Dictionary of Accounting Terms Barron's Business Guides_4

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Accounting.fm Page 124 Tuesday, February 13, 2007 1:40 PM interest 124 interest / intrəst/ noun 1. payment made interim / intərim/ adjective made, meas- interest interim by a borrower for the use of money, calcu- ured or happening in the middle of a period, lated as a percentage of the capital borrowed such as the financial year, and before the final result for the period is available í noun high interest, low interest interest at a high or low percentage 2. money paid as a statement of interim profits or dividends income on investments or loans to receive ‘…the company plans to keep its annual interest at 5% deposit which yields or dividend unchanged at 7.5 per share, gives or produces or bears 5% interest which includes a 3.75 interim payout’ account which earns interest at 10% or [Financial Times] which earns 10% interest The bank pays interim audit / intərim ɔ dit/ noun an interim audit 10% interest on deposits. The loan pays audit carried out for a period within a full 5% interest. 3. a part of the ownership of accounting year, often for a half year something, e.g. if you invest money in a interim dividend / intərim dividend/ interim dividend company you acquire a financial share or noun a dividend paid at the end of a half- interest in it year interest-bearing deposits / intrəst interest-bearing deposits interim financial statement / intərim interim financial statement beəriŋ di pɒzits/ plural noun a deposit of | fai n nʃəl steitmənt/ noun a financial money with a financial institution that pays | statement that covers a period other than a interest on the deposit full financial year. Although UK companies interest charges / intrəst tʃɑ d iz/ interest charges are not legally obliged to publish interim plural noun money paid as interest on a loan financial statements, those listed on the Lon- interest coupon / intrəst ku pɒn/ noun interest coupon don Stock Exchange are obliged to publish a a slip of paper attached to a government half-yearly report of their activities and a bond certificate which can be cashed to pro- profit and loss account which may either be vide the annual interest sent to shareholders or published in a interest cover / intrəst k və/ noun the interest cover national newspaper. In the United States, the ability to pay interest payments on a loan practice is to issue quarterly financial state- interested party / intrestid pɑ ti/ noun interested party ment. a person or company with a financial interest interim payment / intərim peimənt/ interim payment in a company noun a payment of part of a dividend interest expense / intrəst ik spens/ interest expense interim receiver / intərim ri si və/ noun interim receiver | | noun the cost of the interest payments on a receiver appointed to deal with a person’s borrowed money affairs until a bankruptcy order is made interest-free credit / intrəst fri interest-free credit intermediate debt / intə mi diət det/ intermediate debt | kredit/ noun a credit or loan where no noun a form of debt which has to be repaid interest is paid by the borrower The com- between four and ten years’ time pany gives its staff interest-free loans. internal /in t n(ə)l/ adjective 1. inside a internal interest rate / intrəst reit/ noun a figure interest rate | company 2. inside a country or a region which shows the percentage of the capital internal audit /in t n(ə)l ɔ dit/ noun an internal audit sum borrowed or deposited which is to be | audit carried out by a department inside the paid as interest. Also called rate of interest company interest rate margin / intrəst reit interest rate margin internal auditor /in t n(ə)l ɔ ditə/ internal auditor mɑ d in/ noun the difference between the | noun a member of staff who audits a com- interest a bank pays on deposits and the pany’s accounts interest it charges on loans internal control /in t n(ə)l kən trəυl/ internal control interest rate swap / intrəst reit swɒp/ interest rate swap | | noun a system set up by the management of noun an agreement between two companies a company to monitor and control the com- to exchange borrowings. A company with pany’s activities fixed-interest borrowings might swap them for variable interest borrowings of another internal growth /in t n(ə)l rəυθ/ internal growth | company. Also called plain vanilla swap noun the development of a company by growing its existing business with its own interest sensitive / intrəst sensitiv/ interest sensitive finances, as opposed to acquiring other busi- adjective used to describe assets, generally nesses. Also called organic growth purchased with credit, that are in demand when interest rates fall but considered less internal rate of return /in t n(ə)l reit internal rate of return | attractive when interest rates rise əv ri t n/ noun an average annual yield of | interest yield / intrəst ji ld/ noun a yield an investment, where the interest earned interest yield on a fixed-interest investment over a period of time is the same as the orig-
Accounting.fm Page 125 Tuesday, February 13, 2007 1:40 PM 125 intervention inal cost of the investment. Abbreviation bal organisation for the accountancy profes- sion that seeks to protect the public interest IRR by encouraging high quality practices by the internal reporting /in t n(ə)l ri pɔ tiŋ/ internal reporting | | world’s accountants noun financial information gathered and communicated within a company International Financial Reporting International Financial Reporting Standards Standards / intən ʃ(ə)nəl fai n nʃ(ə)l Internal Revenue Service /in t n(ə)l Internal Revenue Service | | ri pɔ tiŋ st ndədz/ plural noun an inter- revənju s vis/ noun in the United | nationally agreed set of high-quality, under- States, the branch of the federal government standable and enforceable global standards charged with collecting the majority of fed- for financial reporting eral taxes. Abbreviation IRS International Monetary Fund International Monetary Fund internal trade /in t n(ə)l treid/ noun internal trade | / intən ʃ(ə)nəl m nit(ə)ri f nd/ noun a trade between various parts of a country. type of bank which is part of the United Opposite external trade Nations and helps member states in financial International Accounting Standards International Accounting Standards difficulties, gives financial advice to mem- / intən ʃ(ə)nəl ə kaυntiŋ st ndədz/ | bers and encourages world trade. Abbrevia- plural noun standards of accounting proce- tion IMF dure set and monitored, since 2001, by the international money markets international money markets International Accounting Standards Board / intən ʃ(ə)nəl m ni mɑ kits/ plural International Accounting Standards International Accounting Standards Board noun markets such as the Euromarket, the Board / intən ʃ(ə)nəl ə kaυntiŋ | international market for lending or borrow- st ndədz bɔ d/ noun a London-based ing in Eurocurrencies independent organisation established to set international standards fro accounting pro- international reserves / intən ʃ(ə)nəl international reserves cedures. Abbreviation IASB ri z vz/ plural noun same as foreign cur- | rency reserves International Accounting Standards International Accounting Standards Committee Committee / intən ʃ(ə)nəl ə kaυntiŋ international trade / intən ʃ(ə)nəl international trade | st ndədz kə miti/ noun formerly, an treid/ noun trade between different coun- | organisation based in London that worked tries towards achieving global agreement on Internet / intənet/ noun an international Internet accounting standards. It was made part of network linking thousands of computers the International Accounting Standards using telephone, cable and satellite links Board in 2001. Abbreviation IASC He searched the Internet for information on International Bank for Reconstruc- International Bank for Reconstruction and Development cheap tickets to the US Much of our busi- tion and Development / intən ʃ(ə)nəl ness is done on the Internet. Internet sales b ŋk fə ri kənstr kʃ(ə)n ən di form an important part of our turnover. | veləpmənt/ noun the official name of the ‘…they predict a tenfold increase in sales World Bank. Abbreviation IBRD via internet or TV between 1999 and 2004’ International Centre for Settlement International Centre for Settlement of Investment Disputes [Investors Chronicle] of Investment Disputes ‘…in two significant decisions, the Securi- / intən ʃ(ə)nəl sentə fə set(ə)lmənt əv ties and Exchange Board of India today in vestmənt di spju ts/ noun one of the allowed trading of shares through the | | five institutions that comprises the World Internet and set a deadline for companies Bank Group. It was established in 1966 to to conform to norms for good corporate undertake the role previously undertaken in governance’ [The Hindu] a personal capacity by the President of the Internet banking / intənet b ŋkiŋ/ Internet banking World Bank in assisting in mediation or con- noun the operation of a bank account over ciliation of investment disputes between the Internet governments and private foreign investors. interpolation /in t pə leiʃ(ə)n/ noun a interpolation The overriding consideration in its estab- | | method of estimating a value between two lishment was that a specialist institution established values could help to promote increased flows of intervene / intə vi n/ verb to try to make intervene international investment. Although ICSID | a change in a situation in which you have not has close links to the World Bank, it is an been involved before autonomous organisation. Abbreviation ICSID intervention / intə venʃən/ noun the act intervention | International Federation of International Federation of Accountants of becoming involved in a situation in order Accountants / intən ʃ(ə)nəl to change it the central bank’s interven- fedəreiʃ(ə)n əv ə kaυntənts/ noun a glo- tion in the banking crisis |
