Accounting Principles

verb to gradually reduce or write off the cost or value of an asset over a period of time

• The company plans to amortize the cost of the new equipment over the next five years.
• I'm going to amortize the cost of my new laptop by using it for work.
• I'll just spread out the payments to amortize the cost of the car.
• She tried to amortize the emotional impact of the breakup by focusing on her career.

noun a quantity of something, especially the total of a thing or things

verb to add up to; to reach a total; to be equivalent to

• The total expenses amount to $10,000.
• The bill adds up to $10,000.
• The cost comes to $10,000.
• His efforts will ultimately amount to nothing.

noun a quantity of something, typically a large one

verb to add up in number or quantity

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• The total amount of money spent on the project exceeded our initial budget.
• I can't believe the amount of food you can eat in one sitting!
• The amount of drama in that situation was off the charts.
• The amount of love she has for her children knows no bounds.

noun a useful or valuable thing, person, or quality

adjective relating to or describing something that is valuable or beneficial

• The company's assets include real estate, equipment, and intellectual property.
• She's got some serious assets - a nice car, a big house, you name it.
• Check out his assets, he's loaded!
• Her assets go beyond just money; she has a wealth of knowledge and experience.

noun the value of a company's stock according to its balance sheet account balance

• The company's assets are recorded on the balance sheet at their book value.
• I heard that the book value of that car is much lower than its actual worth.
• I can't believe they sold that house for way below its book value!
• Sometimes we have to look beyond the book value of a person to truly understand their worth.

noun An organization or economic system where goods and services are exchanged for one another or for money

• The company is looking to expand its business operations internationally.
• I'm thinking of starting my own business selling handmade crafts.
• My dad's business is really booming right now.
• Taking risks is just part of the business of life.

noun the action or process of capitalizing words or letters

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• Proper capitalization is crucial in academic writing.
• Don't forget to use capitalization at the beginning of each sentence.
• I always mess up my capitalization when texting quickly.
• Capitalization of resources in developing countries is essential for economic growth.

noun the most important city or town of a country or region, usually its seat of government and administrative center

adjective involving or punishable by death

• The capital city of France is Paris.
• I heard the capital of Japan is Tokyo.
• She's living it up in the capital of cool.
• Education is the capital that brings the best interest.

noun the act of mixing or blending together

verb to mix or blend together thoroughly

• It is not appropriate to commingle personal funds with business funds.
• I prefer not to commingle my snacks with anyone else's in the pantry.
• Let's commingle our playlists for the road trip.
• The artist was able to commingle different art styles in their latest masterpiece.

noun an officer in charge of financial accounts and reporting in a company or organization

• The comptroller is responsible for overseeing the financial accounts of the company.
• I heard the comptroller is the one who handles all the money stuff.
• The comptroller is like the money boss around here.
• In a way, the comptroller acts as the financial gatekeeper of the organization.

• The cumulation of evidence led to the suspect's arrest.
• All the little things added up to the cumulation of a big mess.
• The cumulation of drama in that group chat is just too much.
• Her hard work and dedication resulted in the cumulation of success in her career.

noun a nickname or abbreviation for someone named Deborah

• The debriefing session with the team was thorough and insightful.
• Let's grab a coffee and debrief about the meeting.
• I need to deb my friends about what happened last night.
• She had to debrief her emotions before making a decision.

verb to decrease in value over time

• The value of the asset will depreciate over time due to wear and tear.
• If you don't take care of your car, it will depreciate quickly.
• I heard that new phone model will depreciate like crazy once the next one comes out.
• His reputation started to depreciate after the scandal was exposed.

noun the interest rate used in discounted cash flow analysis to determine the present value of future cash flows

• The company is considering adjusting the discount rate for their bonds.
• I heard they might lower the discount rate for the sale next week.
• Yo, did you hear they're gonna hook us up with a lower discount rate?
• She always approaches life with a high discount rate, never settling for less than she deserves.

