Accounting Vocabulary

noun the action or process of gradually reducing or writing off a debt, such as a loan or mortgage, by making periodic payments

• The company's financial statements include a detailed schedule of amortization for its intangible assets.
• I have to remember to factor in the amortization costs when budgeting for the project.
• I'm trying to wrap my head around how this whole amortization thing works.
• Just like how a loan is gradually paid off through amortization, our efforts will eventually lead to success.

noun money that is owed and should have been paid earlier

adjective being in arrears, or behind in payment

• The tenant failed to pay the rent on time, resulting in arrears accumulating each month.
• My friend is in arrears with his phone bill and keeps getting reminders to pay up.
• I'm so broke right now, I'm drowning in arrears with all my bills.
• The company's lack of innovation put them in arrears with their competitors, causing them to fall behind in the market.

noun a useful or valuable thing, person, or quality

adjective relating to or constituting an asset

• The company's most valuable asset is its intellectual property.
• My car is definitely my most important asset.
• His basketball skills are his biggest asset on the court.
• Her positive attitude is her greatest asset in life.

noun a person whose job is to keep records of the financial affairs of a business

• The bookkeeper meticulously recorded all financial transactions for the company.
• The bookkeeper keeps track of all the money stuff for the business.
• The bookkeeper is the one who handles all the cash flow for the company.
• In a way, the bookkeeper is like the financial guardian of the business.

noun a form of currency, such as coins or banknotes, that can be used to exchange goods and services

verb to exchange a check or other negotiable instrument for money

adjective related to or involving money in the form of coins or banknotes

• The customer insisted on paying with cash instead of a credit card.
• I always make sure to have some cash on me just in case.
• I need to hit up the ATM to grab some cash for the concert.
• His quick thinking saved the project, he really came through in the cash.

noun the amount of money that is required or spent in order to buy, produce, or do something

verb to require the payment of (a specified sum of money) before it can be acquired or done

• The cost of living in this city is quite high compared to other areas.
• I'm not sure if I can afford the cost of going to that concert.
• I can't believe how much that new phone costs, it's highway robbery!
• The cost of success often includes sacrifices and hard work.

noun a place where financial transactions are carried out, especially a place where accounts are kept and money is counted

• The countinghouse is where all financial transactions are recorded and managed.
• I'll meet you at the countinghouse to go over the numbers.
• Let's crunch some numbers at the countinghouse.
• Her mind was like a well-organized countinghouse, always keeping track of every detail.

verb to give someone credit for something, to believe or acknowledge that someone is responsible for a particular achievement or good quality

• The payment was credited to my account within 24 hours.
• I checked my bank account and the money was credited already.
• I was so surprised when I saw my account credited with extra cash.
• Her hard work and dedication were credited for the success of the project.

verb to subtract or take away from a total

• The company will deduct the cost of the damaged equipment from your paycheck.
• They'll deduct the money for the pizza from what you owe.
• I'm gonna deduct that from your tab, okay?
• You can deduct the time spent on this project as a valuable learning experience.

noun the act of paying for something; payment

• The defrayment of the invoice must be made within 30 days.
• Don't worry about the defrayment, I'll take care of it.
• I'll cover the defrayment for now, you can pay me back later.
• The defrayment of his debt to society was seen as a necessary step towards redemption.

verb to pay out or distribute money

• The company will disburse the funds to the shareholders next week.
• I'll disburse the money to everyone after the meeting.
• Let's disburse the cash and split it evenly.
• The teacher will disburse knowledge to the students during the lecture.

noun a payment that is due

adjective appropriate or expected under the circumstances

preposition because of or as a result of

• The project deadline was extended due to unforeseen circumstances.
• I couldn't submit my assignment on time because of some unexpected issues.
• I missed the bus due to some bad luck.
• Her success was due to her hard work and dedication.

noun the act of demanding payment or debt collection

adjective related to demanding payment or debt collection

• The company uses a dunning process to collect outstanding payments from customers.
• I received a dunning letter from the bank reminding me to pay my credit card bill.
• I hate when I get dunning emails from my landlord about rent.
• His constant dunning for attention was starting to annoy his friends.

noun a burden or hindrance

• The legal encumbrance on the property made it difficult to sell.
• Having to carry around all this paperwork is such an encumbrance.
• Ugh, this project is a total encumbrance, I wish it would just go away.
• Her fear of failure was an encumbrance that held her back from pursuing her dreams.

noun the state of owing money or being under obligation to someone

• The company's indebtedness to its creditors is currently under review.
• I never realized the extent of my financial indebtedness until I started budgeting.
• I'm in deep with my indebtedness, I need to start paying off my debts.
• Her emotional indebtedness to her mentor was evident in her heartfelt speech.

adjective unable to be recovered or regained

• The company suffered an irrecoverable loss due to the economic downturn.
• I accidentally deleted all my files and now they're irrecoverable.
• I lost my phone in the river, it's irrecoverable now.
• The trust between them was broken irrecoverably after the betrayal.

