English Vocabulary For Accounting and Finance

If you are you are a business professional, a student, or someone working in an international company, understanding English vocabulary for accounting and finance is very important. Financial jargon is used in reports, meetings, and everyday transactions, making it essential to communicate effectively. Please take a look at our selected list of English Vocabulary For Accounting and Finance. We have beginner, intermediate and advanced.

Beginner Finance & Accounting Vocabulary

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Word	Definition	Example Sentence
Money	What we use to buy things. e.g. Dollar $.	She saved money to buy a new laptop.
Price	The cost of a product or service.	The price of the car was too high for me.
Buy	To get something by paying for it.	He decided to buy a new phone.
Sell	To give something in exchange for money.	She wants to sell her old furniture.
Save	To keep money for future use.	I save a portion of my salary every month.
Cost	The amount needed to buy something.	The total cost of the trip was $500.
Pay	To give money for a product or service.	I need to pay my phone bill today.
Bank	A place where money is kept and managed.	He deposited his paycheck at the bank.
Loan	Borrowed money that must be repaid.	She took a loan to buy a house.
Bill	A statement of money owed for goods or services.	The electricity bill is due next week.

Intermediate English Vocabulary For Accounting

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Word	Definition	Example Sentence
Budget	A plan for managing income and expenses.	We need to create a budget for the next quarter so we can plan our money effectively.
Income	Money earned through work or investments.	His main source of income is his salary but he hopes to buy a rental property soon.
Expense	Money spent on goods and services.	Rent is my largest monthly expense then food is second.
Profit	Money gained after expenses are deducted.	The company made a profit of $10,000 last year after all expenses.
Loss	When expenses are higher than income.	The business reported a loss due to low sales and too many expenses.
Investment	Money put into something to earn more money.	He made an investment in the stock market and in a property.
Revenue	Total money earned by a business.	The company’s revenue increased this year from $100,000 to $150,000.
Debt	Money owed to someone or an institution.	He is working to pay off his debt. It will take five years to pay it off.
Tax	Money paid to the government based on income or purchases.	We must file our taxes before the deadline otherwise we will get in trouble.
Balance Sheet	A financial statement showing assets, liabilities, and equity.	The accountant prepared the company’s balance sheet to show all things that make money. And those that lose money.

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Advanced Finance & Accounting Vocabulary

Word	Definition	Example Sentence
Liquidity	The ability to quickly convert assets into cash.	The company maintained strong liquidity with low debts and cash in the bank.
Amortisation	The gradual repayment of a loan over time.	The mortgage amortisation schedule spans 30 years.
Equity	Ownership interest in a company or asset.	She increased her equity level in the business by buying more shares.
Depreciation	The decrease in value of an asset over time.	The company accounted for depreciation on its equipment each year.
Capital Gains	Profit from selling an investment at a higher price.	He earned capital gains from selling his stocks. They had increased by 50%.
Hedging	A strategy to reduce financial risk. You invest in two opposing assets.	The company used hedging to protect against currency fluctuations.
Solvency	A company’s ability to meet long-term debts.	The firm’s solvency ratio improved after restructuring their loans. Now they less to pay each month and more available cash.
Accrual	Adding up of expenses or income before being paid or receiving funds.	The company follows the accrual accounting method.
Leverage	The use of borrowed money to increase investment potential.	High leverage can lead to higher profits but also greater risk. If you borrow too much maybe you cannot pay it back.
Forensic Accounting	Investigating financial records for fraud or irregularities.	The firm hired a forensic accountant to analyse for errors or deliberate wrongdoings.

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I hope you enjoyed my English vocabulary for Accounting and Finance.

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