noun a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits or reserves

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• The company announced a dividend payment to its shareholders.
• I heard we're getting a dividend from the company this quarter.
• I'm stoked for that sweet dividend money!
• Kindness is a dividend that always pays off in the end.

noun money received as payment for work or services rendered

• The company reported a significant increase in earnings for the last quarter.
• I heard that John's earnings have gone up since he started his new job.
• She's raking in the big bucks with her new business, her earnings are through the roof!
• His hard work and dedication finally paid off, his earnings are now soaring like an eagle.

noun an amount of money spent

• The company's annual expenditure on research and development is quite substantial.
• We need to cut down on our expenditure if we want to save more money.
• I can't believe how much my expenditure has increased since I started shopping online.
• Love is an expenditure of time and energy, but it is always worth it in the end.

noun a total amount before deductions

verb to earn a total amount before deductions

adjective unpleasant, disgusting, or offensive

• The company reported a gross profit of $1 million last quarter.
• I can't believe how gross that movie was, I almost walked out.
• Ew, that sandwich looks so gross, I'm not eating that.
• His behavior towards his colleagues was just gross, he needs to work on his people skills.

noun money received, especially on a regular basis, for work or through investments

• The government requires individuals to report their annual income for tax purposes.
• I heard she makes a decent income working at the law firm.
• He's always hustling to increase his income.
• Education is an investment in yourself that can lead to a higher income in the future.

adjective describing something that is not done or communicated directly, but through a third party or intermediary

• The report highlighted the indirect impact of climate change on global food security.
• She gave me an indirect answer when I asked about her plans for the weekend.
• He was being super shady and indirect about where he got the money from.
• Her indirect approach to problem-solving often leads to creative solutions.

noun a way of exercising control or supervision jointly by two or more parties

• The two companies have agreed to exercise joint control over the new project.
• They're going to be in joint control of the whole operation.
• They're gonna be running things together, like a team in joint control.
• Their partnership allows for joint control of the situation, ensuring success for both parties.

noun the state of being responsible for something, especially by law

adjective pertaining to legal responsibility or obligation

• The company must disclose all potential liability in its financial statements.
• If you break that vase, you'll be liable for it.
• Don't be a liability at the party and drink responsibly.
• His lack of punctuality is a liability in this fast-paced industry.

adjective legally responsible for something

• The company is liable for any damages caused by their product.
• You could be liable for the mess if you don't clean up.
• If you break the rules, you're liable to get in trouble.
• His reckless behavior made him liable to losing his job.

noun assets that can be easily converted into cash

adjective describing the type of assets

• The company's balance sheet shows a high amount of liquid assets.
• I always keep some cash on hand for emergencies, you know, liquid assets.
• I need to convert some of my investments into liquid assets to pay for this trip.
• His charisma and charm are like liquid assets, always ready to be used in social situations.

noun the act of converting assets into cash

• The company went into liquidation after failing to pay off its debts.
• The store is having a huge sale because they're going into liquidation.
• I heard that the business is going belly up and heading for liquidation.
• After the breakup, she felt like her heart was in a state of liquidation.

noun a person or entity responsible for winding up the affairs of a company or firm, especially in bankruptcy

• The liquidator was appointed to wind up the company's affairs and distribute its assets.
• The liquidator is the person in charge of selling off the company's stuff.
• The liquidator is the one who's gonna make sure everything gets sold off.
• In the game of business, the liquidator is like the Grim Reaper, coming to close the chapter on a failed venture.

noun a company's total revenue minus total expenses, taxes, and other costs

• The company reported a net income of $1 million for the quarter.
• The business made a profit of $1 million after all expenses were deducted.
• The company's bottom line was $1 million in the green.
• After all the dust settled, the net income was a shining beacon of success.

verb to give someone money that is owed for work, goods, or a debt

adjective having already been paid for

• The invoice has been paid in full.
• I finally paid off my credit card bill.
• I'll pay you back for the pizza later.
• Hard work always pays off in the end.

