failure costs
extended credit. 2. US an extra long credit external failure costs /ikstn(ə)l |
used by commercial banks borrowing from feiljə kɒsts/ plural noun costs incurred as
the Federal Reserve a result of products proving faulty, e.g. the
Extensible Business Reporting
Extensible Business Reporting Language
cost of replacements and lost sales
external funds
Language /ikstensib(ə)l biznis ri | | external funds /ikstn(ə)l fndz/ plu-

|
pɔtiŋ lŋwid / noun full form of ral noun same as external debt
XBRL external growth
external growth /ikstn(ə)l rəυθ/ |
extension /ikstenʃən/ noun an addi-

extension
|
noun the growth of a firm by buying other
tional period of time allowed for something, companies, rather than by expanding exist-
e.g. the repayment of a debt ing sales or products. Opposite internal
extensive /ikstensiv/ adjective very
extensive
| growth
large or covering a wide area 쑗 an extensive external liabilities
external liabilities /ikstn(ə)l laiə

network of sales outlets 쑗 an extensive
| |
bilitiz/ plural noun money owed to lenders

recruitment drive and other creditors outside a company
external /ikstn(ə)l/ adjective 1. outside
external
| external trade
a country. Opposite internal 2. outside a external trade /ikstn(ə)l treid/ noun

|
company trade with foreign countries. Opposite inter-

nal trade
external account /ikstn(ə)l əkaυnt/
external account
| |
extract
noun an account in a British bank belonging extract /ekstrkt/ noun a printed docu-
to someone who is living in another country ment which is part of a larger document 쑗
external audit /ikstn(ə)l ɔdit/ noun
external audit
|
He sent me an extract of the accounts.
extraordinary item
1. an audit carried out by an independent extraordinary item /ikstrɔd(ə)n(ə)ri |
auditor who is not employed by the com- aitəm/ noun a large item of income or
pany 2. an evaluation of the effectiveness of expenditure entered into accounts that is
a company’s public relations carried out by unusual in nature and also occurs very infre-
an outside agency quently

F
factoring /fktəriŋ/ noun the business of
face value factoring
face value /feis vlju/ noun the value

written on a coin, banknote or share certifi- buying debts from a firm at a discount and
cate then enforcing the payment of the debt
factoring charges /fktəriŋ tʃɑd iz/
factoring charges
‘…travellers cheques cost 1% of their face

value – some banks charge more for small plural noun the cost of selling debts to a fac-
amounts’ [Sunday Times] tor for a commission
factors of production /fktəz əv prə
factors of production
facility
facility /fəsiliti/ noun the total amount of |
dkʃən/ plural noun land, labour and capi-

|
credit which a lender will allow a borrower

facility fee
tal, i.e. the three things needed to produce a
facility fee /fəsiliti fi/ noun a charge |
product
made to a borrower by a bank for arranging factory gate price /fkt(ə)ri eit
factory gate price
credit facilities prais/ noun the actual cost of manufacturing

goods before any mark-up is added to give
facility-sustaining activities
facility-sustaining activities /fəsiliti |
səsteiniŋ ktivitiz/ plural noun activi-

| |
profit (NOTE: The factory gate price includes
ties undertaken to support the organisation direct costs such as labour, raw materials
as a whole, which cannot be logically linked and energy, and indirect costs such as inter-
to individual units of output. Accounting is est on loans, plant maintenance or rent.)
factory overhead /fkt(ə)ri əυvəhed/
factory overhead
a facility-sustaining activity. 쒁 hierarchy of

activities noun same as production overhead
FAE abbreviation Final Admitting Exam
FAE
factor
factor /fktə/ noun 1. something which is

fail /feil/ verb to be unsuccessful 쑗 The pro-
fail
important, or which is taken into account

when making a decision 쑗 The drop in sales totype failed its first test.
failure /feiljə/ noun an act of breaking
failure
is an important factor in the company’s

lower profits. 쑗 Motivation was an impor- down or stopping 쑗 the failure of the negoti-
tant factor in drawing up the new pay ations
failure costs /feiljə kɒsts/ plural noun
failure costs
scheme. 2. a number used in multiplication

to produce another number 왍 by a factor of costs that include external failure costs as
ten ten times 3. a person or company which well as associated costs, e.g. the cost of run-
is responsible for collecting debts for com- ning a complaints department
fair /feə/ adjective reasonable, with equal
fair
panies, by buying debts at a discount on their

face value 4. a person who sells for a busi- treatment
ness or another person and earns a commis- fair dealing /feə diliŋ/ noun the legal
fair dealing
sion 쐽 verb to buy debts from a company at buying and selling of shares
a discount fair market value /feə mɑkit vlju/
fair market value
‘…factors ‘buy’ invoices from a company, noun same as fair value

which then gets an immediate cash fair price /feə prais/ noun a good price
fair price
advance representing most of their value. for both buyer and seller
The balance is paid when the debt is met. fair trade /feə treid/ noun an interna-
fair trade
The client company is charged a fee as tional business system where countries
well as interest on the cash advanced’ agree not to charge import duties on some
[Times] items imported from their trading partners
factorial
factorial /fktɔriəl/ noun the product of

| fair value /feə vlju/ noun 1. a price
fair value
all the numbers below a number 쑗 example: paid by a buyer who knows the value of what
4 factorial = 1x2x3x4 = 24 (NOTE: 4 facto- he or she is buying, to a seller who also
rial is written 4!) knows the value of what is being sold, i.e.,

93 Federal Reserve
neither is cheating the other 2. a method of family company /fm(ə)li kmp(ə)ni/
family company
valuing the assets and liabilities of a busi- noun a company in which most of the shares
ness based on the amount for which they are owned by members of a family
could be sold to independent parties at the f. & f. abbreviation fixtures and fittings
f. & f.
time of valuation FASB abbreviation Financial Accounting

FASB
fair wear and tear /feə weər ən teə/

fair wear and tear
Standards Board
noun acceptable damage caused by normal favourable trade
favourable trade balance
balance
use 쑗 The insurance policy covers most /feiv(ə)rəb(ə)l treid bləns/ noun a sit-
damage but not fair wear and tear to the uation where a country exports more than it
machine. imports 쑗 The country has had an adverse
fall /fɔl/ noun a sudden reduction or loss of
fall
balance of trade for the second month run-
value 쑗 a fall in the exchange rate 쑗 a fall in ning.
the price of gold 쑗 a fall on the Stock favourable variance /feiv(ə)rəb(ə)l
favourable variance
Exchange 쑗 Profits showed a 10% fall. 쐽 veəriəns/ noun variance which shows that
verb 1. to be reduced suddenly to a lower the actual result is better than expected
price or value 쑗 Shares fell on the market fax /fks/ noun a system for sending the
fax
today. 쑗 Gold shares fell 10% or fell 45 exact copy of a document via telephone lines
cents on the Stock Exchange. 쑗 The price of 쑗 Can you confirm the booking by fax? 쐽
gold fell for the second day running. 쑗 The verb to send a message by fax 쑗 The details
pound fell against the euro. 2. to happen or of the offer were faxed to the brokers this
to take place 쑗 The public holiday falls on a morning. 쑗 I’ve faxed the documents to our
Tuesday. New York office.
‘…market analysts described the falls in FCA abbreviation Fellow of the Institute of
FCA
the second half of last week as a technical Chartered Accountants in England and
correction to the market’ [Australian Wales
Financial Review] FCCA abbreviation Fellow of the Associa-
FCCA
‘…for the first time since mortgage rates tion of Chartered Certified Accountants
began falling in March a financial institu- FCR abbreviation full cost recovery
FCR
tion has raised charges on homeowner

FD abbreviation financial director
FD
loans’ [Globe and Mail (Toronto)]

feasibility study /fizəbiliti stdi/
feasibility study
‘…interest rates were still falling as late as

|
June, and underlying inflation remains noun the careful investigation of a project to
below the government’s target of 2.5 per see whether it is worth undertaking 쑗 We
cent’ [Financial Times] will carry out a feasibility study to decide
whether it is worth setting up an agency in
fall behind phrasal verb to be late in doing North America.
something 쑗 They fell behind with their
federal /fed(ə)rəl/ adjective 1. referring
federal
mortgage repayments.
to a system of government where a group of
falling /fɔliŋ/ adjective becoming smaller
falling
states are linked together in a federation 2.

or dropping in price referring to the central government of the
‘…falling profitability means falling share United States 쑗 Most federal offices are in
prices’ [Investors Chronicle] Washington.
false /fɔls/ adjective not true or not correct ‘…federal examiners will determine
false
쑗 to make a false claim for a product 쑗 to which of the privately-insured savings and
make a false entry in the balance sheet loans qualify for federal insurance’ [Wall
false accounting /fɔls əkaυntiŋ/
false accounting
|
Street Journal]
noun the criminal offence of changing, ‘…since 1978 America has freed many of
destroying or hiding accounting records for its industries from federal rules that set
a dishonest purpose prices and controlled the entry of new
companies’ [Economist]
false market /fɔls mɑkit/ noun a mar-
false market
Federal Funds /fed(ə)rəl fndz/ plural

Federal Funds
ket in shares caused by persons or compa- noun deposits by commercial banks with the
nies conspiring to buy or sell and so influ- Federal Reserve Banks, which can be used
ence the share price to their advantage for short-term loans to other banks
falsification /fɔlsifikeiʃ(ə)n/ noun the
falsification
Federal Reserve /fed(ə)rəl rizv/,

Federal Reserve
|
|
act of making false entries in accounts Federal Reserve System /fed(ə)rəl ri |
falsify /fɔlsifai/ verb to change some-

falsify
zv sistəm/ noun the system of federal

thing to make it wrong 쑗 They were accused government control of the US banks, where
of falsifying the accounts. the Federal Reserve Board regulates money

Federal Reserve Bank 94

supply, prints money, fixes the discount rate have fiduciary duty to act in the best inter-
and issues government bonds ests of the company.
Federal Reserve Bank /fed(ə)rəl ri
Federal Reserve Bank
fiduciary deposits /fidjuʃəri di

fiduciary deposits
|
| |
zv bŋk/ noun any one of the twelve pɒzitz/ plural noun bank deposits which
federally-owned regional banks in the US, are managed for the depositor by the bank
which are directed by the Federal Reserve FIFO /faifəυ/ abbreviation first in first out
FIFO
Board. Abbreviation FRB

fifty-fifty /fifti fifti/ adjective, adverb
fifty-fifty
Federal Reserve Board /fed(ə)rəl ri

Federal Reserve Board
zv bɔd/ noun a government organisation half

figure /fiə/ noun 1. a number, or a cost
figure
which runs the central banks in the US.

Abbreviation FRB written in numbers 쑗 The figure in the
‘…pressure on the Federal Reserve Board accounts for heating is very high. 2. 왍 his
to ease monetary policy mounted yester- income runs into six figures or he has a
day with the release of a set of pessimistic six-figure income his income is more than
economic statistics’ [Financial Times] £100,000
figures /fiəz/ plural noun 1. written
figures
federation /fedəreiʃ(ə)n/ noun a group

federation
of societies, companies or organisations numbers 2. the results for a company 쑗 the

which have a central organisation which rep- figures for last year or last year’s figures
resents them and looks after their common file /fail/ noun 1. documents kept for refer-
file
interests 쑗 a federation of trades unions 쑗 ence 2. a section of data on a computer, e.g.

the employers’ federation payroll, address list, customer accounts 쑗
Fédération des Experts-Compta- How can we protect our computer files? 쐽
Fédération des Experts-Comptables Européen
bles Européen noun same as European verb 1. to make an official request 2. to reg-
Federation of Accountants ister something officially 쑗 to file an appli-
Fed Funds /fed fndz/ plural noun US
Fed Funds
cation for a patent 쑗 to file a return to the
same as Federal Funds (informal) tax office
fed funds rate /fed fndz reit/ noun file copy /fail kɒpi/ noun a copy of a
fed funds rate file copy
the rate charged by banks for lending money document which is kept for reference in an
deposited with the Federal Reserve to other office
banks filing date /failiŋ deit/ noun the date by
filing date
fee /fi/ noun money paid for work carried

fee
which income tax returned must be filed

out by a professional person such as an with the Inland Revenue
accountant, a doctor or a lawyer 쑗 We final accounts /fain(ə)l əkaυnts/ plural
final accounts
charge a small fee for our services. 쑗 The

|
noun the accounts produced at the end of an

consultant’s fee was much higher than we accounting period, including the balance
expected. sheet and profit and loss account
fee work /fi wk/ noun any work on a
fee work
Final Admitting Exam /fain(ə)l əd

Final Admitting Exam
project carried out by independent workers |
or contractors, rather than by the organisa- mitiŋ izm/ noun a final examination
|
tion’s employees set by the ICAEW to admit student account-

ants as chartered accountants. Abbreviation
fellow /feləυ/ noun a title given to senior
fellow
FAE
members of a professional association. Jun-
final closing date /fain(ə)l kləυziŋ
final closing date
ior members are usually called ‘associates’.

fiat money /fit mni/ noun coins or
fiat money deit/ noun the last date for acceptance of a
notes which are not worth much as paper or takeover bid, when the bidder has to
metal, but are said by the government to announce how many shareholders have
have a value and are recognised as legal ten- accepted his or her offer
final demand /fain(ə)l dimɑnd/ noun
final demand
der |
fictitious assets /fiktiʃəs sets/ plu-

fictitious assets
|
a last reminder that payment of a debt is due,
ral noun assets which do not really exist, but after which a supplier normally sues for pay-
are entered as assets to balance the accounts ment
final discharge /fain(ə)l distʃɑd /
final discharge
fiddle /fid(ə)l/ (informal) noun an act of

fiddle
cheating 쑗 It’s all a fiddle. 쐽 verb to cheat 쑗 noun a final payment the completes the
He tried to fiddle his tax returns. 쑗 The repayment of a debt
salesman was caught fiddling his expense final dividend /fain(ə)l dividend/ noun
final dividend
account. a dividend paid at the end of a year’s trading,

fiduciary /fidjuʃjəri/ noun, adjective (a which has to be approved by the sharehold-
fiduciary
person) in a position of trust 쑗 Directors ers at an AGM

95 financial futures
finalise /fainəlaiz/, finalize verb to agree financial /fainnʃəl/ adjective relating to
finalise financial
final details 쑗 We hope to finalise the agree- money

ment tomorrow. 쑗 After six weeks of negoti- Financial Accountant /fainnʃ(ə)l ə
Financial Accountant
| |
ations the loan was finalised yesterday. kaυntənt/ noun a qualified accountant, a
final settlement /fain(ə)l set(ə)lmənt/ member of the Institute of Financial
final settlement
noun the last payment which settles a debt Accountants, who advises on accounting
finance /fainns/ noun 1. money used by
finance
matters or who works as the financial direc-
a company, provided by the shareholders or tor of a company
by loans 쑗 Where will they get the necessary financial accounting /fainnʃ(ə)l ə
financial accounting
| |
finance for the project? (NOTE: The US term kaυntiŋ/, financial accountancy /fai |
is financing) 2. money (used by a club, nnʃ(ə)l əkaυntənsi/ noun 1. the form of

|
local authority, etc.) 쑗 She is the secretary of accounting in which financial reports are
the local authority finance committee. 쐽 produced to provide investors or other exter-
verb to provide money to pay for something nal parties with information on a company’s
쑗 They plan to finance the operation with financial status. Compare management
short-term loans. accounting 2. the process of classifying
‘…an official said that the company began and recording a company’s transactions and
to experience a sharp increase in demand presenting them in the form of profit and
for longer-term mortgages at a time when loss accounts, balance sheets and cash flow
the flow of money used to finance these statements for a given accounting period
loans diminished’ [Globe and Mail] Financial Accounting Standards
Financial Accounting Standards Board
Finance Act /fainns kt/ noun an

Finance Act
Board /fainnʃ(ə)l əkaυntiŋ
| |
annual Act of Parliament which gives the stndədz bɔd/ noun the body which reg-
government the power to obtain money from ulates accounting standards in the USA.
taxes as proposed in the Budget Abbreviation FASB
financial adviser /fainnʃəl ədvaizə/
financial adviser
Finance and Tax Tribunals /fainns

Finance and Tax Tribunals
| |
ən tks traibjun(ə)lz/ plural noun a col- noun a person or company that gives finan-
lective name for four tribunals established in cial advice to clients for a fee
2006 to hear appeals against decisions of financial aid /fainnʃəl eid/ noun
financial aid
HM Customs and Excise and the Inland monetary assistance given to an individual,
Revenue and to adjudicate on matters relat- organisation or nation. International finan-
ing to certain decisions of the Financial cial aid, that is from one country to another,
Services Authority and the Pensions Regu- is often used to fund educational, health-
lator related or other humanitarian activities.
Finance Bill /fainns bil/ noun 1. a bill financial analysis software /fai
Finance Bill financial analysis software
that lists the proposals in a Chancellor’s nnʃəl ənləsis sɒftweə/ noun soft-
|
budget and that is debated before being ware that can produce information on trends
voted into law as the Finance Act 2. US a and calculate ratios using information from
short-term bill of exchange which provides an online database
credit for a corporation so that it can con- financial assistance /fainnʃəl ə
financial assistance
| |
tinue trading sistəns/ noun help in the form of money

finance controller /fainns kən
finance controller
financial calendar /fainnʃəl

financial calendar
| |
trəυlə/ noun an accountant whose main klində/ noun a list of significant events
task is to manage the company’s monetary and dates in a company’s financial reporting
resources year
finance lease /fainns lis/ noun a lease
finance lease
financial correspondent /fainnʃəl

financial correspondent
which requires the lessee company to show kɒrispɒndənt/ noun a journalist who
|
the asset acquired under the lease in its bal- writes articles on money matters for a news-
ance sheet and to depreciate it in the usual paper
way financial director /fainnʃəl dai
financial director
| |
finance leasing /fainns lisiŋ/ noun

finance leasing
rektə/ noun the member of a board of

leasing a property under a finance lease directors who is responsible for a company’s
finance market /fainns mɑkit/ noun
finance market
financial operations. Abbreviation FD
a place where large sums of money can be financial engineering /fainnʃəl
financial engineering
lent or borrowed end iniəriŋ/ noun the act of converting

|
finances /fainnsiz/ plural noun money

finances
one type of financial instrument into another
or cash which is available 쑗 the bad state of financial futures /fainnʃəl fjutʃəz/,
financial futures
the company’s finances financial futures contract /fainnʃəl |

financial futures market 96

fjutʃəz kɒntrkt/ noun a contract for noun a UK body that receives and investi-
the purchase of gilt-edged securities for gates complaints about the annual accounts
delivery at a date in the future. Also called of companies in which it is claimed that the
financials accounting requirements of the Companies
financial futures market /fainnʃəl
financial futures market
|
Act have not been fulfilled. Abbreviation
fjutʃəz mɑkit/ noun the market in gilt- FRRP
edged securities for delivery at a date in the Financial Reporting Standards /fai
Financial Reporting Standards
future nnʃ(ə)l ripɔtiŋ stndədz/ plural noun

|
financial information system /fai

financial information system
| a series of accounting standards issued by

nnʃəl infəmeiʃ(ə)n sistəm/ noun a | the Accounting Standards Board outlining
computer-based system that analyses and common accounting practice. Abbreviation
gathers financial information for use in run- FRSs
ning a business financial resources /fainnʃəl ri
financial resources
| |
financial institution /fainnʃəl insti zɔsiz/ plural noun the supply of money for
financial institution
| |
tjuʃ(ə)n/ noun a bank, investment trust or something 쑗 a company with strong finan-
insurance company whose work involves cial resources
lending or investing large sums of money financial review /fainnʃəl rivju/
financial review
| |
financial instrument /fainnʃəl

financial instrument
| noun an examination of an organisation’s

instrυmənt/ noun 1. a document showing finances
that money has been lent or borrowed, financial risk /fainnʃəl risk/ noun the
financial risk
invested or passed from one account to possibility of losing money 쑗 The company
another, e.g. a bill of exchange, share certif- is taking a considerable financial risk in
icate, certificate of deposit or IOU 2. any manufacturing 25 million units without
form of investment in the stock market or in doing any market research. 쑗 There is
other financial markets, e.g. shares, govern- always some financial risk in selling on
ment stocks, certificates of deposit or bills of credit.
exchange financials /fainnʃəlz/ plural noun same
financials
financial intermediary /fainnʃəl

financial intermediary
|
as financial futures
intəmidiəri/ noun an institution which
|
financial
financial services
services /fainnʃəl
takes deposits or loans from individuals and
|
svisiz/ plural noun services such as

lends money to clients banking and insurance the main business of
financial leverage /fainnʃəl
financial leverage
|
which is the management and transfer of
levərid / noun 쏡 gearing money
financially /finnʃəli/ adverb regarding
financially
Financial Services Act /fainnʃəl

Financial Services Act
|
money 왍 a company which is financially

|
svisiz kt/ noun an Act of the British

sound a company which is profitable and Parliament which regulates the offering of
has strong assets financial services to the general public and
financial management /fainnʃəl
financial management
|
to private investors
mnid mənt/ noun the management of Financial Services Authority /fai
Financial Services Authority
the acquisition and use of long- and short- nnʃ(ə)l svisiz ɔθɒrəti/ noun an |
term capital by a business independent non-governmental body

financial position /fainnʃəl pə
financial position
| |
formed in 1997 as a result of reforms in the
ziʃ(ə)n/ noun the state of a person’s or regulation of financial services in the United
company’s bank balance in terms of assets Kingdom. The Securities and Investments
and debts Board (SIB) became responsible for the
financial projection /fainnʃəl prə
financial projection
| |
supervision of banking and investment serv-
d ekʃən/ noun business planning that deals ices and changed its name to become the
with budgets and estimates of future financ- Financial Services Authority. The FSA’s
ing needs four statutory objectives were specified by
financial report /fainnʃəl ripɔt/
financial report
| | the Financial Services and Markets Act

noun a document which gives the financial 2000: maintaining market confidence;
position of a company or of a club, etc. increasing public knowledge of the finance
Financial Reporting Council /fai system; ensuring appropriate protection for
Financial Reporting Council
nnʃ(ə)l ripɔtiŋ kaυns(ə)l/ noun the

| consumers; and reducing financial crime.
UK’s independent regulator for corporate Abbreviation FSA
reporting and governance financial statement
financial statement
/fainnʃəl |
Financial Reporting Review Panel steitmənt/ noun a document which shows

Financial Reporting Review Panel
/fainnʃ(ə)l ripɔtiŋ rivju pn(ə)l/

| | | the financial situation of a company 쑗 The

97 fiscal year
accounts department has prepared a finan- ‘…some profit-taking was noted, but
cial statement for the shareholders. underlying sentiment remained firm’
financial statement analysis /fai
financial statement analysis
|
[Financial Times]
nnʃəl steitmənt ənləsis/ noun any of
| firm up phrasal verb to agree on the final
various methods used for evaluating the details of something 쑗 We expect to firm up
past, current and projected performance of a the deal at the next trade fair.
company firmness /fmnəs/ noun the fact of
firmness
financial supermarket /fainnʃəl

financial supermarket
| being steady at a particular price, or likely to

supəmɑkit/ noun a company which rise 쑗 the firmness of the dollar on foreign
offers a range of financial services, e.g. a exchanges
bank offering loans, mortgages, pensions ‘Toronto failed to mirror New York’s
and insurance as well as the usual personal firmness as a drop in gold shares on a fall-
banking services ing bullion price left the market closing on
Financial Times /fainnʃ(ə)l taimz/
Financial Times
| a mixed note’ [Financial Times]

noun an important British financial daily firm price /fm prais/ noun a price
firm price
newspaper (printed on pink paper). Abbrevi- which will not change 쑗 They are quoting a
ation FT firm price of $1.23 a unit.
financial year /fainnʃəl jiə/ noun the
financial year
firm sale /fm seil/ noun a sale which

firm sale
|
twelve-month period for which a company does not allow the purchaser to return the
produces accounts. A financial year is not goods
necessarily the same as a calendar year.
first in first out /fst in fst aυt/
first in first out
financier /fainnsiə/ noun a person who

financier
|
phrase an accounting policy in which it is
lends large amounts of money to companies assumed that stocks in hand were purchased
or who buys shares in companies as an last, and that stocks sold during the period
investment were purchased first. Abbreviation FIFO.
financing /fainnsiŋ/ noun the act of
financing
Compare last in first out

providing money for a project 쑗 The financ- first option /fst opʃən/ noun allowing
first option
ing of the project was done by two interna- someone to be the first to have the possibil-
tional banks. ity of deciding something
finder’s fee /faindəz fi/ noun a fee paid
finder’s fee
first quarter /fst kwɔtə/ noun the

first quarter
to a person who finds a client for another,

e.g., someone who introduces a client to a period of three months from January to the
stockbroking firm end of March 쑗 The first quarter’s rent is
payable in advance.
fine /fain/ noun money paid because of
fine
first year allowance /fst jiər ə

first year allowance
something wrong which has been done 쑗 |
She was asked to pay a $25,000 fine. 쑗 We laυəns/ noun an allowance which can be
had to pay a £50 parking fine. claimed on capital expenditure by a business
fine-tuning /fain tjuniŋ/ noun the act
fine-tuning or self-employed person during the year in
which the purchase was made. After the first
of making of small adjustments in areas
year, the written-down allowance (WDA)
such as interest rates, tax bands or the
applies. Abbreviation FYA
money supply, to improve a nation’s econ-
fiscal /fiskəl/ adjective referring to tax or
fiscal
omy
finished goods /finiʃt υdz/ plural
finished goods to government revenues
fiscal drag /fiskəl dr/ noun 1. the
fiscal drag
noun manufactured goods which are ready

to be sold effect of inflation on a government’s tax rev-
fire insurance /faiər inʃυərəns/ noun
fire insurance
|
enues. As inflation increases so do prices
insurance against damage by fire and wages, and tax revenues rise proportion-
firm /fm/ noun a company, business or
firm ately. Even if inflation is low, increased
partnership 쑗 a manufacturing firm 쑗 an earnings will give the government increased
important publishing firm 쑗 She is a partner revenues anyway. 2. the negative effect of
in a law firm. 쐽 adjective 1. unchangeable 쑗 higher personal taxation on an individual’s
to make a firm offer for something 쑗 to place work performance
fiscal measures /fiskəl me əz/ plural
fiscal measures
a firm order for two aircraft 2. not dropping

in price and possibly going to rise 쑗 Sterling noun tax changes made by a government to
was firmer on the foreign exchange markets. improve the working of the economy
쑗 Shares remained firm. 쐽 verb to remain at fiscal year /fiskəl jiə/ noun a twelve-
fiscal year
a price and seem likely to rise 쑗 The shares month period on which taxes are calculated.
firmed at £1.50. In the UK this is April 6th to April 5th.

fittings 98
‘…last fiscal year the chain reported a ments producing a level of interest which
116% jump in earnings’ [Barron’s] does not change
fittings /fitiŋz/ plural noun items which
fittings fixed-interest securities
fixed-interest securities /fikst

are sold with a property but are not perma- intrəst sikjυəritiz/ plural noun securities
|
nently fixed, e.g. carpets or shelves. 쒁 fix- such as government bonds which produce a
tures level of interest which does not change
fixed assets /fikst sets/ plural noun
fixed assets fixed-price
fixed-price /fikst prais/ adjective hav-

property or machinery which a company ing a price which cannot be changed
owns and uses, but which the company does fixed-price agreement
fixed-price agreement /fikst prais ə |
not buy or sell as part of its regular trade, rimənt/ noun an agreement where a
including the company’s investments in company provides a service or a product at a
shares of other companies price which stays the same for the whole
fixed asset turnover /fikst set
fixed asset turnover
period of the agreement

tnəυvə/ noun a measure of how efficient fixed rate
fixed rate /fikst reit/ noun a rate, e.g. an

a company’s property and equipment is in exchange rate, which does not change
generating revenue fixed rate loan
fixed asset unit /fikst set junit/

fixed asset unit fixed rate loan /fikst reit ləυn/ noun a
loan on which the rate of interest stays the
noun a single item of the fixed assets of a
same for the duration of the loan
company, e.g. a specific piece of equipment fixed scale of charges
fixed budget /fikst bd it/ noun a

fixed budget fixed scale of charges /fikst skeil əv
budget which refers to a specific level of tʃɑd iz/ noun a set of charges that do not
business, i.e., a sales turnover which pro- vary according to individual circumstances
duces a specific level of profit but are applied consistently in all cases of a
particular kind
fixed capital /fikst kpit(ə)l/ noun
fixed capital
fixed yield
capital in the form of buildings and machin- fixed yield /fikst jild/ noun a percent-
ery age return which does not change
fixtures
fixed charge /fikst tʃɑd / noun a

fixed charge
fixtures /fikstʃəz/ plural noun items in a
charge over a particular asset or property property which are permanently attached to
it, e.g. sinks and lavatories
fixed costs /fikst kɒsts/ plural noun
fixed costs
fixtures and fittings
business costs which do not change with the fixtures and fittings /fikstʃəz ən
quantity of the product made fitiŋz/ plural noun objects in a property
which are sold with the property, both those
fixed deduction /fikst didkʃən/ noun
fixed deduction
|
which cannot be removed and those which
a deduction agreed by the Inland Revenue can. Abbreviation f. & f.
and a group of employees, such as a trade flash report
union, which covers general expenditure on flash report /flʃ ripɔt/ noun an
|
clothes or tools used in the course of interim financial report produced before the
employment full accounts have been drawn up, and used
to identify or resolve potential problems
fixed deposit /fikst dipɒzit/ noun a
fixed deposit
|
flat
deposit which pays a stated interest over a flat /flt/ adjective 1. used to describe mar-
set period ket prices which do not fall or rise, because
of low demand 쑗 The market was flat today.
fixed exchange rate /fikst ikstʃeind
fixed exchange rate
2. not changing in response to different con-

|
reit/ noun a rate of exchange of one cur- ditions 쑗 a flat rate

rency against another which cannot fluctu-
ate, and can only be changed by devaluation ‘…the government revised its earlier
or revaluation reports for July and August. Originally
reported as flat in July and declining by
fixed expenses /fikst ikspensiz/ plu-
fixed expenses
|
0.2% in August, industrial production is
ral noun expenses which do not vary with now seen to have risen by 0.2% and 0.1%
different levels of production, e.g. rent, staff respectively in those months’ [Sunday
salaries and insurance Times]
fixed income /fikst inkm/ noun
fixed income
flat rate
flat rate /flt reit/ noun a charge which

income which does not change from year to always stays the same 쑗 a flat-rate increase
year, as from an annuity of 10% 쑗 We pay a flat rate for electricity
fixed-interest /fikst intrəst/ adjective
fixed-interest
each quarter.
having an interest rate which does not vary flat tax
flat tax /flt tks/ noun a tax levied at

fixed-interest investments /fikst
fixed-interest investments
one fixed rate whatever an individual’s

intrəst investmənts/ plural noun invest-
| income

99 forecast
floating capital /fləυtiŋ kpit(ə)l/
flat yield floating capital
flat yield /flt jild/ noun an interest rate

as a percentage of the price paid for fixed- noun the portion of capital invested in cur-
interest stock rent assets, as distinct from that invested in
flex
flex /fleks/ verb to adjust figures in order to fixed assets or capital assets
floating charge /fləυtiŋ tʃɑd / noun a
floating charge
reflect changes in circumstances since the

original figures were produced 쑗 flexing a charge linked to any of the company’s assets
budget in a category, but not to any specific item
floating rate /fləυtiŋ reit/ noun 1. same
floating rate
flexibility
flexibility /fleksibiliti/ noun the ability

|
to be easily changed 쑗 There is no flexibility as variable rate 2. an exchange rate for a

in the company’s pricing policy. currency, which can vary according to mar-
ket demand, and is not fixed by the govern-
‘…they calculate interest on their ‘flexi- ment
ble’ mortgage on an annual basis rather
floating-rate notes /fləυtiŋ reit
floating-rate notes
than daily. Charging annual interest makes

a nonsense of the whole idea of flexibility nəυts/ plural noun Eurocurrency loans
which is supposed to help you pay off your arranged by a bank which are not at a fixed
mortgage more quickly’ [Financial Times] rate of interest. Abbreviation FRNs
floor /flɔ/ noun the bottom level of some-
floor
flexible
flexible /fleksib(ə)l/ adjective possible to

alter or change 쑗 We try to be flexible where thing, e.g. the lowest exchange rate which a
the advertising budget is concerned. 쑗 The government will accept for its currency or
company has adopted a flexible pricing pol- the lower limit imposed on an interest rate 쑗
icy. The government will impose a floor on
flexible budget wages to protect the poor.
flexible budget /fleksib(ə)l bd it/ floor price /flɔ prais/ noun the lowest
floor price
noun a budget which changes in response to

changes in sales turnover or output price, a price which cannot go any lower
floor space /flɔ speis/ noun an area of
floor space
flight of capital
flight of capital /flait əv kpit(ə)l/ floor in an office or warehouse 쑗 We have

noun a rapid movement of capital out of one 3,500 square metres of floor space to let.
country because of lack of confidence in that
flop /flɒp/ noun a failure, or something
flop
country’s economic future

flight to quality
which has not been successful 쑗 The new
flight to quality /flait tə kwɒliti/ noun model was a flop.
a tendency of investors to buy safe blue-chip flow chart /fləυ tʃɑt/, flow diagram
flow chart
securities when the economic outlook is /fləυ daiərm/ noun a chart which
uncertain shows the arrangement of work processes in
float
float /fləυt/ noun 1. cash taken from a cen- a series

tral supply and used for running expenses 쑗 fluctuate /flktʃueit/ verb to move up
fluctuate
The sales reps have a float of £100 each. 2. and down 쑗 Prices fluctuated between £1.10
the process of starting a new company by and £1.25. 쑗 The pound fluctuated all day
selling shares in it on the Stock Exchange 쑗 on the foreign exchange markets.
The float of the new company was a com- fluctuation /flktʃueiʃ(ə)n/ noun an up
fluctuation
plete failure. 3. the process of allowing a and down movement 쑗 the fluctuations of
currency to settle at its own exchange rate, the yen 쑗 the fluctuations of the exchange
without any government intervention 4. the rate
period between the presentation of a cheque
FOB, f.o.b. abbreviation free on board
FOB
as payment and the actual payment to the

folio /fəυliəυ/ noun a page with a number,
folio
payee, or the financial advantage provided

by this period to the drawer of a cheque 쐽 especially two facing pages in an account
verb to let a currency settle at its own book which have the same number 쐽 verb to
exchange rate on the international markets put a number on a page
and not be fixed 쑗 The government has let forced sale /fɔst seil/ noun a sale
forced sale
sterling float. 쑗 The government has which takes place because a court orders it
decided to float the pound. or because it is the only way to avoid a finan-
floating /fləυtiŋ/ adjective not fixed 쑗
floating
cial crisis
force majeure /fɔs m / noun
force majeure
floating exchange rates 쑗 the floating pound |
‘…in a world of floating exchange rates something which happens which is out of
the dollar is strong because of capital the control of the parties who have signed a
inflows rather than weak because of the contract, e.g. a strike, war, or storm
forecast /fɔkɑst/ noun a description or
forecast
nation’s trade deficit’ [Duns Business

Month] calculation of what will probably happen in

forecast dividend 100

the future 쑗 The chairman did not believe money of one country for that of another 2.
the sales director’s forecast of higher turno- foreign currencies
ver. ‘…the dollar recovered a little lost ground
forecast dividend /fɔkɑst dividend/ on the foreign exchanges yesterday’
forecast dividend
noun a dividend which a company expects [Financial Times]

to pay at the end of the current year. Also foreign exchange broker /fɒrin iks
foreign exchange broker
called prospective dividend tʃeind brəυkə/, foreign exchange

forecaster /fɔkɑstə/ noun a person dealer /fɒrin ikstʃeind dilə/ noun a
forecaster
who says what he or she thinks will happen person who deals on the foreign exchange
in the future market
forecasting /fɔkɑstiŋ/ noun the proc-
forecasting
foreign exchange dealing /fɒrin iks

foreign exchange dealing
ess of calculating what will probably happen tʃeind diliŋ/ noun the business of buy-
in the future 쑗 Manpower planning will ing and selling foreign currencies
depend on forecasting the future levels of foreign exchange market /fɒrin iks
foreign exchange market
production. tʃeind mɑkit/ noun 1. a market where

foreclose /fɔkləυz/ verb to sell a prop-
foreclose
|
people buy and sell foreign currencies 쑗 She
erty because the owner cannot repay money trades on the foreign exchange market. 2.
which he or she has borrowed, using the dealings in foreign currencies 쑗 Foreign
property as security 쑗 to foreclose on a exchange markets were very active after the
mortgaged property dollar devalued.
foreclosure /fɔkləυ ə/ noun an act of
foreclosure
foreign exchange reserves /fɒrin iks

foreign exchange reserves
|
|
foreclosing tʃeind rizvz/ plural noun same as for-

|
foreign banks /fɒrin bŋks/ plural

foreign banks
eign currency reserves

noun banks from other countries which have foreign exchange transfer /fɒrin iks
foreign exchange transfer
branches in a country tʃeind trnsf/ noun the sending of

foreign branch /fɒrin brɑntʃ/ noun a
foreign branch
money from one country to another

branch of a company in another country. The foreign income /fɒrin inkm/ noun
foreign income
accounts of foreign branches may cause income derived from sources in a foreign
problems because of varying exchange country
rates. foreign investments /fɒrin in
foreign investments
foreign company /fɒrin kmp(ə)ni/

foreign company
vestmənts/ plural noun money invested in

noun a company that is registered in a for- other countries
eign country
foreign money order /fɒrin mni
foreign money order
foreign currency /fɒrin krənsi/ noun

foreign currency
ɔdə/ noun a money order in a foreign cur-

money of another country rency which is payable to someone living in
foreign currency account /fɒrin
foreign currency account
a foreign country
krənsi əkaυnt/ noun a bank account in
|
foreign tax credit /fɒrin tks kredit/
foreign tax credit
the currency of another country, e.g. a dollar noun a tax advantage that applies in the case
account in a UK bank of taxes paid to or in another country
foreign currency reserves /fɒrin
foreign currency reserves
foreign trade /fɒrin treid/ noun a trade

foreign trade
krənsi rizvz/ plural noun foreign

|
with other countries

money held by a government to support its
forensic /fərensik/ adjective referring to
forensic
own currency and pay its debts. Also called |
foreign exchange reserves, international the courts or to the law in general

forensic accounting /fərensik ə
forensic accounting
reserves | |
‘…the treasury says it needs the cash to kaυntiŋ/ noun the scrutinisation of an
rebuild its foreign reserves which have entity’s past financial activities in order to
fallen from $19 billion when the govern- discover whether illegal practices have been
ment took office to $7 billion in August’ used at any time
[Economist] forensic partner /fərensik pɑtnə/
forensic partner
foreign earnings /fɒrin niŋz/ plural

foreign earnings
noun a partner in an accountancy firm who
noun earnings received from employment in deals with litigation
a foreign country foreseeable loss /fɔsiəb(ə)l lɒs/
foreseeable loss
foreign entity /fɒrin entiti/ noun a per-

foreign entity
noun a loss which is expected to occur dur-
son or incorporated company based in a for- ing a long-term contract
eign country forfaiting /fɔfitiŋ/ noun the action of
forfaiting
foreign exchange /fɒrin ikstʃeind /

foreign exchange
| providing finance for exporters, where an

noun 1. the business of exchanging the agent or forfaiter accepts a bill of exchange

101 fraction
from an overseas customer; he or she buys forward exchange rate /fɔwəd iks
forward exchange rate
the bill at a discount, and collects the pay- tʃeind reit/ noun a rate for purchase of
ments from the customer in due course foreign currency at a fixed price for delivery
forfeit /fɔfit/ verb to have something
forfeit
at a later date 쑗 What are the forward rates
taken away as a punishment 왍 to forfeit for the pound? Also called forward rate
shares to be forced to give back shares if forward financial statement /fɔwəd
forward financial statement
money called up is not paid on time fainnʃ(ə)l steitmənt/ noun an estimate

|
forfeit clause /fɔfit klɔz/ noun a

forfeit clause
of a company’s future financial position

clause in a contract which says that goods or forwarding agent /fɔwədiŋ eid ənt/
forwarding agent
a deposit will be taken away if the contract noun a person or company which arranges
is not obeyed shipping and customs documents
forfeiture /fɔfitʃə/ noun the act of for-
forfeiture
forward integration /fɔwəd intə

forward integration
feiting a property
|
reiʃ(ə)n/ noun a process of expansion in

form /fɔm/ noun 1. 왍 form of words
form
which a company becomes its own distribu-

words correctly laid out for a legal document tor or takes over a company in the same line
왍 receipt in due form a correctly written of business as itself 쑗 Forward integration
receipt 2. an official printed paper with will give the company greater control over
blank spaces which have to be filled in with its selling. 쑗 Forward integration has
information 쑗 a pad of order forms 쑗 You brought the company closer to its consumers
have to fill in form A20. 쑗 Each passenger and has made it aware of their buying hab-
was given a customs declaration form. 쑗 its. Compare backward integration
The reps carry pads of order forms.
forward margin /fɔwəd mɑd in/
forward margin
formal /fɔm(ə)l/ adjective clearly and

formal
noun the difference between the current

legally written 쑗 to make a formal applica-
tion 쑗 to send a formal order 쑗 Is this a for- price and the forward price
forward market /fɔwəd mɑkit/ noun
forward market
mal job offer? 쑗 The factory is prepared for

the formal inspection by the government a market for purchasing foreign currency, oil
inspector. or commodities for delivery at a later date
forward price /fɔwəd prais/ noun a
forward price
formal documents /fɔm(ə)l

formal documents
dɒkjυmənts/ plural noun documents giv- price of goods which are to be delivered in
ing full details of a takeover bid the future
formality /fɔmliti/ noun something forward rate /fɔwəd reit/ noun same as
formality forward rate
which has to be done to obey the law forward exchange rate

form letter /fɔm letə/ noun a letter
form letter
forward sales /fɔwəd seilz/ plural noun

forward sales
which can be sent without any change to sales of shares, commodities or foreign
several correspondents, e.g. a letter chasing exchange for delivery at a later date
payment forwards
forwards spreading
spreading /fɔwədz
forward /fɔwəd/ adjective in advance or
forward
sprediŋ/ noun the act of spreading lump

to be paid at a later date sum income over several years in the future
forward accounting /fɔwəd ə
forward accounting
|
forward trading /fɔwəd treidiŋ/ noun
forward trading
kaυntiŋ/ noun the practice of using the activity of buying or selling commodi-
accounting procedures to forecast a busi- ties for delivery at a later date
ness’s future performance
founder /faυndə/ noun a person who
founder
forwardation /fɔwədeiʃ(ə)n/ noun a

forwardation
situation in which the cash price is lower starts a company

401(k) plan /fɔ əυ wn kei pln/ noun
401 plan
than the forward price (NOTE: The opposite

is backwardation.) US a personal pension plan arranged by an
forward contract /fɔwəd kɒntrkt/
forward contract
employer for a member of staff, invested in
noun a one-off agreement to buy currency, bonds, mutual funds or stock (the employee
shares or commodities for delivery at a later contributes a proportion of salary, on which
date at a specific price tax is deferred; the employer can also make
forward cover /fɔwəd kvə/ noun an
forward cover
contributions)
fourth quarter /fɔθ kwɔtə/ noun a
fourth quarter
arrangement to cover the risks on a forward

contract period of three months from 1st October to
forward delivery /fɔwəd diliv(ə)ri/
forward delivery
|
the end of the year
fraction /frkʃən/ noun a very small
fraction
noun a delivery at some date in the future

which has been agreed between the buyer amount 쑗 Only a fraction of the new share
and seller issue was subscribed.

fractional 102
fractional /frkʃənəl/ adjective very request. 2. with no restrictions 왍 free of tax
fractional
small with no tax having to be paid 쑗 Interest is

fractional certificate /frkʃənəl sə
fractional certificate
|
paid free of tax. 왍 free of duty with no duty
tifikət/ noun a certificate for part of a share to be paid 쑗 to import wine free of duty 쐽
franc /frŋk/ noun 1. a former unit of cur-
franc
verb to make something available or easy 쑗
rency in France and Belgium 쑗 French The government’s decision has freed mil-
francs or Belgian francs 2. a unit of currency lions of pounds for investment.
in Switzerland and several other currencies ‘American business as a whole is increas-
쑗 It costs twenty-five Swiss francs. ingly free from heavy dependence on man-
franchise /frntʃaiz/ noun a licence to
franchise ufacturing’ [Sunday Times]
free cash flow /fri kʃ fləυ/ noun the
free cash flow
trade using a brand name and paying a roy-

alty for it 쑗 He’s bought a printing franchise level of cash flow after the deduction of
or a pizza franchise. 쐽 verb to sell licences interest payments, tax payments, dividends
for people to trade using a brand name and and ongoing capital expenditure
paying a royalty 쑗 His sandwich bar was so free competition /fri kɒmpətiʃ(ə)n/
free competition
successful that he decided to franchise it. noun the fact of being free to compete with-
‘…many new types of franchised busi- out government interference
nesses will join the ranks of the giant free currency /fri krənsi/ noun a cur-
free currency
chains of fast-food restaurants, hotels and rency which is allowed by the government to
motels and rental car agencies’ [Franchis- be bought and sold without restriction
ing Opportunities] free enterprise /fri entəpraiz/ noun a
free enterprise
franchisee /frntʃaizi/ noun a person

franchisee
|
system of business free from government
who runs a franchise interference
franchiser /frntʃaizə/ noun a person
franchiser
freeholder /frihəυldə/ noun a person

freeholder
who licenses a franchise who owns a freehold property

franchising /frntʃaiziŋ/ noun the act
franchising
freehold property /frihəυld prɒpəti/

freehold property
of selling a licence to trade as a franchise 쑗 noun property which the owner holds for
She runs her sandwich chain as a franchis- ever and on which no rent is paid
ing operation.
free issue /fri iʃu/ noun same as
free issue
franco /frŋkəυ/ adverb free

franco
bonus issue
franked /frŋkd/ adjective on which tax
franked
free market /fri mɑkit/ noun a market

free market
has already been paid in which there is no government control of

fraud /frɔd/ noun the act of making
fraud
supply and demand, and the rights of indi-

money by making people believe something viduals and organisations to physical and
which is not true 쑗 He got possession of the intellectual property are upheld
property by fraud. 쑗 She was accused of free market economy /fri mɑkit i
free market economy
frauds relating to foreign currency. kɒnəmi/ noun an economic system where

fraudulent /frɔdjυlənt/ adjective not
fraudulent
the government does not interfere in busi-

honest, or aiming to cheat people 쑗 a fraud- ness activity in any way
ulent transaction free on board /fri ɒn bɔd/ adjective 1.
free on board
fraudulently /frɔdjυləntli/ adverb not

fraudulently
including in the price all the seller’s costs

honestly 쑗 goods imported fraudulently until the goods are on the ship for transpor-
fraudulent misrepresentation
fraudulent misrepresentation
tation. Abbreviation f.o.b. 2. including in

/frɔdjυlənt misreprizenteiʃ(ə)n/ noun
| | the price all the seller’s costs until the goods
the act of making a false statement with the are delivered to a place
intention of tricking a customer free reserves /fri rizvz/ plural noun
free reserves
fraudulent trading /frɔdjυlənt

fraudulent trading
the part of a bank’s reserves which are above

treidiŋ/ noun the process of carrying on the statutory level and so can be used for var-
the business of a company, knowing that the ious purposes as the bank wishes
company is insolvent free-standing additional voluntary
free-standing additional voluntary contribution
FRB abbreviation 1. Federal Reserve Bank

FRB
contribution /fri stndiŋ ədiʃ(ə)nəl |
2. Federal Reserve Board vɒlənt(ə)ri kɒntribjuʃ(ə)n/ noun a |
free /fri/ adjective, adverb 1. not costing

free
payment made by an individual into an inde-

any money 쑗 I have been given a free ticket pendent pension fund to supplement an
to the exhibition. 쑗 The price includes free occupational pension scheme. The antici-
delivery. 쑗 All goods in the store are deliv- pated benefits from the two schemes
ered free. 쑗 A catalogue will be sent free on together must be less than the maximum

103 full
permitted under the rules laid down by the front-end loading /frnt end ləυdiŋ/
front-end loading
Inland Revenue. Abbreviation FSAVC noun the practice of deducting commission

free trade /fri treid/ noun a system
free trade
and administrative costs relating to an
where goods can go from one country to investment or insurance plan from the early
another without any restrictions payments the customer makes
frozen /frəυz(ə)n/ adjective not allowed
frozen
free trade area /fri treid eəriə/ noun

free trade area
a group of countries practising free trade to be changed or used 쑗 Wages have been
free trader /fri treidə/ noun a person
free trader
frozen at last year’s rates.
frozen account /frəυz(ə)n əkaυnt/
frozen account
who is in favour of free trade |
free trade zone /fri treid zəυn/ noun

free trade zone
noun a bank account where the money can-
an area where there are no customs duties not be moved or used because of a court
order
freeze /friz/ noun 왍 a freeze on wages
freeze
frozen assets /frəυz(ə)n sets/ plural

frozen assets
and prices period when wages and prices

are not allowed to be increased 쐽 verb to noun a company’s assets which by law can-
keep something such as money or costs at not be sold because someone has a claim
their present level and not allow them to rise against them
frozen credits /frəυz(ə)n kreditz/ plu-
frozen credits
쑗 to freeze wages and prices 쑗 to freeze

credits 쑗 to freeze company dividends 쑗 We ral noun credits in an account which cannot
have frozen expenditure at last year’s level. be moved
FRRP abbreviation Financial Reporting
FRRP
(NOTE: freezing – froze – frozen)

freight /freit/ noun the cost of transporting
freight
Review Panel
goods by air, sea, or land 쑗 At an auction, FRSs abbreviation Financial Reporting
FRSs
the buyer pays the freight. Standards

freightage /freitid / noun the cost of frustrate /frstreit/ verb to prevent
freightage frustrate
transporting goods something, especially the terms of a con-

freight costs /freit kɒsts/ plural noun
freight costs
tract, being fulfilled
FSA abbreviation Financial Services
FSA
money paid to transport goods

freight forward /freit fɔwəd/ noun a
freight forward
Authority
FSAVC abbreviation free-standing addi-
FSAVC
deal where the customer pays for transport-

ing the goods tional voluntary contribution
friendly society /frendli səsaiəti/ FT abbreviation Financial Times
friendly society FT
noun a group of people who pay regular sub- FTASI abbreviation FTSE Actuaries Share
FTASI
scriptions which are used to help members Indices

of the group when they are ill or in financial FTSE 100 /fυtsi wn hndrəd/ noun an
FTSE 100
difficulties index based on the prices of one hundred

fringe benefit /frind benifit/ noun an
fringe benefit
leading companies (this is the main London

extra item given by a company to employees index)
in addition to a salary, e.g. company cars or ‘…the benchmark FTSE 100 index ended
private health insurance 쑗 The fringe bene- the session up 94.3 points’ [Times]
fits make up for the poor pay. 쑗 Use of the
FTSE Actuaries Share Indices /fυtsi
FTSE Actuaries Share Indices
company recreation facilities is one of the

fringe benefits of the job. ktjυəriz ʃeə indisiz/ plural noun sev-
eral indices based on prices on the London
FRNs abbreviation floating-rate notes
FRNs
Stock Exchange, which are calculated by

front /frnt/ noun 왍 money up front pay-
front
and published in the Financial Times in con-

ment in advance 쑗 They are asking for junction with the Actuaries Investment
£10,000 up front before they will consider Research Committee. Abbreviation FTASI.
the deal. 쑗 He had to put money up front 쒁 Financial Times
before he could clinch the deal. full /fυl/ adjective 1. with as much inside it
full
front-end /frnt end/ adjective referring

front-end
as possible 쑗 The train was full of commut-

to the start of an investment or insurance ers. 쑗 Is the container full yet? 쑗 We sent a
front-end loaded /frnt end laυdid/
front-end loaded
lorry full of spare parts to our warehouse. 쑗

adjective used to describe an insurance or When the disk is full, don’t forget to make a
investment scheme in which most of the backup copy. 2. complete, including every-
management charges are incurred in the first thing
year of the investment or insurance, and are ‘…a tax-free lump sum can be taken partly
not spread out over the whole period. Com- in lieu of a full pension’ [Investors Chron-
pare back-end loaded icle]

full cost recovery 104

full cost recovery /fυl kɒst rikvəri/ function cost /fŋkʃən kɒst/ noun the
full cost recovery function cost
noun the practice by which organisations category of item for which costs are incurred
such as charities seek enough funding to fund /fnd/ noun 1. money set aside for a
fund
cover all their costs, including overheads. special purpose 2. money invested in an
Abbreviation FCR investment trust as part of a unit trust, or
full cover /fυl kvə/ noun insurance
full cover
given to a financial adviser to invest on

cover against a wide range of risks behalf of a client. 쒁 funds 쐽 verb to provide
full employment /fυl implɔimənt/
full employment
|
money for a purpose 쑗 The company does
noun a situation where all the people who not have enough resources to fund its expan-
can work have jobs sion programme.
full price /fυl prais/ noun a price with no
full price
‘…the S&L funded all borrowers’ devel-
discount 쑗 She bought a full-price ticket. opment costs, including accrued interest’
[Barrons]
full production costs /fυl prədkʃən
full production costs
fund accounting /fnd əkaυntiŋ/

fund accounting
kɒsts/ plural noun all the costs of manufac- |
turing a product, including both fixed and noun the preparation of financial statements
variable costs for an entity such as a non-profitmaking
organisation, in order to show how money
full rate /fυl reit/ noun the standard
full rate
has been spent rather than how much profit

charge for a service, with no special dis- has been made
counts applied
fundamental analysis /fndəment(ə)l
fundamental analysis
full repairing lease /fυl ripeəriŋ lis/

full repairing lease
|
ənləsis/ noun an assessment of how the
|
noun a lease where the tenant has to pay for external and internal influences on a com-
all repairs to the property pany’s activities should affect investment
full-service banking /fυl svis
full-service banking
decisions
bŋkiŋ/ noun banking that offers a whole fundamental
fundamental assumptions
assumptions
range of services including mortgages, /fndəment(ə)l əsmpʃ(ə)ns/ plural
|
loans, pensions, etc. noun the basic assumptions on which the

full-time /fυl taim/ adjective, adverb
full-time
preparation of accounts depends (NOTE:

working all the usual working time, i.e. These assumptions are: that the company
about eight hours a day, five days a week 쑗 is a going concern, that the principles on
She’s in full-time work or She works full- which the accounts are prepared do not
time or She’s in full-time employment. 쑗 He change from year to year, that revenues and
is one of our full-time staff. costs are accrued (i.e., they are written into
fully diluted earnings per share /fυli
fully diluted earnings per share
the accounts when they occur, not when
dailutid niŋz pə ʃeə/, fully diluted
|
they are received or paid).)
EPS /fυli dailutid i pi es/ plural noun fundamental issues /fndəment(ə)l
fundamental issues
earnings per share calculated over the whole iʃuz/ plural noun matters relating to a
number of shares assuming that convertible company’s profits or assets
shares have been converted to ordinary fundamental
fundamental research
research
shares /fndəment(ə)l ristʃ/, fundamental
|
fully paid-up capital /fυli peid p

fully paid-up capital
analysis /fndəment(ə)l ənləsis/ noun

|
kpit(ə)l/ noun all money paid for the an examination of the basic factors which
issued capital shares affect a market
function /fŋkʃən/ noun a mathematical
function
fundamentals /fndəment(ə)lz/ plural

fundamentals
formula, where a result is dependent upon noun the basic realities of a stock market or
several other numbers of a company, e.g. its assets, profitability
functional accounting /fŋkʃən(ə)l ə
functional accounting
|
and dividends
kaυntiŋ/ noun a form of accounting that funded /fndid/ adjective backed by
funded
classifies accountancy items according to long-term loans 쑗 long-term funded capital

the function they perform in an organisation funded scheme /fndid skim/ noun a
funded scheme
functional budget
functional budget
/fŋkʃən(ə)l pension scheme where money is invested in

bd it/ noun a budget relating to a specific securities to create a fund from which the
function such as marketing or personnel pension is later paid
functional reporting of expenses funding /fndiŋ/ noun 1. money for
functional reporting of expenses funding
/fŋkʃən(ə)l ripɔtiŋ əv ikspensiz/ | | spending 쑗 The bank is providing the fund-

noun the element of functional accounting ing for the new product launch. 2. the act of
that deals with expenses changing a short-term debt into a long-term

105 FYA
loan 쑗 The capital expenditure programme fungibility /fnd əbiliti/ noun a meas-
fungibility
requires long-term funding. ure of how easily an asset can be exchanged

fund management
fund management /fnd for something similar

fungible /fnd əb(ə)l/ adjective refer-
fungible
mnid mənt/ noun the business of deal-

ing with the investment of sums of money on ring to a security which can be exchanged
behalf of clients for another of the same type
funny money /fni mni/ noun an unu-
funny money
funds
funds /fndz/ plural noun 1. money which

is available for spending 쑗 The company has sual type of financial instrument created by
no funds to pay for the research programme. a company
쒁 non-sufficient funds 왍 to convert funds future delivery /fjutʃə diliv(ə)ri/
future delivery
to your own use to use someone else’s noun delivery at a later date
money for yourself 2. 왍 the Funds govern- futures /fjutʃəz/ plural noun shares, cur-
futures
ment stocks and securities. 쒁 Federal rency or commodities that are bought or sold
Funds for now for delivery at a later date 쑗 Gold
‘…small innovative companies have been rose 5% on the commodity futures market
hampered for lack of funds’ [Sunday yesterday.
Times] ‘…cocoa futures plummeted in November
‘…the company was set up with funds to their lowest levels in seven years’ [Busi-
totalling NorKr 145m’ [Lloyd’s List] ness in Africa]
futures contract /fjutʃəz kɒntrkt/
futures contract
funds flow /fndz fləυ/ noun 왍 budg-

funds flow
noun a contract for the purchase of com-

eted funds flow statement a plan of antici- modities for delivery at a date in the future
pated incoming funds and the use to which
futures exchange /fjutʃəz iks
futures exchange
they will be put 왍 funds flow method of |
budgeting preparing a budget of funds flow, tʃeind / noun a commodity market which
as opposed to a budget of expenditure 왍 only deals in futures
future value /fjutʃə vlju/ noun the
future value
funds flow statement a statement which

shows the amount of funds (cash and work- value to which a sum of money will increase
ing capital) which have come into a business if invested for a certain period of time at
during the last financial period, the sources some rate of interest. Abbreviation FV
FV abbreviation future value
FV
of these funds, and the use made of the funds

(see FRS1, formerly SSAP10) FYA abbreviation first year allowance
FYA

G
GAAP abbreviation Generally Accepted gearing ratio /iəriŋ reiʃiəυ/ noun any
GAAP gearing ratio
Accounting Principles ratio that compares equity to borrowing

gain /ein/ noun 1. an increase, or the act general audit /d en(ə)rəl ɔdit/ noun
gain general audit
of becoming larger 2. an increase in profit, the process of examining all the books and
price, or value 쑗 Oil shares showed gains on accounts of a company
the Stock Exchange. 쑗 Property shares put general
general average
average /d en(ə)rəl

on gains of 10%-15%. 3. money made by a v(ə)rid / noun a process by which the
company which is not from the company’s cost of lost goods is shared by all parties to
usual trading 쐽 verb 1. to get or to obtain 쑗 an insurance policy, such as in cases where
She gained some useful experience working some goods have been lost in an attempt to
in a bank. 왍 to gain control of a business to save the rest of the cargo
buy more than 50% of the shares so that you general balance sheet /d en(ə)rəl
general balance sheet
can direct the business 2. to rise in value 쑗 bləns ʃit/ noun the standard form of
The dollar gained six points on the foreign balance sheet used by non-commercial
exchange markets. organisations such as charities and govern-
galloping inflation /ləpiŋ in
galloping inflation
|
ment departments
fleiʃ(ə)n/ noun very rapid inflation which General Commissioners /d en(ə)rəl
General Commissioners
is almost impossible to reduce kəmiʃ(ə)nəz/ plural noun a body of unpaid

|
gap analysis /p ənləsis/ noun

gap analysis
|
individuals appointed by the Lord Chancel-
analysis of a market to try to find a particular lor in England, Wales and Northern Ireland,
area that is not at present being satisfied 쑗 and the Secretary of State for Scotland in
Gap analysis showed that there was a whole Scotland, to hear appeals on tax matters
area of the market we were not exploiting. general
general damages
damages /d en(ə)rəl

gap financing /p fainnsiŋ/ noun
gap financing
dmid iz/ plural noun damages awarded

the process of arranging extra loans such as by court to compensate for a loss which can-
a bridging loan to cover a purchase not cov- not be calculated, such as an injury
ered by an existing loan general expenses /d en(ə)rəl ik
general expenses
garnishee /ɑniʃi/ noun a person who

garnishee
|
spensiz/ plural noun minor expenses of
owes money to a creditor and is ordered by various kinds incurred in the running of a
a court to pay that money to a creditor of the business
creditor, and not to the creditor himself general fund /d en(ə)rəl fnd/ noun a
general fund
garnishee order /ɑniʃi ɔdə/ noun

garnishee order
|
unit trust with investments in a variety of
a court order, making a garnishee pay money stocks
not to the debtor, but to a third party general insurance /d en(ə)rəl in
general insurance
GAS abbreviation Government Account-

GAS
ʃυərəns/ noun insurance relating to various

ancy Service potential losses, e.g. theft or damage, but
GDP abbreviation gross domestic product
GDP
excluding life insurance

gear /iə/ verb to link something to some- general ledger /d en(ə)rəl led ə/ noun
gear general ledger
thing else a book which records a company’s income

gearing /iəriŋ/ noun 1. the ratio of cap-
gearing
and expenditure in general
general lien /d en(ə)rəl liən/ noun 1. a
general lien
ital borrowed by a company at a fixed rate of

interest to the company’s total capital. Also right to hold goods or property until a debt
called leverage 2. the act of borrowing has been paid 2. a lien against the personal
money at fixed interest which is then used to possessions of a borrower, but not against
produce more money than the interest paid his or her house or land. 쒁 banker’s lien

107 gold reserves

Generally Accepted Accounting Principles
Generally Accepted Accounting gilts /ilts/ plural noun same as govern-

gilts
Principles /d en(ə)rəli əkseptid ə | |

ment bonds
kaυntiŋ prinsip(ə)lz/ plural noun US a giro /d airəυ/ noun same as bank giro
giro
summary of best practice in respect of the GIV abbreviation gift inter vivos
GIV
form and content of financial statements and GM abbreviation gross margin

GM
auditor’s reports, and of accounting policies GNP abbreviation gross national product
GNP
and disclosures adopted for the preparation goal congruence /əυl kɒŋruəns/
goal congruence
of financial information. GAAP does not noun a situation that leads individuals or
have any statutory or regulatory authority in companies to take actions which are in their
the United Kingdom, unlike in a number of own best interests
other countries where the term is in use, go-go fund /əυ əυ fnd/ noun a fund
go-go fund
such as the United States, Canada. Abbrevi- which aims to give very high returns
ation GAAP because it is invested in speculative stocks
generally accepted auditing standards
generally accepted auditing stand- going concern /əυiŋ kənsn/ noun a

going concern
ards /d en(ə)rəli əkseptid ɔditiŋ |

company that is actively trading and making
stndədz/ plural noun guidelines that are a profit
designed to inform the work of auditors and going concern value /əυiŋ kənsn
going concern value
set out the auditor’s responsibilities vlju/ noun the value of a company as it
general manager
general manager /d en(ə)rəl continues trading as opposed to its break-up

mnid ə/ noun a manager in charge of the value
administration of a company gold bullion /əυld bυliən/ noun bars of
gold bullion
general meeting
general meeting /d en(ə)rəl mitiŋ/ gold

noun a meeting of all the shareholders of a gold card /əυld kɑd/ noun a credit card
gold card
company or of all the members of a society issued to important customers, i.e., those
general partner with a high income, which gives certain
general partner /d en(ə)rəl pɑtnə/ privileges such as a higher spending limit
noun a partner in a business whose responsi- than ordinary credit cards
bility for its debts is not limited and, there- golden
golden handcuffs
handcuffs /əυld(ə)n
fore, whose personal assets may be at risk if hndkfs/ plural noun a contractual
the company’s assets are not sufficient to arrangement to make sure that a valued
discharge its debts member of staff stays in their job, by which
general partnership
general partnership /d en(ə)rəl they are offered special financial advantages
pɑtnəʃip/ noun the relationship of a gen- if they stay and heavy penalties if they leave
eral partner to his or her company golden
golden handshake
handshake /əυld(ə)n
general undertaking
general undertaking /d en(ə)rəl hndʃeik/ noun a large, usually tax-free,

ndəteikiŋ/ noun an undertaking signed
|
sum of money given to a director who retires
by the directors of a company applying for a from a company before the end of his or her
Stock Exchange listing, promising to work service contract 쑗 The retiring director
within the regulations of the Stock received a golden handshake of £250,000.
Exchange golden parachute
golden parachute agreement
agreement
gift aid /əυld(ə)n prəʃut ərimənt/ noun a
gift aid /ift eid/ noun payment above
| |
contract that gives a senior manager very

some limit made to a registered charity, generous monetary compensation if his or
meaning that the charity is able to reclaim job is lost as a result of a merger or acquisi-
the basic rate tax which you have paid on the tion
gift golden share /əυld(ə)n ʃeə/ noun a
golden share
gift inter vivos
gift inter vivos /ift intə vivəυs/ noun share in a privatised company which is
a gift given to another living person. Abbre- retained by the government and carries spe-
viation GIV cial privileges such as the right to veto for-
gift tax
gift tax /ift tks/ noun a tax on gifts. eign takeover bids
Only gifts between husband and wife are goldmine /əυldmain/ noun a mine
goldmine
exempt. which produces gold

gilt-edged
gilt-edged /ilt ed d/ adjective used to gold point /əυld pɔint/ noun an amount
gold point
describe an investment which is very safe by which a currency which is linked to gold
gilt-edged securities
can vary in price
gilt-edged securities /ilt ed d si |
gold reserves /əυld rizvz/ plural
gold reserves
kjυəritiz/ plural noun investments in Brit- noun the country’s store of gold kept to pay
ish government stock international debts

goods 108
goods /υdz/ plural noun items which can Government Accountancy Service
goods Government Accountancy Service
be moved and are for sale 왍 goods received /v(ə)nmənt əkaυntənsi svis/ noun
|
goods which have been sent by a seller and part of HM Treasury, a service whose remit
received by a purchaser during an account- it is to ensure that best accounting practice is
ing period 왍 goods received note an inter- observed and conducted across the whole of
nal note within a company which shows the the Civil Service. Abbreviation GAS
date when goods were received, by whom governmental
governmental
/v(ə)nment(ə)l/
|
and in what quantities adjective referring to a government

‘…profit margins are lower in the indus- government-backed /v(ə)nmənt
government-backed
tries most exposed to foreign competition bkt/ adjective backed by the government
– machinery, transportation equipment
government bonds /v(ə)nmənt
government bonds
and electrical goods’ [Sunday Times]

bɒndz/ plural noun bonds or other securi-
‘…the minister wants people buying
goods ranging from washing machines to ties issued by the government on a regular
houses to demand facts on energy costs’ basis as a method of borrowing money for
[Times] government expenditure
government contractor
government contractor
goods and chattels /υdz ən

goods and chattels
tʃt(ə)lz/ plural noun movable personal /v(ə)nmənt kəntrktə/ noun a com- |
possessions pany which supplies the government with

Goods and Services Tax /υdz ən
Goods and Services Tax goods by contract
government-controlled
government-controlled
svisiz tks/ noun a Canadian tax on the

sale of goods or the provision of services, /v(ə)nmənt kəntrəυld/ adjective under
|
similar to VAT. Abbreviation GST the direct control of the government 쑗

goodwill /υdwil/ noun the good reputa-
goodwill
|
Advertisements cannot be placed in the gov-
tion of a business, which can be calculated ernment-controlled newspapers.
government economic indicators
government economic indicators
as part of a company’s asset value, though

separate from its tangible asset value 쑗 He /v(ə)nmənt ikənɒmik indikeitəz/
paid £10,000 for the goodwill of the shop plural noun statistics which show how the
and £4,000 for the stock. (NOTE: The good- country’s economy is going to perform in
will can include the trading reputation, the the short or long term
government grant /v(ə)nmənt
government grant
patents, the trade names used, the value of

a ‘good site’, etc., and is very difficult to rɑnt/ noun a grant of money or assets
establish accurately.) given by a central government, a local gov-
go private /əυ praivət/ verb to become
go private
ernment or a government agency 쑗 The lab-
a private company again, by concentrating oratory has a government grant to cover the
all its shares in the hands of one or a few cost of the development programme
shareholders and removing its stock government loan /v(ə)nmənt ləυn/
government loan
exchange listing noun money lent by the government

go public /əυ pblik/ phrasal verb to
go public
government-regulated /v(ə)nmənt
government-regulated
become a public company by placing some rejυleitid/ adjective of which the affairs
of its shares for sale on the stock market so are subject to government regulation
that anyone can buy them government sector /v(ə)nmənt
government sector
govern /v(ə)n/ verb to rule a country 쑗

govern
sektə/ noun same as public sector

The country is governed by a group of mili- government securities /v(ə)nmənt
government securities
tary leaders. sikjυəritiz/ plural noun same as govern-

|
governance /v(ə)nəns/ noun the

governance
ment bonds
process of managing a company, especially government-sponsored
government-sponsored
with respect to the soundness or otherwise /v(ə)nmənt spɒnsəd/ adjective

of its management encouraged by the government and backed
‘…the chairman has committed the cardi- by government money 쑗 She is working in a
nal sin in corporate governance – he acted government-sponsored scheme to help small
against the wishes and interests of the businesses.
shareholders’ [Investors Chronicle]
government stock /v(ə)nmənt
government stock
‘…in two significant decisions, the Securi-

ties and Exchange Board of India today stɒk/ noun same as government bonds
government support /v(ə)nmənt
government support
allowed trading of shares through the

Internet and set a deadline for companies səpɔt/ noun a financial help given by the
|
to conform to norms for good corporate government 쑗 The aircraft industry relies on
governance’ [The Hindu] government support.

109 gross income

governor
governor /v(ə)nə/ noun 1. a person in ‘…gold’s drop this year is of the same
charge of an important institution 2. US one magnitude as the greenback’s 8.5% rise’
of the members of the Federal Reserve [Business Week]
Board green card /rin kɑd/ noun 1. a spe-
green card
grace
grace /reis/ noun a favour shown by cial British insurance certificate to prove
granting a delay 쑗 to give a creditor a that a car is insured for travel abroad 2. an
period of grace or two weeks’ grace identity card and work permit for a person
graduate going to live in the US
graduate /rd uət/ noun a person who
green currency /rin krənsi/ noun
green currency
has obtained a degree

graduated formerly, a currency used in the EU for cal-
graduated /rd ueitid/ adjective culating agricultural payments. Each coun-
changing in small regular stages try had an exchange rate fixed by the Com-
graduated income tax
graduated income tax /rd ueitid mission, so there were ‘green pounds’,
inkm tks/ noun a tax which rises in ‘green francs’, ‘green marks’, etc.
steps, with those having the highest income greenmail /rinmeil/ noun the practice
greenmail
paying the highest percentage of tax of making a profit by buying a large number
graduated pension scheme
graduated pension scheme of shares in a company, threatening to take

/rd ueitid penʃən skim/ noun a pen- the company over, and then selling the
sion scheme where the benefit is calculated shares back to the company at a higher price
as a percentage of the salary of each person ‘…he proposes that there should be a limit
in the scheme on greenmail, perhaps permitting payment
graduated taxation
graduated taxation /rd ueitid tk |

of a 20% premium on a maximum of 8%
seiʃ(ə)n/ noun same as progressive taxa- of the stock’ [Duns Business Month]
Green Paper /rin peipə/ noun a report
Green Paper
tion
grand
grand /rnd/ noun one thousand pounds from the British government on proposals
or dollars (informal) 쑗 They offered him fifty for a new law to be discussed in Parliament.
grand for the information. 쑗 She’s earning Compare White Paper
green pound /rin paυnd/ noun a
green pound
fifty grand plus car and expenses.

grand total
grand total /rnd təυt(ə)l/ noun the value for the British pound used in calculat-
final total made by adding several subtotals ing agricultural prices and subsidies in the
grant
EU
grant /rɑnt/ noun money given by the green report /rin ripɔt/ noun a part
green report
government to help pay for something 쑗 The

|
of a company’s annual report dealing with

laboratory has a government grant to cover ecological matters
the cost of the development programme. 쑗
grey market /rei mɑkit/ noun an
grey market
The government has allocated grants

towards the costs of the scheme. 쐽 verb to unofficial market run by dealers, where new
agree to give someone something 쑗 to grant issues of shares are bought and sold before
someone a loan or a subsidy 쑗 to grant they officially become available for trading
on the Stock Exchange even before the share
someone three weeks’ leave of absence 쑗 allocations are known
The local authority granted the company an
gross /rəυs/ noun twelve dozen (144) 쑗
gross
interest-free loan to start up the new factory.