Accounting.fm Page 126 Tuesday, February 13, 2007 1:40 PM intervention mechanism 126 invest /in vest/ verb 1. to put money into intervention mechanism intervention mechanism invest / intə | | shares, bonds, a building society, etc., hop- venʃən mekəniz(ə)m/ noun a method ing that it will produce interest and increase used by central banks in maintaining in value He invested all his money in unit exchange rate parities, e.g. buying or selling trusts. She was advised to invest in real foreign currency estate or in government bonds. 2. to spend inter vivos / intə vi vəυs/ phrase a Latin inter vivos money on something which you believe will phrase, ‘between living people’ be useful to invest money in new machin- inter vivos trust / intə vi vəυs tr st/ inter vivos trust ery to invest capital in a new factory noun a trust set up by one person for another ‘…we have substantial venture capital to living person invest in good projects’ [Times] intestacy /in testəsi/ noun the state of intestacy investment /in vestmənt/ noun 1. the investment | having died without having made a will | placing of money so that it will produce intestate /in testət/ adjective intestate to die interest and increase in value They called | intestate to die without having made a will for more government investment in new intrinsic value /in trinsik v lju / noun intrinsic value industries. She was advised to make | the material value of something These investments in oil companies. 2. a share, objects have sentimental value, but no bond or piece of property bought in the hope intrinsic value at all. The intrinsic value of that it will produce more money than was jewellery makes it a good investment. used to buy it ‘…investment trusts, like unit trusts, con- introduction / intrə d kʃ(ə)n/ noun the introduction | sist of portfolios of shares and therefore act of bringing an established company to provide a spread of investments’ [Inves- the Stock Exchange (i.e., getting permission tors Chronicle] for the shares to be traded on the Stock ‘…investment companies took the view Exchange, used when a company is formed that prices had reached rock bottom and by a demerger from an existing larger com- could only go up’ [Lloyd’s List] pany, and no new shares are being offered investment analyst /in vestmənt for sale) investment analyst | nəlist/ noun a person working for a invalid /in v lid/ adjective not valid or not invalid | stockbroking firm, who analyses the per- legal This permit is invalid. The claim formance of companies in a sector of the has been declared invalid. market, or the performance of a market sec- invalidate /in v lideit/ verb to make invalidate tor as a whole, or economic trends in general | something invalid Because the company investment appraisal /in vestmənt ə investment appraisal has been taken over, the contract has been | | preiz(ə)l/ noun the analysis of the future invalidated. profitability of capital purchases as an aid to invalidation /in v li deiʃən/ noun the invalidation good management | | act of making invalid investment bank /in vestmənt b ŋk/ investment bank | invalidity / invə liditi/ noun the fact of invalidity noun US a bank which deals with the under- | being invalid the invalidity of the contract writing of new issues, and advises corpora- inventory / invənt(ə)ri/ noun 1. espe- inventory tions on their financial affairs (NOTE: The cially US all the stock or goods in a ware- UK term is issuing house.) house or shop to carry a high inventory investment company /in vestmənt investment company | to aim to reduce inventory Also called stock k mp(ə)ni/ noun company whose shares 2. a list of the contents of a building such as can be bought on the Stock Exchange, and a house for sale or an office for rent to whose business is to make money by buying draw up an inventory of fixtures and fittings and selling stocks and shares í verb to make a list of stock or contents investment grant /in vestmənt rɑ nt/ investment grant | inventory control / invənt(ə)ri kən inventory control noun a government grant to a company to | trəυl/ noun US same as stock control help it to invest in new machinery inventory financing / invənt(ə)ri inventory financing investment income /in vestmənt investment income | fain nsiŋ/ noun especially US the use of ink m/ noun income from investments, money from working capital to purchase e.g. interest and dividends. Compare stock for resale earned income inventory turnover Investment Management Associa- inventory turnover / invənt(ə)ri Investment Management Association tion /in vestmənt m nid mənt ə t nəυvə/ noun especially US the total | | səυsieiʃ(ə)n/ noun the trade body for the value of stock sold during a year, divided by the value of the goods remaining in stock UK investment industry, formed in February
Accounting.fm Page 127 Tuesday, February 13, 2007 1:40 PM 127 irrevocable 2002 following the merger of the Associa- to pay an invoice They sent in their invoice six weeks late. í verb to send an invoice to tion of Unit Trusts and Investment Funds (AUTIF) and the Fund Manager’s Associa- someone to invoice a customer tion. Abbreviation IMA invoice discounting / invɔis invoice discounting investment property /in vestmənt investment property diskaυntiŋ/ noun a method of obtaining | prɒpəti/ noun property which is held for early payment of invoices by selling them at letting a discount to a company which will receive payment of the invoices when they are paid. investment revaluation reserve /in investment revaluation reserve | The debtor is not informed of this arrange- vestmənt ri v ljυeiʃən ri z v/ noun | | ment, as opposed to factoring, where the the capital reserve where changes in the debtor is informed. value of a business’s investment properties are disclosed when they are revalued invoice price / invɔis prais/ noun the invoice price price as given on an invoice, including any investment trust /in vestmənt tr st/ investment trust | discount and VAT noun a company whose shares can be bought on the Stock Exchange and whose invoice register / invɔis red istə/ invoice register business is to make money by buying and noun a list of purchase invoices recording selling stocks and shares the date of receipt of the invoice, the sup- plier, the invoice value and the person to investment turnover /in vestmənt investment turnover | whom the invoice has been passed to ensure t nəυvə/ noun income earned on capital that all invoices are processed by the invested in a business accounting system investor /in vestə/ noun a person who investor | invoicing / invɔisiŋ/ noun the work of invoicing invests money sending invoices All our invoicing is done investor protection /in vestə prə investor protection | | by computer. tekʃ(ə)n/ noun legislation to protect small invoicing department / invɔisiŋ di invoicing department investors from unscrupulous investment | pɑ tmənt/ noun the department in a com- brokers and advisers pany which deals with preparing and send- Investors in Industry /in vestəz in Investors in Industry | ing invoices indəstri/ plural noun a finance group partly involuntary bankruptcy /in owned by the big British High Street banks, involuntary bankruptcy | vɒlənt(ə)ri b ŋkr ptsi/ noun US an providing finance especially to smaller com- panies. Abbreviation 3i application by creditors to have a person or corporation made bankrupt (NOTE: The UK invisible assets /in vizib(ə)l sets/ invisible assets | term is compulsory winding up.) plural noun US same as intangible assets inward / inwəd/ adjective towards the inward invisible earnings /in vizib(ə)l niŋz/ invisible earnings | home country plural noun foreign currency earned by a country by providing services, receiving inward bill / inwəd bil/ noun a bill of lad- inward bill interests or dividends, but not by selling ing for goods arriving in a country goods IOU / ai əυ ju / noun ‘I owe you’, a signed IOU invisible exports /in vizib(ə)l invisible exports document promising that you will pay back | ekspɔ ts/ plural noun services, e.g. bank- money borrowed to pay a pile of IOUs ing, insurance and tourism, that are provided I have a pile of IOUs which need paying. to customers overseas and paid for in foreign IPO abbreviation initial public offering IPO currency. Opposite visible exports IRA / airə/ abbreviation US Individual IRA invisible imports /in vizib(ə)l invisible imports Retirement Account | impɔ ts/ plural noun services that overseas IRC abbreviation Inland Revenue Commis- IRC companies provide to domestic customers sioner who pay for them in local currency. Oppo- IRR abbreviation internal rate of return IRR site visible imports irrecoverable debt /iri k v(ə)rəb(ə)l irrecoverable debt invisibles /in vizib(ə)lz/ plural noun invisibles | | det/ noun a debt which will never be paid invisible imports and exports irredeemable bond /iri di məb(ə)l irredeemable bond invisible trade /in vizib(ə)l treid/ noun invisible trade | | bɒnd/ noun a government bond which has trade involving invisible imports and no date of maturity and which therefore pro- exports. Opposite visible trade vides interest but can never be redeemed at invoice / invɔis/ noun a note asking for invoice full value payment for goods or services supplied irrevocable /i revəkəb(ə)l/ adjective irrevocable your invoice dated November 10th to | make out an invoice for £250 to settle or unchangeable