noun paper - a material made of cellulose pulp derived mainly from wood or rags or certain grasses

• The company reported significant paper profits for the last financial quarter.
• The business made a lot of paper profits this year.
• Don't get too excited about those paper profits, they're not real until we cash out.
• Investing in that stock may bring some paper profits, but the real gains come from long-term growth.

noun A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something

verb To obtain a financial gain or benefit

• The company's main goal is to maximize profit while maintaining ethical business practices.
• We need to figure out how to make a profit from this project.
• Let's hustle and make some dough!
• In life, we must find ways to profit from our experiences, both good and bad.

noun the state or quality of being able to be achieved or realized

adjective able to be achieved or realized

• The project's goals are ambitious but still realizable with proper planning and resources.
• I know it seems like a lot, but it's definitely doable if we put our minds to it.
• Don't worry, it's totally doable. We got this!
• With enough determination, even the wildest dreams can become realizable.

noun an area of responsibility or authority

verb to send money as a payment or gift

• The company's policy clearly outlines the remit of the finance department.
• I'm not sure what falls under my remit at work.
• I don't want to deal with that, it's not in my remit.
• As an artist, her creativity knows no remit.

noun income, especially when of a company or organization and of a substantial nature

• The company's revenue has steadily increased over the past year.
• We've been making more money lately.
• Our cash flow has been on the rise.
• The revenue stream is flowing in our favor.

noun A word that represents a person, place, thing, or idea. In this case, 'stocks' and 'bonds' are both nouns as they refer to financial instruments used for investment.

conjunction A word used to connect clauses or sentences or to coordinate words in the same clause. In this case, 'and' is a conjunction that connects the two nouns 'stocks' and 'bonds'.

• Investors should diversify their portfolios by investing in a mix of stocks and bonds.
• If you want to play it safe, you can put your money in stocks and bonds.
• I'm thinking of throwing some cash into stocks and bonds to see how it goes.
• In the financial world, stocks and bonds are like the yin and yang, balancing risk and stability.

noun a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions

• The government imposes a tax on all income earned by its citizens.
• I hate tax season because I always end up owing money.
• I can't believe how much tax they took out of my paycheck!
• His criticism felt like a tax on my self-esteem.

noun a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions

• Taxation is the process of imposing a financial charge on individuals or entities by a government.
• I hate dealing with taxation every year when tax season comes around.
• I can't believe how much they're taxing us this year, it's ridiculous.
• The burden of taxation weighs heavily on small businesses trying to stay afloat.

noun a whole quantity or number; the whole amount

adjective constituting the whole; entire

• The total cost of the project is estimated to be $1 million.
• The total number of attendees for the event was around 200.
• I can't believe the total bill came out to be so high!
• The total chaos in the office was unbearable.

adjective describing something that does not make a profit or is not financially beneficial

• The company decided to shut down the unprofitable branch to cut losses.
• The store wasn't making any money, so they had to close it down.
• That business was a total flop, they couldn't make any dough.
• Her investment turned out to be unprofitable, like throwing money down the drain.

verb to hold back; to keep from proceeding; to retain; to refuse to give or grant

• The company decided to withhold payment until the project was completed to satisfaction.
• I'm going to withhold my opinion until I have more information.
• Don't withhold the good news, tell me what happened!
• Sometimes it's better to withhold your emotions and think before reacting.

noun a word that refers to a person, place, thing, event, substance, or quality

verb a word that expresses an action, occurrence, or state of being

preposition a word that shows the relationship between a noun (or pronoun) and other words in a sentence

article a word that is used with a noun to specify grammatical definiteness of the noun

• In legal cases involving fraud or misconduct, the court may pierce the corporate veil to hold individuals accountable for the actions of the company.
• When things get messy in a lawsuit, they might try to pierce the corporate veil to see who's really responsible.
• If the company is trying to hide something, the court might decide to lift the corporate veil and expose the truth.
• Sometimes we need to pierce the corporate veil of a situation to uncover the underlying motivations and interests at play.

adjective A word or phrase naming an attribute, added to or grammatically related to a noun to modify or describe it.