He ordered four gross of pens. (NOTE: no
‘…the budget grants a tax exemption for plural) 쐽 adjective total, with no deductions
$500,000 in capital gains’ [Toronto Star] 쐽 adverb with no deductions 쑗 My salary is
grantor
grantor /rɑntɔ/ noun a person who

| paid gross.
grants a property to another ‘…gross wool receipts for the selling sea-
graph
graph /rɑf/ noun a diagram which shows son to end June appear likely to top $2 bil-
the relationship between two sets of quanti- lion’ [Australian Financial Review]
ties or values, each of which is represented gross domestic product /rəυs də
gross domestic product
on an axis 쑗 A graph was used to show sal- mestik prɒdkt/ noun the annual value of
ary increases in relation to increases in out- goods sold and services paid for inside a
put. 쑗 According to the graph, as average country. Abbreviation GDP
salaries have risen so has absenteeism. gross earnings /rəυs niŋz/ plural
gross earnings
gratis
gratis /rtis/ adverb free or not costing noun total earnings before tax and other
anything 쑗 We got into the exhibition gratis. deductions
greenback
greenback /rinbk/ noun US a dollar gross income /rəυs inkm/ noun a

gross income
bill (informal) salary before tax is deducted

gross interest 110

gross interest /rəυs intrəst/ noun the ground rent /raυnd rent/ noun a rent
gross interest ground rent
interest earned on a deposit or security paid by the main tenant to the ground land-
before the deduction of tax. 쒁 net interest lord
group /rup/ noun 1. several things or
group
gross margin /rəυs mɑd in/ noun

gross margin
the percentage difference between the people together 쑗 A group of managers has
received price and the unit manufacturing sent a memo to the chairman complaining
cost or purchase price of goods for resale. about noise in the office. 쑗 The respondents
Abbreviation GM were interviewed in groups of three or four,
gross margin pricing /rəυs mɑd in
gross margin pricing
and then singly. 2. several companies linked
praisiŋ/ noun pricing that takes into together in the same organisation 쑗 the
account the total production costs of a prod- group chairman or the chairman of the
uct group 쑗 group turnover or turnover for the
gross margin ratio /rəυs mɑd in
gross margin ratio group 쑗 the Granada Group
group accounts /rup əkaυnts/ plural
group accounts
reiʃiəυ/ noun same as gross profit margin |
noun accounts for a holding company and

gross national product /rəυs
gross national product
its subsidiaries
nʃ(ə)nəl prɒdkt/ noun the annual
group balance sheet /rup bləns
group balance sheet
value of goods and services in a country

including income from other countries. ʃit/ noun same as consolidated balance
Abbreviation GNP sheet
group depreciation /rup dipriʃi
group depreciation
gross profit /rəυs prɒfit/ noun a profit

gross profit | |
calculated as sales income less the cost of eiʃ(ə)n/ noun a way of calculating depreci-
the goods sold, i.e. without deducting any ation for multiple assets that are similar in
other expenses nature and have a similar useful life
group financial statement /rup fai
group financial statement
gross profit analysis /rəυs prɒfit ə

gross profit analysis |
nnʃ(ə)l steitmənt/ noun same as con-

nləsis/ noun analysis of the discrepancy solidated financial statement
between actual profit and budgeted profit or
group results /rup rizlts/ plural
group results
previous year’s profit |
noun the end-of-year financial statements

gross profit margin /rəυs prɒfit
gross profit margin
and accounts of a group of companies

mɑd in/ noun the percentage of each
growth /rəυθ/ noun the fact of becoming
growth
pound of income from sales that remains

after goods sold have been paid for by the larger or increasing
producer or retailer ‘…a general price freeze succeeded in
slowing the growth in consumer prices’
gross profit method /rəυs prɒfit
gross profit method
[Financial Times]
meθəd/ noun a method of estimating inven-
tory at the point of preparing an interim ‘…growth in demand is still coming from
the private rather than the public sector’
report [Lloyd’s List]
gross receipts /rəυs risits/ plural
gross receipts
|
‘…population growth in the south-west is
noun the total amount of money received again reflected by the level of rental val-
before expenses are deducted ues’ [Lloyd’s List]
gross salary /rəυs sləri/ noun same
gross salary
growth index /rəυθ indeks/ noun an

growth index
as gross income index showing the growth in a company’s

gross sales /rəυs seilz/ plural noun
gross sales
revenues, earnings, dividends or other fig-

money received from sales before deduc- ures
tions for goods returned, special discounts, growth prospects /rəυθ prɒspekts/
growth prospects
etc. 쑗 Gross sales are impressive since many plural noun potential for growth in a share
buyers seem to be ordering more than they growth rate /rəυθ reit/ noun the speed
growth rate
will eventually need. at which something grows

gross turnover /rəυs tnəυvə/ noun
gross turnover
GST abbreviation Goods and Services Tax

GST
the total turnover including VAT and dis- ‘…because the GST is applied only to fees
counts for brokerage and appraisal services, the
gross yield /rəυs jild/ noun a profit
gross yield
new tax does not appreciably increase the

from investments before tax is deducted price of a resale home’ [Toronto Globe &
ground landlord /raυnd lndlɔd/
ground landlord
Mail]
noun a person or company that owns the guarantee /rənti/ noun 1. a legal
guarantee
freehold of a property which is then let and document in which the producer agrees to
sublet 쑗 Our ground landlord is an insur- compensate the buyer if the product is faulty
ance company. or becomes faulty before a specific date after

111 guarantor
purchase 쑗 a certificate of guarantee or a
guaranteed bond
guaranteed bond /rəntid bɒnd/

|
guarantee certificate 쑗 The guarantee lasts noun in the United States, a bond or stock on
for two years. 쑗 It is sold with a twelve- which the principal and interest are guaran-
month guarantee. 2. a promise that someone teed by a company that is not the issuing
will pay another person’s debts 왍 company company
limited by guarantee company where each guaranteed wage
member stated in the memorandum of asso- guaranteed wage /rəntid weid /

ciation how much money he will contribute noun a wage which a company promises
to the company if it becomes insolvent (as will not fall below a specific figure
guarantor
opposed to a company limited by shares) 3. guarantor /rəntɔ/ noun a person

|
something given as a security 쑗 to leave who promises to pay another person’s debts
share certificates as a guarantee 쐽 verb to if he or she should fail to 쑗 She stood guar-
give a promise that something will happen antor for her brother.

H
half-year /hɑf jiə/ noun six months of head office /hed ɒfis/ noun an office
half-year head office
an accounting period building where the board of directors works

half-yearly /hɑf jiəli/ adjective happen-
half-yearly
and meets
ing every six months, or referring to a period headquarters /hedkwɔtəz/ plural noun
headquarters
of six months 쑗 half-yearly accounts 쑗 half- the main office, where the board of directors
yearly payment 쑗 half-yearly statement 쑗 a meets and works 쑗 The company’s head-
half-yearly meeting 쐽 adverb every six quarters are in New York.
months 쑗 We pay the account half-yearly. heads of agreement /hedz əv ə
heads of agreement
handling charge /hndliŋ tʃɑd /

handling charge
rimənt/ plural noun 1. a draft agreement

noun money to be paid for packing, invoic- with not all the details complete 2. the most
ing and dealing with goods which are being important parts of a commercial agreement
shipped health insurance /helθ inʃυərəns/
health insurance
hard cash /hɑd kʃ/ noun money in

hard cash
noun insurance which pays the cost of treat-

notes and coins, as opposed to cheques or ment for illness, especially when travelling
credit cards abroad
hard currency /hɑd krənsi/ noun the healthy /helθi/ adjective 왍 a healthy bal-
hard currency
healthy
currency of a country which has a strong ance sheet a balance sheet which shows a
economy, and which can be changed into good profit
other currencies easily 쑗 to pay for imports heavy industry /hevi indəstri/ noun an
heavy industry
in hard currency 쑗 to sell raw materials to industry which deals in heavy raw materials
earn hard currency Also called scarce cur- such as coal or makes large products such as
rency ships or engines
hardening /hɑd(ə)niŋ/ adjective (of a
hardening
hedge /hed / noun a protection against a

hedge
market) slowly moving upwards possible loss, which involves taking an

hard landing /hɑd lndiŋ/ noun a
hard landing
action which is the opposite of an action

change in economic strategy to counteract taken earlier 쐽 verb to protect against the
inflation which has serious results for the risk of a loss 왍 to hedge your bets to make
population such as high unemployment, ris- investments in several areas so as to be pro-
ing interest rates, etc. tected against loss in one of them 왍 to hedge
head and shoulders /hed ən ʃəυldəz/
head and shoulders
against inflation to buy investments which

noun a term used by chartists showing a will rise in value faster than the increase in
share price which rises to a peak, then falls the rate of inflation
slightly, then rises to a much higher peak, ‘…during the 1970s commercial property
then falls sharply and rises to a lower peak was regarded by investors as an alternative
before falling again, looking similar to a per- to equities, with many of the same infla-
son’s head and shoulders when shown on a tion-hedge qualities’ [Investors Chroni-
graph cle]
headlease /hedlis/ noun a lease from
headlease
‘…the move saved it from having to pay

the freehold owner to a tenant its creditors an estimated $270 million
headline inflation rate /hedlain in
headline inflation rate
| owed in connection with hedge contracts

fleiʃ(ə)n reit/ noun a British inflation fig- which began working against the company
ure which includes items such as mortgage when the price of gold rose unexpectedly
interest and local taxes, which are not during September’ [Business in Africa]
hedge fund /hed fnd/ noun a partner-
hedge fund
included in the inflation figures for other

countries. Compare underlying inflation ship open to a small number of rich inves-
rate tors, which invests in equities, currency

113 historical cost concept

futures and derivatives and may produce ‘…in a leveraged buyout the acquirer
high returns but carries a very high risk raises money by selling high-yielding
‘…much of what was described as near debentures to private investors’ [Fortune]
hysteria was the hedge funds trying to liq- higher-rate tax /haiə reit tks/ noun
higher-rate tax
uidate bonds to repay bank debts after los- in the United Kingdom, the highest of the
ing multi-million dollar bets on specula- three bands of income tax. Most countries
tions that the yen would fall against the have bands of income tax with different
dollar’ [Times] rates applicable to income within each band.
high finance /hai fainns/ noun the
high finance
‘…hedge funds generally have in common

an ability to sell short (that is, sell stocks lending, investing and borrowing of very
you do not own), and to increase growth large sums of money organised by financiers
prospects – and risk – by borrowing to high gearing /hai iəriŋ/ noun a situa-
high gearing
enhance the fund’s assets’ [Money tion where a company has a high level of
Observer] borrowing compared to its share price
‘…the stock is a hedge fund – limited by high-income /hai inkm/ adjective
high-income
the Securities and Exchange Commission used for referring to a fund that yields a high
to only wealthy individuals and qualified rate of return 쑗 high-income shares 쑗 a
institutions’ [Smart Money] high-income portfolio
hedging
hedging /hed iŋ/ noun the act of buying highly-geared company /haili iəd
highly-geared company
investments at a fixed price for delivery kmp(ə)ni/ noun a company which has a
later, so as to protect against possible loss high proportion of its funds from fixed-
hereditament
hereditament /heriditəmənt/ noun a

|
interest borrowings
property, including land and buildings highly-paid /haili peid/ adjective earn-
highly-paid
hidden asset
hidden asset /hid(ə)n set/ noun an ing a large salary

high yield /hai jild/ noun a dividend
high yield
asset which is valued much less in the com-

pany’s accounts than its true market value yield which is higher than is usual for the
hidden economy type of company
hidden economy /hid(ə)n ikɒnəmi/
hike /haik/ noun an increase 쐽 verb to
| hike
noun same as black economy

hidden reserves
increase
hidden reserves /hid(ə)n rizvz/ plu- |
hire /haiə/ noun an arrangement whereby
hire
ral noun 1. reserves which are not easy to customers pay money to be able to use a car,
identify in the company’s balance sheet. boat or piece of equipment owned by some-
Reserves which are illegally kept hidden are one else for a time (NOTE: The more usual
called ‘secret reserves’. 2. illegal reserves term in the US is rent)
which are not declared in the company’s bal- hire purchase /haiə ptʃis/ noun a
hire purchase
ance sheet system of buying something by paying a

hidden tax
hidden tax /hid(ə)n tks/ noun a tax that sum regularly each month 쑗 to buy a refrig-
is not immediately apparent. For example, erator on hire purchase (NOTE: The US term
while a consumer may be aware of a tax on is installment credit, installment plan or
retail purchases, a tax imposed at the whole- installment sale.)
sale level, which consequently increases the hire purchase agreement /haiə
hire purchase agreement
cost of items to the retailer, will not be ptʃis ərimənt/ noun a contract to pay
|
apparent. for something by instalments

hierarchy of activities
hierarchy of activities /haiərɑki əv hire-purchase

hire-purchase company
company /haiə
ktivitiz/ noun a diagrammatic represen-
| ptʃis kmp(ə)ni/ noun a company
tation of the relative importance of activities which provides money for hire purchase
undertaken in the running of a business historical cost /histɒrik(ə)l kɒst/, his-
historical cost
high /hai/ adjective large, not low 쑗 High toric cost /histɒrik kɒst/ noun the actual
high
overhead costs increase the unit price. 쑗 cost of purchasing something which was
They are budgeting for a high level of bought some time ago
expenditure. 쑗 High interest rates are crip- historical cost accounting /hi
historical cost accounting
pling small businesses. 쐽 noun a point stɒrik(ə)l kɒst əkaυntiŋ/ noun the prep-
|
where prices or sales are very large 쑗 Prices aration of accounts on the basis of historical
have dropped by 10% since the high of Jan- cost, with assets valued at their original cost
uary 2nd. of purchase. Compare current cost
‘American interest rates remain exception- accounting
ally high in relation to likely inflation historical cost concept /histɒrik(ə)l
historical cost concept
rates’ [Sunday Times] kɒst kɒnsept/, historical cost conven-

historical cost depreciation 114

tion /histɒrik(ə)l kɒst kənvenʃən/ noun
| | sell 쑗 You should hold these shares – they
a basis for the treatment of assets in financial look likely to rise.
statements where they are recorded at their ‘…as of last night, the bank’s shareholders
historical cost, without adjustment for infla- no longer hold any rights to the bank’s
tion or other price variations (NOTE: Use shares’ [South China Morning Post]
‘historical cost convention’ not ‘historic cost hold down phrasal verb to keep at a low
convention’.) level 쑗 We are cutting margins to hold our
historical cost depreciation /hi
historical cost depreciation
| prices down.
stɒrik(ə)l kɒst dipriʃieiʃ(ə)n/ noun
|
‘…real wages have been held down; they
depreciation based on the original cost of the have risen at an annual rate of only 1% in
asset the last two years’ [Sunday Times]
historical figures /histɒrik(ə)l fiəz/
historical figures
|
hold up phrasal verb 1. to stay at a high lev-
plural noun figures that were correct at the el 쑗 Share prices have held up well. 쑗 Sales
time of purchase or payment, as distinct held up during the tourist season. 2. to delay
from, e.g., a current saleable value or market something 쑗 The shipment has been held up
value at customs. 쑗 Payment will be held up until
historical pricing /histɒrik(ə)l
historical pricing
| the contract has been signed.

praisiŋ/ noun a method of setting prices for holder
holder /həυldə/ noun 1. a person who

a good or service that is based on prices pre- owns or keeps something 쑗 holders of gov-
viously set. Sometimes revised prices may ernment bonds or bondholders 쑗 holder of
take into account the effects of inflation. stock or of shares in a company 쑗 holder of
historical summary /histɒrik(ə)l
historical summary
| an insurance policy or policy holder 2. a

sməri/ noun in the United Kingdom, an thing which keeps something, which pro-
optional synopsis of a company’s results tects something
over a period of time, often five or ten years, holders of record
holders of record /həυldəz əv rekɔd/

featured in the annual accounts plural noun the owners of a company’s
historical trading range /histɒrik(ə)l
historical trading range
|
shares
treidiŋ reind / noun the difference hold harmless letter /həυld hɑmləs
hold harmless letter
between the highest and lowest price for a letə/ noun a letter issued by parties to a
share or bond over a period of time business deal to reporting accountants stat-
hive /haiv/ verb
hive
ing that the accountants will not be held

hive off phrasal verb to split off part of a responsible for any losses suffered on the
large company to form a smaller subsidiary deal
쑗 The new managing director hived off the holding
holding /həυldiŋ/ noun a group of shares

retail sections of the company. owned 쑗 She has sold all her holdings in the
HM Revenue & Customs /eitʃ em
HM Revenue & Customs
Far East. 쑗 The company has holdings in

revənju ən kstəmz/ noun a UK gov- German manufacturing companies.
ernment department which deals with taxes holding
holding company
company /həυldiŋ
on imports and on products such as alcohol kmp(ə)ni/ noun 1. a company which
produced in the country. It also deals with owns more than 50% of the shares in another
VAT and tax credits. Abbreviation HMRC company. 쒁 subsidiary company 2. a com-
HM Treasury /eitʃ em tre əri/ noun
HM Treasury
pany which exists only or mainly to own

the UK government department responsible shares in subsidiary companies. 쒁 subsidi-
for managing the country’s public revenues. ary
The department is run on a day-to-day basis holding cost /həυldiŋ kɒst/ noun the
holding cost
by the Chancellor of the Exchequer. cost of keeping items of stock including

hoard /hɔd/ verb to buy and store goods in
hoard
warehousing and handling costs, insurance,

case of need losses through deterioration, wastage, theft,
hoarder /hɔdə/ noun a person who buys
hoarder
etc. and the cost of capital used to acquire

and stores goods in case of need the stock measured in terms of the interest
hold /həυld/ noun 1. the bottom part of a
hold
lost on the money which was spent on pur-
ship or aircraft, in which cargo is carried 2. chasing the stock in the first place or the
the action of keeping something 쐽 verb 1. to interest paid on the loans which were needed
own or to keep something 쑗 She holds 10% to finance the purchase of the stock
home banking /həυm bŋkiŋ/ noun a
home banking
of the company’s shares. 2. to make some-

thing happen 쑗 The receiver will hold an system of banking using a personal compu-
auction of the company’s assets. 3. not to ter in your own home to carry out various

115 hypothecation
financial transactions such as paying house /haυs/ noun a company 쑗 the larg-
house
invoices or checking your bank account est London finance house 쑗 a brokerage
home loan /həυm ləυn/ noun a loan by a
home loan
house 쑗 a publishing house

bank or building society to help someone household goods
household goods /haυshəυld υdz/

buy a house plural noun items which are used in the
home trade /həυm treid/ noun trade in
home trade
home
the country where a company is based human capital accounting
honorarium /ɒnəreəriəm/ noun money

honorarium
|
human capital accounting /hjumən
paid to a professional person such as an kpit(ə)l əkaυntiŋ/ noun an attempt to
|
accountant or a lawyer when a specific fee place a financial value on the knowledge and
has not been requested (NOTE: The plural is skills possessed by the employees of an
honoraria.) organisation. Also called human asset
honorary /ɒnərəri/ adjective not paid a
honorary accounting, human resource account-
salary for the work done for an organisation ing
hurdle rate
쑗 He is honorary president of the transla- hurdle rate /hd(ə)l reit/ noun a mini-
tors’ association. mum rate of return needed by a bank to fund
honorary
honorary secretary
secretary /ɒnərəri a loan, the rate below which a loan is not

sekrət(ə)ri/ noun a person who keeps the profitable for the bank
minutes and official documents of a com- hybrid
hybrid /haibrid/ noun a combination of

mittee or club, but is not paid a salary financial instruments, e.g., a bond with war-
honorary treasurer /ɒnərəri tre ərə/
honorary treasurer
rants attached, or a range of cash and deriv-

noun a treasurer who does not receive any ative instruments designed to mirror the per-
fee formance of a financial market
honour /ɒnə/ verb to pay something
honour
hyper-
hyper- /haipə/ prefix very large

because it is owed and is correct 쑗 to honour hyperinflation
a bill (NOTE: The US spelling is honor.) hyperinflation /haipərinfleiʃ(ə)n/

|
horizontal integration /hɒrizɒnt(ə)l

horizontal integration
noun inflation which is at such a high per-
intireiʃ(ə)n/ noun the process of joining
|
centage rate that it is almost impossible to
similar companies or taking over a company reduce
in the same line of business as yourself
hypothecation
hypothecation /haipɒθəkeiʃ(ə)n/
| |
hostile bid /hɒstail bid/ noun same as

hostile bid
noun 1. an arrangement in which property

contested takeover such as securities is used as collateral for a
hot money /hɒt mni/ noun 1. money
hot money
loan but without transferring legal owner-

which is moved from country to country to ship to the lender, as opposed to a mortgage,
get the best returns 2. money that has been where the lender holds the title to the prop-
obtained by dishonest means. 쒁 money erty 2. an action of earmarking money
laundering derived from specific sources for related
hour /aυə/ noun 1. a period of time lasting
hour
expenditure, as when investing taxes from
sixty minutes 2. sixty minutes of work 쑗 She private cars or petrol sales solely on public
earns £14 an hour. 쑗 We pay £16 an hour. transport

I
IAASB abbreviation International Auditing IFA abbreviation 1. independent financial
IAASB IFA
and Assurance Standards Board adviser 2. Institute of Financial Accountants

IAS abbreviation International Accounting IFAC abbreviation International Federation
IAS IFAC
Standards of Accountants
IASB abbreviation International Account- IFRIC abbreviation International Financial
IASB IFRIC
ing Standards Board Reporting Interpretations Committee

IASC abbreviation International Account- IFRS abbreviation International Financial
IASC IFRS
ing Standards Committee Reporting Standards

IBRD abbreviation International Bank for IHT abbreviation inheritance tax
IBRD IHT
Reconstruction and Development (the illegal /ili(ə)l/ adjective not legal or
illegal
World Bank) against the law

ICAEW abbreviation Institute of Chartered
ICAEW
illegality /ililiti/ noun the fact of

illegality
Accountants in England and Wales being illegal

ICAI abbreviation Institute of Chartered illegally /iliəli/ adverb against the law 쑗
ICAI illegally
Accountants in Ireland He was accused of illegally laundering

ICANZ abbreviation Institute of Chartered
ICANZ
money.
Accountants of New Zealand illicit /ilisit/ adjective not legal or not per-
illicit
ICAS abbreviation Institute of Chartered

ICAS
mitted 쑗 the illicit sale of alcohol
Accountants in Scotland illiquid /ilikwid/ adjective 1. referring to
illiquid
ICSID abbreviation International Centre for

ICSID
an asset which is not easy to change into
Settlement of Investment Disputes cash 2. used to describe a person or business
ICTA abbreviation Income and Corporation
ICTA
that lacks cash or assets such as securities
Taxes Act that can readily be converted into cash
IMA abbreviation 1. Institute of Manage-
IMA
ideal capacity /aidiəl kəpsiti/ noun

ideal capacity
| |
the greatest volume of output possible, ment Accountants 2. Investment Manage-

which would be produced only in ideal con- ment Association
IMF abbreviation International Monetary
IMF
ditions in which optimum capacity was

maintained constantly Fund
immovable /imuvəb(ə)l/ adjective
immovable
idle capacity /aid(ə)l kəpsiti/ noun 1.

idle capacity
| |
the existence of unused capacity 2. a situa- impossible to move

tion in which a given market will not absorb immovable property /imuvəb(ə)l
immovable property
all of the goods produced in that sector prɒpəti/ noun houses and other buildings
idle capacity variance /aid(ə)l kə
idle capacity variance
|
on land
psiti veəriəns/ noun a level of capacity impact /impkt/ noun a shock or strong
impact
that is lower than that forecast or budgeted effect 쑗 the impact of new technology on the
for cotton trade 쑗 The new design has made lit-
idle capital /aid(ə)l kpit(ə)l/ noun
idle capital
tle impact on the buying public.
capital which is not being used productively impact statement /impkt
impact statement
idle time /aid(ə)l taim/ noun the time for

idle time
steitmənt/ noun a written statement out-
which employees are paid although they are lining the effects of something on an indi-
unable to work because of factors beyond vidual or company
their control 쑗 Idle time in January was impairment of capital /impeəmənt əv
impairment of capital
attributed to the temporary closing down of kpit(ə)l/ noun the extent to which the
one of the company’s factories. 쑗 Workers value of a company is less than the par value
were laid off to avoid excessive idle time. of its shares

117 incentive
impairment of value /impeəmənt əv 쑗 Imports from Poland have risen to $1m a
impairment of value
vlju/ noun a decline in the value of an year. (NOTE: Usually used in the plural, but
asset such that its original cost can never be the singular is used before a noun.)
recovered import surcharge /impɔt stʃɑd /
import surcharge
impersonal account /imps(ə)n(ə)l ə noun the extra duty charged on imported

impersonal account
| |
kaυnt/ noun any account other than a per- goods, to try to stop them from being
sonal account, being classified as either a imported and to encourage local manufac-
real account, in which property is recorded, ture
or a nominal account, in which income, impose /impəυz/ verb to give orders for
impose
expenses and capital are recorded. 쒁 something regarded as unpleasant or

account, personal account unwanted, such as a tax or a ban 쑗 to impose
implement /impliment/ verb to put into a tax on bicycles 쑗 They tried to impose a
implement
action 쑗 to implement an agreement 쑗 to ban on smoking. 쑗 The government imposed

implement a decision a special duty on oil.
implementation /implimənteiʃ(ə)n/ imposition /impəziʃ(ə)n/ noun the act
implementation imposition
| |
noun the process of putting something into of imposing something

action 쑗 the implementation of new rules impound /impaυnd/ verb to take some-
impound
import /impɔt/ verb to bring goods from thing away and keep it until a tax is paid 쑗
import
abroad into a country for sale 쑗 The com- Customs impounded the whole cargo.
pany imports television sets from Japan. 쑗 impounding /impaυndiŋ/ noun an act of
impounding
This car was imported from France. taking something and keeping it until a tax is
importation /impɔteiʃ(ə)n/ noun the
importation
| paid
act of importing 쑗 The importation of arms imprest account /imprest əkaυnt/
imprest account
is forbidden. 쑗 The importation of livestock noun a UK term for a record of the transac-
is subject to very strict controls. tions of a type of petty cash system. An
import ban /impɔt bn/ noun a govern-
import ban
employee is given an advance of money, an

ment order forbidding imports of a particu- imprest, for incidental expenses and when
lar kind or from a particular country 쑗 The most of it has been spent, he or she presents
government has imposed an import ban on receipts for the expenses to the accounts
arms. department and is then reimbursed with cash
import duty /impɔt djuti/ noun a tax
import duty
to the total value of the receipts.
on goods imported into a country imprest system /imprest sistəm/
imprest system
importer /impɔtə/ noun a person or

importer
| noun a system of controlling petty cash,

company that imports goods 쑗 a cigar where cash is paid out against a written
importer 쑗 The company is a big importer of receipt and the receipt is used to get more
foreign cars. cash to bring the float to the original level
improved offer /impruvd ɒfə/ noun an
improved offer
import-export /impɔt ekspɔt/ adjec-

import-export
|
tive, noun referring to business which deals offer which is larger or has better terms than
with both bringing foreign goods into a the previous offer
country and sending locally made goods imputation system /impjuteiʃ(ə)n
imputation system
abroad 쑗 Rotterdam is an important centre sistəm/ noun a former system of taxation

for the import-export trade. 쑗 She works in of dividends, where the company paid
import-export. Advance Corporation Tax on the dividends
import levy /impɔt levi/ noun a tax on
import levy
it paid to its shareholders, and the sharehold-
imports, especially in the EU a tax on ers paid no tax on the dividends received,
imports of farm produce from outside the assuming that they paid tax at the standard
EU rate
inactive account /inktiv əkaυnt/
inactive account
import quota /impɔt kwəυtə/ noun a

import quota
| |
fixed quantity of a particular type of goods noun a bank account which is not used over
which the government allows to be imported a period of time
쑗 The government has imposed a import inactive market /inktiv mɑkit/
inactive market
quota on cars. noun a stock market with few buyers or sell-

import restrictions /impɔt ri
import restrictions
| ers
strikʃ(ə)nz/ plural noun actions taken by a incentive /insentiv/ noun something
incentive
government to reduce the level of imports by which encourages a customer to buy, or

imposing quotas, duties, etc. employees to work better
imports /impɔts/ plural noun goods
imports
‘…some further profit-taking was seen

brought into a country from abroad for sale yesterday as investors continued to lack

incentive bonus 118

fresh incentives to renew buying activity’ higher than the rate of inflation’ [Guard-
[Financial Times] ian]
income account /inkm əkaυnt/ noun
income account
‘…a well-designed plan can help compa- |
nies retain talented employees and offer an account that lists revenue and expenses,
enticing performance incentives – all at an as distinct from a balance sheet account
affordable cost’ [Fortune] income bond /inkm bɒnd/ noun a
income bond
‘…the right incentives can work when bond that pays a rate of return in proportion
used strategically’ [Management Today] to the issuer’s income
‘…an additional incentive is that the Japa- income distribution /inkm distri
income distribution
nese are prepared to give rewards where bjuʃ(ə)n/ noun the UK term for the pay-
they are due’ [Management Today] ment to investors of the income generated by
incentive bonus /insentiv bəυnəs/,
incentive bonus
|
a collective investment, less management
incentive payment /insentiv peimənt/
|
charges, tax and expenses. It is distributed in
noun an extra payment offered to employees proportion to the number of units or shares
to make them work better held by each investor.
income gearing /inkm iəriŋ/ noun
income gearing
incentive scheme /insentiv skim/

incentive scheme
noun a plan to encourage better work by the ratio of the interest a company pays on
paying higher commission or bonuses 쑗 its borrowing shown as a percentage of its
Incentive schemes are boosting production. pretax profits before the interest is paid
income per head /inkm pə hed/,
income per head
incentive stock option /insentiv

incentive stock option
stɒk ɒpʃən/ noun (in the United States) a income per capita noun same as per cap-
plan that gives each qualifying employee the ita income
income recognition /inkm
income recognition
right to purchase a specific number of the

corporation’s shares at a set price during a rekəniʃ(ə)n/ noun the policy under which
specific time period (NOTE: Tax is only pay- income is shown in an account
income shares /inkm ʃeəz/ plural
income shares
able when the shares are sold.)

inchoate /inkəυət/ adjective referring to
inchoate
|
noun shares in an investment trust that
an instrument which is incomplete receive income from the investments, but do
not benefit from any rise in capital value of
incidence of tax /insid(ə)ns əv tks/
incidence of tax
the investments
noun the point at which a tax is ultimately income smoothing /inkm smuðiŋ/
income smoothing
paid. For example, although a retailer pays noun a UK term for a form of creative
any sales tax to the tax collecting authority, accounting that involves the manipulation of
the tax itself is ultimately paid by the cus- a company’s financial statements to show
tomer. steady annual profits rather than large fluc-
incidental expenses /insident(ə)l ik
incidental expenses
|
tuations
spensiz/ plural noun small amounts of income summary /inkm sməri/
income summary
money spent at various times in addition to noun a summary showing a company’s net
larger amounts profit or net loss for the year
include /inklud/ verb to count something
include
income support /inkm səpɔt/ noun

income support
|
|
along with other things 쑗 The charge a government benefit paid to low-income
includes VAT. 쑗 The total is £140 not includ- earners who are working less than 16 hours
ing insurance and freight. 쑗 The account per week, provided they can show that they
covers services up to and including the are actively looking for jobs. Abbreviation
month of June. IS
inclusive /inklusiv/ adjective counting
inclusive
income tax /inkm tks/ noun 1. the tax

income tax
something in with other things 쑗 inclusive of on a person’s income, both earned and
tax 쑗 not inclusive of VAT unearned 2. the tax on the profits of a corpo-
income /inkm/ noun 1. money which a
income
ration
person receives as salary or dividends 왍 income tax form /inkm tks fɔm/
income tax form
lower income bracket, upper income noun a form to be completed which declares
bracket the groups of people who earn low all income to the tax office
or high salaries considered for tax purposes income tax return /inkm tks ri
income tax return
2. money which an organisation receives as tn/ noun a completed tax form, with
gifts or from investments 쑗 The hospital has details of income and allowances. Also
a large income from gifts. called declaration of income, tax return
‘…there is no risk-free way of taking reg- income units /inkm junits/ plural
income units
ular income from your money much noun units in a unit trust, from which the

119 independent variable

investor receives dividends in the form of costs and revenues that occur when business
income activity changes
incomplete records /inkəmplit incremental budgeting
incomplete records incremental budgeting
rekɔdz/ plural noun an accounting system /iŋkriment(ə)l bd itiŋ/ noun a method
which is not double-entry bookkeeping. Var- of setting budgets in which the prior period
ious degrees of incompleteness can occur, budget is used as a base for the current
e.g., single-entry bookkeeping, in which budget, which is set by adjusting the prior
usually only a cash book is maintained. period budget to take account of any antici-
inconvertible /inkənvtəb(ə)l/ adjec-
inconvertible
|
pated changes
incremental cost /iŋkriment(ə)l kɒst/
incremental cost
tive referring to currency which cannot be

easily converted into other currencies noun the cost of making extra units above
incorporate /inkɔpəreit/ verb 1. to
incorporate
|
the number already planned. This may then
bring something in to form part of a main include further fixed costs.
group 쑗 Income from the 1998 acquisition is incremental increase /iŋkriment(ə)l
incremental increase
incorporated into the accounts. 2. to form a inkris/ noun an increase in salary accord-
registered company 쑗 a company incorpo- ing to an agreed annual increment
rated in the US 쑗 an incorporated company incremental scale /iŋkriment(ə)l
incremental scale
쑗 J. Doe Incorporated skeil/ noun a salary scale with regular

incorporation /inkɔpəreiʃ(ə)n/ noun annual salary increases
incorporation
| |
an act of incorporating a company incur /ink/ verb to make yourself liable

incur
increase noun /inkris/ 1. an act of to something

increase
becoming larger 쑗 There have been several ‘…the company blames fiercely competi-
increases in tax or tax increases in the last tive market conditions in Europe for a
few years. 쑗 There is an automatic 5% £14m operating loss last year, incurred
increase in price or price increase on Janu- despite a record turnover’ [Financial
ary 1st. 쑗 Profits showed a 10% increase or Times]
an increase of 10% on last year. 2. a higher indebted /indetid/ adjective owing
indebted
salary 쑗 increase in pay or pay increase 쑗 money to someone 쑗 to be indebted to a

The government hopes to hold salary property company
increases to 3%. 왍 she had two increases indemnification /indemnifikeiʃən/
indemnification
| |
last year her salary went up twice 쐽 verb /in |

noun payment for damage
kris/ 1. to grow bigger or higher 쑗 Profits
indemnify /indemnifai/ verb to pay for
indemnify
have increased faster than the increase in |
the rate of inflation. 쑗 Exports to Africa damage 쑗 to indemnify someone for a loss
indemnity /indemniti/ noun 1. a guaran-
indemnity
have increased by more than 25%. 쑗 The |
price of oil has increased twice in the past tee of payment after a loss 쑗 She had to pay
week. 왍 to increase in size or value to an indemnity of £100. 2. compensation paid
become larger or more valuable 2. to make after a loss
something bigger or higher 왍 the company indent /indent/ noun an order placed by
indent
increased her salary to £50,000 the com- an importer for goods from overseas 쑗 They
pany gave her a rise in salary to £50,000 put in an indent for a new stock of soap.
indenture /indentʃə/ noun US a formal
indenture
‘…turnover has the potential to be |
increased to over 1 million dollars with agreement showing the terms of a bond issue
energetic management and very little cap- independent company /indipendənt
independent company
ital’ [Australian Financial Review] kmp(ə)ni/ noun a company which is not

‘…competition is steadily increasing and controlled by another company
could affect profit margins as the company independent financial
independent financial adviser
adviser
tries to retain its market share’ [Citizen /indipendənt fainnʃ(ə)l ədvaizə/ | |
(Ottawa)] noun a person who gives impartial advice on

increment /iŋkrimənt/ noun a regular
increment
financial matters, who is not connected with

automatic increase in salary 쑗 an annual any financial institution. Abbreviation IFA
increment 왍 salary which rises in annual independent variable /indipendənt
independent variable
increments of £1000 each year the salary is veəriəb(ə)l/ noun a factor whose value,
increased by £1000 when it changes, influences one or more
incremental /iŋkriment(ə)l/ adjective
incremental
|
other variables called ‘dependent variables’
rising automatically in stages 쑗 In this model personal income is the inde-
incremental analysis /iŋkriment(ə)l ə
incremental analysis
| pendent variable and expenditure the

nləsis/ noun analysis of the changes in dependent variable.

index 120
index /indeks/ noun 1. a list of items clas- indirect costs /indairekt kɒsts/, indi-
index indirect costs
sified into groups or put in alphabetical rect expenses /indairekt ikspensiz/ |
order 2. a regular statistical report which plural noun costs which are not directly
shows rises and falls in prices, values, or lev- related to the making of a product, e.g.
els 3. a figure based on the current market cleaning, rent or administration
price of shares on a stock exchange (NOTE: indirect labour costs /indairekt
indirect labour costs
[all noun senses] The plural is indexes or leibə kɒsts/ plural noun the cost of paying
indices.) 쐽 verb to link a payment to an employees not directly involved in making a
index 쑗 salaries indexed to the cost of living product, such as cleaners or administrative
‘…the index of industrial production sank staff. Such costs cannot be allocated to a cost
0.2 per cent for the latest month after rising centre.
0.3 per cent in March’ [Financial Times] indirect liability /indairekt laiəbiliti/
indirect liability
‘…an analysis of the consumer price index noun an obligation that may arise in future,
for the first half of the year shows that the as, e.g., if a lawsuit is brought against the
rate of inflation went down by 12.9 per company
cent’ [Business Times (Lagos)] indirect material cost /indairekt mə
indirect material cost
indexation /indekseiʃ(ə)n/ noun the

indexation
|
tiəriəl kɒst/, indirect materials cost
linking of something to an index /indairekt mətiəriəlz kɒst/ noun the
|
indexed portfolio /indekst pɔt cost of materials which cannot be allocated

indexed portfolio
fəυliəυ/ noun a portfolio of shares in all the to the production of a particular product
companies which form the basis of a stock indirect tax /indairekt tks/ noun a tax
indirect tax
exchange index such as VAT paid to someone who then pays

index fund /indeks fnd/ noun an it to the government
index fund
investment fund consisting of shares in all indirect taxation /indairekt tk

indirect taxation
the companies which are used to calculate a seiʃ(ə)n/ noun taxes which are not paid
Stock Exchange index direct to the government, e.g. sales tax 쑗
index-linked /indeks liŋkt/ adjective
index-linked
The government raises more money by indi-

rising automatically by the percentage rect taxation than by direct.
increase in the cost of living 쑗 index-linked Individual Retirement Account
Individual Retirement Account
government bonds 쑗 Inflation did not affect /individ uəl ritaiəmənt əkaυnt/ noun | |
her as she has an index-linked pension. US a tax-deferred pension scheme, that

‘…two-year index-linked savings certifi- allows individuals to make contributions to a
cates now pay 3 per cent a year tax free, in personal retirement fund. Abbreviation IRA
addition to index-linking’ [Financial Individual Savings
Individual Savings Account
Account
Times] /individ uəl seiviŋz əkaυnt/ noun a |
index number /indeks nmbə/ noun a

index number
British scheme by which individuals can

number showing the percentage rise of invest by putting a limited amount of money
something over a period each year in a tax-free account. Abbrevia-
index tracker /indeks trkə/ noun an
index tracker
tion ISA
Individual Voluntary Arrangement
Individual Voluntary Arrangement
investor or fund manager who tracks an

index /individ uəl vɒlənt(ə)ri əreind mənt/ |
index-tracking /indeks trkiŋ/ adjec-

index-tracking
noun a legally binding arrangement between
tive adjusted to follow changes in a particu- a debtor and creditors by which the debtor
lar index, e.g. the Bank of England’s base offers the creditors the best deal he or she
rate can afford by realising his assets, and so the
indicator /indikeitə/ noun a factor of a
indicator
expense of bankruptcy proceedings is
situation that gives an indication of a general avoided. Abbreviation IVA
inducement /indjusmənt/ noun some-
inducement
trend |
‘…it reduces this month’s growth in the thing which helps to persuade someone to
key M3 indicator from about 19% to 12%’ do something 쑗 They offered her a company
[Sunday Times] car as an inducement to stay.
industrial arbitration tribunal /in
industrial arbitration tribunal
‘…we may expect the US leading eco- |
nomic indicators for April to show faster dstriəl ɑbitreiʃ(ə)n traibjun(ə)l/

| |
economic growth’ [Australian Financial noun a court which decides in industrial dis-
Review] putes
industrial tribunal /indstriəl trai
industrial tribunal
‘…other indicators, such as high real inter- | |
est rates, suggest that monetary conditions bjun(ə)l/ noun a court which can decide in
are extremely tight’ [Economist] disputes about employment

121 input cost

‘ACAS has a legal obligation to try and for 40% tax on the excess amount. Abbrevi-
solve industrial grievances before they ation IHT. Also called death duty
reach industrial tribunals’ [Personnel in-house /in haυs/ adverb, adjective
in-house
Today] done by someone employed by a company

inflation /infleiʃ(ə)n/ noun a greater
inflation
|
on their premises, not by an outside contrac-
increase in the supply of money or credit tor 쑗 the in-house staff 쑗 We do all our data
than in the production of goods and services, processing in-house.
resulting in higher prices and a fall in the initial capital /iniʃ(ə)l kpit(ə)l/ noun
initial capital
purchasing power of money 쑗 to take meas-

|
capital which is used to start a business

ures to reduce inflation 쑗 High interest rates
tend to increase inflation. 왍 we have 3% initial public offering /iniʃ(ə)l pblik
initial public offering
inflation or inflation is running at 3% ɒf(ə)riŋ/ noun US the process of offering

prices are 3% higher than at the same time shares in a corporation for sale to the public
last year for the first time. Abbreviation IPO (NOTE:
inflation accounting /infleiʃ(ə)n ə
inflation accounting
| |
The UK term is offer for sale.)
initial sales /iniʃ(ə)l seilz/ plural noun
initial sales
kaυntiŋ/ noun an accounting system in |
which inflation is taken into account when the first sales of a new product
calculating the value of assets and the prep- initial yield /iniʃ(ə)l jild/ noun the esti-
initial yield
aration of accounts mated yield of an investment fund at the

inflationary /infleiʃ(ə)n(ə)ri/ adjective
inflationary
| time when it is launched

tending to increase inflation 쑗 inflationary initiate /iniʃieit/ verb to start 쑗 to initiate
initiate
trends in the economy discussions

‘…inflationary expectations fell some- injection /ind ekʃən/ noun 왍 a capital
injection
what this month, but remained a long way injection of £100,000 or an injection of
above the actual inflation rate, according £100,000 capital putting £100,000 into an
to figures released yesterday. The annual existing business
rate of inflation measured by the consumer
injunction /ind ŋkʃ(ə)n/ noun a court
injunction
price index has been below 2 per cent for |
over 18 months’ [Australian Financial order telling someone not to do something 쑗

Review] He got an injunction preventing the com-
inflation-proof /infleiʃ(ə)n pruf/
inflation-proof
|
pany from selling his car.
inland /inlənd/ adjective inside a country
inland
adjective referring to a pension, etc. which is

index-linked, so that its value is preserved in inland freight charges /inlənd freit
inland freight charges
times of inflation tʃɑd iz/ plural noun charges for carrying

inflow /infləυ/ noun the act of coming in goods from one part of the country to
inflow
or being brought in another

inland postage /inlənd pəυstid /
inland postage
‘…the dollar is strong because of capital

inflows rather than weak because of the noun postage for a letter to another part of
trade deficit’ [Duns Business Month] the same country
influx /inflks/ noun an inflow, especially
influx
Inland Revenue /inlənd revənju/

Inland Revenue
one where people or things come in in large noun a former UK government department
quantities 쑗 an influx of foreign currency which dealt with taxes such as income tax,
into the country 쑗 an influx of cheap labour corporation tax, capital gains tax and inher-
into the cities itance tax, but not duties such as Value
‘…the retail sector will also benefit from Added Tax. It merged with the Customs and
the expected influx of tourists’ [Australian Excise to form HM Revenue & Customs in
Financial Review] 2005. 쑗 He received a letter from the Inland
inherit /inherit/ verb to get something
inherit
|
Revenue. (NOTE: The US term is Internal
from a person who has died 쑗 When her Revenue Service or IRS.)
father died she inherited the shop. 쑗 He Inland Revenue Commissioner
Inland Revenue Commissioner
inherited £10,000 from his grandfather. /inlnd revənju kəmiʃ(ə)nə/ noun a |
inheritance /inherit(ə)ns/ noun prop-

inheritance
| person appointed officially to supervise the

erty which is received from a dead person collection of taxes, including income tax,
inheritance tax /inherit(ə)ns tks/
inheritance tax
|
capital gains tax and corporation tax, but not
noun tax payable on wealth or property VAT. Abbreviation IRC
input cost /inpυt kɒst/ noun the cost of
input cost
worth above a certain amount and inherited

after the death of someone. The current overhead items such as labour and material
threshold is £285,000, and the estate is liable used in the production of goods or services

inputs 122
inputs /inpυts/ plural noun goods or serv- government official who inspects weighing
inputs
ices bought by a company and which may be machines and goods sold in shops to see if
liable to VAT the quantities and weights are correct
input tax /inpυt tks/ noun VAT which
input tax instalment
instalment /instɔlmənt/ noun a part of |
is paid by a company on goods or services a payment which is paid regularly until the
bought total amount is paid 쑗 The first instalment is
insider /insaidə/ noun a person who
insider
| payable on signature of the agreement.

works in an organisation and therefore (NOTE: The US spelling is installment.) 왍 to
knows its secrets pay £25 down and monthly instalments of
insider trading /insaidə treidiŋ/,
insider trading
|
£20 to pay a first payment of £25 and the rest
insider buying /insaidə baiiŋ/, insider in payments of £20 each month
dealing /insaidə diliŋ/ noun the illegal
|
institute
institute /institjut/ noun a society or

buying or selling of shares by staff of a com- organisation which represents a particular
pany or other persons who have secret infor- profession or activity 쑗 the Institute of
mation about the company’s plans Chartered Accountants
insolvency /insɒlvənsi/ noun the fact of
insolvency
Institute of Chartered Accountants in England and Wales
|
Institute of Chartered Accountants
not being able to pay debts. Opposite sol- in England and Wales /institjut əv
vency (NOTE: A company is insolvent when tʃɑtəd əkaυntənts in iŋlənd ən |
its liabilities are higher than its assets: if this weilz/ noun the largest professional
happens it must cease trading. Note that accountancy body in Europe, providing
insolvency is a general term, but is usually qualification by examinations, ensuring high
applied to companies; individuals or part- standards of education and training, and
ners are usually described as bankrupt supervising professional conduct. Abbrevia-
once they have been declared so by a tion ICAEW
court.) Institute of Chartered Accountants in Ireland
‘…hundreds of thrifts found themselves

on the brink of insolvency after a deregu- in Ireland /institjut əv tʃɑtəd ə |
lation programme prompted them to enter kaυntənts in aiələnd/ noun the oldest
dangerous financial waters’ [Times] and largest professional body for account-
ants in Ireland, founded in 1888 with the
insolvency practitioner /insɒlvənsi
insolvency practitioner
|
aims of in promoting best practice in char-
prktiʃ(ə)nə/ noun a person who advises
|
tered accountancy and maintaining high
insolvent companies standards of professionalism among its
insolvent /insɒlvənt/ adjective not able
insolvent
|
members. Abbreviation ICAI
to pay debts 쑗 The company was declared Institute of Chartered Accountants in Scotland
insolvent. (NOTE: see note at insolvency) Institute of Chartered Accountants

inspect /inspekt/ verb to examine in
inspect in Scotland /institjut əv tʃɑtəd ə |
kaυntənts in skɒtlənd/ noun the world’s

detail 쑗 to inspect a machine or an installa- oldest professional body for accountants,
tion 쑗 Officials from the DTI have come to based in Edinburgh. Abbreviation ICAS
inspect the accounts. Institute of Chartered Accountants of New Zealand
inspection /inspekʃ(ə)n/ noun the close

inspection
|
examination of something 쑗 to make an of New Zealand /institjut əv tʃɑtəd
inspection or to carry out an inspection of a əkaυntənts əv nju zilənd/ noun the
|
machine or an installation only professional accounting body in New

inspector /inspektə/ noun an official
inspector Zealand, representing over 26,000 members
in that country and abroad. Abbreviation
|
who inspects 쑗 The inspectors will soon be

ICANZ
round to make sure the building is safe. Institute of Financial Accountants
inspectorate /inspekt(ə)rət/ noun an

inspectorate
|
Institute of Financial Accountants
authority to which inspectors are responsi- /institjut əv fainnʃ(ə)l əkaυntənts/ | |
ble noun a professional body, established in

inspector of taxes /inspektər əv
inspector of taxes
|
1916, which aims to set technical and ethical
tksiz/ noun in the United Kingdom, an standards in UK financial accountancy.
official who reports to HM Revenue & Cus- Abbreviation IFA
institution
toms and is responsible for issuing tax institution /institjuʃ(ə)n/ noun an |
returns and assessments, agreeing tax liabil- organisation or society set up for a particular
ities and conducting appeals on matters of purpose. 쒁 financial institution
tax institutional
institutional /institjuʃ(ə)n(ə)l/ adjec- |
inspector of weights and measures tive relating to an institution, especially a

inspector of weights and measures
/inspektər əv weits ən me əz/ noun a

| financial institution

123 intercompany profit

‘…during the 1970s commercial property by a person or a company to an insurance
was regarded by big institutional investors company
as an alternative to equities’ [Investors insurance premium tax /inʃυərəns
insurance premium tax
Chronicle] primiəm tks/ noun a tax on household,

institutional investor
institutional investor
motor vehicle, travel and other general

/institjuʃ(ə)n(ə)l investə/ noun 1. a|
insurance
financial institution which invests money in insurance rates /inʃυərəns reits/ plu-
insurance rates
securities 2. an organisation (such as a pen- ral noun the amount of premium which has
sion fund or insurance company) with large to be paid per £1000 of insurance
sums of money to invest
insure /inʃυə/ verb to have a contract with
insure
instruction /instrkʃən/ noun an order

instruction |
which tells what should be done or how a company whereby, if regular small pay-
something is to be used 쑗 She gave instruc- ments are made, the company will pay com-
tions to his stockbroker to sell the shares pensation for loss, damage, injury or death 쑗
immediately. to insure a house against fire 쑗 to insure
someone’s life 쑗 to insure against loss of
instrument /instrυmənt/ noun 1. a tool
instrument
earnings 쑗 She was insured for £100,000.

or piece of equipment 쑗 The technician
insurer /inʃυərə/ noun a company which
insurer
brought instruments to measure the output |
of electricity. 2. a legal document insures (NOTE: For life insurance, UK Eng-

lish prefers to use assurer.)
insufficient funds /insəfiʃ(ə)nt
insufficient funds
intangible /intnd ib(ə)l/ adjective not

intangible
fndz/ plural noun US same as non-suffi- |
cient funds possible to touch

intangible assets /intnd ib(ə)l
intangible assets
insurable /inʃυərəb(ə)l/ adjective possi-

insurable
|
|
ble to insure sets/, intangible fixed assets /in |
tnd ib(ə)l fikst sets/, intangibles /in

insurable interest /inʃυərəb(ə)l
insurable interest |
tnd ib(ə)lz/ plural noun assets that have

intrəst/ noun the value of the thing insured a value but which cannot be seen, e.g. good-
which is attributed to the person who is tak- will or a trademark
ing out the insurance
intangible value
intangible value
insurance /inʃυərəns/ noun an agree-

insurance /intnd ib(ə)l |
vlju/ noun a value of an organisation

|
ment that in return for regular payments

called ‘premiums’, a company will pay equal to its total value minus the value of its
compensation for loss, damage, injury or tangible assets
integrate /intireit/ verb to link things
integrate
death 쑗 to take out insurance 쑗 Repairs will

be paid for by the insurance. together to form one whole group
integrated accounts /intireitid ə
integrated accounts
insurance adjuster /inʃυərəns ə

insurance adjuster
|
| |
d stə/ noun US same as loss adjuster kaυnts/ plural noun accounting records
insurance agent /inʃυərəns eid ənt/,
insurance agent
|
that show both financial and cost accounts
integration /intireiʃ(ə)n/ noun the act
integration
insurance broker /inʃυərəns brəυkə/ | |
noun a person who arranges insurance for of bringing several businesses together
clients under a central control
inter-bank /intə bŋk/ adjective
inter-bank
insurance claim /inʃυərəns kleim/

insurance claim
noun a request to an insurance company to between banks

pay compensation for damage or loss inter-bank loan /intə bŋk ləυn/ noun
inter-bank loan
insurance company /inʃυərəns

insurance company
| a loan from one bank to another

kmp(ə)ni/ noun a company whose busi- intercompany
intercompany account
account /intə |
ness is insurance kmp(ə)ni əkaυnt/ noun an account that

|
insurance contract /inʃυərəns

insurance contract
| records transactions between companies

kɒntrkt/ noun an agreement by an insur- that are affiliated to each other
ance company to insure inter-company
inter-company dealings
dealings /intə
insurance cover /inʃυərəns kvə/
insurance cover
|
kmp(ə)ni diliŋz/, inter-company
noun protection guaranteed by an insurance transactions /intə kmp(ə)ni trn |
policy zkʃ(ə)nz/ plural noun dealings or transac-

insurance policy /inʃυərəns pɒlisi/ tions between two companies in the same
insurance policy
noun a document which shows the condi- group

tions of an insurance contract intercompany profit /intəkmp(ə)ni
intercompany profit
insurance premium /inʃυərəns prɒfit/ noun the profit on services provided

insurance premium
primiəm/ noun an annual payment made to a related company

interest 124
interest /intrəst/ noun 1. payment made interim /intərim/ adjective made, meas-
interest interim
by a borrower for the use of money, calcu- ured or happening in the middle of a period,
lated as a percentage of the capital borrowed such as the financial year, and before the
왍 high interest, low interest interest at a final result for the period is available 쐽 noun
high or low percentage 2. money paid as a statement of interim profits or dividends
income on investments or loans 쑗 to receive ‘…the company plans to keep its annual
interest at 5% 쑗 deposit which yields or dividend unchanged at 7.5 per share,
gives or produces or bears 5% interest 쑗 which includes a 3.75 interim payout’
account which earns interest at 10% or [Financial Times]
which earns 10% interest 쑗 The bank pays interim audit /intərim ɔdit/ noun an
interim audit
10% interest on deposits. 쑗 The loan pays audit carried out for a period within a full
5% interest. 3. a part of the ownership of accounting year, often for a half year
something, e.g. if you invest money in a
interim dividend /intərim dividend/
interim dividend
company you acquire a financial share or

interest in it noun a dividend paid at the end of a half-
year
interest-bearing deposits /intrəst
interest-bearing deposits
interim financial statement /intərim

interim financial statement
beəriŋ dipɒzits/ plural noun a deposit of

|
money with a financial institution that pays fainnʃəl steitmənt/ noun a financial
|
interest on the deposit statement that covers a period other than a

full financial year. Although UK companies
interest charges /intrəst tʃɑd iz/
interest charges
are not legally obliged to publish interim

plural noun money paid as interest on a loan
financial statements, those listed on the Lon-
interest coupon /intrəst kupɒn/ noun
interest coupon
don Stock Exchange are obliged to publish a

a slip of paper attached to a government half-yearly report of their activities and a
bond certificate which can be cashed to pro- profit and loss account which may either be
vide the annual interest sent to shareholders or published in a
interest cover /intrəst kvə/ noun the
interest cover
national newspaper. In the United States, the

ability to pay interest payments on a loan practice is to issue quarterly financial state-
interested party /intrestid pɑti/ noun
interested party
ment.
a person or company with a financial interest interim payment /intərim peimənt/
interim payment
in a company noun a payment of part of a dividend

interest expense /intrəst ikspens/
interest expense
interim receiver /intərim risivə/ noun

interim receiver
|
|
noun the cost of the interest payments on a receiver appointed to deal with a person’s
borrowed money affairs until a bankruptcy order is made
interest-free credit /intrəst fri
interest-free credit
intermediate debt /intəmidiət det/

intermediate debt
kredit/ noun a credit or loan where no noun a form of debt which has to be repaid
interest is paid by the borrower 쑗 The com- between four and ten years’ time
pany gives its staff interest-free loans.
internal /intn(ə)l/ adjective 1. inside a
internal
interest rate /intrəst reit/ noun a figure

interest rate |
company 2. inside a country or a region

which shows the percentage of the capital
internal audit /intn(ə)l ɔdit/ noun an
internal audit
sum borrowed or deposited which is to be |
paid as interest. Also called rate of interest audit carried out by a department inside the
interest rate margin /intrəst reit
interest rate margin company
internal auditor /intn(ə)l ɔditə/
internal auditor
mɑd in/ noun the difference between the |
interest a bank pays on deposits and the noun a member of staff who audits a com-
interest it charges on loans pany’s accounts
internal control /intn(ə)l kəntrəυl/
internal control
interest rate swap /intrəst reit swɒp/

interest rate swap
| |
noun an agreement between two companies noun a system set up by the management of
to exchange borrowings. A company with a company to monitor and control the com-
fixed-interest borrowings might swap them pany’s activities
for variable interest borrowings of another internal growth /intn(ə)l rəυθ/
internal growth
company. Also called plain vanilla swap noun the development of a company by
interest sensitive /intrəst sensitiv/
interest sensitive
growing its existing business with its own
adjective used to describe assets, generally finances, as opposed to acquiring other busi-
purchased with credit, that are in demand nesses. Also called organic growth
when interest rates fall but considered less internal rate of return /intn(ə)l reit
internal rate of return
attractive when interest rates rise əv ritn/ noun an average annual yield of
|
interest yield /intrəst jild/ noun a yield an investment, where the interest earned
interest yield
on a fixed-interest investment over a period of time is the same as the orig-

125 intervention
inal cost of the investment. Abbreviation bal organisation for the accountancy profes-
IRR sion that seeks to protect the public interest
internal reporting /intn(ə)l ripɔtiŋ/
internal reporting
| |
by encouraging high quality practices by the
noun financial information gathered and world’s accountants
communicated within a company International Financial Reporting
International Financial Reporting Standards
Internal Revenue Service /intn(ə)l

Internal Revenue Service
|
Standards /intənʃ(ə)nəl fainnʃ(ə)l |
revənju svis/ noun in the United ripɔtiŋ stndədz/ plural noun an inter-
|
States, the branch of the federal government nationally agreed set of high-quality, under-
charged with collecting the majority of fed- standable and enforceable global standards
eral taxes. Abbreviation IRS for financial reporting
International Monetary Fund
International Monetary Fund
internal trade /intn(ə)l treid/ noun

internal trade
trade between various parts of a country. /intənʃ(ə)nəl mnit(ə)ri fnd/ noun a

Opposite external trade type of bank which is part of the United
International Accounting Standards
Nations and helps member states in financial
/intənʃ(ə)nəl əkaυntiŋ stndədz/ |
difficulties, gives financial advice to mem-
plural noun standards of accounting proce- bers and encourages world trade. Abbrevia-
dure set and monitored, since 2001, by the tion IMF
international money markets
international money markets
International Accounting Standards Board

International Accounting Standards Board
/intənʃ(ə)nəl mni mɑkits/ plural
Board /intənʃ(ə)nəl əkaυntiŋ |
noun markets such as the Euromarket, the
stndədz bɔd/ noun a London-based international market for lending or borrow-
independent organisation established to set ing in Eurocurrencies
international standards fro accounting pro- international reserves /intənʃ(ə)nəl
international reserves
cedures. Abbreviation IASB rizvz/ plural noun same as foreign cur-

|
International Accounting Standards rency reserves

International Accounting Standards Committee
Committee /intənʃ(ə)nəl əkaυntiŋ |

international trade /intənʃ(ə)nəl
international trade
stndədz kəmiti/ noun formerly, an |

treid/ noun trade between different coun-
organisation based in London that worked tries
towards achieving global agreement on Internet /intənet/ noun an international
Internet
accounting standards. It was made part of network linking thousands of computers

the International Accounting Standards using telephone, cable and satellite links 쑗
Board in 2001. Abbreviation IASC He searched the Internet for information on
International Bank for Reconstruc-
International Bank for Reconstruction and Development
cheap tickets to the US 쑗 Much of our busi-

tion and Development /intənʃ(ə)nəl ness is done on the Internet. 쑗 Internet sales
bŋk fə rikənstrkʃ(ə)n ən di |
form an important part of our turnover.
veləpmənt/ noun the official name of the ‘…they predict a tenfold increase in sales
World Bank. Abbreviation IBRD via internet or TV between 1999 and 2004’
International Centre for Settlement
International Centre for Settlement of Investment Disputes
[Investors Chronicle]
of Investment Disputes ‘…in two significant decisions, the Securi-
/intənʃ(ə)nəl sentə fə set(ə)lmənt əv ties and Exchange Board of India today
investmənt dispjuts/ noun one of the
| |
allowed trading of shares through the
five institutions that comprises the World Internet and set a deadline for companies
Bank Group. It was established in 1966 to to conform to norms for good corporate
undertake the role previously undertaken in governance’ [The Hindu]
a personal capacity by the President of the Internet banking /intənet bŋkiŋ/
Internet banking
World Bank in assisting in mediation or con- noun the operation of a bank account over
ciliation of investment disputes between the Internet
governments and private foreign investors.
interpolation /intpəleiʃ(ə)n/ noun a
interpolation
The overriding consideration in its estab- | |
lishment was that a specialist institution method of estimating a value between two
could help to promote increased flows of established values
intervene /intəvin/ verb to try to make
intervene
international investment. Although ICSID |
has close links to the World Bank, it is an a change in a situation in which you have not
autonomous organisation. Abbreviation been involved before
ICSID intervention /intəvenʃən/ noun the act
intervention
International Federation of
International Federation of Accountants
of becoming involved in a situation in order

Accountants /intənʃ(ə)nəl to change it 쑗 the central bank’s interven-
fedəreiʃ(ə)n əv əkaυntənts/ noun a glo- | tion in the banking crisis

intervention mechanism 126

intervention mechanism invest /invest/ verb 1. to put money into
intervention mechanism invest
/intə | |
venʃən mekəniz(ə)m/ noun a method shares, bonds, a building society, etc., hop-
used by central banks in maintaining ing that it will produce interest and increase
exchange rate parities, e.g. buying or selling in value 쑗 He invested all his money in unit
foreign currency trusts. 쑗 She was advised to invest in real
inter vivos /intə vivəυs/ phrase a Latin
inter vivos
estate or in government bonds. 2. to spend
phrase, ‘between living people’ money on something which you believe will
be useful 쑗 to invest money in new machin-
inter vivos trust /intə vivəυs trst/
inter vivos trust
ery 쑗 to invest capital in a new factory

noun a trust set up by one person for another
living person ‘…we have substantial venture capital to
invest in good projects’ [Times]
intestacy /intestəsi/ noun the state of
intestacy
investment /investmənt/ noun 1. the

| investment
having died without having made a will |
placing of money so that it will produce

intestate /intestət/ adjective 왍 to die
intestate
|
interest and increase in value 쑗 They called
intestate to die without having made a will for more government investment in new
intrinsic value /intrinsik vlju/ noun industries. 쑗 She was advised to make
intrinsic value
the material value of something 쑗 These investments in oil companies. 2. a share,

objects have sentimental value, but no bond or piece of property bought in the hope
intrinsic value at all. 쑗 The intrinsic value of that it will produce more money than was
jewellery makes it a good investment. used to buy it
introduction /intrədkʃ(ə)n/ noun the
introduction
| ‘…investment trusts, like unit trusts, con-

act of bringing an established company to sist of portfolios of shares and therefore
the Stock Exchange (i.e., getting permission provide a spread of investments’ [Inves-
for the shares to be traded on the Stock tors Chronicle]
Exchange, used when a company is formed ‘…investment companies took the view
by a demerger from an existing larger com- that prices had reached rock bottom and
pany, and no new shares are being offered could only go up’ [Lloyd’s List]
for sale) investment analyst /investmənt
investment analyst
invalid /invlid/ adjective not valid or not

invalid
|
nəlist/ noun a person working for a
legal 쑗 This permit is invalid. 쑗 The claim stockbroking firm, who analyses the per-
has been declared invalid. formance of companies in a sector of the
market, or the performance of a market sec-
invalidate /invlideit/ verb to make
invalidate
tor as a whole, or economic trends in general

something invalid 쑗 Because the company
investment appraisal /investmənt ə
investment appraisal
has been taken over, the contract has been | |
invalidated. preiz(ə)l/ noun the analysis of the future

profitability of capital purchases as an aid to
invalidation /invlideiʃən/ noun the
invalidation
| |
good management
act of making invalid
investment bank /investmənt bŋk/
investment bank
invalidity /invəliditi/ noun the fact of

invalidity
|
noun US a bank which deals with the under-
being invalid 쑗 the invalidity of the contract writing of new issues, and advises corpora-
inventory /invənt(ə)ri/ noun 1. espe-
inventory
tions on their financial affairs (NOTE: The

cially US all the stock or goods in a ware- UK term is issuing house.)
house or shop 쑗 to carry a high inventory 쑗 investment company /investmənt
investment company
to aim to reduce inventory Also called stock kmp(ə)ni/ noun company whose shares
2. a list of the contents of a building such as can be bought on the Stock Exchange, and
a house for sale or an office for rent 쑗 to whose business is to make money by buying
draw up an inventory of fixtures and fittings and selling stocks and shares
쐽 verb to make a list of stock or contents
investment grant /investmənt rɑnt/
investment grant
inventory control /invənt(ə)ri kən

inventory control
|
noun a government grant to a company to
trəυl/ noun US same as stock control help it to invest in new machinery
inventory financing /invənt(ə)ri
inventory financing
investment income /investmənt

investment income
fainnsiŋ/ noun especially US the use of inkm/ noun income from investments,
money from working capital to purchase e.g. interest and dividends. Compare
stock for resale earned income
inventory turnover Investment Management Associa-
inventory turnover
/invənt(ə)ri
Investment Management Association
tnəυvə/ noun especially US the total tion /investmənt mnid mənt ə

| |
value of stock sold during a year, divided by səυsieiʃ(ə)n/ noun the trade body for the
the value of the goods remaining in stock UK investment industry, formed in February

127 irrevocable
2002 following the merger of the Associa- to pay an invoice 쑗 They sent in their invoice
tion of Unit Trusts and Investment Funds six weeks late. 쐽 verb to send an invoice to
(AUTIF) and the Fund Manager’s Associa- someone 쑗 to invoice a customer
tion. Abbreviation IMA invoice discounting
invoice discounting
/invɔis
investment property /investmənt
investment property
| diskaυntiŋ/ noun a method of obtaining

prɒpəti/ noun property which is held for early payment of invoices by selling them at
letting a discount to a company which will receive
investment revaluation reserve /in
investment revaluation reserve
|
payment of the invoices when they are paid.
vestmənt rivljυeiʃən rizv/ noun
| |
The debtor is not informed of this arrange-
the capital reserve where changes in the ment, as opposed to factoring, where the
value of a business’s investment properties debtor is informed.
are disclosed when they are revalued invoice price /invɔis prais/ noun the
invoice price
investment trust /investmənt trst/

investment trust
|
price as given on an invoice, including any
noun a company whose shares can be discount and VAT
bought on the Stock Exchange and whose invoice register /invɔis red istə/
invoice register
business is to make money by buying and noun a list of purchase invoices recording
selling stocks and shares the date of receipt of the invoice, the sup-
investment turnover /investmənt
investment turnover
| plier, the invoice value and the person to

tnəυvə/ noun income earned on capital whom the invoice has been passed to ensure
invested in a business that all invoices are processed by the
investor /investə/ noun a person who
investor
|
accounting system
invoicing /invɔisiŋ/ noun the work of
invoicing
invests money
investor protection /investə prə
investor protection
| |
sending invoices 쑗 All our invoicing is done
tekʃ(ə)n/ noun legislation to protect small by computer.
invoicing department /invɔisiŋ di
invoicing department
investors from unscrupulous investment |
brokers and advisers pɑtmənt/ noun the department in a com-

Investors in Industry /investəz in
Investors in Industry
|
pany which deals with preparing and send-
indəstri/ plural noun a finance group partly ing invoices
owned by the big British High Street banks, involuntary bankruptcy /in
involuntary bankruptcy
providing finance especially to smaller com- vɒlənt(ə)ri bŋkrptsi/ noun US an

panies. Abbreviation 3i application by creditors to have a person or
invisible assets /invizib(ə)l sets/
invisible assets
|
corporation made bankrupt (NOTE: The UK
plural noun US same as intangible assets term is compulsory winding up.)
inward /inwəd/ adjective towards the
inward
invisible earnings /invizib(ə)l niŋz/

invisible earnings
plural noun foreign currency earned by a home country

country by providing services, receiving inward bill /inwəd bil/ noun a bill of lad-
inward bill
interests or dividends, but not by selling ing for goods arriving in a country
goods IOU /ai əυ ju/ noun ‘I owe you’, a signed
IOU
invisible exports /invizib(ə)l

invisible exports
|
document promising that you will pay back
ekspɔts/ plural noun services, e.g. bank- money borrowed 쑗 to pay a pile of IOUs 쑗
ing, insurance and tourism, that are provided I have a pile of IOUs which need paying.
to customers overseas and paid for in foreign IPO abbreviation initial public offering
IPO
currency. Opposite visible exports

IRA /airə/ abbreviation US Individual
IRA
invisible imports /invizib(ə)l

invisible imports
|
Retirement Account
impɔts/ plural noun services that overseas
IRC abbreviation Inland Revenue Commis-
IRC
companies provide to domestic customers

who pay for them in local currency. Oppo- sioner
IRR abbreviation internal rate of return
IRR
site visible imports

irrecoverable debt /irikv(ə)rəb(ə)l
irrecoverable debt
invisibles /invizib(ə)lz/ plural noun

invisibles
| |
invisible imports and exports det/ noun a debt which will never be paid
irredeemable bond /iridiməb(ə)l
irredeemable bond
invisible trade /invizib(ə)l treid/ noun

invisible trade
| |
trade involving invisible imports and bɒnd/ noun a government bond which has
exports. Opposite visible trade no date of maturity and which therefore pro-
invoice /invɔis/ noun a note asking for
invoice
vides interest but can never be redeemed at
payment for goods or services supplied 쑗 full value
your invoice dated November 10th 쑗 to irrevocable /irevəkəb(ə)l/ adjective
irrevocable
make out an invoice for £250 쑗 to settle or unchangeable

irrevocable letter of credit 128

issued capital /iʃud kpit(ə)l/ noun
irrevocable letter of credit issued capital
irrevocable letter of credit /i |
revəkəb(ə)l letər əv kredit/ noun a let- an amount of capital which is given out as
ter of credit which cannot be cancelled or shares to shareholders
changed, except if agreed between the two issued price /iʃud prais/, issue price
issued price
parties involved /iʃu prais/ noun the price of shares in a