Accounting.fm Page 128 Tuesday, February 13, 2007 1:40 PM irrevocable letter of credit 128 issued capital / iʃu d k pit(ə)l/ noun irrevocable letter of credit issued capital irrevocable letter of credit /i | an amount of capital which is given out as revəkəb(ə)l letər əv kredit/ noun a let- shares to shareholders ter of credit which cannot be cancelled or issued price / iʃu d prais/, issue price changed, except if agreed between the two issued price / iʃu prais/ noun the price of shares in a parties involved new company when they are offered for sale IRS IRS abbreviation US Internal Revenue for the first time Service issuer / iʃuə/ noun a financial institution issuer IS IS abbreviation income support that issues credit and debit cards and main- ISA ISA / aisə/ abbreviation Individual Savings tains the systems for billing and payment Account issuing / iʃuiŋ/ adjective organising an issuing issue of shares issue issue / iʃu / noun an act of offering new itemise / aitəmaiz/, itemize verb to make itemise shares for sale a detailed list of things Itemising the sales ‘…the company said that its recent issue of figures will take about two days. 10.5 per cent convertible preference shares IVA abbreviation Individual Voluntary IVA at A$8.50 a share has been oversub- Arrangement scribed’ [Financial Times]
Accounting.fm Page 129 Tuesday, February 13, 2007 1:40 PM J J curve / d ei k v/ noun a line on a jointly / d ɔintli/ adverb together with one J curve jointly graph shaped like a letter ‘J’, with an initial or more other people to own a property short fall, followed by a longer rise, used to jointly to manage a company jointly describe the effect of a falling exchange rate They are jointly liable for damages. on a country’s balance of trade joint management / d ɔint joint management JIT abbreviation just-in-time JIT m nid mənt/ noun management done by job card / d ɒb kɑ d/ noun a record card two or more people job card relating to a job and giving details of the joint ownership / d ɔint əυnəʃip/ joint ownership time taken to do a piece of work and the noun the owning of a property by several materials used. This is used to allocate direct owners labour and materials costs. joint products / d ɔint prɒd kts/ plu- joint products job costing / d ɒb kɒstiŋ/ noun the job costing ral noun two or more products that are pro- process of calculating the cost of a single job duced as a unit but are sold separately and or batch of work. Also called specific order each have a saleable value high enough for costing them to be regarded as a main product job order / d ɒb ɔ də/ noun an author- job order joint return / d ɔint ri t n/ noun a tax joint return | ised order for the production of goods or return that is filed jointly by a husband and services wife job order costing / d ɒb ɔ də kɒstiŋ/ job order costing joint-stock bank / d ɔint stɒk b ŋk/ joint-stock bank noun the accumulation of costs incurred by noun a bank which is a public company fulfilling specific orders for goods or serv- quoted on the Stock Exchange ices joint-stock company / d ɔint stɒk joint-stock company joint /d ɔint/ adjective 1. carried out or joint k mp(ə)ni/ noun formerly, a public com- produced together with others a joint pany in the UK whose shares were owned by undertaking 2. one of two or more people very many people. Now called a Public Lim- who work together or who are linked They ited Company or Plc. are joint beneficiaries of the will. The two joint venture / d ɔint ventʃə/ noun a joint venture countries are joint signatories of the treaty. situation where two or more companies join joint account / d ɔint ə kaυnt/ noun a joint account | together for one specific large business bank or building society account shared by project two people Many married couples have journal / d n(ə)l/ noun a book with the journal joint accounts so that they can pay for account of sales and purchases made each household expenses. day joint and several liability / d ɔint ən joint and several liability journal entry / d n(ə)l entri/ noun a journal entry sev(ə)rəl laiə biliti/ noun a situation | record of the accounting information for a where someone who has a claim against a business transaction, made at first in a jour- group of people can sue them separately or nal and later transferred to a ledger together as a group judgment / d d mənt/, judgement judgment joint cost / d ɔint kɒst/ noun the cost of joint cost noun a legal decision or official decision of which can be allocated to more than one a court to pronounce judgment, to give product, project or service your judgment on something to give an joint-life annuity / d ɔint laif ə njuəti/ joint-life annuity | official or legal decision about something noun an annuity that continues until both judgment creditor / d d mənt judgment creditor parties have died. They are attractive to mar- kreditə/ noun a person who has been given ried couples as they ensure that the survivor has an income for the rest of his or her life. a court order making a debtor pay him a debt
Accounting.fm Page 130 Tuesday, February 13, 2007 1:40 PM judgment debtor 130 junior partner / d u niə pɑ tnə/ noun a judgment debtor junior partner judgment debtor / d d mənt detə/ person who has a small part of the shares in noun a debtor who has been ordered by a a partnership court to pay a debt junior security / d u niə si kjυəriti/ junior security junior capital junior capital / d u niə k pit(ə)l/ noun | noun a security which is repaid after other capital in the form of shareholders’ equity, securities which is repaid only after secured loans just-in-time / d st in taim/ noun a sys- just-in-time called ‘senior capital’ have been paid if the tem in which goods are made or purchased firm goes into liquidation just before they are needed, so as to avoid junior mortgage junior mortgage / d u niə mɔ id / carrying high levels of stock. Abbreviation noun a second mortgage JIT
Accounting.fm Page 131 Tuesday, February 13, 2007 1:40 PM K K abbreviation one thousand ‘salary: shares at a preferential rate (informal ) K £20K+’ salary more than £20,000 per kite kite /kait/ verb 1. US to write cheques on annum one account which may not be able to hon- Keogh plan / ki əυ pl n/ noun US a pri- Keogh plan our them and deposit them in another, with- vate pension plan allowing self-employed drawing money from the second account businesspeople and professionals to set up before the cheques are cleared 2. to use sto- pension and retirement plans for themselves len credit cards or cheque books key-person insurance / ki p s(ə)n in key-person insurance kitty kitty / kiti/ noun money which has been | ʃυərəns/ noun an insurance policy taken collected by a group of people to be used out to cover the costs of replacing an later, such as for an office party We each employee who is particularly important to put £5 into the kitty. an organisation if he or she dies or is ill for a Know How Fund Know How Fund / nəυ haυ f nd/ noun long time formerly, a fund created by the UK govern- key rate / ki reit/ noun an interest rate key rate ment to provide technical training and which gives the basic rate on which other advice to countries of Eastern Europe. This rates are calculated, e.g. the former bank function is now carried out by the Depart- base rate in the UK, or the Federal Reserve’s ment for International Development. discount rate in the USA kickback / kikb k/ noun an illegal com- knowledge management knowledge management / nɒlid kickback mission paid to someone, especially a gov- m nid mənt/ noun the task of co-ordinat- ernment official, who helps in a business ing the specialist knowledge possessed by deal employees so that it can be exploited to cre- kicker / kikə/ noun a special inducement ate benefits and competitive advantage for kicker to buy a bond, e.g. making it convertible to the organisation
Accounting.fm Page 132 Tuesday, February 13, 2007 1:40 PM L labour / leibə/ noun 1. heavy work (NOTE: labour variance / leibə veəriəns/ noun labour labour variance labour is any discrepancy between the actual cost of The US spelling is labor.) charged at £15 an hour each hour of work labour in an organisation and the standard costs £15 2. workers, the workforce We industry cost will need to employ more labour if produc- Laffer curve / l fə k v/ noun a chart Laffer curve tion is to be increased. The costs of labour showing that cuts in tax rates increase output are rising in line with inflation. (NOTE: The in the economy. Alternatively, increases in US spelling is labor.) tax rates initially produce more revenue and ‘…the possibility that British goods will then less as the economy slows down. price themselves back into world markets lag /l / verb to be behind or to be slower lag is doubtful as long as sterling labour costs than something continue to rise faster than in competitor lagging indicator / l iŋ indikeitə/ lagging indicator countries’ [Sunday Times] noun an indicator which shows a change in labour costs / leibə kɒsts/ plural noun labour costs economic trends later than other indicators, the cost of the employees employed to make e.g. the gross national product. Opposite a product, not including materials or over- leading indicator heads landlord / l ndlɔ d/ noun a person or landlord labour efficiency variance / leibə i labour efficiency variance company which owns a property which is let | fiʃ(ə)nsi veəriəns/ noun the discrepancy land register / l nd red istə/ noun a land register between the usual or expected labour time list of pieces of land, showing who owns used to produce something and the actual each and what buildings are on it time used land registration / l nd red i land registration labour force / leibə fɔ s/ noun all the labour force | streiʃ(ə)n/ noun a system of registering employees in a company or in an area The land and its owners management has made an increased offer to Land Registry / l nd red istri/ noun a Land Registry the labour force. We are opening a new government office where details of land factory in the Far East because of the cheap ownership and sales are kept local labour force. land tax / l nd t ks/ noun a tax on the land tax ‘70 per cent of Australia’s labour force is amount of land owned employed in service activity’ [Australian lapse /l ps/ verb to stop being valid, or to lapse Financial Review] stop being active The guarantee has labour market / leibə mɑ kit/ noun the labour market lapsed. number of people who are available for lapsed option / l pst ɒpʃən/ noun an lapsed option work 25,000 school-leavers have just option which has not been taken up, and now come on to the labour market. has expired labour rate (price) variance / leibə labour rate variance last in first out / lɑ st in f st aυt/ reit prais veəriəns/ noun any change to last in first out phrase an accounting method where stock is the normal hourly rate paid to workers valued at the price of the earliest purchases. labour relations / leibə ri leiʃ(ə)nz/ labour relations | Abbreviation LIFO. Compare first in first plural noun relations between management out and employees The company has a history last quarter / lɑ st kwɔ tə/ noun a last quarter of bad labour relations. period of three months at the end of the labour turnover / leibə t nəυvə/ noun labour turnover financial year the movement of employees with some leav- last will and testament / lɑ st wil ən ing their jobs and others joining. Also called last will and testament testəmənt/ noun a will, a document by turnover of labour
