Unit 8: Vocabulary

Please study the 15 vocabulary terms from Unit 8: Financial statements. Then continue to the activities.
bank reconciliation
the process of comparing the actual state of the bank account with the bank nominal code in the accounts
After James had finished the bank reconciliation, it became clear the company had a major cash flow problem.
cash in hand
the amount of liquid equity held by an entity at a certain point of time
The accounts showed a large profit for the year, but as the company had spent a lot on new assets there was a lack of cash in hand.
cross-check
verify by comparing two sets of data
Each month the accounts supervisor cross-checks the records which were posted against the nominal code assigned.
draft
a first version
The financial director looked at the draft set of accounts and then approved them.
invoice
the written record of a payment due, which is sent to the customer before payment
The company issued a pro-forma invoice, with 14-day payment terms, when the order was confirmed.
irregularities
Defects, failures of mistakes
If the IRS finds any irregularities in your tax calculations, you can be fined.
keep track of
follow, or pay attention to (particularly in changeable situations)
Working in a multi-national accounting department, you should keep track of the exchange rate at all times.
ledger control
a process in which totals from subsidiary nominal accounts are entered into a control account to make it easier to interpret the data
The financial controller does the ledger control for the company as the first step in his management accounting.
ledgers
accounting books in which accounts were prepared
Each accounting function maintains a separate ledger.
meticulously
very careful, paying attention to every detail
The auditors meticulously studied the accounting records looking for anything suspect.
notes to the accounts
additional information added at the end of the accounts to give a full understanding of the company’s situation
The management board studied the notes to the accounts to make sure they understood the workings properly.
receipt
the written record of a payment made, which is given to the customer after payment
The company will only reimburse staff for petty cash purchases if they provide a receipt.
retain
keep in one’s possession
Mr Smith decided not to invest the profit from the last year so he retained it in his bank account.
to file
officially submit a document to a legal entity
The latest date for filling your tax return is the 31stof March, so ensure that you have it finished and sent by the 29th.
to post
enter or record (a financial transaction)
Peter was posting the previous day’s sales into the system when his manager arrived.
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