Accounting Unit 17: Vocabulary

To pass this unit, please study the 20 vocabulary words below.
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anticipate
to imagine or expect that something will happen
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Shareholders are anticipating a record dividend payment this year.
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appreciable
large or noticeable enough to have a significant effect
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The crisis has had an appreciable effect on the financial market.
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attributable to
caused by or connected to
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The company's success is attributable to the new CEO's leadership.
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bottom-line
the final line in the accounts, the net profit or loss made by a company
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The CFO is working on minimizing the effects of the scandal on the bottom-line.
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breakeven point
the figure at which neither profit or loss is made
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By calculating the cost of production, we found the breakeven point of $5.35 per item.
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budget
a plan that shows how much money you have, will have and what it will be spent on
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Corporate planners are preparing the budget for the next financial year.
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classify
to divide things into groups according to their type
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Costs are classified into two groups, direct and indirect.
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cost accounting
the process in which all costs are examined
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Most large companies use cost accounting to help save money and maximize efficiency.
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cost reduction
the process of minimizing any expenses due from direct business activity
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In times of hardship, cost reduction is essential to a company's success.
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costs incurred
any expenses due as a direct result of business activity
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By looking at costs incurred on a particular product, we can see where money can be saved.
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feasibility
the possibility that can be made, done or achieved or is reasonable
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The management accountant is looking into the feasibility of outsourcing bookkeeping.
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implement
to put into effect
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The new legislation will be implemented next year.
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matching principle
the idea that expenses should be allocated to a revenue stream where possible
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The matching principle should be followed in order to reach accurate net income figures.
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notional
existing as an idea or as an approximate amount
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I'm sorry but I cannot give you an exact figure, but the notional amount is 560,000.
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opportunity costs
the imagined loss made on not following a certain course of action instead
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We cannot afford to expand into both markets so please find out the opportunity cost of expanding into Iran instead of Iraq.
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overall
in general rather than in particular
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We need to study the overall costs and locate an area in which savings can be made.
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project
to calculate an amount or figure expected in the future based on information in the present
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The financial team projected net earnings of over $750,000, if it happens it will be a record for the company
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relative
as judged or measured in comparison with something else
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Taking the two ideas into consideration, the relative merits of the first are clear.
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successive
happening one after another
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The company has made successive losses in the past five years.
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underlying
real but not immediately visible
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Investments are made by evaluating the underlying value.
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