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

• It is important for businesses to keep books accurately to ensure financial transparency.
• Make sure you keep books for all your expenses if you want to track your spending.
• I always keep my books in check to make sure I'm not overspending.
• In order to stay organized, it's crucial to keep books on all aspects of your life.

noun an excess of something, especially in relation to a specified amount

• The store charged an overage fee for exceeding the limit on the number of items that could be purchased.
• I got hit with an overage charge for using too much data on my phone.
• I can't believe I have to pay an overage penalty for going over my monthly allowance.
• The overage of emotions spilled out of her as she couldn't contain her feelings any longer.

noun Owing can also function as a noun when referring to the amount of money or something else that is due or owed.

verb Owing is functioning as a verb when it is used to express that something is owed or due.

adjective Owing is functioning as an adjective when it is used to describe something that is yet to be paid or fulfilled.

preposition Owing is functioning as a preposition when it is used to indicate the reason or cause of something.

• The delay in payment is owing to a technical issue with our accounting system.
• She couldn't attend the meeting owing to a prior commitment.
• I didn't make it to the party owing to feeling under the weather.
• The success of the project is owing to the team's hard work and dedication.

noun a book in which a bank or building society records the depositor's deposits, withdrawals, and interest

• Please remember to bring your passbook when you visit the bank to update your account.
• Hey, don't forget to carry your passbook when you go to the bank.
• Make sure you've got your passbook with you before heading to the bank.
• The passbook of knowledge is filled with the experiences of a lifetime.

noun a phrase used to refer to a situation where a payment or deadline has passed

adjective a phrase used to describe something that is overdue or late in payment

• The invoice is now past due and requires immediate payment.
• Hey, just a heads up that your bill is past due.
• Dude, your rent is hella past due, you gotta pay up.
• The deadline for the project is past due, we need to catch up quickly.

noun the total amount of money paid in wages by a company

• The company's payroll department is responsible for processing employee salaries.
• I heard the payroll team is working overtime to get everyone paid on time.
• I need to make sure my hours are right on the payroll so I get paid correctly.
• Managing payroll is like balancing a delicate financial ecosystem within the company.

noun a date that is later than the actual date

verb to assign a date that is later than the actual date

• The document was postdated to ensure it would not be processed before a certain date.
• I postdated the check so it wouldn't be cashed until after my payday.
• I told my friend to postdate the message so it looks like she sent it earlier.
• Her actions seemed to postdate her true feelings, creating a sense of confusion.

noun a written acknowledgment of having received something

verb none

adjective none

adverb none

pronoun none

preposition none

conjunction none

interjection none

article none

• Please make sure to keep your receipt as proof of purchase.
• Hey, don't forget to grab your receipt before you leave.
• I always ask for a receipt just in case something goes wrong.
• Her smile was like a receipt of happiness, impossible to ignore.

noun A written acknowledgment that something has been received

verb None

adjective None

adverb None

pronoun None

preposition None

conjunction None

interjection None

article None

• Please make sure to keep all your receipts for reimbursement purposes.
• Hey, don't forget to hang on to your receipts in case you need to return something.
• I always stash my receipts in a shoebox just in case I need them later.
• The success of the project can be seen in the positive feedback and glowing receipts from satisfied customers.

verb to keep or continue to have something

adjective kept in possession or use

• The employee's position was retained despite the company's restructuring.
• They decided to keep the employee on board even after the company changes.
• The employee's job was saved during the company shake-up.
• The essence of the original design was retained in the final product.

verb to place or arrange something in a particular position

adverb in a downward direction

• The judge set down the rules for the courtroom.
• Can you please set down the remote control on the coffee table?
• I'll just set down my bag here and grab a drink.
• She set down her worries and focused on the present moment.

noun the act of setting off; a counterbalance or equivalent

verb to counterbalance or compensate for

• The company used the setoff clause in the contract to deduct the amount owed from the final payment.
• I heard they're planning to do a setoff of the expenses against the profits.
• Let's do a setoff of our bills and see how much we have left to spend.
• Her kindness was a setoff against his harsh words, balancing out the negative energy.

noun various items not important enough to be mentioned individually

adjective various or diverse

• The store sells a variety of sundry items such as stationery, toiletries, and household goods.
• I picked up some sundry snacks for the road trip.
• Let's grab some sundry stuff from the convenience store.
• The artist used sundry colors to create a vibrant painting.

adjective Superannuated is an adjective that means outdated or obsolete, typically referring to a person who is retired or past the age of usefulness.

• The company decided to replace the superannuated equipment with newer models.
• They finally got rid of the old superannuated stuff in the office.
• I can't believe they were still using that superannuated technology.
• Her superannuated way of thinking was holding her back from progress.

noun an amount of something left over when requirements have been met; an excess of production or supply over demand

adjective more than what is needed or used; excess

• The company had a surplus of inventory after the holiday season.
• We have a surplus of snacks in the kitchen if you're hungry.
• I scored a surplus of concert tickets for cheap on Craigslist.
• Her kindness created a surplus of goodwill among her colleagues.

verb present participle of the verb 'tax', meaning to impose a tax on something

adjective describing something that requires a lot of effort or is burdensome

• Filing taxes can be a very taxing process for individuals and businesses.
• I find doing my taxes to be so taxing, it's such a hassle.
• Ugh, dealing with taxes is seriously the worst, it's so taxing.
• The emotional toll of the situation was taxing on her mental health.