Accounting.fm Page 133 Tuesday, February 13, 2007 1:40 PM 133 leasehold which a person says what he or she wants to lead time lead time / li d taim/ noun the time happen to their property when they die between deciding to place an order and launder / lɔ ndə/ verb to pass illegal prof- receiving the product The lead time on this launder its, money from selling drugs, money which item is more than six weeks. has not been taxed, etc., into the banking lead underwriter lead underwriter / li d ndəraitə/ noun system to launder money through an off- an underwriting firm which organises the shore bank underwriting of a share issue (NOTE: The US ‘…it has since emerged that the bank was term is managing underwriter.) being used to launder drug money and learning curve learning curve / l niŋ k v/ noun 1. a some of its executives have been given process of learning something that starts lengthy jail sentences’ [Times] slowly and then becomes faster 2. a line on LAUTRO / laυtrəυ/ abbreviation Life LAUTRO a graph which shows the relationship Assurance and Unit Trust Regulatory between experience in doing something and Organisation competence at carrying it out 3. a diagram or law /lɔ / noun 1. laws 2. inside or law graph that represents the way in which peo- within the law obeying the laws of a coun- ple gain knowledge or experience over time try against or outside the law not accord- (NOTE: A steep learning curve represents a ing to the laws of a country The company situation where people learn a great deal in is possibly operating outside the law. to a short time; a shallow curve represents a break the law to do something which is not slower learning process. The curve eventu- allowed by law He is breaking the law by ally levels out, representing the time when trading without a licence. 3. a rule govern- the knowledge gained is being consoli- ing some aspect of human activity made and dated.) 4. the decrease in the effort required enforced by the state to produce each single item when the total lawful / lɔ f(ə)l/ adjective acting within the lawful number of items produced is doubled (NOTE: law The concept of the learning curve has its law of supply and demand / lɔ əv sə law of supply and demand origin in productivity research in the aircraft | plai ən di mɑ nd/ noun a general rule that industry of the 1930s, when it was discov- | the amount of a product which is available is ered that the time and effort needed to related to the needs of potential customers assemble an aircraft decreased by 20% laws /lɔ z/ plural noun rules by which a laws each time the total number produced dou- country is governed and the activities of bled.) people and organisations controlled lease lease /li s/ noun a written contract for let- lay out phrasal verb to spend money We ting or renting a building, a piece of land or had to lay out half our cash budget on equip- a piece of equipment for a period against ping the new factory. payment of a fee to rent office space on a LBO abbreviation leveraged buyout LBO twenty-year lease the lease expires next L/C abbreviation letter of credit L/C year or the lease runs out next year the LCM abbreviation lower of cost or market lease comes to an end next year í verb 1. to LCM LDT abbreviation licensed deposit-taker let or rent offices, land or machinery for a LDT period to lease offices to small firms to lead bank / i d b ŋk/ noun the main lead bank lease equipment 2. to use an office, land or bank in a loan syndicate machinery for a time and pay a fee to leading indicator / li diŋ indikeitə/ leading indicator lease an office from an insurance company noun an indicator such as manufacturing All our company cars are leased. order books which shows a change in eco- lease back phrasal verb to sell a property nomic trends earlier than other indicators. or machinery to a company and then take it Opposite lagging indicator back on a lease They sold the office build- lead manager / li d m nid ə/ noun a lead manager ing to raise cash, and then leased it back on person who organises a syndicate of under- a twenty-five year lease. writers for a new issue of securities leasehold leads and lags / li dz ən l z/ plural leasehold / li shəυld/ noun, adjective leads and lags noun in businesses that deal in foreign cur- possessing property on a lease, for a fixed rencies, the practice of speeding up the time to buy a property leasehold We are receipt of payments (leads) if a currency is currently occupying a leasehold property. The company has some valuable leaseholds. going to weaken, and slowing down the pay- í noun a property held on a lease from a ment of costs (lags) if a currency is thought to be about to strengthen, in order to maxim- freeholder The company has some valua- ise gains and reduce losses ble leaseholds.
Accounting.fm Page 134 Tuesday, February 13, 2007 1:40 PM leaseholder 134 lending limit / lendiŋ limit/ noun a leaseholder lending limit leaseholder / li shəυldə/ noun a person restriction on the amount of money a bank who holds a property on a lease can lend leasing leasing / li siŋ/ noun the use of a lease or lending margin / lendiŋ mɑ d in/ noun lending margin of equipment under a lease an equipment- an agreed spread for lending, based on the leasing company The company has LIBOR branched out into car leasing. lessee less /les/ adjective smaller than, of a less leasing agreement leasing agreement / li siŋ ə ri mənt/ | smaller size or of a smaller value We do noun a contract between an owner and a les- not grant credit for sums of less than £100. see, by which the lessee has the exclusive He sold it for less than he had paid for it. use of a piece of equipment for a period of í preposition minus, with a sum removed time, against payment of a fee purchase price less 15% discount interest ledger ledger / led ə/ noun a book in which less service charges í adverb not as much accounts are written lessee /le si / noun a person who has a lessee | legacy legacy / le əsi/ noun a piece of property lease or who pays money for a property he or given by someone to someone else in a will she leases legal legal / li (ə)l/ adjective 1. according to the lessor /le sɔ / noun a person who grants a lessor | law or allowed by the law The company’s lease on a property action in sacking the accountant was com- let /let/ verb to allow the use of a house, an let pletely legal. 2. referring to the law office or a farm to someone for the payment legal capital legal capital / li (ə)l k pit(ə)l/ noun of rent (NOTE: The US term is rent.) the amount of shareholders’ equity in a com- letter of acknowledgement / letər əv letter of acknowledgement pany that is not reduced when dividends are ək nɒlid mənt/ noun a letter which says | paid that something has been received legal charge legal charge / li (ə)l tʃɑ d / noun a letter of credit / letər əv kredit/ noun a letter of credit legal document held by the Land Registry document issued by a bank on behalf of a showing who has a claim on a property customer authorising payment to a supplier when the conditions specified in the docu- legal claim legal claim / li (ə)l kleim/ noun a state- ment are met. Abbreviation L/C ment that someone owns something legally letter of indemnity / letər əv in letter of indemnity He has no legal claim to the property. | demniti/ noun a letter promising payment legal costs legal costs / li (ə)l kɒsts/, legal as compensation for a loss charges / li (ə)l tʃɑ d iz/, legal letter of intent / letər əv in tent/ noun a letter of intent expenses / li (ə)l ik spensiz/ plural noun | | letter which states what a company intends money spent on fees to lawyers The clerk to do if something happens could not afford the legal expenses involved letter of licence / letər əv lais(ə)ns/ letter of licence in suing her boss. noun a letter from a creditor to a debtor who legal currency legal currency / li (ə)l k rənsi/ noun is having problems repaying money owed, money which is legally used in a country giving the debtor a certain period of time to legal tender legal tender / li (ə)l tendə/ noun coins raise the money and an undertaking not to or notes which can be legally used to pay a bring legal proceedings to recover the debt debt during that period legatee legatee / le ə ti / noun a person who letters patent / letəz peitənt/ plural letters patent | receives property from someone who has noun the official term for a patent died level / lev(ə)l/ verb to level off or to level level lend lend /lend/ verb to allow someone to use out to stop rising or falling Profits have something for a period to lend something levelled off over the last few years. Prices to someone or to lend someone something are levelling out. to lend money against security He lent the leverage / levərid / noun 1. same as leverage company money or He lent money to the gearing 2. the act of borrowing money at company. The bank lent her £50,000 to fixed interest which is then used to produce start her business. (NOTE: lending – lent) more money than the interest paid lender lender / lendə/ noun a person who lends leveraged / li vərid / adjective borrow- leveraged money ing relatively large sums of money in order to finance assets lender of the last resort lender of the last resort / lendə əv ðə leveraged buyout / li vərid d baiaυt/, lɑ st ri zɔ t/ noun a central bank which leveraged buyout | / li vərid d lends money to commercial banks leveraged takeover