IRS
IRS abbreviation US Internal Revenue new company when they are offered for sale
Service for the first time
issuer /iʃuə/ noun a financial institution
issuer
IS
IS abbreviation income support that issues credit and debit cards and main-
ISA
ISA /aisə/ abbreviation Individual Savings tains the systems for billing and payment
Account issuing /iʃuiŋ/ adjective organising an
issuing
issue
issue /iʃu/ noun an act of offering new issue of shares

itemise /aitəmaiz/, itemize verb to make
itemise
shares for sale

‘…the company said that its recent issue of a detailed list of things 쑗 Itemising the sales
10.5 per cent convertible preference shares figures will take about two days.
IVA abbreviation Individual Voluntary
IVA
at A$8.50 a share has been oversub-

scribed’ [Financial Times] Arrangement

J
J curve /d ei kv/ noun a line on a jointly /d ɔintli/ adverb together with one
J curve jointly
graph shaped like a letter ‘J’, with an initial or more other people 쑗 to own a property
short fall, followed by a longer rise, used to jointly 쑗 to manage a company jointly 쑗
describe the effect of a falling exchange rate They are jointly liable for damages.
on a country’s balance of trade joint management
joint management
/d ɔint
JIT abbreviation just-in-time
JIT
mnid mənt/ noun management done by

job card /d ɒb kɑd/ noun a record card two or more people
job card
relating to a job and giving details of the joint ownership /d ɔint əυnəʃip/
joint ownership
time taken to do a piece of work and the noun the owning of a property by several
materials used. This is used to allocate direct owners
labour and materials costs. joint products /d ɔint prɒdkts/ plu-
joint products
job costing /d ɒb kɒstiŋ/ noun the

job costing
ral noun two or more products that are pro-

process of calculating the cost of a single job duced as a unit but are sold separately and
or batch of work. Also called specific order each have a saleable value high enough for
costing them to be regarded as a main product
job order /d ɒb ɔdə/ noun an author-
job order
joint return /d ɔint ritn/ noun a tax

joint return
ised order for the production of goods or return that is filed jointly by a husband and
services wife
job order costing /d ɒb ɔdə kɒstiŋ/
job order costing
joint-stock bank /d ɔint stɒk bŋk/

joint-stock bank
noun the accumulation of costs incurred by noun a bank which is a public company
fulfilling specific orders for goods or serv- quoted on the Stock Exchange
ices
joint-stock company /d ɔint stɒk
joint-stock company
joint /d ɔint/ adjective 1. carried out or

joint
kmp(ə)ni/ noun formerly, a public com-

produced together with others 쑗 a joint pany in the UK whose shares were owned by
undertaking 2. one of two or more people very many people. Now called a Public Lim-
who work together or who are linked 쑗 They ited Company or Plc.
are joint beneficiaries of the will. 쑗 The two
joint venture /d ɔint ventʃə/ noun a
joint venture
countries are joint signatories of the treaty.

joint account /d ɔint əkaυnt/ noun a
joint account
|
situation where two or more companies join
bank or building society account shared by together for one specific large business
two people 쑗 Many married couples have project
journal /d n(ə)l/ noun a book with the
journal
joint accounts so that they can pay for

household expenses. account of sales and purchases made each
joint and several liability /d ɔint ən
joint and several liability
day
journal entry /d n(ə)l entri/ noun a
journal entry
sev(ə)rəl laiəbiliti/ noun a situation

|
where someone who has a claim against a record of the accounting information for a
group of people can sue them separately or business transaction, made at first in a jour-
together as a group nal and later transferred to a ledger
judgment /d d mənt/, judgement
judgment
joint cost /d ɔint kɒst/ noun the cost of

joint cost
which can be allocated to more than one noun a legal decision or official decision of
product, project or service a court 왍 to pronounce judgment, to give
joint-life annuity /d ɔint laif ənjuəti/
joint-life annuity
|
your judgment on something to give an
noun an annuity that continues until both official or legal decision about something
judgment creditor /d d mənt
judgment creditor
parties have died. They are attractive to mar-

ried couples as they ensure that the survivor kreditə/ noun a person who has been given
has an income for the rest of his or her life. a court order making a debtor pay him a debt

judgment debtor 130

judgment debtor
judgment debtor /d d mənt detə/ junior partner /d uniə pɑtnə/ noun a
junior partner
noun a debtor who has been ordered by a person who has a small part of the shares in
court to pay a debt a partnership
junior capital
junior capital /d uniə kpit(ə)l/ noun junior security /d uniə sikjυəriti/
junior security
noun a security which is repaid after other

capital in the form of shareholders’ equity, securities
which is repaid only after secured loans
just-in-time /d st in taim/ noun a sys-
just-in-time
called ‘senior capital’ have been paid if the tem in which goods are made or purchased
firm goes into liquidation just before they are needed, so as to avoid
junior mortgage
junior mortgage /d uniə mɔid / carrying high levels of stock. Abbreviation
noun a second mortgage JIT

K
K abbreviation one thousand 왍 ‘salary:
K
shares at a preferential rate (informal)

£20K+’ salary more than £20,000 per kite
kite /kait/ verb 1. US to write cheques on

annum one account which may not be able to hon-
Keogh plan /kiəυ pln/ noun US a pri-
Keogh plan
our them and deposit them in another, with-

vate pension plan allowing self-employed drawing money from the second account
businesspeople and professionals to set up before the cheques are cleared 2. to use sto-
pension and retirement plans for themselves len credit cards or cheque books
key-person insurance /ki ps(ə)n in
key-person insurance
kitty
kitty /kiti/ noun money which has been

|
ʃυərəns/ noun an insurance policy taken

out to cover the costs of replacing an collected by a group of people to be used
employee who is particularly important to later, such as for an office party 쑗 We each
an organisation if he or she dies or is ill for a put £5 into the kitty.
Know How Fund
long time Know How Fund /nəυ haυ fnd/ noun

key rate /ki reit/ noun an interest rate
key rate
formerly, a fund created by the UK govern-
which gives the basic rate on which other ment to provide technical training and
rates are calculated, e.g. the former bank advice to countries of Eastern Europe. This
base rate in the UK, or the Federal Reserve’s function is now carried out by the Depart-
discount rate in the USA ment for International Development.
kickback /kikbk/ noun an illegal com-
knowledge management
knowledge management /nɒlid

kickback
mission paid to someone, especially a gov- mnid mənt/ noun the task of co-ordinat-
ernment official, who helps in a business ing the specialist knowledge possessed by
deal employees so that it can be exploited to cre-
kicker /kikə/ noun a special inducement
kicker
ate benefits and competitive advantage for

to buy a bond, e.g. making it convertible to the organisation

L
labour /leibə/ noun 1. heavy work (NOTE: labour variance /leibə veəriəns/ noun
labour labour variance
The US spelling is labor.) 왍 labour is any discrepancy between the actual cost of
charged at £15 an hour each hour of work labour in an organisation and the standard
costs £15 2. workers, the workforce 쑗 We industry cost
will need to employ more labour if produc- Laffer curve /lfə kv/ noun a chart
Laffer curve
tion is to be increased. 쑗 The costs of labour showing that cuts in tax rates increase output
are rising in line with inflation. (NOTE: The in the economy. Alternatively, increases in
US spelling is labor.) tax rates initially produce more revenue and
‘…the possibility that British goods will then less as the economy slows down.
price themselves back into world markets lag /l/ verb to be behind or to be slower
lag
is doubtful as long as sterling labour costs than something

continue to rise faster than in competitor
lagging indicator /liŋ indikeitə/
lagging indicator
countries’ [Sunday Times]

noun an indicator which shows a change in
labour costs /leibə kɒsts/ plural noun
labour costs
economic trends later than other indicators,

the cost of the employees employed to make e.g. the gross national product. Opposite
a product, not including materials or over- leading indicator
heads
landlord /lndlɔd/ noun a person or
landlord
labour efficiency variance /leibə i

labour efficiency variance
|
company which owns a property which is let
fiʃ(ə)nsi veəriəns/ noun the discrepancy
land register /lnd red istə/ noun a
land register
between the usual or expected labour time

used to produce something and the actual list of pieces of land, showing who owns
time used each and what buildings are on it
land registration /lnd red i
land registration
labour force /leibə fɔs/ noun all the

labour force |
employees in a company or in an area 쑗 The streiʃ(ə)n/ noun a system of registering

management has made an increased offer to land and its owners
Land Registry /lnd red istri/ noun a
Land Registry
the labour force. 쑗 We are opening a new

factory in the Far East because of the cheap government office where details of land
local labour force. ownership and sales are kept
land tax /lnd tks/ noun a tax on the
land tax
‘70 per cent of Australia’s labour force is

employed in service activity’ [Australian amount of land owned
lapse /lps/ verb to stop being valid, or to
lapse
Financial Review]
labour market /leibə mɑkit/ noun the
labour market
stop being active 쑗 The guarantee has
number of people who are available for lapsed.
work 쑗 25,000 school-leavers have just lapsed option /lpst ɒpʃən/ noun an
lapsed option
come on to the labour market. option which has not been taken up, and now
labour rate (price) variance /leibə
labour rate variance
has expired
reit prais veəriəns/ noun any change to last in first out /lɑst in fst aυt/
last in first out
the normal hourly rate paid to workers phrase an accounting method where stock is
labour relations /leibə rileiʃ(ə)nz/
labour relations
|
valued at the price of the earliest purchases.
plural noun relations between management Abbreviation LIFO. Compare first in first
and employees 쑗 The company has a history out
last quarter /lɑst kwɔtə/ noun a
last quarter
of bad labour relations.

labour turnover /leibə tnəυvə/ noun
labour turnover
period of three months at the end of the
the movement of employees with some leav- financial year
ing their jobs and others joining. Also called last will and testament /lɑst wil ən
last will and testament
turnover of labour testəmənt/ noun a will, a document by

133 leasehold
which a person says what he or she wants to
lead time
lead time /lid taim/ noun the time

happen to their property when they die between deciding to place an order and
launder /lɔndə/ verb to pass illegal prof- receiving the product 쑗 The lead time on this
launder
its, money from selling drugs, money which item is more than six weeks.
has not been taxed, etc., into the banking lead underwriter
lead underwriter /lid ndəraitə/ noun

system 쑗 to launder money through an off- an underwriting firm which organises the
shore bank underwriting of a share issue (NOTE: The US
‘…it has since emerged that the bank was term is managing underwriter.)
being used to launder drug money and learning curve
some of its executives have been given learning curve /lniŋ kv/ noun 1. a
lengthy jail sentences’ [Times] process of learning something that starts
LAUTRO /laυtrəυ/ abbreviation Life
LAUTRO slowly and then becomes faster 2. a line on
Assurance and Unit Trust Regulatory a graph which shows the relationship
Organisation between experience in doing something and
competence at carrying it out 3. a diagram or
law /lɔ/ noun 1. 쏡 laws 2. 왍 inside or
law
graph that represents the way in which peo-

within the law obeying the laws of a coun- ple gain knowledge or experience over time
try 왍 against or outside the law not accord- (NOTE: A steep learning curve represents a
ing to the laws of a country 쑗 The company situation where people learn a great deal in
is possibly operating outside the law. 왍 to a short time; a shallow curve represents a
break the law to do something which is not slower learning process. The curve eventu-
allowed by law 쑗 He is breaking the law by ally levels out, representing the time when
trading without a licence. 3. a rule govern- the knowledge gained is being consoli-
ing some aspect of human activity made and dated.) 4. the decrease in the effort required
enforced by the state to produce each single item when the total
lawful /lɔf(ə)l/ adjective acting within the
lawful
number of items produced is doubled (NOTE:

law The concept of the learning curve has its
law of supply and demand /lɔ əv sə
law of supply and demand
|
origin in productivity research in the aircraft
plai ən dimɑnd/ noun a general rule that
|
industry of the 1930s, when it was discov-
the amount of a product which is available is ered that the time and effort needed to
related to the needs of potential customers assemble an aircraft decreased by 20%
laws /lɔz/ plural noun rules by which a
laws
each time the total number produced dou-

country is governed and the activities of bled.)
people and organisations controlled lease
lease /lis/ noun a written contract for let-

lay out phrasal verb to spend money 쑗 We
ting or renting a building, a piece of land or
had to lay out half our cash budget on equip- a piece of equipment for a period against
ping the new factory. payment of a fee 쑗 to rent office space on a
LBO abbreviation leveraged buyout
LBO
twenty-year lease 왍 the lease expires next

L/C abbreviation letter of credit
L/C
year or the lease runs out next year the

LCM abbreviation lower of cost or market lease comes to an end next year 쐽 verb 1. to
LCM
LDT abbreviation licensed deposit-taker

LDT
let or rent offices, land or machinery for a

lead bank /id bŋk/ noun the main
lead bank
period 쑗 to lease offices to small firms 쑗 to
bank in a loan syndicate lease equipment 2. to use an office, land or
leading indicator /lidiŋ indikeitə/
leading indicator
machinery for a time and pay a fee 쑗 to
noun an indicator such as manufacturing lease an office from an insurance company
order books which shows a change in eco- 쑗 All our company cars are leased.
nomic trends earlier than other indicators. lease back phrasal verb to sell a property
Opposite lagging indicator or machinery to a company and then take it
lead manager /lid mnid ə/ noun a
lead manager
back on a lease 쑗 They sold the office build-
person who organises a syndicate of under- ing to raise cash, and then leased it back on
writers for a new issue of securities a twenty-five year lease.
leasehold
leads and lags /lidz ən lz/ plural

leads and lags
leasehold /lishəυld/ noun, adjective

noun in businesses that deal in foreign cur- possessing property on a lease, for a fixed
rencies, the practice of speeding up the time 쑗 to buy a property leasehold 쑗 We are
receipt of payments (leads) if a currency is currently occupying a leasehold property. 쑗
going to weaken, and slowing down the pay- The company has some valuable leaseholds.
ment of costs (lags) if a currency is thought 쐽 noun a property held on a lease from a
to be about to strengthen, in order to maxim- freeholder 쑗 The company has some valua-
ise gains and reduce losses ble leaseholds.

leaseholder 134
lending limit /lendiŋ limit/ noun a
leaseholder lending limit
leaseholder /lishəυldə/ noun a person

who holds a property on a lease restriction on the amount of money a bank
leasing
leasing /lisiŋ/ noun the use of a lease or can lend

lending margin /lendiŋ mɑd in/ noun
lending margin
of equipment under a lease 쑗 an equipment-

leasing company 쑗 The company has an agreed spread for lending, based on the
branched out into car leasing. 쒁 lessee LIBOR
less /les/ adjective smaller than, of a
less
leasing agreement
leasing agreement /lisiŋ ərimənt/ |
noun a contract between an owner and a les- smaller size or of a smaller value 쑗 We do
see, by which the lessee has the exclusive not grant credit for sums of less than £100.
use of a piece of equipment for a period of 쑗 He sold it for less than he had paid for it.
time, against payment of a fee 쐽 preposition minus, with a sum removed 쑗
ledger purchase price less 15% discount 쑗 interest
ledger /led ə/ noun a book in which less service charges 쐽 adverb not as much
accounts are written
lessee /lesi/ noun a person who has a
lessee
|
legacy
legacy /leəsi/ noun a piece of property lease or who pays money for a property he or
given by someone to someone else in a will she leases
legal
legal /li(ə)l/ adjective 1. according to the lessor /lesɔ/ noun a person who grants a
lessor
law or allowed by the law 쑗 The company’s lease on a property

action in sacking the accountant was com- let /let/ verb to allow the use of a house, an
let
pletely legal. 2. referring to the law office or a farm to someone for the payment
legal capital
legal capital /li(ə)l kpit(ə)l/ noun of rent (NOTE: The US term is rent.)
the amount of shareholders’ equity in a com- letter of acknowledgement /letər əv
letter of acknowledgement
pany that is not reduced when dividends are əknɒlid mənt/ noun a letter which says
|
paid that something has been received

legal charge
legal charge /li(ə)l tʃɑd / noun a letter of credit /letər əv kredit/ noun a
letter of credit
legal document held by the Land Registry document issued by a bank on behalf of a
showing who has a claim on a property customer authorising payment to a supplier
legal claim
legal claim /li(ə)l kleim/ noun a state- when the conditions specified in the docu-
ment that someone owns something legally ment are met. Abbreviation L/C
letter of indemnity /letər əv in
letter of indemnity
쑗 He has no legal claim to the property. |
legal costs
legal costs /li(ə)l kɒsts/, legal demniti/ noun a letter promising payment
charges /li(ə)l tʃɑd iz/, legal as compensation for a loss
letter of intent /letər əv intent/ noun a
letter of intent
expenses /li(ə)l ikspensiz/ plural noun

|
|
money spent on fees to lawyers 쑗 The clerk letter which states what a company intends
could not afford the legal expenses involved to do if something happens
letter of licence /letər əv lais(ə)ns/
letter of licence
in suing her boss.

legal currency
legal currency /li(ə)l krənsi/ noun noun a letter from a creditor to a debtor who
money which is legally used in a country is having problems repaying money owed,
legal tender giving the debtor a certain period of time to
legal tender /li(ə)l tendə/ noun coins raise the money and an undertaking not to
or notes which can be legally used to pay a bring legal proceedings to recover the debt
debt during that period
legatee
legatee /leəti/ noun a person who

|
letters patent /letəz peitənt/ plural
letters patent
receives property from someone who has noun the official term for a patent
died level /lev(ə)l/ verb 왍 to level off or to level
level
lend
lend /lend/ verb to allow someone to use out to stop rising or falling 쑗 Profits have
something for a period 쑗 to lend something levelled off over the last few years. 쑗 Prices
to someone or to lend someone something 쑗 are levelling out.
to lend money against security 쑗 He lent the leverage /levərid / noun 1. same as
leverage
company money or He lent money to the gearing 2. the act of borrowing money at
company. 쑗 The bank lent her £50,000 to fixed interest which is then used to produce
start her business. (NOTE: lending – lent) more money than the interest paid
lender
lender /lendə/ noun a person who lends leveraged /livərid / adjective borrow-
leveraged
money ing relatively large sums of money in order

lender of the last resort
lender of the last resort /lendə əv ðə to finance assets

lɑst rizɔt/ noun a central bank which leveraged buyout /livərid d baiaυt/,
leveraged buyout
lends money to commercial banks leveraged takeover /livərid d

135 limiting factor

teikəυvə/ noun an act of buying all the life expectancy /laif ikspektənsi/
life expectancy
shares in a company by borrowing money noun the number of years a person is likely
against the security of the shares to be to live
bought. Abbreviation LBO life insurance /laif inʃυərəns/ noun
life insurance
‘…the offer came after management had US same as life assurance

offered to take the company private life interest /laif intrəst/ noun a situa-
life interest
through a leveraged buyout for $825 mil- tion where someone benefits from a prop-
lion’ [Fortune] erty as long as he or she is alive
levy /levi/ noun money which is demanded
levy
life tables /laif teib(ə)lz/ plural noun

life tables
and collected by the government same as actuarial tables

‘…royalties have been levied at a rate of LIFO /laifəυ/ abbreviation last in first out
LIFO
12.5% of full production’ [Lloyd’s List] limit /limit/ noun the point at which some-
limit
liabilities /laiəbilitiz/ plural noun the

liabilities
| thing ends or the point where you can go no

debts of a business, including dividends further 쐽 verb 1. to stop something from
owed to shareholders 쑗 The balance sheet going beyond a specific point, to restrict the
shows the company’s assets and liabilities. number or amount of something 2. to restrict
왍 to discharge your liabilities in full to pay the number or amount of something
everything which you owe ‘…the biggest surprise of 1999 was the
liability /laiəbiliti/ noun 1. a legal
liability
| rebound in the price of oil. In the early

responsibility for damage, loss or harm 쑗 months of the year commentators were
The two partners took out insurance to cover talking about a fall to $5 a barrel but for the
employers’ liability. 2. responsibility for a first time in two decades, the oil exporting
payment such as the repayment of a loan countries got their act together, limited
production and succeeded in pushing
LIBOR /laibɔ/ abbreviation London
LIBOR
prices up’ [Financial Times]

Interbank Offered Rate
limitation /limiteiʃ(ə)n/ noun the act of
limitation
licensed deposit-taker /lais(ə)nst di

licensed deposit-taker
|
allowing only a specific quantity of some-
pɒzit teikə/, licensed institution thing 쑗 The contract imposes limitations on
/lais(ə)nst institjuʃ(ə)n/ noun a |
the number of cars which can be imported.
deposit-taking institution which is licensed limited company /limitid kmp(ə)ni/
limited company
to receive money on deposit from private noun a company in which each shareholder
individuals and to pay interest on it, e.g. a is responsible for the company’s debts only
building society, bank or friendly society. to the amount that he or she has invested in
Abbreviation LDT the company. Limited companies must be
lien /liən/ noun the legal right to hold
lien
formed by at least two directors. Abbrevia-

someone’s goods and keep them until a debt tion Ltd. Also called limited liability com-
has been paid pany
life assurance /laif əʃυərəns/ noun
life assurance
limited liability /limitid laiəbiliti/

limited liability
| |
insurance which pays a sum of money when noun a situation where someone’s liability
someone dies, or at an agreed date if they are for debt is limited by law
still alive limited liability company /limitid
limited liability company
Life Assurance and Unit Trust Reg-

Life Assurance and Unit Trust Regulatory Organisation
laiəbiliti kmp(ə)ni/ noun same as lim-

ulatory Organisation /laif əʃɔrəns | ited company
ən junit trst rejυlət(ə)ri limited partner /limitid pɑtnə/ noun a
limited partner
ɔənaizeiʃ(ə)n/ noun an organisation set partner who is responsible for the debts of
up to regulate the operations of life assur- the firm only up to the amount of money
ance companies and unit trusts, now which he or she has provided to the business
replaced by the FSA. Abbreviation LAU- limited partnership
limited partnership
/limitid
TRO pɑtnəʃip/ noun a registered business
life assurance company /laif ə
life assurance company
| where the liability of the partners is limited

ʃɔrəns kmp(ə)ni/ noun a company pro- to the amount of capital they have each pro-
viding life assurance, but usually also provided to the business and where the partners
viding other services such as investment may not take part in the running of the busi-
advice ness
life-cycle costing /laif saik(ə)l limiting factor /limitiŋ fktə/ noun a
life-cycle costing limiting factor
kɒstiŋ/ noun an estimate of the likely rev- factor which limits a company’s ability to
enue generated by, and costs incurred by, a achieve its goals, e.g. sales demand being
product over its life cycle too low for the company to make enough

line item budget 136

profit 쑗 The short holiday season is a limit- listing details /listiŋ diteilz/ plural
listing details
ing factor on the hotel trade. noun details of a company which are pub-
line item budget /lain aitəm bd it/
line item budget
lished when the company applies for a stock
noun a well-established budget layout that exchange listing (the US equivalent is the
shows the costs of a cost object analysed by ‘registration statement’)
their nature in a line-by-line format listing particulars /listiŋ pətikjυləz/
listing particulars
line of credit /lain əv kredit/ noun 1.

line of credit
plural noun same as listing details
the amount of money made available to a listing requirements /listiŋ ri
listing requirements
customer by a bank as an overdraft 왍 to kwaiəmənts/ plural noun the conditions

open a line of credit or a credit line to which must be met by a corporation before
make credit available to someone 2. the bor- its stock can be listed on the New York Stock
rowing limit on a credit card Exchange
link /liŋk/ verb to join or to attach to some-
link
litigation /litieiʃ(ə)n/ noun the bring-

litigation
thing else 쑗 to link pensions to inflation 쑗 to ing of a lawsuit against someone

link bonus payments to productivity 쑗 His loan /ləυn/ noun money which has been
loan
salary is linked to the cost of living. 쒁 index- lent

linked
‘…over the last few weeks, companies
liquid /likwid/ adjective easily converted
liquid
raising new loans from international banks

to cash, or containing a large amount of cash have been forced to pay more, and an unu-
liquid assets /likwid sets/ plural
liquid assets
sually high number of attempts to syndi-

noun cash, or investments which can be cate loans among banks has failed’
quickly converted into cash [Financial Times]
loan capital /ləυn kpit(ə)l/ noun a
loan capital
liquidation /likwideiʃ(ə)n/ noun 1. the

liquidation
sale of assets for cash, usually in order to part of a company’s capital which is a loan
pay debts 왍 liquidation of a debt payment to be repaid at a later date
of a debt 2. the winding up or closing of a loan stock /ləυn stɒk/ noun stock issued
loan stock
company and selling of its assets 왍 the com- to an organisation in return for a loan. Loan
pany went into liquidation the company stock earns interest.
was closed and its assets sold local /ləυk(ə)l/ adjective located in or pro-
local
liquidation value /likwideiʃ(ə)n

liquidation value
|
viding a service for a restricted area
vlju/ noun the amount of money that ‘…each cheque can be made out for the
would be yielded by a quick sale of all of a local equivalent of £100 rounded up to a
company’s assets convenient figure’ [Sunday Times]
liquidator /likwideitə/ noun a person
liquidator
‘…the business agent for Local 414 of the

named to supervise the closing of a com- Store Union said his committee will rec-
pany which is in liquidation ommend that the membership ratify the
liquidity /likwiditi/ noun cash, or the fact
liquidity
|
agreement’ [Toronto Star]
of having cash or assets which can be ‘EC regulations insist that customers can
changed into cash buy cars anywhere in the EC at the local
liquidity ratio /likwiditi reiʃiəυ/ noun
liquidity ratio
|
pre-tax price’ [Financial Times]
local authority /ləυk(ə)l ɔθɒriti/ noun
local authority
an accounting ratio used to measure an |
organisation’s liquidity. It is calculated by an elected section of government which runs

taking the business’s current assets, minus a small area of the country
its stocks, divided by its current liabilities. local currency /ləυk(ə)l krənsi/ noun
local currency
Also called acid test ratio, quick ratio the currency of a particular country where a
listed company /listid kmp(ə)ni/ transaction is being carried out 쑗 Because of
listed company
noun a company whose shares can be the weakness of the local currency, all pay-
bought or sold on the Stock Exchange ments are in dollars.
listed securities /listid sikjυəritiz/ local government /ləυk(ə)l
listed securities local government
plural noun shares which can be bought or v(ə)nmənt/ noun elected authorities and
sold on the Stock Exchange, shares which administrative organisations which deal
appear on the official Stock Exchange list with the affairs of small areas of a country
Listing Agreement /listiŋ ərimənt/ lock into /lɒk intə/, lock in /lɒk in/
Listing Agreement lock into
noun a document which a company signs verb to be fixed to an interest rate or

when being listed on the Stock Exchange, in exchange rate 쑗 By buying francs forward
which it promises to abide by stock the company is in effect locking itself into a
exchange regulations pound-franc exchange rate of 10.06.

137 luxury tax

London Interbank Offered Rate
London Interbank Offered Rate ‘…against losses of FFr 7.7m two years
/lndən intəbŋk ɒfəd reit/ noun the ago, the company made a net profit of FFr
rate at which banks offer to lend Eurodollars 300,000 last year’ [Financial Times]
loss adjuster /lɒs əd stə/ noun a per-
loss adjuster
to other banks. Abbreviation LIBOR |
long
long /lɒŋ/ adjective for a large period of son who calculates how much insurance
time should be paid on a claim
loss carryback
long bond loss carryback /lɒs kribk/ noun the

long bond /lɒŋ bɒnd/, long coupon process of applying a net operating loss to a
bond /lɒŋ kupɒn bɒnd/ noun a bond previous accounting year
which will mature in more than ten years’
loss carryforward /lɒs krifɔwəd/
loss carryforward
time
long credit noun the process of applying a net operating
long credit /lɒŋ kredit/ noun credit loss to a following accounting year
terms which allow the borrower a long time
loss relief /lɒs rilif/ noun an amount of
loss relief
to pay
|
long-dated bill
tax not to be paid on one year’s profit to off-
long-dated bill /lɒŋ deitid bil/ noun a set a loss in the previous year
bill which is payable in more than three lot /lɒt/ noun 1. a group of items sold
lot
months’ time together at an auction 쑗 to bid for lot 23 쑗

long-dated stocks
long-dated stocks /lɒŋ deitid stɒks/ At the end of the auction half the lots were
plural noun same as longs unsold. 2. a group of shares which are sold
long lease
long lease /lɒŋ lis/ noun a lease which 쑗 to sell a lot of shares 쑗 to sell shares in
runs for fifty years or more 쑗 to take an small lots
lottery /lɒtəri/ noun a game where num-
lottery
office building on a long lease

long position bered tickets are sold and prizes given for
long position /lɒŋ pəziʃ(ə)n/ noun a|
some of the numbers
situation where an investor sells long, i.e.
lower of cost or market /ləυər əv kɒst
lower of cost or market
sells forward shares which he or she owns.

Compare short position ɔ mɑkit/ noun a stock-accounting
long-range method in which a manufacturing or supply
long-range /lɒŋ reind / adjective for a firm values items of stock either at their
long period of time in the future original cost or the current market price,
whichever is lower. Abbreviation LCM
longs
longs /lɒŋz/ plural noun government

stocks which will mature in over fifteen low gearing /ləυ iəriŋ/ noun the fact of
low gearing
years’ time. Also called long-dated stocks not having much borrowing in proportion to
long-term
long-term /lɒŋ tm/ adjective relating your capital

to a long time into the future 쑗 The manage- low yield /ləυ jild/ noun a yield on the
low yield
ment projections are made on a long-term share price which is low for the sector, sug-
basis. 쑗 Sound long-term planning will give gesting that investors anticipate that the
the company more direction. company will grow fast, and have pushed up
long-term borrowings
long-term borrowings /lɒŋ tm the share price in expectation of growth

loyalty bonus /lɔiəlti bəυnəs/ noun a
loyalty bonus
bɒrəυiŋz/ plural noun borrowings which

do not have to be repaid for some years special privilege given to shareholders who
long-term debt keep their shares for a long period of time,
long-term debt /lɒŋ tm det/ noun used especially to attract investors to privati-
loans that are not repaid within a year sation issues
loose change
loose change /lus tʃeind / noun Ltd abbreviation limited company

Ltd
money in coins lump sum /lmp sm/ noun money paid

lump sum
lose
lose /luz/ verb 1. not to have something in one single amount, not in several small
any more 2. to have less money 쑗 He lost sums 쑗 When he retired he was given a
£25,000 in his father’s computer company. lump-sum bonus. 쑗 She sold her house and
loss
loss /lɒs/ noun 1. the state or process of not invested the money as a lump sum.
luncheon voucher /lnʃtən vaυtʃə/
luncheon voucher
having something any more 2. the state of

having less money than before or of not noun a ticket given by an employer to an
making a profit 왍 the car was written off as employee in addition to their wages, which
a dead loss or a total loss the car was so can be exchanged for food in a restaurant
badly damaged that the insurers said it had luxury tax /lkʃəri tks/ noun a tax on
luxury tax
no value 왍 to cut your losses to stop doing goods or services that are considered non-
something which is losing money essential

M
machine hour rate /məʃin aυə reit/
machine hour rate maladministration
| maladministration /mlədmini
| |
noun a method of calculating production streiʃ(ə)n/ noun incompetent administra-

overhead absorption rate, where the number tion
of hours the machines are expected to work manage
manage /mnid / verb to direct or to be

is divided into the budgeted production in charge of something 쑗 to manage a
overhead to give a rate per hour branch office 쑗 A competent and motivated
macro- /mkrəυ/ prefix very large, cover-
macro-
person is required to manage an important

ing a wide area department in the company.
macroeconomics
macroeconomics
/mkrəυikə | ‘…the research director will manage and

nɒmiks/ plural noun a study of the eco- direct a team of graduate business analysts
nomics of a whole area, a whole industry, a reporting on consumer behaviour through-
whole group of the population or a whole out the UK’ [Times]
country, in order to help in economic plan- managed earnings
managed earnings /mnid d niŋz/

ning. Compare microeconomics (NOTE: plural noun the use of any of various
takes a singular verb) accounting devices to make profits appear
majority shareholder /məd ɒrəti
majority shareholder
| higher or lower than they actually were in a

ʃeəhəυldə/ noun a person who owns more given accounting period
than half the shares in a company managed fund
managed fund /mnid d fnd/ noun a

majority shareholding /məd ɒrəti
majority shareholding
| unit trust fund which is invested in specialist

ʃeəhəυldiŋ/ noun a group of shares which funds within the group and can be switched
are more than half the total from one specialised investment area to
majority vote /məd ɒriti vəυt/, major-
majority vote
|
another. Also called managed unit trust
ity decision /məd ɒriti disi (ə)n/ noun a
managed rate
| | managed rate /mnid d reit/ noun a

decision which represents the wishes of the rate of interest charged by a financial institu-
largest group as shown by a vote tion for borrowing that is not prescribed as a
make /meik/ verb 1. to produce or to man-
make
margin over base rate but is set from time to
ufacture 쑗 The factory makes three hundred time by the institution
cars a day. 2. to earn money 쑗 He makes
managed unit trust
managed unit trust /mnid d junit

£50,000 a year or £25 an hour. 3. to increase trst/ noun same as managed fund
in value 쑗 The shares made $2.92 in today’s management
management /mnid mənt/ noun 1.

trading. 4. 왍 to make a profit to have more the process of directing or running a busi-
money after a deal 왍 to make a loss to have ness 쑗 a management graduate or a gradu-
less money after a deal 왍 to make a killing ate in management 쑗 Good management or
to make a very large profit efficient management is essential in a large
make over phrasal verb to transfer property organisation. 쑗 Bad management or ineffi-
legally 쑗 to make over the house to your cient management can ruin a business. 2. a
children group of managers or directors 쑗 The man-
make up phrasal verb to compensate for agement has decided to give everyone a pay
something 왍 to make up a loss or differ- increase. (NOTE: Where management
ence to pay extra so that the loss or differ- refers to a group of people it is sometimes
ence is covered followed by a plural verb.)
make-or-buy decision /meik ɔ bai di
make-or-buy decision
|
‘…the management says that the rate of
si (ə)n/ noun a choice between manufac- loss-making has come down and it expects
turing a product or component and buying it further improvement in the next few years’
in [Financial Times]

139 manufacturing profit

management accountant agement tasks and decision-making. Abbre-
management accountant
/mnid mənt əkaυntənt/ noun an | viation MIS

accountant who prepares financial informa- management review /mnid mənt ri
management review
tion for managers so that they can take deci- vju/ noun an external auditor’s evaluation
sions of the performance of the managers of an
management accounting organisation. Also called management let-
management accounting
/mnid mənt əkaυntiŋ/, management

| ter
accountancy /mnid mənt ə | management team /mnid mənt
management team
kaυntənsi/ noun the providing of informa- tim/ noun all the managers who work in a
tion to managers, which helps them to plan, particular company
to control their businesses and to take deci- manager /mnid ə/ noun 1. the head of
manager
sions which will make them run their busi- a department in a company 쑗 She’s a
nesses more efficiently. Compare financial department manager in an engineering
accounting company. 쑗 Go and see the human
management accounts resources manager if you have a problem. 쑗
management accounts
/mnid mənt əkaυnts/ plural noun | The production manager has been with the
financial information prepared for a man- company for only two weeks. 2. the person in
ager so that decisions can be made, includ- charge of a branch or shop 쑗 Mr Smith is the
ing monthly or quarterly financial state- manager of our local Lloyds Bank. 쑗 The
ments, often in great detail, with analysis of manager of our Lagos branch is in London
actual performance against the budget for a series of meetings.
management audit /mnid mənt
management audit
‘…the No. 1 managerial productivity

ɔdit/ noun a listing of all the managers in problem in America is managers who are
an organisation with information about their out of touch with their people and out of
skills and experience 쑗 The management touch with their customers’ [Fortune]
audit helped determine how many more managing director /mnəd iŋ dai
managing director
managers needed to be recruited. rektə/ noun the director who is in charge of

management buyin /mnid mənt a whole company. Abbreviation MD
management buyin
baiin/ noun the purchase of a subsidiary mandate /mndeit/ noun an order which
mandate
company by a group of outside directors. allows something to take place

Abbreviation MBI mandatory bid /mndət(ə)ri bid/
mandatory bid
management buyout /mnid mənt

management buyout
noun an offer to purchase the shares of a

baiaυt/ noun the takeover of a company by company which has to be made when a
a group of employees, usually senior man- shareholder acquires 30% of that company’s
agers and directors. Abbreviation MBO shares
management charge /mnid mənt manipulate /mənipjυleit/ verb 왍 to
management charge manipulate
tʃɑd / noun same as annual manage- manipulate the accounts to make false
ment charge accounts so that the company seems profita-
management
management consultant
consultant ble
/mnid mənt kənsltənt/ noun a person manpower forecasting /mnpaυə
manpower forecasting
who gives advice on how to manage a busi- fɔkɑstiŋ/ noun the process of calculating
ness how many employees will be needed in the
management control
management control system
system future, and how many will actually be avail-

/mnid mənt kəntrəυl sistəm/ noun a |
able
comprehensive plan designed to ensure that manpower planning /mnpaυə
manpower planning
an organisation’s resources are used effec- plniŋ/ noun the process of planning to
tively obtain the right number of employees in
management decision
management decision cycle
cycle each job

/mnid mənt disi (ə)n saik(ə)l/ noun a manufacturing /mnjυfktʃəriŋ/
manufacturing
| |
model for efficiency in business decision- noun the production of machine-made prod-
making, following the process from the ucts for sale 쑗 We must try to reduce the
identification of a need or problem to an manufacturing overheads. 쑗 Manufacturing
accountant’s analysis of the effect of the processes are continually being updated.
decisions taken manufacturing
manufacturing profit
profit /mnjυ|
management information system fktʃəriŋ prɒfit/ noun the difference

management information system
/mnid mənt infəmeiʃ(ə)n sistəm/ | between the cost of buying a product from
noun a computer-based information system another supplier and the cost to the company
that is specially designed to assist with man- of manufacturing it itself

margin 140
manufacturing resource planning
margin margin call
margin call /mɑd in kɔl/ noun a

/mnjυfktʃəriŋ rizɔs plniŋ/ noun
| | request for a purchaser of a futures contract
an integrated computerised information sys- or an option to pay more margin, since the
tem that integrates all aspects of a com- fall in the price of the securities or commod-
pany’s manufacturing business ity has removed the value of the original
margin /mɑd in/ noun 1. the difference
margin
margin deposited
between the money received when selling a margin of safety
margin of safety /mɑd in əv seifti/

product and the money paid for it 2. extra noun the units produced or sales of such
space or time allowed 3. the difference units which are above the breakeven point
between interest paid to depositors and mark down phrasal verb to make the price
interest charged to borrowers by a bank, of something lower
building society, etc. 4. a deposit paid when mark up phrasal verb to make the price of
purchasing a futures contract something higher
‘…profit margins in the industries most mark-down
exposed to foreign competition – machin- mark-down /mɑk daυn/ noun 1. a

ery, transportation equipment and electri- reduction of the price of something to less
cal goods – are significantly worse than than its usual price 2. the percentage amount
usual’ [Australian Financial Review] by which a price has been lowered 쑗 There
marginal /mɑd in(ə)l/ adjective hardly
marginal
has been a 30% mark-down on all goods in
worth the money paid the sale.
market
marginal analysis /mɑd in(ə)l ə

marginal analysis
|
market /mɑkit/ noun 1. an area where a
nləsis/ noun an assessment of the impact product might be sold or the group of people
of minor changes on a company, industry or who might buy a product 쑗 There is no mar-
economy ket for this product. 쑗 Our share of the Far
marginal cost /mɑd in(ə)l kɒst/ noun
marginal cost eastern market has gone down. 2. the possi-
the cost of making a single extra unit above ble sales of a specific product or demand for
the number already planned a specific product 쑗 There’s no market for
word processors 쑗 The market for home
marginal costing /mɑd in(ə)l
marginal costing
computers has fallen sharply. 쑗 We have

kɒstiŋ/ noun the costing of a product on 20% of the UK car market. 3. a place where
the basis of its variable costs only, excluding money or commodities are traded 4. 왍 sell at
fixed costs the market an instruction to stockbroker to
marginal pricing /mɑd in(ə)l sell shares at the best price possible 5. 왍 to
marginal pricing
praisiŋ/ noun 1. the practice of basing the put something on the market to start to
selling price of a product on its variable offer something for sale 쑗 They put their
costs of production plus a margin, but house on the market. 쑗 I hear the company
excluding fixed costs 2. the practice of mak- has been put on the market. 왍 the company
ing the selling price the same as the cost of a has priced itself out of the market the
single extra unit above the number already company has raised its prices so high that its
planned products do not sell
marginal rate of tax /mɑd in(ə)l reit
marginal rate of tax
‘…market analysts described the falls in

əv tks/, marginal rate of taxation the second half of last week as a technical
/mɑd in(ə)l reit əv tkseiʃ(ə)n/ noun
| correction to a market which had been
the percentage of tax which a taxpayer pays pushed by demand to over the 900 index
at the top rate, which he or she therefore level’ [Australian Financial Review]
pays on every further pound or dollar he or marketability
marketability /mɑkitəbiliti/ noun the

|
she earns. Also called marginal tax rate fact of being able to be sold easily 쑗 the
‘…pensioner groups claim that pensioners marketability of shares in electronic compa-
have the highest marginal rates of tax. nies
Income earned by pensioners above $30 a marketable
week is taxed at 62.5 per cent, more than marketable /mɑkitəb(ə)l/ adjective
the highest marginal rate’ [Australian easily sold
Financial Review]
market analysis
market analysis /mɑkit ənləsis/ |
marginal
marginal revenue
revenue /mɑd in(ə)l noun the detailed examination and report of

revenju/ noun the income from selling a a market
single extra unit above the number already market capitalisation
market capitalisation /mɑkit

sold kpitəlaizeiʃ(ə)n/ noun the total market
|
marginal tax rate /mɑd in(ə)l tks

marginal tax rate
value of a company, calculated by multiply-

reit/ noun same as marginal rate of tax ing the price of its shares on the Stock

141 material facts

Exchange by the number of shares outstand- price at which a share stands in a stock mar-
ing 쑗 company with a £1m capitalisation ket
market economist /mɑkit i market rate /mɑkit reit/ noun the usual
market economist market rate
kɒnəmist/ noun a person who specialises price in the market 쑗 We pay the market rate
in the study of financial structures and the for temporary staff or We pay temporary
return on investments in the stock market staff the market rate.
market forces /mɑkit fɔsiz/ plural ‘…after the prime rate cut yesterday, there
market forces
noun the influences on the sales of a product was a further fall in short-term market
which bring about a change in prices rates’ [Financial Times]
market research /mɑkit ristʃ/ noun
market research
marketing /mɑkitiŋ/ noun the business

marketing
|
of presenting and promoting goods or serv- the process of examining the possible sales
ices in such a way as to make customers of a product and the possible customers for
want to buy them it before it is put on the market
market risk premium /mɑkit risk
market risk premium
‘…reporting to the marketing director, the

successful applicant will be responsible primiəm/ noun the extra return required
for the development of a training pro- from a high-risk share to compensate for its
gramme for the new sales force’ [Times] higher-than-average risk
marketing agreement /mɑkitiŋ ə market trends /mɑkit trendz/ plural
marketing agreement market trends
rimənt/ noun a contract by which one noun gradual changes taking place in a mar-
company will market another company’s ket
products market value /mɑkit vlju/ noun the
market value
marketing cost /mɑkitiŋ kɒst/ noun value of an asset, a share, a product or a

marketing cost
the cost of selling a product, including company if sold today

advertising, packaging, etc. mark-up /mɑk p/ noun 1. an increase in
mark-up
marketing department /mɑkitiŋ di

marketing department
| price 쑗 We put into effect a 10% mark-up of

pɑtmənt/ noun the section of a company all prices in June. 쑗 Since I was last in the
dealing with marketing and sales store they have put at least a 5% mark-up on
marketing
marketing manager
manager /mɑkitiŋ the whole range of items. 2. the difference

mnid ə/ noun a person in charge of a between the cost of a product or service and
marketing department 쑗 The marketing its selling price 왍 we work to a 3.5 times
manager has decided to start a new adver- mark-up or to a 350% mark-up we take
tising campaign. the unit cost and multiply by 3.5 to give the
market leader /mɑkit lidə/ noun 1. a
market leader
selling price
mass production /ms prədkʃən/
mass production
product which sells most in a market 2. the |
company with the largest market share 쑗 We noun the manufacture of large quantities of
are the market leader in home computers. identical products
master budget /mɑstə bd it/ noun a
master budget
‘…market leaders may benefit from scale

economies or other cost advantages; they plan that assesses an organisation’s pro-
may enjoy a reputation for quality simply posed activities in terms of assets, equities,
by being at the top, or they may actually revenues and costs
produce a superior product that gives them matching /mtʃiŋ/ noun the process of
matching
both a large market share and high profits’ comparing costs to sales in order to calculate
[Accountancy] profits during an accounting period
marketmaker /mɑkitmeikə/ noun a
marketmaker
matching concept /mtʃiŋ kɒnsept/,

matching concept
person or firm that buys and sells shares on matching convention /mtʃiŋ kən |
the stock market and offers to do so (NOTE: venʃən/ noun the basis for preparing
Marketmakers list the securities they are accounts which says that profits can only be
willing to buy or sell and their bid and offer recognised if sales are fully matched with
prices. If the prices are met, they immedi- costs accrued during the same period
ately buy or sell and make their money by material facts /mətiəriəl fkts/ plural
material facts
charging a commission on each transac- noun 1. in an insurance contract, informa-

tion. Marketmakers play an important part tion that the insured has to reveal at the time
in maintaining an orderly market.) that the policy is taken out, e.g., that a house
market opportunities /mɑkit ɒpə
market opportunities
|
is located on the edge of a crumbling cliff.
tjunitiz/ plural noun the possibility of Failure to reveal material facts can result in
finding new sales in a market the contract being declared void. 2. informa-
market price /mɑkit prais/ noun 1. the
market price
tion that has to be disclosed in a prospectus.

price at which a product can be sold 2. the 쒁 listing requirements

materiality 142
materiality /mətiəriliti/ noun the seri- Our aim is to maximise profits. 쑗 She is paid
materiality
| |
ousness of an omission or misstatement in on results, and so has to work flat out to

accounts maximise her earnings.
material news /mətiəriəl njuz/ plural maximum /mksiməm/ noun the largest
material news maximum
noun price sensitive developments in a com- possible number, price or quantity 쑗 It is the
pany, e.g., proposed acquisitions, mergers, maximum the insurance company will pay.
profit warnings and the resignation of direc- (NOTE: The plural is maxima or maxi-
tors, that most stock exchanges require a mums.) 왍 up to a maximum of £10 no
company to announce immediately to the more than £10 쐽 adjective largest possible 쑗
exchange (NOTE: The US term is material 40% is the maximum income tax rate or the
information.) maximum rate of tax. 쑗 The maximum load
material requirement planning /mə
material requirement planning
| for the truck is one ton. 쑗 Maximum produc-

tiəriəl rikwaiəmənt plniŋ/ a compu-
| tion levels were reached last week.
ter-based system that deals with the ordering MBI abbreviation management buyin
MBI
and processing of component parts and MBO abbreviation management buyout

MBO
materials. Abbreviation MRP

MD abbreviation managing director 쑗 She
MD
materials price variance /mətiəriəlz

materials price variance
|
was appointed MD of a property company.
prais veəriəns/ noun the discrepancy
mean /min/ adjective average 쑗 The mean
mean
between the price actually paid for materials

and the price that it was expected would be annual increase in sales is 3.20%. 쐽 noun
paid the average or number calculated by adding
materials quantity (usage) variance
materials quantity variance several quantities together and dividing by
/mətiəriəlz kwɒntiti veəriəns/ noun the
the number of quantities added 쑗 Unit sales
are over the mean for the first quarter or
|
discrepancy between the actual quantity of

materials used in production and the quan- above the first-quarter mean.
means /minz/ noun a way of doing some-
means
tity of materials normally allowed

materials
materials variance
variance /mətiəriəlz thing 쑗 Do we have any means of copying

all these documents quickly? 쑗 Bank trans-
|
veəriəns/ noun a combination of materials

price variance and materials quantity fer is the easiest means of payment. (NOTE:
(usage) variance The plural is means.) 쐽 plural noun money
or resources 쑗 The company has the means
maternity benefit /mətniti benifit/
maternity benefit
|
to launch the new product. 쑗 Such a level of
noun money paid by the National Insurance
investment is beyond the means of a small
to a mother when she has her child private company.
maternity pay period /mətniti pei
maternity pay period
means test /minz test/ noun an inquiry

| means test
piəriəd/ noun a period of eighteen weeks

when statutory maternity pay is paid. Abbre- into how much money someone earns to see
viation MPP if they are eligible for state benefits
means-test /minz test/ verb to find out
means-test
maturity /mətʃυəriti/ noun the time at

maturity
which something becomes due for payment how much money someone has in savings
or repayment and assets 쑗 All applicants will be means-
tested.
maturity date /mətʃυəriti deit/ noun a
maturity date
measure /me ə/ noun 1. a way of calcu-

measure
date when a government stock, an assurance

policy or a debenture will become due for lating size or quantity 2. a type of action 쐽
payment. Also called date of maturity verb 왍 to measure a company’s perform-
maturity value /mətʃυəriti vlju/
maturity value
|
ance to judge how well a company is doing
measurement of profitability
measurement of profitability
noun the amount payable when a bond or

other financial instrument matures /me əmənt əv prɒfitəbiliti/ noun a way
|
maxi ISA /mksi aisə/ noun an ISA that

maxi ISA
of calculating how profitable something is
median /midiən/ noun the middle
median
offers the opportunity to invest on the stock

market, with a limit on combined cash and number in a list of numbers
stock market investments of £7000 per year. medical insurance /medik(ə)l in
medical insurance
쒁 mini ISA ʃυərəns/ noun insurance which pays the

maximisation
maximisation
/mksimaizeiʃ(ə)n/, | cost of medical treatment, especially when

maximization noun the process of making someone is travelling abroad
something as large as possible 쑗 profit max- medium of exchange /midiəm əv iks
medium of exchange
imisation or maximisation of profit tʃeind / noun anything that is used to pay

maximise /mksimaiz/, maximize verb for goods. Nowadays, this usually takes the
maximise
to make something as large as possible 쑗 form of money (banknotes and coins), but in

143 mid-week
ancient societies, it included anything from merchant /mtʃənt/ noun 1. a busi-
merchant
cattle to shells. nessperson who buys and sells, especially

mediums /midiəmz/ plural noun gov-
mediums
one who buys imported goods in bulk for
ernment stocks which mature in seven to fif- retail sale 쑗 a coal merchant 쑗 a wine mer-
teen years’ time chant 2. a company, shop or other business
medium-sized company /midiəm
medium-sized company
which accepts a credit card for purchases
merchant bank /mtʃənt bŋk/ noun
merchant bank
saizd kmp(ə)ni/ noun a company which

has an annual turnover of less than £22.8m 1. a bank which arranges loans to compa-
and does not employ more than 250 staff 쑗 nies, deals in international finance, buys and
a medium-sized engineering company sells shares and launches new companies on
medium-term bond /midiəm tm
medium-term bond
the Stock Exchange, but does not provide
bɒnd/ noun a bond which matures within banking services to the general public 2. US
five to fifteen years a bank which operates a credit card system,
member /membə/ noun 1. a person who
member accepting payment on credit cards from
belongs to a group, society or organisation 쑗 retailers or ‘merchants’
merchant banker /mtʃənt bŋkə/
merchant banker
Committee members voted on the proposal.

쑗 They were elected members of the board. noun a person who has a high position in a
쑗 Every employer is a member of the merchant bank
merchant number /mtʃənt nmbə/
merchant number
employers’ federation. 2. a shareholder in a

company 3. an organisation which belongs noun a number of the merchant, printed at
to a larger organisation 쑗 the member states the top of the report slip when depositing
of the EU 쑗 the members of the United credit card payments
Nations 쑗 the member companies of a trade merge /md / verb to join together 쑗 The
merge
association two companies have merged. 쑗 The firm

‘…it will be the first opportunity for party merged with its main competitor.
members and trade union members to merger /md ə/ noun the joining
merger
express their views on the tax package’ together of two or more companies 쑗 As a
[Australian Financial Review] result of the merger, the company is now the
member bank /membə bŋk/ noun a
member bank
largest in the field.

bank which is part of the Federal Reserve merger accounting /md ə ə
merger accounting
system kaυntiŋ/ noun a way of presenting the

member firm /membə fm/ noun a
member firm
accounts of a newly acquired company

stockbroking firm which is a member of a within the group accounts, so as to show it in
stock exchange the best possible light
membership /membəʃip/ noun 1. the
membership
mezzanine finance /metsənin

mezzanine finance
fact of belonging to a group, society or fainns/ noun finance provided to a com-

organisation 쑗 membership qualifications 쑗 pany after it has received start-up finance
conditions of membership 쑗 membership of micro- /maikrəυ/ prefix very small
micro-
the EU 2. all the members of a group 쑗 The

microeconomics /maikrəυ ikə
microeconomics
membership was asked to vote for the new |
president. nɒmiks/ plural noun the study of the eco-

nomics of people or single companies. Com-
‘…the bargaining committee will recom- pare macroeconomics (NOTE: takes a sin-
mend that its membership ratify the agree- gular verb)
ment at a meeting called for June’
middle management /mid(ə)l
middle management
[Toronto Star]
members’ voluntary winding up
members’ voluntary winding up mnid mənt/ noun department managers
/membəz vɒlənt(ə)ri waindiŋ p/ noun in a company, who carry out the policy set
the winding up of a company by the share- by the directors and organise the work of a
holders themselves group of employees
middle price /mid(ə)l prais/ noun a
middle price
memorandum and articles of asso-

memorandum and articles of association
ciation /memərndəm ənd ɑtik(ə)lz |

price between the buying and selling price,
əv əsəυsieiʃ(ə)n/, memorandum of
| |
usually shown in indices
mid-month /mid mnθ/ adjective hap-
mid-month
association /memərndəm əv əsəυsi | |
eiʃ(ə)n/ noun the legal documents which pening in the middle of the month 쑗 mid-
set up a limited company and give details of month accounts
mid-week /mid wik/ adjective happen-
mid-week
its name, aims, authorised share capital,

conduct of meetings, appointment of direc- ing in the middle of a week 쑗 the mid-week
tors and registered office lull in sales

millionaire 144
millionaire /miljəneə/ noun a person misappropriation /misəprəυpri
millionaire misappropriation
| |
who has more than one million pounds or eiʃ(ə)n/ noun the illegal use of money by
dollars someone who is not the owner but who has
mini ISA /mini aisə/ noun an ISA in
mini ISA
been trusted to look after it
miscalculate /misklkjυleit/ verb to
miscalculate
which either up to £4000 can be invested in |
stocks and shares, or up to £3000 cash can calculate wrongly, or to make a mistake in
be invested, in a given year. 쒁 maxi ISA calculating something 쑗 The salesman mis-
minimisation /minimaizeiʃ(ə)n/ noun
minimisation
|
calculated the discount, so we hardly broke
making as small as possible even on the deal.
miscalculation /misklkjυleiʃ(ə)n/
miscalculation
minimum /miniməm/ noun the smallest

minimum
| |
possible quantity, price or number 쑗 to keep noun a mistake in calculating

expenses to a minimum 쑗 to reduce the risk miscount noun /miskaυnt/ a mistake in
miscount
of a loss to a minimum (NOTE: The plural is counting 쐽 verb /miskaυnt/ to count|
minima or minimums.) 쐽 adjective small- wrongly, or to make a mistake in counting

est possible something
minimum cash balance /miniməm mismanage /mismnid / verb to man-
minimum cash balance mismanage
kʃ bləns/ noun a reserve cash fund age something badly 쑗 The company had
held to offset unexpected cash shortages been badly mismanaged under the previous
minimum lending rate /miniməm
minimum lending rate
MD.
lendiŋ reit/ noun the lowest rate of interest mismanagement /mismnid mənt/
mismanagement
formerly charged by the Bank of England to noun bad management 쑗 The company
discount houses, now replaced by the base failed because of the chairman’s misman-
rate agement.
minimum reserves /miniməm ri misrepresent /misreprizent/ verb to
minimum reserves misrepresent
| |
zvz/ plural noun the smallest amount of report facts or what someone says wrongly
reserves which a commercial bank must 쑗 Our spokesman was totally misrepre-
hold with a central bank sented in the Sunday papers.
minimum wage /miniməm weid /
minimum wage
misrepresentation /misreprizen
misrepresentation
| |
noun the lowest hourly wage which a com- teiʃ(ə)n/ noun the act of making a wrong
pany can legally pay its employees statement in order to persuade someone to
minority interest /mainɒrəti intrəst/
minority interest
|
enter into a contract such as one for buying
noun the nominal value of those shares in a a product or service
subsidiary company that are held by mem- misuse noun /misjus/ the act of using
misuse
bers other than the parent company or its something, e.g. invested money, for a wrong
nominees purpose 쑗 the misuse of funds or of assets 쐽
minority shareholder /mainɒrəti
minority shareholder
|
verb /misjuz/ 왍 to misuse funds to use
|
ʃeəhəυldə/ noun a person who owns a funds in a wrong way (especially funds
group of shares but less than half of the which do not belong to you)
shares in a company mixed /mikst/ adjective 1. made up of dif-
mixed
minority shareholding /mainɒrəti

minority shareholding
|
ferent sorts or of different types of things
ʃeəhəυldiŋ/ noun a group of shares which together 2. neither good nor bad
are less than half the total 쑗 He acquired a ‘…prices closed on a mixed note after a
minority shareholding in the company. moderately active trading session’ [Finan-
minus /mainəs/ preposition, adverb less,
minus
cial Times]
without 쑗 Net salary is gross salary minus mixed economy /mikst ikɒnəmi/
mixed economy
tax and National Insurance deductions. 쑗 noun a system which contains both national-
Gross profit is sales minus production costs. ised industries and private enterprise
minus factor /mainəs fktə/ noun a modified accounts /mɒdifaid ə
minus factor modified accounts
factor that is unfavourable in some way, e.g. kaυnts/ plural noun 쏡 abbreviated
because it reduces profitability 쑗 To have accounts
lost sales in the best quarter of the year is a monetarism /mnitəriz(ə)m/ noun a
monetarism
minus factor for the sales team. theory that the amount of money in the econ-
MIS abbreviation management information
MIS
omy affects the level of prices, so that infla-

system tion can be controlled by regulating money
misappropriate /misəprəυprieit/ verb
misappropriate
|
supply
monetarist /mnitərist/ noun a person
monetarist
to use illegally money which is not yours,

but with which you have been trusted who believes in monetarism and acts

145 monthly
accordingly 쐽 adjective according to mone- money lying idle /mni laiiŋ aid(ə)l/
money lying idle
tarism 쑗 monetarist theories noun money which is not being used to pro-
monetary /mnit(ə)ri/ adjective refer-
monetary
duce interest, which is not invested in busi-
ring to money or currency ness
money-making /mni meikiŋ/ adjec-
money-making
‘…the decision by the government to

tighten monetary policy will push the tive able to turn over a profit 쑗 a money-
annual inflation rate above the year’s pre- making plan
vious high’ [Financial Times] money market fund /mni mɑkit
money market fund
‘…it is not surprising that the Fed started fnd/ noun an investment fund, which only
to ease monetary policy some months ago’ invests in money market instruments
[Sunday Times] money market instruments /mni
money market instruments
‘…a draft report on changes in the interna- mɑkit instrυmənts/ plural noun short-
tional monetary system’ [Wall Street Jour- term investments which can be easily turned
nal] into cash and are traded on the money mar-
monetary assets /mnit(ə)ri sets/
monetary assets
kets, e.g. CDs

plural noun assets, principally accounts money on call /mni ɒn kɔl/ noun
money on call
receivable, cash and bank balances, that are same as call money
realisable at the amount stated in the money order /mni ɔdə/ noun a docu-
money order
accounts. Other assets, e.g., facilities and ment which can be bought as a way of send-
machinery, inventories, and marketable ing money through the post
securities will not necessarily realise the money rates /mni reits/ plural noun
money rates
sum stated in a business’s balance sheet. rates of interest for borrowers or lenders
monetary items /mnit(ə)ri aitəmz/
monetary items
money supply /mni səplai/ noun the

money supply
plural noun monetary assets such as cash or amount of money in a country’s economy,
debtors, and monetary liabilities such as an consisting mainly of the money in circula-
overdraft or creditors, whose values stay the tion and that held in savings and cheque
same in spite of inflation accounts
monetary standard /mnit(ə)ri
monetary standard
monies /mniz/ plural noun sums of

monies
stndəd/ noun a fixed exchange rate for a money 쑗 monies owing to the company 쑗 to
currency collect monies due
monetary targets /mnit(ə)ri tɑits/
monetary targets
monopoly /mənɒpəli/ noun a situation

monopoly
plural noun figures which are given as tar- where one person or company is the only
gets by the government when setting out its supplier of a particular product or service 쑗
budget for the forthcoming year, e.g. the to be in a monopoly situation 쑗 The com-
money supply or the PSBR pany has the monopoly of imports of Brazil-
monetary unit /mnit(ə)ri junit/
monetary unit
ian wine. 쑗 The factory has the absolute

noun a main item of currency of a country monopoly of jobs in the town.
money /mni/ noun coins and notes used
money
Monte Carlo method /mɒnti kɑləυ

Monte Carlo method
for buying and selling 왍 money up front meθəd/ noun a statistical analysis tech-
payment in advance 쑗 They are asking for nique for calculating an unknown quantity
£10,000 up front before they will consider which has an exact value by using an
the deal. 쑗 He had to put money up front extended series of random trials (NOTE: The
before he could clinch the deal. name refers to the fact that a roulette wheel
money at call /mni ət kɔl/ noun same
money at call
in a casino, as in Monte Carlo, continually

as call money generates random numbers.)
money at call and short notice
money at call and short notice
month /mnθ/ noun one of twelve periods

month
/mni ət kɔl ən ʃɔt nəυtis/ noun in the which make a year 쑗 bills due at the end of
United Kingdom, balances in an account the current month 쑗 The company pays him
that are either available upon demand (call) £1600 a month. 쑗 She earns£2,000 a month.
or within 14 days (short notice) month end /mnθ end/ noun the end of
month end
money broker /mni brəυkə/ noun a

money broker
a calendar month, when accounts have to be

dealer operating in the interbank and foreign drawn up 쑗 The accounts department are
exchange markets working on the month-end accounts.
money laundering /mni lɔndəriŋ/
money laundering
monthly /mnθli/ adjective happening

monthly
noun the act of passing illegal money into every month or which is received every
the banking system month 쑗 We get a monthly statement from
moneylender /mnilendə/ noun a per- the bank. 쑗 She makes monthly payments to
moneylender
son who lends money at interest the credit card company. 쑗 He is paying for

moonlight 146
his car by monthly instalments. 쑗 My movable /muvəb(ə)l/, moveable adjec-
movable
monthly salary cheque is late. 왍 monthly tive possible to move 쑗 All the movable
statement a statement sent to a customer at property has been seized by the bailiffs.
the end of each month, itemising transac- movable
movable property
property /muvəb(ə)l
tions which have taken place in his or her prɒpəti/ noun chattels and other objects
account 쐽 adverb every month 쑗 She asked which can be moved, as opposed to land
if she could pay monthly by direct debit. 쑗 movables /muvəb(ə)lz/, moveables
movables
The account is credited monthly. plural noun movable property

moonlight /munlait/ verb to do a second
moonlight
moving average /muviŋ v(ə)rid /

moving average
job for cash, often in the evening, as well as noun an average of share prices on a stock
a regular job (informal) market, where the calculation is made over a
moral hazard /mɒrəl hzəd/ noun a
moral hazard
period which moves forward regularly

risk that someone will behave immorally MPP abbreviation maternity pay period
MPP
because insurance, the law or some other MRP abbreviation material requirement
MRP
agency protects them against loss that the planning

immoral behaviour might otherwise cause multi- /mlti/ prefix referring to many
multi-
moratorium /mɒrətɔriəm/ noun a tem-

moratorium
|
things or many of one thing
porary stop to repayments of interest on multicurrency /mltikrənsi/ adjec-
multicurrency
loans or capital owed 쑗 The banks called for tive in several currencies
a moratorium on payments. (NOTE: The plu-
multifunctional card
multifunctional card
ral is moratoria or moratoriums.)

/mltifnkʃən(ə)l kɑd/ noun a plastic
mortality tables /mɔtləti teib(ə)lz/
mortality tables
|
card that may be used for two or more pur-
plural noun same as actuarial tables poses, e.g., as a cash card, a cheque card and
mortgage /mɔid / noun a legal agree-
mortgage
a debit card
ment where someone lends money to multilateral /mltilt(ə)rəl/ adjective
multilateral
another person so that he or she can buy a between several organisations or countries
property, the property being the security 쑗 쑗 a multilateral agreement
to take out a mortgage on a house multilateral netting /mltilt(ə)rəl
multilateral netting
‘…mortgage payments account for just 20 netiŋ/ noun a method of putting together
per cent of the average first-time buyer’s sums from various sources into one cur-
gross earnings against an average of 24 per rency, used by groups of banks trading in
cent during the past 15 years’ [Times] several currencies at the same time
‘…mortgage money is becoming tighter. multimillion /mltimiljən/ adjective
multimillion
Applications for mortgages are running at referring to several million pounds or dollars
a high level and some building societies 쑗 They signed a multimillion pound deal.
are introducing quotas’ [Times]
multimillionaire /mltimiljəneə/ noun
multimillionaire
‘…for the first time since mortgage rates a person who owns property or investments
began falling a financial institution has worth several million pounds or dollars
raised charges on homeowner loans’
multiple exchange rate /mltip(ə)l
multiple exchange rate
[Globe and Mail (Toronto)]

ikstʃeind reit/ noun a two-tier rate of
|
mortgage bond /mɔid bɒnd/ noun a

mortgage bond
exchange used in certain countries where the

certificate showing that a mortgage exists more advantageous rate may be for tourists
and that property is security for it or for businesses proposing to build a fac-
mortgage debenture /mɔid di
mortgage debenture
|
tory
bentʃə/ noun a debenture where the lender multiple ownership
multiple ownership
/mltip(ə)l
can be repaid by selling the company’s prop- əυnəʃip/ noun a situation where something
erty is owned by several parties jointly
mortgagee /mɔəd i/ noun a person or
mortgagee
multiplication sign /mltiplikeiʃ(ə)n

multiplication sign
|
|
company which lends money for someone to sain/ noun a sign (x) used to show that a
buy a property number is being multiplied by another
mortgage famine /mɔid fmin/
mortgage famine
multiplier /mltiplaiə/ noun 1. a number

multiplier
noun a situation where there is not enough which multiplies another, or a factor which
money available to offer mortgages to house tends to multiply something, as the effect of
buyers new expenditure on total income and
mortgager /mɔid ə/, mortgagor
mortgager
reserves 2. same as uniform business rate
noun a person who borrows money to buy a multiply /mltiplai/ verb 1. to calculate
multiply
property the sum of various numbers added together

147 mutual fund

a particular number of times 쑗 If you multi- (NOTE: The UK term is local authority
ply twelve by three you get thirty-six. 쑗 bond.)
Square measurements are calculated by mutual
mutual /mjutʃuəl/ adjective owned by

multiplying length by width. 2. to grow or to
increase 쑗 Profits multiplied in the boom members, not by shareholders 쐽 noun any
years. commercial organisation that is owned by its
municipal bond /mjunisip(ə)l bɒnd/
municipal bond
|
members, rather than by shareholders
mutual fund
noun US a bond issued by a town or district mutual fund /mjutʃuəl fnd/ noun US
same as unit trust

N
naked /neikid/ adjective used for describ- unemployment benefits, etc. Abbreviation
naked
ing investment that is not protected from NIC

risks inherent in a particular position or mar- National
National Insurance number
Insurance number
ket /nʃ(ə)nəl inʃυərəns nmbə/ noun a
|
named /neimd/ adjective 왍 the person number given to each British citizen, which
named
named in the policy the person whose name is the number by which he or she is known
is given on an insurance policy as the person to the social security services
insured National Savings and Investments
National Savings and Investments
NAO abbreviation National Audit Office

NAO
/nʃ(ə)nəl seiviŋz ənd investmənts/ |
narration
narration
/nəreiʃ(ə)n/, narrative
|
noun a part of the Exchequer, a savings
/nrətiv/ noun a series of notes and expla- scheme for small investors including sav-
nations relating to transactions in the ings certificates and premium bonds. Abbre-
accounts viation NS&I
National Savings Bank /nʃ(ə)nəl
National Savings Bank
national /nʃ(ə)nəl/ adjective referring

national
to the whole of a particular country seiviŋz bŋk/ noun in the United King-
National Audit Office /nʃ(ə)nəl
National Audit Office
dom, a savings scheme established in 1861
ɔdit ɒfis/ noun a body which investigates as the Post Office Savings Bank and now
the use of public money by central govern- operated by National Savings and Invest-
ment departments. It acts on behalf of the ments. Abbreviation NSB
National Savings certificates
National Savings certificates
Parliamentary Public Accounts Committee.