adjective describing something that cannot be collected or recovered

• The company wrote off the uncollectible debt as a loss on their financial statements.
• The business decided to forget about the uncollectible payment and move on.
• They knew they wouldn't see a dime of that uncollectible money, so they cut their losses.
• The uncollectible debt weighed heavily on their balance sheet like a dark cloud.

adjective not fully developed or matured; immature

• The company's financial statements include a section for unmatured debts.
• I still have some unmatured ideas for the project that need more development.
• I can't believe he's still acting so unmatured at his age.
• Her unmatured emotions were evident in her impulsive reactions.

adjective describing something that has not been achieved or fulfilled

• The company's unrealized potential for growth was finally recognized by investors.
• I never realized how much unrealized talent you had until now.
• She's been sitting on all this unrealized cash for months.
• His unrealized dreams haunted him every night.

noun a large container, typically made of metal or plastic, used for holding liquids such as water, chemicals, or food

verb not applicable

adjective not applicable

adverb not applicable

pronoun not applicable

preposition not applicable

conjunction not applicable

interjection not applicable

article not applicable

• The company is required to pay the VAT on all sales transactions.
• Don't forget to add the VAT when calculating the total cost.
• I can't believe how much VAT they charge on these products!
• The VAT on his emotions seemed to be increasing as the conversation went on.

noun The exclusive owner of a business

• The sole proprietor of the company made all the major decisions.
• The sole proprietor is the boss around here.
• The sole proprietor calls all the shots.
• As the sole proprietor of his own destiny, he took control of his future.

noun a person or thing that has not been collected or gathered

adjective describing something that has not been collected or gathered

• The uncollected data needs to be analyzed before we can draw any conclusions.
• Don't forget about the uncollected papers on your desk.
• I totally spaced out and left my uncollected laundry at the laundromat.
• Her uncollected emotions were evident in her trembling hands.

noun a term that refers to the action of coming or going back to a place

verb to come or go back to a place

• The company's policy allows customers to request a return within 30 days of purchase.
• I need to Breturn this shirt because it doesn't fit me.
• I'll Breturn the favor by helping you move next weekend.
• After a long journey, the protagonist finally decides to Breturn to his hometown and confront his past.

noun Work in Progress - a project that is not yet completed

• The project is still a work in progress (WIP) and we are working diligently to meet the deadline.
• I haven't finished that report yet, it's still a WIP.
• I'm still tweaking my website, it's a total WIP right now.
• Life is a constant WIP, always evolving and changing.

noun a record or statement of financial transactions

adjective up to date or current

• It is important to keep your accounts current to ensure accurate financial records.
• Make sure you stay on top of your accounts so everything is up to date.
• Don't let your accounts fall behind, keep them current.
• Keeping your accounts current is like staying on top of your game in the financial world.

noun a payment made by a corporation to its shareholders, usually in the form of cash or additional shares of stock, based on the company's profits

• The accrued dividend on the stock was distributed to shareholders at the end of the quarter.
• I heard we're getting some accrued dividend from our investments soon.
• Yo, did you see that fat accrued dividend we got on our stocks?
• Like a tree growing taller, our wealth slowly increased with each accrued dividend earned.

noun the act of accruing or something that has accrued over time

• The accrument of interest on the loan is calculated monthly.
• The accrument of vacation days is a nice perk of this job.
• I didn't realize the accrument of points would be so fast in this game.
• The accrument of knowledge through experience is invaluable.

verb to gather or collect over time

adjective having been collected or built up over time

• Over the years, he accumulated a vast amount of knowledge in his field.
• I've accumulated so much stuff in my closet, it's time for a clean out.
• She's been hustling hard and has accumulated a ton of cash.
• The stress and pressure gradually accumulated until she couldn't take it anymore.

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

adjective a word that describes or gives more information about a noun

• The company's accumulated surplus has grown steadily over the past few years.
• We've got a nice little pile of extra cash saved up.
• Our surplus stash is looking pretty healthy right now.
• Like a squirrel storing nuts for the winter, the business has built up an impressive accumulated surplus.

noun a record or list of discharges or obligations, especially in a financial context

• The acquittance roll is a document that lists all the debts that have been paid and settled.
• I found an old acquittance roll in the attic that belonged to my great-grandfather.
• I need to make sure all my payments are on the acquittance roll before I can relax.
• Her memory serves as an acquittance roll, keeping track of all the kindnesses she has received.

adjective Addebted is an adjective that describes someone who owes a debt or is obligated to repay something.

• The company is deeply addebted to its investors for their continuous support.
• I feel addebted to my friend for helping me move last weekend.
• I'm totally addebted to my parents for letting me borrow their car.
• She felt addebted to the universe for the opportunities that came her way.

verb To reach a significant or satisfactory amount or level

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

• The expenses for this project really add up to much more than we anticipated.
• I don't think all these little costs are going to add up to much in the end.
• I doubt all these expenses are going to add up to much, to be honest.
• In life, sometimes the small victories may not seem like much individually, but they all add up to much success in the end.