Accounting.fm Page 135 Tuesday, February 13, 2007 1:40 PM 135 limiting factor teikəυvə/ noun an act of buying all the life expectancy / laif ik spektənsi/ life expectancy | shares in a company by borrowing money noun the number of years a person is likely against the security of the shares to be to live bought. Abbreviation LBO life insurance / laif in ʃυərəns/ noun life insurance | US same as life assurance ‘…the offer came after management had offered to take the company private life interest / laif intrəst/ noun a situa- life interest through a leveraged buyout for $825 mil- tion where someone benefits from a prop- lion’ [Fortune] erty as long as he or she is alive levy / levi/ noun money which is demanded levy life tables / laif teib(ə)lz/ plural noun life tables and collected by the government same as actuarial tables ‘…royalties have been levied at a rate of LIFO / laifəυ/ abbreviation last in first out LIFO 12.5% of full production’ [Lloyd’s List] limit / limit/ noun the point at which some- limit liabilities / laiə bilitiz/ plural noun the liabilities thing ends or the point where you can go no | further í verb 1. to stop something from debts of a business, including dividends owed to shareholders The balance sheet going beyond a specific point, to restrict the shows the company’s assets and liabilities. number or amount of something 2. to restrict to discharge your liabilities in full to pay the number or amount of something everything which you owe ‘…the biggest surprise of 1999 was the rebound in the price of oil. In the early liability / laiə biliti/ noun 1. a legal liability | months of the year commentators were responsibility for damage, loss or harm talking about a fall to $5 a barrel but for the The two partners took out insurance to cover first time in two decades, the oil exporting employers’ liability. 2. responsibility for a countries got their act together, limited payment such as the repayment of a loan production and succeeded in pushing LIBOR / laibɔ / abbreviation London LIBOR prices up’ [Financial Times] Interbank Offered Rate limitation / limi teiʃ(ə)n/ noun the act of limitation | licensed deposit-taker / lais(ə)nst di licensed deposit-taker allowing only a specific quantity of some- | pɒzit teikə/, licensed institution thing The contract imposes limitations on / lais(ə)nst insti tju ʃ(ə)n/ noun a the number of cars which can be imported. | deposit-taking institution which is licensed limited company / limitid k mp(ə)ni/ limited company to receive money on deposit from private noun a company in which each shareholder individuals and to pay interest on it, e.g. a is responsible for the company’s debts only building society, bank or friendly society. to the amount that he or she has invested in Abbreviation LDT the company. Limited companies must be lien / li ən/ noun the legal right to hold lien formed by at least two directors. Abbrevia- someone’s goods and keep them until a debt tion Ltd. Also called limited liability com- has been paid pany life assurance / laif ə ʃυərəns/ noun life assurance limited liability / limitid laiə biliti/ limited liability | | insurance which pays a sum of money when noun a situation where someone’s liability someone dies, or at an agreed date if they are for debt is limited by law still alive limited liability company / limitid limited liability company Life Assurance and Unit Trust Reg- Life Assurance and Unit Trust Regulatory Organisation laiəbiliti k mp(ə)ni/ noun same as lim- ulatory Organisation / laif ə ʃɔ rəns ited company | ən ju nit tr st re jυlət(ə)ri limited partner / limitid pɑ tnə/ noun a limited partner ɔ ənaizeiʃ(ə)n/ noun an organisation set partner who is responsible for the debts of up to regulate the operations of life assur- the firm only up to the amount of money ance companies and unit trusts, now which he or she has provided to the business replaced by the FSA. Abbreviation LAU- limited partnership / limitid limited partnership TRO pɑ tnəʃip/ noun a registered business life assurance company / laif ə life assurance company where the liability of the partners is limited | ʃɔ rəns k mp(ə)ni/ noun a company pro- to the amount of capital they have each pro- viding life assurance, but usually also pro- vided to the business and where the partners viding other services such as investment may not take part in the running of the busi- advice ness life-cycle costing / laif saik(ə)l limiting factor / limitiŋ f ktə/ noun a life-cycle costing limiting factor kɒstiŋ/ noun an estimate of the likely rev- factor which limits a company’s ability to enue generated by, and costs incurred by, a achieve its goals, e.g. sales demand being product over its life cycle too low for the company to make enough
Accounting.fm Page 136 Tuesday, February 13, 2007 1:40 PM line item budget 136 listing details / listiŋ di teilz/ plural profit The short holiday season is a limit- listing details ing factor on the hotel trade. noun details of a company which are pub- lished when the company applies for a stock line item budget / lain aitəm b d it/ line item budget exchange listing (the US equivalent is the noun a well-established budget layout that ‘registration statement’) shows the costs of a cost object analysed by their nature in a line-by-line format listing particulars / listiŋ pə tikjυləz/ listing particulars | plural noun same as listing details line of credit / lain əv kredit/ noun 1. line of credit the amount of money made available to a listing requirements / listiŋ ri listing requirements | customer by a bank as an overdraft to kwaiəmənts/ plural noun the conditions open a line of credit or a credit line to which must be met by a corporation before make credit available to someone 2. the bor- its stock can be listed on the New York Stock rowing limit on a credit card Exchange link /liŋk/ verb to join or to attach to some- link litigation / liti eiʃ(ə)n/ noun the bring- litigation | thing else to link pensions to inflation to ing of a lawsuit against someone link bonus payments to productivity His loan /ləυn/ noun money which has been loan salary is linked to the cost of living. index- lent linked ‘…over the last few weeks, companies liquid / likwid/ adjective easily converted liquid raising new loans from international banks to cash, or containing a large amount of cash have been forced to pay more, and an unu- sually high number of attempts to syndi- liquid assets / likwid sets/ plural liquid assets cate loans among banks has failed’ noun cash, or investments which can be [Financial Times] quickly converted into cash loan capital / ləυn k pit(ə)l/ noun a loan capital liquidation / likwi deiʃ(ə)n/ noun 1. the liquidation | part of a company’s capital which is a loan sale of assets for cash, usually in order to to be repaid at a later date pay debts liquidation of a debt payment of a debt 2. the winding up or closing of a loan stock / ləυn stɒk/ noun stock issued loan stock company and selling of its assets the com- to an organisation in return for a loan. Loan pany went into liquidation the company stock earns interest. was closed and its assets sold local / ləυk(ə)l/ adjective located in or pro- local liquidation value / likwi deiʃ(ə)n liquidation value viding a service for a restricted area | v lju / noun the amount of money that ‘…each cheque can be made out for the would be yielded by a quick sale of all of a local equivalent of £100 rounded up to a company’s assets convenient figure’ [Sunday Times] liquidator / likwideitə/ noun a person liquidator ‘…the business agent for Local 414 of the named to supervise the closing of a com- Store Union said his committee will rec- pany which is in liquidation ommend that the membership ratify the agreement’ [Toronto Star] liquidity /li kwiditi/ noun cash, or the fact liquidity | of having cash or assets which can be ‘EC regulations insist that customers can buy cars anywhere in the EC at the local changed into cash pre-tax price’ [Financial Times] liquidity ratio /li kwiditi reiʃiəυ/ noun liquidity ratio | local authority / ləυk(ə)l ɔ θɒriti/ noun local authority an accounting ratio used to measure an | an elected section of government which runs organisation’s liquidity. It is calculated by a small area of the country taking the business’s current assets, minus its stocks, divided by its current liabilities. local currency / ləυk(ə)l k rənsi/ noun local currency Also called acid test ratio, quick ratio the currency of a particular country where a listed company / listid k mp(ə)ni/ transaction is being carried out Because of listed company the weakness of the local currency, all pay- noun a company whose shares can be ments are in dollars. bought or sold on the Stock Exchange local government listed securities / listid si kjυəritiz/ / ləυk(ə)l local government listed securities | v(ə)nmənt/ noun elected authorities and plural noun shares which can be bought or administrative organisations which deal sold on the Stock Exchange, shares which with the affairs of small areas of a country appear on the official Stock Exchange list Listing Agreement / listiŋ ə ri mənt/ lock into / lɒk intə/, lock in / lɒk in/ lock into Listing Agreement | noun a document which a company signs verb to be fixed to an interest rate or when being listed on the Stock Exchange, in exchange rate By buying francs forward which it promises to abide by stock the company is in effect locking itself into a exchange regulations pound-franc exchange rate of 10.06.
