Accounting Unit 13: Vocabulary

Please study the 20 vocabulary terms from Unit 13: Professional Relationships. Then continue to the activities.
arrears
money that is owed or should have already been paid
As he was five months in arrears on his payments, the company repossessed his car.
authorization
official permission for something to happen
The payment was a week late because the financial director only gave authorization to pay it yesterday.
breach
the act of breaking a law, promise or other agreement
The company was taken to court for breaching the contract.
creditor
someone who money is owed to
As the invoice hadn't been paid the creditor started legal proceedings.
debtor
someone who owes money
We have 5 long-term debtors who owe us a total of $175,000.
discrepancy
a difference between two things that should be the same
While processing the invoice, John noticed a discrepancy in the number of units ordered and delivered.
dispute
an official argument or disagreement between two or more parties
The court looked into the details of the dispute over payment.
exceed
to be greater than a number, or go beyond a limit
If an order exceeds $10,000 it is eligible for a 5% discount.
external
of, or coming from the outside
There are several external bodies which regulate financial accounting.
incentives
something (often financial) that encourages a person to do something
The company pays incentives to staff to try and motivate them.
internal
of, or coming from the inside
Management accounting generally deals with internal reports.
outstanding
not yet paid, solved or done
The outstanding debt was paid and the account balance returned to zero.
oversight
a mistake made by a failure to notice something
It appears that there has been an oversight and the clerk forgot to mail in the VAT return.
refer
to send someone to a different person or place for help
I am afraid I do not have the authority to make that decision, I will have to refer you to my supervisor.
remit
to send money to someone
We have to remit all tax payable for the period by the 21st April.
supplier
a person, company or body that provides goods
As they were not happy with the quality of goods, they decided to change their supplier.
term
a period of time during which something lasts or can last
Our standard payment terms for invoices is 21 days.
timely
happening at a suitable moment
All reports must be filed in a timely manner.
vital
very important
The accounting department is vital to the success of a company.
withhold
to refuse to give, or keep back something
The company withheld payment as they were not satisfied with the quality of the goods delivered.
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