Abbreviation NAO /nʃ(ə)nəl seiviŋz sətifikəts/ plural |
national bank /nʃ(ə)nəl bŋk/ noun

national bank
noun certificates showing that someone has
in the US, a bank which is chartered by the invested in National Savings and Invest-
federal government and is part of the Federal ments. The NS&I issues certificates with
Reserve system. Compare state bank stated interest rates and stated maturity
national income /nʃ(ə)nəl inkm/
national income
dates, usually five or ten years.
National Savings Stock Register
National Savings Stock Register
noun the value of income from the sales of

goods and services in a country /nʃ(ə)nəl seiviŋz stɒk red istə/ noun
national income
national income accounts
accounts an organisation, run by National Savings

/nʃ(ə)nəl inkm əkaυnts/ plural noun |
and Investments, which gives private indi-
economic statistics that show the state of a viduals the opportunity to buy British gov-
nation’s economy over a given period of ernment stocks by post without going
time, usually a year. 쒁 gross domestic through a stockbroker
NAV abbreviation net asset value
NAV
product, gross national product

NBV abbreviation net book value
NBV
National Insurance /nʃ(ə)nəl in

National Insurance
negative carry /neətiv kri/ noun a

negative carry
ʃυərəns/ noun state insurance in the United

Kingdom, organised by the government, deal where the cost of finance is more than
which pays for medical care, hospitals, the return on the capital used
unemployment benefits, etc. Abbreviation negative cash flow /neətiv kʃ
negative cash flow
NI fləυ/ noun a situation where more money is

National Insurance contribution
National Insurance contribution
going out of a company than is coming in
/nʃ(ə)nəl inʃυərəns kɒntribjuʃ(ə)n/ negative confirmation /neətiv
negative confirmation
| |
noun a proportion of income paid each kɒnfəmeiʃən/ noun an auditor’s request

|
month by an employee and the employee’s to have financial information confirmed as

company to the National Insurance scheme, accurate, to which a reply need only be sent
which pays for medical care, hospitals, in the case of a discrepancy

149 net present value

negative equity /neətiv ekwiti/ noun
negative equity
net assets /net sets/ plural noun the

net assets
a situation where a house bought with a amount by which the value of a company’s
mortgage becomes less valuable than the assets is greater than its liabilities
money borrowed to buy it because of falling net asset value /net set vlju/
net asset value
house prices noun the total value of a company after

negative goodwill /neətiv υdwil/
negative goodwill
| deducting the money owed by it (it is the

noun the position of a company that has value of shareholders’ capital plus reserves
assets with a market value that is greater and any money retained from profits).
than the price the company paid for them Abbreviation NAV. Also called net worth
negative yield curve /neətiv jild
negative yield curve
net asset value per share /net set
net asset value per share
kv/ noun a situation where the yield on a vlju pə ʃeə/ noun the value of a com-
long-term investment is less than that on a pany calculated by dividing the sharehold-
short-term investment ers’ funds by the number of shares issued
negligence /nelid əns/ noun a lack of
negligence
net book value /net bυk vlju/ noun
net book value
proper care or failure to carry out a duty the historical cost of an asset less any accu-
(with the result that a person or property is mulated depreciation or other provision for
harmed) diminution in value, e.g., reduction to net
negotiable instrument /niəυʃiəb(ə)l
negotiable instrument
|
realisable value, or asset value which has
instrυmənt/ noun a document which can been revalued downwards to reflect market
be exchanged for cash, e.g. a bill of conditions. Abbreviation NBV. Also called
exchange or a cheque written-down value
negotiable
negotiable paper
paper /niəυʃiəb(ə)l net borrowings /net bɒrəυiŋz/ plural

net borrowings
noun a company’s borrowings, less any cash

|
peipə/ noun a document which can be the company is holding in its bank accounts
transferred from one owner to another for
net cash flow /net kʃ fləυ/ noun the
net cash flow
cash
difference between the money coming in
negotiate /niəυʃieit/ verb 1. 왍 to nego-
negotiate
|
and the money going out of a firm
tiate terms and conditions or a contract to
net cash inflow /net kʃ infləυ/ noun
net cash inflow
discuss and agree the terms of a contract 왍

he negotiated a £250,000 loan with the a situation in which cash receipts exceed
bank he came to an agreement with the bank cash payments
for a loan of £250,000 2. to transfer financial net current assets /net krənt
net current assets
instruments, e.g. bearer securities, bills of sets/ plural noun the current assets of a
exchange, cheques and promissory notes, to company, i.e. cash and stocks, less any lia-
another person in return for a consideration bilities. Also called net working capital
negotiation /niəυʃieiʃ(ə)n/ noun the
negotiation
| |
net current liabilities /net krənt
net current liabilities
discussion of terms and conditions in order laiəbilitiz/ plural noun current liabilities
|
to reach an agreement 왍 to enter into or to of a company less its current assets

start negotiations to start discussing a net dividend per share /net dividend
net dividend per share
problem pə ʃeə/ noun the dividend per share after

‘…after three days of tough negotiations, deduction of personal income tax
the company reached agreement with its net income /net inkm/ noun a person’s
net income
1,200 unionized workers’ [Toronto Star] or organisation’s income which is left after
nest egg /nest e/ noun money which
nest egg taking away tax and other deductions
someone has saved over a period of time, net interest /net intrəst/ noun a figure
net interest
usually kept in an interest-bearing account equal to gross interest minus tax paid on it
and intended for use after retirement net liquid funds /net likwid fndz/
net liquid funds
net /net/ adjective referring to a price,

net
plural noun an organisation’s cash plus its
weight, pay, etc., after all deductions have marketable investments less its short-term
been made 쐽 verb to make a true profit 쑗 to borrowings, such as overdrafts and loans
net a profit of £10,000 (NOTE: netting – net- net loss /net lɒs/ noun an actual loss,
net loss
ted) after deducting overheads

‘…out of its earnings a company will pay net margin /net mɑd in/ noun the per-
net margin
a dividend. When shareholders receive centage difference between received price

this it will be net, that is it will have had tax and all costs, including overheads
deducted at 30 per cent’ [Investors Chron- net present value /net prezənt
net present value
icle] vlju/ noun the present value of the

expected cash flows minus the cost of a project. Abbreviation NPV

net price 150

net price /net prais/ noun the price of owes 쑗 The upmarket product is targeted at
net price
goods or services which cannot be reduced individuals of high net worth.

by a discount net yield /net jild/ noun the profit from
net yield
net price method /net prais meθəd/

net price method
investments after deduction of tax

noun an approach that records the cost of new issue /nju iʃu/ noun an issue of
new issue
purchases after discounts have been new shares to raise finance for a company
deducted new issues department /nju iʃuz
new issues department
net proceeds /net prəυsidz/ plural

net proceeds
dipɑtmənt/ noun the section of a bank

|
noun a figure equal to the amount realised which deals with issues of new shares
from a transaction minus the cost of making NI abbreviation National Insurance
NI
the transaction
NIC abbreviation National Insurance contri-
NIC
net profit /net prɒfit/ noun the amount

net profit
bution
by which income from sales is larger than all
NIF abbreviation note issuance facility
NIF
expenditure. Also called profit after tax

night safe /nait seif/ noun a safe in the
night safe
net profit ratio /net prɒfit reiʃiəυ/

net profit ratio
noun the ratio of an organisation’s net profit outside wall of a bank, where money and
to its total net sales. Comparing the net profit documents can be deposited at night, using a
ratios of companies in the same sector shows special door
nil /nil/ noun zero or nothing 쑗 The adver-
nil
which are the most efficient.

net realisable value /net riəlaizəb(ə)l
net realisable value
tising budget has been cut to nil.
nil paid shares /nil peid ʃeəz/ plural
nil paid shares
vlju/ noun the price at which goods in

stock could be sold, less any costs incurred noun new shares which have not yet been
in making the sale. Abbreviation NRV paid for
nil return /nil ritn/ noun a report
nil return
net receipts /net risits/ plural noun

net receipts
|
|
receipts after deducting commission, tax, showing no sales, income, tax, etc.
discounts, etc. no-claims bonus /nəυ kleimz
no-claims bonus
net relevant earnings /net reləv(ə)nt

net relevant earnings
bəυnəs/ noun 1. a reduction of premiums
niŋz/ plural noun earnings which qualify on an insurance policy because no claims
for calculating pension contributions and have been made 2. a lower premium paid
against which relief against tax can be because no claims have been made against
claimed. Such earnings can be income from the insurance policy
employment which is not pensionable, prof- nominal /nɒmin(ə)l/ adjective (of a pay-
nominal
its of a self-employed sole trader, etc. ment) very small 쑗 They are paying a nom-
net residual value /net rizidjuəl
net residual value
| inal rent. 쑗 The employment agency makes

vlju/ noun the anticipated proceeds of an a nominal charge for its services.
asset at the end of its useful life, less the nominal account /nɒmin(ə)l əkaυnt/
nominal account
costs of selling it, e.g., transport and com- noun an account for recording transactions
mission. It is used when calculating the relating to a particular type of expense or
annual charge for the straight-line method of receipt
depreciation. Abbreviation NRV nominal capital /nɒmin(ə)l kpit(ə)l/
nominal capital
net return /net ritn/ noun a return on

net return
|
noun the total of the face value of all the
an investment after tax has been paid shares which a company is authorised to
net salary /net sləri/ noun the salary
net salary
issue
which is left after deducting tax and nominal interest rate /nɒmin(ə)l
nominal interest rate
National Insurance contributions intrəst reit/ noun an interest rate

net sales /net seilz/ plural noun the total expressed as a percentage of the face value
net sales
amount of sales less damaged or returned of a bond, not on its market value
items and discounts to retailers nominal ledger /nɒmin(ə)l led ə/
nominal ledger
net turnover /net tnəυvə/ noun turn- noun a book which records a company’s
net turnover
over before VAT and after trade discounts transactions in the various accounts
have been deducted nominal share capital /nɒmin(ə)l ʃeə
nominal share capital
net working capital /net wkiŋ kpit(ə)l/ noun the total of the face value
net working capital
kpit(ə)l/ noun same as net current of all the shares which a company is author-
assets ised to issue according to its memorandum
net worth /net wθ/ noun the value of
net worth
of association
nominal value /nɒmin(ə)l vlju/
nominal value
all the property of a person or company after

taking away what the person or company noun same as face value

151 normalise
nominee /nɒmini/ noun a person who is non-profit-making organisation
nominee non-profit-making organisation
nominated, especially someone who is /nɒn prɒfitmeikiŋ ɔənaizeiʃən/ |
appointed to deal with financial matters on noun an organisation which is not allowed
your behalf by law to make a profit 쑗 Non-profit-making
nominee account /nɒmini əkaυnt/
nominee account
| |
organisations are exempted from tax. (NOTE:
noun an account held on behalf of someone Non-profit-making organisations include
non-acceptance /nɒn əkseptəns/
non-acceptance
|
charities, professional associations, trade
noun a situation in which the person who is unions, and religious, arts, community,
to pay a bill of exchange does not accept it research, and campaigning bodies. The US
term is nonprofit organization.)
noncash items /nɒn kʃ aitəmz/ plu-
noncash items
non-recurring items /nɒn rikriŋ

non-recurring items
ral noun cheques, drafts and similar items |
which are not in the form of cash aitəmz/ plural noun items in an income
statement that are unusual in nature or do not
noncontrollable cost
noncontrollable cost
occur regularly
/nɒnkəntrəυləb(ə)l kɒst/ noun a business
non-refundable /nɒn rifndəb(ə)l/
non-refundable
cost that the management team cannot influ- |
ence, e.g. the level of rent payable on build- adjective not refunded in normal circum-
ings occupied stances 쑗 You will be asked to make a non-
non-coterminous
non-coterminous period ends
period ends refundable deposit.

non-resident /nɒn rezid(ə)nt/ noun,
non-resident
/nɒnkəυtminəs piəriəd endz/ noun a

point at which separate and related accounts adjective a person who is not considered a
cease to cover different accounting periods resident of a country for tax purposes 쑗 He
and begin to run coterminously has a non-resident bank account.
non-sufficient funds /nɒn səfiʃənt
non-sufficient funds
non-cumulative preference share

non-cumulative preference share
|
/nɒn kjumjυlətiv pref(ə)rəns ʃeə/ fndz/ noun US a lack of enough money in

noun a preference share where, if the divi- a bank account to pay a cheque drawn on
dend is not paid in the current year, it is lost that account. Abbreviation NSF. Also called
non-current assets /nɒn krənt
non-current assets
insufficient funds, not sufficient funds
non-tariff barriers /nɒn trif briəz/
non-tariff barriers
sets/ plural noun 쏡 fixed assets

non-executive director /nɒn i
non-executive director
|
plural noun barriers to international trade
zekjυtiv dairektə/ noun a director who
|
other than tariffs. They include over-compli-
attends board meetings and gives advice, but cated documentation, verification of goods
does not work full-time for the company. for health and safety reasons and blocked
Also called outside director deposits payable by importers to obtain for-
non-historic /nɒn histɒrik/ adjective
non-historic
|
eign currency. Abbreviation NTBs
non-taxable /nɒn tksəb(ə)l/ adjective
non-taxable
not calculated on a historical cost basis

non-monetary /nɒn mnit(ə)ri/ adjec-
non-monetary not subject to tax 쑗 non-taxable income 쑗
tive used for describing items or assets that Lottery prizes are non-taxable.
non-trade creditor /nɒn treid
non-trade creditor
are not money and can be valued at a higher

value than their original purchase price kreditə/ noun a creditor who is not owed
non-negotiable instrument /nɒn ni
non-negotiable instrument
|
money in the normal trade of a business, e.g.
əυʃəb(ə)l instrυmənt/ noun a document a debenture holder or the Inland Revenue
non-voting shares /nɒn vəυtiŋ ʃeəz/
non-voting shares
which cannot be exchanged for cash, e.g. a

crossed cheque plural noun shares which do not allow the
non-performing loan /nɒn pfɔmiŋ
non-performing loan
|
shareholder to vote at meetings. 쒁 A shares
normal absorption costing /nɔm(ə)l
normal absorption costing
ləυn/ noun US a loan where the borrower is

not likely to pay any interest nor to repay the əbzɔpʃən kɒstiŋ/ noun a method of
|
principal, as in the case of loans to Third product costing that averages out fluctua-
World countries by western banks tions in overhead costs
normal costs /nɔm(ə)l kɒsts/ plural
normal costs
nonproductive capacity /nɒnprə

nonproductive capacity
dktiv kəpsiti/ noun capacity that pro-

| noun annual product costs averaged out to
duces no net production, e.g. because pro- give a monthly figure, as distinct from a
duction needs to be repeated owing to monthly figure that records seasonal fluctu-
defects in earlier products ations in costs
nonprofit accounting /nɒnprɒfit ə normalise /nɔməlaiz/, normalize verb
nonprofit accounting normalise
| |
kaυntiŋ/ noun the accounting policies and to store and represent numbers in a pre-
methods employed by nonprofit organisa- agreed form, usually to provide maximum
tions such as charities precision

normal loss 152

normal loss /nɔm(ə)l lɒs/ noun loss
normal loss
notional income /nəυʃ(ə)n(ə)l inkm/

notional income
which is usual in the type of business being noun an invisible benefit which is not
carried on, e.g. the loss of small quantities of money or goods and services
materials during the manufacturing process notional rent /nəυʃ(ə)n(ə)l rent/ noun
notional rent
normal spoilage /nɔm(ə)l spɔilid /

normal spoilage
a sum put into accounts as rent where the
noun the deterioration of products that will company owns the building it is occupying
always take place, even under the best oper- and so does not pay an actual rent
ating conditions not negotiable /nɒt niəυʃiəb(ə)l/
not negotiable
notary public /nəυtəri pblik/ noun a

notary public
phrase used for referring to a cheque that
lawyer who has the authority to witness doc- must be deposited in an account and cannot
uments and spoken statements, making therefore be immediately exchanged for
them official (NOTE: The plural is notaries cash. 쒁 crossed cheque, negotiable
public.) instrument
note /nəυt/ noun 1. 쑗 to send someone a
note
novation /nəυveiʃ(ə)n/ noun an agree-
novation
note 쑗 I left a note on her desk. 왍 notes to ment to change a contract by substituting a
the accounts notes attached to a company’s third party for one of the two original parties
accounts by the auditors to explain items in NPV abbreviation net present value
NPV
NRV abbreviation 1. net realisable value 2.

NRV
the accounts or to explain the principles of

accounting used 2. paper showing that net residual value
money has been borrowed NS&I abbreviation National Savings and
NS&I
note issuance facility /nəυt iʃuəns fə

note issuance facility
|
Investments
siliti/ noun a credit facility where a com- NSB abbreviation National Savings Bank
NSB
pany obtains a loan underwritten by banks NSF abbreviation not sufficient funds or
NSF
and can issue a series of short-term Eurocur- non-sufficient funds

rency notes to replace others which have NTBs abbreviation non-tariff barriers
NTBs
expired. Abbreviation NIF number /nmbə/ noun 1. a quantity of

number
note of hand /nəυt əv hnd/ noun a things or people 쑗 The number of persons
note of hand
document stating that someone promises to on the payroll has increased over the last
pay an amount of money on an agreed date year. 쑗 The number of days lost through
note payable /nəυt peiəb(ə)l/ noun a
note payable
strikes has fallen. 2. a printed or written fig-
document that gives a guarantee to pay ure that identifies a particular thing 쑗 Please
money at a future date write your account number on the back of
the cheque. 쑗 If you have a complaint to
note receivable /nəυt risivəb(ə)l/
note receivable
|
make, always quote the batch number. 쑗 She
noun a document that gives a guarantee to
noted the cheque number in the ledger. 쐽
receive money at a future date verb to put a figure on a document 쑗 to
notice of coding /nəυtis əv kɒdiŋ/
notice of coding
number an order 쑗 I refer to your invoice

noun an official notice from a tax authority numbered 1234.
of someone’s tax code, which indicates the numbered account /nmbəd əkaυnt/
numbered account
level of tax allowance he or she is entitled to noun a bank account, usually in Switzer-
receive land, which is referred to only by a number,
notice of default /nəυtis əv difɔlt/
notice of default
|
the name of the person holding it being kept
noun US same as default notice secret
notional /nəυʃ(ə)n(ə)l/ adjective proba- numeral /njum(ə)rəl/ noun a character
notional numeral
ble but not known exactly or not quantifiable or symbol which represents a number

O
O & M abbreviation organisation and meth- give the staff four days off at Christmas. 쐽
O & M
ods adverb 1. taken away from a price 쑗 We give

OAP abbreviation old age pensioner
OAP
5% off for quick settlement. 2. lower than a
objectivity /ɒbd ektiviti/ noun the fact
objectivity
previous price 쑗 The shares closed 2% off. 쐽
preposition 1. subtracted from 쑗 to take £25
|
that an accounting item can be verified by

supporting evidence, e.g. by a voucher of off the price 쑗 We give 10% off our usual
some kind prices. 2. not included 왍 items off balance
sheet or off balance sheet assets financial
obligation /ɒblieiʃ(ə)n/ noun 1. a duty
obligation
|
items which do not appear in a company’s
to do something 쑗 There is no obligation to balance sheet as assets, such as equipment
help out in another department 쑗 There is acquired under an operating lease
no obligation to buy. 왍 to fulfil your con-
tractual obligations to do what is stated in ‘…its stock closed Monday at $21.875 a
a contract 2. a debt 왍 to meet your obliga- share in NYSE composite trading, off 56%
tions to pay your debts from its high last July’ [Wall Street Jour-
nal]
obsolescence /ɒbsəles(ə)ns/ noun the
obsolescence
| off-balance sheet asset
process of a product going out of date off-balance sheet asset /ɒf bləns
because of progress in design or technology, ʃit set/ noun an item that is a valuable
and therefore becoming less useful or valua- resource but does not feature on the balance
ble sheet, e.g. an expected rebate of some sort
off-balance-sheet financing
obsolete /ɒbsəlit/ adjective no longer

obsolete
off-balance-sheet financing /ɒf
used 쑗 Computer technology changes so bləns ʃit fainnsiŋ/ noun a way of
fast that hardware soon becomes obsolete. raising finance through a long-term lease
occupational
occupational pension
pension that does not qualify as a capital lease and

/ɒkjυpeiʃ(ə)nəl penʃə/ noun a pension
therefore does not appear on the balance
which is paid by the company by which an sheet
off-balance sheet liability
employee has been employed off-balance sheet liability /ɒf bləns

occupational pension
occupational pension scheme
scheme ʃit laiəbiliti/ noun a potential liability that

|
/ɒkjυpeiʃ(ə)nəl penʃən skim/ noun a does not feature on the balance sheet
offer
pension scheme where the employee gets a offer /ɒfə/ noun 1. a statement that you are
pension from a fund set up by the company willing to give or do something, especially
he or she has worked for, which is related to to pay a specific amount of money to buy
the salary he or she was earning. Also called something 쑗 to make an offer for a company
company pension scheme 쑗 We made an offer of £10 a share. 왍 or
occupier /ɒkjυpaiə/ noun a person who
occupier
near offer US, or best offer or an offer of a
lives in a property price which is slightly less than the price
O/D abbreviation overdraft
O/D asked 쑗 The car is for sale at £2,000 or near
offer. 2. a statement that you are willing to
odd lot /ɒd lɒt/ noun 1. a group of mis-
odd lot
sell something 3. a statement that you are

cellaneous items for sale at an auction 2. US willing to employ someone 왍 she received
a group of less than 100 shares of stock six offers of jobs or six job offers six com-
bought or sold together panies told her she could have a job with
OEIC /ɔik/ abbreviation open-ended invest-
OEIC
them 4. a statement that a company is pre-

ment company pared to buy another company’s shares and
off /ɒf/ adjective not working or not in oper- take the company over 쐽 verb 1. to say that
off
ation 쑗 to take three days off 쑗 The agree- you are willing to pay a specific amount of
ment is off. 쑗 They called the strike off. 쑗 We money for something 쑗 to offer someone

offer document 154

£100,000 for their house 쑗 She offered £10 hands of the official receiver. Also called
a share. 2. to say that you are willing to sell receiver
something 쑗 They are offering special official return /əfiʃ(ə)l ritn/ noun an
official return
| |
prices on winter holidays in the US 쑗 We official report

offered the house for sale. offload /ɒfləυd/ verb to pass something
offload
offer document /ɒfə dɒkjυmənt/ noun

offer document
which you do not want to someone else

a formal document where a company offers
offset /ɒfset/ verb to balance one thing
offset
to buy shares at some price as part of a take- |
over bid against another so that they cancel each

other out 쑗 to offset losses against tax 쑗
offered market /ɒfəd mɑkit/ noun a
offered market
Foreign exchange losses more than offset

market where there are more sellers than profits in the domestic market. (NOTE: off-
buyers setting – offset)
offer for sale /ɒfə fə seil/ noun a situa-
offer for sale
offset account /ɒfset əkaυnt/ noun an

offset account
tion in which a company advertises new |
shares for sale to the public as a way of account established to allow the gross
launching itself on the Stock Exchange amount of another account to be reduced
offsetting error /ɒfsetiŋ erə/ noun an
offsetting error
(NOTE: The other ways of launching a com-

pany are a ‘tender’ or a ‘placing.’) accounting error that cancels out another
offering circular /ɒf(ə)riŋ skjυlə/
offering circular
error
offshore /ɒfʃɔ/ adjective, adverb 1. on
offshore
noun a document which gives information

about a company whose shares are being an island or in the sea near to land 쑗 an off-
sold to the public for the first time shore oil field 쑗 an offshore oil platform 2.
offeror /ɒfərə/ noun a person who makes
offeror
on an island which is a tax haven 3. based
an offer outside a country, especially in a tax haven
offshore banking /ɒfʃɔ bŋkiŋ/
offshore banking
offer period /ɒfə piəriəd/ noun a time

offer period
during which a takeover bid for a company noun banking in a tax haven
is open offshore finance subsidiary /ɒfʃɔ
offshore finance subsidiary
offer price /ɒfə prais/ noun the price at

offer price
fainns səbsidiəri/ noun a company cre-

|
which investors buy new shares or units in a ated in another country to handle financial
unit trust. The opposite, i.e. the selling price, transactions, giving the owning company
is called the ‘bid price’, the difference certain tax and legal advantages in its home
between the two is the ‘spread’. country (NOTE: The US term is offshore
Office of Fair Trading /ɒfis əv feə financial subsidiary.)
Office of Fair Trading
treidiŋ/ noun a department of the UK gov- offshore financial centre /ɒfʃɔ fai
offshore financial centre
ernment that protects consumers against nnʃəl sentə/ noun a country or other
unfair or illegal business. Abbreviation OFT political unit that has banking laws intended
Office of Management and Budget
Office of Management and Budget
to attract business from industrialised

/ɒfis əv mnid mənt ən bd it/ noun nations
US the department of the US government offshore fund /ɒfʃɔ fnd/ noun a fund
offshore fund
that prepares the federal budget. Abbrevia- that is based overseas, usually in a country
tion OMB that has less strict taxation regulations
Office of Thrift Supervision /ɒfis əv
Office of Thrift Supervision
off-the-shelf company /ɒf ðə ʃelf

off-the-shelf company
θrift supəvi (ə)n/ noun US a department

|
kmp(ə)ni/ noun a company which has
of the US government which regulates the already been registered by an accountant or
savings and loan associations. Abbreviation lawyer, and which is ready for sale to some-
OTS one who wants to set up a new company
official books of account /əfiʃ(ə)l
official books of account
|
quickly
bυks əv əkaυnt/ plural noun the official
OFT abbreviation Office of Fair Trading
| OFT
financial records of an institution

old age pension /əυld eid penʃən/
old age pension
Official List /əfiʃ(ə)l list/ noun a daily

Official List
publication by the London Stock Exchange noun a state pension given to people over
of the highest and lowest prices recorded for some age (currently to a man who is 65 or to
each share during the trading session a woman who is 60)
old age pensioner /əυld eid
old age pensioner
official receiver /əfiʃ(ə)l risivə/ noun

official receiver
| |
a government official who is appointed to penʃ(ə)nə/ noun a person who receives the
run a company which is in financial difficul- retirement pension. Abbreviation OAP
OMB abbreviation Office of Management
OMB
ties, to pay off its debts as far as possible and

to close it down 쑗 The company is in the and Budget

155 open-market value

ombudsman /ɒmbυdzmən/ noun an cial and operational information, with the
ombudsman
official who investigates complaints by the aim of giving everyone a stake in increasing
public against government departments or production
other large organisations (NOTE: The plural open cheque /əυpən tʃek/ noun same
open cheque
is ombudsmen.) as uncrossed cheque

‘…radical changes to the disciplinary sys- open credit /əυpən kredit/ noun credit
open credit
tem, including appointing an ombudsman given to good customers without security

to review cases where complainants are
open-ended /əυpən endid/ adjective
open-ended
not satisfied with the outcome, are pro-

posed in a consultative paper the Institute with no fixed limit or with some items not
of Chartered Accountants issued last specified 쑗 They signed an open-ended
month’ [Accountancy] agreement. 쑗 The candidate was offered an
on account phrase paid in part in advance
on account
open-ended contract with a good career
plan. (NOTE: The US term is open-end.)
oncosts /ɒnkɒsts/ plural noun business
oncosts
open-ended credit /əυpən endid

open-ended credit
costs that cannot be charged directly to a

particular good or service and must be kredit/ noun same as revolving credit
open-ended fund /əυpən endid fnd/
open-ended fund
apportioned across the business

on demand /ɒn dimɑnd/ adjective
on demand
|
noun a fund such as a unit trust where inves-
used to describe an account from which tors buy units, the money paid being
withdrawals may be made without giving a invested in a range of securities. This is as
period of notice opposed to a closed fund, such as an invest-
one-man business /wn mn
one-man business
ment trust, where the investor buys shares in
biznis/, one-man firm /wn mn fm/, the trust company, and receives dividends.
open-ended investment company
open-ended investment company
one-man company /wn mn

kmp(ə)ni/ noun a business run by one /əυpən endid investmənt kmp(ə)ni/
|
person alone with no staff or partners noun a form of unit trust, in which the inves-
one-off /wn ɒf/ adjective done or made
one-off
tor purchases shares at a single price, as
only once 쑗 one-off item 쑗 one-off deal 쑗 opposed to the bid-offer pricing system used
one-off payment by ordinary unit trusts. Abbreviation OEIC
open-ended management company
open-ended management company
one-sided /wn saidid/ adjective

one-sided
favouring one side and not the other in a /əυpən endid mnid mənt
negotiation kmp(ə)ni/ noun a company that sells unit
one-year money /wn jiə mni/ noun
one-year money
trusts (NOTE: The US term is open-end
money invested for one year management company.)
open-ended trust /əυpən endid
open-ended trust
open /əυpən/ adjective 1. at work, not

open
closed 쑗 The store is open on Sunday morn- trst/ noun a fund in which investors can
ings. 쑗 Our offices are open from 9 to 6. 쑗 freely buy and sell units at any time
opening balance /əυp(ə)niŋ bləns/
opening balance
They are open for business every day of the

week. 2. ready to accept something 쐽 verb 1. noun a balance at the beginning of an
to start a new business 쑗 She has opened a accounting period
shop in the High Street. 쑗 We have opened a opening balance sheet /əυp(ə)niŋ
opening balance sheet
branch in London. 2. to start work, to be at bləns ʃit/ noun an account showing an

work 쑗 The office opens at 9 a.m. 쑗 We open organisation’s opening balances
for business on Sundays. 3. to begin some- opening entry /əυp(ə)niŋ entri/ noun
opening entry
thing 4. to set something up or make some- the first entry in an account

thing available 쑗 to open a bank account 쑗
to open a line of credit 쑗 to open a loan 5. 왍 opening price /əυp(ə)niŋ prais/ noun a
opening price
shares opened lower share prices were price at the start of a day’s trading
opening stock /əυp(ə)niŋ stɒk/ noun
opening stock
lower at the beginning of the day’s trading

‘…after opening at 79.1 the index touched on a balance sheet, the closing stock at the
a peak of 79.2 and then drifted to a low of end of one accounting period that is trans-
78.8’ [Financial Times] ferred forward and becomes the opening
open account /əυpən əkaυnt/ noun an
open account
|
stock in the one that follows (NOTE: The US
account where the supplier offers the pur- term is beginning inventory.)
open market /əυpən mɑkit/ noun a
open market
chaser credit without security

open book management /əυpən bυk
open book management
market where anyone can buy or sell
open-market value /əυpən mɑkit
open-market value
mnid mənt/ noun a management

method that gives staff open access to finan- vlju/ noun the price that an asset or secu-

operate 156
rity would realise if it was offered on a mar- operating margin
operating margin
/ɒpəreitiŋ
ket open to all mɑd in/ noun a measurement of the pro-
operate /ɒpəreit/ verb to be in force 쑗
operate
portion of a company’s revenue that is left
The new terms of service will operate from over after variable costs of production have
January 1st. 쑗 The rules operate on inland been met
postal services only. operating performance
operating performance ratio
ratio
‘…the company gets valuable restaurant /ɒpəreitiŋ pəfɔməns reiʃiəυ/ noun a
|
locations which will be converted to the ratio of profitability to sales

family-style restaurant chain that it oper- operating profit /ɒpəreitiŋ prɒfit/
operating profit
ates and franchises throughout most parts noun the difference between a company’s
of the US’ [Fortune] revenues and any related costs and expenses,
operating /ɒpəreitiŋ/ noun the general
operating
not including income or expenses from any

running of a business or of a machine sources other than its normal methods of
‘…the company blamed over-capacity and providing goods or a service
competitive market conditions in Europe operating
operating revenue
revenue /ɒpəreitiŋ
for a £14m operating loss last year’ revənju/ noun the amount of income gen-
[Financial Times] erated as a result of a company’s normal
operating activities /ɒpəreitiŋ k
operating activities
| business operations
tivitiz/ plural noun those activities that a operating risk /ɒpəreitiŋ risk/ noun the
operating risk
business engages in by reason of its being risk of having a high operating leverage
the type of business it is, as opposed to non-
operating statement /ɒpəreitiŋ
operating statement
operating activities such as investment

steitmənt/ noun a financial statement
operating budget /ɒpəreitiŋ bd it/
operating budget
which shows a company’s expenditure and

noun a forecast of income and expenditure income, and consequently its final profit or
over a period of time loss 쑗 The operating statement shows unex-
operating budget sequence
operating budget sequence
pected electricity costs. 쑗 Let’s look at the

/ɒpəreitiŋ bd it sikwəns/ noun a part operating statement to find last month’s
of a master budget that records the acquisi- expenditure.
tion and use of resources operation /ɒpəreiʃ(ə)n/ noun 1. an
operation
operating costing /ɒpəreitiŋ kɒstiŋ/

operating costing
activity or a piece of work, or the task of run-

noun costing which is based on the costs of ning something 쑗 the company’s operations
services provided in West Africa 쑗 He heads up the operations
operating costs /ɒpəreitiŋ kɒsts/ plu- in Northern Europe. 2. 왍 in operation
operating costs
ral noun the costs of the day-to-day activi- working or being used 쑗 The system will be
ties of a company. Also called operating in operation by June. 쑗 The new system
expenses, running costs came into operation on January 1st.
operating cycle /ɒpəreitiŋ saik(ə)l/
operating cycle
‘…a leading manufacturer of business,

noun the time it takes for purchases of mate- industrial and commercial products
rials for production to generate revenue requires a branch manager to head up its
from sales mid-western Canada operations based in
operating expenses /ɒpəreitiŋ ik
operating expenses
|
Winnipeg’ [Globe and Mail (Toronto)]
operational /ɒpəreiʃ(ə)nəl/ adjective
operational
spensiz/ plural noun same as operating |
costs referring to the day-to-day activities of a

operating lease /ɒpəreitiŋ lis/ noun a
operating lease
business or to the way in which something is
lease which does not require the lessee com- run
operational audit /ɒpəreiʃ(ə)nəl
operational audit
pany to show the asset acquired under the

lease in its balance sheet, but the annual ɔdit/ noun a systematic review of the sys-
rental charge for such assets must be dis- tems and procedures used in an organisation
closed in a note to the accounts in order to assess whether they are being car-
operating
operating leverage
leverage /ɒpəreitiŋ ried out efficiently and effectively. Also

levərid / noun the ratio of a business’s known as management audit, operations
fixed costs to its total costs. As the fixed audit
operational budget /ɒpəreiʃ(ə)nəl
operational budget
costs have to be paid regardless of output,

the higher the ratio, the higher the risk of bd it/ noun same as operating budget
losses in an economic downturn. operational costs /ɒpəreiʃ(ə)nəl
operational costs
operating loss /ɒpəreitiŋ lɒs/ noun a kɒsts/ plural noun the costs of running a
operating loss
loss made by a company in its usual business business

157 ordinarily resident

operational gearing /ɒpəreiʃ(ə)nəl
operational gearing option trading
option trading /ɒpʃən treidiŋ/ noun

iəriŋ/ noun a situation where a company the business of buying and selling share
has high fixed costs which are funded by options
borrowings order
order /ɔdə/ noun 1. the way in which

operational planning /ɒpəreiʃ(ə)nəl
operational planning
records such as filing cards or invoices are

plniŋ/ noun the planning of how a busi- arranged 쑗 in alphabetical or numerical
ness is to be run order 2. an official request for goods to be
operational research /ɒpəreiʃ(ə)nəl ri
operational research
| supplied 쑗 to give someone an order or to

stʃ/ noun a study of a company’s way of place an order with someone for twenty fil-
working to see if it can be made more effi- ing cabinets 쑗 The management ordered the
cient and profitable workforce to leave the factory. 왍 to fill an
operations review /ɒpəreiʃ(ə)nz ri
operations review
| |
order, to fulfil an order to supply items
vju/ noun an act of examining the way in which have been ordered 쑗 We are so under-
which a company or department works to staffed we cannot fulfil any more orders
see how it can be made more efficient and before Christmas. 왍 items available to
profitable order only items which will be manufac-
operation time /ɒpəreiʃ(ə)n taim/
operation time tured only if someone orders them 왍 on
order ordered but not delivered 쑗 This item
|
noun the time taken for a business operation

to be completed is out of stock, but is on order. 3. a document
which allows money to be paid to someone
opinion /əpinjən/ noun a piece of expert
opinion
|
쑗 She sent us an order on the Chartered
advice 쑗 the lawyers gave their opinion 쑗 to Bank. 4. (Stock Exchange) an instruction to
ask an adviser for his opinion on a case a broker to buy or sell 5. 왍 pay to Mr Smith
opportunity cost /ɒpətjuniti kɒst/
opportunity cost
| or order pay money to Mr Smith or as he

noun 1. the cost of a business initiative in orders 왍 pay to the order of Mr Smith pay
terms of profits that could have been gained money directly to Mr Smith or to his account
through an alternative plan 쑗 It’s a good 쐽 verb to ask for goods to be supplied 쑗
investment plan and we will not be deterred They ordered a new Rolls Royce for the man-
by the opportunity cost. Also called alterna- aging director.
tive cost 2. the value of another method of order book
order book /ɔdə bυk/ noun a book

investment which could have been used, which records orders received
instead of the one adopted order-driven system
order-driven system /ɔdə driv(ə)n

opportunity cost approach /ɒpə
opportunity cost approach
sistəm/, order-driven market /ɔdə

tjuniti kɒst əprəυtʃ/ noun the use of the
|
driv(ə)n mɑkit/ noun a price system on a

concept of opportunity cost in business deci- stock exchange where prices vary according
sion-making to the level of orders. Compare quote-
optimal capital structure /ɒptim(ə)l
optimal capital structure
driven system
kpit(ə)l strktʃə/ noun the optimal order entry
range for a company’s capital structure order entry /ɔdə entri/ noun the proc-
ess of entering information on orders into a
optimise /ɒptimaiz/, optimize verb to
optimise
processing system
allocate such things as resources or capital order fulfilment
as efficiently as possible order fulfilment /ɔdə fυlfilmənt/ |
noun the process of supplying items which

optimum /ɒptiməm/ adjective best 쑗 The
optimum
have been ordered

market offers optimum conditions for sales. ordering costs
option /ɒpʃən/ noun the opportunity to

option ordering costs /ɔdəriŋ kɒsts/ plural
noun the total of the costs involved in mak-
buy or sell something, such as a security,
within a fixed period of time at a fixed price ing a purchase order, including telephone
왍 to take up an option or to exercise an and stationery costs
order processing
option to accept the option which has been order processing /ɔdə prəυsesiŋ/
offered and to put it into action 쑗 They exer- noun the work of dealing with orders
cised their option or they took up their order receipt time
order receipt time /ɔdə risit taim/

|
option to acquire sole marketing rights to noun the interval between the receipt of an
the product. order and the point at which it is ready to be
option contract /ɒpʃən kɒntrkt/
option contract
despatched
noun a right to buy or sell a specific number ordinarily resident
ordinarily resident /ɔd(ə)n(ə)rili

of shares at a fixed price rezid(ə)nt/ adjective normally living in a
option dealing /ɒpʃən diliŋ/ noun the country 쑗 Mr Schmidt is ordinarily resident
option dealing
activity of buying and selling share options in Canada

ordinary activities 158

ordinary activities /ɔd(ə)n(ə)ri k organisation chart /ɔənaizeiʃ(ə)n
ordinary activities organisation chart
| |
tivitiz/ plural noun the usual trading of a tʃɑt/ noun same as organisational chart
company, that is, what the company usually organisation costs /ɔənaizeiʃ(ə)n
organisation costs
does kɒsts/ plural noun the costs associated with

ordinary interest /ɔd(ə)n(ə)ri intrəst/
ordinary interest
setting up a business, e.g. legal fees and
noun annual interest calculated on the basis business filing fees
of 360 days, as opposed to ‘exact interest’ organise /ɔənaiz/, organize verb 1. to
organise
which is calculated on 365 days set up a system for doing something 쑗 The
ordinary resolution /ɔd(ə)n(ə)ri rezə
ordinary resolution
|
company is organised into six profit centres.
luʃ(ə)n/ noun a resolution put before an 쑗 The group is organised by sales areas. 2.
AGM, usually referring to some general pro- to arrange something so that it works
cedural matter, and which requires a simple ‘…we organize a rate with importers who
majority of votes to be accepted have large orders and guarantee them
ordinary share capital /ɔd(ə)n(ə)ri
ordinary share capital
space at a fixed rate so that they can plan
ʃeə kpit(ə)l/ noun the capital of a com- their costs’ [Lloyd’s List]
original cost /ərid ən(ə)l kɒst/ noun
original cost
pany in the form of money paid for ordinary |
shares the total cost of acquiring an asset

original entry /ərid ən(ə)l entri/ noun
original entry
ordinary shareholder /ɔd(ə)n(ə)ri

ordinary shareholder
|
ʃeəhəυldə/ noun a person who owns ordi- the act of recording a transaction in a journal
other capital /ðə kpit(ə)l/ noun cap-
other capital
nary shares in a company

ordinary shares /ɔd(ə)n(ə)ri ʃeəz/ plu-
ordinary shares
ital that is not listed in specific categories
other long-term capital /θə lɒŋ tm
other long-term capital
ral noun shares that entitle the holder to

receive a dividend after the dividend on pref- kpit(ə)l/ noun long-term capital that is
erence shares has been paid (NOTE: The US not listed in specific categories
other long-term liabilities /θə lɒŋ
other long-term liabilities
term is common stock.)

ordinary stock noun same as ordinary
ordinary stock
tm laiəbilitiz/ plural noun obligations
|
shares with terms greater than one year on which

there is no charge for interest in the next year
organic growth /ɔnik rəυθ/ noun
organic growth
other short-term capital /θə ʃɔt

other short-term capital
same as internal growth

tm kpit(ə)l/ noun short-term capital
organisation /ɔənaizeiʃ(ə)n/,
organisation
|
that is not listed in specific categories
organization noun 1. a way of arranging
OTS abbreviation Office of Thrift Supervi-
OTS
something so that it works efficiently 쑗 the

organisation of the head office into depart- sion
out /aυt/ adverb 왍 we are £20,000 out in
out
ments 쑗 The chairman handles the organi-

sation of the AGM. 쑗 The organisation of our calculations we have £20,000 too much
the group is too centralised to be efficient. 2. or too little
outgoings /aυtəυiŋz/ plural noun
outgoings
a group or institution which is arranged for

efficient work money which is paid out
outlay /aυtlei/ noun money spent,
outlay
‘…working with a client base which

includes many major commercial organi- expenditure
zations and nationalized industries’ outlook /aυtlυk/ noun a view of what is
outlook
[Times] going to happen in the future 쑗 The eco-

organisational /ɔənaizeiʃ(ə)n(ə)l/,
organisational
| nomic outlook is not good. 쑗 The stock mar-

organizational adjective referring to the ket outlook is worrying.
way in which something is organised 쑗 The ‘American demand has transformed the
paper gives a diagram of the company’s profit outlook for many European manu-
organisational structure. facturers’ [Duns Business Month]
out-of-date cheque /aυt əv deit tʃek/
out-of-date cheque
organisational chart
organisational chart
/ɔənai |
zeiʃ(ə)n(ə)l tʃɑt/ noun a chart that shows noun a cheque which has not been cleared
the relationships of people in an organisa- because its date is too old, normally more
tion in terms of their areas of authority and than six months
responsibility out of pocket /aυt əv pɒkit/ adjective,
out of pocket
organisation and
organisation and methods
methods adverb having paid out money personally 쑗

/ɔənaizeiʃ(ə)n ən meθədz/ noun a The deal has left me out of pocket.
process of examining how an office works, out-of-pocket expenses /aυt əv
out-of-pocket expenses
and suggesting how it can be made more pɒkit ikspensiz/ plural noun an amount
|
efficient. Abbreviation O & M of money paid back to an employee who has

159 overdue
spent his or her personal money on company absorbed overhead which ends up by being
business higher than the actual overhead incurred
output /aυtpυt/ noun the amount which a overabsorption /əυvərəbzɔpʃ(ə)n/
output overabsorption
company, person, or machine produces 쑗 noun a situation where the actual overhead
Output has increased by 10%. 쑗 25% of our incurred is less than the absorbed overhead.
output is exported. Opposite underabsorption
overall /əυvərɔl/ adjective covering or
overall
‘…crude oil output plunged during the last |
month and is likely to remain near its including everything 왍 the company
present level for the near future’ [Wall reported an overall fall in profits the com-
Street Journal] pany reported a general fall in profits
output per hour /aυtpυt pər aυə/ noun
output per hour
overall balance of payments

overall balance of payments
the amount of something produced in one /əυvərɔl bləns əv peimənts/ noun the
hour total of current and long-term balance of
output tax /aυtpυt tks/ noun VAT
output tax
payments
charged by a company on goods or services overall capitalisation rate /əυvərɔl
overall capitalisation rate
sold, and which the company pays to the kpit(ə)laizeiʃ(ə)n reit/ noun net oper-
|
government ating income, other than debt service,

outright /aυtrait/ adverb, adjective com-
outright
|
divided by value
pletely overall return /əυvərɔl ritn/ noun
overall return
outside director /aυtsaid dairektə/

outside director
|
the aggregate of all the dividends received
noun same as non-executive director over an investment’s life together with its
outsource /aυtsɔs/ verb to use a source
outsource
capital gain or loss at the date of its realisa-
outside a company or business to do the tion, calculated either before or after tax. It
work that is needed is one of the ways an investor can look at the
performance of an investment.
‘The services unit won outsourcing con-
overborrowed /əυvəbɒrəυd/ adjective
overborrowed
tracts from the Environmental Protection |
Agency and NASA, which the company referring to a company which has very high
says played a significant part in the borrowings compared to its assets, and has
increase.’ [InformationWeek] difficulty in meeting its interest payments
overcapitalised /əυvəkpitəlaizd/,
overcapitalised
outsourcing /aυtsɔsiŋ/ noun 1. the

outsourcing
|
practice of obtaining services from special- overcapitalized adjective referring to a

ist bureaux or other companies, rather than company with more capital than it needs
employing full-time staff members to pro- overcharge noun /əυvətʃɑd / a charge
overcharge
vide them 2. the transfer of work previously which is higher than it should be 쑗 to pay
done by employees of an organisation to back an overcharge 쐽 verb /əυvətʃɑd / |
another organisation, usually one that spe- to ask someone for too much money 쑗 They
cialises in that type of work (NOTE: Things overcharged us for our meals. 쑗 We asked
that have usually been outsourced in the for a refund because we’d been over-
past include legal services, transport, cater- charged.
ing, and security, but nowadays IT services, overdraft /əυvədrɑft/ noun 1. an
overdraft
training, and public relations are often amount of money which a company or per-
added to the list.) son can withdraw from a bank account, with
‘…organizations in the public and private the bank’s permission, despite the fact that
sectors are increasingly buying in special- the account is empty 쑗 The bank has
ist services – or outsourcing – allowing allowed me an overdraft of £5,000. Abbrevi-
them to cut costs and concentrate on their ation O/D (NOTE: The US term is overdraft
core business activities’ [Financial Times] protection.) 왍 we have exceeded our over-
outstanding /aυtstndiŋ/ adjective not
outstanding
| draft facilities we have taken out more than

yet paid or completed the overdraft allowed by the bank 2. a nega-
outstanding cheque /aυtstndiŋ
outstanding cheque
|
tive amount of money in an account, i.e. a
tʃek/ noun a cheque which has been writ- situation where a cheque is more than the
ten and therefore has been entered in the money in the account on which it is drawn
overdraw /əυvədrɔ/ verb to take out
overdraw
company’s ledgers, but which has not been |
presented for payment and so has not been more money from a bank account than there
debited from the company’s bank account is in it
overabsorbed overhead overdue /əυvədju/ adjective having not
overabsorbed overhead overdue
/əυvərəbzɔbd əυvəhed/ noun an been paid on time

overdue account 160

overdue account /əυvədju əkaυnt/
overdue account
| seas are far higher than those of the home

noun an account whose holder owes money division.
that should have been paid earlier overseas division /əυvəsiz di
overseas division
overestimate /əυvərestimeit/ verb to

overestimate
| vi (ə)n/ noun the section of a company

think something is larger or worse than it dealing with trade with other countries
really is 쑗 She overestimated the amount of overseas funds /əυvəsiz fndz/ plu-
overseas funds
time needed to fit out the factory. 쑗 They ral noun investment funds based in other
overestimated the costs of moving the offices countries
to central London.
overseas markets /əυvəsiz mɑkits/
overseas markets
overgeared /əυvəiəd/ adjective refer-

overgeared
|
plural noun markets in foreign countries
ring to a company which has high borrow-
overseas taxation /əυvəsiz tk
overseas taxation
ings in comparison to its assets |
overhang /əυvəhŋ/ noun a large quan-

overhang seiʃ(ə)n/ noun 쏡 double taxation, double
taxation agreement
tity of shares or of a commodity or of unsold
overseas trade /əυvəsiz treid/ noun
overseas trade
stock available for sale, which has the effect

of depressing the market price same as foreign trade
overspend /əυvəspend/ verb to spend
overspend
overhead absorption rate /əυvəhed

overhead absorption rate
|
əbzɔpʃən reit/ noun a rate at which pro-

|
too much 왍 to overspend your budget to
duction costs are increased to absorb higher spend more money than is allowed in your
overhead costs budget
overspending /əυvəspendiŋ/ noun the
overspending
overhead budget /əυvəhed bd it/

overhead budget
|
noun a plan of probable overhead costs act of spending more than is allowed 쑗 The
overhead cost variance /əυvəhed
overhead cost variance
board decided to limit the overspending by
kɒst veəriəns/ noun the difference the production departments.
between the overhead cost absorbed and the overstate /əυvəsteit/ verb to enter in an
overstate
actual overhead costs incurred, both fixed account a figure that is higher than the actual
and variable figure 쑗 the company accounts overstate the
overhead expenditure variance
overhead expenditure variance
real profit
/əυvəhed ikspenditʃə veəriəns/ noun
|
overstatement /əυvəsteitmənt/ noun
overstatement
the difference between the budgeted over- the fact of entering in an account a figure
head costs and the actual expenditure that is higher than the actual figure
overheads /əυvəhedz/ plural noun the
overheads
overstock /əυvəstɒk/ verb to have a

overstock
indirect costs of the day-to-day running of a bigger stock of something than is needed
business, i.e. not money spent of producing ‘Cash paid for your stock: any quantity,
goods, but money spent on such things as any products, overstocked lines, factory
renting or maintaining buildings and seconds’ [Australian Financial Review]
machinery 쑗 The sales revenue covers the
overstocks /əυvəstɒks/ plural noun US
overstocks
manufacturing costs but not the overheads.

(NOTE: The US term is overhead.) a surplus of stock 쑗 We will have to sell off
the overstocks to make room in the ware-
overlap profit /əυvəlp prɒfit/ noun a
overlap profit
house.
profit which occurs in two accounting peri-
over-the-counter market /əυvə ðə
over-the-counter market
ods, i.e. when two accounting periods over-

lap, and on which overlap relief can be kaυntə mɑkit/ noun a secondary market
claimed in shares which are not listed on the main
overpaid /əυvəpeid/ adjective paid too
overpaid
|
Stock Exchange
over-the-counter sales /əυvə ðə
over-the-counter sales
much 쑗 Our staff are overpaid and under-

worked. kaυntə seilz/ plural noun the legal selling
overpay /əυvəpei/ verb to pay too much
overpay
|
of shares that are not listed in the official
to someone or for something 쑗 We overpaid Stock Exchange list, usually carried out by
the invoice by $245. telephone
overtime /əυvətaim/ noun hours worked
overtime
overpayment /əυvəpeimənt/ noun an

overpayment
act of paying too much in addition to your usual working hours 쑗 to

overrider /əυvəraidə/, overriding com-
overrider
work six hours’ overtime 쑗 The overtime
mission /əυvəraidiŋ kəmiʃ(ə)n/ noun a |
rate is one and a half times normal pay.
overtime pay /əυvətaim pei/ noun pay
overtime pay
special extra commission which is above all

other commissions for extra time worked
overseas /əυvəsiz/; /əυvəsiz/ noun overtrading /əυvətreidiŋ/ noun a situa-
overseas overtrading
| |
foreign countries 쑗 The profits from over- tion where a company increases sales and

161 owners’ equity

production too much and too quickly, so that owe /əυ/ verb to have to pay money 쑗 He
owe
it runs short of cash owes the bank £250,000. 왍 they still owe
overvalue /əυvəvlju/ verb to give a
overvalue
| the company for the stock they purchased

higher value to something or someone than last year they have still not paid for the
is right 왍 these shares are overvalued at stock
£1.25 the shares are worth less than the owner-occupier
owner-occupier /əυnər ɒkjυpaiə/

£1.25 for which they are selling noun a person who owns the property in
‘…the fact that sterling has been overval- which he or she lives
ued for the past three years shows that cur- owners’ equity
rencies can remain above their fair value owners’ equity /əυnəz ekwiti/ noun
for very long periods’ [Investors Chroni- the value of the shares in a company owned
cle] by the owners of the company

P
package deal /pkid dil/ noun an has not been sold 쑗 He is showing a paper
package deal
agreement which covers several different profit of £25,000 on his investment. Also
things at the same time 쑗 They agreed a called paper gain, unrealised profit
package deal which involves the construc- par /pɑ/ adjective equal, at the same price
par
tion of the factory, training of staff, and pur- parallel economy /prəlel ikɒnəmi/
parallel economy
chase of the product. noun same as black economy

paid /peid/ adjective 1. for which money
paid
parallel loan /prəlel ləυn/ noun same

parallel loan
has been given 쑗 The invoice is marked as back-to-back loan

‘paid’. 2. referring to an amount which has parameter /pərmitə/ noun a fixed limit
parameter
been settled 쑗 The order was sent carriage 쑗 The budget parameters are fixed by the
paid. finance director. 쑗 Spending by each depart-
paid-in capital /peid in kpit(ə)l/
paid-in capital
ment has to fall within agreed parameters.

noun capital in a business which has been parcel of shares /pɑs(ə)l əv ʃeəz/
parcel of shares
provided by its shareholders, usually in the noun a fixed number of shares which are
form of payments for shares above their par sold as a group 쑗 The shares are on offer in
value parcels of 50.
paid-up shares /peid p ʃeəz/ noun
paid-up shares
parent company /peərənt kmp(ə)ni/

parent company
shares which have been completely paid for noun a company which owns more than
by the shareholders 50% of the shares of another company
paper /peipə/ noun 1. a document which
paper
Pareto’s Law /pəritəυz lɔ/, Pareto

Pareto’s Law
can represent money, e.g. a bill of exchange Effect /pəritəυ ifekt/ noun the theory
| |
or a promissory note 2. shares in the form of that incomes are distributed in the same way
share certificates in all countries, whatever tax regime is in
paper gain /peipə ein/ noun same as
paper gain
force, and that a small percentage of a total

paper profit is responsible for a large proportion of value
‘…the profits were tax-free and the inter- or resources. Also called eighty/twenty law
est on the loans they incurred qualified for pari passu /pri psu/ adverb a Latin
pari passu
income tax relief; the paper gains were phrase meaning ‘equally’ 쑗 The new shares
rarely changed into spending money’ will rank pari passu with the existing ones.
[Investors Chronicle]
parity /priti/ noun 1. the state of being
parity
paper loss /peipə lɒs/ noun a loss made equal 왍 the pound fell to parity with the
paper loss
when an asset has fallen in value but has not dollar the pound fell to a point where one
been sold. Also called unrealised loss pound equalled one dollar 2. a situation
paper millionaire /peipə miljəneə/
paper millionaire
|
when the price of a commodity, foreign cur-
noun a person who owns shares which, if rency or security is the same in different
sold, would be worth one million pounds or markets
dollars ‘…the draft report on changes in the inter-
paper money /peipə mni/ noun pay-
paper money
national monetary system casts doubt

ments in paper form, e.g., cheques about any return to fixed exchange-rate
paper offer /peipə ɒfə/ noun a takeover parities’ [Wall Street Journal]
paper offer
bid where the purchasing company offers its Parliamentary Public Accounts
Parliamentary Public Accounts Committee
shares in exchange for shares in the com- Committee /pɑləment(ə)ri pblik ə |
pany being taken over, as opposed to a cash kaυnts kəmiti/ noun a UK parliamentary
|
offer committee established in 1961 to examine

paper profit /peipə prɒfit/ noun a profit that the sums of money agreed by Parlia-
paper profit
on an asset which has increased in price but ment for public spending are properly spent

163 pay
part exchange /pɑt ikstʃeind / noun part payment /pɑt peimənt/ noun a
part exchange part payment
the act of giving an old product as part of the partial payment that leaves a balance to pay
payment for a new one 쑗 to take a car in at some future time 쑗 I gave him £250 as
part exchange part payment for the car.
part-time /pɑt taim/ adjective, adverb
part-time
partial /pɑʃ(ə)l/ adjective not complete

partial
participate /pɑtisipeit/ verb to take part

participate
|
not working for the whole working week 쑗
in an activity or enterprise 쑗 The staff are a part-time employee
party /pɑti/ noun a person or organisation
party
encouraged to participate actively in the

company’s decision-making processes. involved in a legal dispute or legal agree-
participating preference shares /pɑ
participating preference shares
ment 쑗 How many parties are there to the
contract? 쑗 The company is not a party to
|
tisipeitiŋ pref(ə)rəns ʃeəz/, participat-

ing preferred stock /pɑtisipeitiŋ pri| |
the agreement.
par value /pɑ vlju/ noun same as
par value
fd stɒk/ plural noun preference shares

which get an extra bonus dividend if com- face value
passbook /pɑsbυk/ noun same as bank
passbook
pany profits reach a high level

participative budgeting /pɑtisipətiv
participative budgeting
|
book
bd itiŋ/ noun a budgeting system in ‘…instead of customers having transac-
which all budget holders are given the tions recorded in their passbooks, they will
opportunity to participate in setting their present plastic cards and have the transac-
own budgets. Also called bottom-up budg- tions printed out on a receipt’ [Australian
eting Financial Review]
patent /peitənt, ptənt/ noun an offi-
patent
partly-paid capital /pɑtli peid

partly-paid capital
kpit(ə)l/ noun a capital which represents cial document showing that a person has the
partly-paid shares exclusive right to make and sell an invention
쑗 to take out a patent for a new type of light
partly-paid up shares /pɑtli peid p
partly-paid up shares
bulb 쑗 to apply for a patent for a new inven-

ʃeəz/, partly-paid shares /pɑtli peid tion 왍 ‘patent applied for’, ‘patent pend-
ʃeəz/ plural noun shares in which the share- ing’ words on a product showing that the
holders have not paid the full face value inventor has applied for a patent for it
partner /pɑtnə/ noun a person who
partner
patent agent /peitənt eid ənt/ noun a

patent agent
works in a business and has an equal share in person who advises on patents and applies
it with other partners 쑗 I became a partner for patents on behalf of clients
in a firm of solicitors. patent office /peitənt ɒfis/ noun a gov-
patent office
partnership /pɑtnəʃip/ noun an unreg-

partnership
ernment office which grants patents and

istered business where two or more people supervises them
(but not more than twenty) share the risks patent rights /peitənt raits/ plural noun
patent rights
and profits according to a partnership agree- the rights which an inventor holds because
ment 쑗 to go into partnership with someone of a patent
쑗 to join with someone to form a partner-
paternity leave /pətniti liv/ noun a
paternity leave
ship |
short period of leave given to a father to be

partnership accounts /pɑtnəʃip ə
partnership accounts
|
away from work when his partner has a baby
kaυnts/ plural noun the capital and current
pathfinder prospectus /pɑθfaində
pathfinder prospectus
accounts of each partner in a partnership, or

the accounts recording the partnership’s prəspektəs/ noun a preliminary prospec-
|
business activities tus about a company which is going to be

launched on the Stock Exchange, sent to
partnership agreement /pɑtnəʃip ə
partnership agreement
|
potential major investors before the issue
rimənt/ noun a document setting up a date, giving details of the company’s back-
partnership, giving the details of the busi- ground, but not giving the price at which
ness and the amount each partner is contrib- shares will be sold
uting to it. Also called articles of partner- pay /pei/ noun a salary or wages, money
pay
ship given to someone for regular work 쐽 verb 1.

part-owner /pɑt əυnə/ noun a person
part-owner
to give money to buy an item or a service 쑗

who owns something jointly with one or to pay £1,000 for a car 쑗 How much did you
more other people 쑗 I am part-owner of the pay to have the office cleaned? (NOTE: pay-
restaurant. ing – paid) 왍 ‘pay cash’ words written on a
part-ownership /pɑt əυnəʃip/ noun a
part-ownership
crossed cheque to show that it can be paid in

situation where two or more persons own the cash if necessary 2. to produce or distribute
same property money (NOTE: paying – paid) 3. to give an

payable 164
employee money for work done 쑗 The payback clause /peibk klɔz/ noun a
payback clause
workforce has not been paid for three weeks. clause in a contract which states the terms
쑗 We pay good wages for skilled workers. 쑗 for repaying a loan
How much do they pay you per hour? (NOTE: payback period /peibk piəriəd/ noun
payback period
paying – paid) 왍 to be paid at piecework 1. a period of time over which a loan is to be

rates to get money for each piece of work repaid or an investment is to pay for itself 2.
finished 4. to give money which is owed or the length of time it will take to earn back
which has to be paid 쑗 He was late paying the money invested in a project
the bill. 쑗 We phoned to ask when they were pay day /pei dei/ noun a day on which
pay day
going to pay the invoice. 쑗 You will have to wages are paid to employees, usually Friday
pay duty on these imports. 쑗 She pays tax at for employees paid once a week and during
the highest rate. (NOTE: paying – paid) 왍 the last week of the month for employees
please pay the sum of £10 please give £10 who are paid once a month
in cash or by cheque pay differentials /pei difərenʃəlz/ plu-
pay differentials
‘…recession encourages communication ral noun the difference in salary between

not because it makes redundancies easier, employees in similar types of jobs. Also
but because it makes low or zero pay called salary differentials, wage differen-
increases easier to accept’ [Economist] tials
‘…the yield figure means that if you buy paydown /peidaυn/ noun a repayment of
paydown
the shares at their current price you will be part of a sum which has been borrowed
getting 5% before tax on your money if the payee /peii/ noun a person who receives
payee
company pays the same dividend as in its money from someone, or the person whose
last financial year’ [Investors Chronicle] name is on a cheque
pay back phrasal verb to give money back payer /peiə/ noun a person who gives
payer
to someone 쑗 Banks are warning students money to someone

not to take out loans which they cannot pay pay hike /pei haik/ noun an increase in
pay hike
back. 쑗 I lent him £50 and he promised to salary

pay me back in a month. 쑗 She has never paying /peiiŋ/ adjective 1. making a
paying
paid me back the money she borrowed. profit 쑗 It is a paying business. 2. producing
pay off phrasal verb 1. to finish paying money, source of money 쐽 noun the act of
money which is owed for something 쑗 He giving money
won the lottery and paid off his mortgage. 쑗 paying agent /peiiŋ eid ənt/ noun a
paying agent
She is trying to pay off the loan by monthly bank which pays dividend or interest to a
instalments. 2. to terminate somebody’s em- bondholder
ployment and pay all wages that are due 쑗 paying-in book /peiiŋ in bυk/ noun a
paying-in book
When the company was taken over the facto- book of forms for paying money into a bank
ry was closed and all the employees were account or a building society account
paid off. paying-in slip /peiiŋ in slip/ noun a
paying-in slip
pay out phrasal verb to give money 쑗 The printed form which is filled in when money
company pays out thousands of pounds in is being deposited in a bank (NOTE: The US
legal fees. 쑗 We have paid out half our prof- term is deposit slip.)
its in dividends. paymaster /peimɑstə/ noun the person
paymaster
pay up phrasal verb to give money which is responsible for paying an organisation’s
owed 쑗 The company only paid up when we employees
sent them a letter from our solicitor. 쑗 She payment /peimənt/ noun 1. the act of
payment
finally paid up six months late. giving money in exchange for goods or a
payable
payable /peiəb(ə)l/ adjective due to be service 쑗 We always ask for payment in cash
paid or cash payment and not payment by cheque.
payable to order 쑗 The payment of interest or the interest
payable to order /peiəb(ə)l tə ɔdə/ payment should be made on the 22nd of each
adjective words written on a bill of month. 2. money paid
exchange or cheque to indicate that it may payment terms /peimənt tmz/ plural
payment terms
be transferred noun the conditions laid down by a business

payback
payback /peibk/ noun 1. the act of pay- regarding when it should be paid for goods
ing back money which has been borrowed 2. or services that it supplies, e.g. cash with
the time required for the cash inflows from a order, payment on delivery, or payment
capital investment project to equal the cash within a particular number of days of the
outflows invoice date

165 pension fund

pay negotiations /pei niəυʃi job title, salary or length of service. Also
pay negotiations
eiʃ(ə)nz/, pay talks /pei tɔks/ plural called salary scale, wage scale
noun discussions between management and pay slip /pei slip/, pay statement /pei
pay slip
employees about pay increases steitmənt/ noun a piece of paper showing

payoff /peiɒf/ noun money paid to finish
payoff
the full amount of an employee’s pay, and

paying something which is owed, such as the money deducted as tax, pension and
money paid to an employee when his or her National Insurance contributions
employment is terminated pay threshold /pei θreʃhəυld/ noun a
pay threshold
‘…the finance director of the group is to point at which pay increases because of a
receive a payoff of about £300,000 after threshold agreement
deciding to leave the company and pursue PBIT abbreviation profit before interest and
PBIT
other business opportunities’ [Times] tax

payout /peiaυt/ noun money paid to help
payout
P/C abbreviation petty cash

P/C
a company or person in difficulties, a sub-

P/E abbreviation price/earnings
P/E
sidy 쑗 The company only exists on payouts

pecuniary /pikjuniəri/ adjective refer-
pecuniary
from the government. |
‘…after a period of recession followed by ring to money

peg /pe/ verb to maintain or fix something
peg
a rapid boost in incomes, many tax payers

embarked upon some tax planning to min- at a specific level
penalise /pinəlaiz/, penalize verb to
penalise
imize their payouts’ [Australian Financial

Review] punish or fine someone 쑗 to penalise a sup-
payout ratio /peiaυt reiʃiəυ/ noun the
payout ratio
plier for late deliveries 쑗 They were penal-
percentage of a company’s earnings that it ised for bad time-keeping.
pays out in dividends (NOTE: The opposite is penalty /pen(ə)lti/ noun 1. a punishment,
penalty
dividend cover.) often a fine, which is imposed if something

pay packet /pei pkit/ noun wages or
pay packet
is not done or is done incorrectly or illegally
salary, or an envelope containing cash wages 2. an arbitrary pre-arranged sum that
and a pay slip becomes payable if one party breaks a term
pay review /pei rivju/ noun an occa-
pay review
|
of a contract or an undertaking. The most
sion when an employee’s salary is consid- common penalty is a high rate of interest on
ered and usually increased 쑗 I’m soon due an unauthorised overdraft.
penetration pricing /penitreiʃ(ə)n
penetration pricing
for a pay review and hope to get a rise. |
pay rise /pei raiz/ noun an increase in pay

pay rise
praisiŋ/ noun the practice of pricing a
payroll /peirəυl/ noun 1. the list of people
payroll
product low enough to achieve market pene-
employed and paid by a company 쑗 The tration 쑗 Penetration pricing is helping us
company has 250 on the payroll. 2. the acquire a bigger market share at the expense
money paid by a company in salaries 쑗 The of short-term profits.
pension /penʃən/ noun money paid regu-
pension
office has a weekly payroll of £10,000.

payroll costs /peirəυl kɒsts/ plural
payroll costs
larly to someone who no longer works
pensionable /penʃənəb(ə)l/ adjective
pensionable
noun the running costs of payroll adminis-

tration, as well as the actual salaries them- able to receive a pension
selves pensionable earnings /penʃənəb(ə)l
pensionable earnings
payroll giving scheme /peirəυl iviŋ

payroll giving scheme
niŋz/ plural noun earnings being received
skim/ noun a scheme by which an at the moment of retirement, on which the
employee pays money to a charity directly pension is calculated
out of his or her salary. The money is pension contributions /penʃən
pension contributions
deducted by the employer and paid to the kɒntribjuʃ(ə)nz/ plural noun money paid
|
charity; the employee gets tax relief on such by a company or employee into a pension
donations. fund
payroll ledger /peirəυl led ə/ noun a
payroll ledger
pension entitlement /penʃən in

pension entitlement
list of staff and their salaries tait(ə)lmənt/ noun the amount of pension
payroll register /peirəυl red istə/ which someone has the right to receive when
payroll register
noun a central register of payroll informa- he or she retires

tion pensioner /penʃənə/ noun a person who
pensioner
payroll tax /peirəυl tks/ noun a tax on receives a pension

payroll tax
the people employed by a company pension fund /penʃən fnd/ noun a

pension fund
pay scale /pei skeil/ noun a hierarchy of large sum of money made up of contribu-
pay scale
wage levels, typically varying according to tions from employees and their employer

pension funds 166

which provides pensions for retired employ- ‘…the Federal Reserve Board, signalling
ees its concern about the weakening American
pension funds /penʃən fndz/ plural
pension funds
economy, cut the discount rate by one-half
noun investments managed by pension com- percentage point to 6.5%’ [Wall Street
panies to produce pensions for investors Journal]
percentage discount /pəsentid
percentage discount
pension income /penʃən inkm/ noun

pension income
|
income which you receive from a pension diskaυnt/ noun a discount calculated at an
scheme amount per hundred
percentage increase /pəsentid
percentage increase
pension scheme /penʃən skim/, pen-

pension scheme
|
sion plan /penʃən pln/ noun an arrange- inkris/ noun an increase calculated on the
ment by which an employer and, usually, an basis of a rate for one hundred
percentage point /pəsentid pɔint/
percentage point
employee pay into a fund that is invested to |
provide the employee with a pension on noun 1 per cent

percentile /pəsentail/ noun one of a
percentile
retirement |
PEP abbreviation Personal Equity Plan

PEP
series of ninety-nine figures below which a
per /p, pə/ preposition 1. 왍 as per
per
percentage of the total falls
according to 2. for each 왍 we pay £10 per per day /pə dei/, per diem /p diem/
per day
hour we pay £10 for each hour worked 왍 adverb for each day
perform /pəfɔm/ verb to do well or badly
perform
the earnings per share the dividend |
received for each share 왍 the average sales performance /pəfɔməns/ noun 1. the
performance
per representative the average sales way in which someone or something acts 쑗
achieved by one representative Last year saw a dip in the company’s per-
‘…a 100,000 square-foot warehouse gen- formance. 왍 performance of staff against
erates $600 in sales per square foot of objectives how staff have worked, measured
space’ [Duns Business Month] against the objectives set 2. the way in which
PER abbreviation price/earnings ratio
PER
a share increases in value
per annum /pər nəm/ adverb in a year
per annum
‘…inflation-adjusted GNP edged up at a
쑗 What is their turnover per annum? 쑗 1.3% annual rate, its worst performance
What is his total income per annum? 쑗 She since the economic expansion began’
earns over £100,000 per annum. [Fortune]
performance audit /pəfɔməns ɔdit/
performance audit
P/E ratio /pi i reiʃiəυ/ noun same as

P/E ratio
|
price/earnings ratio noun an investigation into the efficiency of a

particular area of an organisation, or of the
per capita /pə kpitə/ adjective, adverb
per capita
organisation as a whole
for each person
performance rating /pəfɔməns
performance rating
per capita income /pə kpitə inkm/

per capita income |
reitiŋ/ noun a judgment of how well a

noun 1. the average income of one person.
share or a company has performed
Also called income per capita, income
performance report /pəfɔməns ri
performance report
per head 2. the average income of each | |
member of a particular group of people, e.g., pɔt/ noun a report of the findings of a per-
the citizens of a country formance audit
per head /pə hed/ adverb for each person
per head
per cent /pə sent/ adjective, adverb out

per cent
of each hundred, or for each hundred 쑗 Allow £15 per head for expenses. 쑗 Rep-
resentatives cost on average £50,000 per
‘…this would represent an 18 per cent head per annum.
growth rate – a slight slackening of the 25
period bill /piəriəd bil/ noun a bill of
period bill
per cent turnover rise in the first half’

[Financial Times] exchange payable on a certain date rather
‘…buildings are depreciated at two per than on demand. Also known as term bill
period cost /piəriəd kɒst/ noun a fixed
period cost
cent per annum on the estimated cost of

construction’ [Hongkong Standard] cost, such as rent or insurance, which is
percentage /pəsentid / noun an amount
percentage
|
related to a period of time
period end /piəriəd end/ noun the date
period end
shown as part of one hundred

‘…state-owned banks cut their prime rates which marks the end of a particular account-
a percentage point to 11%’ [Wall Street ing period, e.g. the end of the financial year
Journal] periodicity concept /piəriədisiti
periodicity concept
‘…a good percentage of the excess stock kɒnsept/ noun a legal requirement that
was taken up during the last quarter’ [Aus- states that entities must produce required
tralian Financial Review] financial documentation at agreed times

167 petty cash voucher

periodic stock check /piəriɒdik stɒk an individual, either independently or with
periodic stock check
tʃek/ noun the counting of stock at some the assistance of a professional adviser. It
point in time, usually at the end of an will include the use of tax efficient schemes
accounting period such as Individual Savings Accounts, ensur-
periodic weighted average cost
periodic weighted average cost
ing adequate provisions are being made for
/piəriɒdik weitid v(ə)rid kɒst/, retirement, and examining short- and long-
periodic weighted average price term borrowing requirements such as over-
/piəriɒdik weitid v(ə)rid prais/ drafts and mortgages.
noun the average price per unit of stock Personal Identification Number
Personal Identification Number
delivered in a period calculated at the end of /ps(ə)n(ə)l aidentifikeiʃ(ə)n nmbə/

| |
the period. Compare cumulative weighted noun a unique number allocated to the
average cost holder of a cash card or credit card, by which
period of account /piəriəd əv əkaυnt/ he or she can enter an automatic banking
period of account
noun the period usually covered by a firm’s system, as e.g., to withdraw cash from a cash
accounts machine or to pay in a store. Abbreviation
period of qualification /piəriəd əv
period of qualification
PIN
kwɒlifikeiʃ(ə)n/ noun the time which has personal income /ps(ə)n(ə)l inkm/
personal income
to pass before someone qualifies for some- noun the income received by an individual
thing person before tax is paid
perk /pk/ noun an extra item given by a
perk
Personal Investment Authority

Personal Investment Authority
company to employees in addition to their /ps(ə)nəl investmənt ɔθɒrəti/ noun a

| |
salaries, e.g. company cars or private health self-regulatory body which regulates the
insurance (informal) 쑗 She earns a good sal- activities of financial advisers, insurance
ary and in addition has all sorts of perks. brokers and others who give financial advice
perpetual inventory system /p
perpetual inventory system
| or arrange financial services for small cli-

petjυəl inventəri sistəm/ noun a stock ents. Abbreviation PIA
control system by which the stock is contin- personal loan /ps(ə)nəl ləυn/ noun a
personal loan
ually counted as it moves into and out of the loan to a person for household or other per-
warehouse, so avoiding having to close the sonal use, not for business use
warehouse for annual stock checks. Abbre- personal pension plan /ps(ə)n(ə)l
personal pension plan
viation PIS penʃən pln/ noun a pension plan which

perpetuity /ppitjuiti/ noun same as
perpetuity
|
applies to one employee only, usually a self-
annuity employed person, not to a group. Abbrevia-
perquisite /pkwizit/ noun same as
perquisite
tion PPP
perk personal
personal property
property /ps(ə)n(ə)l
personal /ps(ə)n(ə)l/ adjective refer-
personal
prɒpəti/ noun things which belong to a

ring to one person 왍 apart from the family person 쑗 The fire caused considerable dam-
shares, she has a personal shareholding in age to personal property.
the company apart from shares belonging
personal representative /ps(ə)n(ə)l
personal representative
to her family as a group, she has shares

which she owns herself reprizentətiv/ noun a person who is the
|
executor of a will or the administrator of the

personal account /ps(ə)n(ə)l ə
personal account
|
estate of a deceased person
kaυnt/ noun an account for recording
PERT /pt/ abbreviation programme eval-
PERT
amounts receivable from or payable to a per-

son or an entity. 쒁 impersonal account uation and review technique
petroleum revenues /pətrəυliəm
petroleum revenues
personal allowance /ps(ə)n(ə)l ə

personal allowance
|
|
laυəns/ noun a part of a person’s income revənjuz/ plural noun income from sell-
which is not taxed ing oil
petroleum revenue tax /pətrəυliəm
petroleum revenue tax
personal assets /ps(ə)n(ə)l sets/

personal assets
|
plural noun movable assets which belong to revənju tks/ noun a British tax on rev-
a person enues from companies extracting oil from
Personal Equity Plan /ps(ə)nəl
Personal Equity Plan
the North Sea. Abbreviation PRT
petty cash /peti kʃ/ noun a small
petty cash
ekwiti pln/ noun a share-based invest-

ment replaced by the ISA in 1999. Abbrevi- amount of money kept in an office to pay
ation PEP small debts. Abbreviation P/C
personal financial planning petty cash voucher /peti kʃ
personal financial planning petty cash voucher
/ps(ə)n(ə)l fainnʃəl plniŋ/ noun

| vaυtʃə/ noun a piece of paper on which
short- and long-term financial planning by cash expenditure is noted so that an

petty expenses 168

employee can be reimbursed for what he or and not as an amount for each hour worked
she has spent on company business 쑗 to earn piece rates
petty expenses /peti ikspensiz/ plural piecework /piswk/ noun work for
petty expenses piecework
noun small sums of money spent which employees are paid in accordance
phase /feiz/ noun a period or part of some-
phase
with the number of products produced or
thing which takes place 쑗 the first phase of pieces of work done and not at an hourly rate
pie chart /pai tʃɑt/ noun a diagram
pie chart
the expansion programme

phase in phrasal verb to bring something in where information is shown as a circle cut
gradually 쑗 The new invoicing system will up into sections of different sizes
be phased in over the next two months. pilferage /pilfərid /, pilfering /pilfəriŋ/
pilferage
‘…the budget grants a tax exemption for noun the stealing of small amounts of
$500,000 in capital gains, phased in over money or small items from an office or shop
the next six years’ [Toronto Star] PIN /pin/ abbreviation Personal Identifica-
PIN
phase out phrasal verb to remove some- tion Number

thing gradually 쑗 Smith Ltd will be phased PIS abbreviation perpetual inventory sys-
PIS
out as a supplier of spare parts. tem

phoenix company /finiks
phoenix company
placement /pleismənt/ noun 1. the act of

placement
kmp(ə)ni/ noun a company formed by the finding work for someone 쑗 The bureau
directors of a company which has gone into specialises in the placement of former exec-
receivership, which trades in the same way utives. 2. US the act of finding buyers for an
as the first company, and in most respects issue of new shares (NOTE: The UK term is
(except its name) seems to be exactly the placing.)
same as the first company placing /pleisiŋ/ noun the act of finding a
placing
‘…the prosecution follows recent calls for single buyer or a group of institutional buy-
a reform of insolvency legislation to pre- ers for a large number of shares in a new
vent directors from leaving behind a trail company or a company that is going public
of debt while continuing to trade in phoe-
plain vanilla swap /plein vənilə
plain vanilla swap
nix companies – businesses which fold |
only to rise again, often under a slightly swɒp/ noun same as interest rate swap
plan /pln/ noun 1. an organised way of
plan
different name in the hands of the same

directors and management’ [Financial doing something 쑗 an investment plan 쑗 a
Times] pension plan 쑗 a savings plan 2. a way of
physical asset /fizik(ə)l set/ noun an
physical asset
saving or investing money 쐽 verb to organ-
asset that is a physically existing thing, as ise carefully how something should be done
opposed to cash or securities in the future
physical
physical inventory
inventory /fizik(ə)l ‘…the benefits package is attractive and

invənt(ə)ri/ noun US same as physical the compensation plan includes base,
stock incentive and car allowance totalling
$50,000+’ [Globe and Mail (Toronto)]
physical market /fizik(ə)l mɑkit/
physical market
plan comptable /plɒn kɒmtɑblə/

plan comptable
noun a commodity market where purchasers

|
noun in France, a uniformly structured and

actually buy the commodities, as opposed to
the futures market, where they buy and sell detailed bookkeeping system that compa-
the right to purchase commodities at a future nies are required to comply with
planned economy /plnd ikɒnəmi/
planned economy
date |
noun a system where the government plans

physical price /fizik(ə)l prais/ noun a
physical price
all business activity, regulates supply, sets

current cash price for a commodity for
production targets and itemises work to be
immediate delivery
done. Also called command economy,
physicals /fizik(ə)lz/ plural noun actual
physicals
central planning
commodities which are sold on the current planned obsolescence /plnd ɒbsə
planned obsolescence
market, as opposed to futures

|
les(ə)ns/ noun same as built-in obsoles-

physical stock /fizik(ə)l stɒk/ noun
physical stock
cence 쑗 Planned obsolescence was con-

the actual items of stock held in a warehouse demned by the consumer organisation as a
PIA abbreviation Personal Investment
PIA
cynical marketing ploy.