• The appraiser provided a depreciatory assessment of the antique vase.
• She made a depreciatory comment about his new haircut.
• I don't appreciate your depreciatory remarks about my cooking skills.
• His constant criticism had a depreciatory effect on her self-esteem.

noun accelerated amortization is a method of paying off a loan more quickly than the scheduled repayment plan

• The company decided to implement an accelerated amortization schedule to pay off the loan sooner.
• We're going with accelerated amortization to get rid of the debt faster.
• Let's speed up the loan repayment with accelerated amortization.
• Using accelerated amortization is like hitting the fast-forward button on our loan payments.

verb a word that expresses an action, occurrence, or state of being

• The accountant accounted for all the expenses in the financial report.
• I made sure to account for all the money I spent on the trip.
• She really knows how to keep track of her funds, always accounting for every penny.
• His dedication accounted for his success in the competition.

noun a word that refers to a person, place, thing, event, substance, or quality

• The accounting equation, assets = liabilities + equity, must always balance in financial statements.
• You always have to make sure the accounting equation adds up correctly in the books.
• The accounting equation is like the math problem that never goes away in accounting.
• Think of the accounting equation as the scales of justice for your company's financial health.

noun a liability in the form of a written promise to pay a sum of money owed

• The company's account payable department is responsible for managing all outstanding invoices.
• I need to make sure I pay my account payable on time to avoid any late fees.
• I totally forgot about my account payable, I need to get that sorted out ASAP.
• Keeping up with your account payable is like staying on top of your financial responsibilities.

noun an amount of money owed by a customer to a business for goods or services provided on credit

• The company's financial statements show a high level of account receivable, indicating a strong sales performance.
• We need to follow up on those account receivable to make sure we get paid on time.
• I heard the boss is cracking down on late account receivable, so we better stay on top of it.
• Account receivable is like a ticking time bomb - if we don't manage it properly, it could blow up in our faces.

noun an amount of money owed to a company by a customer for goods or services provided on credit

• The company's accounts receivable department is responsible for tracking and collecting payments from customers.
• Hey, make sure you send out those invoices so our accounts receivable stays up to date.
• I heard the accounts receivable team is swamped with chasing down payments.
• Managing your accounts receivable is like keeping track of a constantly flowing river of money.

noun Interest that accumulates over time on a principal sum of money

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• The investor received a statement showing the accrued interest on their savings account.
• I just got my bank statement and saw the accrued interest from my savings.
• I'm loving the extra cash from the accrued interest in my account.
• The relationship between time and accrued interest is like a growing tree, steadily increasing in value.

verb Accruing is a verb that refers to the process of accumulating or increasing over time, typically in terms of interest or benefits.

• Interest is accruing on your savings account.
• You're earning more money with interest accruing in your account.
• My savings are growing with interest accruing every month.
• Knowledge is like compound interest, accruing over time and growing exponentially.

noun the cost required to acquire or purchase something

• The company calculated the acquisition cost of the new machinery before making a decision.
• They figured out how much the new equipment would cost before buying it.
• They checked the price tag on the new gear before pulling the trigger.
• Knowing the acquisition cost of success, she was willing to invest in her dreams.

noun a word that refers to a person, place, thing, event, substance, or quality

adjective a word that describes or modifies a noun

• The insurance company calculated the actual cash value of the damaged property.
• They figured out how much the stuff was really worth.
• They determined the cold hard cash value of the items.
• The actual cash value of the situation was much lower than expected.

verb Adding is the present participle form of the verb 'add', which means to combine two or more numbers or amounts to find a total.

• The accountant is currently adding up all the expenses for the quarterly report.
• I'm just adding a few more ingredients to the recipe to make it tastier.
• I'm adding the finishing touches to my outfit before heading out.
• By including more examples, you are adding depth to your argument.