Accounting.fm Page 137 Tuesday, February 13, 2007 1:40 PM 137 luxury tax ‘…against losses of FFr 7.7m two years London Interbank Offered Rate London Interbank Offered Rate ago, the company made a net profit of FFr / l ndən intəb ŋk ɒfəd reit/ noun the 300,000 last year’ [Financial Times] rate at which banks offer to lend Eurodollars loss adjuster / lɒs ə d stə/ noun a per- loss adjuster to other banks. Abbreviation LIBOR | son who calculates how much insurance long long /lɒŋ/ adjective for a large period of should be paid on a claim time loss carryback loss carryback / lɒs k rib k/ noun the long bond long bond / lɒŋ bɒnd/, long coupon process of applying a net operating loss to a bond / lɒŋ ku pɒn bɒnd/ noun a bond previous accounting year which will mature in more than ten years’ loss carryforward / lɒs k rifɔ wəd/ loss carryforward time noun the process of applying a net operating long credit long credit / lɒŋ kredit/ noun credit loss to a following accounting year terms which allow the borrower a long time loss relief / lɒs ri li f/ noun an amount of loss relief to pay | tax not to be paid on one year’s profit to off- long-dated bill long-dated bill / lɒŋ deitid bil/ noun a set a loss in the previous year bill which is payable in more than three lot /lɒt/ noun 1. a group of items sold lot months’ time together at an auction to bid for lot 23 long-dated stocks long-dated stocks / lɒŋ deitid stɒks/ At the end of the auction half the lots were unsold. 2. a group of shares which are sold plural noun same as longs to sell a lot of shares to sell shares in long lease long lease / lɒŋ li s/ noun a lease which small lots runs for fifty years or more to take an lottery / lɒtəri/ noun a game where num- lottery office building on a long lease bered tickets are sold and prizes given for long position long position / lɒŋ pə ziʃ(ə)n/ noun a some of the numbers | situation where an investor sells long, i.e. lower of cost or market / ləυər əv kɒst lower of cost or market sells forward shares which he or she owns. ɔ mɑ kit/ noun a stock-accounting Compare short position method in which a manufacturing or supply long-range long-range / lɒŋ reind / adjective for a firm values items of stock either at their long period of time in the future original cost or the current market price, whichever is lower. Abbreviation LCM longs longs /lɒŋz/ plural noun government stocks which will mature in over fifteen low gearing / ləυ iəriŋ/ noun the fact of low gearing years’ time. Also called long-dated stocks not having much borrowing in proportion to your capital long-term long-term / lɒŋ t m/ adjective relating low yield / ləυ ji ld/ noun a yield on the low yield to a long time into the future The manage- share price which is low for the sector, sug- ment projections are made on a long-term gesting that investors anticipate that the basis. Sound long-term planning will give company will grow fast, and have pushed up the company more direction. the share price in expectation of growth long-term borrowings long-term borrowings / lɒŋ t m loyalty bonus / lɔiəlti bəυnəs/ noun a loyalty bonus bɒrəυiŋz/ plural noun borrowings which special privilege given to shareholders who do not have to be repaid for some years keep their shares for a long period of time, long-term debt long-term debt / lɒŋ t m det/ noun used especially to attract investors to privati- loans that are not repaid within a year sation issues loose change loose change / lu s tʃeind / noun Ltd abbreviation limited company Ltd money in coins lump sum / l mp s m/ noun money paid lump sum lose lose /lu z/ verb 1. not to have something in one single amount, not in several small any more 2. to have less money He lost sums When he retired he was given a £25,000 in his father’s computer company. lump-sum bonus. She sold her house and invested the money as a lump sum. loss loss /lɒs/ noun 1. the state or process of not luncheon voucher / l nʃtən vaυtʃə/ luncheon voucher having something any more 2. the state of noun a ticket given by an employer to an having less money than before or of not employee in addition to their wages, which making a profit the car was written off as can be exchanged for food in a restaurant a dead loss or a total loss the car was so badly damaged that the insurers said it had luxury tax / l kʃəri t ks/ noun a tax on luxury tax no value to cut your losses to stop doing goods or services that are considered non- something which is losing money essential
Accounting.fm Page 138 Tuesday, February 13, 2007 1:40 PM M machine hour rate /mə ʃi n aυə reit/ machine hour rate maladministration maladministration / m ləd mini | | | streiʃ(ə)n/ noun incompetent administra- noun a method of calculating production overhead absorption rate, where the number tion of hours the machines are expected to work manage manage / m nid / verb to direct or to be is divided into the budgeted production in charge of something to manage a overhead to give a rate per hour branch office A competent and motivated macro- /m krəυ/ prefix very large, cover- macro- person is required to manage an important ing a wide area department in the company. macroeconomics macroeconomics / m krəυi kə ‘…the research director will manage and | nɒmiks/ plural noun a study of the eco- direct a team of graduate business analysts reporting on consumer behaviour through- nomics of a whole area, a whole industry, a out the UK’ [Times] whole group of the population or a whole country, in order to help in economic plan- managed earnings managed earnings / m nid d niŋz/ ning. Compare microeconomics (NOTE: plural noun the use of any of various takes a singular verb) accounting devices to make profits appear majority shareholder /mə d ɒrəti majority shareholder higher or lower than they actually were in a | ʃeəhəυldə/ noun a person who owns more given accounting period than half the shares in a company managed fund managed fund / m nid d f nd/ noun a majority shareholding /mə d ɒrəti majority shareholding unit trust fund which is invested in specialist | ʃeəhəυldiŋ/ noun a group of shares which funds within the group and can be switched are more than half the total from one specialised investment area to another. Also called managed unit trust majority vote /mə d ɒriti vəυt/, major- majority vote | ity decision /mə d ɒriti di si (ə)n/ noun a managed rate managed rate / m nid d reit/ noun a | | decision which represents the wishes of the rate of interest charged by a financial institu- largest group as shown by a vote tion for borrowing that is not prescribed as a margin over base rate but is set from time to make /meik/ verb 1. to produce or to man- make time by the institution ufacture The factory makes three hundred cars a day. 2. to earn money He makes managed unit trust managed unit trust / m nid d ju nit £50,000 a year or £25 an hour. 3. to increase tr st/ noun same as managed fund in value The shares made $2.92 in today’s management management / m nid mənt/ noun 1. trading. 4. to make a profit to have more the process of directing or running a busi- money after a deal to make a loss to have ness a management graduate or a gradu- less money after a deal to make a killing ate in management Good management or to make a very large profit efficient management is essential in a large make over phrasal verb to transfer property organisation. Bad management or ineffi- legally to make over the house to your cient management can ruin a business. 2. a children group of managers or directors The man- make up phrasal verb to compensate for agement has decided to give everyone a pay something to make up a loss or differ- increase. (NOTE: Where management ence to pay extra so that the loss or differ- refers to a group of people it is sometimes ence is covered followed by a plural verb.) make-or-buy decision / meik ɔ bai di make-or-buy decision ‘…the management says that the rate of | si (ə)n/ noun a choice between manufac- loss-making has come down and it expects turing a product or component and buying it further improvement in the next few years’ in [Financial Times]
Accounting.fm Page 139 Tuesday, February 13, 2007 1:40 PM 139 manufacturing profit management accountant agement tasks and decision-making. Abbre- management accountant / m nid mənt ə kaυntənt/ noun an viation MIS | accountant who prepares financial informa- management review / m nid mənt ri management review | tion for managers so that they can take deci- vju / noun an external auditor’s evaluation sions of the performance of the managers of an management accounting organisation. Also called management let- management accounting / m nid mənt ə kaυntiŋ/, management ter | / m nid mənt ə accountancy management team / m nid mənt management team | kaυntənsi/ noun the providing of informa- ti m/ noun all the managers who work in a tion to managers, which helps them to plan, particular company to control their businesses and to take deci- manager / m nid ə/ noun 1. the head of manager sions which will make them run their busi- a department in a company She’s a nesses more efficiently. Compare financial department manager in an engineering accounting company. Go and see the human management accounts management accounts resources manager if you have a problem. / m nid mənt ə kaυnts/ plural noun The production manager has been with the | financial information prepared for a man- company for only two weeks. 