Language of accounting

1. Income tax: the tax on wages and salaries( and business profits in the

US) . In Britain, the tax on business profits is call corporation tax.

2. A tax that is levied at a higher rate on higher incomes is called a

progressive tax.

3. Property taxes, sales taxes, customs duties on imports and excise

duties on tobacco, alcoholic drinks, petrol,etc are indirect tax.

4. Most sales taxes are slightly regressive because poorer people need

spend a larger proportion of their income on consumption than the rich.

5. Wealth tax: A tax levied on the value of assets someone holds ( is

applicable to a variety of asset types, including cash, bank deposits,

shares, fixed assets, personal cars, assessed value of real property,

pension plans, money funds, owner - occupied housing, and trusts.)

6. Property tax: a fee that a government charges owners of real estate

( đất)

7. Excise tax/ excise duty: a fee that a government charges on producing

products like alcohol, fuel, tobacco…

8. Inheritance tax: fee that government charges on the money/property

received from someone who has died.

9. Capital gains tax: the fee that a government charges on profits from
the sales/exchange of assets.

10. Capital transfer tax: the fee that a government charges on gifts and

inheritances

11. Direct tax: (thuế trực tiếp) property tax, personal property tax,

income tax or taxes on assets.

12. Indirect tax: price of a good or service…

13. VAT: the fee that a government charges at each step in the

manufacturing process.

14. Balance: the amount of money you have in a bank account or an

amount of money owed (số dư)

15. Social security: money paid by the Government to unemployed and

sick people ( trợ cấp từ chính phủ)

16. Overdraft: an arrangement to withdraw more money from a bank

account than you have placed in it. ( khoản tiêu quá)

17. Salvage value: the estimated amount that a company will received

when it disposes of an asset’s useful life. ( giá trị thu hồi khi vòng đời của

tài sản kết thúc đã trừ hết khấu hao)

18. General & administrative expenses: the cost associated with

organizing and running a business (chi phí quản lí doanh nghiệp)

19. Return on equity ( ROE) : net income in comparison to the value of

the company. ( lợi nhuận trên vốn, xuất hiện trong income statement
and balance sheet, phải >/= 15% or 0,15%) ROE = Net income : Equity

20. Return on sales( ROS): a company's profit compared with

the total value of its sales in a particular period ( tỷ suất lợi nhuận doanh

thu, xuất hiện trong financial statement) ROS = Net income : Revenue

(doanh thu).

. ROS>0: making a profit the higher ROS, the more profit

. ROS<0: making a loss

21. Debtor: the amount of money owed by customers who have bought

good but not yet paid for them. ( con nợ)

22. Creditor: largely suppliers of goods/services to the business who are

not paid at the time of purchase. ( chủ nợ)

23. Financial ratios: ( tỷ số giá trị thị trường)

- express the relationship between two or more items on financial

statement

- allow investors and creditors to compare a company’s present situation

and performance with past performance.

24. Liquidity: how easily a company can turn some fits asserts into cash

- Liquidity ratio: current ratio = current asserts/ current liabilities - nợ

ngắn hạn ( =tỉ số thanh khoản hiện thời)

-> high: suppliers (reduced their risk) , low: shareholder

25. Bill date: ngày đến hạn

26. Solvency ratios (khả năng thanh toán dài hạn) : quick ratio or acid
test: not counting inventory because this might be difficult or impossible

to turn into cash

QUICK RATIO= LIQUID ASSETS / CURRENT LIABILITIES

LIQUID ASSETS= CURRENT ASSETS - INVENTORY (short term solvency)

- Solvency: how easily a business can pay bills or debts when they are

due

- Efficiently: how well a business uses its assets

- Current assert: an asset such as cash, raw materials, parts, or products that are

still being made, which a company will use up or sell during the same year ( tài sản
lưu động)

27. -Budget analyst: a person who review financial plans

-Trainee = file clerk: learning a new job

-Financial advisors: help make smart investment

-Management Accountant= Business supervisor: study operations and

help maximize profits

-bookkeeper: back-office, record everything the organization earns or

spends

-tax accountant: help their client fill out tax return

-internal auditor: kiểm toán viên nội bộ ( accuracy: sự chính xác)

-External auditor: kiểm toán viên bên ngoài

28. - Income: all the money a person receives or earns as payment

-Salary: money paid monthly by an employer

-or Wages: money paid by the day or the hour, usually received weekly

- Overtime: money received for working extra hour

- Commission: money paid to sale people and agents - a certain

percentage of the income generate( phan tram ban hang)

- bonus: extra money given for a meeting , a target or for good financial

results

29. -Fee: money given to professional; people such as lawyers and

architects ( phi thue nguoi lam)

-Pension: (welfare) retired people

30. Outgoings: a mount of money that people spend regularly

- living expense: money spend everyday need such as food, clothes,

public transport

-bills: request for their payment of money owed service such as

electricity, gas.

-rent: money paid for the use of house or flat

-mortgage: repayments of money borrowed to buy a house or flat

-health insurance: financial protection for against medical expenses for

sickness or accident injuries( bao hiem y te)

31. Deduction: khoản trừ

Accumulate: cộng dồn

32. loan: borrow from banks, paid back with interest

- capital: when people want to set up a company, they need money

33. Balance due: số dư đến hạn

34. File cabinet: tủ đựng hồ sơ

- cubicle divider: divide office space

- note pad: book of blank paper use for writing

-bulletin board: wall panel to post messages on this

-binder: notebook with rings or clamps to hold paper

-paper clips: small, hold paper

-stapler: bấm ghim

35. Current account = checking account: take money any times, no

interests, earn little(tài khoản ngân hàng)

- saving account: pays interests but has restrictions on when you

withdraw.

-payroll: list of employees

CASH AND LIQUIDITY

INTANGIBLE ASSETS

- liquid asset: tài sản thanh khoản -> có khả năng thu hồi vốn

-Cash: A current asset account which includes: currency, coins, checking

accounts, undeposited checks received from customers and petty card