لغت ها

BEC : Accounting - Vocabulary

Hello, this is AJ. Welcome to the vocabulary lesson. In the conversation we actually taught you a lot of accounting vocabulary in the conversation, so I’ll talk about some of the words that we used in the conversation that were not explained that you might not know.

You heard the word ‘tracking’, tracking, like tracking devices or ‘to track’ something. It can also be used as a verb, to track. To track just means to observe and measure really.

So if you’re tracking something it means you’re watching it carefully. It probably means that you are measuring it. So a tracking device is just something that is used to observe and measure.

The next phrase is ‘where the company stands’, where the company stands on something, to stand on something. You can use this with a person too. Where do you stand on this issue? Stand in this case, to stand on, means believe. So, where does the company stand? It means what is the company’s belief about this. What is the company’s decision about this? What is their policy? So if you ask a person where do you stand on this question, yes or no? You’re asking, what is their belief, what is their opinion, what is their policy.

We explained assets and liabilities and equity in the conversation, but then you heard the word ‘subsidiary’, subsidiary. A subsidiary is a company that is owned by a bigger company. So Coca-Cola, for example, they might own several little small companies.

Maybe the own a company that, I don’t know, farm sugar, the Maui Sugar Company.

The Maui Sugar Company is a much smaller company owned by Coca-Cola, which is a very huge company. So the Maui Sugar Company is a subsidiary of Coca-Cola.

The next phrase is ‘a multitude of things’, a multitude. A multitude just means many, a lot, many, a lot, a multitude. So a multitude of things means a lot of things.

‘A mortgage’ - A mortgage is a loan for a house or a building. So it’s a bank loan used to pay for a house or a building.

‘To finance’, like to finance your equipment or to finance something. It just means to get a loan to pay for it. So if you finance a new building, it means you don’t pay cash.

You don’t pay for the whole thing. You actually get a loan for it. You finance it. You get the bank to pay for it and then you have to pay money to the bank every month.

‘Payroll’ - Payroll is a business’ combined expense for all employees. It’s the pay that they have to give their employees every month or every week or whatever. That’s called payroll.

You heard ‘accounts receivable’, again that’s money that’s owed to us, money that’s owed to our company.

‘Accounts payable’ means money that we owe to others that we have to pay out.

You heard the word ‘vendor’, this is a common word used in business. A vendor or vendors (plural) are outside people or companies that you pay to do something; that you pay for something. So, for example, let’s imagine your company needs a website so your company hires a web design company. They pay the web design company. That web design company is a vendor, right? They’re an outside company that’s doing work for you, for your company. So a vendor is an outside person or company that does work for your company.

‘Retained earnings’ we heard, that’s profit or equity.

‘Net worth’ - Again, it’s this idea of equity. Equity and net worth are kind of the same ideas.

‘Revenue’ - Revenue means the amount of money that’s coming in. It’s your income.

That’s all.

So, as usually, listen to these every day for the next seven to 14 days so you learn these things deeply and so that you understand these three very basic, very important accounting tracking devices, accounting tools.

You’re going to hear these words in business a lot, balance sheet, income statement, expense statement, cash flow statement, and it’s just helpful to know and to understand what these things are, why they’re important, what they’re used for. You don’t need to be an accountant, but these are excellent things to understand in any business.

So listen every day and see you next time.

The End.