2. the person in ager so that decisions can be made, includ- charge of a branch or shop Mr Smith is the ing monthly or quarterly financial state- manager of our local Lloyds Bank. The ments, often in great detail, with analysis of manager of our Lagos branch is in London actual performance against the budget for a series of meetings. management audit / m nid mənt management audit ‘…the No. 1 managerial productivity ɔ dit/ noun a listing of all the managers in problem in America is managers who are out of touch with their people and out of an organisation with information about their touch with their customers’ [Fortune] skills and experience The management audit helped determine how many more managing director / m nəd iŋ dai managing director | managers needed to be recruited. rektə/ noun the director who is in charge of management buyin / m nid mənt a whole company. Abbreviation MD management buyin baiin/ noun the purchase of a subsidiary mandate / m ndeit/ noun an order which mandate company by a group of outside directors. allows something to take place Abbreviation MBI mandatory bid / m ndət(ə)ri bid/ mandatory bid management buyout / m nid mənt management buyout noun an offer to purchase the shares of a baiaυt/ noun the takeover of a company by company which has to be made when a a group of employees, usually senior man- shareholder acquires 30% of that company’s agers and directors. Abbreviation MBO shares management charge / m nid mənt management charge manipulate /mə nipjυleit/ verb to manipulate | tʃɑ d / noun same as annual manage- manipulate the accounts to make false ment charge accounts so that the company seems profita- ble management consultant management consultant / m nid mənt kən s ltənt/ noun a person manpower forecasting / m npaυə manpower forecasting | who gives advice on how to manage a busi- fɔ kɑ stiŋ/ noun the process of calculating ness how many employees will be needed in the future, and how many will actually be avail- management control system management control system able / m nid mənt kən trəυl sistəm/ noun a | manpower planning / m npaυə comprehensive plan designed to ensure that manpower planning pl niŋ/ noun the process of planning to an organisation’s resources are used effec- tively obtain the right number of employees in each job management decision cycle management decision cycle manufacturing / m nid mənt di si (ə)n saik(ə)l/ noun a / m njυ f ktʃəriŋ/ manufacturing | | model for efficiency in business decision- noun the production of machine-made prod- making, following the process from the ucts for sale We must try to reduce the identification of a need or problem to an manufacturing overheads. Manufacturing accountant’s analysis of the effect of the processes are continually being updated. decisions taken manufacturing profit / m njυ manufacturing profit | management information system f ktʃəriŋ prɒfit/ noun the difference management information system / m nid mənt infə meiʃ(ə)n sistəm/ between the cost of buying a product from | noun a computer-based information system another supplier and the cost to the company that is specially designed to assist with man- of manufacturing it itself
Accounting.fm Page 140 Tuesday, February 13, 2007 1:40 PM margin 140 manufacturing resource planning margin margin call margin call / mɑ d in kɔ l/ noun a / m njυ f ktʃəriŋ ri zɔ s pl niŋ/ noun request for a purchaser of a futures contract | | an integrated computerised information sys- or an option to pay more margin, since the tem that integrates all aspects of a com- fall in the price of the securities or commod- pany’s manufacturing business ity has removed the value of the original margin deposited margin / mɑ d in/ noun 1. the difference margin between the money received when selling a margin of safety margin of safety / mɑ d in əv seifti/ product and the money paid for it 2. extra noun the units produced or sales of such space or time allowed 3. the difference units which are above the breakeven point between interest paid to depositors and mark down phrasal verb to make the price interest charged to borrowers by a bank, of something lower building society, etc. 4. a deposit paid when mark up phrasal verb to make the price of purchasing a futures contract something higher ‘…profit margins in the industries most mark-down mark-down / mɑ k daυn/ noun 1. a exposed to foreign competition – machin- reduction of the price of something to less ery, transportation equipment and electri- than its usual price 2. the percentage amount cal goods – are significantly worse than by which a price has been lowered There usual’ [Australian Financial Review] has been a 30% mark-down on all goods in marginal / mɑ d in(ə)l/ adjective hardly marginal the sale. worth the money paid market market / mɑ kit/ noun 1. an area where a marginal analysis / mɑ d in(ə)l ə marginal analysis | product might be sold or the group of people n ləsis/ noun an assessment of the impact who might buy a product There is no mar- of minor changes on a company, industry or ket for this product. Our share of the Far economy eastern market has gone down. 2. the possi- marginal cost / mɑ d in(ə)l kɒst/ noun marginal cost ble sales of a specific product or demand for the cost of making a single extra unit above a specific product There’s no market for the number already planned word processors The market for home marginal costing / mɑ d in(ə)l marginal costing computers has fallen sharply. We have kɒstiŋ/ noun the costing of a product on 20% of the UK car market. 3. a place where the basis of its variable costs only, excluding money or commodities are traded 4. sell at fixed costs the market an instruction to stockbroker to marginal pricing / mɑ d in(ə)l marginal pricing sell shares at the best price possible 5. to praisiŋ/ noun 1. the practice of basing the put something on the market to start to selling price of a product on its variable offer something for sale They put their costs of production plus a margin, but house on the market. I hear the company excluding fixed costs 2. the practice of mak- has been put on the market. the company ing the selling price the same as the cost of a has priced itself out of the market the single extra unit above the number already company has raised its prices so high that its planned products do not sell marginal rate of tax / mɑ d in(ə)l reit marginal rate of tax ‘…market analysts described the falls in əv t ks/, marginal rate of taxation the second half of last week as a technical / mɑ d in(ə)l reit əv t ks eiʃ(ə)n/ noun correction to a market which had been | the percentage of tax which a taxpayer pays pushed by demand to over the 900 index level’ [Australian Financial Review] at the top rate, which he or she therefore pays on every further pound or dollar he or marketability marketability / mɑ kitə biliti/ noun the | she earns. Also called marginal tax rate fact of being able to be sold easily the ‘…pensioner groups claim that pensioners marketability of shares in electronic compa- have the highest marginal rates of tax. nies Income earned by pensioners above $30 a marketable marketable / mɑ kitəb(ə)l/ adjective week is taxed at 62.5 per cent, more than easily sold the highest marginal rate’ [Australian Financial Review] market analysis market analysis / mɑ kit ə n ləsis/ | noun the detailed examination and report of marginal revenue / mɑ d in(ə)l marginal revenue a market revenju / noun the income from selling a single extra unit above the number already market capitalisation market capitalisation / mɑ kit sold k pitəlai zeiʃ(ə)n/ noun the total market | marginal tax rate / mɑ d in(ə)l t ks marginal tax rate value of a company, calculated by multiply- reit/ noun same as marginal rate of tax ing the price of its shares on the Stock
Accounting.fm Page 141 Tuesday, February 13, 2007 1:40 PM 141 material facts Exchange by the number of shares outstand- price at which a share stands in a stock mar- ing company with a £1m capitalisation ket market rate / mɑ kit reit/ noun the usual market economist / mɑ kit i market rate market economist | kɒnəmist/ noun a person who specialises price in the market We pay the market rate for temporary staff or We pay temporary in the study of financial structures and the staff the market rate. return on investments in the stock market market forces / mɑ kit fɔ siz/ plural ‘…after the prime rate cut yesterday, there market forces was a further fall in short-term market noun the influences on the sales of a product rates’ [Financial Times] which bring about a change in prices market research / mɑ kit ri s tʃ/ noun market research marketing / mɑ kitiŋ/ noun the business marketing | the process of examining the possible sales of presenting and promoting goods or serv- of a product and the possible customers for ices in such a way as to make customers it before it is put on the market want to buy them market risk premium / mɑ kit risk market risk premium ‘…reporting to the marketing director, the pri miəm/ noun the extra return required successful applicant will be responsible for the development of a training pro- from a high-risk share to compensate for its gramme for the new sales force’ [Times] higher-than-average risk market trends / mɑ kit trendz/ plural marketing agreement / mɑ kitiŋ ə marketing agreement market trends | ri mənt/ noun a contract by which one noun gradual changes taking place in a mar- ket company will market another company’s products market value / mɑ kit v lju / noun the market value marketing cost / mɑ kitiŋ kɒst/ noun value of an asset, a share, a product or a marketing cost company if sold today the cost of selling a product, including advertising, packaging, etc. mark-up / mɑ k p/ noun 1. an increase in mark-up marketing department / mɑ kitiŋ di price We put into effect a 10% mark-up of marketing department | all prices in June. Since I was last in the pɑ tmənt/ noun the section of a company store they have put at least a 5% mark-up on dealing with marketing and sales the whole range of items. 2. the difference marketing manager / mɑ kitiŋ marketing manager between the cost of a product or service and m nid ə/ noun a person in charge of a its selling price we work to a 3.5 times marketing department The marketing mark-up or to a 350% mark-up we take manager has decided to start a new adver- the unit cost and multiply by 3.5 to give the tising campaign. selling price market leader / mɑ kit li də/ noun 1. a market leader mass production / m s prə d kʃən/ mass production product which sells most in a market 2. the | noun the manufacture of large quantities of company with the largest market share We identical products are the market leader in home computers. master budget / mɑ stə b d it/ noun a master budget ‘…market leaders may benefit from scale plan that assesses an organisation’s pro- economies or other cost advantages; they posed activities in terms of assets, equities, may enjoy a reputation for quality simply revenues and costs by being at the top, or they may actually produce a superior product that gives them matching / m tʃiŋ/ noun the process of matching both a large market share and high profits’ comparing costs to sales in order to calculate [Accountancy] profits during an accounting period marketmaker / mɑ kitmeikə/ noun a marketmaker matching concept / m tʃiŋ kɒnsept/, matching concept person or firm that buys and sells shares on matching convention / m tʃiŋ kən | the stock market and offers to do so (NOTE: venʃən/ noun the basis for preparing Marketmakers list the securities they are accounts which says that profits can only be willing to buy or sell and their bid and offer recognised if sales are fully matched with prices. If the prices are met, they immedi- costs accrued during the same period ately buy or sell and make their money by material facts /mə tiəriəl f kts/ plural material facts | charging a commission on each transac- noun 1. in an insurance contract, informa- tion. Marketmakers play an important part tion that the insured has to reveal at the time in maintaining an orderly market.) that the policy is taken out, e.g., that a house market opportunities / mɑ kit ɒpə market opportunities is located on the edge of a crumbling cliff. | tju nitiz/ plural noun the possibility of Failure to reveal material facts can result in finding new sales in a market the contract being declared void. 2. informa- market price / mɑ kit prais/ noun 1. the market price tion that has to be disclosed in a prospectus. price at which a product can be sold 2. the listing requirements