Authority plant and machinery /plɑnt ən mə
plant and machinery
piece rate /pis reit/ noun a rate of pay ʃinəri/ noun equipment used to help some-
piece rate
calculated as an amount for each product one trade such as trucks, tools, office furni-
produced or for each piece of work done, ture, computers, ladders, etc.

169 post balance-sheet review

plant asset /plɑnt set/ noun any
plant asset
markets; operating systems such as produc-

fixed asset such as machinery tion and distribution; internal organisation;
plant ledger /plɑnt led ə/ noun a
plant ledger
current results; and returns to stockholders
ledger that records information relating to positive carry /pɒzitiv kri/ noun a
positive carry
specific items of plant, including informa- situation in which the cost of financing an
tion on replacements and repairs investment is less than the return obtained
plastic /plstik/ noun credit cards and
plastic
from it
charge cards (informal) positive cash flow /pɒzitiv kʃ fləυ/
positive cash flow
Plc, PLC, plc abbreviation public limited

Plc
noun a situation in which more money is
company coming into a company than is going out
plus /pls/ preposition added to 쑗 Her sal- positive confirmation /pɒzitiv kɒnfə
plus positive confirmation
ary plus commission comes to more than meiʃən/ noun an auditor’s request to have
£45,000. 쑗 Production costs plus overheads financial information confirmed as accurate,
are higher than revenue. 쐽 adverb more to which a reply must be sent, not only in the
than 왍 houses valued at £100,000 plus case of a discrepancy
houses valued at over £100,000 positive goodwill /pɒzitiv υdwil/
positive goodwill
pocket /pɒkit/ noun 왍 to be £25 in

pocket
noun the position of a company that has
pocket to have made a profit of £25 왍 to be assets for which the acquisition costs exceed
£25 out of pocket to have lost £25 the values of the identifiable assets and lia-
point /pɔint/ noun 1. a place or position 2.
point
bilities
a unit for calculations 왍 government stocks positive yield curve /pɒzitiv jild
positive yield curve
rose by one point they rose by £1 kv/ noun a situation where the yield on a
poison pill /pɔiz(ə)n pil/ noun an action
poison pill
short-term investment is less than that on a
taken by a company to make itself less long-term investment
possess /pəzes/ verb to own something
possess
attractive to a potential takeover bid |
policy cost /pɒlisi kɒst/ noun a fixed

policy cost
쑗 The company possesses property in the
cost, such as advertising cost, which is gov- centre of the town. 쑗 He lost all he pos-
erned by the management’s policy on the sessed in the collapse of his company. Com-
amount of advertising to be done pare repossess
possession /pəzeʃ(ə)n/ noun the fact of
possession
portable pension /pɔtəb(ə)l penʃən/,

portable pension
|
portable pension plan /pɔtəb(ə)l owning or having something

penʃən pln/ noun a pension entitlement possessions /pəzeʃ(ə)nz/ plural noun
possessions
which can be moved from one company to property, things owned 쑗 They lost all their
another without loss as an employee possessions in the fire. Compare reposses-
changes jobs sion
portfolio investments /pɔtfəυliəυ in post-acquisition /pəυst kwiziʃ(ə)n/
portfolio investments post-acquisition
| | |
vestmənts/ plural noun investments in adjective taking place after a company has
shares and government stocks, as opposed to been acquired
investments in property, etc. post-acquisition profit /pəυst kwi
post-acquisition profit
portfolio management /pɔtfəυliəυ

portfolio management
| ziʃ(ə)n prɒfit/ noun a profit of a subsidi-

mnid mənt/ noun the systematic buying ary company in the period after it has been
and selling shares in order to make the high- acquired, which is treated as revenue and
est-possible profits for a single investor transferred to the consolidated reserves of
portfolio theory /pɔtfəυliəυ θiəri/
portfolio theory
|
the holding company
post a credit /pəυst ə kredit/ verb to
post a credit
noun a basis for managing a portfolio of

investments, i.e. a mix of safe stocks and enter a credit item in a ledger
more risky ones post-balance sheet event /pəυst
post-balance sheet event
position /pəziʃ(ə)n/ noun 1. a situation bləns ʃit ivent/ noun something which
position
| |
or state of affairs 2. a point of view 3. a job happens after the date when the balance
or paid work in a company 쑗 to apply for a sheet is drawn up, and before the time when
position as manager 쑗 We have several the balance sheet is officially approved by
positions vacant. 4. the state of a person’s the directors, which affects a company’s
current financial holding in a stock financial position
position audit /pəziʃ(ə)n ɔdit/ noun post balance-sheet review /pəυst
position audit post balance-sheet review
part of the planning process which examines bləns ʃit rivju/ noun those procedures
|
the current state of an entity in respect of the of an audit that relate to the interval between
following: resources of tangible and intangi- the date of the financial statements and the
ble assets and finance; products, brands and completion date of the audit fieldwork

postdate 170
prebilling /pribiliŋ/ noun the practice of
postdate prebilling
postdate /pəυstdeit/ verb to put a later

| |
date on a document 쑗 He sent us a postdated submitting a bill for a product or service

cheque. 쑗 Her cheque was postdated to before it has actually been delivered
June. preceding year /prisidiŋ jiə/ noun the
preceding year
post-purchase costs
post-purchase costs /pəυst ptʃis year before the accounting year in question
kɒsts/ plural noun costs incurred after a 왍 taxed on a preceding year basis tax on
capital expenditure decision has been imple- income or capital gains arising in the previ-
mented and facilities acquired. These costs ous year is payable in the current year
pre-emption right /priempʃən rait/
pre-emption right
may include training, maintenance and the |
cost of upgrades. noun the right of an existing shareholder to

pound
pound /paυnd/ noun 1. a measure of be first to buy a new stock issue

pre-emptive /pri emptiv/ adjective
pre-emptive
weight (= 0.45 kilos) 쑗 to sell oranges by the

pound 쑗 a pound of oranges 쑗 Oranges cost done before anyone else takes action in
50p a pound. (NOTE: Usually written lb after order to stop something happening
preference dividend /pref(ə)rəns
preference dividend
a figure: 25lb. Note also that the pound is

now no longer officially used in the UK) 2. a dividend/ noun a dividend paid on prefer-
unit of currency used in the UK and many ence shares
other countries including Cyprus, Egypt, preference shares /pref(ə)rəns ʃeəz/
preference shares
Lebanon, Malta, Sudan, Syria and, before plural noun shares, often with no voting
the euro, Ireland rights, which receive their dividend before
poundage
poundage /paυndid / noun a rate all other shares and are repaid first at face
charged per pound in weight value if the company goes into liquidation
pound-cost averaging
(NOTE: The US term is preferred stock.)
pound-cost averaging /paυnd kɒst
preferential creditor /prefərenʃ(ə)l
preferential creditor
v(ə)rid iŋ/ noun the practice of buying

securities at different times, but always kreditə/ noun a creditor who must be paid
spending the same amount of money first if a company is in liquidation. Also
pound sterling called preferred creditor
pound sterling /paυnd stliŋ/ noun
preferential debt /prefərenʃ(ə)l det/
preferential debt
the official term for the UK currency

power
noun a debt which is paid before all others
power /paυə/ noun 1. strength or ability 2. preferential payment /prefərenʃəl
preferential payment
a force or legal right 3. a mathematical term peimənt/ noun a payment to a preferential

describing the number of times a number is creditor
to be multiplied by itself 쑗 5 to the power 2
preferential shares /prefərenʃ(ə)l
preferential shares
is equal to 25 (NOTE: written as small figures |
5
in superscript: 10 . Say: ‘ten to the power ʃeəz/ plural noun shares which are part of a
five’) new issue and are set aside for the employ-
power of attorney
ees of the company
power of attorney /paυər əv ətni/ |
preferred creditor /prifd kreditə/
preferred creditor
noun a legal document which gives someone noun same as preferential creditor
the right to act on someone’s behalf in legal
preferred shares /prifd ʃeəz/, pre-
preferred shares
matters |
PPI ferred stock /prifd stɒk/ plural noun

|
PPI abbreviation producers’ price index same as preference shares

PPP
PPP abbreviation personal pension plan pre-financing /pri fainnsiŋ/ noun

pre-financing
pre-acquisition profits
pre-acquisition profits /pri money paid in advance by customers to help

kwiziʃən prɒfits/ plural noun profits of finance a project the future products of
a company in the part of its accounting which the customer contracts to buy by mak-
period before it was acquired by another ing additional payments
preliminary announcement /pri
preliminary announcement
company. Under acquisition accounting |
methods, the holding company deducts limin(ə)ri ənaυnsmənt/ noun an

|
these profits from the combined reserves of announcement of a company’s full-year

the group. results, given out to the press before the
pre-acquisition write-down
pre-acquisition write-down /pri detailed annual report is released

preliminary audit /prilimin(ə)ri ɔdit/
preliminary audit
kwiziʃən rait daυn/ noun a reduction |
in the fair value of a new subsidiary in the noun audit fieldwork carried out before the
balance sheet of a holding company against end of the accounting period in question
preliminary prospectus /pri
preliminary prospectus
the potential future costs or the possible |
revaluation of the subsidiary’s assets after limin(ə)ri prəspektəs/ noun same as

|
acquisition pathfinder prospectus

171 price/earnings ratio

premium /primiəm/ noun 1. a regular ‘…the company’s goals are a growth in
premium
payment made to an insurance company for sales of up to 40 per cent, a rise in pre-tax
the protection provided by an insurance pol- earnings of nearly 35 per cent and a rise in
icy 2. an amount to be paid to a landlord or after-tax earnings of more than 25 per
a tenant for the right to take over a lease 쑗 cent’ [Citizen (Ottawa)]
flat to let with a premium of £10,000 쑗 ‘EC regulations which came into effect in
annual rent: £8,500, premium: £25,000 3. July insist that customers can buy cars
an extra sum of money in addition to a usual anywhere in the EC at the local pre-tax
charge, wage, price or other amount 4. a gift, price’ [Financial Times]
pretax profit /pritks prɒfit/ noun the
pretax profit
discount or other incentive to encourage

someone to buy amount of profit a company makes before
premium bond /primiəm bɒnd/ noun a
premium bond
taxes are deducted 쑗 The dividend paid is
government bond, part of the National Sav- equivalent to one quarter of the pretax
ings and Investment scheme, which pays no profit. Also called profit before tax, profit
interest, but gives the owner the chance to on ordinary activities before tax
pretax profit margin /pritks prɒfit
pretax profit margin
win a weekly or monthly prize

premium income /primiəm inkm/
premium income
mɑd in/ noun the pretax profit shown as a
noun income which an insurance company percentage of turnover in a profit and loss
derives from premiums paid by insured per- account
preventive costs /priventiv kɒsts/
preventive costs
sons |
premium on redemption /primiəm

premium on redemption
plural noun those costs incurred in seeking
ɒn ridempʃən/ noun an extra amount
|
to prevent defects in products and services
above the nominal value of a share or deben- supplied, e.g. the cost of training pro-
ture paid to the holder by a company buying grammes
previous balance /priviəs bləns/
previous balance
back its share or loan stock

prepaid expenses /pripeid ik
prepaid expenses
| |
noun a balance in an account at the end of
spensiz/ plural noun expenditure on items the accounting period before the current one
price /prais/ noun money which has to be
price
such as rent, which is made in one account-

ing period but covers part of the next period paid to buy something 왍 cars in the £18–
also 19,000 price range cars of different makes,
prepaid interest /pripeid intrəst/
prepaid interest
|
selling for between £18,000 and £19,000 쐽
noun interest paid in advance of its due date verb to give a price to a product 쑗 We have
prepay /pripei/ verb to pay something in
prepay
|
two used cars for sale, both priced at
advance (NOTE: prepaying – prepaid) £5,000.
price ceiling /prais siliŋ/ noun a limit
price ceiling
prepayment /pripeimənt/ noun 1. a

prepayment
payment in advance, or the act of paying in beyond which prices will not or cannot rise
price change /prais tʃeind / noun an
price change
advance 2. US the repayment of the princi-

pal of a loan before it is due amount by which the price of a share moves
prepayment penalty /pripeimənt
prepayment penalty
|
during a day’s trading
price controls /prais kəntrəυlz/ plural
price controls
pen(ə)lti/ noun US a charge levied on |
someone who repays a loan such as a mort- noun legal measures to prevent prices rising
gage before it is due too fast
price cutting /prais ktiŋ/ noun a sud-
price cutting
present value /prez(ə)nt vlju/ noun

present value
1. the value something has now 쑗 In 1984 den lowering of prices

the pound was worth five times its present ‘…in today’s circumstances, price-cutting
value. 2. the value now of a specified sum of is inevitable in an attempt to build up mar-
money to be received in the future, if ket share’ [Marketing Week]
invested at current interest rates. Abbrevia- price-cutting war /prais ktiŋ wɔ/
price-cutting war
tion PV 3. a price which a share must reach noun same as price war
in the future to be the equivalent of today’s price differential /prais difərenʃəl/
price differential
price, taking inflation into account noun the difference in price between prod-
preservation of capital
preservation of capital
ucts in a range
/prezəveiʃ(ə)n əv kpit(ə)l/ noun an price/earnings ratio /prais niŋz
price/earnings ratio
approach to financial management that pro- reiʃiəυ/ noun a ratio between the current
tects a person’s or company’s capital by market price of a share of stock and the earn-
arranging additional forms of finance ings per share (the current dividend it pro-
pretax /pritks/, pre-tax adjective duces), calculated by dividing the market
pretax
before tax has been deducted or paid price by the earnings per share 쑗 These

price fixing 172

shares sell at a P/E ratio of 7 Also called principal /prinsip(ə)l/ noun 1. a person
principal
P/E ratio. Abbreviation PER or company that is represented by an agent 쑗

price fixing /prais fiksiŋ/ noun an ille-
price fixing
The agent has come to London to see his
gal agreement between companies to charge principals. 2. a person acting for him or her-
the same price for competing products self, such as a marketmaker buying securi-
price-insensitive /prais insensətiv/
price-insensitive
|
ties on his or her own account 3. money
adjective used to describe a good or service invested or borrowed on which interest is
for which sales remain constant no matter paid 쑗 to repay principal and interest 쑗 We
what its price because it is essential to buy- try to repay part of principal each month.
ers (NOTE: Do not confuse with principle.) 쐽
adjective most important 쑗 The principal
price range /prais reind / noun a series
price range
shareholders asked for a meeting. 쑗 The

of prices for similar products from different country’s principal products are paper and
suppliers wood. 쑗 The company’s principal asset is its
price-to-sales ratio /prais tə seilz
price-to-sales ratio
design staff.
reiʃiəυ/ noun the ratio of the total value of ‘…the company was set up with funds
a company’s shares to its sales for the previ- totalling NorKr 145m with the principal
ous twelve months aim of making capital gains on the second-
price variance /prais veəriəns/ noun
price variance
hand market’ [Lloyd’s List]

the discrepancy between the actual price of prior charge percentage /praiə
prior charge percentage
a unit produced and the standard price tʃɑd pəsentid / noun same as priority
|
price war /prais wɔ/ noun a competition

price war
percentage
between companies to get a larger market priority /praiɒriti/ noun 왍 to have prior-
priority
share by cutting prices. Also called price- ity over or to take priority over something
cutting war to be more important than something 쑗
pricing /praisiŋ/ noun the act of giving a
pricing
Reducing overheads takes priority over

price to a product increasing turnover. 쑗 Debenture holders
pricing model /praisiŋ mɒd(ə)l/ noun
pricing model
have priority over ordinary shareholders.
a computerised system for calculating a priority percentage /praiɒriti pə
priority percentage
| |
price, based on costs, anticipated margins, sentid / noun the proportion of a busi-
etc. ness’s net profit that is paid in interest to
pricing policy /praisiŋ pɒlisi/ noun a
pricing policy
preference shareholders and holders of debt
company’s policy in giving prices to its capital. Also called prior charge percent-
products 쑗 Our pricing policy aims at pro- age
ducing a 35% gross margin. prior period adjustment /praiə
prior period adjustment
primary commodities /praiməri kə

primary commodities
|
piəriəd əd stmənt/ noun a change in
|
mɒditiz/ plural noun farm produce grown the revenue or expenses for a previous
in large quantities, e.g. corn, rice or cotton accounting period, introduced in order to
primary industry /praiməri indəstri/
primary industry
correct an error or to apply a new accounting
noun an industry dealing with basic raw policy
prior year adjustments /praiə jiər ə
prior year adjustments
materials such as coal, wood, or farm pro- |
duce d stmənts/ plural noun adjustments

prime /praim/ adjective 1. most important
prime
made to accounts for previous years,
2. basic 쐽 noun same as prime rate because of changes in accounting policies or
because of errors
prime bills /praim bilz/ plural noun bills
prime bills
private /praivət/ adjective belonging to a

private
of exchange which do not involve any risk

single person or to individual people, not to
prime cost /praim kɒst/ noun the cost
prime cost
a company or the state 왍 a letter marked

involved in producing a product, excluding ‘private and confidential’ a letter which
overheads must not be opened by anyone other than the
prime rate /praim reit/ noun US the best person it is addressed to 왍 to sell (a house)
prime rate
rate of interest at which a bank lends to its by private treaty to sell (a house) to another
customers. Also called prime person not by auction
prime sites /praim saits/ plural noun
prime sites
private bank /praivət bŋk/ noun 1. a

private bank
the most valuable commercial sites, i.e. in bank that is owned by a single person or a
main shopping streets. Compare secondary limited number of private shareholders 2. a
sites bank that provides banking facilities to high
priming /praimiŋ/ noun 쏡 pump priming net worth individuals. 쒁 private banking
priming

173 producer
private banking /praivət bŋkiŋ/ income and expenditure), and the financial
private banking
noun a service offered by certain financial sector (banks and other institutions dealing
institutions to high net worth individuals. In in money) 쑗 The expansion is completely
addition to standard banking services, it will funded by the private sector. 쑗 Salaries in
typically include portfolio management and the private sector have increased faster than
advisory services on taxation, including in the public sector.
estate planning. ‘…in the private sector the total number of
private company /praivət kmp(ə)ni/ new house starts was 3 per cent higher than
private company
noun a registered company whose shares are in the corresponding period last year,
not offered for sale to the public while public sector starts were 23 per cent
private debt /praivət det/ noun money
private debt
lower’ [Financial Times]
private treaty /praivət triti/ noun an
private treaty
owed by individuals and organisations other

than governments agreement between individual persons
probability /prɒbəbiliti/ noun the likeli-
probability
private enterprise /praivət entəpraiz/

private enterprise
|
noun businesses that are owned privately, hood that something will happen, expressed
not nationalised 쑗 The project is completely mathematically
funded by private enterprise. probability distribution /prɒbəbiləti
probability distribution
private income /praivət inkm/ noun

private income
distribjuʃ(ə)n/ noun a mathematical for-
income from dividends, interest or rent mula that shows the probability for each
which is not part of a salary value of a variable in a statistical study
probate /prəυbeit/ noun legal acceptance
probate
private investor /praivət investə/

private investor
that a document, especially a will, is valid 왍

|
noun an ordinary person with money to

invest the executor was granted probate or
private limited company /praivət
private limited company
obtained a grant of probate the executor
limitid kmp(ə)ni/ noun 1. a company was told officially that the will was valid
procedural audit /prəsid ərəl ɔdit/
procedural audit
with a small number of shareholders, whose |
shares are not traded on the Stock Exchange noun the process of evaluating all policies,
2. a subsidiary company whose shares are controls and other procedures of a business
not listed on the Stock Exchange, while procedure /prəsid ə/ noun a way in
procedure
those of its parent company are 왘 abbrevia- which something is done 쑗 The inquiry
tion Pty Ltd found that the company had not followed the
privately held company /praivətli
privately held company
approved procedures.
held kmp(ə)ni/ noun US company con- ‘…this was a serious breach of discipli-
trolled by a few shareholders or its directors. nary procedure and the dismissal was
Also called closed corporation unfair’ [Personnel Management]
private ownership /praivət əυnəʃip/ proceeds /prəυsidz/ plural noun money
private ownership proceeds
noun a situation in which a company is received from selling something

owned by private shareholders process /prəυses/ verb to deal with
process
private
private placement
placement /praivət something in the usual routine way 쑗 It usu-

pleismənt/ noun the sale of securities for ally takes at least two weeks to process an
the purpose of investment, not for resale insurance claim. 쑗 Orders are processed in
private placing /praivət pleisiŋ/, pri-
private placing
our warehouse.
vate placement /praivət pleismənt/ process costing /prəυses kɒstiŋ/
process costing
noun the act of placing a new issue of shares noun a method of costing something which
with a group of selected financial institu- is manufactured from a series of continuous
tions processes, where the total costs of those
private practice /praivət prktis/
private practice
processes are divided by the number of units
noun accounting services offered to clients, produced
as opposed to accounting work carried out process cost report /prəυses kɒst ri
process cost report
as an employee of a company pɔt/ noun a set of schedules that managers

private property /praivət prɒpəti/
private property
use to track costs in a process costing system
noun property which belongs to a private processing /prəυsesiŋ/ noun the act of
processing
person, not to the public sorting information 쑗 the processing of

private sector /praivət sektə/ noun
private sector
information or of statistics by a computer
one of the parts of the economy of a country, producer /prədjusə/ noun same as sup-
producer
which itself is made up of the corporate sec- plier 쑗 a country which is a producer of
tor (firms owned by private shareholders), high-quality watches 쑗 The company is a
the personal sector (individuals and their major car producer.

producers’ price index 174

producers’ price index /prədjusə
producers’ price index
| production target /prədkʃən tɑit/

production target
prais indeks/ noun US a measure of the noun the number of units a business is
annual increase in the prices of goods and expected to produce
services charged by producers which is used production unit /prədkʃən junit/
production unit
to indicate the rate of inflation in the US noun a separate small group of employees
economy. Abbreviation PPI producing a product
product /prɒdkt/ noun 1. something
product
production yield variance /prə

production yield variance
which is made or manufactured 2. a manu- dkʃən jild veəriəns/ noun a discrep-

factured item for sale ancy between expected levels of productiv-
product advertising
product advertising
/prɒdkt ity and actual levels, for a given amount of

dvətaiziŋ/ noun the advertising of a par- input
ticular named product, not the company productive
productive capital
capital /prədktiv
|
which makes it kpit(ə)l/ noun capital which is invested to

product analysis /prɒdkt ənləsis/
product analysis
|
give interest
noun an examination of each separate prod-
productivity /prɒdktiviti/ noun the
productivity
uct in a company’s range to find out why it |
sells, who buys it, etc. rate of output per employee, or per item of
equipment, in a business 쑗 Bonus payments
product cost /prɒdkt kɒst/ noun the
product cost
are linked to productivity. 쑗 The company is

total cost of goods produced but not yet sold aiming to increase productivity. 쑗 Produc-
product costing system /prɒdkt
product costing system
tivity has fallen or risen since the company

kɒstiŋ sistəm/ noun a set of procedures was taken over.
that provides information on unit cost ‘…though there has been productivity
product design /prɒdkt dizain/ noun
product design
|
growth, the absolute productivity gap
the design of consumer products between many British firms and their for-
product development /prɒdkt di
product development
| eign rivals remains’ [Sunday Times]

veləpmənt/ noun the process of improving productivity agreement /prɒdk
productivity agreement
an existing product line to meet the needs of tiviti ərimənt/ noun an agreement to
|
the market pay a productivity bonus

production /prədkʃən/ noun 1. the act
production
productivity bonus /prɒdktiviti

productivity bonus
|
|
of showing something 2. the work of making bəυnəs/ noun an extra payment made to
or manufacturing goods for sale 쑗 We are employees because of increased production
hoping to speed up production by installing per employee
new machinery. 쑗 Higher production is
productivity drive /prɒdktiviti
productivity drive
rewarded with higher pay. |
production
production budget
budget /prədkʃən |
draiv/ noun an extra effort to increase pro-
bd it/ noun a plan of the level of manu- ductivity
product life cycle /prɒdkt laif
product life cycle
facturing required to satisfy budgeted sales

and inventory expectations saik(ə)l/ noun stages in the life of a product
production cost /prədkʃən kɒst/
production cost
|
in terms of sales and profitability, from its
noun the cost of making a product launch to its decline 쑗 Growth is the first
production department /prədkʃən
production department stage in the product life cycle. 쑗 The
machine has reached a point in its product
|
dipɑtmənt/ noun the section of a com-

life cycle where we should be thinking about
|
pany which deals with the making of the

a replacement for it.
company’s products
product management /prɒdkt
product management
production line /prədkʃən lain/ noun

production line
a system of making a product, where each mnid mənt/ noun the process of over-
item such as a car moves slowly through the seeing the making and selling of a product as
factory with new sections added to it as it an independent item
product mix /prɒdkt miks/ noun the
product mix
goes along 쑗 He works on the production

line. 쑗 She is a production-line employee. range of different products which a com-
production manager /prədkʃən
production manager
|
pany has for sale
product mix decisions /prɒdkt miks
product mix decisions
mnid ə/ noun the person in charge of the

production department disi (ə)nz/ plural noun decisions about
|
production overhead /prədkʃən

production overhead
|
which products or services to concentrate on
əυvəhed/ noun the indirect costs of pro- in order to maximise total profits
product unit cost /prɒdkt junit
product unit cost
duction which are absorbed into the cost of

goods produced. Also called factory over- kɒst/ noun the cost of manufacturing a sin-
head gle unit of product

175 profit-related bonus

Also called consolidated profit and loss
profession
profession /prəfeʃ(ə)n/ noun 1. an occu-

|
pation for which official qualifications are account, P&L statement

needed and which is often made a lifelong profit before interest and tax
profit before interest and tax /prɒfit

career 쑗 The managing director is an bifɔ intrəst ən tks/ noun operating
|
accountant by profession. 쑗 HR manage- profit shown before deducting interest on

ment is now more widely recognised as a borrowings and tax due to the Inland Reve-
profession. 2. a group of specialised workers nue. Abbreviation PBIT
쑗 the accounting profession 쑗 the legal pro- profit before tax
fession profit before tax /prɒfit bifɔ tks/

noun same as pretax profit
‘…one of the key advantages of an profit centre
accountancy qualification is its worldwide profit centre /prɒfit sentə/ noun a per-
marketability. Other professions are not so son, unit or department within an organisa-
lucky: lawyers, for example, are much tion which is considered separately for the
more limited in where they can work’ purposes of calculating a profit 쑗 We count
[Accountancy] the kitchen equipment division as a single
professional
professional /prəfeʃ(ə)nəl/ adjective

|
profit centre.
profit distribution
referring to one of the professions 쑗 The profit distribution /prɒfit

accountant sent in his bill for professional distribjuʃ(ə)n/ noun the allocation of
services. 쑗 We had to ask our lawyer for profits to different recipients such as share-
professional advice on the contract. 왍 pro- holders and owners, or for different pur-
fessional man, professional woman a man poses such as research or investment
or woman who works in one of the profes- profiteer
profiteer /prɒfitiə/ noun a person who |
sions such as a lawyer, doctor or accountant makes too much profit, especially when
professional fees
professional fees /prəfeʃ(ə)nəl fiz/ | goods are rationed or in short supply

plural noun fees paid to lawyers, account- profiteering
profiteering /prɒfitiəriŋ/ noun the |
ants, architects, etc. practice of making too much profit

profit
profit /prɒfit/ noun money gained from a profit from ordinary activities
profit from ordinary activities /prɒfit

sale which is more than the money spent on frəm ɔd(ə)n(ə)ri ktivitiz/ noun profits |
making the item sold or on providing the earned in the normal course of business, as
service offered 왍 to take your profit to sell opposed to profits from extraordinary
shares at a higher price than was paid for sources such as windfall payments
them, and so realise the profit, rather than to
keep them as an investment 왍 to make a
profit-making
profit-making /prɒfit meikiŋ/ adjec-

profit to have more money as a result of a tive making a profit, or operated with the pri-
deal mary objective of making a profit 쑗 The
profitability whole project was expected to be profit-mak-
profitability /prɒfitəbiliti/ noun 1. the
|
ing by 2001 but it still hasn’t broken even. 쑗
ability to make a profit 쑗 We doubt the prof- It is hoped to make it into a profit-making
itability of the project. 2. the amount of concern.
profit made as a percentage of costs profit margin
profitability index profit margin /prɒfit mɑd in/ noun

profitability index /prɒfitəbiliti |
the percentage difference between sales

indeks/ noun a figure that is the current income and the cost of sales
estimated final value of an investment profit maximisation
divided by the amount of the original invest- profit maximisation /prɒfit

ment mksimaizeiʃ(ə)n/ noun the notion that
profitable
profitable /prɒfitəb(ə)l/ adjective mak- the aim of a business is to maximise profits

profit on ordinary activities before tax
ing a profit 쑗 She runs a very profitable profit on ordinary activities before
employment agency. tax /prɒfit ɒn ɔd(ə)n(ə)ri ktivitiz bi | |
profitably
profitably /prɒfitəbli/ adverb making a fɔ tks/ noun same as pretax profit
profit planning
profit 쑗 The aim of every company must be profit planning /prɒfit plniŋ/ noun
to trade profitably. the process of developing a plan that out-
profit after tax
profit after tax /prɒfit ɑftə tks/ lines revenue and expenses for a given
noun same as net profit period
profit-related
profit and loss account
profit and loss account /prɒfit ənd profit-related /prɒfit rileitid/ adjective |
lɒs steitmənt/ noun the accounts for a linked to profit

profit-related bonus
company showing expenditure and income profit-related bonus /prɒfit rileitid |
over a period of time, usually one calendar bəυnəs/ noun a bonus paid which is related
year, balanced to show a final profit or loss. to the amount of profit a company makes

profit-related pay 176

profit-related pay /prɒfit rileitid pei/ to go ahead 쑗 The contract is progressing
profit-related pay
noun pay including bonuses which is linked through various departments.

to profit progressive /prəresiv/ adjective mov-
progressive
profit retained for the year /prɒfit ri ing forward in stages

profit retained for the year
teinid fə ðə jiə/ noun same as retained progressive tax /prəresiv tks/ noun
progressive tax
earnings a tax with a rate that increases as income

profit-sharing /prɒfit ʃeəriŋ/ noun 1. increases
profit-sharing
an arrangement whereby employees get a progressive taxation /prəresiv tk

progressive taxation
| |
share of the profits of the company they seiʃ(ə)n/ noun a taxation system where tax
work for 쑗 The company runs a profit-shar- levels increase as the income is higher. Also
ing scheme. 2. the practice of dividing prof- called graduated taxation
its among employees prohibitive /prəυhibitiv/ adjective with
prohibitive
profit squeeze /prɒfit skwiz/ noun a

profit squeeze
a price so high that you cannot afford to pay

strict control of the amount of profits which it 쑗 The cost of redesigning the product is
companies can pay out as dividend prohibitive.
profit-taking /prɒfit teikiŋ/ noun the project /prɒd ekt/ noun 1. a plan 쑗 She
profit-taking project
act of selling investments to realise the has drawn up a project for developing new
profit, rather than keeping them 쑗 Share markets in Europe. 2. a particular job of
prices fell under continued profit-taking. work which follows a plan 쑗 We are just
‘…some profit-taking was seen yesterday completing an engineering project in North
as investors continued to lack fresh incen- Africa. 쑗 The company will start work on
tives to renew buying activity’ [Financial the project next month.
Times] project accounting /prɒd ekt ə
project accounting
profit variance /prɒfit veəriəns/ noun kaυntiŋ/ noun the form of accounting in
profit variance
a discrepancy between actual profit and which financial reports are produced in
budgeted profit order to track costs on individual projects
profit-volume chart /prɒfit vɒljum
profit-volume chart
project costing /prɒd ekt kɒstiŋ/

project costing
tʃɑt/ noun a chart that shows how profit noun a system used for collecting informa-
varies with changes in volume of production tion on the costs of a specific business activ-
profit warning noun an announced
profit warning
ity or project
projected /prəd ektid/
projected
income level for a company that is signifi- adjective

|
cantly lower than that forecast by analysts planned or expected

pro forma /prəυ fɔmə/ verb to issue a
pro forma
project finance /prɒd ekt fainns/
project finance
pro forma invoice 쑗 Can you pro forma this noun money raised for a specific undertak-
order? ing, usually a construction or development
pro-forma financial statement /prəυ
pro-forma financial statement
project
projection /prəd ekʃən/ noun a forecast
projection
fɔmə fainnʃəl steitmənt/ noun a pro-

| |
jection showing a business’s financial state- of something which will happen in the
ments after the completion of a planned future 쑗 Projection of profits for the next
transaction three years. 쑗 The sales manager was asked
pro forma invoice /prəυ fɔmə
pro forma invoice
to draw up sales projections for the next
invɔis/, pro forma /prəυ fɔmə/ noun an three years.
invoice sent to a buyer before the goods are project planning /prɒd ekt plniŋ/
project planning
sent, so that payment can be made or so that noun the process of making decisions about
goods can be sent to a consignee who is not major, long-term capital investments
the buyer 쑗 They sent us a pro forma promise /prɒmis/ noun an act of saying
promise
invoice. 쑗 We only supply that account on that you will do something 쐽 verb to say that
pro forma. you will do something 쑗 They promised to
programme evaluation and review
programme evaluation and review technique
pay the last instalment next week.
technique /prəυrm ivljueiʃ(ə)n | promissory note /prɒmisəri nəυt/
promissory note
ən rivju teknik/ noun a way of planning

| | noun a document stating that someone
and controlling a large project, concentrat- promises to pay an amount of money on a
ing on scheduling and completion on time. specific date
Abbreviation PERT promote /prəməυt/ verb 1. to give some-
promote
progress noun /prəυres/ the movement one a more important job or to move some-
progress
of work towards completion 쑗 to report on one to a higher grade 쑗 He was promoted

the progress of the work or of the negotia- from salesman to sales manager. 2. to adver-
tions 쐽 verb /prəυres/ to move forward, | tise a product

177 protest
promotion /prəməυʃ(ə)n/ noun the fact proprietary drug /prəpraiət(ə)ri dr/
promotion proprietary drug
| |
of being moved up to a more important job noun a drug which is made by a particular
쑗 I ruined my chances of promotion when I company and marketed under a brand name
argued with the managing director. 쑗 The proprietor /prəpraiətə/ noun the owner
proprietor
job offers good promotion chances or proof a business, especially in the hospitality
motion prospects. industry 쑗 She is the proprietor of a hotel or
‘…finding the right promotion to appeal to a hotel proprietor. 쑗 The restaurant has a
children is no easy task’ [Marketing] new proprietor.
‘…you have to study the profiles and peo- proprietors’ interest /prəpraiətəz
proprietors’ interest
ple involved very carefully and tailor the intrəst/ noun the amount which the owners
promotion to fill those needs’ [Marketing of a business have invested in the business
Week]
pro rata /prəυ rɑtə/ adjective, adverb at
pro rata
prompt /prɒmpt/ adjective rapid or done

prompt
a rate which varies according to the size or

immediately 쑗 We got very prompt service importance of something 쑗 When part of the
at the complaints desk. 쑗 Thank you for your shipment was destroyed we received a pro
prompt reply to my letter. rata payment. 쑗 The full-time pay is £800 a
proof /pruf/ noun evidence which shows
proof
week and the part-timers are paid pro rata.

that something is true prospect /prɒspekt/ noun a chance or
prospect
-proof /pruf/ suffix protected from the

-proof
possibility that something will happen in the

negative effect of something 쑗 an inflation- future 왍 her job prospects are good she is
proof pension very likely to find a job
property /prɒpəti/ noun 1. land and
property
prospective /prəspektiv/ adjective pos-

prospective
buildings 쑗 Property taxes are higher in the sibly happening in the future
inner city. 쑗 They are assessing damage to prospective dividend /prəspektiv
prospective dividend
property or property damage after the storm. dividend/ noun same as forecast divi-
쑗 The commercial property market is boom- dend
ing. 2. a building 쑗 We have several proper-
prospective P/E ratio /prəspektiv pi
prospective P/E ratio
ties for sale in the centre of the town. |
i reiʃiəυ/ noun a P/E ratio expected in the

property bond /prɒpəti bɒnd/ noun an
property bond
future on the basis of forecast dividends

investment in a fund invested in properties
prospects /prɒspekts/ plural noun the
prospects
or in property companies
possibilities for the future
property company /prɒpəti
property company
prospectus /prəspektəs/ noun a docu-

prospectus
kmp(ə)ni/ noun a company which buys |
buildings to lease them ment which gives information to attract buy-

ers or customers 쑗 The restaurant has peo-
proportion /prəpɔʃ(ə)n/ noun a part of a
proportion
|
ple handing out prospectuses in the street.
total 쑗 A proportion of the pre-tax profit is
set aside for contingencies. 쑗 Only a small ‘…when the prospectus emerges, existing
shareholders and any prospective new
proportion of our sales comes from retail investors can find out more by calling the
shops. free share information line; they will be
proportional /prəpɔʃ(ə)nəl/ adjective
proportional
| sent a leaflet. Non-shareholders who regis-

increasing or decreasing at the same rate as ter in this way will receive a prospectus
something else 쑗 The increase in profit is when it is published; existing shareholders
proportional to the reduction in overheads. will be sent one automatically’ [Financial
proportionally /prəpɔʃ(ə)nəli/ adverb
proportionally
|
Times]
protectionism /prətekʃəniz(ə)m/ noun
protectionism
in a way that is proportional |
proportional taxation /prəpɔʃ(ə)nəl

proportional taxation
|
the practice of protecting producers in the
tkseiʃ(ə)n/ noun a tax system in which
|
home country against foreign competitors
the tax collected is in constant proportion to by banning or taxing imports or by imposing
the income being taxed, i.e. as income rises import quotas
protective tariff /prətektiv trif/
protective tariff
so tax rises proportionately |
proprietary /prəpraiət(ə)ri/ noun,

proprietary
|
noun a tariff which tries to ban imports to
adjective a product, e.g. a medicine which is stop them competing with local products
pro tem /prəυ tem/ adverb temporarily,
pro tem
made and owned by a company

proprietary company /prəpraiət(ə)ri
proprietary company
|
for a time
kmp(ə)ni/ noun US a company formed to protest /prəυtest/ noun an official docu-
protest
invest in stock of other companies so as to ment which proves that a bill of exchange
control them. Abbreviation pty has not been paid

provide 178
provide /prəvaid/ verb 1. to give or sup- present 쑗 The proxy votes were all in favour
provide
ply something 2. to put money aside in of the board’s recommendation.

accounts to cover expenditure or loss in the PRT abbreviation petroleum revenue tax
PRT
future 쑗 £25,000 is provided against bad prudence /prudəns/ noun an accounting

prudence
debts. approach that, in cases where there are alter-

provident /prɒvid(ə)nt/ adjective pro-
provident
native procedures or values, favours choos-

viding benefits in case of illness, old age or ing the one that results in a lower profit, a
other cases of need 쑗 a provident fund 쑗 a lower asset value and a higher liability value
provident society prudent /prudənt/ adjective careful, not
prudent
provider of capital /prəvaidər əv

provider of capital
| taking any risks

kpit(ə)l/ noun a person or company prudential ratio /prudenʃ(ə)l reiʃiəυ/
prudential ratio
which provides capital to a business, usually noun a ratio of capital to assets which a bank
by being a shareholder feels it is prudent to have, according to EU
provision /prəvi (ə)n/ noun an amount
provision
|
regulations
PSBR abbreviation Public Sector Borrow-
PSBR
of money put aside in accounts for antici-

pated expenditure where the timing or ing Requirement
amount of expenditure is uncertain, often for Pty abbreviation proprietary company
Pty
doubtful debts 쑗 The bank has made a £2m Pty Ltd abbreviation private limited com-
Pty Ltd
provision for bad debts or a $5bn provision pany

against Third World loans. public /pblik/ adjective 1. referring to all
public
‘…landlords can create short lets of dwell- the people in general 2. referring to the gov-
ings which will be free from the normal ernment or the state
security of tenure provisions’ [Times] Public Accounts Committee /pblik
Public Accounts Committee
provisional /prəvi (ə)n(ə)l/ adjective

provisional
|
əkaυnts kəmiti/ noun a committee of the
| |
temporary, not final or permanent 쑗 The House of Commons which examines the
sales department has been asked to make a spending of each department and ministry
provisional forecast of sales. 쑗 The provi- public company /pblik kmp(ə)ni/
public company
sional budget has been drawn up for each noun same as public limited company
department. public debt /pblik det/ noun the
public debt
provisionally /prəvi (ə)nəli/ adverb not

provisionally
|
money that a government or a set of govern-
finally 쑗 The contract has been accepted ments owes
provisionally. public deposits /pblik dipɒzits/ plu-
public deposits
provisions /prəvi (ə)nz/ plural noun

provisions
| ral noun in the United Kingdom, the govern-

money put aside in accounts for anticipated ment’s credit monies held at the Bank of
expenditure where the timing or amount of England
expenditure is uncertain. If the expenditure public expenditure /pblik ik
public expenditure
is not certain to occur at all, then the money spenditʃə/ noun money spent by the local
set aside is called a ‘contingent liability’. or central government
proxy /prɒksi/ noun 1. a document which
proxy
public finance /pblik fainns/ noun

public finance
gives someone the power to act on behalf of the raising of money by governments by
someone else 쑗 to sign by proxy 2. a person taxes or borrowing, and the spending of it
who acts on behalf of someone else 쑗 She public funds /pblik fndz/ plural
public funds
asked the chairman to act as proxy for her. noun government money available for
proxy form /prɒksi fɔm/, proxy card
proxy form
expenditure
/prɒksi kɑd/ noun a form that sharehold- publicity budget /pblisiti bd it/
publicity budget
ers receive with their invitations to attend an noun money allowed for expenditure on
AGM, and that they fill in if they want to publicity
appoint a proxy to vote for them on a resolu- public limited company /pblik
public limited company
tion limitid kmp(ə)ni/ noun a company

proxy statement /prɒksi steitmənt/
proxy statement
whose shares can be bought on the Stock

noun a document, filed with the SEC, out- Exchange. Abbreviation Plc, PLC, plc.
lining executive pay packages, option grants Also called public company
and other perks, and also giving details of publicly held company /pblikli held
publicly held company
dealings by executives in shares of the com- kmp(ə)ni/ noun US a company controlled

pany by a few shareholders or its directors, but
proxy vote /prɒksi vəυt/ noun a vote
proxy vote
which is quoted on the Stock Exchange and

made on behalf of someone who is not which allows the public to hold a few shares

179 pyramid selling

public offering /pblik ɒf(ə)riŋ/ noun purchase price /ptʃis prais/ noun a
public offering purchase price
an offering of new shares in a corporation price paid for something

for sale to the public as a way of launching purchase requisition /ptʃis rekwi
purchase requisition
the corporation on the Stock Exchange ziʃ(ə)n/ noun an instruction from a depart-
public ownership /pblik əυnəʃip/ ment within an organisation to its purchas-
public ownership
noun a situation in which the government ing department to buy goods or services,
owns a business, i.e. where an industry is stating the kind and quantity required, and
nationalised forming the basis of a purchase order
purchase tax /ptʃis tks/ noun a tax
purchase tax
public placing /pblik pleisiŋ/, public

public placing
placement /pblik pleismənt/ noun an paid on things which are bought

act of offering a new issue of shares to purchasing department /ptʃisiŋ di
purchasing department
investing institutions, though not to private pɑtmənt/ noun the section of a company
investors in general which deals with the buying of stock, raw
public sector /pblik sektə/ noun
public sector
materials, equipment, etc.
nationalised industries and services 쑗 a purchasing
purchasing manager
manager /ptʃisiŋ
report on wage rises in the public sector or mnid ə/ noun the head of a purchasing
on public-sector wage settlements Also department
called government sector purchasing officer /ptʃisiŋ ɒfisə/
purchasing officer
Public Sector Borrowing Require-

Public Sector Borrowing Requirement
noun a person in a company or organisation

ment /pblik sektə bɒrəυiŋ ri | who is responsible for buying stock, raw
kwaiəmənt/ noun the amount of money materials, equipment, etc.
which a government has to borrow to pay for purchasing power /ptʃisiŋ paυə/
purchasing power
its own spending. Abbreviation PSBR noun the quantity of goods which can be
public spending /pblik spendiŋ/ bought by a particular group of people or
public spending
noun spending by the government or by with a particular sum of money 쑗 the pur-
local authorities chasing power of the school market 쑗 The
Public Trustee /pblik trsti/ noun
Public Trustee
|
purchasing power of the pound has fallen
an official who is appointed as a trustee of an over the last five years.
pure endowment /pjυər indaυmənt/
pure endowment
individual’s property |
published accounts /pbliʃit ə

published accounts
|
noun a monetary gift the use of which is
kaυnts/ plural noun the accounts of a com- strictly prescribed by the donor
pany which have been prepared and audited put down phrasal verb 1. to make a deposit
and then must be published by sending to the 쑗 to put down money on a house 2. to write
shareholders and other interested parties an item in a ledger or an account book 쑗 to
pump priming /pmp praimiŋ/ noun
pump priming
put down a figure for expenses
government investment in new projects put up phrasal verb 1. 왍 who put up the
which it hopes will benefit the economy money for the shop? who provided the in-
vestment money for the shop to start? 왍 to
purchase book /ptʃis bυk/ noun a
purchase book
put something up for sale to advertise that

book in which purchases are recorded something is for sale 쑗 When he retired he
purchase daybook /ptʃis deibυk/,
purchase daybook
decided to put his town flat up for sale. 2. to

purchases daybook /ptʃisiz deibυk/ increase something, to make something
noun a book which records the purchases higher 쑗 The shop has put up all its prices
made each day by 5%.
purchase invoice /ptʃis invɔis/
purchase invoice
put option /pυt ɒpʃən/ noun an option

put option
noun an invoice received by a purchaser to sell a specified number of shares at a spec-

from a seller ified price within a specified period of time.
purchase ledger /ptʃis led ə/ noun
purchase ledger
Also called put

a book in which purchases are recorded PV abbreviation present value
PV
purchase order /ptʃis ɔdə/ noun an

purchase order
pyramid selling /pirəmid seliŋ/ noun

pyramid selling
official order made out by a purchasing an illegal way of selling goods or invest-
department for goods which a company ments to the public, where each selling agent
wants to buy 쑗 We cannot supply you with- pays for the franchise to sell the product or
out a purchase order number. service, and sells that right on to other
purchase order lead time /ptʃis
purchase order lead time
agents together with stock, so that in the end

ɔdə lid taim/ noun the interval between the person who makes the most money is the
the placing of an order for raw materials or original franchiser, and sub-agents or inves-
parts and their being delivered tors may lose all their investments

pyramid selling 180

‘…much of the population had committed pay the original investors until the money
their life savings to get-rich-quick pyramid runs out – which inevitably collapsed’
investment schemes – where newcomers [Times]

Q
qualification and has recent post-qualifica-
qualification
qualification /kwɒlifikeiʃ(ə)n/ noun a |
document or some other formal proof of the tion experience, and sufficient knowledge of
fact that someone has successfully com- the state of the market, with reference to the
pleted a specialised course of study or has location and category of the tangible fixed
acquired a skill 쑗 You must have the right asset being valued
qualifications for the job. 쑗 Job-hunting is qualifying distribution
qualifying distribution /kwɒlifaiiŋ

difficult if you have no qualifications. distribjuʃ(ə)n/ noun a payment of a div-
|
‘…personnel management is not an activ- idend, or other distribution of profits, that

ity that can ever have just one set of quali- was subject, in the UK, to advance corpora-
fications as a requirement for entry into it’ tion tax before it was scrapped in 1999
[Personnel Management] qualifying period
qualification of accounts qualifying period /kwɒlifaiiŋ piəriəd/

qualification of accounts noun a time which has to pass before some-
/kwɒlifikeiʃ(ə)n əv əkaυnts/ noun same
thing or someone qualifies for something,
|
as auditors’ qualification
qualified
e.g. a grant or subsidy 쑗 There is a six-
qualified /kwɒlifaid/ adjective 1. having month qualifying period before you can get
passed special examinations in a subject 쑗 a grant from the local authority.
She is a qualified accountant. 쑗 We have qualifying shares
appointed a qualified designer to supervise qualifying shares /kwɒlifaiiŋ ʃeəz/

the decorating of the new reception area. 2. plural noun the number of shares you need
with some reservations or conditions 쑗 to earn to get a bonus issue or to be a director
qualified acceptance of a contract 쑗 The of the company, etc.
qualitative factors
plan received qualified approval from the qualitative factors /kwɒlitətiv

board. fktəz/ plural noun factors that inform a
‘…applicants will be professionally quali- business decision but cannot be expressed
fied and ideally have a degree in Com- numerically
merce and postgraduate management quality assurance
quality assurance /kwɒliti əʃυərəns/

|
qualifications’ [Australian Financial

noun the procedures that a company uses to
Review]
qualified acceptance of a bill
ensure compliance with a quality standard
qualified acceptance of a bill quality control
/kwɒlifaid əkseptəns əv ə bil/ noun an

|
quality control /kwɒliti kəntrəυl/ |
agreement to pay a bill of exchange pro- noun the process of making sure that the
vided that certain conditions are met quality of a product is good
quality costs
qualified accounts
qualified accounts /kwɒlifaid ə |

quality costs /kwɒliti kɒsts/ plural
kaυnts/ plural noun accounts which have noun costs incurred when goods produced
been noted by the auditors because they con- or services delivered fail to meet quality
tain something with which the auditors do standards
quango
not agree quango /kwŋəυ/ noun an official

qualified domestic trust
qualified domestic trust /kwɒlifaid body, set up by a government to investigate

dəmestik trst/ noun a trust for the non-
|
or deal with a special problem (NOTE: The
citizen spouse of a US citizen, affording tax plural is quangos.)
advantages at the time of the citizen’s death quantifiable
quantifiable /kwɒntifaiəb(ə)l/ adjective

possible to quantify 쑗 The effect of the
qualified valuer
qualified valuer /kwɒlifaid vljυə/

noun a person conducting a valuation who change in the discount structure is not quan-
holds a recognised and relevant professional tifiable.

quantitative factors 182

quantitative factors /kwɒntitətiv was rationed, people had to queue for bread.
quantitative factors
fktəz/ plural noun factors that inform a 쑗 We queued for hours to get tickets. 쑗 A list
business decision but cannot be expressed of companies queueing to be launched on
numerically the Stock Exchange. 쑗 The candidates
quantity
quantity discount
discount /kwɒntiti queued outside the interviewing room.

diskaυnt/ noun a discount given to people quick asset /kwik set/ noun an asset
quick asset
who buy large quantities that can be converted into cash relatively
quantum meruit /kwntυm meruit/
quantum meruit
quickly
quick ratio /kwik reiʃiəυ/ noun same as
quick ratio
phrase a Latin phrase meaning ‘as much as

has been earned’ liquidity ratio
quarter /kwɔtə/ noun 1. one of four quid /kwid/ noun one pound Sterling
quarter quid
equal parts (25%) 쑗 She paid only a quarter (slang)

of the list price. 2. a period of three months quid pro quo /kwid prəυ kwəυ/ noun
quid pro quo
쑗 The instalments are payable at the end of money paid or an action carried out in return
each quarter. for something 쑗 She agreed to repay the
‘…corporate profits for the first quarter loan early, and as a quid pro quo the bank
showed a 4 per cent drop from last year’s released the collateral.
final three months’ [Financial Times] quorum /kwɔrəm/ noun a minimum
quorum
‘…economists believe the economy is number of people who have to be present at

picking up this quarter and will do better a meeting to make it valid
still in the second half of the year’ [Sunday quota /kwəυtə/ noun a limited amount of
quota
Times] something which is allowed to be produced,

quarter day /kwɔtə dei/ noun a day at
quarter day
imported, etc.
the end of a quarter, when rents, fees etc. ‘Canada agreed to a new duty-free quota
should be paid of 600,000 tonnes a year’ [Globe and Mail
quarterly /kwɔtəli/ adjective, adverb
quarterly
(Toronto)]
happening once every three months 쑗 There quota system /kwəυtə sistəm/ noun 1.
quota system
is a quarterly charge for electricity. 쑗 The a system where imports or supplies are reg-
bank sends us a quarterly statement. 쑗 We ulated by fixed maximum amounts 2. an
agreed to pay the rent quarterly or on a arrangement for distribution which allows
quarterly basis. each distributor only a specific number of
quarterly report /kwɔtəli ripɔt/
quarterly report
| items
noun the results of a corporation, produced quotation /kwəυteiʃ(ə)n/ noun an esti-
quotation
each quarter mate of how much something will cost 쑗

quartile /kwɔtail/ noun one of a series of They sent in their quotation for the job. 쑗
quartile
three figures below which 25%, 50% or 75% Our quotation was much lower than all the
of the total falls others. 쑗 We accepted the lowest quotation.
quasi- /kweizai/ prefix almost or which quote /kwəυt/ verb 1. to repeat words or a
quasi- quote
seems like 쑗 a quasi-official body reference number used by someone else 쑗

quasi-loan /kweizai ləυn/ noun an
quasi-loan
He quoted figures from the annual report. 쑗
agreement between two parties where one She replied, quoting the number of the
agrees to pay the other’s debts, provided that account. 2. to estimate what a cost or price
the second party agrees to reimburse the first is likely to be 쑗 to quote a price for supply-
at some later date ing stationery 쑗 Their prices are always
quasi-public corporation /kweizai
quasi-public corporation
quoted in dollars. 쑗 He quoted me a price of
pblik kɔpəreiʃ(ə)n/ noun a US institu-
|
£1,026. 쐽 noun an estimate of how much
tion which is privately owned, but which something will cost (informal) 쑗 to give
serves a public function, such as the Federal someone a quote for supplying computers 쑗
National Mortgage Association We have asked for quotes for refitting the
queue /kju/ noun 1. a line of people wait-
queue
shop. 쑗 Her quote was the lowest of three.
quoted company /kwəυtid
quoted company
ing one behind the other 쑗 to form a queue

or to join a queue 쑗 Queues formed at the kmp(ə)ni/ noun a company whose shares
doors of the bank when the news spread can be bought or sold on the Stock Exchange
quoted investments /kwəυtid in
quoted investments
about its possible collapse. (NOTE: The US |
term is line.) 2. a series of documents such vestmənts/ plural noun investments which
as orders or application forms which are are listed on a stock exchange
dealt with in order 쐽 verb to form a line one quote-driven system /kwəυt
quote-driven system
after the other for something 쑗 When food driv(ə)n sistəm/ noun a system of work-

183 quoted shares

ing a stock market, where marketmakers quoted shares
/kwəυtid ʃeəz/,
quoted shares
quote a price for a stock. Compare order- quoted stocks plural noun shares which
driven system can be bought or sold on the Stock Exchange

R
R&D abbreviation research and develop-
racket R&D
racket /rkit/ noun an illegal deal which

makes a lot of money 쑗 She runs a cut-price ment
ticket racket. random check /rndəm tʃek/ noun a
random check
rack rent
rack rent /rk rent/ noun a very high rent check on items taken from a group without
raise any special selection
raise /reiz/ noun US an increase in salary
random sample /rndəm sɑmpəl/
random sample
쑗 He asked the boss for a raise. 쑗 She got

her raise last month. (NOTE: The UK term is noun a sample taken without any selection
range /reind / noun 1. a series of items 쑗
range
rise.) 쐽 verb 1. to increase or to make higher

쑗 The government has raised the tax levels. Their range of products or product range is
쑗 The company raised its dividend by 10%. too narrow. 쑗 There are a whole range of
쑗 This increase in production will raise the alternatives for the new salary scheme. 2. a
standard of living in the area. 2. to obtain scale of items from a low point to a high one
money or to organise a loan 쑗 The company 왍 range of prices the difference between
is trying to raise the capital to fund its the highest and lowest price for a share or
expansion programme. 쑗 The government bond over a period of time
raises more money by indirect taxation than rank /rŋk/ noun a position in a company
rank
by direct. or an organisation, especially one which

‘…the company said yesterday that its shows how important someone is relative to
recent share issue has been oversub- others 쑗 All managers are of equal rank. 쑗
scribed, raising A$225.5m’ [Financial Promotion means moving up from a lower
Times] rank. 쐽 verb 1. to classify in order of impor-
‘…investment trusts can raise capital, but tance 쑗 Candidates are ranked in order of
this has to be done as a company does, by their test results. 2. to be in a position 쑗 The
a rights issue of equity’ [Investors Chron- non-voting shares rank equally with the vot-
icle] ing shares. 쑗 Deferred ordinary shares do
‘…over the past few weeks, companies not rank for dividend.
rate /reit/ noun 1. the money charged for
rate
raising new loans from international banks

have been forced to pay more’ [Financial time worked or work completed 2. an
Times] amount of money paid, e.g. as interest or
rally
rally /rli/ noun a rise in price when the dividend, shown as a percentage 3. the value
trend has been downwards 쑗 Shares staged of one currency against another 쑗 What is
today’s rate or the current rate for the dol-
a rally on the Stock Exchange. 쑗 After a
lar? 4. an amount, number or speed com-
brief rally shares fell back to a new low. 쐽 pared with something else 쑗 the rate of
verb to rise in price, when the trend has been
increase in redundancies 쑗 The rate of
downwards 쑗 Shares rallied on the news of absenteeism or The absenteeism rate always
the latest government figures. increases in fine weather.
‘…when Japan rallied, it had no difficulty rateable value /reitəb(ə)l vlju/ noun
rateable value
in surpassing its previous all-time high, the value of a property as a basis for calcu-
and this really stretched the price-earnings
ratios into the stratosphere’ [Money lating local taxes
rate of exchange /reit əv ikstʃeind /
rate of exchange
Observer] |
‘…bad news for the US economy ulti- noun same as exchange rate 쑗 The current
mately may have been the cause of a late rate of exchange is $1.60 to the pound.
rate of interest /reit əv intrəst/ noun
rate of interest
rally in stock prices yesterday’ [Wall

Street Journal] same as interest rate

185 real return after tax

rate of return /reit əv ritn/ noun the real earnings /riəl niŋz/ plural noun
rate of return real earnings
amount of interest or dividend which comes income which is available for spending after
from an investment, shown as a percentage tax and other contributions have been
of the money invested deducted, corrected for inflation. Also
rate of sales /reit əv seilz/ noun the
rate of sales
called real income, real wages
real estate /riəl isteit/ noun property in
real estate
speed at which units are sold |
rates /reits/ plural noun local UK taxes

rates
the form of land or buildings
formerly levied on property in the UK and ‘…on top of the cost of real estate, the
now replaced by the council tax investment in inventory and equipment to
open a typical warehouse comes to around
rating /reitiŋ/ noun 1. the act of giving
rating
$5 million’ [Duns Business Month]

something a value, or the value given 2. the
real estate agent /riəl isteit eid ənt/,
real estate agent
valuing of property for local taxes

|
real estate broker noun US a person who

rating agency /reitiŋ eid ənsi/ noun
rating agency
sells property for customers

an organisation which gives a rating to com- real estate investment trust /riəl i
real estate investment trust
panies or other organisations issuing bonds steit investmənt trst/ noun a public
|
rating officer /reitiŋ ɒfisə/ noun an

rating officer
trust company which invests only in prop-

official in a local authority who decides the erty. Abbreviation REIT
rateable value of a commercial property real exchange rate /riəl ikstʃeind
real exchange rate
ratio /reiʃiəυ/ noun a proportion or quan-

ratio
reit/ noun an exchange rate that has been

tity of something compared to something adjusted for inflation
else 쑗 the ratio of successes to failures 쑗 real income /riəl inkm/ noun same as
real income
Our product outsells theirs by a ratio of two real earnings

to one. 쑗 With less manual work available, real interest rate /riəl intrəst reit/
real interest rate
the ratio of employees to managers is noun an interest rate after taking inflation
decreasing. into account
ratio analysis /reiʃiəυ ənləsis/ noun
ratio analysis
|
real investment /riəl investmənt/
real investment
a method of analysing the performance of a noun the purchase of assets such as land,
company by showing the figures in its property, and plant and machinery as
accounts as ratios and comparing them with opposed to the acquisition of securities
those of other companies realisation /riəlaizeiʃ(ə)n/, realization
realisation
raw materials /rɔ mətiəriəlz/ plural noun the act of making real 왍 the realisa-
raw materials
noun basic materials which have to be tion of a project putting a project into
treated or processed in some way before action 쑗 The plan moved a stage nearer
they can be used, e.g. wood, iron ore or realisation when the contracts were signed.
crude petroleum realisation concept /riəlaizeiʃ(ə)n
realisation concept
R/D abbreviation refer to drawer kɒnsept/ noun the principle that increases
R/D
RDPR abbreviation refer to drawer please

RDPR
in value should only be recognised when the
represent assets in question are realised by being sold
to an independent purchaser
readjust /riəd st/ verb to adjust some-
readjust
realise /riəlaiz/, realize verb 1. to make

realise
thing again or in a new way, or to change in

response to new conditions 쑗 to readjust something become real 왍 to realise a
prices to take account of the rise in the costs project or a plan to put a project or a plan
of raw materials 쑗 to readjust salary scales into action 2. to sell for money 쑗 The com-
쑗 Share prices readjusted quickly to the
pany was running out of cash, so the board
news of the devaluation. decided to realise some property or assets. 쑗
The sale realised £100,000. 왍 realised gain
readjustment /riəd stmənt/ noun an
readjustment
|
or loss a gain or loss made when assets are
act of readjusting 쑗 a readjustment in pric- sold
ing 쑗 After the devaluation there was a realised profit /riəlaizd prɒfit/ noun
realised profit
period of readjustment in the exchange an actual profit made when something is

rates. sold, as opposed to paper profit
ready cash /redi kʃ/ noun money
ready cash
real rate of return /riəl reit əv ritn/

real rate of return
which is immediately available for payment noun an actual rate of return, calculated after
ready money /redi mni/ noun cash or
ready money
taking inflation into account

money which is immediately available real return after tax /riəl ritn ɑftə
real return after tax
real asset /riəl set/ noun a non-mova-

real asset
tks/ noun the return calculated after

ble asset such as land or a building deducting tax and inflation

realty 186
realty /riəlti/ noun property or real estate receipts and payments basis /risits
realty receipts and payments basis
real value /riəl vlju/ noun a value of

real value
ən peimənts beisis/ noun an accounting
an investment which is kept the same, e.g. by method in which receipts and payments are
index-linking accounted for when the money is actually
real wages /riəl weid iz/ plural noun
real wages
received or paid out, not necessarily when
same as real earnings they are entered in the books. Also called
cash basis
reassess /riəses/ verb to assess again 쑗
reassess
receivable /risivəb(ə)l/ adjective able to

receivable
The manager was asked to reassess the |
department staff, after the assessments were be received

receivables /risivəb(ə)lz/ plural noun
receivables
badly done by the supervisors. |
reassessment /riəsesmənt/ noun a

reassessment
|
money which is owed to a company
receive /risiv/ verb to get something
receive
new assessment |
rebate /ribeit/ noun 1. a reduction in the

rebate
which is given or delivered to you 쑗 We
amount of money to be paid 쑗 We are offer- received the payment ten days ago. 쑗 The
ing a 10% rebate on selected goods. 2. employees have not received any salary for
money returned to someone because they six months.
receiver /risivə/ noun same as official
receiver
have paid too much 쑗 She got a tax rebate at |
the end of the year. receiver

Receiver of Revenue /risivə əv
Receiver of Revenue
recapitalisation /rikpit(ə)lai
recapitalisation
|
| |
zeiʃ(ə)n/ noun a change in the capital revənju/ noun an informal term for the
structure of a company as when new shares South African Revenue Service as a whole
receiving /risiviŋ/ noun an act of getting
receiving
are issued, especially when undertaken to |
avoid the company going into liquidation something which has been delivered
receiving clerk /risiviŋ klɑk/ noun an
receiving clerk
receipt /risit/ noun 1. a piece of paper

receipt
| |
showing that money has been paid or that official who works in a receiving office
something has been received 쑗 He kept the receiving department /risiviŋ di
receiving department
| |
customs receipt to show that he had paid pɑtmənt/ noun a section of a company
duty on the goods. 쑗 She lost her taxi which deals with incoming goods or pay-
receipt. 쑗 Keep the receipt for items pur- ments
chased in case you need to change them receiving office /risiviŋ ɒfis/ noun an
receiving office
later. 2. the act of receiving something 쑗 office where goods or payments are received
Goods will be supplied within thirty days of receiving order /risiviŋ ɔdə/ noun an
receiving order
receipt of order. 쑗 Invoices are payable

|
order from a court appointing an official

within thirty days of receipt. 쑗 On receipt of receiver to a company
the notification, the company lodged an
recession /riseʃ(ə)n/ noun a period
recession
appeal. 쐽 verb to stamp or to sign a docu- |
ment to show that it has been received, or to where there is a decline in trade or in the
stamp an invoice to show that it has been economy 쑗 The recession has reduced prof-
paid 쑗 Receipted invoices are filed in the its in many companies. 쑗 Several firms have
ring binder. closed factories because of the recession.
reciprocal /risiprək(ə)l/ adjective done
reciprocal
receipts /risits/ plural noun money taken

receipts
|
|
in sales 쑗 to itemise receipts and expendi- by one person, company, or country to

ture 쑗 Receipts are down against the same another one, which does the same thing in
period of last year. return 쑗 We signed a reciprocal agreement
or a reciprocal contract with a Russian com-
‘…the public sector borrowing require- pany.
ment is kept low by treating the receipts
reciprocal allocation method /ri
reciprocal allocation method
from selling public assets as a reduction in |
borrowing’ [Economist] siprək(ə)l ləkeiʃ(ə)n meθəd/ noun a |
‘…gross wool receipts for the selling sea- method by which service department costs
son to end June appear likely to top $2 bil- are allocated to production departments
reciprocal holdings /risiprək(ə)l
reciprocal holdings
lion’ [Australian Financial Review] |
receipts and payments account /ri

receipts and payments account
|
həυldiŋz/ plural noun a situation in which
sits ən peimənts əkaυnt/ noun a report |
two companies own shares in each other to
of cash transactions during a period. It is prevent takeover bids
reciprocal trade /risiprək(ə)l treid/
reciprocal trade
used in place of an income and expenditure |
account when it is not considered appropri- noun trade between two countries
ate to distinguish between capital and reve- reciprocate /risiprəkeit/ verb to do the
reciprocate
nue transactions or to include accruals. same thing for someone as that person has

187 recycle
done for you 쑗 They offered us an exclusive record date /rekɔd deit/ noun same as
record date
agency for their cars and we reciprocated date of record

with an offer of the agency for our buses. recording /rikɔdiŋ/ noun the act of
recording
reckon /rekən/ verb to calculate some- making a note of something 쑗 the recording
reckon
thing 쑗 to reckon the costs at £25,000 쑗 We of an order or of a complaint

reckon the loss to be over £1m. 쑗 They records /rekɔdz/ plural noun documents
records
reckon the insurance costs to be too high. which give information 쑗 The names of cus-
recognise /rekənaiz/ verb to record an tomers are kept in the company’s records. 쑗
recognise
item in an account or other financial state- We find from our records that our invoice
ment 왍 statement of total recognised gains number 1234 has not been paid.
and losses financial statement showing recoup /rikup/ verb 왍 to recoup your
recoup
changes in shareholders’ equity during an losses to get back money which you thought
accounting period (see FRS 3) you had lost
recognised professional body
recognised professional body
recourse /rikɔs/ noun a right of a lender

recourse
/rekənaizd prəfeʃ(ə)nəl bɒdi/ noun a

|
to compel a borrower to repay money bor-
professional body which is in charge of the rowed
regulation of the conduct of its members and recover /rikvə/ verb 1. to get back
recover
is recognised by the FSA. Abbreviation something which has been lost 쑗 to recover
RPB damages from the driver of the car 쑗 to start
recognised qualification
recognised qualification
a court action to recover property 쑗 He

