English for Accounting 5
Practice the language of accounting with this vocabulary exercise. The terms covered here span management accounting, financial reporting, and the regulatory language of the profession.
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Choose the correct response to complete each sentence.
1. A statement of _________________ helps you keep track of your business's finances.
Correct answer: cash flow.
2. Customers usually come here looking for _________________ advice.
Correct answer: financial.
3. This plan is economically ____________________; it can be carried out successfully.
Correct answer: feasible.
4. "Liquid" assets often refer to _____________________.
Correct answer: cash.
5. For customers, a flat-rate plan ____________________ additional usage charges.
Correct answer: eliminates.
6. A fixed cost does not ____________________ with the level of production or sales.
Correct answer: vary.
7. There are two basic measures of profit: gross profit and ____________________.
Correct answer: net profit.
8. Net profit after taxes is often called the bottom line; it is the ____________________ after everything has been subtracted.
Correct answer: net income.
9. An element of _____________________ is always present in all business activities.
Correct answer: risk.
10. The ____________________ of a worthless asset from the accounts is known as a write-off.
Correct answer: removal.
📚 Important Words to Know
accounts receivable — money owed to a company by customers for goods or services already delivered
accounts payable — money a company owes to suppliers for goods or services already received
balance sheet — a financial statement showing a company's assets, liabilities, and equity at a specific point in time
accrual accounting — a method that records revenue and expenses when they are earned or incurred, regardless of when cash changes hands
depreciation — the gradual reduction in the recorded value of an asset over its useful life
gross profit — revenue minus the direct costs of producing goods or services, before operating expenses
net income — a company's total profit after all expenses, taxes, and costs have been deducted from revenue
overhead — ongoing business expenses not directly tied to producing a product or service, such as rent and utilities
fiscal year — a 12-month accounting period used for financial reporting, which may or may not align with the calendar year
audit — a formal examination of a company's financial records to verify their accuracy and compliance
accounts receivable — money owed to a company by customers for goods or services already delivered
accounts payable — money a company owes to suppliers for goods or services already received
balance sheet — a financial statement showing a company's assets, liabilities, and equity at a specific point in time
accrual accounting — a method that records revenue and expenses when they are earned or incurred, regardless of when cash changes hands
depreciation — the gradual reduction in the recorded value of an asset over its useful life
gross profit — revenue minus the direct costs of producing goods or services, before operating expenses
net income — a company's total profit after all expenses, taxes, and costs have been deducted from revenue
overhead — ongoing business expenses not directly tied to producing a product or service, such as rent and utilities
fiscal year — a 12-month accounting period used for financial reporting, which may or may not align with the calendar year
audit — a formal examination of a company's financial records to verify their accuracy and compliance
▶ Keep practicing — more exercises for you:
Accounting English 1
Accounting English 2
Accounting English 3
Accounting English 4
Accounting English 6
Accounting vocabulary matching
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Banking English 2
Accounting English 2
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Accounting English 4
Accounting English 6
Accounting vocabulary matching
Banking English 1
Banking English 2
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