Accounting.fm Page 142 Tuesday, February 13, 2007 1:40 PM materiality 142 materiality /mə tiəri liti/ noun the seri- Our aim is to maximise profits. She is paid materiality | | on results, and so has to work flat out to ousness of an omission or misstatement in maximise her earnings. accounts material news /mə tiəriəl nju z/ plural maximum / m ksiməm/ noun the largest material news maximum | noun price sensitive developments in a com- possible number, price or quantity It is the pany, e.g., proposed acquisitions, mergers, maximum the insurance company will pay. profit warnings and the resignation of direc- (NOTE: The plural is maxima or maxi- tors, that most stock exchanges require a up to a maximum of £10 no mums.) more than £10 í adjective largest possible company to announce immediately to the exchange (NOTE: The US term is material 40% is the maximum income tax rate or the information.) maximum rate of tax. The maximum load material requirement planning /mə for the truck is one ton. Maximum produc- material requirement planning | tion levels were reached last week. tiəriəl ri kwaiəmənt pl niŋ/ a compu- | ter-based system that deals with the ordering MBI abbreviation management buyin MBI and processing of component parts and MBO abbreviation management buyout MBO materials. Abbreviation MRP MD abbreviation managing director She MD materials price variance /mə tiəriəlz materials price variance was appointed MD of a property company. | prais veəriəns/ noun the discrepancy mean /mi n/ adjective average The mean mean between the price actually paid for materials annual increase in sales is 3.20%. í noun and the price that it was expected would be the average or number calculated by adding paid several quantities together and dividing by materials quantity (usage) variance materials quantity variance the number of quantities added Unit sales /mə tiəriəlz kwɒntiti veəriəns/ noun the are over the mean for the first quarter or | discrepancy between the actual quantity of above the first-quarter mean. materials used in production and the quan- means /mi nz/ noun a way of doing some- means tity of materials normally allowed thing Do we have any means of copying materials variance /mə tiəriəlz materials variance | all these documents quickly? Bank trans- veəriəns/ noun a combination of materials fer is the easiest means of payment. (NOTE: price variance and materials quantity The plural is means.) í plural noun money (usage) variance or resources The company has the means maternity benefit /mə t niti benifit/ maternity benefit to launch the new product. Such a level of | noun money paid by the National Insurance investment is beyond the means of a small to a mother when she has her child private company. maternity pay period /mə t niti pei maternity pay period means test / mi nz test/ noun an inquiry means test | piəriəd/ noun a period of eighteen weeks into how much money someone earns to see when statutory maternity pay is paid. Abbre- if they are eligible for state benefits viation MPP means-test / mi nz test/ verb to find out means-test maturity /mə tʃυəriti/ noun the time at maturity | how much money someone has in savings which something becomes due for payment and assets All applicants will be means- or repayment tested. maturity date /mə tʃυəriti deit/ noun a maturity date | measure / me ə/ noun 1. a way of calcu- measure date when a government stock, an assurance lating size or quantity 2. a type of action í policy or a debenture will become due for verb to measure a company’s perform- payment. Also called date of maturity ance to judge how well a company is doing maturity value /mə tʃυəriti v lju / maturity value | measurement of profitability measurement of profitability noun the amount payable when a bond or / me əmənt əv prɒfitə biliti/ noun a way other financial instrument matures | of calculating how profitable something is maxi ISA / m ksi aisə/ noun an ISA that maxi ISA median / mi diən/ noun the middle median offers the opportunity to invest on the stock number in a list of numbers market, with a limit on combined cash and medical insurance / medik(ə)l in stock market investments of £7000 per year. medical insurance | ʃυərəns/ noun insurance which pays the mini ISA cost of medical treatment, especially when maximisation / m ksimai zeiʃ(ə)n/, maximisation | someone is travelling abroad maximization noun the process of making something as large as possible profit max- medium of exchange / mi diəm əv iks medium of exchange | imisation or maximisation of profit tʃeind / noun anything that is used to pay maximise / m ksimaiz/, maximize verb for goods. Nowadays, this usually takes the maximise to make something as large as possible form of money (banknotes and coins), but in
Accounting.fm Page 143 Tuesday, February 13, 2007 1:40 PM 143 mid-week merchant / m tʃənt/ noun 1. a busi- ancient societies, it included anything from merchant cattle to shells. nessperson who buys and sells, especially one who buys imported goods in bulk for mediums / mi diəmz/ plural noun gov- mediums retail sale a coal merchant a wine mer- ernment stocks which mature in seven to fif- chant 2. a company, shop or other business teen years’ time which accepts a credit card for purchases medium-sized company / mi diəm medium-sized company merchant bank / m tʃənt b ŋk/ noun merchant bank saizd k mp(ə)ni/ noun a company which 1. a bank which arranges loans to compa- has an annual turnover of less than £22.8m nies, deals in international finance, buys and and does not employ more than 250 staff sells shares and launches new companies on a medium-sized engineering company the Stock Exchange, but does not provide medium-term bond / mi diəm t m medium-term bond banking services to the general public 2. US bɒnd/ noun a bond which matures within a bank which operates a credit card system, five to fifteen years accepting payment on credit cards from member / membə/ noun 1. a person who member retailers or ‘merchants’ belongs to a group, society or organisation merchant banker / m tʃənt b ŋkə/ merchant banker Committee members voted on the proposal. noun a person who has a high position in a They were elected members of the board. merchant bank Every employer is a member of the merchant number / m tʃənt n mbə/ merchant number employers’ federation. 2. a shareholder in a noun a number of the merchant, printed at company 3. an organisation which belongs the top of the report slip when depositing to a larger organisation the member states credit card payments of the EU the members of the United Nations the member companies of a trade merge /m d / verb to join together The merge association two companies have merged. The firm merged with its main competitor. ‘…it will be the first opportunity for party members and trade union members to merger / m d ə/ noun the joining merger express their views on the tax package’ together of two or more companies As a [Australian Financial Review] result of the merger, the company is now the member bank / membə b ŋk/ noun a member bank largest in the field. bank which is part of the Federal Reserve merger accounting / m d ə ə merger accounting | system kaυntiŋ/ noun a way of presenting the member firm / membə f m/ noun a member firm accounts of a newly acquired company stockbroking firm which is a member of a within the group accounts, so as to show it in stock exchange the best possible light membership / membəʃip/ noun 1. the membership mezzanine finance / metsəni n mezzanine finance fact of belonging to a group, society or fain ns/ noun finance provided to a com- organisation membership qualifications pany after it has received start-up finance conditions of membership membership of micro- /maikrəυ/ prefix very small micro- the EU 2. all the members of a group The microeconomics / maikrəυ i kə microeconomics membership was asked to vote for the new | nɒmiks/ plural noun the study of the eco- president. nomics of people or single companies. Com- ‘…the bargaining committee will recom- pare macroeconomics (NOTE: takes a sin- mend that its membership ratify the agree- gular verb) ment at a meeting called for June’ middle management / mid(ə)l middle management [Toronto Star] m nid mənt/ noun department managers members’ voluntary winding up members’ voluntary winding up in a company, who carry out the policy set / membəz vɒlənt(ə)ri waindiŋ p/ noun by the directors and organise the work of a the winding up of a company by the share- group of employees holders themselves middle price / mid(ə)l prais/ noun a middle price memorandum and articles of asso- memorandum and articles of association price between the buying and selling price, ciation /memə r ndəm ənd ɑ tik(ə)lz | usually shown in indices əv ə səυsi eiʃ(ə)n/, memorandum of | | mid-month / mid m nθ/ adjective hap- mid-month association / memər ndəm əv ə səυsi | | pening in the middle of the month mid- eiʃ(ə)n/ noun the legal documents which month accounts set up a limited company and give details of mid-week / mid wi k/ adjective happen- mid-week its name, aims, authorised share capital, conduct of meetings, appointment of direc- ing in the middle of a week the mid-week tors and registered office lull in sales