/rekənaizd kwɒlifikeiʃ(ə)n/ noun a
| never recovered his money. 쑗 The initial
qualification that employers and profes- investment was never recovered. 2. to get
sional bodies accept as worthwhile and valid better, to rise 쑗 The market has not recov-
reconcile /rekənsail/ verb to make two
reconcile
ered from the rise in oil prices. 쑗 The stock
financial accounts or statements agree 쑗 She market fell in the morning, but recovered
is trying to reconcile one account with during the afternoon.
another or to reconcile the two accounts. recoverable amount /rikv(ə)rəb(ə)l
recoverable amount
reconciliation /rekənsilieiʃ(ə)n/, rec-

reconciliation
|
əmaυnt/ noun the value of an asset, either
|
oncilement /rekənsailmənt/ noun the act the price it would fetch if sold, or its value to
of making two accounts or statements agree the company when used, whichever is the
larger figure
reconciliation statement /rekənsili
reconciliation statement
recovery /rikv(ə)ri/ noun 1. the act of

recovery
eiʃ(ə)n steitmənt/ noun a statement |
which explains how two accounts can be getting back something which has been lost
made to agree 쑗 to start an action for recovery of property
쑗 We are aiming for the complete recovery
reconstruction /rikənstrkʃən/ noun
reconstruction
|
of the money invested. 2. a movement
1. the process of building again 쑗 The eco- upwards of shares or of the economy 쑗 signs
nomic reconstruction of an area after a dis- of recovery after a slump 쑗 The economy
aster. 2. new way of organising staged a recovery.
record /rekɔd/ noun 1. a report of some-
record
rectification /rektifikeiʃ(ə)n/ noun

rectification
thing which has happened 쑗 The chairman

|
correction
signed the minutes as a true record of the
rectify /rektifai/ verb to correct some-
rectify
last meeting. 쑗 She has a very poor time-

keeping record. 왍 for the record or to keep thing, to make something right 쑗 to rectify
the record straight in order that everyone an entry (NOTE: rectifies – rectifying – rec-
knows what the real facts of the matter are 쑗 tified)
recurrent /rikrənt/ adjective happening
recurrent
For the record, I should like to say that these |
sales figures have not yet been checked by again and again 쑗 a recurrent item of
the sales department. 2. a description of expenditure 쑗 There is a recurrent problem
what has happened in the past 쑗 the sales- in supplying this part.
person’s record of service or service record recurring payments /rikriŋ
recurring payments
쑗 the company’s record in industrial rela- peimənts/ plural noun payments, such as
tions 3. a success which is better than any- mortgage interest or payments on a hire pur-
thing before 쑗 Last year was a record year chase agreement, which are made each
for the company. 쑗 Our top sales rep has set month
a new record for sales per call. recycle /risaik(ə)l/ verb to take waste
recycle
record book /rekɔd bυk/ noun a book

record book
material and process it so that it can be used

in which minutes of meetings are kept again

red 188
red /red/ noun the colour of debit or over-
red
government to reduce taxes not to increase

drawn balances in some bank statements 왍 them. 쑗 The company reduced output
in the red showing a debit or loss 쑗 My because of a fall in demand. 쑗 The govern-
bank account is in the red. 쑗 The company ment’s policy is to reduce inflation to 5%.
went into the red in 1998. 쑗 The company is reduced /ridjust/ adjective lower 쑗
reduced
out of the red for the first time since 1990. Reduced prices have increased unit sales. 쑗
Red Book /red bυk/ noun a document
Red Book
Prices have fallen due to a reduced demand

published on Budget Day, with the text of for the goods.
the Chancellor of the Exchequer’s financial reducing balance method /ridjusiŋ
reducing balance method
statement and budget bləns meθəd/ noun a method of depreci-

redeem /ridim/ verb to pay off a loan or
redeem
|
ating assets, where the asset is depreciated at
a debt 쑗 to redeem a mortgage 쑗 to redeem a constant percentage of its cost each year.
a debt Also called declining balance method
redeemable /ridiməb(ə)l/ adjective
redeemable
redundancy /ridndənsi/ noun the dis-

redundancy
|
|
referring to a bond which can be sold for missal of a person whose job no longer
cash needs to be done
redeemable government stock /ri
redeemable government stock
redundancy payment /ridndənsi

redundancy payment
diməb(ə)l v(ə)nmənt stɒk/ noun

|
peimənt/ noun a payment made to an

stock which can be redeemed for cash at employee to compensate for losing his or
some time in the future. In the UK, only the her job
War Loan is irredeemable.
redundancy rebate /ridndənsi
redundancy rebate
redeemable preference share /ri

redeemable preference share
|
|
diməb(ə)l pref(ə)rəns ʃeə/ noun a pref- ribeit/ noun a payment made to a com-
erence share which must be bought back by pany to compensate for redundancy pay-
the company at an agreed date and for an ments made
redundant /ridndənt/ adjective more
redundant
agreed price |
redeemable security /ridiməb(ə)l si

redeemable security
| |
than is needed, useless 쑗 a redundant clause
kjυəriti/ noun a security which can be in a contract 쑗 The new legislation has
redeemed at its face value at a specific date made clause 6 redundant. 쑗 Retraining can
in the future help employees whose old skills have
redemption /ridempʃən/ noun the
redemption
|
become redundant.
redundant staff /ridndənt stɑf/
redundant staff
repayment of a loan |
redemption date /ridempʃən deit/

redemption date
|
noun staff who have lost their jobs because
noun a date on which a loan or debt is due to they are not needed any more
re-export /riekspɔt/ verb to export
re-export
be repaid |
redemption value /ridempʃən vlju/

redemption value
|
something which has been imported
noun the value of a security when redeemed re-exportation /ri ekspɔteiʃ(ə)n/
re-exportation
redemption yield /ridempʃən jild/ noun the exporting of goods which have
redemption yield
noun a yield on a security including interest been imported

and its redemption value refer /rif/ verb 왍 ‘refer to drawer’
refer
redistribute /ridistribjut/ verb to

redistribute
|
words written on a cheque which a bank
move items, work or money to different refuses to pay and returns it to the person
areas or people 쑗 The government aims to who wrote it. Abbreviation R/D
redistribute wealth by taxing the rich and reference /ref(ə)rəns/ noun 1. the proc-
reference
giving grants to the poor. 쑗 The orders have ess of mentioning or dealing with something
been redistributed among the company’s 쑗 with reference to your letter of May 25th
factories. 2. a series of numbers or letters which make
redistributed cost /ridistribjυtid
redistributed cost
|
it possible to find a document which has
kɒst/ noun a cost that has been reassigned to been filed 쑗 our reference: PC/MS 1234 쑗
a different department within an organisa- Thank you for your letter (reference 1234).
tion 3. a written report on someone’s character or
redistribution
redistribution of wealth
of wealth ability 쑗 to write someone a reference or to

/ridistribjuʃən əv welθ/ noun the proc- give someone a reference 쑗 to ask appli-
ess of sharing wealth among the whole pop- cants to supply references 왍 to ask a com-
ulation pany for trade references or for bank ref-
reduce /ridjus/ verb to make something
reduce
| erences to ask for reports from traders or a

smaller or lower 쑗 They have reduced prices bank on the company’s financial status and
in all departments. 쑗 We were expecting the reputation

189 regulate
referral /rifrəl/ noun an action of refer- manufacturers. It is an intangible asset. 쑗
referral
ring or recommending someone to someone You can’t call your beds ‘Softn’kumfi’ – it is
refer to drawer please represent /ri
refer to drawer please represent
|
a registered trademark.
f tə drɔə pliz riprizent/ noun in the register of companies /red istər əv
register of companies
United Kingdom, written on a cheque by the kmp(ə)niz/ noun in the United Kingdom,
paying banker to indicate that there are cur- the list of companies maintained at Compa-
rently insufficient funds to meet the pay- nies House
ment, but that the bank believes sufficient register of directors /red istər əv dai
register of directors
funds will be available shortly. 쒁 ‘refer to rektəz/ noun an official list of the directors
drawer’. Abbreviation RDPR of a company which has to be sent to the
refinance /rifainns/ verb to replace
refinance
| Registrar of Companies
one source of finance with another registrant /red istrənt/ noun US com-
registrant
refund noun /rifnd/ money paid back 쑗 pany applying to register with the Securities
refund
The shoes don’t fit – I’m going to ask for a and Exchange Commission
refund. 쑗 She got a refund after complaining registrar /red istrɑ/ noun a person who
registrar
to the manager. 쐽 verb /rifnd/ 1. to pay | keeps official records

back money 쑗 to refund the cost of postage Registrar of Companies /red istrɑ
Registrar of Companies
쑗 All money will be refunded if the goods are əv kmp(ə)niz/ noun a government offi-
not satisfactory. 2. to borrow money to cial whose duty is to ensure that companies
repay a previous debt are properly registered, and that, when reg-
refundable /rifndəb(ə)l/ adjective pos-
refundable
| istered, they file accounts and other informa-

sible to pay back 쑗 We ask for a refundable tion correctly
deposit of £20. registration /red istreiʃ(ə)n/ noun the
registration
register /red istə/ noun an official list 쑗

register
act of having something noted on an official

to enter something in a register 쑗 to keep a list 쑗 the registration of a trademark or of a
register up to date 쑗 people on the register share transaction
of electors 쐽 verb 1. to write something in registration fee /red istreiʃ(ə)n fi/
registration fee
an official list 쑗 to register a fall in the num- noun 1. money paid to have something reg-
bers of unemployed teenagers 쑗 To register istered 2. money paid to attend a conference
a company you must pay a fee to Companies registration
registration statement
statement /red i |
House. 쑗 When a property is sold, the sale is streiʃ(ə)n steitmənt/ noun US a docu-
registered at the Land Registry. 2. to send a ment which gives information about a com-
letter by registered post 쑗 I registered the pany when it is registered and listed on a
letter, because it contained some money. stock exchange (NOTE: The UK term is list-
registered /red istəd/ adjective having
registered
ing particulars.)
been noted on an official list 쑗 a registered regression analysis /rireʃ(ə)n ə
regression analysis
| |
share transaction nləsis/, regression model /rireʃ(ə)n |
registered cheque /red istəd tʃek/

registered cheque
mɒd(ə)l/ noun 1. a method of discovering

noun a cheque written on a bank account on the ratio of one dependent variable and one
behalf of a client who does not have a bank or more independent variables, so as to give
account a value to the dependent variable 2. a fore-
registered
registered company
company /red istəd casting technique that identifies trends by

kmp(ə)ni/ noun a company which has establishing the relationship between quan-
been officially set up and registered with the tifiable variables
Registrar of Companies regressive tax /riresiv tk/ noun a
regressive tax
registered office /red istəd ɒfis/

registered office
tax with a rate that decreases as income, or
noun the office address of a company which the value of the taxed item, rises
is officially registered with the Companies’ regressive taxation /riresiv tk
regressive taxation
| |
Registrar seiʃ(ə)n/ noun a system of taxation in

registered security /red istəd si
registered security
| which tax gets progressively less as income

kjυəriti/ noun a security such as a share in rises. Compare progressive taxation
a quoted company which is registered with regular income /rejυlər inkm/ noun
regular income
Companies House and whose holder is an income which comes in every week or
listed in the company’s share register month 쑗 She works freelance so she does
registered trademark /red istəd
registered trademark
not have a regular income.
treidmɑk/ noun a name, design or symbol regulate /rejυleit/ verb 1. to adjust
regulate
which has been registered by the manufac- something so that it works well or is correct
turer and which cannot be used by other 2. to change or maintain something by law

regulation 190
regulated consumer credit agree- reimbursement /riimbsmənt/ noun
regulation reimbursement
ment /rejυleitid kənsjumə kredit ə

| | the act of paying back money 쑗 reimburse-
rimənt/ noun a credit agreement as ment of expenses
defined by the Consumer Credit Act reinvest /riinvest/ verb to invest money
reinvest
regulation /rejυleiʃ(ə)n/ noun 1. a law

regulation
|
again 쑗 She sold her shares and reinvested
or rule 쑗 the new government regulations on the money in government stocks.
housing standards 쑗 Regulations concern- reinvestment /riinvestmənt/ noun 1.
reinvestment
ing imports and exports are set out in this the act of investing money again in the same
leaflet. 2. the use of laws or rules stipulated securities 2. the act of investing a company’s
by a government or regulatory body, such as earnings in its own business by using them
the FSA, to provide orderly procedures and to create new products for sale
to protect consumers and investors 쑗 gov-
ernment regulation of trading practices ‘…many large US corporations offer
shareholders the option of reinvesting their
‘EC regulations which came into effect in cash dividend payments in additional com-
July insist that customers can buy cars pany stock at a discount to the market
anywhere in the EC at the local pre-tax price. But to some big securities firms
price’ [Financial Times] these discount reinvestment programs are
‘…a unit trust is established under the reg- an opportunity to turn a quick profit’ [Wall
ulations of the Department of Trade, with Street Journal]
a trustee, a management company and a
REIT abbreviation US real estate invest-
REIT
stock of units’ [Investors Chronicle]

ment trust
‘…fear of audit regulation, as much as
reject /rid ekt/ verb to refuse to accept
reject
financial pressures, is a major factor |
behind the increasing number of small something, or to say that something is not
accountancy firms deciding to sell their satisfactory 쑗 The board rejected the draft
practices or merge with another firm’ budget.
[Accountancy] related company /rileitid kmp(ə)ni/
related company
Regulation S-X /rejυleiʃ(ə)n es eks/

Regulation S-X
noun a company in which another company

noun the rule of the US Securities and makes a long-term capital investment in
Exchange Commission which regulates order to gain control or influence
annual reports from companies related party /rileitid pɑti/ noun any
related party
regulator /rejυleitə/ noun a person

regulator
person or company which controls or partic-

whose job it is to see that regulations are fol- ipates in the policy decisions of an account-
lowed ing entity
‘…the regulators have sought to protect relative error /relətiv erə/ noun the dif-
relative error
investors and other market participants ference between an estimate and its correct
from the impact of a firm collapsing’ value
[Banking Technology]
release /rilis/ noun the act of setting
release
regulatory body /rejυlət(ə)ri bɒdi/

regulatory body |
noun an independent organisation, usually someone free or of making something or

established by a government, that makes someone no longer subject to an obligation
rules and sets standards for an industry and or restriction 쑗 release from a contract 쑗 the
oversees the activities of companies within release of goods from customs 쑗 She was
it offered early release so that she could take
up her new job.
‘Management of PharmaPlus is facing
opposition from the regulatory body of ‘…pressure to ease monetary policy
pharmacists, which has authority over a mounted yesterday with the release of a set
pharmacy’s operations and the stakehold- of pessimistic economic statistics’ [Finan-
ers in the current industry structure.’ cial Times]
[Harvard Business Review] ‘…the national accounts for the March
regulatory powers /rejυlət(ə)ri
regulatory powers
quarter released by the Australian Bureau
paυəz/ noun powers to enforce government of Statistics showed a real increase in
regulations GDP’ [Australian Financial Review]
reimburse /riimbs/ verb 왍 to reim- relevant benefits /reləv(ə)nt benifits/
relevant benefits
reimburse
burse someone their expenses to pay plural noun benefits such as pension,
someone back for money which they have endowment insurance, etc. provided by a
spent 쑗 You will be reimbursed for your pension scheme
relevant range /reləv(ə)nt reind /
relevant range
expenses or Your expenses will be reim-

bursed. noun the levels of business activity within

191 reorder
which assumptions about cost behaviour Her contract was renewed for a further three
remain valid years.
relocation /riləυkeiʃ(ə)n/ noun the act renewal /rinjuəl/ noun the act of renew-
relocation renewal
| |
of moving to a different place 쑗 We will pay ing 쑗 renewal of a lease or of a subscription

all the staff relocation costs. or of a bill 쑗 Her contract is up for renewal
relocation package /riləυkeiʃ(ə)n
relocation package
|
쑗 When is the renewal date of the bill?
renewal notice /rinjuəl nəυtis/ noun
renewal notice
pkid / noun payments made by an |
employer to an employee when the a note sent by an insurance company asking

employee is asked to move to a new area in the insured person to renew the insurance
order to work. Payments up to a minimum renewal premium /rinjuəl primiəm/
renewal premium
level are exempt from tax. noun a premium to be paid to renew an

reminder /rimaində/ noun a letter to
reminder
|
insurance
remind a customer that he or she has not rent /rent/ noun money paid to use an
rent
paid an invoice 쑗 to send someone a office, house or factory for a period of time
reminder 쐽 verb 1. to pay money to hire an office,
remission of taxes /rimiʃ(ə)n əv
remission of taxes
|
house, factory or piece of equipment for a
tksiz/ noun a refund of taxes which have period of time 쑗 to rent an office or a car 쑗
been overpaid He rents an office in the centre of town. 쑗
remit /rimit/ verb to send money 쑗 to
remit
|
They were driving a rented car when they
remit by cheque (NOTE: remitting – remit- were stopped by the police. 2. US same as
ted) let 왍 rent a room a scheme by which a tax-
payer can let a room in his or her house and
remittance /rimit(ə)ns/ noun money
remittance
|
be exempt from tax on the rental income
which is sent to pay back a debt or to pay an below a certain level
invoice 쑗 Please send remittances to the
rental /rent(ə)l/ noun money paid to use
rental
treasurer. 쑗 The family lives on a weekly

remittance from their father in the United an office, house, factory, car, piece of equip-
States. ment, etc., for a period of time 쑗 The car
rental bill comes to over £1000 a quarter.
remittance advice /rimit(ə)ns əd
remittance advice
| |
vais/, remittance slip /rimit(ə)ns slip/ ‘…top quality office furniture: short or
|
long-term rental 50% cheaper than any

noun an advice note sent with payment, other rental company’ [Australian Finan-
showing why it is being made, i.e. quoting cial Review]
the invoice number or a reference number
‘…until the vast acres of empty office
remitting bank /rimitiŋ bŋk/ verb a
remitting bank
|
space start to fill up with rent-paying ten-
bank into which a person has deposited a ants, rentals will continue to fall and so
cheque, and which has the duty to collect the will values. Despite the very sluggish eco-
money from the account of the writer of the nomic recovery under way, it is still diffi-
cheque cult to see where the new tenants will
remortgage /rimɔid / verb to mort-
remortgage
|
come from’ [Australian Financial Review]
rental value /rent(ə)l vlju/ noun a
rental value
gage a property which is already mortgaged

쑗 The bank offered him better terms than the full value of the rent for a property if it were
building society, so he decided to remort- charged at the current market rate, i.e. calcu-
gage the house. lated between rent reviews
remunerate /rimjunəreit/ verb to pay rent control /rent kəntrəυl/ noun gov-
remunerate rent control
| |
someone for doing something 쑗 The com- ernment regulation of rents

pany refused to remunerate them for their rent review /rent rivju/ noun an
rent review
services. increase in rents which is carried out during

remuneration /rimjunəreiʃ(ə)n/ noun
remuneration
| | the term of a lease. Most leases allow for

payment for services 쑗 The job is interesting rents to be reviewed every three or five
but the remuneration is low. 쑗 She receives years.
a small remuneration of £400 a month. rent tribunal /rent traibjun(ə)l/ noun
rent tribunal
renegotiate /riniəυʃieit/ verb to

renegotiate
|
a court which can decide if a rent is too high
negotiate something again 쑗 The company or low
was forced to renegotiate the terms of the renunciation /rinnsieiʃ(ə)n/ noun an
renunciation
| |
loan. act of giving up ownership of shares

renew /rinju/ verb to continue something reorder /riɔdə/ noun a further order for
renew reorder
| |
for a further period of time 쑗 We have asked something which has been ordered before 쑗
the bank to renew the bill of exchange. 쑗 The product has only been on the market ten

reorder level 192

days and we are already getting reorders. 쐽 report /ripɔt/ noun a statement describ-
report
verb to place a new order for something 쑗 ing what has happened or describing a state
We must reorder these items because stock is of affairs 쑗 to make a report or to present a
getting low. report or to send in a report on market
reorder level /riɔdə lev(ə)l/ noun a
reorder level
| opportunities in the Far East 쑗 The account-

minimum amount of an item which a com- ants are drafting a report on salary scales. 쐽
pany holds in stock, such that, when stock verb 1. to make a statement describing
falls to this amount, the item must be reor- something 쑗 The sales force reported an
dered increased demand for the product. 쑗 He
reorder quantity /riɔdə kwɒntəti/
reorder quantity
|
reported the damage to the insurance com-
noun a quantity of a product which is reor- pany. 쑗 We asked the bank to report on his
dered, especially the economic order quan- financial status. 2. to publish the results of a
tity (EOQ) company for a period and declare the divi-
reorganisation /riɔənaizeiʃ(ə)n/,
reorganisation
| |
dend
reorganization noun the process of organ- ‘…a draft report on changes in the interna-
ising a company in a different way, as in the tional monetary system’ [Wall Street Jour-
US when a bankrupt company applies to be nal]
treated under Chapter 11 to be protected ‘…responsibilities include the production
from its creditors while it is being reorgan- of premium quality business reports’
ised [Times]
repay /ripei/ verb to pay something back,
repay
|
‘…the research director will manage a
or to pay back money to someone 쑗 to repay team of business analysts monitoring and
money owed 쑗 The company had to cut back reporting on the latest development in
on expenditure in order to repay its debts. retail distribution’ [Times]
repayable /ripeiəb(ə)l/ adjective possi-
repayable ‘…the successful candidate will report to
|
the area director for profit responsibility

ble to pay back 쑗 loan which is repayable for sales of leading brands’ [Times]
over ten years
report form /ripɔt fɔm/ noun a balance
report form
repayment /ripeimənt/ noun the act of

repayment |
sheet laid out in vertical form. It is the oppo-

|
paying money back or money which is paid

back 쑗 The loan is due for repayment next site of ‘account’ or ‘horizontal’ form. Also
year. called vertical form
reporting entity /ripɔtiŋ entiti/ noun
reporting entity
repayment mortgage /ripeimənt

repayment mortgage |
|
mɔid / noun a mortgage where the bor- any organisation, such as a limited company,
rower pays back both interest and capital which reports its accounts to its sharehold-
over the period of the mortgage. This is ers
reporting period /ripɔtiŋ piəriəd/
reporting period
opposed to an endowment mortgage, where |
only the interest is repaid, and an insurance noun the amount of time covered by a partic-
is taken out to repay the capital at the end of ular financial report, be it a whole financial
the term of the mortgage. year or a shorter amount of time
repossess /ripəzes/ verb to take back
repossess
replacement cost /ripleismənt kɒst/

replacement cost
|
|
noun the cost of an item to replace an exist- an item which someone is buying under a
ing asset. Also called cost of replacement hire-purchase agreement, or a property
replacement cost accounting /ri
replacement cost accounting
|
which someone is buying under a mortgage,
pleismənt kɒst əkaυntiŋ/ noun same as |
because the purchaser cannot continue the
current cost accounting. Compare histor- payments
repossession /ripəzeʃ(ə)n/ noun an
repossession
ical cost accounting |
replacement cost depreciation /ri

replacement cost depreciation
|
act of repossessing 쑗 Repossessions are
pleismənt kɒst dipriʃieiʃ(ə)n/ noun |
increasing as people find it difficult to meet
depreciation based on the actual cost of mortgage repayments.
reprice /riprais/ verb to change the price
reprice
replacing the asset in the current year |
replacement price /ripleismənt prais/

replacement price
|
on an item, usually to increase it
reproduction cost /riprədkʃ(ə)n
reproduction cost
noun a price at which the replacement for an |
asset would have to be bought kɒst/ noun the cost of duplicating an asset
replacement
replacement value
value /ripleismənt |
exactly, as distinct from replacing it
repudiation /ripjudieiʃ(ə)n/ noun a
repudiation
vlju/ noun the value of something for | |
insurance purposes if it were to be replaced refusal to accept something such as a debt

쑗 The computer is insured at its replacement repurchase /riptʃis/ verb to buy
repurchase
value. something again, especially something

193 resource costs

which you have recently bought and then reserve for fluctuations /rizv fə
reserve for fluctuations
sold flktʃueiʃ(ə)nz/ noun money set aside to

|
require
require /rikwaiə/ verb to ask for or to |

allow for changes in the values of currencies
reserve fund /rizv fnd/ noun profits
reserve fund
demand something 쑗 to require a full expla- |
nation of expenditure 쑗 The law requires in a business which have not been paid out
you to submit all income to the tax authori- as dividend but have been ploughed back
ties. into the business
reserve price /rizv prais/ noun the
reserve price
required rate of return
required rate of return /rikwaiəd reit |

|
əv ritn/ noun the minimum return for a

|
lowest price which a seller will accept, e.g.
proposed project investment to be accepta- at an auction or when selling securities
ble. 쒁 discounted cash flow through a broker 쑗 The painting was with-
required reserves drawn when it failed to reach its reserve
required reserves /rikwaiəd rizvz/ | |
price.
plural noun reserves which a US bank is
reserves /rizvz/ plural noun money
reserves
required to hold in cash in its vaults or as |
deposit with the Federal Reserve. Compare from profits not paid as dividend, but kept
excess reserves back by a company in case it is needed for a
resale special purpose
resale /riseil/ noun the selling of goods
residence /rezid(ə)ns/ noun 1. a house
residence
which have been bought 쑗 to purchase

something for resale 쑗 The contract forbids or flat where someone lives 쑗 He has a
resale of the goods to the US country residence where he spends his week-
resale price maintenance
ends. 2. the fact of living or operating offi-
resale price maintenance /riseil cially in a country
prais meintənəns/ noun a system in residence permit /rezid(ə)ns pmit/
residence permit
which the price for an item is fixed by the noun an official document allowing a for-
manufacturer, and the retailer is not allowed eigner to live in a country 쑗 He has applied
to sell it at a lower price. Abbreviation RPM for a residence permit. 쑗 She was granted a
reschedule
reschedule /riʃedjul/ verb 1. to | residence permit for one year or a one-year

arrange a new timetable for something 쑗 residence permit.
She missed her plane, and all the meetings resident /rezid(ə)nt/ noun, adjective a
resident
had to be rescheduled. 2. to arrange new person or company considered to be living

credit terms for the repayment of a loan 쑗 or operating in a country for official or tax
Companies which are unable to keep up the purposes 쑗 The company is resident in
interest payments on their loans have asked France.
for their loans to be rescheduled. residential property /rezidenʃ(ə)l
residential property
rescind
rescind /risind/ verb to annul or to cancel

|
prɒpəti/ noun houses or flats owned or
something 쑗 to rescind a contract or an occupied by individual residents
agreement residual /rizidjuəl/ adjective remaining
residual
|
research and development
research and development /ristʃ | after everything else has gone

ən diveləpmənt/ noun activities that are
|
residual income /rizidjuəl inkm/
residual income
designed to produce new knowledge and noun a performance measure for businesses,
ideas and to develop ways in which these calculated as net operating income minus a
can be commercially exploited by a business figure equal to minimum return on invest-
(NOTE: Research and development activi- ment times operating assets
ties are often grouped together to form a residual value /rizidjuəl vlju/ noun
residual value
separate division or department within an a value of an asset after it has been depreci-
organisation.) ated in the company’s accounts
research and development expenditure
research and development expend- residue /rezidju/ noun money left over
residue
iture /ristʃ ən diveləpmənt ik

| | |
쑗 After paying various bequests the residue
spenditʃə/ noun money spent on R & D of his estate was split between his children.
resell
resell /risel/ verb to sell something which

|
resource cost assignment /rizɔs
resource cost assignment
has just been bought 쑗 The car was sold in kɒst əsainmənt/ noun the process of
|
June and the buyer resold it to an dealer two assigning costs to business activities
months later. (NOTE: reselling – resold) resource costs /rizɔs kɒsts/ plural
resource costs
|
reserve currency
reserve currency /rizv krənsi/ | noun the costs of all elements used to carry
noun a strong currency used in international out business activities, including such ele-
finance, held by other countries to support ments as workers’ salaries and the cost of
their own weaker currencies materials

resource driver 194

resource driver /rizɔs draivə/, retail /riteil/ noun the sale of small quan-
resource driver retail
resource cost driver /rizɔs kɒst

| tities of goods to the general public 왍 the
draivə/ noun a type of cost driver which is goods in stock have a retail value of £1m
used to quantify the resources involved in the value of the goods if sold to the public is
creating a product or service £1m, before discounts and other factors are
responsibility accounting /rispɒnsi
responsibility accounting
| |
taken into account 쐽 adverb 왍 he buys
biliti əkaυntiŋ/ noun the keeping of
|
wholesale and sells retail he buys goods in
financial records with an emphasis on who bulk at a wholesale discount and sells in
is responsible for each item small quantities to the public 쐽 verb to sell
for a price 왍 these items retail at or for
responsibility centre /rispɒnsibiliti
responsibility centre
| |
£2.50 the retail price of these items is £2.50

sentə/ noun a department of an organisa-
retail banking /riteil bŋkiŋ/ noun
retail banking
tion with responsibility for a particular

financial aspect of business, e.g. costs, reve- services provided by commercial banks to
nues or investment funds individuals as opposed to business custom-
ers, e.g. current accounts, deposit and sav-
restated balance sheet /risteitd
restated balance sheet
ings accounts, as well as credit cards, mort-

bləns ʃit/ noun a balance sheet with gages and investments. Compare wholesale
information presented in a way that serves a banking (NOTE: In the United Kingdom,
particular purpose, such as highlighting although this service was traditionally pro-
depreciation on assets vided by high street banks, separate organ-
restatement /risteitmənt/ noun a revi-
restatement
|
isations are now providing Internet and tel-
sion of an earlier financial statement ephone banking services.)
restrict /ristrikt/ verb to limit something
restrict
retail deposit /riteil dipɒzit/ noun a

retail deposit
| |
or to impose controls on something 쑗 to deposit placed by an individual with a bank

restrict credit 쑗 to restrict the flow of trade retailer /riteilə/ noun a person who runs
retailer
or to restrict imports a retail business, selling goods direct to the

restricted fund /ristriktid fnd/ noun
restricted fund
| public
in a not-for-profit organisation, a fund retailing /riteiliŋ/ noun the selling of
retailing
whose assets can only be used for those pur- full-price goods to the public 쑗 From car
poses designated by donors retailing the company branched out into car
restrictive /ristriktiv/ adjective not
restrictive
| leasing.
allowing something to go beyond a point retail investor /riteil investə/ noun a
retail investor
restrictive covenant
restrictive covenant
/ristriktiv | private investor, as opposed to institutional

kvənənt/ noun a clause in a contract investors
which prevents someone from doing some- retail price /riteil prais/ noun the price
retail price
thing at which the retailer sells to the final cus-

restructure /ristrktʃə/ verb to reor-
restructure
|
tomer
ganise the financial basis of a company retail price index /riteil prais
retail price index
restructuring /ristrktʃəriŋ/ noun the

restructuring
|
indeks/, retail prices index /riteil
process of reorganising the financial basis of praisiz indeks/ noun an index which
a company shows how prices of consumer goods have
result /rizlt/ noun 1. a profit or loss
result
|
increased or decreased over a period of time.
account for a company at the end of a trading Abbreviation RPI (NOTE: The US term is
Consumer Price Index.)
period 쑗 The company’s results for last year
retain /ritein/ verb to keep something or
retain
were an improvement on those of the previ- |
ous year. 2. something which happens someone 쑗 measures to retain experienced

because of something else 쑗 What was the staff 쑗 Out of the profits, the company has
result of the price investigation? 쑗 The com- retained £50,000 as provision against bad
pany doubled its sales force with the result debts.
retained earnings /riteind niŋz/
retained earnings
that the sales rose by 26%. |
‘…the company has received the backing plural noun an amount of profit after tax
of a number of oil companies who are will- which a company does not pay out as divi-
ing to pay for the results of the survey’ dend to the shareholders, but which is kept
[Lloyd’s List] to be used for the further development of the
‘…some profit-taking was noted, but business. Also called retentions
retained income /riteind inkm/,
retained income
underlying sentiment remained firm in a |
steady stream of strong corporate results’ retained profit /riteind prɒfit/ noun
|
[Financial Times] same as retained earnings

195 revenue centre

retainer /riteinə/ noun money paid in return to the Companies Registration
retainer
advance to someone so that they will work Office. Failure to do so before the end of
for you and not for someone else 쑗 We pay the period of 28 days after the company’s
them a retainer of £1,000. return date could lead to directors and
retentions /ritenʃənz/ plural noun same
retentions
|
other officers in default being fined up to
as retained earnings £2000’ [Accountancy]
return date /ritn deit/ noun a date by
return date
retiral /ritaiərəl/ noun same as retire-

retiral
|
|
ment which a company’s annual return has to be

made to the Registrar of Companies
retire /ritaiə/ verb 1. to stop work and take
retire
return on assets /ritn ɒn sets/,

return on assets
a pension 쑗 She retired with a £15,000 pen- |
sion. 쑗 The founder of the company retired return on capital employed /ritn ɒn |
at the age of 85. 2. to make an employee stop kpit(ə)l implɔid/, return on equity /ri
| |
work and take a pension 쑗 They decided to tn ɒn ekwiti/ noun a profit shown as a
retire all staff over 50. percentage of the capital or money invested
in a business. Abbreviation ROA, ROCE,
retirement /ritaiəmənt/ noun the act of
retirement
ROE
|
retiring from work 쑗 I am looking forward

return on investment /ritn ɒn in
return on investment
to my retirement. 쑗 Older staff are planning | |
what they will do in retirement. vestmənt/ noun a ratio of the profit made
in a financial year as a percentage of an
retirement age /ritaiəmənt eid / noun
retirement age
investment. Abbreviation ROI

the age at which people retire. In the UK this
return on net assets /ritn ɒn net
return on net assets
is usually 65 for men and 60 (but soon to |
become 65) for women. sets/ noun a ratio of the profit made in a
retirement annuity /ritaiəmənt ə
retirement annuity financial year as a percentage of the assets of
a company
| |
njuiti/ noun an annuity bought when

returns /ritnz/ plural noun profits or
returns
someone retires, using part of the sum put |
into a personal pension plan income from investment 쑗 The company is

retirement
retirement benefits
benefits /ritaiəmənt |
looking for quick returns on its investment.
revaluation /rivljυeiʃən/ noun an act
revaluation
benifits/ plural noun benefits which are | |
payable by a pension scheme to a person on of revaluing 쑗 The balance sheet takes into
retirement account the revaluation of the company’s
retirement
retirement pension
pension /ritaiəmənt |
properties.
revaluation method /rivljυeiʃən
revaluation method
penʃən/ noun a state pension given to a | |
man who is over 65 or and woman who is meθəd/ noun a method of calculating the
over 60 depreciation of assets, by which the asset is
retroactive /retrəυktiv/ adjective
retroactive
|
depreciated by the difference in its value at
which takes effect from a time in the past 쑗 the end of the year over its value at the
They got a pay rise retroactive to last Janu- beginning of the year
revaluation reserve /rivljυeiʃən ri
revaluation reserve
ary. | | |
‘The salary increases, retroactive from zv/ noun money set aside to account for
April of the current year, reflect the mar- the fact that the value of assets may vary as
ginal rise in private sector salaries’ [Nikkei a result of accounting in different currencies
revalue /rivlju/ verb to value some-
revalue
Weekly] |
retroactively /retrəυktivli/ adverb

retroactively
|
thing again, usually setting a higher value on
going back to a time in the past it than before 쑗 The company’s properties
return /ritn/ noun 1. a profit or income
return
|
have been revalued. 쑗 The dollar has been
from money invested 쑗 We are buying tech- revalued against all world currencies.
revenue /revənju/ noun 1. money
revenue
nology shares because they bring in a quick

return. 쑗 What is the gross return on this received 쑗 revenue from advertising or
line? 2. an official statement or form that has advertising revenue 쑗 Oil revenues have
to be sent in to the authorities 쐽 verb to risen with the rise in the dollar. 2. money
make a statement 쑗 to return income of received by a government in tax
revenue accounts /revənju əkaυnts/
revenue accounts
£15,000 to the tax authorities |
‘…with interest rates running well above plural noun accounts of a business which
inflation, investors want something that record money received as sales, commis-
offers a return for their money’ [Business sion, etc.
Week] revenue centre /revənju sentə/ noun
revenue centre
‘Section 363 of the Companies Act 1985 a department of an organisation with respon-
requires companies to deliver an annual sibility for maximising revenue

revenue expenditure 196

revenue expenditure /revənju ik reversionary bonus /rivʃ(ə)n(ə)ri
revenue expenditure reversionary bonus
| |
spenditʃə/ noun expenditure on purchas- bəυnəs/ noun an annual bonus on a life

ing stock but not capital items, which is then assurance policy, declared by the insurer
sold during the current accounting period review /rivju/ noun a general examina-
review
revenue ledger /revənju led ə/ noun tion 쑗 to conduct a review of distributors 쐽

revenue ledger
a record of all the income received by an verb to examine something generally

organisation revise /rivaiz/ verb to change something
revise
revenue officer /revənju ɒfisə/ noun which has been calculated or planned 쑗
revenue officer
a person working in the government tax Sales forecasts are revised annually.
offices revolving credit /rivɒlviŋ kredit/
revolving credit
revenue recognition
revenue recognition
/revənju noun a system where someone can borrow

rekəniʃ(ə)n/ noun the process of record- money at any time up to an agreed amount,
ing revenue in accounts and continue to borrow while still paying off
revenue reserves /revənju rizvz/
revenue reserves
|
the original loan. Also called open-ended
plural noun retained earnings which are credit
revolving loan /rivɒlviŋ ləυn/ noun a
revolving loan
shown in the company’s balance sheet as |
part of the shareholders’ funds. Also called loan facility whereby the borrower can
company reserves choose the number and timing of withdraw-
revenue sharing /revənju ʃeəriŋ/
revenue sharing
als against their bank loan and any money
noun the distribution of income within lim- repaid may be reborrowed at a future date.
ited partnerships Such loans are available both to businesses
and personal customers.
reverse /rivs/ adjective opposite or in
reverse
rider /raidə/ noun an additional clause 쑗

rider
the opposite direction 쐽 verb to change a

decision to the opposite 쑗 The committee to add a rider to a contract
right /rait/ noun a legal entitlement to
right
reversed its decision on import quotas.

‘…the trade balance sank $17 billion, something 쑗 There is no automatic right of
reversing last fall’s brief improvement’ renewal to this contract. 쑗 She has a right to
[Fortune] the property.
rights issue /raits iʃu/ noun an
rights issue
reverse leverage /rivs levərid /

reverse leverage
noun the borrowing of money at a rate of arrangement which gives shareholders the
interest higher than the expected rate of right to buy more shares at a lower price
return on investing the money borrowed (NOTE: The US term is rights offering.)
rights offering /raits ɒfəriŋ/ noun an
rights offering
reverse takeover /rivs teikəυvə/

reverse takeover
noun a takeover in which the company that occasion when a rights issue is offered for
has been taken over ends up owning the sale
company which has taken it over. The ring fence /riŋ fens/ verb 1. to separate
ring fence
acquiring company’s shareholders give up valuable assets or profitable businesses from

their shares in exchange for shares in the tar- others in a group which are unprofitable and
get company. may make the whole group collapse 2. to
reverse yield gap /rivs jild p/
reverse yield gap
|
identify money from certain sources and
noun the amount by which bond yield only use it in certain areas 쑗 The grant has
exceeds equity yield, or interest rates on been ring-fenced for use in local authority
loans exceed rental values as a percentage of education projects only. 쒁 hypothecation
the costs of properties rise /raiz/ noun 1. an increase 쑗 a rise in
rise
reversing entry /rivsiŋ entri/ noun

reversing entry
|
the price of raw materials 쑗 Oil price rises
an entry in a set of accounts which reverses brought about a recession in world trade. 쑗
an entry in the preceding accounts The recent rise in interest rates has made
reversion /rivʃ(ə)n/ noun the return of
reversion
|
mortgages dearer. 쑗 There needs to be an
property to its original owner increase in salaries to keep up with the rise
in the cost of living. 2. an increase in pay 쑗
reversionary /rivʃ(ə)n(ə)ri/ adjective
reversionary
|
She asked her boss for a rise. 쑗 He had a 6%
referring to property which passes to rise in January. (NOTE: The US term is
another owner on the death of the present raise.) 쐽 verb to move upwards or to
one become higher 쑗 Prices or Salaries are ris-
reversionary annuity /rivʃ(ə)n(ə)ri ing faster than inflation. 쑗 Interest rates
reversionary annuity
ənjuiti/ noun an annuity paid to someone

| have risen to 15%. (NOTE: rising – rose –
on the death of another person risen)

197 rough
risk /risk/ noun possible harm or a chance
risk
retained its status as a top-rate advisory

of danger house’ [Times]
ROA abbreviation return on assets
ROA
‘…remember, risk isn’t volatility. Risk is

the chance that a company’s earnings ROCE abbreviation return on capital
ROCE
power will erode – either because of a employed

change in the industry or a change in the ROE abbreviation return on equity
ROE
business that will make the company sig- ROI abbreviation return on investment
ROI
nificantly less profitable in the long term’ roll over phrasal verb 왍 to roll over a cred-
[Fortune]
it to make credit available over a continuing
risk-adjusted return on capital /risk period 왍 to roll over a debt to allow a debt
risk-adjusted return on capital
əd stid ritn ɒn kpit(ə)l/ noun a

| |
to stand after the repayment date
figure for capital calculated in a way that ‘…at the IMF in Washington, officials are
takes into account the risks associated with worried that Japanese and US banks might
income decline to roll over the principal of loans
risk arbitrage /risk ɑbitrɑ / noun the
risk arbitrage
made in the 1980s to Southeast Asian and

business of buying shares in companies other developing countries’ [Far Eastern
which are likely to be taken over and so rise Economic Review]
in price roll up /rəυl p/ phrasal verb to extend a
risk arbitrageur /risk ɑbitrɑ /
risk arbitrageur
loan, by adding the interest due to be paid to
noun a person whose business is risk arbi- the capital
rolled-up coupons /rəυld p
rolled-up coupons
trage
risk asset ratio /risk set reiʃiəυ/
risk asset ratio
kupɒnz/ plural noun interest coupons on
noun a proportion of a bank’s capital which securities, which are not paid out, but added
is in risk assets to the capital value of the security
rolling budget /rəυliŋ bd it/ noun a
rolling budget
risk capital /risk kpit(ə)l/ noun same

risk capital
as venture capital budget which moves forward on a regular

basis, such as a budget covering a twelve-
risk-free /risk fri/, riskless /riskləs/
risk-free
month period which moves forward each

adjective with no risk involved 쑗 a risk-free month or quarter
investment rollover /rəυləυvə/ noun an extension of
rollover
‘…there is no risk-free way of taking reg- credit or of the period of a loan, though not
ular income from your money higher than necessarily on the same terms as previously
the rate of inflation and still preserving its rollover relief /rəυləυvə rilif/ noun tax
rollover relief
value’ [Guardian] |
relief where profit on the sale of an asset is

‘…many small investors have also pre- not taxed if the money realised is used to
ferred to put their spare cash with risk-free acquire another asset. The profit on the
investments such as building societies eventual sale of this second asset will be
rather than take chances on the stock mar- taxed unless the proceeds of the second sale
ket. The returns on a host of risk-free
investments have been well into double are also invested in new assets.
Romalpa clause /rəυmɒlpə klɔz/
Romalpa clause
figures’ [Money Observer] |
noun a clause in a contract whereby the

risk management /risk mnid mənt/
risk management
seller provides that title to the goods does

noun the work of managing a company’s
not pass to the buyer until the buyer has paid
exposure to risk from its credit terms or for them
exposure to interest rate or exchange rate
root /rut/ noun a fractional power of a
root
fluctuations
number
risk premium /risk primiəm/ noun an
risk premium
root cause analysis /rut kɔz ə

root cause analysis
extra payment, e.g. increased dividend or

|
nlisis/ noun a problem-solving technique

higher than usual profits, for taking risks that seeks to identify the underlying cause of
risk-weighted assets /risk weitid
risk-weighted assets
a problem
sets/ plural noun assets which include rough /rf/ adjective approximate, not
rough
off-balance sheet items for insurance pur- very accurate

poses rough out phrasal verb to make a draft or a
risky /riski/ adjective dangerous or which
risky
general design of something, which may be

may cause harm 쑗 We lost all our money in changed later 쑗 The finance director
some risky ventures in South America. roughed out a plan of investment.
‘…while the bank has scaled back some of round off /raυnd ɒf/ phrasal verb to re-
its more risky trading operations, it has duce the digits in a decimal number by re-

round figures 198

moving the final zeros age, so interest at 10% compound will dou-
round down phrasal verb to decrease a ble the capital invested in 7.2 years
fractional figure to the nearest full figure rule of 78 /rul əv sev(ə)nti eit/ noun a
rule of 78
round up phrasal verb to increase a frac- method used to calculate the rebate on a loan
tional figure to the nearest full figure 쑗 to with front-loaded interest that has been
round up the figures to the nearest pound repaid early. It takes into account the fact
‘…each cheque can be made out for the that as the loan is repaid, the share of each
local equivalent of œ100 rounded up to a monthly payment related to interest
convenient figure’ [Sunday Times] decreases, while the share related to repay-
round figures /raυnd fiəz/ plural
round figures
ment increases.
noun figures that have been adjusted up or run /rn/ noun a rush to buy something 쑗
run
down to the nearest 10, 100, 1,000, and so on The Post Office reported a run on the new
royalty /rɔiəlti/ noun money paid to an
royalty
stamps. 왍 a run on the bank a rush by cus-
inventor, writer, or the owner of land for the tomers to take deposits out of a bank which
right to use their property, usually a specific they think may close down 쐽 verb 1. to be in
percentage of sales, or a specific amount per force 쑗 The lease runs for twenty years. 쑗
sale 쑗 The country will benefit from rising The lease has only six months to run. 2. to
oil royalties. 쑗 He is still receiving substan- amount to 쑗 The costs ran into thousands of
tial royalties from his invention. pounds.
RPB abbreviation recognised professional ‘…applications for mortgages are running
RPB
body at a high level’ [Times]

RPI abbreviation retail price index
RPI
‘…with interest rates running well above
RPM abbreviation resale price maintenance
RPM
inflation, investors want something that
rubber check /rbə tʃek/ noun US a
rubber check offers a return for their money’ [Business
Week]
cheque which cannot be cashed because the
person writing it does not have enough run into phrasal verb to amount to 쑗 Costs
money in the account to pay it (NOTE: The have run into thousands of pounds. 왍 he has
UK term is bouncing cheque.) an income running into five figures he
rule /rul/ noun a statement that directs how
rule earns more than £10,000
people should behave 쑗 It is a company rule run up phrasal verb to make debts or costs
that smoking is not allowed in the offices. 쑗 go up quickly 쑗 He quickly ran up a bill for
The rules of the organisation are explained £250.
running account credit /rniŋ ə
running account credit
during the induction sessions. 쐽 verb 1. to |
give an official decision 쑗 The commission kaυnt kredit/ noun an overdraft facility,
of inquiry ruled that the company was in credit card or similar system that allows cus-
breach of contract. 쑗 The judge ruled that tomers to borrow up to a specific limit and
the documents had to be deposited with the reborrow sums previously repaid by either
court. 2. to be in force or to be current 쑗 The writing a cheque or using their card
running costs /rniŋ kɒsts/ plural noun
running costs
current ruling agreement is being redrafted.

rulebook /rulbυk/ noun a set of rules by
rulebook
same as operating costs
running total /rniŋ təυt(ə)l/ noun the
running total
which the members of a self-regulatory

organisation must operate total carried from one column of figures to
rule of 72 /rul əv sev(ə)nti tu/ noun a
rule of 72
the next
calculation that an investment will double in running yield /rniŋ jild/ noun a yield
running yield
value at compound interest after a period on fixed interest securities, where the inter-
shown as 72 divided by the interest percent- est is shown as a percentage of the price paid

S
safe deposit /seif dipɒzit/ noun a bank
safe deposit
| salary review /sləri rivju/ noun same

salary review
safe where you can leave jewellery or docu- as pay review 쑗 She had a salary review
ments last April or Her salary was reviewed last
safe deposit box /seif dipɒzit bɒks/
safe deposit box
|
April.
salary scale /sləri skeil/ noun same as
salary scale
noun a small box which you can rent to keep

jewellery or documents in a bank’s safe pay scale 쑗 He was appointed at the top
safeguarding of assets /seifɑdiŋ
safeguarding of assets
end of the salary scale.
əv sets/ noun the practice of guarding sale /seil/ noun 1. an act of giving an item
sale
against loss of assets or doing a service in exchange for money, or

safe investment /seif investmənt/
safe investment
|
for the promise that money will be paid 왍 to
noun something, e.g. a share, which is not offer something for sale or to put some-
likely to fall in value thing up for sale to announce that some-
thing is ready to be sold 쑗 They put the fac-
safety /seifti/ noun the fact of being free
safety
tory up for sale. 쑗 His shop is for sale. 쑗

from danger or risk 왍 to take safety precau- These items are not for sale to the general
tions or safety measures to act to make sure public. 2. an act of selling goods at specially
something is safe low prices 쑗 The shop is having a sale to
salaried /slərid/ adjective earning a sal-
salaried
clear old stock. 쑗 The sale price is 50% of

ary 쑗 The company has 250 salaried staff. the usual price.
salaried partner /slərid pɑtnə/ noun
salaried partner
‘…the latest car sales for April show a 1.8

a partner, often a junior one, who receives a per cent dip from last year’s total’ [Inves-
regular salary in accordance with the part- tors Chronicle]
nership agreement sale and lease-back /seil ən lis bk/
sale and lease-back
salary /sləri/ noun 1. a regular payment noun 1. a situation where a company sells a
salary
for work done, made to an employee usually property to raise cash and then leases it back
as a cheque at the end of each month 쑗 The from the purchaser 2. the sale of an asset,
company froze all salaries for a six-month usually a building, to somebody else who
period. 쑗 The salary may be low, but the then leases it back to the original owner
fringe benefits attached to the job are good. sales /seilz/ plural noun money received
sales
쑗 She got a salary increase in June. 2. the for selling something 쑗 Sales have risen
amount paid to an employee, shown as a over the first quarter.
monthly, quarterly or yearly total (NOTE: sales analysis /seilz ənləsis/ noun
sales analysis
The plural is salaries.) an examination of the reports of sales to see

salary cheque /sləri tʃek/ noun a
salary cheque
why items have or have not sold well

monthly cheque by which an employee is sales book /seilz bυk/ noun a record of
sales book
paid sales
salary cut /sləri kt/ noun a sudden
salary cut
sales budget /seilz bd it/ noun a plan

sales budget
reduction in salary of probable sales

salary deductions /sləri didkʃənz/ sales department /seilz dipɑtmənt/
salary deductions sales department
| |
plural noun money which a company noun the section of a company which deals
removes from salaries to pay to the govern- with selling the company’s products or serv-
ment as tax, National Insurance contribu- ices
tions, etc. sales figures /seilz fiəz/ plural noun
sales figures
salary differentials /sləri difə

salary differentials
| total sales
renʃəlz/ plural noun same as pay differen- sales force /seilz fɔs/ noun a group of
sales force
tials sales staff

sales forecast 200

sales forecast /seilz fɔkɑst/ noun an salvage /slvid / noun 1. the work of
sales forecast salvage
estimate of future sales saving a ship or a cargo from being

sales invoice /seilz invɔis/ noun an
sales invoice
destroyed 2. goods saved from a wrecked
invoice relating to a sale ship, from a fire or from some other accident
쑗 a sale of flood salvage items (NOTE: no
sales journal /seilz d n(ə)l/ noun the
sales journal
book in which non-cash sales are recorded plural) 쐽 verb 1. to save goods or a ship from
with details of customer, invoice, amount being destroyed 쑗 We are selling off a ware-
and date. These details are later posted to house full of salvaged goods. 2. to save
each customer’s account in the sales ledger. something from loss 쑗 The company is try-
ing to salvage its reputation after the man-
sales ledger /seilz led ə/ noun a book
sales ledger
aging director was sent to prison for fraud.

in which sales to each customer are entered. 쑗 The receiver managed to salvage some-
Also called debtors ledger thing from the collapse of the company.
sales ledger clerk /seilz led ə klɑk/
sales ledger clerk
salvage value /slvid vlju/ noun

salvage value
noun an office employee who deals with the the value of an asset if sold for scrap
sales ledger
S&L abbreviation savings and loan
S&L
sales manager /seilz mnid ə/ noun a

sales manager
Sarbanes-Oxley Act /sɑbn ɒksli

Sarbanes-Oxley Act
person in charge of a sales department |
kt/ noun an act of the US Congress

sales mix /seilz miks/ noun the sales and
sales mix
designed to protect investors from fraudu-

profitability of a wide range of products sold lent accounting activities
by a single company
SAS abbreviation Statement of Auditing
SAS
sales mix profit variance /seilz miks

sales mix profit variance
Standards
prɒfit veəriəns/ noun the differing profit-
save /seiv/ verb to choose not to spend
save
ability of different products within a product

range money 쑗 He is trying to save money by
walking to work. 쑗 She is saving to buy a
sales mix variance /seilz miks
sales mix variance
house.
veəriəns/ noun a discrepancy between the
save-as-you-earn /seiv əz ju n/
save-as-you-earn
actual mix of products produced and sold

noun a savings-related scheme set up by an
and the budgeted mix
employer that gives employees a right to buy
sales price variance /seilz prais
sales price variance
a certain number of shares in the company at

veəriəns/ noun the difference between a fixed price at a particular time. Abbrevia-
expected revenue from actual sales and tion SAYE
actual revenue saver /seivə/ noun a person who saves
saver
sales return /seilz ritn/ noun a report

sales return
|
money
of sales made each day or week or quarter savings /seiviŋz/ plural noun money
savings
sales revenue /seilz revənju/ noun

sales revenue
saved (i.e. money which is not spent) 쑗 She

US the income from sales of goods or serv- put all her savings into a deposit account.
ices savings account /seiviŋz əkaυnt/
savings account
sales target /seilz tɑit/ noun the

sales target
noun an account where you put money in

amount of sales a sales representative is regularly and which pays interest, often at a
expected to achieve higher rate than a deposit account
sales tax /seilz tks/ noun US same as
sales tax
savings and loan /seiviŋz ən ləυn/,

savings and loan
VAT savings and loan association /seiviŋz

sales value /seilz vlju/ noun the
sales value
ən ləυn əsəυsieiʃ(ə)n/ noun US same as

|
amount of money which would be received building society

if something is sold savings bank /seiviŋz bŋk/ noun a
savings bank
sales volume /seilz vɒljum/ noun the

sales volume
bank where you can deposit money and

number of units sold (NOTE: The UK term is receive interest on it
turnover.) savings certificate /seiviŋz sətifikət/
savings certificate
sales volume profit variance /seilz

sales volume profit variance
noun a document showing that you have

vɒljum prɒfit veəriəns/ noun the dif- invested money in a government savings
ference between the profit on the number of scheme
units actually sold and the forecast figure savings income /seiviŋz inkm/ noun
savings income
sales volume variance /seilz

sales volume variance
income in the form of interest on deposits

vɒljum veəriəns/ noun a discrepancy with banks and building societies, govern-
between the actual volume of sales and the ment bonds, etc., but not income from divi-
budgeted volume dends or rental income from property

201 seasonal business

savings-related share option paying debts, so as to avoid bankruptcy pro-
savings-related share option scheme
scheme /seiviŋz rileitid ʃeər ɒpʃən

| ceedings. Also called voluntary arrange-
skim/ noun a scheme which allows ment
employees of a company to buy shares with scope limitation /skəυp limiteiʃ(ə)n/
scope limitation
money which they have contributed to a sav- noun the fact that the scope of audit is lim-
ings scheme ited in some way, e.g. owing to restrictions
SAYE abbreviation save-as-you-earn
SAYE
beyond the client’s control

SBA abbreviation Small Business Admin-
SBA
scorched earth policy /skɔtʃt θ

scorched earth policy
istration pɒlisi/ noun a way of combating a takeover

scale /skeil/ noun a system which is
scale
bid, where the target company sells valuable

graded into various levels 왍 scale of assets or purchases unattractive assets. 쒁
charges or scale of prices a list showing poison pill
various prices 왍 scale of salaries a list of scrap /skrp/ noun material left over after
scrap
salaries showing different levels of pay in an industrial process, and which still has
different jobs in the same company some value, as opposed to waste, which has
scarce currency /skeəs krənsi/ noun
scarce currency
no value 쑗 to sell a ship for scrap

same as hard currency scrap value /skrp vlju/ noun the
scrap value
schedule /ʃedjul/ noun 1. a timetable, a

schedule
value of an asset if sold for scrap 쑗 Its scrap

plan of how time should be spent, drawn up value is £2,500.
in advance 쑗 The managing director has a scrip /skrip/ noun a security, e.g. a share,
scrip
busy schedule of appointments. 쑗 Her bond, or the certificate issued to show that
assistant tried to fit us into her schedule. 2. someone has been allotted a share or bond
a list, especially a list forming an additional
document attached to a contract 쑗 the sched- ‘…under the rule, brokers who fail to
ule of territories to which a contract applies deliver stock within four days of a transac-
쑗 Please find enclosed our schedule of
tion are to be fined 1% of the transaction
value for each day of missing scrip’ [Far
charges. 쑗 See the attached schedule or as Eastern Economic Review]
per the attached schedule. 3. a list of interest
scrip dividend /skrip dividend/ noun a
scrip dividend
rates
Schedule A /ʃedjul ei/ noun a schedule
Schedule A dividend which takes the form of new shares
under which tax is charged on income from in the company, as opposed to cash
scrip issue /skrip iʃu/ noun same as
scrip issue
land or buildings
Schedule B /ʃedjul bi/ noun a sched-
Schedule B
bonus issue
SDRs abbreviation special drawing rights
SDRs
ule under which tax was formerly charged

on income from woodlands seal /sil/ noun 1. a special symbol, often
seal
Schedule C /ʃedjul si/ noun a sched- one stamped on a piece of wax, which is
Schedule C
ule under which tax is charged on profits used to show that a document is officially
from government stock approved by the organisation that uses the
Schedule D /ʃedjul di/ noun a sched-
Schedule D
symbol 2. a piece of paper, metal, or wax
ule under which tax is charged on income attached to close something, so that it can be
from trades or professions, interest and other opened only if the paper, metal, or wax is
earnings not derived from being employed removed or broken 쐽 verb 1. to close some-
Schedule E /ʃedjul i/ noun a schedule
Schedule E
thing tightly 쑗 The computer disks were sent
under which tax is charged on income from in a sealed container. 2. to attach a seal, to
salaries, wages or pensions stamp something with a seal 쑗 Customs
Schedule F /ʃedjul ef/ noun a schedule
Schedule F sealed the shipment.
seasonal /siz(ə)n(ə)l/ adjective which
seasonal
under which tax is charged on income from

dividends lasts for a season or which only happens dur-
scheme /skim/ noun a plan, arrangement
scheme
ing a particular season 쑗 seasonal varia-
or way of working 쑗 Under the bonus tions in sales patterns 쑗 The demand for this
scheme all employees get 10% of their item is very seasonal.
seasonal adjustment /siz(ə)n(ə)l ə
seasonal adjustment
annual pay as a Christmas bonus. 쑗 She has |
joined the company pension scheme. 쑗 We d stmənt/ noun an adjustment made to

operate a profit-sharing scheme for manag- accounts to allow for any short-term sea-
ers. sonal factors, such as Christmas sales, that
scheme of arrangement /skim əv ə
scheme of arrangement
|
may distort the figures
reind mənt/ noun a scheme drawn up by seasonal business /siz(ə)n(ə)l
seasonal business
an individual or company to offer ways of biznis/ noun trade that varies depending on

seasonality 202
the time of the year, e.g. trade in goods such opposed to ‘hidden reserves’ which are sim-
as suntan products or Christmas trees ply not easy to identify
seasonality /sizənliti/ noun varia- section /sekʃən/ noun one of the parts of
seasonality section
tions in production or sales that occur at dif- an Act of Parliament

ferent but predictable times of the year secure /sikjυə/ adjective safe, which can-
secure
SEC abbreviation Securities and Exchange

SEC
not change
secured /sikjυəd/ adjective used to
secured
Commission |
second /sekənd/ noun, adjective the

second
describe a type of borrowing such as a mort-
thing which comes after the first 쐽 verb 1. 왍 gage where the lender has a legal right to
to second a motion to be the first person to take over an asset or assets of the borrower,
support a proposal put forward by someone if the borrower does not repay the loan
else 쑗 Mrs Smith seconded the motion or secured creditor /sikjυəd kreditə/
secured creditor
The motion was seconded by Mrs Smith. 2. noun a person who is owed money by some-
/sikɒnd/ to lend a member of staff to
| one, and can legally claim the same amount
another company, organisation or depart- of the borrower’s property if the borrower
ment for a fixed period of time 쑗 He was fails to pay back the money owed
seconded to the Department of Trade for two secured liability /sikjυəd laiəbiliti/
secured liability
| |
years. noun a loan secured by means of a pledge of

secondary
secondary buyout
buyout /sekənd(ə)ri assets that can be sold if necessary

baiaυt/ noun a situation in which an inves- secured loan /sikjυəd ləυn/ noun a
secured loan
tor such as a private equity company sells its loan which is guaranteed by the borrower
investment in a company to another investor, giving assets as security
as a means of realising their investment securities /sikjυəritiz/ plural noun
securities
secondary industry /sekənd(ə)ri

secondary industry
investments in stocks and shares
indəstri/ noun an industry which uses securities account /sikjυəritiz ə
securities account
| |
basic raw materials to produce manufac- kaυnt/ noun an account that shows the
tured goods value of financial assets held by a person or
secondary sites /sekənd(ə)ri saits/
secondary sites
organisation
plural noun less valuable commercial sites. Securities and Exchange Commis-
Securities and Exchange Commission
Compare prime sites sion /sikjυəritiz ən ikstʃeind kə

| | |
second half /sekənd hɑf/ noun the

second half
miʃ(ə)n/ noun the official body which reg-
period of six months from 1st July to 31st ulates the securities markets in the US.
December 쑗 The figures for the second half Abbreviation SEC
are up on those for the first part of the year. Securities and Futures Authority /si
Securities and Futures Authority
second half-year /sekənd hɑf jiə/

second half-year
kjυəritiz ən fjutʃəz ɔθɒrəti/ noun in |
noun the six-month period from July to the the UK, a self-regulatory organisation which
end of December supervises the trading in shares and futures,
now part of the FSA. Abbreviation SFA
secondment /sikɒndmənt/ noun the
secondment
Securities and Investments Board

Securities and Investments Board
fact or period of being seconded to another

job for a period 쑗 She is on three years’ /sikjυəritiz ənd investmənts bɔd/
| |
secondment to an Australian college. noun the former regulatory body which reg-
ulated the securities markets in the UK, now
second mortgage /sekənd mɔid /
second mortgage
superseded by the FSA. Abbreviation SIB

noun a further mortgage on a property
which is already mortgaged securitisation /sikjυəritaizeiʃ(ə)n/,
securitisation
| |
securitization noun the process of making

second quarter /sekənd kwɔtə/ noun
second quarter
a loan or mortgage into a tradeable security

the period of three months from April to the by issuing a bill of exchange or other nego-
end of June tiable paper in place of it
secretary /sekrət(ə)ri/ noun an official
secretary
security /sikjυəriti/ noun 1. a guarantee

security
of a company or society whose job is to keep that someone will repay money borrowed 쑗
records and write letters to give something as security for a debt 쑗 to
Secretary of the Treasury use a house as security for a loan 쑗 The
Secretary of the Treasury
/sekrət(ə)ri əv ðə tre əri/ noun US a sen- bank lent him £20,000 without security. 왍 to
ior member of the government in charge of stand security for someone to guarantee
financial affairs that if the person does not repay a loan, you
secret reserves /sikrət rizvz/ plural
secret reserves
|
will repay it for him 2. a stock or share
noun reserves which are illegally kept hid- security deposit /sikjυəriti dipɒzit/
security deposit
| |
den in a company’s balance sheet, as noun an amount of money paid before a

203 separable net assets

transaction occurs to compensate the seller self-regulatory /self rejυleit(ə)ri/
self-regulatory
in the event that the transaction is not con- adjective referring to an organisation which
cluded and this is the buyer’s fault regulates itself
seed money /sid mni/ noun venture sell noun an act of selling 쐽 verb 1. to
seed money sell
capital invested when a new project is start- exchange something for money 쑗 to sell
ing up and therefore more risky than second- something on credit 쑗 The shop sells wash-
ary finance ing machines and refrigerators. 쑗 They tried
segmental reporting /sement(ə)l ri
segmental reporting
| |
to sell their house for £100,000. 쑗 Their
pɔtiŋ/ noun the act of showing in com- products are easy to sell. 2. to be bought 쑗
pany reports the results of a company or sec- These items sell well in the pre-Christmas
tions of it, separated according to the type of period. 쑗 Those packs sell for £25 a dozen.
business or geographical area (NOTE: selling – sold)
seller’s market /seləz mɑkit/ noun a
seller’s market
segment margin /semənt mɑd in/

segment margin
noun a measure of the profitability of a seg- market where the seller can ask high prices
ment of a business because there is a large demand for the prod-
uct. Opposite buyer’s market
segregation of duties /serieiʃ(ə)n
segregation of duties
selling costs /seliŋ kɒsts/, selling

selling costs
əv djutiz/ noun the dividing up of respon-

sibilities within a business in order to reduce overhead /seliŋ əυvəhed/ plural noun the
the potential for fraud or theft, e.g. by ensur- amount of money to be paid for the advertis-
ing that the person responsible for approving ing, reps’ commissions, and other expenses
invoices is not also responsible for signing involved in selling something
selling price /seliŋ prais/ noun the price
selling price
cheques
self-assessment /self əsesmənt/
self-assessment
|
at which someone is willing to sell some-
noun the process in which an individual tax- thing
selling price variance /seliŋ prais
selling price variance
payer calculates his or her own tax liability

and reports it to the Inland Revenue which veəriəns/ noun the difference between the
then issues a notice to pay 쑗 Self-assessment actual selling price and the budgeted selling
forms should be returned to the tax office by price
31st January. semi- /semi/ prefix half or part
semi-
self-balancing /self blənsiŋ/ noun a semiannual /seminjuəl/ adjective

self-balancing semiannual
situation in which there is equality of debits referring to interest paid every six months
and credits semi-fixed cost /semi fikst kɒst/ noun
semi-fixed cost
self-employed /self implɔid/ adjective

self-employed
| same as semi-variable cost

working for yourself or not on the payroll of semi-variable cost /semi veəriəb(ə)l
semi-variable cost
a company 쑗 a self-employed engineer 쑗 He kɒst/ noun the amount of money paid to

worked for a bank for ten years but is now produce a product, which increases, though
self-employed. less than proportionally, with the quantity of
self-employed contributions /self im
self-employed contributions
| the product made 쑗 Stepping up production

plɔid kɒntribjuʃ(ə)nz/ plural noun
| will mean an increase in semi-variable
National Insurance contributions made by costs. Also called semi-fixed cost
self-employed people senior /siniə/ adjective 1. referring to an
senior
self-financing /self fainnsiŋ/ noun

self-financing
|
employee who is more important 2. refer-
the process in which a company finances a ring to an employee who is older or who has
project or business activity from its own been employed longer than another 3. refer-
resources, rather than by applying for exter- ring to a sum which is repayable before oth-
nal finance ers
senior capital /siniə kpit(ə)l/ noun
senior capital
self-insurance /self inʃυərəns/ noun

self-insurance
insuring against a probable future loss by capital in the form of secured loans to a
putting money aside regularly, rather than by company. It is repaid before junior capital,
taking out an insurance policy such as shareholders’ equity, in the event of
self-regulation /self rejυleiʃ(ə)n/
self-regulation
|
liquidation.
sensitivity analysis /sensətivəti ə
sensitivity analysis
noun the regulation of an industry by its own | |
members, usually by means of a committee nləsis/ noun the analysis of the effect of a
that issues guidance and sets standards that small change in a calculation on the final
it then enforces (NOTE: For example, the result
separable net assets /sep(ə)rəb(ə)l
separable net assets
Stock Exchange is regulated by the Stock

Exchange Council.) net sets/ plural noun assets which can be

separate 204
separated from the rest of the assets of a offers a service such as banking, retailing or
business and sold off accountancy
separate /sep(ə)rət/ adjective not con- service life /svis laif/ noun the period
separate service life
nected with something during which an asset will bring benefit to a

sequester /sikwestə/, sequestrate
sequester
| company
/sikwistreit, sikwestreit/ verb to take service potential /svis pətenʃ(ə)l/
service potential
| |
and keep a bank account or property because noun future benefits that an asset is expected
a court has ordered it 쑗 The union’s funds to bring
have been sequestrated. services /svisiz/ plural noun 1. bene-
services
sequestration /sikwestreiʃ(ə)n/ noun

sequestration
| fits which are sold to customers or clients,

the act of taking and keeping property on the e.g. transport or education 쑗 We give advice
order of a court, especially of seizing prop- to companies on the marketing of services.
erty from someone who is in contempt of 쑗 We must improve the exports of both
court goods and services. 2. business of providing
sequestrator /sikwistreitə, si help in some form when it is needed, e.g.
sequestrator
kwestreitə/ noun a person who takes and insurance, banking, etc., as opposed to mak-
keeps property on the order of a court ing or selling goods
series /siəriz/ noun a group of items fol- set /set/ adjective fixed, or which cannot be
series set
lowing one after the other 쑗 A series of suc- changed 쑗 There is a set fee for all our con-
cessful takeovers made the company one of sultants. 쐽 verb to fix or to arrange some-
the largest in the trade. (NOTE: The plural is thing 쑗 We have to set a price for the new
series.) computer. 쑗 The price of the calculator has
Serious Fraud Office /siəriəs frɔd
Serious Fraud Office
been set low, so as to achieve maximum unit
ɒfis/ noun a British government depart- sales. (NOTE: setting – set)
ment in charge of investigating major fraud set against phrasal verb to balance one
in companies. Abbreviation SFO group of figures against another group to try
SERPS /sps/ abbreviation State Earn-
SERPS
to make them cancel each other out 쑗 to set
ings-Related Pension Scheme the costs against the sales revenue 쑗 Can
service /svis/ noun 1. the fact of work-
service
you set the expenses against tax?
ing for an employer, or the period of time set off /set ɒf/ verb to use a debt owed by
during which an employee has worked for one party to reduce a debt owed to them
set-off /set ɒf/ noun an agreement
set-off
an employer 쑗 retiring after twenty years

service to the company 쑗 The amount of between two parties to balance one debt
your pension depends partly on the number against another or a loss against a gain
settle /set(ə)l/ verb to place a property in
settle
of your years of service. 2. the work of deal-

ing with customers 쑗 The service in that res- trust
taurant is extremely slow 3. payment for settle on phrasal verb to leave property to
help given to the customer 쑗 to add on 10% someone when you die 쑗 He settled his
for service property on his children.
service bureau /svis bjυərəυ/ noun
service bureau
settlement /set(ə)lmənt/ noun 1. the

settlement
an office which specialises in helping other payment of an account 왍 we offer an extra

offices 5% discount for rapid settlement we take
service charge /svis tʃɑd / noun 1.
service charge
a further 5% off the price if the customer
a charge added to the bill in a restaurant to pays quickly 2. an agreement after an argu-
pay for service 2. an amount paid by tenants ment or negotiations 쑗 a wage settlement
in a block of flats or offices for general ‘…he emphasised that prompt settlement
maintenance, insurance and cleaning 3. a of all forms of industrial disputes would
charge which a bank or business makes for guarantee industrial peace in the country
carrying out work for a customer (NOTE: The and ensure increased productivity’ [Busi-
UK term is bank charge.) ness Times (Lagos)]
service contract /svis kɒntrkt/ settlement date /set(ə)lmənt deit/
service contract settlement date
noun a contract between a company and a noun a date when a payment has to be made
director showing all conditions of work 쑗 settlement day /set(ə)lmənt dei/ noun
settlement day
She worked unofficially with no service con- 1. the day on which shares which have been
tract. bought must be paid for. On the London
service industry /svis indəstri/ Stock Exchange the account period is three
service industry
noun an industry which does not produce business days from the day of trade. (NOTE:
raw materials or manufacture products but The US term is settlement date) 2. in the

205 share option scheme

US, the day on which securities bought actu- share disposals /ʃeə dispəυz(ə)lz/
share disposals
ally become the property of the purchaser plural noun the selling of shares, which is
seven-day money
seven-day money /sev(ə)n dei mni/ often subject to conditions

shareholder /ʃeəhəυldə/ noun a person
shareholder
noun an investment in financial instruments

which mature in seven days’ time who owns shares in a company 쑗 to call a
severally
severally /sev(ə)rəli/ adverb separately, shareholders’ meeting (NOTE: The US term

not jointly is stockholder.)
severance pay
severance pay /sev(ə)rəns pei/ noun ‘…as of last night the bank’s shareholders
money paid as compensation to an employee no longer hold any rights to the bank’s
whose job is no longer needed shares’ [South China Morning Post]
SFA ‘…the company said that its recent issue of
SFA abbreviation Securities and Futures 10.5% convertible preference shares at
Authority A$8.50 has been oversubscribed, boosting
SFAS
SFAS abbreviation Statement of Financial shareholders’ funds to A$700 million

Accounting Standards plus’ [Financial Times]
shareholders’ equity /ʃeəhəυldəz
SFO shareholders’ equity
SFO abbreviation Serious Fraud Office

shadow director
shadow director /ʃdəυ dairektə/ |

ekwiti/ noun 1. the value of a company
noun a person who is not a director of a which is the property of its ordinary share-
company, but who tells the directors of the holders (the company’s assets less its liabil-
company how to act ities) 2. a company’s capital which is
shadow economy invested by shareholders, who thus become
shadow economy /ʃdəυ ikɒnəmi/ |
owners of the company
noun same as black economy shareholders’ funds
shadow price
shareholders’ funds /ʃeəhəυldəz
shadow price /ʃdəυ prais/ noun the fndz/ plural noun the capital and reserves
estimated price of goods or a service for of a company
which no market price exists
shareholder value /ʃeəhəυldə vlju/
shareholder value
share
share /ʃeə/ noun 1. a part of something noun the total return to the shareholders in
that has been divided up among several peo- terms of both dividends and share price
ple or groups 2. one of many equal parts into growth, calculated as the present value of
which a company’s capital is divided 쑗 He future free cash flows of the business dis-
bought a block of shares in Marks and Spen- counted at the weighted average cost of the
cer. 쑗 Shares fell on the London market. 쑗 capital of the business less the market value
The company offered 1.8m shares on the of its debt
market. shareholder value analysis
shareholder value analysis

‘…falling profitability means falling share /ʃeəhəυldə vlju ənləsis/ noun a cal-
|
prices’ [Investors Chronicle] culation of the value of a company made by

‘…the share of blue-collar occupations looking at the returns it gives to its share-
declined from 48 per cent to 43 per cent’ holders. It assumes that the objective of a
[Sydney Morning Herald] company director is to maximise the wealth
share account
share account /ʃeər əkaυnt/ noun an

|
of the company’s shareholders, and is based
account at a building society where the on the premise that discounted cash flow
account holder is a member of the society. principles can be applied to the business as a
Building societies usually offer another type whole. Abbreviation SVA
of account, a deposit account, where the shareholding
shareholding /ʃeəhəυldiŋ/ noun a

account holder is not a member. A share group of shares in a company owned by one
account is generally paid a better rate of owner
interest, but in the event of the society going share incentive scheme /ʃeər in
share incentive scheme
into liquidation, deposit account holders are sentiv skim/ noun same as share option
given preference. scheme
share at par
share at par /ʃeər ət pɑ/ noun a share share option /ʃeər ɒpʃən/ noun a right
share option
whose value on the stock market is the same to buy or sell shares at an agreed price at a
as its face value time in the future
share capital
share capital /ʃeə kpit(ə)l/ noun the share option scheme
share option scheme /ʃeər ɒpʃən

value of the assets of a company held as skim/ noun a scheme that gives company
shares employees the right to buy shares in the
share certificate
share certificate /ʃeə sətifikət/ noun a

| company which employs them, often at a
document proving that you own shares special price

share premium 206

share premium /ʃeə primiəm/ noun short-dated bill /ʃɔt deitid bil/ noun
share premium short-dated bill
an amount to be paid above the nominal a bill which is payable within a few days
value of a share in order to buy it short-dated gilts /ʃɔt deitid ilts/
short-dated gilts
share purchase scheme /ʃeə ptʃəs

share purchase scheme
plural noun same as shorts

skim/ noun a scheme that allows employ- shorten /ʃɔt(ə)n/ verb 쑗 to shorten
shorten
ees to buy shares in a company at a favoura- credit terms 왍 to shorten a credit period to
ble rate make a credit period shorter, so as to
share quoted ex dividend /ʃeə
share quoted ex dividend
improve the company’s cash position

kwəυtid eks dividend/, share quoted shortfall /ʃɔtfɔl/ noun an amount which
shortfall
ex div /ʃeə kwəυtid eks div/ noun a is missing which would make the total
share price not including the right to receive expected sum 쑗 We had to borrow money to
the next dividend cover the shortfall between expenditure and
share register /ʃeə red istə/ noun a
share register
revenue.
list of shareholders in a company with their short-form report /ʃɔt fɔm ripɔt/
short-form report
addresses noun a standard brief auditor’s report sum-

share split /ʃeə split/ noun the act of
share split
marising the work done and the findings

dividing shares into smaller denominations short lease /ʃɔt lis/ noun a lease
short lease
share warrant /ʃeə wɒrənt/ noun a

share warrant
which runs for up to two or three years 쑗 We

document which says that someone has the have a short lease on our current premises.
right to a number of shares in a company short position /ʃɔt pəziʃ(ə)n/ noun a
short position
sharp practice /ʃɑp prktis/ noun a

sharp practice
situation where an investor sells short, i.e.

way of doing business which is not honest, sells forward shares which he or she does
but is not illegal not own. Compare long position
shelf registration /ʃelf
shelf registration
shorts /ʃɔts/ plural noun government

shorts
red istreiʃ(ə)n/ noun a registration of a stocks which mature in less than five years’
corporation with the SEC some time (up to time
two years is allowed) before it is offered for short-term /ʃɔt tm/ adjective 1. for a
short-term
sale to the public period of weeks or months 쑗 to place money

shell company /ʃel kmp(ə)ni/ noun a
shell company
on short-term deposit 쑗 She is employed on

company that has ceased to trade but is still a short-term contract. 2. for a short period in
registered, especially one sold to enable the the future 쑗 We need to recruit at once to
buyer to begin trading without having to set cover our short-term manpower require-
up a new company (NOTE: The US term is ments.
shell corporation.)
short-term capital /ʃɔt tm
short-term capital
‘…shell companies, which can be used to kpit(ə)l/ noun funds raised for a period of
hide investors’ cash, figure largely less than 12 months. 쒁 working capital
throughout the twentieth century’ [Times]
short-term debt ratio /ʃɔt tm det
short-term debt ratio
short /ʃɔt/ adjective, adverb 1. for a small

short
reiʃiəυ/ noun an indicator of whether or

period of time 2. less than what is expected not a company will be able to settle its
or desired 쑗 The shipment was three items immediate obligations
short. 쑗 My change was £2 short. 왍 when
short-term forecast /ʃɔt tm
short-term forecast
we cashed up we were £10 short we had

£10 less than we should have had 왍 to sell fɔkɑst/ noun a forecast which covers a
short, to go short to agree to sell at a future period of a few months
short-term investment /ʃɔt tm in
short-term investment
date something (such as shares) which you |
do not possess, but which you think you will vestmənt/ noun a section of a company’s
be able to buy for less before the time comes account that lists investments that will
when you have to sell them expire within one year
short-term loan /ʃɔt tm ləυn/ noun
short-term loan
short bill /ʃɔt bil/ noun a bill of

short bill
exchange payable at short notice a loan which has to be repaid within a few
short-change /ʃɔt tʃeind / verb to
short-change
weeks or some years
short-term security /ʃɔt tm si
short-term security
give a customer less change than is right, |
either by mistake or in the hope that it will kjυəriti/ noun a security which matures in
not be noticed less than 5 years
short credit /ʃɔt kredit/ noun terms shrinkage /ʃriŋkid / noun 1. the amount
short credit shrinkage
which allow the customer only a little time by which something gets smaller 쑗 to allow
to pay for shrinkage 2. losses of stock through

207 slush fund

theft, especially by the shop’s own staff single person who has a child of school age
(informal) living with them, now called the ‘additional
SIB abbreviation Securities and Invest-
SIB
personal allowance’
ments Board single premium policy /siŋ(ə)l
single premium policy
sick pay /sik pei/ noun pay paid to an

sick pay
primiəm pɒlisi/ noun an insurance policy

employee who is sick, even if he cannot where only one premium is paid rather than
work regular annual premiums
sight deposit /sait dipɒzit/ noun a sink /siŋk/ verb 1. to go down suddenly 쑗
sight deposit sink
bank deposit which can be withdrawn on Prices sank at the news of the closure of the
demand factory. 2. to invest money into something 쑗
sight draft /sait drɑft/ noun a bill of
sight draft
He sank all his savings into a car-hire busi-
exchange which is payable when it is pre- ness. (NOTE: sinking – sank – sunk)
sented sinking fund /siŋkiŋ fnd/ noun a fund
sinking fund
sign /sain/ verb to write your name in a

sign
built up out of amounts of money put aside

special way on a document to show that you regularly to meet a future need, such as the
have written it or approved it 쑗 The letter is repayment of a loan
signed by the managing director. 쑗 Our sinking fund method /siŋkiŋ fnd
sinking fund method
company cheques are not valid if they have meθəd/ noun a method of providing for
not been signed by the finance director. depreciation of an asset which links it to an
signatory /sinət(ə)ri/ noun a person
signatory
annuity that, at the end of the asset’s life,

who signs a contract, etc. 쑗 You have to get will have a value equal to the acquisition
the permission of all the signatories to the cost of the asset
agreement if you want to change the terms. sister company /sistə kmp(ə)ni/
sister company
signature /sinitʃə/ noun a person’s

signature
noun a company that is part of the same

name written by themselves on a cheque, group as another
document or letter 쑗 She found a pile of sitting tenant /sitiŋ tenənt/ noun a ten-
sitting tenant
cheques on his desk waiting for signature. 쑗 ant who is occupying a building when the
All our company’s cheques need two signa- freehold or lease is sold 쑗 The block of flats
tures. is for sale with four flats vacant and two
simple average cost /simpəl
simple average cost
with sitting tenants.

v(ə)rid kɒst/, simple average price
skimming /skimiŋ/ noun the unethical
skimming
/simpəl v(ə)rid prais/ noun the aver-

age cost of stock received during a period and usually illegal practice of taking small
calculated at the end of the period as the amounts of money from accounts that
average unit price of each delivery of stock, belong to other individuals or organisations
sleeping partner /slipiŋ pɑtnə/ noun
sleeping partner
rather than an average price of each unit

delivered as in weighted average price a partner who has a share in the business but
simple interest /simpəl intrəst/ noun
simple interest
does not work in it
slide /slaid/ verb to move down steadily 쑗
slide
interest calculated on the capital invested

only, as distinct from compound interest Prices slid after the company reported a
which is calculated on capital and accumu- loss. (NOTE: sliding – slid)
lated interest slow payer /sləυ peiə/ noun a person or
slow payer
simple rate of return /simpəl reit əv ri

simple rate of return
| company that does not pay debts on time 쑗

tn/ noun a measure of a company’s prof- The company is well known as a slow payer.
itability calculated by dividing the expected slump /slmp/ noun 1. a rapid fall 쑗 the
slump
future annual net income by the required slump in the value of the pound 쑗 We expe-
investment rienced a slump in sales or a slump in prof-
single-entry bookkeeping /siŋ(ə)l
single-entry bookkeeping
its. 2. a period of economic collapse with

entri bυkkipiŋ/ noun a method of book- high unemployment and loss of trade 쑗 We
keeping where payments or sales are noted are experiencing slump conditions. 쐽 verb
with only one entry per transaction, usually to fall fast 쑗 Profits have slumped. 쑗 The
in the cash book pound slumped on the foreign exchange
single-figure inflation /siŋ(ə)l fiə
single-figure inflation
markets.
infleiʃ(ə)n/ noun inflation rising at less
|
slush fund /slʃ fnd/ noun money kept
slush fund
than 10% per annum to one side to give to people to persuade

single-parent allowance /siŋ(ə)l them to do what you want 쑗 The party was
single-parent allowance
peərənt əlaυəns/ noun a former name for

| accused of keeping a slush fund to pay for-
the tax allowance which can be claimed by a eign businessmen.

small business 208

small and medium-sized enter- plural noun regular payments by employees
small business
prises /smɔl ən midiəm saizd and employers to the National Insurance

entəpraiziz/ plural noun organisations that scheme
have between 10 and 250 employees and are society /səsaiəti/ noun the way in which
society
usually in the start-up or growth stage of the people in a country are organised
development. Abbreviation SMEs
soft currency /sɒft krənsi/ noun the
soft currency
small business /smɔl biznis/ noun a

small business
currency of a country with a weak economy,

company which has an annual turnover of which is cheap to buy and difficult to
less than £5.6 million and does not employ exchange for other currencies. Opposite
more than 50 staff hard currency
Small Business Administration
Small Business Administration
soft landing /sɒft lndiŋ/ noun a

soft landing
/smɔl biznis ədministreiʃ(ə)n/ noun

|
change in economic strategy to counteract
US a federal agency that advises small busi- inflation, which does not cause unemploy-
nesses and helps them obtain loans to ment or a fall in the standard of living, and
finance their businesses. Abbreviation SBA has only minor effects on the bulk of the
small businessman /smɔl
small businessman
population
biznismn/ noun a man who owns a small
soft loan /sɒft ləυn/ noun a loan from a
soft loan
business company to an employee or from one gov-

small change /smɔl tʃeind / noun
small change
ernment to another at a very low rate of

coins interest or with no interest payable at all
small claim /smɔl kleim/ noun a claim
small claim
sole agency /səυl eid ənsi/ noun an

sole agency
for less than £5000 in the County Court agreement to be the only person to represent
small claims court /smɔl kleimz
small claims court
a company or to sell a product in a particular

kɔt/ noun a court which deals with dis- area 쑗 He has the sole agency for Ford cars.
putes over small amounts of money sole agent /səυl eid ənt/ noun a person
sole agent
small companies rate /smɔl

small companies rate
who has the sole agency for a company in an

kmp(ə)niz reit/ noun a rate of corpora- area 쑗 She is the sole agent for Ford cars in
tion tax charged on profits of small compa- the locality.
nies
sole distributor /səυl distribjυtə/
sole distributor
small company /smɔl kmp(ə)ni/

small company
noun a retailer who is the only one in an area

noun same as small business who is allowed to sell a product
SMEs abbreviation small and medium-
SMEs
sole owner /səυl əυnə/ noun a person

sole owner
sized enterprises who owns a business on their own, with no

SMP abbreviation statutory maternity pay
SMP
partners, and has not formed a company

social /səυʃ(ə)l/ adjective referring to
social
sole proprietor /səυl prəpraiətə/, sole

sole proprietor
society in general trader /səυl treidə/ noun a person who

social audit /səυʃ(ə)l ɔdit/ noun a sys-
social audit
runs a business, usually by him- or herself,

tematic assessment of an organisation’s but has not registered it as a company
effects on society or on all those who can be solvency /sɒlv(ə)nsi/ noun the state of
solvency
seen as its stakeholders. A social audit cov- being able to pay all debts on due date.
ers such issues as internal codes of conduct, Opposite insolvency
business ethics, human resource develop-
solvency margin /sɒlv(ə)nsi mɑd in/
solvency margin
ment, environmental impact, and the organ-

isation’s sense of social responsibility. 쑗 noun a business’s liquid assets that exceeds
The social audit focused on the effects of the amount required to meet its liabilities
pollution in the area. 쑗 The social audit solvency ratio /sɒlv(ə)nsi reiʃiəυ/
solvency ratio
showed that the factory could provide jobs noun the ratio of assets to liabilities, used to
for five per cent of the unemployed in the measure a company’s ability to meet its
small town nearby. debts
Social Charter /səυʃ(ə)l tʃɑtə/ noun
Social Charter
solvent /sɒlv(ə)nt/ adjective having

solvent
same as European Social Charter enough money to pay debts 쑗 When she
social impact statement /səυʃ(ə)l
social impact statement
bought the company it was barely solvent.
impkt steitmənt/ noun an assessment sort code /sɔt kəυd/ noun a combina-
sort code
of the impact of the non-profit activities of tion of numbers that identifies a bank branch
an organisation on a specific social area on official documentation, such as bank
social security contributions
social security contributions
statements and cheques (NOTE: The US term

/səυʃ(ə)l sikjυəriti kɒntribjuʃ(ə)nz/
| | is routing number.)

209 spot market

source /sɔs/ noun the place where some- specie /spiʃi/ noun money in the form of
source specie
thing comes from 쑗 What is the source of coins

her income? 쑗 You must declare income specification /spesifikeiʃ(ə)n/ noun
specification
from all sources to the tax office. detailed information about what or who is
source and application of funds
source and application of funds statement
needed or about a product to be supplied 쑗

statement /sɔs ənd plikeiʃ(ə)n əv to detail the specifications of a computer
fndz steitmənt/, sources and uses of system 왍 the work is not up to specifica-
funds statement /sɔsiz ən juziz əv tion or does not meet our specifications
fndz steitmənt/ noun a statement in a the product is not made in the way which
company’s annual accounts, showing where was detailed
new funds came from during the year, and specific order costing /spəsifik ɔdə
specific order costing
how they were used kɒstiŋ/ noun same as job costing

source document /sɔs dɒkjυmənt/
source document
specify /spesifai/ verb to state clearly

specify
noun a document upon which details of what is needed 쑗 to specify full details of the
transactions or accounting events are goods ordered 쑗 Do not include VAT on the
recorded and from which information is invoice unless specified. (NOTE: specifies –
extracted to be subsequently entered into the specifying – specified)
internal accounting system of an organisa- spend /spend/ verb to pay money 쑗 They
spend
tion, e.g., a sales invoice or credit note spent all their savings on buying the shop. 쑗
spare /speə/ adjective extra, not being
spare
The company spends thousands of pounds

used 쑗 He has invested his spare capital in on research.
a computer shop. spending /spendiŋ/ noun the act of pay-
spending
SPE abbreviation special purpose entity ing money for goods and services 쑗 Both
SPE
special audit /speʃ(ə)l ɔdit/ noun an

special audit
cash spending and credit card spending
audit with a narrow remit specified by a gov- increase at Christmas.
spending money /spendiŋ mni/
spending money
ernment agency
Special Commissioner /speʃ(ə)l kə
Special Commissioner
|
noun money for ordinary personal expenses
split-capital trust /split kpit(ə)l
split-capital trust
miʃ(ə)nə/ noun an official appointed by the

Treasury to hear cases where a taxpayer is trst/ noun same as split-level invest-
appealing against an income tax assessment ment trust
split commission /split kəmiʃ(ə)n/
split commission
special deposits /speʃ(ə)l dipɒzits/

special deposits
|
|
plural noun large sums of money which noun commission which is divided between
commercial banks have to deposit with the brokers or agents
split-level investment trust /split
split-level investment trust
Bank of England
special drawing rights /speʃ(ə)l
special drawing rights
lev(ə)l investmənt trst/ noun an
|
drɔiŋ raits/ plural noun units of account investment trust with two categories of
used by the International Monetary Fund, shares: income shares which receive income
allocated to each member country for use in from the investments, but do not benefit
loans and other international operations. from the rise in their capital value, and cap-
Their value is calculated daily on the ital shares, which increase in value as the
weighted values of a group of currencies value of the investments rises, but do not
shown in dollars. Abbreviation SDRs receive any income. Also called split trust,
split-capital trust
special journal /speʃ(ə)l d n(ə)l/
special journal
split payment /split peimənt/ noun a

split payment
noun a journal in which entries of a speci-

fied type are recorded payment which is divided into small units
split trust /split trst/ noun same as
split trust
special purpose entity /speʃ(ə)l

special purpose entity
ppəs entiti/, special purpose vehicle split-level investment trust

spoilage /spɔilid / noun 1. waste arising
spoilage
noun a separate business entity created to

carry out a specific transaction or business from decay or damage 2. the amount of
unrelated to a company’s main business. something wasted because of decay or dam-
Abbreviation SPE, SPV age
spot cash /spɒt kʃ/ noun cash paid for
spot cash
special resolution /speʃ(ə)l rezə

special resolution
luʃ(ə)n/ noun a resolution concerning an something bought immediately

spot market /spɒt mɑkit/ noun a mar-
spot market
important matter, such as a change to the

company’s articles of association which is ket that deals in commodities or foreign
only valid if it is approved by 75% of the exchange for immediate rather than future
votes cast at a meeting delivery

spot price 210

‘…with most of the world’s oil now traded begin and end at the same time 쑗 We asked
on spot markets, Opec’s official prices are our supplier to stagger deliveries so that the
much less significant than they once were’ warehouse can cope.
[Economist] stagnant
stagnant /stnənt/ adjective not active,

spot price /spɒt prais/, spot rate /spɒt
spot price
not increasing 쑗 Turnover was stagnant for

reit/ noun a current price or rate for some- the first half of the year. 쑗 A stagnant econ-
thing which is delivered immediately. Also omy is not a good sign.
called cash price stagnate
‘…the average spot price of Nigerian light

stagnate /stneit/ verb not to increase,
|
crude oil for the month of July was 27.21 not to make progress 쑗 The economy is stag-
dollars per barrel’ [Business Times nating.
stagnation
(Lagos)] stagnation /stneiʃ(ə)n/ noun the

|
spread /spred/ noun 1. same as range 2.

spread
state of not making any progress, especially
the difference between buying and selling in economic matters 쑗 The country entered
prices, i.e. between the bid and offer prices a period of stagnation.
쐽 verb to space something out over a period
stake
stake /steik/ noun an amount of money

of time 쑗 to spread payments over several invested
months ‘…her stake, which she bought at $1.45
‘…dealers said markets were thin, with per share, is now worth nearly $10 mil-
gaps between trades and wide spreads lion’ [Times]
between bid and ask prices on the curren- ‘…other investments include a large stake
cies’ [Wall Street Journal] in a Chicago-based insurance company, as
‘…to ensure an average return you should well as interests in tobacco products and
hold a spread of different shares covering hotels’ [Lloyd’s List]
a wide cross-section of the market’ [Inves- stakeholder
tors Chronicle] stakeholder /steikhəυldə/ noun a per-

spreading /sprediŋ/ noun an action of
spreading son or body that is directly or indirectly
spacing income from artistic work such as involved with a company or organisation
royalties over a period of time, and not con- and has an interest in ensuring that it is suc-
centrating it in the year in which the money cessful (NOTE: A stakeholder may be an
employee, customer, supplier, partner, or
is received
even the local community within which an
spreadsheet /spredʃit/ noun a compu-
spreadsheet
organisation operates.)
ter printout or program that shows a series of
columns or rows of figures ‘…the stakeholder concept is meant to be
a new kind of low-cost, flexible personal
SPV abbreviation special purpose vehicle
SPV
pension aimed at those who are less well-

Square Mile /skweə mail/ noun the City
Square Mile
off. Whether it will really encourage them

of London, the British financial centre to put aside money for retirement is a moot
squeeze /skwiz/ noun government con-
squeeze
point. Ministers said companies would be
trol carried out by reducing the availability able to charge no more than 1 per cent a
of something year to qualify for the stakeholder label’
‘…the real estate boom of the past three [Financial Times]
stakeholder pension
years has been based on the availability of stakeholder pension /steikhəυldə

easy credit. Today, money is tighter, so penʃən/ noun a pension, provided through
property should bear the brunt of the credit a private company, in which the income a
squeeze’ [Money Observer] person has after retirement depends on the
SSAPs abbreviation Statements of Stand- amount of contributions made during their
SSAPs
ard Accounting Practice working life (NOTE: Stakeholder pensions

staff incentives /stɑf insentivz/ plu-
staff incentives
|
are designed for people without access to
ral noun higher pay and better conditions an occupational pension scheme.)
offered to employees to make them work stakeholder theory
stakeholder theory /steikhəυldə

better θiəri/ noun the theory that it is possible for
stag /st/ noun a person who buys new an organisation to promote the interests of
stag
issues of shares and sells them immediately its shareholders without harming the inter-
to make a profit ests of its other stakeholders such as its
staged payments /std d peimənts/
staged payments
employees, suppliers and the wider commu-
plural noun payments made in stages nity
stamp duty
stagger /stə/ verb to arrange holidays stamp duty /stmp djuti/ noun a tax
stagger
or working hours so that they do not all on legal documents such as those used, e.g.,

211 statement
for the sale or purchase of shares or the con- starting salary /stɑtiŋ sləri/ noun a
starting salary
veyance of a property to a new owner salary for an employee when he or she starts
stand-alone cost method /stnd ə
stand-alone cost method
| work with a company

ləυn kɒst meθəd/ noun a method that start-up /stɑt p/ noun the beginning of
start-up
divides common costs among all users a new company or new product 쑗 We went
standard agreement /stndəd ə
standard agreement
| into the red for the first time because of the

rimənt/, standard contract /stndəd costs for the start-up of our new subsidiary.
kɒntrkt/ noun a normal printed contract ‘It’s unusual for a venture capitalist to be
form focused tightly on a set of companies with
standard cost /stndəd kɒst/ noun a
standard cost
a common technology base, and even
future cost which is calculated in advance more unusual for the investment fund
and against which estimates are measured manager to be picking start-ups that will
standard costing /stndəd kɒstiŋ/
standard costing be built on a business he’s currently run-
ning.’ [InformationWeek]
noun the process of planning costs for the
start-up financing /stɑt p
start-up financing
period ahead and, at the end of the period,

comparing these figures with actual costs in fainnsiŋ/ noun the first stage in financing
order to make necessary adjustments in a new project, which is followed by several
planning rounds of investment capital as the project
standard cost system /stndəd kɒst
standard cost system gets under way
state /steit/ noun 1. an independent coun-
state
sistəm/ noun a system that records costs at

standard levels, rather than at actual levels try 2. a semi-independent section of a fed-
standard direct
standard direct labour cost
labour cost eral country such as the US 쐽 verb to say

/stndəd dairekt leibə kɒst/ noun the clearly 쑗 The document states that all reve-
nue has to be declared to the tax office. 왍 as
|
cost of labour calculated to produce a prod-

uct according to specification, used to meas- per account stated the same amount as
ure estimates shown on the account or invoice
standard letter /stndəd letə/ noun a
standard letter
‘…the unions had argued that public sec-
letter which is sent without change to vari- tor pay rates had slipped behind rates
ous correspondents applying in state and local government
areas’ [Australian Financial Review]
standard opinion /stndəd əpinjən/
standard opinion
state bank /steit bŋk/ noun in the US,

| state bank
noun an accountant’s judgement that a com-

pany’s financial information has been pre- a commercial bank licensed by the authori-
sented in a way that is both fair and consist- ties of a state, and not necessarily a member
ent with presentation in previous years of the Federal Reserve system. Compare
national bank
standard rate /stndəd reit/ noun a
standard rate
state benefits /steit benifits/ plural

state benefits
basic rate of income tax which is paid by

most taxpayers noun payments which are made to someone
under a national or private scheme
standby credit /stndbai kredit/ noun
standby credit
stated capital /steitid kpit(ə)l/ noun

stated capital
1. credit which is available if a company

needs it, especially credit guaranteed by a the amount of a company’s capital contrib-
euronote 2. credit which is available and uted by shareholders
State Earnings-Related Pension
State Earnings-Related Pension Scheme
which can be drawn on if a country needs it,

especially credit guaranteed by a lender (a Scheme /steit niŋz rileitid penʃən|
group of banks or the IMF in the case of a skim/ noun 쏡 State Second Pension
statement /steitmənt/ noun something
statement
member country) and usually in dollars

standing order /stndiŋ ɔdə/ noun an
standing order
said or written which describes or explains
order written by a customer asking a bank to something clearly
pay money regularly to an account 쑗 I pay statement of account /steitmənt əv ə
statement of account
my subscription by standing order. kaυnt/ noun a list of sums due, usually

start /stɑt/ noun the beginning 쐽 verb to
start
relating to unpaid invoices
begin to do something 왍 to start a business statement of affairs /steitmənt əv ə
statement of affairs
from cold or from scratch to begin a new feəz/ noun a financial statement drawn up
business, with no previous turnover to base when a person is insolvent
it on Statement of Auditing Standards
statement
starting rate of tax /stɑtiŋ reit əv /steitmənt əv ɔditiŋ stndədz/ noun

starting rate of tax
tks/ noun a tax rate (currently 10%) paid an auditing standard, issued by the Auditing
on the first segment of taxable income, Practices Board, containing prescriptions as
before the basic rate applies to the basic principles and practices which

statement of cash flows 212

members of the UK accountancy bodies are based on average earnings over an
expected to follow in the course of an audit. employee’s career, formerly called the State
Abbreviation SAS Earnings-related Pension Scheme or SERPS
statement of cash flows /steitmənt statistical /stətistik(ə)l/ adjective based
statement of cash flows statistical
əv kʃ fləυz/ noun a statement that docu- on statistics 쑗 statistical information 쑗 They
ments actual receipts and expenditures of took two weeks to provide the statistical
cash analysis of the opinion-poll data.
statement-of-cash-flows method
statement-of-cash-flows method
statistical discrepancy /stətistik(ə)l

statistical discrepancy
/steitmənt əv kʃ fləυz meθəd/ noun a diskrepənsi/ noun the amount by which
|
method of accounting that is based on flows sets of figures differ

of cash rather than balances on accounts statistical quality control /stə
statistical quality control
statement of changes in financial

statement of changes in financial position
tistik(ə)l kwɒliti kəntrəυl/ noun the |
position /steitmənt əv tʃeind iz in fai | process of inspecting samples of a product

nnʃəl pəziʃ(ə)n/ noun a financial report
| to check that quality standards are being met
of a company’s incomes and outflows dur- statistician /sttistiʃ(ə)n/ noun a per-
statistician
ing a period, usually a year or a quarter son who analyses statistics

Statement of Financial Accounting
Statement of Financial Accounting Standards
statistics /stətistiks/ plural noun 1. facts

statistics
Standards /steitmənt əv fainnʃ(ə)l ə | |

or information in the form of figures 쑗 to
kaυntiŋ stndədz/ noun in the US, a examine the sales statistics for the previous
statement detailing the standards to be six months 쑗 Government trade statistics
adopted for the preparation of financial show an increase in imports. 쑗 The statistics
statements. Abbreviation SFAS on unemployment did not take school-leav-
Statement of Principles /steitmənt
Statement of Principles
ers into account. (NOTE: takes a plural verb)

əv prinsip(ə)lz/ noun a document in which 2. the study of facts in the form of figures
the Accounting Standards Board sets out the (NOTE: takes a singular verb)
principles governing the carrying out of status /steitəs/ noun the importance of
status
financial reporting in the UK and the Repub- someone or something relative to others,
lic of Ireland especially someone’s position in society
statement of realisation and liquida-
statement of realisation and liquidation
status inquiry /steitəs inkwaiəri/

status inquiry
tion /steitmənt əv riəlaizeiʃ(ə)n ən |

noun the act of checking on a customer’s
likwideiʃ(ə)n/ noun a statement of the
|
credit rating
financial position of a company going out of
status quo /steitəs kwəυ/ noun the
status quo
business
state of things as they are now 쑗 The con-
statement of retained earnings
statement of retained earnings
tract does not alter the status quo.

/steitmənt əv riteind niŋz/ noun a |
statute /sttʃut/ noun an established

statute
statement accompanying a balance sheet

and giving details of the movement of written law, especially an Act of Parliament.
retained earnings during an accounting Also called statute law
statute-barred /sttʃut bɑd/ adjec-
statute-barred
period
Statements of Standard Accounting
Statements of Standard Accounting Practice
tive referring to legal action which cannot be
Practice /steitmənts əv stndəd ə |
pursued because the time limit for it has
kaυntiŋ prktis/ plural noun rules laid expired
statute book /sttʃut bυk/ noun all
statute book
down by the Accounting Standards Board

for the preparation of financial statements. laws passed by Parliament which are still in
Abbreviation SSAPs force
statute law /sttʃut lɔ/ noun same as
statute law
state of indebtedness /steit əv in

state of indebtedness
detidnəs/ noun the fact of being in debt, statute

owing money statutory /sttʃυt(ə)ri/ adjective fixed
statutory
state pension /steit penʃən/ noun a

state pension
by law 쑗 There is a statutory period of pro-
pension that is provided by the state and bation of thirteen weeks. 쑗 Are all the
funded from National Insurance payments employees aware of their statutory rights?
state retirement pension /steit ri statutory audit /sttʃυt(ə)ri ɔdit/
state retirement pension statutory audit
taiəmənt penʃən/ noun a pension paid by noun an audit carried out on the instructions
the state to people when they reach the stat- of, and with a remit set by, a governmental
utory retirement age agency
State Second Pension /steit sekənd statutory auditor /sttʃυt(ə)ri ɔditə/
State Second Pension statutory auditor
penʃ(ə)n/ noun a state pension that is addi- noun a professional person qualified to carry
tional to the basic retirement pension and is out an audit required by the Companies Act

213 stock ledger

statutory books /sttʃυt(ə)ri bυks/ average supermarket stocks more than 4500
statutory books
plural noun company records required by lines.

law, e.g. a register of members ‘US crude oil stocks fell last week by
statutory instrument /sttʃυt(ə)ri
statutory instrument
nearly 2.5m barrels’ [Financial Times]
instrυmənt/ noun an order which has the ‘…the stock rose to over $20 a share,
force of law, made under authority granted higher than the $18 bid’ [Fortune]
to a minister by an Act of Parliament stockbroker /stɒkbrəυkə/ noun a per-
stockbroker
statutory maternity pay /sttʃυt(ə)ri

statutory maternity pay
son who buys or sells shares for clients
mətniti pei/ noun in the UK, payment stockbroking /stɒkbrəυkiŋ/ noun the
stockbroking
made by an employer to an employee who is business of dealing in shares for clients 쑗 a

on maternity leave, for a continuous period stockbroking firm
up to 39 weeks. Abbreviation SMP stock certificate /stɒk sətifikət/ noun
stock certificate
statutory regulations /sttʃυt(ə)ri

statutory regulations
a document proving that someone owns

rejυleiʃ(ə)nz/ plural noun regulations
| stock in a company
covering financial dealings which are based stock code /stɒk kəυd/ noun a set of
stock code
on Acts of Parliament, such as the Financial numbers and letters which refer to an item of
Services Act, as opposed to the rules of self- stock
regulatory organisations which are non-stat- stock company /stɒk kmpəni/ noun
stock company
utory a company that has its capital divided into

stay of execution /stei əv eksi
stay of execution
| shares that are freely tradable

kjuʃ(ə)n/ noun the temporary stopping of stock control /stɒk kəntrəυl/ noun the
stock control
a legal order 쑗 The court granted the com- process of making sure that the correct level
pany a two-week stay of execution. of stock is maintained, to be able to meet
stepped costs /stept kɒsts/ plural
stepped costs
demand while keeping the costs of holding

noun costs which remain fixed up to some stock to a minimum
level of activity but then rise to a new, higher stock controller /stɒk kəntrəυlə/
stock controller
level once that level of activity is exceeded noun a person who notes movements of
sterling /stliŋ/ noun the standard cur-
sterling
stock
rency used in the United Kingdom 쑗 to stock depreciation /stɒk dipriʃi
stock depreciation
quote prices in sterling or to quote sterling eiʃ(ə)n/ noun a reduction in value of stock
prices which is held in a warehouse for some time
‘…it is doubtful that British goods will Stock Exchange /stɒk ikstʃeind /
Stock Exchange
price themselves back into world markets noun a place where stocks and shares are
as long as sterling labour costs continue to bought and sold 쑗 He works on the Stock
rise faster than in competitor countries’ Exchange. 쑗 Shares in the company are
[Sunday Times] traded on the Stock Exchange.
sterling area /stliŋ eəriə/ noun for-
sterling area
‘…the news was favourably received on

merly, the area of the world where the pound the Sydney Stock Exchange, where the
sterling was the main trading currency shares gained 40 cents to A$9.80’ [Finan-
sterling balances /stliŋ blənsiz/
sterling balances
cial Times]
Stock Exchange listing /stɒk iks
Stock Exchange listing
plural noun a country’s trade balances |
expressed in pounds sterling tʃeind listiŋ/ noun the fact of being on

sterling crisis /stliŋ kraisis/ noun a
sterling crisis
the official list of shares which can be
fall in the exchange rate of the pound ster- bought or sold on the Stock Exchange 쑗 The
ling company is planning to obtain a Stock
Exchange listing.
sterling index /stliŋ indeks/ noun an
sterling index
stock figures /stɒk fiəz/ plural noun

stock figures
index which shows the current value of ster-

ling against a basket of currencies details of how many goods are in the ware-
house or store
stock /stɒk/ noun 1. the available supply
stock
stockholder /stɒkhəυldə/ noun US

stockholder
of raw materials 쑗 large stocks of oil or coal

쑗 the country’s stocks of butter or sugar 2.
same as shareholder
stockholding /stɒkhəυldiŋ/ noun the
stockholding
especially UK the quantity of goods for sale

in a warehouse or retail outlet. Also called shares in a company held by someone
stock-in-trade /stɒk in treid/ noun
stock-in-trade
inventory 3. shares in a company 4. invest-

ments in a company, represented by shares goods held by a business for sale
or fixed interest securities 쐽 verb to hold stock ledger /stɒk led ə/ noun a book
stock ledger
goods for sale in a warehouse or store 쑗 The which records quantities and values of stock

stock level 214

stock level /stɒk lev(ə)l/ noun the quan- strategic management accounting
stock level strategic management accounting
tity of goods kept in stock 쑗 We try to keep /strətid ik mnid mənt əkaυntiŋ/
| |
stock levels low during the summer. noun a form of management accounting in
stock market /stɒk mɑkit/ noun a
stock market
which emphasis is placed on information
place where shares are bought and sold, i.e. which relates to factors external to the firm,
a stock exchange 쑗 stock market price or as well as non-financial information and
price on the stock market internally generated information
strategy /strtəd i/ noun a course of
strategy
stock market valuation /stɒk mɑkit

stock market valuation
vljueiʃ(ə)n/ noun the value of a com-

|
action, including the specification of
pany based on the current market price of its resources required, to achieve a specific
shares objective 쑗 a financial strategy 쑗 a pricing
strategy 쑗 Part of the company’s strategy to
stock option /stɒk ɒpʃən/ noun US
stock option
meet its marketing objectives is a major

same as share option recruitment and retraining programme.
stocks and shares /stɒks ən ʃeəz/
stocks and shares
(NOTE: The plural is strategies.)

plural noun shares in ordinary companies strike /straik/ verb 왍 a deal was struck at
strike
stocktaking /stɒkteikiŋ/, stocktake

stocktaking
£25 a unit we agreed the price of £25 a unit

/stɒkteik/ noun the counting of goods in strong /strɒŋ/ adjective with a lot of force
strong
stock at the end of an accounting period 쑗 or strength 쑗 This Christmas saw a strong
The warehouse is closed for the annual demand for mobile phones. 쑗 The company
stocktaking. needs a strong chairman.
stocktaking sale /stɒkteikiŋ seil/
stocktaking sale
‘…everybody blames the strong dollar for

noun a sale of goods cheaply to clear a ware- US trade problems’ [Duns Business
house before stocktaking Month]
stock transfer form /stɒk trnsf
stock transfer form
‘…in a world of floating exchange rates

fɔm/ noun a form to be signed by the per- the dollar is strong because of capital
son transferring shares inflows rather than weak because of the
stock turn /stɒk tn/, stock turnround
stock turn
nation’s trade deficit’ [Duns Business
/stɒk tnraυnd/, stock turnover /stɒk Month]
strongbox /strɒŋbɒks/ noun a heavy
strongbox
tnəυvə/ noun the total value of stock sold

in a year divided by the average value of metal box which cannot be opened easily, in
goods in stock which valuable documents and money can
stock valuation /stɒk vljueiʃ(ə)n/
stock valuation
|
be kept
strong currency /strɒŋ krənsi/ noun
strong currency
noun an estimation of the value of stock at

the end of an accounting period a currency which has a high value against
stop-loss order /stɒp lɒs ɔdə/ noun
stop-loss order
other currencies
strong pound /strɒŋ paυnd/ noun a
strong pound
an instruction to a stockbroker to sell a share

if the price falls to an specified level (NOTE: pound which is high against other currencies
The US term is stop order.) structure /strktʃə/ noun the way in
structure
storage capacity /stɔrid kəpsiti/

storage capacity
| which something is organised 쑗 The paper

noun the space available for storage gives a diagram of the company’s organisa-
store card /stɔ kɑd/ noun a credit card
store card
tional structure. 쑗 The company is reorgan-
issued by a large department store, which ising its discount structure.
sub /sb/ noun wages paid in advance
sub
can only be used for purchases in that store

subcontract /sbkəntrkt/ verb (of a
subcontract
straddle /strd(ə)l/ noun 1. a spread, the

straddle
|
difference between bid and offer price 2. the main contractor) to agree with a company
act of buying a put option and a call option that they will do part of the work for a
at the same time project 쑗 The electrical work has been sub-
straight line depreciation /streit lain
straight line depreciation
contracted to Smith Ltd
subcontractor /sbkəntrktə/ noun a
subcontractor
dipriʃieiʃ(ə)n/ noun a form of deprecia-

| |
|
tion that divides the cost of a fixed asset company which has a contract to do work
evenly over each year of its anticipated life- for a main contractor
time subject to /sbd ikt tu/ adjective
subject to
strategic cost management /strə

strategic cost management
|
depending on
tid ik kɒst mnid mənt/ noun the use sublease /sblis/ verb to lease a leased
sublease
of cost information made by management to property from another tenant 쑗 They sub-
achieve the aims of a company leased a small office in the centre of town.

215 success
sublessee /sblesi/ noun a person or subsidiary for recording transactions with its
sublessee
company that takes a property on a sublease parent company

sublessor /sblesɔ/ noun a tenant who
sublessor
subsidise /sbsidaiz/, subsidize verb

subsidise
leases a leased property to another tenant to help by giving money 쑗 The government
sublet /sblet/ verb to let a leased prop- has refused to subsidise the car industry.
sublet
erty to another tenant 쑗 We have sublet part subsidised

subsidised accommodation
accommodation
of our office to a financial consultancy. /sbsidaizd əkɒmədeiʃ(ə)n/ noun | |
(NOTE: subletting – sublet) cheap accommodation which is partly paid

subordinated debt /sbɔdineitid
subordinated debt
| for by an employer or a local authority

det/ noun a loan that has less of a claim on subsidy /sbsidi/ noun 1. money given to
subsidy
assets or earnings than another debt help something which is not profitable 쑗
subordinated loan /səbɔdinətid
subordinated loan
|
The industry exists on government subsidies.
ləυn/ noun a loan which ranks after all 쑗 The government has increased its subsidy
other borrowings as regards payment of to the car industry. 2. money given by a gov-
interest or repayment of capital ernment to make something cheaper 쑗 the
subscribe /səbskraib/ verb 왍 to sub-
subscribe
| subsidy on rail transport (NOTE: The plural

scribe for shares, to subscribe to a share is subsidies.)
issue to apply for shares in a new company subtenancy /sbtenənsi/ noun an
subtenancy
subscription /səbskripʃən/ noun 1.

subscription
|
agreement to sublet a property
money paid in advance for a series of issues subtenant /sbtenənt/ noun a person or
subtenant
of a magazine, for membership of a society, company to which a property has been sub-
or for access to information on a website 쑗 let
Did you remember to pay the subscription to
subtotal /sbtəυt(ə)l/ noun the total of
subtotal
the computer magazine? 쑗 She forgot to |
renew her club subscription. 2. 왍 subscrip- one section of a complete set of figures 쑗
tion to a new share issue application to buy She added all the subtotals to make a grand
shares in a new company 왍 the subscrip- total.
subtract /səbtrkt/ verb to take away
subtract
tion lists close at 10.00 on September 24th |
no new applicants will be allowed to sub- something from a total 쑗 The credit note
scribe for the share issue after that date should be subtracted from the figure for total
subscription
subscription price
price /səbskripʃən |
sales. 쑗 If the profits from the Far Eastern
prais/ noun the price at which new shares in operations are subtracted, you will see that
an existing company are offered for sale the group has not been profitable in the
subsequent event /sbsikwənt i
subsequent event
|
European market.
subtraction /səbtrkʃən/ noun an act of
subtraction
vent/ noun an event with an important |
financial impact that occurs between the taking one number away from another
publication of a financial statement and the subvention /səbvenʃ(ə)n/ noun same as
subvention
publication of an audit report, and that subsidy

should therefore be disclosed in a footnote succeed /səksid/ verb 1. to do well, to
succeed
subsidiary /səbsidiəri/ adjective less

subsidiary
|
be profitable 쑗 The company has succeeded
important 쑗 They agreed to most of the con- best in the overseas markets. 쑗 Her business
ditions in the contract but queried one or has succeeded more than she had expected.
two subsidiary items. 쐽 noun same as sub- 2. to do what was planned 쑗 She succeeded
sidiary company 쑗 Most of the group profit in passing her computing test. 쑗 They suc-
was contributed by the subsidiaries in the ceeded in putting their rivals out of business.
Far East. 3. to take over from someone in a post 쑗 Mr
subsidiary account /səbsidiəri ə
subsidiary account
| | Smith was succeeded as chairman by Mrs

kaυnt/ noun an account for one of the indi- Jones. 왍 to succeed to a property to
vidual people or organisations that jointly become the owner of a property by inherit-
hold another account ing it from someone who has died
subsidiary company /səbsidiəri
subsidiary company
success /səkses/ noun 1. an act of doing

success
|
|
kmp(ə)ni/ noun a company which is more something well 쑗 The launch of the new
than 50% owned by a holding company, and model was a great success. 쑗 The company
where the holding company controls the has had great success in the Japanese mar-
board of directors ket. 2. an act of doing what was intended 쑗
subsidiary company accounting We had no success in trying to sell the lease.
subsidiary company accounting
/səbsidiəri kmp(ə)ni əkaυntiŋ/ noun

| | 쑗 She has been looking for a job for six
the accounting methods that are used at a months, but with no success.

sum 216
sum /sm/ noun 1. a quantity of money 쑗 supply chain /səplai tʃein/ noun the
sum supply chain
A sum of money was stolen from the human manufacturers, wholesalers, distributors,
resources office. 쑗 He lost large sums on the and retailers who produce goods and serv-
Stock Exchange. 쑗 She received the sum of ices from raw materials and deliver them to
£5000 in compensation. 2. the total of a consumers, considered as a group or net-
series of figures added together 쑗 The sum work
of the various subtotals is £18,752. ‘Only companies that build supply chains
sum at risk /sm ət risk/ noun the
sum at risk
that are agile, adaptable, and aligned get
amount of any given item, such as money, ahead of their rivals.’
stocks or securities that an investor may lose [Harvard Business Review]
supply chain management /səplai
supply chain management
sum of digits method /sm əv

sum of digits method
|
did its meθəd/ noun a method of depreci- tʃein mnid mənt/ noun the work of co-
ating a fixed asset where the cost of the asset ordinating all the activities connected with
less its residual value is multiplied by a frac- supplying of finished goods (NOTE: Supply
tion based on the number of years of its chain management covers the processes of
expected useful life. The fraction changes materials management, logistics, physical
each year and charges the highest costs to distribution management, purchasing, and
the earliest years. information management.)
supply price /səplai prais/ noun the
supply price
sum-of-the-year’s-digits deprecia-
sum-of-the-year’s-digits depreciation
|
tion /sm əv ðə jiəz did its dipriʃi | |

price at which something is provided
support price /səpɔt prais/ noun a
support price
eiʃ(ə)n/ noun a method of recognising |
depreciation that assigns more depreciation price in the EU at which a government will
early in an asset’s useful life than in the later buy agricultural produce to stop the price
years falling
surcharge /stʃɑd / noun an extra
surcharge
sums chargeable to the reserve

sums chargeable to the reserve
/smz tʃɑd əb(ə)l tə ðə rizv/ plural |

charge
surety /ʃυərəti/ noun 1. a person who
surety
noun sums which can be debited to a com-

pany’s reserves guarantees that someone will do something
쑗 to stand surety for someone 2. deeds,
sundry /sndri/ adjective various
sundry
share certificates, etc., deposited as security

sunk cost /sŋk kɒst/ noun a cost which
sunk cost
for a loan
has been irreversibly incurred or committed surplus /spləs/ noun more of some-
surplus
prior to a decision point and which cannot thing than is needed

therefore be considered relevant to subse-
quent decisions. Also called consumed ‘Both imports and exports reached record
cost
levels in the latest year. This generated a
$371 million trade surplus in June, the sev-
superannuation /supərnjueiʃ(ə)n/
superannuation
|
enth consecutive monthly surplus and
noun a pension paid to someone who is too close to market expectations’ [Dominion
old or ill to work any more (Wellington, New Zealand)]
supplementary benefit surrender /sərendə/ noun the act of giv-
supplementary benefit surrender
/spliment(ə)ri benifit/ noun formerly, ing up of an insurance policy before the con-
payments from the government to people tracted date for maturity
with very low incomes. It was replaced by surrender value /sərendə vlju/
surrender value
income support. noun the money which an insurer will pay if

supplementary statement /spli
supplementary statement
| an insurance policy is given up

ment(ə)ri steitmənt/ noun a statement surtax /stks/ noun an extra tax on
surtax
that elaborates on an earlier financial state- high income

ment suspend /səspend/ verb to stop doing
suspend
supplier /səplaiə/ noun a person or com- something for a time 쑗 We have suspended
supplier
pany that supplies or sells goods or services payments while we are waiting for news
쑗 We use the same office equipment supplier from our agent. 쑗 Work on the construction
for all our stationery purchases. 쑗 They are project has been suspended.
major suppliers of spare parts to the car suspense account /səspens əkaυnt/
suspense account
| |
industry. Also called producer noun an account into which payments are
supply and demand /səplai ən di
supply and demand
| |
put temporarily when the accountant cannot
mɑnd/ noun the amount of a product be sure where they should be entered
which is available and the amount which is suspension /səspenʃən/ noun an act of
suspension
wanted by customers stopping something for a time 쑗 There has

217 system weakness

been a temporary suspension of payments. 쑗 ‘…over the past few weeks, companies
We are trying to avoid a suspension of deliv- raising new loans from international banks
eries during the strike. have been forced to pay more, and an unu-
SVA
SVA abbreviation shareholder value analy- sually high number of attempts to syndi-
cate loans among banks has failed’
sis [Financial Times]
swap
swap /swɒp/ noun an exchange of one system /sistəm/ noun an arrangement or

system
thing for another organisation of things which work together

sweetener
sweetener /swit(ə)nə/ noun an incen- 쑗 Our accounting system has worked well in
tive offered to help persuade somebody to spite of the large increase in orders.
take a particular course of action (informal) systematic sampling /sistəmtik
systematic sampling
switch
switch /switʃ/ verb 1. to change from one sɑmpliŋ/ noun an auditing technique that
thing to another 쑗 to switch funds from one selects a number of random samples of data
investment to another 쑗 The job was in a systematic way, instead of a pure ran-
switched from our British factory to the dom sample
States. 2. to change, especially to change systems analysis /sistəmz ənləsis/
systems analysis
investment money from one type of invest- noun the process of using a computer to sug-
ment to another gest how a company can work more effi-
SWOT analysis
SWOT analysis /swɒt ənləsis/ noun

| ciently by analysing the way in which it
a method of assessing a person, company or works at present
product by considering their Strengths, systems analyst /sistəmz nəlist/
systems analyst
Weaknesses, and external factors which may noun a person who specialises in systems
provide Opportunities or Threats to their analysis
development. Full form Strengths, Weak- system weakness /sistəm wiknəs/
system weakness
nesses, Opportunities, Threats noun weakness in an accounting system that

syndicate
syndicate /sindikeit/ verb to arrange for leads to a risk that financial statements will
a large loan to be underwritten by several be flawed or that budgets will be miscalcu-
international banks lated

T
T+ noun an expression of the number of buying more than 50% of its shares. Com-
T+
days allowed for settlement of a transaction pare acquisition

tab /tb/ noun same as tabulator takeover bid /teikəυvə bid/ noun an
tab takeover bid
(informal) offer to buy all or a majority of the shares in

tabulate /tbjυleit/ verb to set some-
tabulate
a company so as to control it 쑗 They made a
thing out in a table takeover bid for the company. 쑗 She had to
tabulation /tbjυleiʃ(ə)n/ noun the
tabulation
|
withdraw her takeover bid when she failed
arrangement of figures in a table to find any backers. 쑗 Share prices rose
tabulator /tbjυleitə/ noun a feature on
tabulator sharply on the disclosure of the takeover bid.
Takeover Code /teikəυvə kəυd/ noun
Takeover Code
a computer which sets words or figures auto- |
matically in columns the code of practice which regulates how

T account /ti əkaυnt/ noun a way of
T account
|
takeovers should take place. It is enforced by
drawing up an account, with a line across the the Takeover Panel.
Takeover Panel /teikəυvə pn(ə)l/
Takeover Panel
top of the paper and a vertical line down the

middle, with the debit and credit entries on noun a non-statutory body which examines
either side takeovers and applies the Takeover Code.
take /teik/ noun 1. the money received in a
take Also called City Panel on Takeovers and
shop 쑗 Our weekly take is over £5,000. 2. a Mergers
takeover target /teikəυvə tɑit/ noun
takeover target
profit from any sale 쐽 verb 1. to receive or

to get 왍 the shop takes £2,000 a week the a company which is the object of a takeover
shop receives £2,000 a week in cash sales 왍 bid
take up rate /teik p reit/ noun the per-
take up rate
she takes home £450 a week her salary,

after deductions for tax, etc. is £450 a week centage of acceptances for a rights issue
takings /teikiŋz/ plural noun the money
takings
2. to perform an action 3. to need a time or a

quantity 쑗 It took the factory six weeks or received in a shop or a business 쑗 The
The factory took six weeks to clear the back- week’s takings were stolen from the cash
log of orders. (NOTE: taking – took – has desk.
taken) tally /tli/ noun a note of things counted or
tally
take away phrasal verb to remove one fig- recorded 쑗 to keep a tally of stock move-
ure from a total 쑗 If you take away the home ments or of expenses 쐽 verb to agree, to be
sales, the total turnover is down. the same 쑗 The invoices do not tally. 쑗 The
take off phrasal verb to remove or to deduct accounts department tried to make the fig-
something 쑗 He took £25 off the price. ures tally.
take over phrasal verb to start to do some- tally sheet /tli ʃit/ noun a sheet on
tally sheet
thing in place of someone else 쑗 Miss Black which quantities are noted
took over from Mr Jones on May 1st. tangible assets /tnd ib(ə)l sets/,
tangible assets
take-home pay /teik həυm pei/ noun

take-home pay
tangible fixed assets /tnd ib(ə)l fikst

same as disposable personal income 쑗 sets/, tangible property /tnd ib(ə)l
After all the deductions, her take-home pay prɒpəti/ plural noun assets that are physi-
is only £600 a week. cal, such as buildings, cash and stock.
take-out /teik aυt/ noun the act of remov- Leases and securities, although not physical
take-out
ing capital which you had originally in themselves, are classed as tangible assets
invested in a new company by selling your because the underlying assets are physical.
shares tangible asset value /tnd əb(ə)l
tangible asset value
takeover /teikəυvə/ noun an act of buy- set vlju/, tangible net worth
takeover
ing a controlling interest in a business by /tnd əb(ə)l net wθ/ noun the value of

219 tax credit

all the assets of a company less its intangible taxable income /tksəb(ə)l inkm/
taxable income
assets, e.g. goodwill, shown as a value per noun income on which a person has to pay
share tax
taxable items /tksəb(ə)l aitəmz/ plu-
tangible book value taxable items
tangible book value /tnd əb(ə)l

bυk vlju/ noun the book value of a ral noun items on which a tax has to be paid
company after intangible assets, patents, taxable matters /tksəb(ə)l mtəz/
taxable matters
trademarks and the value of research and plural noun goods or services that can be
development have been subtracted taxed
taper relief
taper relief /teipə rilif/ noun the relief

| taxable person /tksəb(ə)l ps(ə)n/
taxable person
for capital gains on assets sold after being noun a person who is registered for VAT,
held for some period of time. The longer the and who charges VAT on goods or services
assets have been held, the more relief is supplied
given against capital gains. taxable supply /tksəb(ə)l səplai/
taxable supply
|
target company
target company /tɑit kmp(ə)ni/ noun a supply of goods which are subject to
noun same as takeover target VAT
tax adjustments /tks əd stmənts/
tax adjustments
‘…in a normal leveraged buyout the |
acquirer raises money by borrowing plural noun changes made to tax

against the assets of the target company’ tax adviser /tks ədvaizə/, tax con-
tax adviser
[Fortune] sultant /tks kənsltənt/ noun a person

|
target cost
target cost /tɑit kɒst/ noun a product who gives advice on tax issues and problems
cost estimate derived by subtracting a tax allowance /tks əlaυəns/ noun
tax allowance
desired profit margin from a competitive part of the income which a person is allowed
market price. This may be less than the to earn and not pay tax on
planned initial product cost, but will be tax assessment /tks əsesmənt/
tax assessment
expected to be achieved by the time the noun a calculation by a tax inspector of the
product reaches the mature production amount of tax a person owes
stage.
taxation /tkseiʃ(ə)n/ noun the system
taxation
|
target market
target market /tɑit mɑkit/ noun the of raising revenue for public funding by tax-
market in which a company is planning to ing individuals and organisations, or the
sell its goods amount of revenue raised
target pricing
target pricing /tɑit praisiŋ/ noun the tax at source /tks ət sɔs/ verb to
tax at source
setting of a selling price with the aim of pro- deduct tax from earnings before they are
ducing a particular rate of return on invest- paid to the recipient
ment for a specific volume of production tax auditor /tks ɔditə/ noun a gov-
tax auditor
tariff
tariff /trif/ noun a tax to be paid on ernment employee who investigates taxpay-
imported goods. Also called customs tariff ers’ declarations
tax avoidance /tks əvɔid(ə)ns/ noun
tax
tax /tks/ noun 1. money taken by the gov-

tax avoidance
ernment or by an official body to pay for the practice of legally trying to pay as little
government services 2. an amount of money tax as possible
charged by government as part of a person’s tax bracket /tks brkit/ noun the sec-
tax bracket
income or on goods bought 왍 to levy or tion of people paying a particular level of

impose a tax to make a tax payable 쑗 The income tax
government has imposed a 15% tax on pet- tax code /tks kəυd/ noun a number
tax code
rol. 쐽 verb to make someone pay a tax, to given to indicate the amount of tax allow-
impose a tax on something 쑗 Businesses are ance a person has
taxed at 40%. 쑗 Income is taxed at 35%. 쑗
tax collector /tks kəlektə/ noun a
tax collector
Luxury items are heavily taxed. |
tax abatement person who collects taxes which are owed

tax abatement /tks əbeitmənt/ noun
|
tax concession /tks kənseʃ(ə)n/

tax concession
a reduction of tax
|
taxable
noun an act of allowing less tax to be paid
taxable /tksəb(ə)l/ adjective able to be tax consultant /tks kənsltənt/ noun
tax consultant
taxed 쏡 tax adviser

taxable base
taxable base /tksəb(ə)l beis/ noun tax credit /tks kredit/ noun 1. a sum of
tax credit
the amount subject to taxation money which can be offset against tax 2. the
taxable benefit
taxable benefit /tksəb(ə)l benifit/ part of a dividend on which the company has
noun a benefit which is included in a per- already paid tax, so that the shareholder is
son’s taxable income and is subject to tax not taxed on it

tax date 220

tax date /tks deit/ noun the date on tax inspector /tks inspektə/ noun a
tax date tax inspector
which a transaction occurs for tax purposes, government employee who investigates tax-
particularly relevant to invoices on which payers’ declarations
VAT is charged tax law /tks lɔ/ noun the body of laws
tax law
tax-deductible /tks didktib(ə)l/

tax-deductible
| on taxation, or one such law

adjective possible to deduct from an income tax liability /tks laiəbiliti/ noun the
tax liability
before tax is calculated amount of tax that a person or organisation

tax deposit certificate /tks dipɒzit
tax deposit certificate
|
has to pay
sətifikət/ noun a certificate showing that a
|
tax loophole /tks luphəυl/ noun a
tax loophole
taxpayer has deposited money in advance of legal means of not paying tax
a tax payment. The money earns interest
tax loss /tks lɒs/ noun a loss made by a
tax loss
while on deposit.
company during an accounting period, for
tax dodge /tks dɒd / noun an illegal
tax dodge
which relief from tax is given

method of paying less tax than an individual
tax loss carry-back /tks lɒs kri
tax loss carry-back
or company is legally obliged to pay

bk/ noun the reduction of taxes in a previ-
tax domicile /tks dɒmisail/ noun the
tax domicile
ous year by subtraction from income for that

place that a government levying a tax con- year of losses suffered in the current year
siders to be a person’s home
tax loss carry-forward /tks lɒs kri
tax loss carry-forward
tax evasion /tks ivei (ə)n/ noun the

tax evasion
fɔwəd/ noun the reduction of taxes in a

|
practice of illegally trying to not pay tax

future year by subtraction from income for
tax-exempt /tks izempt/ adjective 1.
tax-exempt
|
that year of losses suffered in the current
referring to a person or organisation not year
required to pay tax 2. not subject to tax
tax obligation /tks ɒblieiʃ(ə)n/
tax obligation
tax exemption /tks izempʃən/ noun

tax exemption
|
noun the amount of tax a person or company
1. the fact of being free from payment of tax owes
2. US the part of income which a person is
tax office /tks ɒfis/ noun a local office
tax office
allowed to earn and not pay tax on

of the Inland Revenue. It does not necessar-
tax exemption cut-off /tks i
tax exemption cut-off
|
ily deal with the tax affairs of people who
zempʃ(ə)n kt ɒf/ noun a limit on tax live locally.
exemption because of high income
tax on capital income /tks ɒn
tax on capital income
tax-exempt special savings account

tax-exempt special savings account
kpit(ə)l inkm/ noun a tax on the

/tks izempt speʃ(ə)l seiviŋz ə
| |
income from sales of capital assets

kaυnt/ noun a now-discontinued form of
tax payable /tks peiəb(ə)l/ noun the
tax payable
interest-free savings account largely super-

seded by the ISA. Abbreviation TESSA amount of tax a person or company has to
tax form /tks fɔm/ noun a blank form
tax form pay
taxpayer /tkspeiə/ noun a person or
taxpayer
to be filled in with details of income and

allowances and sent to the tax office each company that has to pay tax 쑗 basic tax-
year payer or taxpayer at the basic rate 쑗 Corpo-
tax-free /tks fri/ adjective with no tax
tax-free rate taxpayers are being targeted by the gov-
having to be paid 쑗 tax-free goods ernment.
tax planning /tks plniŋ/ noun plan-
tax planning
tax harmonisation /tks

tax harmonisation
hɑmənaizeiʃ(ə)n/ noun the enactment of ning how to avoid paying too much tax, by
taxation laws in different jurisdictions, such investing in, e.g., tax-exempt savings
as neighbouring countries, provinces, or schemes or offshore trusts
tax point /tks pɔint/ noun the date on
tax point
states of the United States, that are consist-

ent with one another which goods or services are supplied, which
tax haven /tks heiv(ə)n/ noun a coun-
tax haven
is the date when VAT becomes is due
tax pressure /tks preʃə/ noun the
tax pressure
try or area where taxes are low, encouraging

companies to set up their main offices there financial difficulty that a company may face
tax holiday /tks hɒlidei/ noun a
tax holiday
because of the taxes it must pay
tax rates /tks reits/ plural noun per-
tax rates
period when a new business is exempted

from paying tax centage rates of tax on different bands of
tax incentive /tks insentiv/ noun a
tax incentive
|
taxable income
tax rebate /tks ribeit/ noun money
tax rebate
tax reduction afforded to people for particu-

lar purposes, e.g., sending their children to returned by the Inland Revenue because it
college was overpaid

221 tenor
tax reform /tks rifɔm/ noun changes technical correction /teknik(ə)l kə
tax reform technical correction
| |
to tax provisions made by a revenue author- rekʃ(ə)n/ noun an adjustment to the price
ity of a share or the value of a currency
tax refund /tks rifnd/ noun US same
tax refund
technical decline /teknik(ə)l diklain/

technical decline
as remission of taxes noun a fall in share prices because of techni-

tax relief /tks rilif/ noun reductions in cal analysis
tax relief
tax liability that are allowed in line with nec- technical reserves
technical reserves /teknik(ə)l ri |
essary business expenditure zvz/ plural noun the assets that an insur-
tax return /tks ritn/ noun a com-
tax return
| ance company maintains to meet future

pleted tax form, with details of income and claims
allowances teeming and lading
teeming and lading /timiŋ ən leidiŋ/

tax revenue /tks revənju/ noun
tax revenue
noun an attempt to hide missing funds by

money that a government receives in taxes delaying the recording of cash receipts in a
tax schedules /tks ʃedjulz/ plural business’s books
tax schedules
noun six types of income as classified for telephone banking /telifəυn bŋkiŋ/
telephone banking
tax noun a service by which a bank customer

tax shelter /tks ʃeltə/ noun a financial
tax shelter
can carry out transactions over the phone

arrangement such as a pension scheme using a password. It may involve direct con-
where investments can be made without tax tact with a bank representative or may be
tax system /tks sistəm/ noun the
tax system
automated using the phone’s keypad.
methods used by a government in imposing teller
teller /telə/ noun a person who takes cash

and collecting taxes from or pays cash to customers at a bank
tax threshold /tks θreʃhəυld/ noun a
tax threshold
tenancy
tenancy /tenənsi/ noun an agreement by

point at which another percentage of tax is which a tenant can occupy a property
payable 쑗 The government has raised the
tenant /tenənt/ noun a person or com-
tenant
minimum tax threshold from £4,000 to

£4,500. pany which rents a house, flat or office to
live or work in 쑗 The tenant is liable for
tax treaty /tks triti/ noun an interna-
tax treaty
repairs.
tional agreement that deals with taxes, espe-
tender /tendə/ noun an offer to do some-
tender
cially taxes by several countries on the same

individuals thing for a specific price 쑗 a successful ten-
der 쑗 an unsuccessful tender 왍 to put a
tax voucher /tks vaυtʃə/ noun a doc-
tax voucher
project out to tender, to ask for or invite

ument detailing various items of financial tenders for a project to ask contractors to
information, issued to shareholders at the give written estimates for a job 왍 to put in
time dividends are paid or submit a tender to make an estimate for
tax year /tks jiə/ noun a twelve month
tax year
a job
period on which taxes are calculated. In the
tenderer /tendərə/ noun a person or com-
tenderer
UK this is 6th April to 5th April of the fol-

lowing year. pany that puts forward an estimate of cost 쑗
The company was the successful tenderer
T-bond /ti bɒnd/ noun same as Treasury
T-bond
for the project. (NOTE: The US term is bid-

bond der.)
technical /teknik(ə)l/ adjective referring
technical
tendering
tendering /tendəriŋ/ noun the act of

to influences inside a market, e.g. volumes putting forward an estimate of cost 쑗 To be
traded and forecasts based on market analy- successful, you must follow the tendering
sis, as opposed to external factors such as procedure as laid out in the documents.
oil-price rises, wars, etc. (NOTE: The US term is bidding.)
‘…market analysts described the falls in
tender offer /tendər ɒfə/ noun a method
tender offer
the second half of last week as a technical

correction’ [Australian Financial Review] of selling new securities or bonds by asking
‘…at the end of the day, it was clear the investors to make offers for them, and
Fed had not loosened the monetary reins, accepting the highest offers
10-K
and Fed Funds forged ahead on the back of 10-K /ten kei/ noun the filing of a US
technical demand’ [Financial Times] company’s annual accounts with the New
technical analysis /teknik(ə)l ə
technical analysis
|
York Stock Exchange
tenor /tenə/ noun the life of a financial
tenor
nləsis/ noun a study of the price move-

ments and volumes traded on a stock instrument, between the time it is taken out
exchange and the maturity date

10-Q 222
testamentary disposition /testə
10-Q testamentary disposition
10-Q /ten kju/ noun the filing of a US |
company’s quarterly accounts with the New mentəri dispəziʃ(ə)n/ noun the passing
|
York Stock Exchange of property to people in a will

testate /testeit/ adjective having made a
testate
term
term /tm/ noun a period of time when

something is legally valid 쑗 during his term will 쑗 Did he die testate? 쒁 intestate
of office as chairman 쑗 the term of a lease 쑗 testator /testeitə/ noun someone who
testator
We have renewed her contract for a term of has made a will

six months. 쑗 The term of the loan is fifteen testatrix /testeitriks/ noun a woman
testatrix
years. who has made a will

term deposit
term deposit /tm dipɒzit/, term| theory of constraints /θiəri əv kən

theory of constraints
account /tm əkaυnt/ noun money

| streints/ noun an approach to production
invested for a fixed period at a higher rate of management that aims to maximise sales
interest revenue by focusing on constraining factors
terminal bonus
terminal bonus /tmin(ə)l bəυnəs/ such as bottlenecks

third party /θd pɑti/ noun a person
third party
noun a bonus received when an insurance

comes to an end other than the two main parties involved in a
termination clause
termination clause /tmineiʃ(ə)n |

contract, e.g., in an insurance contract, any-
klɔz/ noun a clause which explains how one who is not the insurance company nor
and when a contract can be terminated the person who is insured
third quarter /θd kwɔtə/ noun the
third quarter
term loan
term loan /tm ləυn/ noun a loan for a period of three months from July to Septem-
fixed period of time ber
terms
terms /tmz/ plural noun the conditions or 3i abbreviation Investors in Industry

3i
duties which have to be carried out as part of

threshold /θreʃhəυld/ noun the point at
threshold
a contract, or the arrangements which have

to be agreed before a contract is valid 쑗 to which something changes
threshold agreement /θreʃhəυld ə
threshold agreement
negotiate for better terms 쑗 She refused to |
agree to some of the terms of the contract. 쑗 rimənt/ noun a contract which says that
By or Under the terms of the contract, the if the cost of living goes up by more than an
company is responsible for all damage to the agreed amount, pay will go up to match it
thrift /θrift/ noun 1. a careful attitude
thrift
property.
‘…companies have been improving com- towards money, shown by saving or spend-
munications, often as part of deals to cut ing it wisely 2. US a private local bank, sav-
down demarcation and to give everybody ings and loan association or credit union,
the same terms of employment’ [Econo- which accepts and pays interest on deposits
mist] from small investors
‘…the Federal Reserve Board has eased ‘…the thrift, which had grown from $4.7
interest rates in the past year, but they are million in assets in 1980 to 1.5 billion this
still at historically high levels in real year, has ended in liquidation’ [Barrons]
terms’ [Sunday Times] ‘…some thrifts came to grief on specula-
term shares
term shares /tm ʃeəz/ plural noun a tive property deals, some in the high-risk
type of building society deposit that offers a junk bond market, others simply by lend-
ing too much to too many people’ [Times]
comparatively high rate of interest for a
thrifty /θrifti/ adjective careful not to
thrifty
fixed period of time

terms of reference spend too much money
terms of reference /tmz əv
throughput /θrupυt/ noun the amount
throughput
ref(ə)rəns/ plural noun the specific areas

which a committee or an inspector can deal of work done or of goods produced in a cer-
with 쑗 Under the terms of reference of the tain time 쑗 We hope to increase our
committee, it cannot investigate complaints throughput by putting in two new machines.
throughput accounting /θrupυt ə
throughput accounting
from the public. 쑗 The committee’s terms of |
reference do not cover exports. kaυntiŋ/ noun a management accounting

terms of sale system that seeks to maximise the return on
terms of sale /tmz əv seil/ plural bottleneck activity
noun the conditions attached to a sale
tied financial adviser /taid fainnʃəl
tied financial adviser
TESSA |
TESSA /tesə/ abbreviation tax-exempt ədvaizə/ noun a qualified professional

|
special savings account who gives advice on the financial products

testamentary
testamentary /testəmentəri/ adjective

| offered by a single company, as distinct from
referring to a will an independent financial adviser who

223 total
advises on the products of various compa- applications to the industrial tribunal is
nies three months.
tighten /tait(ə)n/ verb to make something
tighten
time limitation /taim limiteiʃ(ə)n/

time limitation
tight, to control something 쑗 The accounts noun the restriction of the amount of time
department is tightening its control over available
departmental budgets. time rate /taim reit/ noun a rate for work
time rate
‘…the decision by the government to which is calculated as money per hour or per
tighten monetary policy will push the week, and not money for work completed
annual inflation rate above the previous timescale /taimskeil/ noun the time
timescale
high’ [Financial Times]

which will be taken to complete work 쑗 Our
tighten up on phrasal verb to control some- timescale is that all work should be com-
thing more strictly 쑗 The government is pleted by the end of August. 쑗 He is working
tightening up on tax evasion. 쑗 We must to a strict timescale.
tighten up on the reps’ expenses.
time sheet /taim ʃit/ noun a record of
time sheet
tight money /tait mni/ noun same as

tight money
when an employee arrives at and leaves

dear money work, or one which shows how much time a
tight money policy /tait mni pɒlisi/
tight money policy
person spends on different jobs each day

noun a government policy to restrict money time work /taim wk/ noun work which
time work
supply is paid for at a rate per hour or per day, not

till /til/ noun a drawer for keeping cash in a
till
per piece of work completed

shop title /tait(ə)l/ noun a right to own a prop-
title
time /taim/ noun 1. a period during which

time
erty 쑗 She has no title to the property. 쑗 He

something takes place, e.g. one hour, two has a good title to the property.
days, or fifty minutes 2. the number of hours title deeds /tait(ə)l didz/ plural noun a
title deeds
worked 3. a period before something hap- document showing who is the owner of a
pens 왍 to keep within the time limits or property
within the time schedule to complete work
token charge /təυkən tʃɑd / noun a
token charge
by the time stated

small charge which does not cover the real
time and materials pricing /taim ən
time and materials pricing
costs 쑗 A token charge is made for heating.

mətiəriəlz praisiŋ/ noun a pricing model
|
token payment /təυkən peimənt/

token payment
that takes account of the cost of materials

and parts, labour costs, and a percentage noun a small payment to show that a pay-
markup of each to cover overhead costs, and ment is being made
token rent /təυkən rent/ noun a very
token rent
a margin for profit

time and method study /taim ən
time and method study
low rent payment to show that some rent is
meθəd stdi/ noun a process of examin- being asked
toll /təυl/ noun a payment for using a serv-
toll
ing the way in which something is done to

see if a cheaper or quicker way can be found ice, usually a bridge or a road 쑗 We had to
time and motion expert /taim ən
time and motion expert
cross a toll bridge to get to the island. 쑗 You
məυʃ(ə)n ekspt/ noun a person who have to pay a toll to cross the bridge.
analyses time and motion studies and sug- toll call /təυl kɔl/ noun US a long-dis-
toll call
gests changes in the way work is done tance telephone call

time and motion study /taim ən
time and motion study
toll free /təυl fri/ adverb, adjective US

toll free
məυʃ(ə)n stdi/ noun a study that seeks to without having to pay a charge for a long-
improve efficiency and productivity in an distance telephone call 쑗 to call someone
office or factory toll free 쑗 a toll-free number
time deposit /taim dipɒzit/ noun a
time deposit
top-hat pension /tɒp ht penʃən/

top-hat pension
|
deposit of money for a fixed period, during noun a special extra pension for senior man-
which it cannot be withdrawn agers
time draft /taim drɑft/ noun a bill of
time draft
total /təυt(ə)l/ adjective complete, or with

total
exchange that is drawn on and accepted by a everything added together 쑗 The company
US bank has total assets of over £1bn 쑗 The total
time limit /taim limit/ noun the maxi- amount owed is now £1000. 쑗 Our total
time limit
mum time which can be taken to do some- income from exports rose last year. 쐽 verb to
thing 쑗 to set a time limit for acceptance of add up to 쑗 costs totalling more than
the offer 쑗 The work was finished within the £25,000 (NOTE: totalling – totalled. The US
time limit allowed. 쑗 The time limit on spelling is totaling – totaled.)

total absorption costing 224

total absorption costing /təυt(ə)l əb type of product 쑗 He’s in the secondhand
total absorption costing
zɔpʃən kɒstiŋ/ noun a method used by a car trade. 쑗 She’s very well known in the
cost accountant to price goods and services, clothing trade. 쐽 verb to buy and sell, to
allocating both direct and indirect costs. carry on a business 쑗 We trade with all the
Although this method is designed so that all countries of the EU. 쑗 The company has
of an organisation’s costs are covered, it may stopped trading.
result in opportunities for sales being missed ‘…a sharp setback in foreign trade
because it results in high prices. 쒁 marginal accounted for most of the winter slow-
costing down. The trade balance sank $17 billion’
total assets /təυt(ə)l sets/ plural
total assets
[Fortune]
noun the total net book value of all assets ‘…at its last traded price, the bank was
total asset turnover ratio /təυt(ə)l
total asset turnover ratio
capitalized around $1.05 billion’ [South
set tnəυvə reiʃiəυ/ noun a measure China Morning Post]
of the use a business makes of all its assets. ‘…with most of the world’s oil now traded
It is calculated by dividing sales by total on spot markets, Opec’s official prices are
assets. much less significant than they once were’
total invoice value /təυt(ə)l invɔis
total invoice value [Economist]
vlju/ noun the total amount on an ‘…the London Stock Exchange said that
invoice, including transport, VAT, etc. the value of domestic UK equities traded
during the year was £1.4066 trillion, more
total manufacturing costs /təυt(ə)l
total manufacturing costs
than the capitalization of the entire Lon-

mnjυfktʃəriŋ kɒsts/ plural noun the
|
don market and an increase of 36 per cent
total figure for costs of materials, labour and compared with previous year’s total of
overheads incurred during an accounting £1.037 trillion’ [Times]
period ‘…trade between Britain and other coun-
total overhead cost variance
total overhead cost variance
tries which comprise the Economic Com-

/təυt(ə)l əυvəhed kɒst veəriəns/ noun munity has risen steadily from 33% of
the difference between the overhead cost exports to 50% last year’ [Sales & Market-
absorbed and the actual overhead costs, both ing Management]
fixed and variable trade agreement /treid ərimənt/
trade agreement
total productivity /təυt(ə)l prɒdk

total productivity
| noun an international agreement between

tiviti/ noun a figure that represents the countries over general terms of trade
value of total output divided by the cost of trade association
trade association
/treid ə
|
all input səυsieiʃ(ə)n/ noun a group which links

total quality control /təυt(ə)l kwɒləti
total quality control
together companies in the same trade

kəntrəυl/ noun a manufacturing approach
|
trade barrier /treid briə/ noun a limi-
trade barrier
that aims at turning out products that are tation imposed by a government on the free
consistently defect-free exchange of goods between countries (NOTE:
total return /təυt(ə)l ritn/ noun the
total return
| NTBs, safety standards, and tariffs are typ-

total percentage change in the value of an ical trade barriers.)
investment over a specified time period, trade bill /treid bil/ noun a bill of
trade bill
including capital gains, dividends and the exchange between two companies who are
investment’s appreciation or depreciation trading partners. It is issued by one company
traceability /treisəbiliti/ noun the
traceability
| and endorsed by the other.

extent to which a cost can be directly trade credit /treid kredit/ noun the pro-
trade credit
assigned to an activity or object vision of goods or services to another com-

traceable cost /treisəb(ə)l kɒst/ noun a
traceable cost
pany with an agreement to invoice them

cost that is directly assigned to an activity or later, which is a major source of capital for
object many businesses
tracker fund /trkə fnd/ noun a fund trade creditors /treid kreditəz/ plural
tracker fund trade creditors
which tracks one of the stock market indi- noun companies which are owed money by
ces, such as the FTSE a company. The amount owed to trade cred-
tracking stock /trkiŋ stɒk/ noun
tracking stock
itors is shown in the annual accounts.
shares on which the level of dividend pay- trade cycle /treid saik(ə)l/ noun a
trade cycle
ments is linked to the performance of a sub- period during which trade expands, then
sidiary of the company slows down, then expands again
trade /treid/ noun 1. the business of buying trade date /treid deit/ noun the date on
trade trade date
and selling 2. a particular type of business, which an enterprise becomes committed to

or people or companies dealing in the same buy a financial asset

225 transaction
trade debt /treid det/ noun a debt that trading account, and after adding other
trade debt
originates during the normal course of trade income and deducting various expenses, is
trade deficit /treid defisit/ noun the
trade deficit
able to show the profit or loss of the business
trading account /treidiŋ əkaυnt/ noun
trading account
difference in value between a country’s low |
exports and higher imports. Also called bal- a company bank account administered by an
ance of payments deficit, trade gap investment dealer and used for managing
trade description /treid diskripʃən/
trade description
|
trading activity, rather than for investment
noun a description of a product to attract purposes
trading area /treidiŋ eəriə/ noun a
trading area
customers
trade discount /treid diskaυnt/ noun a
trade discount
group of countries which trade with each
reduction in price given to a customer in the other
trading company /treidiŋ kmp(ə)ni/
trading company
same trade
traded options /treidid ɒpʃənz/ plural
traded options
noun a company which specialises in buying
noun options to buy or sell shares at a spe- and selling goods
trading financial assets /treidiŋ fai
trading financial assets
cific price on a specific date in the future, |
which themselves can be bought or sold nnʃəl sets/ plural noun financial assets
trade fair /treid feə/ noun a large exhibi-
trade fair
acquired or held in order to produce profit
tion and meeting for advertising and selling from short term changes in price
trading limit /treidiŋ limit/ noun the
trading limit
a specific type of product 쑗 There are two

trade fairs running in London at the same maximum amount of something which can
time – the carpet manufacturers’ and the be traded by a single trader
mobile telephone companies’. trading loss /treidiŋ lɒs/ noun a situa-
trading loss
trade gap /treid p/ noun same as

trade gap
tion where a company’s receipts are less
trade deficit than its expenditure
trading partner /treidiŋ pɑtnə/ noun
trading partner
trademark /treidmɑk/, trade name

trademark
/treid neim/ noun same as registered a company or country which trades with
trademark another
trading profit /treidiŋ prɒfit/ noun a
trading profit
trade-off /treid ɒf/ noun an act of

trade-off
exchanging one thing for another as part of result where the company’ receipts are
a business deal (NOTE: The plural is trade- higher than its expenditure
trainee /treini/ noun a person who is
trainee
offs.) |
trade price /treid prais/ noun a special

trade price
learning how to do something 쑗 We take five
wholesale price paid by a retailer to the man- graduates as trainees each year. 쑗 We
ufacturer or wholesaler employ an additional trainee accountant at
trader /treidə/ noun a person who does
trader
peak periods.
training levy /treiniŋ levi/ noun a tax to
training levy
business
trade surplus /treid spləs/ noun the
trade surplus
be paid by companies to fund the govern-
difference in value between a country’s high ment’s training schemes
tranche /trɑnʃ/ noun one of a series of
tranche
exports and lower imports

‘Brazil’s trade surplus is vulnerable both instalments, used when referring to loans to
to a slowdown in the American economy companies, government securities which are
and a pick-up in its own’ [Economist] issued over a period of time, or money with-
drawn by a country from the IMF 쑗 The sec-
trade terms /treid tmz/ plural noun a
trade terms
ond tranche of interest on the loan is now

special discount for people in the same trade due for payment.
trade-weighted index /treid weitid
trade-weighted index
transaction /trnzkʃən/ noun an

transaction
indeks/ noun an index of the value of a cur-

|
instance of doing business, e.g. a purchase in

rency calculated against a basket of curren- a shop or a withdrawal of money from sav-
cies ings 왍 a transaction on the Stock
trading /treidiŋ/ noun 1. the business of
trading
Exchange a purchase or sale of shares on

buying and selling 2. an area of a brokerage the Stock Exchange 쑗 The paper publishes
firm where dealing in securities is carried a daily list of Stock Exchange transactions.
out by phone, using monitors to display cur- ‘…the Japan Financial Intelligence Office
rent prices and stock exchange transactions will receive reports on suspected criminal
trading, profit and loss account
trading, profit and loss account
transactions from financial institutions,

/treidiŋ prɒfit ən lɒs əkaυnt/ noun an
|
determine where a probe should be
account which details the gross profit or loss launched and provide information to
made by an organisation for a given period investigators’ [Nikkei Weekly]

transaction costs 226

transaction costs /trnzkʃən kɒsts/ ice from one department of an organisation
transaction costs
plural noun incremental costs that are to another

directly attributable to the buying or selling translate /trnsleit/ verb to put some-
translate
of an asset. Transaction costs include com- thing which is said or written in one lan-
missions, fees and direct taxes. guage into another language 쑗 He asked his
transaction
transaction cycle
cycle /trnzkʃən |
secretary to translate the letter from the
saik(ə)l/ noun any of three aspects of busi- German agent. 쑗 We have had the contract
ness activity regarded as occurring in cycles: translated from French into Japanese.
revenue, buying and production translation /trnsleiʃ(ə)n/ noun some-
translation
transaction date /trnzkʃən deit/

transaction date
|
thing which has been translated 쑗 She
noun the date on which control of an asset passed the translation of the letter to the
passes from the seller to the buyer accounts department.
translation exposure /trnsleiʃ(ə)n
translation exposure
transaction exposure /trnzkʃən

transaction exposure
|
|
ikspəυ ə/ noun the risk that an organisa-

|
ikspəυ ə/ noun the risk that the balance
|
tion may suffer the effects of foreign sheet and income statement may be
exchange rate changes during the time it adversely affected by foreign exchange rate
takes to arrange the export or import of changes
transparent market /trnsprənt
transparent market
goods or services. Transaction exposure is |
present from the time a price is agreed until mɑkit/ noun a market in which financial
the payment has been made or received in and operational information is shared
the domestic currency. openly between shareholders, investors and
transfer noun /trnsf/ an act of moving
transfer
company officials
traveller’s cheques /trv(ə)ləz tʃeks/
traveller’s cheques
an employee to another job in the same

organisation 쑗 She applied for a transfer to plural noun cheques bought by a traveller
our branch in Scotland. 쐽 verb /trnsf/ |
which can be cashed in a foreign country
travelling expenses /trv(ə)liŋ ek
travelling expenses
to move someone or something to a different |
place, or to move someone to another job in spensiz/ plural noun money spent on trav-
the same organisation 쑗 The accountant was elling and hotels for business purposes
transferred to our Scottish branch. 쑗 He treasurer /tre ərə/ noun 1. a person who
treasurer
transferred his shares to a family trust. 쑗 looks after the money or finances of a club
She transferred her money to a deposit or society, etc. 2. a company official respon-
account. sible for finding new finance for the com-
transferable /trnsfrəb(ə)l/ adjective
transferable
|
pany and using its existing financial
possible to pass to someone else resources in the best possible way 3. US the
transfer of property /trnsfr əv
transfer of property
main financial officer of a company 4. (in
prɒpəti/, transfer of shares /trnsfr Australia) the finance minister in a govern-
əv ʃeəz/ noun the act of moving the owner- ment
Treasury /tre əri/ noun 1. a government
Treasury
ship of property or shares of stock from one

person to another department which deals with the country’s
finance (NOTE: The term is used in both the
transferor /trnsfrə/ noun a person
transferor
UK and the US; in most other countries this

who transfers goods or property to another department is called the Ministry of
transfer price /trnsf prais/ noun the
transfer price
Finance.) 2. the department of a company

price at which a transaction is carried out or corporation that deals with all financial
between related companies matters
transfer pricing /trnsf praisiŋ/
transfer pricing
Treasury bill /tre əri bil/ noun a short-

Treasury bill
noun prices used in a large organisation for term financial instrument which does not
selling goods or services between depart- give any interest and is sold by the govern-
ments in the same organisation; also used in ment at a discount through the central bank.
multinational corporations to transfer trans- In the UK, their term varies from three to six
actions from one country to another to avoid months, in the US, they are for 91 or 182
paying tax days, or for 52 weeks. (NOTE: In the US they
transferred charge call /trnsfd are also called a T-bill)
transferred charge call
tʃɑd kɔl/ noun a phone call where the Treasury bond /tre əri bɒnd/ noun a
Treasury bond
person receiving the call agrees to pay for it long-term bond issued by the British or US
transferred-in costs /trnsfd in
transferred-in costs
government. Also called T-bond
kɒsts/ plural noun the cost of switching the treasury management /tre əri
treasury management
processing of a product or delivery of a serv- mnid mənt/ noun an entity’s method of

227 turnover
dealing of its financial matters, including Concepts issued by the Financial Account-
growing funds for business, maintaining ing Standards Board in the United States
cash flows and currencies, and managing true copy /tru kɒpi/ noun an exact copy
true copy
currencies and cash flows of a legal document, as attested by a notary

treasury products /tre əri prɒdkts/ public 쑗 I certify that this is a true copy. 쑗
treasury products
plural noun any financial items produced by It is certified as a true copy.

a government for sale, such as bonds trust /trst/ noun 1. the fact of being con-
trust
Treasury Secretary /tre əri

Treasury Secretary
fident that something is correct or will work

sekrət(ə)ri/ noun same as Secretary of 2. a legal arrangement to pass goods, money
the Treasury or valuables to someone who will look after
Treasury stocks /tre əri stɒkz/ plural
Treasury stocks
them well 쑗 She left his property in trust for
noun stocks issued by the British govern- her grandchildren. 3. the management of
ment. Also called Exchequer stocks money or property for someone 쑗 They set
trend /trend/ noun a general way in which
trend
up a family trust for their grandchildren. 4.
things are developing 쑗 a downward trend US a small group of companies which con-
in investment 쑗 The report points to infla- trol the supply of a product
tionary trends in the economy. 쑗 We have trust company /trst kmp(ə)ni/ noun
trust company
noticed an upward trend in sales. US an organisation which supervises the

‘…the quality of building design and ease financial affairs of private trusts, executes
of accessibility will become increasingly wills, and acts as a bank to a limited number
important, adding to the trend towards out- of customers
of-town office development’ [Lloyd’s trust deed /trst did/ noun a document
trust deed
List] which sets out the details of a private trust

trial balance /traiəl bləns/ noun the
trial balance
trustee /trsti/ noun a person who has

trustee
draft calculation of debits and credits to see charge of money in trust 쑗 the trustees of the
if they balance pension fund
trillion /triljən/ noun one million millions
trillion
trustee in bankruptcy /trsti in

trustee in bankruptcy
(NOTE: In the UK, trillion now has the same bŋkrptsi/ noun a person who is
meaning as in the US; formerly in UK Eng- appointed by a court to run the affairs of a
lish it meant one million million millions, and bankrupt and pay his or her creditors
it is still sometimes used with this meaning; trust fund /trst fnd/ noun assets such
trust fund
see also the note at billion.) as money, securities or property held in trust
‘…if land is assessed at roughly half its for someone
current market value, the new tax could turn /tn/ noun 1. a movement in a circle,
turn
yield up to ¥10 trillion annually’ [Far

Eastern Economic Review] or a change of direction 2. a profit or com-
mission 쑗 She makes a turn on everything he
‘…behind the decline was a 6.1% fall in sells.
exports to ¥47.55 trillion, the second year turn down phrasal verb to refuse something
of falls. Automobiles and steel were
among categories showing particularly 쑗 The bank turned down their request for a
conspicuous drops’ [Nikkei Weekly] loan. 쑗 The application for a licence was
‘…the London Stock Exchange said that turned down.
the value of domestic UK equities traded turn over phrasal verb 1. to have a specific
during the year was £1.4066 trillion, more amount of sales 쑗 We turn over £2,000 a
than the capitalization of the entire Lon- week. 2. US to pass something to someone 쑗
don market and an increase of 36 per cent She turned over the documents to the law-
compared with previous year’s total of yer. (NOTE: In this meaning, the usual UK
£1.037 trillion’ [Times] term is hand over.)
true and fair view /tru ən feə vju/
true and fair view
turn round phrasal verb to make a compa-
noun a correct statement of a company’s ny change from making a loss to becoming
financial position as shown in its accounts profitable 왍 they turned the company
and confirmed by the auditors round in less than a year they made the
Trueblood Report /trubld ripɔt/
Trueblood Report
|
company profitable in less than a year
turnaround /tnəraυnd/ noun espe-
turnaround
noun a report, ‘Objectives of Financial |
Statements’, published by the American cially US same as turnround

Institute of Certified Public Accountants in turnover /tnəυvə/ noun 1. the amount
turnover
1971, that recommended a conceptual of sales of goods or services by a company

framework for financial accounting and led 쑗 The company’s turnover has increased by
to the Statements of Financial Accounting 235%. 쑗 We based our calculations on the

turnover of labour 228

forecast turnover. 2. the number of times
turnround
turnround /tnraυnd/ noun 1. the value

something is used or sold in a period, usu- of goods sold during a year divided by the
ally one year, expressed as a percentage of a average value of goods held in stock 2. the
total act of making a company profitable again
turnover of labour /tnəυvər əv
turnover of labour
(NOTE: [all senses] The US term is turna-

leibə/ noun same as labour turnover round.)
turnover ratio /tnəυvə reiʃiəυ/ noun
turnover ratio
two-way analysis
a measure of the number of times a busi- two-way analysis /tu wei ənləsis/
|
ness’s stock is turned over in a given year, noun an analysis of business activity that
calculated as the cost of sales divided by the looks at price and quantity in relation to
stock’s average book value materials and labour, and budget and vol-
turnover tax /tnəυvə tks/ noun
turnover tax
ume in relation to overheads, but does not
same as VAT consider spending and efficiency

U
UBR abbreviation uniform business rate
UBR unbanked
unbanked /nbŋkt/ adjective referring |
UITF abbreviation Urgent Issues Task

UITF
to a person who does not have a bank
Force account
uncalled /nkɔld/ adjective referring to
uncalled
ultimate holding company /ltimət

ultimate holding company
həυldiŋ kmp(ə)ni/ noun the top com- capital which a company is authorised to
pany in a group consisting of several layers raise and has been issued but for which pay-
of parent companies and subsidiaries ment has not yet been requested
umbrella organisation /mbrelə
umbrella organisation uncashed
| uncashed /nkʃt/ adjective having not

|
ɔənaizeiʃ(ə)n/ noun a large organisation been cashed 쑗 uncashed cheques

which includes several smaller ones uncommitted credit lines /nkəmitid
uncommitted credit lines
unaccounted for /nəkaυntid fɔ/

unaccounted for
|
kredit lainz/ plural noun a borrowing
adjective lost without any explanation 쑗 arrangement that a bank provides but may
Several thousand units are unaccounted for choose to withdraw at any time
in the stocktaking. unconsolidated
unconsolidated
/nkənsɒlideitid/ |
unadjusted trial balance /nəd stid

unadjusted trial balance
adjective not grouped together, as of shares

traiəl bləns/ noun a trial balance that or holdings
has not yet been adjusted at a period end for
unconsolidated subsidiary
unconsolidated subsidiary
items such as closing stock

/nkənsɒlideitid səbsidiəri/ noun a sub- |
unappropriated profits
unappropriated profits
sidiary that is not included in the consoli-

/nəprəυprieitid prɒfits/ plural noun dated financial statements of the group to
profits that have neither been distributed to a which it belongs. An unconsolidated subsid-
company’s shareholders as dividends nor set iary would appear on a consolidated balance
aside as specific reserves sheet as an investment.
unappropriated retained earnings
unappropriated retained earnings
uncontrollable
/nəprəυprieitid riteind niŋz/ plural

uncontrollable /nkəntrəυləb(ə)l/ |
adjective not possible to control 쑗 uncon-

|
noun retained earnings no portion of which

trollable inflation
has been assigned to a special purpose
uncontrollable costs
uncontrollable costs
unaudited /nɔditid/ adjective having

unaudited
|
/nkən |
not been audited 쑗 unaudited accounts trəυləb(ə)l kɒsts/ plural noun costs
appearing on a management accounting
unaudited statement /nɔditid
unaudited statement
|
statement that are regarded as not within the
steitmənt/ noun a financial statement in control of that particular level of manage-
which an auditor prepares and presents sta- ment
tistics but does not give an audit opinion on
uncrossed cheque /nkrɒst tʃek/
uncrossed cheque
them
noun a cheque which does not have two
unauthorised /nɔθəraizd/, unauthor-
unauthorised
ized adjective not permitted 쑗 unauthorised

lines across it, and can be cashed anywhere
(NOTE: They are no longer used in the UK,
access to the company’s records 쑗 unau-
but are still found in other countries.)
thorised expenditure
undated /ndeitid/ adjective with no
undated
unavoidable costs /nəvɔidəb(ə)l

unavoidable costs
|
kɒsts/ plural noun costs that will be date indicated or written 쑗 She tried to cash
incurred regardless of what business deci- an undated cheque.
undated bond
sions are taken and that cannot be recovered undated bond /ndeitid bɒnd/ noun a |
unbalanced /nblənst/ adjective refer-

unbalanced
|
bond with no maturity date
under- /ndə/ prefix less important than or
under-
ring to a budget which does not balance or

which is in deficit lower than

underabsorbed overhead 230

underabsorbed overhead valuing something, at less than the true
underabsorbed overhead
/ndərəbzɔbd əυvəhed/ noun an worth

absorbed overhead which ends up by being undervalued /ndəvljud/ adjective
undervalued
lower than the actual overhead incurred not valued highly enough 쑗 The dollar is
underabsorption /ndərəbzɔpʃ(ə)n/ undervalued on the foreign exchanges. 쑗
underabsorption
noun a situation where the actual overhead The properties are undervalued on the com-
incurred is higher than the absorbed over- pany’s balance sheet.
head. Opposite overabsorption ‘…in terms of purchasing power, the dol-
undercapitalised /ndəkpitəlaizd/,
undercapitalised
| lar is considerably undervalued, while the

undercapitalized adjective without enough US trade deficit is declining month by
capital 쑗 The company is severely undercap- month’ [Financial Weekly]
italised. underwrite /ndərait/ verb 1. to accept
underwrite
undercharge /ndətʃɑd / verb to ask

undercharge
| responsibility for something 2. to insure, to

someone for too little money 쑗 She under- cover a risk 쑗 to underwrite an insurance
charged us by £25. policy 3. to agree to pay for costs 쑗 The gov-
underemployed
underemployed capital
capital ernment has underwritten the development

/ndərimplɔid kpit(ə)l/ noun capital costs of the project. (NOTE: underwriting –
which is not producing enough interest underwrote – has underwritten)
underlease /ndəlis/ noun a lease from ‘…under the new program, mortgage bro-
underlease
a tenant to another tenant kers are allowed to underwrite mortgages

underlying inflation rate /ndəlaiiŋ
underlying inflation rate
and get a much higher fee’ [Forbes Maga-
infleiʃ(ə)n reit/ noun the basic inflation
|
zine]
underwriter /ndəraitə/ noun a person
underwriter
rate calculated on a series of prices of con-

sumer items, petrol, gas and electricity, and or company that underwrites a share issue or
interest rates. Compare headline inflation an insurance
rate underwriting /ndəraitiŋ/ noun the
underwriting
underspend /ndəspend/ verb to spend action of guaranteeing to purchase shares in

underspend
less than you should have spent or were a new issue if no one purchases them
allowed to spend underwriting fee /ndəraitiŋ fi/ noun
underwriting fee
understandability /ndəstndə
understandability
| | a fee paid by a company to the underwriters

biliti/ noun when referring to financial for guaranteeing the purchase of new shares
information, the quality of being sufficiently in that company
clearly expressed as to be understood by underwriting syndicate /ndəraitiŋ
underwriting syndicate
anybody with a reasonable knowledge of sindikət/ noun a group of underwriters

business who insure a large risk
understate /ndəsteit/ verb to enter in
understate
undischarged bankrupt
undischarged bankrupt
|
an account a figure that is lower than the /ndistʃɑd d bŋkrpt/ noun a person
actual figure 쑗 The company accounts who has been declared bankrupt and has not
understate the real profit. been released from that state
undersubscribed /ndəsbskraibd/
undersubscribed
undistributable profit
undistributable profit
|
adjective referring to a share issue in which /ndistribjutəb(ə)l prɒfit/ noun profit

applications are not made for all the shares that is not legally available for distribution to
on offer, and part of the issue remains with shareholders as dividends
the underwriters
undistributable reserves
undistributable reserves
undertake /ndəteik/ verb to agree to

undertake
/ndistribjutəb(ə)l rizvz/ plural noun

|
do something 쑗 We asked the research unit

|
same as capital reserves

to undertake an investigation of the market.
undistributed profit /ndistribjutid
undistributed profit
쑗 They have undertaken not to sell into our

territory. (NOTE: undertaking – undertook prɒfit/ noun profit which has not been dis-
– undertaken) tributed as dividends to shareholders
unearned income /nnd inkm/
unearned income
undertaking /ndəteikiŋ/ noun 1. a

undertaking
business 쑗 He is the MD of a large commer- noun same as investment income

unemployed /nimplɔid/ adjective not
unemployed
cial undertaking. 2. a promise, especially a |
legally binding one 쑗 They have given us a having any paid work
written undertaking not to sell their prod- unemployment /nimplɔimənt/ noun
unemployment
ucts in competition with ours. 1. the state of not having any work 2. the
undervaluation /ndəvljυeiʃ(ə)n/ number of people in a country or region who
undervaluation
noun the state of being valued, or the act of are willing to work but cannot find jobs

231 unlimited liability

‘…tax advantages directed toward small unit /junit/ noun 1. a single product for
unit
businesses will help create jobs and reduce sale 2. a single share in a unit trust
the unemployment rate’ [Toronto Star] unitary taxation /junit(ə)ri tk
unitary taxation
unemployment pay /nimplɔimənt

unemployment pay
|
seiʃ(ə)n/ noun a method of taxing a corpo-
pei/ noun money given by the government ration based on its worldwide income rather
to someone who is unemployed than on its income in the country of the tax
unexpired cost /nikspaiəd kɒst/
unexpired cost
authority
noun the net book value, or depreciated his- unit contribution margin /junit
unit contribution margin
torical cost of an asset, not yet charged to the kɒntribjuʃ(ə)n mɑd in/ noun the
|
profit and loss account profit made on each unit sold

unfair competition /nfeə kɒmpə
unfair competition
unit cost /junit kɒst/ noun the cost of

unit cost
|
tiʃ(ə)n/ noun the practice of trying to do one item, i.e. the total product costs divided
better than another company by using tech- by the number of units produced
niques such as importing foreign goods at
unitholder /junithəυldə/ noun a per-
unitholder
very low prices or by wrongly criticising a |
competitor’s products son who holds units in a unit trust

uniting of interests /junaitiŋ əv
uniting of interests
unfavourable variance /n

unfavourable variance
|
|
feiv(ə)rəb(ə)l veəriəns/ noun same as intrəsts/ noun the international accounting

adverse variance standards term for merger accounting
unit level activities /junit lev(ə)l k
unit level activities
unfunded debt /nfndid det/ noun

unfunded debt
|
short-term debt requiring repayment within tivitiz/ plural noun business activities
a year from issuance undertaken each time a unit is produced
unit-linked insurance /junit liŋkd in
unit-linked insurance
ungeared /niəd/ adjective with no bor-

ungeared
|
|
rowings ʃυərəns/ noun an insurance policy which is

linked to the security of units in a unit trust
unguaranteed residual value
unguaranteed residual value
or fund
/nrəntid rizidjuəl vlju/ noun the
|
unit of account /junit əv əkaυnt/

unit of account
residual value of a leased asset that a com- |
pany is not sure it will ever be in a position noun a standard unit used in financial trans-
to sell actions among members of a group, e.g.
uniform accounting
uniform accounting policies
policies SDRs in the IMF

unit price /junit prais/ noun the price of
unit price
/junifɔm əkaυntiŋ pɒlisiz/ plural noun

|
the use of the same accounting policies for one item

units of production method of
units of production method of depreciation
all the companies in a group, for the prepa-

ration of consolidated financial statements depreciation /junits əv prədkʃən |
uniform business rate /junifɔm

uniform business rate
meθəd əv dipriʃieiʃ(ə)n/ noun a | |
biznis reit/ noun a tax levied on business method of calculating depreciation that
property which is the same percentage for determines the cost of an asset over its use-
the whole country. Abbreviation UBR ful economic life according to the number of
(NOTE: The uniform business rate is then units it is expected to produce over that
multiplied by the rateable value of the prop- period
erty to give the total rates to be paid in that unit trust /junit trst/ noun an organi-
unit trust
year.) sation which takes money from small inves-

uniformity /junifɔmiti/ noun the prin-
uniformity
|
tors and invests it in stocks and shares for
ciple of using common measurements, them under a trust deed, the investment
accounting standards and methods of pres- being in the form of shares (or units) in the
entation across different organisations, to trust (NOTE: The US term is mutual fund.)
ensure comparability unlawful /nlɔf(ə)l/ adjective against the
unlawful
unincorporated
unincorporated
/ninkɔpəreitid/ | law, not legal

adjective referring to a business which has unlimited
unlimited company
company /nlimitid |
not been made into a company, i.e. which is kmp(ə)ni/ noun a company where the
operating as a partnership or a sole trader shareholders have no limit as regards liabil-
unissued capital /niʃud kpit(ə)l/ ity
unissued capital
noun capital which a company is authorised unlimited liability /nlimitid laiə

unlimited liability
| |
to issue but has not issued as shares biliti/ noun a situation where a sole trader
unissued stock /niʃud stɒk/ noun
unissued stock
or each partner is responsible for all a firm’s

capital stock which a company is authorised debts with no limit on the amount each may
to issue but has not issued have to pay

unliquidated claim 232

money, but has no security from the debtor
unliquidated claim
unliquidated claim /nlikwideitd

kleim/ noun a claim for unliquidated dam- for the debt
ages unsecured debt
unsecured debt /nsikjυəd det/ noun

unliquidated damages
unliquidated damages a debt which is not guaranteed by a charge

/nlikwideitid dmid iz/ plural noun on assets or by any collateral
damages which are not for a fixed amount of unsecured loan
unsecured loan /nsikjυəd ləυn/

money but are awarded by a court as a matter noun a loan made with no security
of discretion unsubsidised
unlisted company unsubsidised /nsbsidaizd/, unsub-

|
unlisted company /nlistid |

sidized adjective with no subsidy
kmp(ə)ni/ noun a company whose shares unused allowances
are not listed on the Stock Exchange unused allowances /njuzd ə | |
unlisted securities laυənsiz/ plural noun part of the married

unlisted securities /nlistid si | |
couple’s allowance or the blind person’s
kjυəritiz/ plural noun shares that are not allowance which is not used because the
listed on the Stock Exchange recipient does not have enough income, and
unpaid
unpaid /npeid/ adjective not paid

|
which can then be passed to their spouse
up front /p frnt/ adverb in advance 왍
unprofitable
unprofitable /nprɒfitəb(ə)l/ adjective

|
up front
not profitable money up front payment in advance 쑗 They

unquoted company
unquoted company /nkwəυtid | are asking for £100,000 up front before they
kmp(ə)ni/ noun a company whose shares will consider the deal. 쑗 He had to put
are not listed on the stock exchange money up front before he could clinch the
unquoted investments
unquoted investments /nkwəυtid |

deal.
upside potential
investmənts/ plural noun investments

| upside potential /psaid pətenʃəl/ |
which are difficult to value, e.g. shares noun the possibility for a share to increase in
which have no stock exchange listing or land value. Opposite downside risk
of which the asset value is difficult to esti- upturn
upturn /ptn/ noun a movement

mate towards higher sales or profits 쑗 an upturn
unquoted shares
unquoted shares /nkwəυtid ʃeəz/ in the economy 쑗 an upturn in the market

plural noun shares that have no Stock Urgent Issues Task Force
Urgent Issues Task Force /d ənt

Exchange quotation iʃuz tɑsk fɔs/ noun a committee of the
unrealisable gains
unrealisable gains /nriəlaizəb(ə)l UK Accounting Standards Board that con-

einz/ plural noun apparent increases in the siders major urgent and emerging account-
value of assets that could not be turned into ing issues. Its pronouncements are known as
realised profit UITF Abstracts. Abbreviation UITF
unrealised capital gain
unrealised capital gain /nriəlaizd usage method
usage method /jusid meθəd/ noun a

kpit(ə)l ein/ noun an investment which method of depreciating a machine, by divid-
is showing a profit but has not been sold ing its cost less residual value by the number
unrealised loss
unrealised loss /nriəlaizd lɒs/ noun of units it is expected to produce or the

same as paper loss length of time it is expected to be used
unrealised profit useful economic life
unrealised profit /nriəlaizd prɒfit/ | useful economic life /jusf(ə)l

noun same as paper profit ikənɒmik laif/ noun the period during
unredeemed pledge
unredeemed pledge /nridimd which an entity expects to derive economic

pled / noun a pledge which the borrower benefit from using an asset such as a
has not claimed back because he or she has machine and over which it can be depreci-
not paid back the loan ated. Also called depreciable life
usury
unregistered
unregistered /nred istəd/ adjective|

usury /ju əri/ noun the lending of money
used for describing a company that has not at high interest
been registered on the official list of compa- utilisation
utilisation /jutilaizeiʃ(ə)n/, utilization

|
nies held, in the UK, at Companies House noun the act of making use of something
unrestricted income funds
unrestricted income funds ‘…control permits the manufacturer to

/nristriktid inkm fndz/ plural noun react to changing conditions on the plant
a charity’s funds that are available to its trus- floor and to keep people and machines at a
tees to use for the purposes set out in the high level of utilization’ [Duns Business
charity’s governing document Month]
unsecured creditor utilise
unsecured creditor /nsikjυəd utilise /jutilaiz/, utilize verb to use

kreditə/ noun a creditor who is owed something

V
Value Added Tax /vlju did tks/
vacant possession Value Added Tax
vacant possession /veikənt pə |
zeʃ(ə)n/ adjective being able to occupy a noun full form of VAT

property immediately after buying it value-adding cost /vlju diŋ
value-adding cost
because it is empty 쑗 The property is to be kɒst/ noun a business cost that increases
sold with vacant possession. the market value of a product or service
value analysis /vlju ənləsis/ noun
valuation value analysis
valuation /vljueiʃ(ə)n/ noun an esti-

|
|
mate of how much something is worth 쑗 to analysis by a producer of all aspects of a fin-
ask for a valuation of a property before mak- ished product to determine how it could be
ing an offer for it made at minimum cost 쑗 Value analysis
valuation of a business showed an excessive amount of rubber was
valuation of a business /vljueiʃ(ə)n used in manufacturing the product.
əv ə biznis/ noun the act of estimating the
value chain /vlju tʃein/ noun the
value chain
value of a business. This can be done on var-

ious bases, such as an assets basis, its break- sequence of activities a company carries out
up value, its value as a going concern, etc. as it designs, produces, markets, delivers,
value
and supports its product or service, each of
value /vlju/ noun the amount of money which is thought of as adding value
which something is worth 쑗 the fall in the ‘Competition is no longer limited to the
value of sterling 쑗 She imported goods to realm of the enterprise. Entire value chains
the value of £2500. 쑗 The valuer put the are now starting to act as formidable enti-
value of the stock at £25,000. 왍 to rise or ties, competing against each other for sim-
fall in value to be worth more or less 쐽 verb ilar markets.’ [Harvard Business Review]
to estimate how much money something is value chain costing /vlju tʃein
value chain costing
worth 쑗 He valued the stock at £25,000. 쑗 kɒstiŋ/ noun a costing model that takes
We are having the jewellery valued for into account all aspects of the chain of pro-
insurance. duction, from design to after-sales
value added
value added /vlju did/ noun 1. the value in use /vlju in jus/ noun the
value in use
difference between the cost of the materials present value of the estimated future net
purchased to produce a product and the final cash flows from an object, including the
selling price of the finished product 2. the amount expected from its disposal at the end
amount added to the value of a product or of its useful life. Value in use replaces book
service, being the difference between its value when an asset suffers impairment.
cost and the amount received when it is sold. valuer /vljυə/ noun a person who esti-
valuer
Also called net output mates how much money something is worth
value-added activity
value-added activity /vlju did k | variable annuity /veəriəb(ə)l ənjuəti/

variable annuity
tiviti/ noun business activity that improves noun an annuity based on funds invested in
a product or service at a cost that the cus- common stock, which varies with the value
tomer is willing to pay of the stock, as opposed to a fixed annuity
variable costing /veəriəb(ə)l kɒstiŋ/
variable costing
value-added statement
value-added statement /vlju did

steitmənt/ noun a simplified financial noun a method of recording inventoried
statement that shows how much wealth has costs that records only the variable manufac-
been created by a company. A value-added turing costs, not the fixed costs
variable cost percentage /veəriəb(ə)l
variable cost percentage
statement calculates total output by adding

sales, changes in stock, and other incomes, kɒst pəsentid / noun a ratio arrived at by
|
then subtracting depreciation, interest, taxa- dividing total variable costs by total sales
tion, dividends, and the amounts paid to sup- variable costs /veəriəb(ə)l kɒsts/ plu-
variable costs
pliers and employees. ral noun production costs which increase

variable rate 234

with the quantity of the product made, e.g. VAT office /vt ɒfis/ noun the govern-
VAT office
wages or raw materials ment office dealing with the collection of

variable rate
variable rate /veəriəb(ə)l reit/ noun a VAT in an area

VAT paid /vt peid/ adjective with the
VAT paid
rate of interest on a loan which is not fixed,

but can change with the current bank interest VAT already paid
VAT receivable /vt risivəb(ə)l/
VAT receivable
rates. Also called floating rate |
variable rate loan
variable rate loan /veəriəb(ə)l reit adjective with the VAT for an item not yet
ləυn/ noun a bank loan carrying an interest collected by a taxing authority
VAT registration /vt red istreiʃ(ə)n/
VAT registration
rate that varies according to fluctuations in a

particular index noun the process of listing a company with
variance a European government as eligible for the
variance /veəriəns/ noun the discrepancy return of VAT in certain cases
between the actual cost of an asset or busi-
VC abbreviation venture capitalist
VC
ness activity and the standard or expected

VCT abbreviation venture capital trust
VCT
cost
vending /vendiŋ/ noun selling
vending
variance accounting
variance accounting /veəriəns ə |
vendor /vendə/ noun 1. a person who

vendor
kaυntiŋ/ noun a method of accounting by

means of which planned activities (quanti- sells something, especially a property 쑗 the
fied through budgets and standard costs and solicitor acting on behalf of the vendor 2. a
revenues) are compared with actual results person who sells goods
venture /ventʃə/ noun a commercial deal
venture
VAT
VAT /vi ei ti, vt/ noun a tax on goods

and services, added as a percentage to the which involves a risk 쑗 They lost money on
invoiced sales price 쑗 The invoice includes several import ventures. 쑗 She’s started a
VAT at 17.5%. 쑗 The government is propos- new venture – a computer shop.
venture capital /ventʃə kpit(ə)l/
venture capital
ing to increase VAT to 22%. 쑗 Some items

(such as books) are zero-rated for VAT. 쑗 He noun capital for investment which may eas-
does not charge VAT because he asks for ily be lost in risky projects, but can also pro-
payment in cash. Full form Value Added vide high returns. Also called risk capital
venture capital fund /ventʃə
venture capital fund
Tax
‘…the directive means that the services of kpit(ə)l fnd/ noun a fund which invests
stockbrokers and managers of authorized in finance houses providing venture capital
unit trusts are now exempt from VAT; pre- ‘…the Securities and Exchange Board of
viously they were liable to VAT at the India allowed new companies to enter the
standard rate. Zero-rating for stockbro- primary market provided venture capital
kers’ services is still available as before, funds took up 10 per cent of the equity. At
but only where the recipient of the service present, new companies are allowed to
belongs outside the EC’ [Accountancy] make initial public offerings provided
VAT declaration their projects have been appraised by
VAT declaration /vt dekləreiʃ(ə)n/ |
banks or financial institutions which take
noun a statement declaring VAT income to up 10 per cent of the equity’ [The Hindu]
the VAT office
venture capitalist /ventʃə
venture capitalist
VAT group
VAT group /vt rup/ noun in the kpit(ə)list/ noun a finance house or pri-
United Kingdom, a group of related compa- vate individual specialising in providing
nies that is treated as one taxpayer for VAT venture capital. Abbreviation VC
purposes ‘…along with the stock market boom of
VAT inspection
VAT inspection /vt inspekʃ(ə)n/ | the 1980s, the venture capitalists piled
noun a visit by officials of HM Revenue and more and more funds into the buyout busi-
Customs to see if a company is correctly ness, backing bigger and bigger deals with
reporting its VAT ever more extravagant financing struc-
VAT inspector tures’ [Guardian]
VAT inspector /vt inspektə/ noun a
|
venture capital trust /ventʃə

venture capital trust
government official who examines VAT

returns and checks that VAT is being paid kpit(ə)l trst/ noun a trust which invests
VAT invoice in smaller firms which need capital to grow.
VAT invoice /vt invɔis/ noun an Abbreviation VCT
invoice which includes VAT vertical equity /vtik(ə)l ekwiti/
vertical equity
VAT invoicing
VAT invoicing /vt invɔisiŋ/ noun the noun the principle that people with different
sending of an invoice including VAT incomes should pay different rates of tax
VATman
VATman /vtmn/, vatman noun a VAT vertical form /vtik(ə)l fɔm/ noun one
vertical form
inspector (informal) of the two styles of presenting a balance

235 vouching
sheet allowed by the Companies Act. See or revenues compared with budgeted
Comment at balance sheet. Also called amounts, caused by differences between the
report form actual and budgeted levels of activity
vertical integration /vtik(ə)l inti
vertical integration
voluntary
|
voluntary /vɒlənt(ə)ri/ adjective 1. done
reiʃ(ə)n/ noun same as backward inte- freely without anyone forcing you to act 2.
gration done without being paid
vested interest /vestid intrəst/ noun a
vested interest
voluntary arrangement
voluntary arrangement /vɒlənt(ə)ri ə |
special interest in keeping an existing state reind mənt/ noun same as scheme of
of affairs arrangement
virement /vaiəmənt/ noun a transfer of
virement
voluntary liquidation
money from one account to another or from voluntary liquidation /vɒlənt(ə)ri

one section of a budget to another likwideiʃ(ə)n/ noun a situation where a
|
visible /vizib(ə)l/ adjective referring to

visible company itself decides it must close and sell
real products which are imported or its assets
voluntary redundancy
exported voluntary redundancy /vɒlənt(ə)ri ri |
visible exports /vizib(ə)l ekspɔts/

visible exports
dndənsi/ noun a situation where the
plural noun real products which are employee asks to be made redundant, usu-
exported, as opposed to services ally in return for a large payment
voluntary registration
visible imports /vizib(ə)l impɔts/ voluntary registration /vɒlənt(ə)ri

visible imports
plural noun real products which are red istreiʃ(ə)n/ noun in the United King-
|
imported, as opposed to services dom, registration for VAT by a trader whose

visible trade /vizib(ə)l treid/ noun
visible trade
turnover is below the registration threshold.
trade involving visible imports and exports This is usually done in order to reclaim tax
void /vɔid/ adjective not legally valid
void
on inputs.
voucher
volume /vɒljum/ noun a quantity of voucher /vaυtʃə/ noun 1. a piece of paper

volume
items which is given instead of money 2. a written

volume discount /vɒljum diskaυnt/
volume discount
document from an auditor to show that the
noun the discount given to a customer who accounts are correct or that money has really
buys a large quantity of goods been paid
volume of output /vɒljum əv aυtpυt/
volume of output vouching
vouching /vaυtʃiŋ/ noun the process of

noun the number of items produced checking accounting accuracy by matching
volume variances /vɒljum vouchers and other documents with the
volume variances
veəriənsiz/ plural noun differences in costs details recorded in an account

W
wage /weid / noun the money paid to an
wage
warehouse /weəhaυs/ noun a large

warehouse
employee in return for work done, espe- building where goods are stored
cially when it is paid weekly and in cash 쑗 warehouse capacity /weəhaυs kə
warehouse capacity
She is earning a good wage or good wages psiti/ noun the space available in a ware-
for a young person. (NOTE: The plural house
wages is more usual when referring to the
warrant /wɒrənt/ noun 1. an official doc-
warrant
money earned, but wage is used before

other nouns.) ument which allows someone to do some-
thing 2. 쏡 share warrant 쐽 verb to guaran-
‘European economies are being held back tee 쑗 All the spare parts are warranted.
by rigid labor markets and wage struc-
tures’ [Duns Business Month] ‘…the rights issue will grant shareholders
‘…real wages have been held down dra- free warrants to subscribe for further new
matically: they have risen at an annual rate shares’ [Financial Times]
warrantee /wɒrənti/ noun a person
warrantee
of only 1% in the last two years’ [Sunday |
Times] who is given a warranty

wage adjustments /weid ə warrantor /wɒrəntɔ/ noun a person
wage adjustments warrantor
| |
d stmənts/ plural noun changes made to who gives a warranty

wages warranty /wɒrənti/ noun 1. a legal docu-
warranty
wage claim /weid kleim/ noun an act of

wage claim
ment which promises that a machine will

asking for an increase in wages work properly or that an item is of good
wage differentials /weid difə quality 쑗 The car is sold with a twelve-
wage differentials
renʃəlz/ plural noun same as pay differen- month warranty. 쑗 The warranty covers
tials spare parts but not labour costs. 2. a prom-
wage-earner /weid nə/ noun a per- ise in a contract 3. a statement made by an
wage-earner
son who earns a wage insured person which declares that the facts
wage
wage indexation
indexation /weid stated by him are true

indekseiʃ(ə)n/ noun the linking of wasting asset /weistiŋ sit/ noun an
wasting asset
increases to the percentage rise in the cost of asset which becomes gradually less valuable
living as time goes by, e.g. a short lease on a prop-
wage scale /weid skeil/ noun same as
wage scale
erty
pay scale watchdog /wɒtʃdɒ/ noun an independ-
watchdog
wages costs /weid iz kɒsts/ plural

wages costs
ent person or organisation whose task is to

noun the costs of paying employees’ sala- police a particular industry, ensuring that
ries. Along with other costs such as pension member companies do not act illegally
contributions and salaries, these costs typi- watered stock /wɔtəd stɒk/ noun
watered stock
cally form the largest single cost item for a shares that are worth less than the total cap-
business. ital invested in the company
wages payable account /weid iz
wages payable account
WDA abbreviation 1. writing-down allow-

WDA
peiəb(ə)l əkaυnt/ noun an account show-

|
ance 2. written-down allowance

ing gross wages and employer’s National
WDV abbreviation written-down value
WDV
Insurance contributions paid during a period

wealth tax /welθ tks/ noun a tax on
wealth tax
wages policy /weid iz pɒlisi/ noun a

wages policy
government policy on what percentage money, property or investments owned by a

increases should be paid to workers person
wall safe /wɔl seif/ noun a safe installed wear and tear /weər ən teə/ noun the
wall safe wear and tear
in a wall deterioration of a tangible fixed asset as a

237 window dressing

result of normal use. This is recognised for then sell in smaller quantities to the general
accounting purposes by depreciation. public 쑗 I persuaded him to give us a whole-
web /web/ noun same as World Wide Web
web
sale discount. 왍 he buys wholesale and
weight /weit/ noun a measurement of how
weight
sells retail he buys goods in bulk at a whole-
heavy something is 쐽 verb to give an extra sale discount and then sells in small quanti-
value to a factor ties to the public
wholesale banking /həυlseil bŋkiŋ/
wholesale banking
weighted average /weitid v(ə)rid /

weighted average
noun an average which is calculated taking noun banking services between merchant
several factors into account, giving some banks and other financial institutions, as
more value than others opposed to retail banking
wholesale dealer /həυlseil dilə/ noun
wholesale dealer
weighted average cost /weitid

weighted average cost
v(ə)rid kɒst/, weighted average price a person who buys in bulk from manufactur-
/weitid v(ə)rid prais/ noun the aver- ers and sells to retailers
wholesale price /həυlseil prais/ noun
wholesale price
age price per unit of stock delivered in a

period calculated either at the end of the the price charged to customers who buy
period (‘periodic weighted average’) or each goods in large quantities in order to resell
time a new delivery is received (‘cumulative them in smaller quantities to others
weighted average’) wholesale price index /həυlseil prais
wholesale price index
weighted average cost of capital

weighted average cost of capital
indeks/ noun an index showing the rises
/weitid vərid kɒst əv kpit(ə)l/ and falls of prices of manufactured goods as
noun the average cost of a company’s bor- they leave the factory
rowing in relation to its total capital wholesaler /həυlseilə/ noun a person
wholesaler
weighted index /weitid indeks/ noun

weighted index
who buys goods in bulk from manufacturers
an index where some important items are and sells them to retailers
given more value than less important ones wholly-owned subsidiary /həυlli
wholly-owned subsidiary
weighting /weitiŋ/ noun an additional

weighting
əυnd səbsidjəri/ noun a subsidiary which
|
salary or wages paid to compensate for liv- belongs completely to the parent company
ing in an expensive part of the country 쑗 The will /wil/ noun a legal document where
will
salary is £15,000 plus London weighting. someone says what should happen to his or
Wheat Report /wit ripɔt/ noun a
Wheat Report
| her property when he or she dies 쑗 He wrote

report produced by a committee in 1972 that his will in 1984. 쑗 According to her will, all
set out to examine the principles and meth- her property is left to her children.
ods of accounting in the United States. Its wind up phrasal verb to end a meeting, or to
publication led to the establishment of the close down a business or organisation and
FASB. sell its assets 쑗 She wound up the meeting
white knight /wait nait/ noun a person
white knight
with a vote of thanks to the committee.
windfall profit /windfɔl prɒfit/ noun a
windfall profit
or company which rescues a firm in finan-

cial difficulties, especially one which saves sudden profit which is not expected
a firm from being taken over by an unaccept- windfall profits tax /windfɔl prɒfits
windfall profits tax
able purchaser tks/, windfall tax /windfɔl tks/ noun

White Paper /wait peipə/ noun a report a tax on companies that have made large
White Paper
issued by the UK government as a statement profits because of circumstances outside

of government policy on a particular prob- their usual trading activities. A windfall tax
lem. Compare Green Paper was imposed on the privatised utility com-
whole-life cost /həυl laif kɒst/ noun a
whole-life cost
panies in 1997.
winding up /waindiŋ p/ noun liquida-
winding up
cost calculated as life-cycle costs plus any

after-purchase costs tion, the act of closing a company and sell-
whole-life insurance /həυl laif in
whole-life insurance
|
ing its assets
ʃυərəns/, whole-life policy /həυl laif winding up petition /waindiŋ p pə
winding up petition
pɒlisi/ noun an insurance policy where the tiʃ(ə)n/ noun an application to a court for
insured person pays a fixed premium each an order that a company be put into liquida-
year and the insurance company pays a sum tion
when he or she dies. Also called whole-of- window dressing /windəυ dresiŋ/
window dressing
life assurance noun 1. the practice of putting goods on dis-

wholesale /həυlseil/ adjective, adverb play in a shop window, so that they attract
wholesale
referring to the business of buying goods customers 2. the practice of putting on a dis-
from manufacturers and selling them in play to make a business seem better or more
large quantities to traders (retailers) who profitable or more efficient than it really is

window of opportunity 238

window of opportunity /windəυ əv works /wks/ noun a factory 쑗 There is a
window of opportunity works
ɒpətjuniti/ noun a short period which

| small engineering works in the same street
allows an action to take place as our office. 쑗 The steel works is expand-
WIP abbreviation work in progress ing. (NOTE: takes a singular or plural verb)
WIP
withdraw /wiðdrɔ/ verb 1. to take money

withdraw works committee
|
works committee /wks kəmiti/, |
out of an account 쑗 to withdraw money from works council /wks kaυnsəl/ noun a
the bank or from your account 쑗 You can committee of employees and management
withdraw up to £50 from any cash machine which discusses the organisation of work in
by using your card. 2. to take back an offer a factory
쑗 When the employees went on strike, the workstation
company withdrew its revised pay offer. workstation /wksteiʃ(ə)n/ noun a

|
(NOTE: withdrawing – withdrew)

desk, usually with a computer terminal,
printer, telephone and other office items at
withdrawal /wiðdrɔəl/ noun the act of
withdrawal
|
which an employee in an office works
removing money from an account 쑗 to give World Bank
seven days’ notice of withdrawal 쑗 With- World Bank /wld bŋk/ noun a cen-
drawals from bank accounts reached a peak tral bank, controlled by the United Nations,
in the week before Christmas. whose funds come from the member states
withholding tax /wiðhəυldiŋ tks/
withholding tax
|
of the UN and which lends money to mem-
noun US a tax which removes money from ber states
World Wide Web
interest or dividends before they are paid to World Wide Web /wld waid web/
the investor, usually applied to non-resident noun an information system on the Internet
investors that allows documents to be linked to one
with profits /wiθ prɒfits/ adverb used
with profits
another by hypertext links and accommo-
to describe an insurance policy which guar- dates websites and makes them accessible.
antees the policyholder a share in the profits Also called web
of the fund in which the premiums are worthless
worthless /wθləs/ adjective having no

invested value 쑗 The cheque is worthless if it is not
work cell /wk sel/ noun a unit of
work cell
signed.
employees, or a set of machines, assigned to write down phrasal verb to note an asset at
a particular manufacturing task a lower value than previously 쑗 written
workforce /wkfɔs/ noun the total down value 쑗 The car is written down in the
workforce
number of employees in an organisation, company’s books. 왍 closing written-down

industry or country value, opening written-down value the
working capital /wkiŋ kpit(ə)l/
working capital
written-down value of an asset at the end or
noun capital in the form of cash, stocks, and the beginning of an accounting period
debtors but not creditors, used by a company write off phrasal verb to cancel a debt, or to
in its day-to-day operations. Also called cir- remove an asset from the accounts as having
culating capital, floating capital, net cur- no value 쑗 We had to write off £20,000 in
rent assets bad debts.
working capital turnover /wkiŋ
working capital turnover
‘$30 million from usual company borrow-

kpit(ə)l tnəυvə/ noun a figure equal ings will either be amortized or written off
to sales divided by average working capital in one sum’ [Australian Financial Review]
working partner /wkiŋ pɑtnə/ noun
working partner
write-down
write-down /rait daυn/ noun a reduction

a partner who works in a partnership in the value of an asset as entered in the
work-in-process /wk in prəυses/
work-in-process
books of a business
noun inventory units that are only partially write-off
completed at the end of an accounting write-off /rait ɒf/ noun the total loss or
period cancellation of a bad debt, or the removal of
an asset’s value from a company’s accounts
work in progress /wk in prəυres/
work in progress
쑗 to allow for write-offs in the yearly

noun the value of goods being manufactured accounts
which are not complete at the end of an write-up
accounting period 쑗 Our current assets are write-up /rait p/ noun a deliberate over-
made up of stock, goodwill and work in valuation of company assets
progress. Abbreviation WIP (NOTE: The US writing-down allowance
writing-down allowance /raitiŋ daυn

term is work in process.) əlaυəns/ noun a form of capital allowance
|
work permit /wk pmit/ noun an giving tax relief to companies acquiring
work permit
official document which allows someone fixed assets which are written down on a
who is not a citizen to work in a country year-by-year basis

239 written resolution

written-down allowance written-down value
written-down allowance /rit(ə)n daυn written-down value /rit(ə)n daυn

əlaυəns/ noun an allowance which can be
| vlju/ noun same as net book value
claimed on capital expenditure by a business written resolution
written resolution /rit(ə)n rezə |
or self-employed person in the years after luʃ(ə)n/ noun a decision to be reached by

the purchase was made. In the first year, the postal vote of the members of a UK private
first year allowance (FYA) applies. Abbrevi- company equivalent to a resolution at a
ation WDA meeting

XYZ
xa abbreviation ex-all
xa
yen /jen/ noun a unit of currency used in

yen
XBRL /eks bi ɑr el/ noun a computer

XBRL
Japan (NOTE: It is usually written as ¥ before
language used for financial reporting that a figure: ¥2,700 (say two thousand seven
allows companies to exchange or publish hundred yen).)
financial information through the Internet. yield /jild/ noun the money produced as a
yield
Full form Extensible Business Reporting return on an investment, shown as a percent-

Language age of the money invested
xd abbreviation ex dividend
xd
‘…if you wish to cut your risks you should

xr abbreviation ex-rights
xr
go for shares with yields higher than aver-
year /jiə/ noun a period of twelve months
year
age’ [Investors Chronicle]
yield to maturity /jild tə mətʃυəriti/
yield to maturity
year end /jiər end/ noun the end of the

year end
|
financial year, when a company’s accounts noun a calculation of the yield on a fixed-
are prepared 쑗 The accounts department has interest investment, assuming it is bought at
started work on the year-end accounts. a certain price and held to maturity
YTD abbreviation year to date
YTD
year-end adjustment /jiər end ə

year-end adjustment
zero /ziərəυ/ noun nought, the number 0

zero
d stmənt/ noun final adjustments to an

entry in accounts to ensure complete accu- 쑗 The code for international calls is zero
racy in the presentation of a financial state- zero (00).
ment zero-based budgeting /ziərəυ beist
zero-based budgeting
year-end closing /jiər end kləυziŋ/

year-end closing
bd itiŋ/ noun a method of budgeting
noun the financial statements issued at the which requires each cost element to be spe-
end of a company’s fiscal (tax) year cifically justified, as though the activities to
yearly /jiəli/ adjective happening once a
yearly
which the budget relates were being under-
year 쑗 We make a yearly payment of £1000. taken for the first time. Without approval,
쑗 His yearly insurance premium has risen to the budget allowance is zero.
zero-coupon bond /ziərəυ kupɒn
zero-coupon bond
£550.
year of assessment /jiər əv ə
year of assessment
|
bɒnd/ noun a bond which carries no inter-
sesmənt/ noun a twelve-month period on est, but which is issued at a discount and so
which income tax is calculated. In the UK it provides a capital gain when it is redeemed
is April 6th to April 5th of the following at face value
year. zero inflation /ziərəυ infleiʃ(ə)n/ noun
zero inflation
year to date /jiə tə deit/ noun the

year to date
inflation at 0%
zero-rated /ziərəυ reitid/ adjective
zero-rated
period between the beginning of a calendar

or financial year and the present time. A referring to an item which has a VAT rate of
variety of financial information, such as a 0%
company’s profits, losses or sales, may be zero-rating /ziərəυ reitiŋ/ noun the rat-
zero-rating
displayed in this way. Abbreviation YTD ing of a product or service at 0% VAT

Supplement

ACCOUNTING ORGANISATIONS
United Kingdom
Association of Chartered Certified Accountants (ACCA)

64 Finnieston Square
Glasgow
United Kingdom
G3 8DT
T: 00 44 (0)141 582 2000
F: 00 44 (0)141 582 2222
British Accounting Association (BAA)

c/o Sheffield University Management School
9 Mappin Street
Sheffield
S1 4DT
T: 00 44 (0)114 222 3462
F: 00 44 (0)114 222 3348
www.shef.ac.uk/~baa/
Chartered Institute of Management Accountants (CIMA)

26 Chapter Street
London
SW1P 4NP
T: 00 44 (0)20 8849 2251
F: 00 44 (0)20 8849 2450
Institute of Chartered Accountants in England and Wales (ICAEW)

Chartered Accountants’ Hall
PO Box 433
London
EC2P 2BJ
T: 00 44 (0)20 7920 8100
F: 00 44 (0)20 7920 0547
Institute of Chartered Accountants in Ireland

CA House
87/89 Pembroke Hall
Dublin 4
T: 00 353 1637 7200
F: 00 353 1668 0842
Institute of Chartered Accountants of Scotland

CA House
21 Haymarket Yards
Edinburgh
EH12 5BH
T: 00 44 (0)131 347 0100
F: 00 44 (0)131 347 0105

Institute of Financial Accountants
Burford house
44 London Road
Sevenoaks
Kent
TN13 1AS
T: 00 44 (0)1732 458080
F: 00 44 (0)1732 455848
www.accountingweb.co.uk/ifa/journal/index.html
International
American Accounting Association (AAA)

5717 Bessie Drive
Sarasota, FL 34233-2399
USA
T: 00 1 (941) 921-7747
F: 00 1 (941) 923-4093
www.aaahq.org/index.cfm
Association of Chartered Accountants in the United States (ACAUS)

341 Lafayette Street
Suite 4246
New York, NY 10012-2417
USA
T: 00 1 (212) 334-2078
Australian Accounting Standards Board (AASB)

PO Box 204
Collins St West
VIC 8007
Australia
T: 00 61 (3) 9617 7600
T: 00 61 (3) 9617 7608
www.aasb.com.au/
Institute of Chartered Accountants of New Zealand (ICANZ)

Level 2, Cigna House
40 Mercer Street
PO Box 11 342
Wellington 6034
New Zealand
T: 00 64 4 474 7840
F: 00 64 4 473 6303
National Society of Accountants (NSA)

1010 North Fairfax Street
Alexandria, VA 22314
USA
T: 00 1 703 549 6400
F: 00 1 703 549 2984

Specimen Co Ltd
Profit and Loss Account for the Year to 31 December 2007
£000 £000
* Turnover 9,758
* Cost of sales 6,840
* Gross profit 2,918
* Distribution costs 585
* Administrative expenses 407
992
1,926
* Other operating income 322
2,248
* Income from shares in group companies 200
* Income from other fixed asset investments 75
* Other interest receivable and similar income 36
311
2,559
* Amounts written off investments 27
* Interest payable and similar charges 26
53
Profit on ordinary activities before taxation 2,506
* Tax on profit on ordinary activities 916
* Profit on ordinary activities after taxation 1,590
* Extraordinary income 153
* Extraordinary charges 44
* Extraordinary profit 109
* Tax on extraordinary profit 45
64
* Profit for the financial year 1,654
Transfers to Reserves 400
Dividends Paid and Proposed 750
1,150
Retained profit for the financial year 504

About the Profit and Loss Account
While two vertical and horizontal formats are permissible, most UK

companies use the vertical format illustrated. The horizontal profit and loss
account format may be summarised as follows:
£ £
Cost of sales X Sales X
Gross profit X
X X
Expenses X Gross profit X
X X
In Germany and Italy only the vertical format is allowed.
According to the UK Companies Act a company must show all the items
marked with * on the face of the profit and loss account. It must also disclose
the value of certain items in the notes to the profit and loss account, such as:
a) interest owed on bank and other loans

b) rental income
c) costs of hire of plant and machinery
d) amounts paid to auditors
e) turnover for each class of business and country in which sales are made
f) number of employees and costs of employment

Specimen Co Ltd
Balance Sheet for the Year to 31 December 2007
£000 £000 £000

* FIXED ASSETS
* Intangible assets
Development costs 1,255
Goodwill 850
2,105
* Tangible assets
Land and buildings 4,758
Plant and machinery 2,833
Fixtures and fittings 1,575 9,166
* Investments 730
12,001
* CURRENT ASSETS
* Stocks 975
* Debtors 2,888
* Cash at bank 994
4,857
* CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans 76
Trade creditors 3,297
Accruals 20
3,393
* NET CURRENT ASSETS 1,464
* TOTAL ASSETS LESS CURRENT LIABILITIES 13,465
* CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Debenture loans 1,875
Finance leases 866
Bank and other loans 124
2,865
* PROVISIONS FOR LIABILITIES AND CHARGES
Taxation including deferred taxation 33
Other provisions 557
590
10,010
* CAPITAL AND RESERVES
* Called-up share capital 5,000
" Share premium account 500
" Revaluation reserve 1,158
• Other reserves 262
6,920
• PROFIT AND LOSS ACCOUNT 3,090
10.010

About the Balance Sheet
While vertical and horizontal balance sheets are permissible, most UK

companies prefer the vertical format as illustrated. The conventional form of
horizontal balance sheet can be summarised as follows:
£ £
Capital brought forward X Fixed Assets X
Profit for the year X
Capital at year end X
X
Long term liabilities X
Current liabilities X Current Assets X
X X
In Germany and Italy only the horizontal format is allowed.
The UK Companies Act requires companies to show all the items marked
with * in the example on the face of the balance sheet; the other items can be
shown either on the balance sheet or in the notes to the accounts. In
addition, the law requires companies to show the value of certain items in
separate notes to the balance sheet, such as details of fixed assets
purchased and sold during the year.
The notes to the published accounts almost always begin with a description
of the accounting policies used by the company in the accounts, e.g. the
depreciation policy. In the UK most accounts are prepared on a historical cost
basis but this is not compulsory and other bases, such as current cost or
historical cost modified by revaluation of certain assets, are also allowed.

Specimen Co Ltd
Statement of Source and Application of Funds
For the year to 31 December 2007
£000 £000
Source of Funds
Profit before tax 2,615
Adjustment for items not involving the movement of funds:
Depreciation 772
Profit on the sale of fixed assets (12)
Provision for bad debts 3
Development expenditure 45
808
Total generated from operations 3,423
Funds from other sources
Issue of shares 250
Sale of fixed assets 75
Dividends received 240
565
3,988
Application of funds
Dividends paid 550
Taxation paid 777
Purchase of fixed assets 1,437
2,764
Increase in working capital 1,224
Increase in stock 82
Decrease in debtors 82
Decrease in creditors 545
383
Decrease in bank overdraft 297
Increase in cash balances 544
841
1,224

Specimen Co Ltd
Cash Flow Statement for the year to 31 December 2007
£000 £000
Operating activities
Cash received from customers 8,804
Interest and dividends received 276
Cash paid to suppliers (3,642)
Cash paid to and on behalf of employees (1,789)
Interest paid (26)
Net cashflow from operations 3,423
Corporation tax paid (777)
Investing activities
Purchase of investments (866)
New fixed assets acquired (1,437)
Sale of fixed assets 75
Net cashflow from investing activities (2,228)
Financing activities
New share capital 250
Repayment on finance leases (65)
Dividends paid (550)
Net cashflow from financing activities (365)
Net cash inflow 53

Specimen Co Ltd
Statement of Value Added for the Year to 31 December 2007
£000 £000
Turnover 9,758
Bought-in materials and services 5.233
Value Added 4.525
Applied the following way:
To pay employees' wages, pensions and other benefits 1,827
To pay providers of capital
Interest on loans 26
Dividends to shareholders 750
776
To pay government
Corporation tax payable 961
To provide for maintenance and expansion of assets
Depreciation 772
Retained Profits 189
961
4,525
About the Value Added Statement
Value added statements are not required by UK law or the SSAPs and are
rarely found in company annual reports. However, many people consider
them very useful indicators of a company's operational efficiency and it is
possible that they will become more widely reported in future.
'Value added' means the difference between the total value of output and the
total cost of materials and services used in production. The value added
statement shows how this added value is applied: to pay works and
managers, taxes and dividends, to maintain operating capacity (i.e.
depreciation) and the amount added to reserves.

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AAA abbreviation American Accounting

Association spɔilid / noun spoilage that contributes to

ised Public Accountants |

to a share with a market price higher than its

AARF abbreviation Australian Accounting

AAT abbreviation Association of Account- tive, adverb 1. used to describe entries in a

abandonment /əbndənmənt/ noun an tional and extraordinary items appear above

property 왍 abandonment of a claim giving below-the-line 2. relating to revenue items

abridged accounts /əbrid d əkaυnts/

abatement /əbeitmənt/ noun a reduc- | |

plural noun financial statements produced

cover their debts or legacies ments stipulated in the Companies Act

absorb /əbzɔb/ verb 1. to take in a small

abbreviated accounts /əbrivieitid ə | | business which has been absorbed by a

version tity becomes lost. 쒁 absorption costing

absorbed overhead /əbzɔbd

ABC abbreviation activity-based costing |

əυvəhed/ noun an overhead attached to

ab initio /b iniʃiəυ/ phrase a Latin

phrase meaning ‘from the beginning’ products or services by means of overhead

absorption /əbzɔpʃən/ noun the proc-

ment ess of making a smaller business part of a

abnormal gain /bnɔm(ə)l ein/ |

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acceptance sampling /əkseptəns |

accepts bills of exchange at a discount, in

lending of money with the Bank of England.

noun a US organisation, founded in 1973, from the Bank.

acceptor /əkseptə/ noun a person who

accounting accepts a bill of exchange by signing it, thus

making a commitment to pay it by a speci-

abridged accounts /əbrid d əkaυnts/

absorb /əbzɔb/ verb 1. to take in a small

abbreviated accounts /əbrivieitid ə | | business which has been absorbed by a

absorbed overhead /əbzɔbd

ab initio /b iniʃiəυ/ phrase a Latin

absorption /əbzɔpʃən/ noun the proc-

abnormal gain /bnɔm(ə)l ein/ |

accident insurance /ksid(ə)nt in

/kselrəreitid kɒst rikvəri sistəm/

accommodation bill /əkɒmədeiʃ(ə)n

acceleration /əkseləreiʃ(ə)n/ noun the

klɔz/ noun US a clause in a contract that shop) an arrangement in which a customer

account end /əkaυnt end/ noun the end |

account analysis /əkaυnt ənləsis/

bɒdiz/ plural noun professional institu-

kaυntiŋ ən fainns əsəυsieiʃ(ə)n əv ɒs

accounts treiliə ən nju zilənd/ noun an organisa-

Group /əkaυntənts intənʃ(ə)nəl |

laiəbiliti/ noun the legal liability of an

accounting entity /əkaυntiŋ entəti/

limited company or a partnership. 쒁 report- accounting profits /əkaυntiŋ prɒfits/

accounting equation /əkaυntiŋ i

underpins double-entry bookkeeping. It can reit əv ritn/ noun a method of valuing

sheet equation rekɔdz/ plural noun all documents in

accounting error /əkaυntiŋ erə/ noun

accounting fees /əkaυntiŋ fiz/ plural accounting reference period /ə

esses information on a company’s transac- sɒftweə/ noun computer programs used to

mnjuəl/ noun a handbook or set of stndəd/ noun an authoritative statement

| | accrued dividend /əkrud dividend/

accounting unit /əkaυntiŋ junit/