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Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

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Page 1: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)
Page 2: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

Dictionary of

AccountingFourth edition

Page 3: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

Specialist dictionariesDictionary of Agriculture 978 0 7136 7778 2Dictionary of Banking and Finance 978 0 7136 7739 3Dictionary of Business 978 0 7136 7918 2Dictionary of Computing 978 0 7475 6622 9Dictionary of Economics 978 0 7136 8203 8Dictionary of Environment and Ecology 978 0 7475 7201 5Dictionary of Food Science and Nutrition 978 0 7136 7784 3Dictionary of Human Resources and Personnel Management 978 0 7136 8142 0Dictionary of Information and Library Management 978 0 7136 7591 7Dictionary of Leisure, Travel and Tourism 978 0 7136 8545 9Dictionary of Marketing 978 0 7475 6621 2Dictionary of Media Studies 978 0 7136 7593 1Dictionary of Medical Terms 978 0 7136 7603 7Dictionary of Nursing 978 0 7475 6634 2Dictionary of Politics and Government 978 0 7475 7220 6Dictionary of Publishing and Printing 978 0 7136 7589 4Dictionary of Science and Technology 978 0 7475 6620 5Dictionary of Sport and Exercise Science 978 0 7136 7785 0

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Page 4: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

Dictionary of

AccountingFourth edition

S.M.H. Collin

A & C Black � London

Page 5: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)


First published in Great Britain in 1992by Peter Collin Publishing

Second edition published 2001Third edition published 2004

This fourth edition published 2007

A & C Black Publishers Ltd38 Soho Square, London W1D 3HB

© A & C Black Publishers Ltd 2007

All rights reserved. No part of this publication may be reproducedin any form or by any means without the permission of the publishers

A CIP record for this book is available from the British Library

eISBN-13: 978-1-4081-0228-2

Text Production and ProofreadingHeather Bateman, Stephen Curtis, Katy McAdam, Howard Sargeant

This book is produced using paper that is made from wood grown in managed,sustainable forests. It is natural, renewable and recyclable. The logging andmanufacturing processes conform to the environmental regulations of the

country of origin.

Text typeset by A & C BlackPrinted in Spain by GraphyCems

Page 6: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

PrefaceThis dictionary provides a basic vocabulary of terms used in accounting,from personal finance and investments to company accounts, balancesheets and stock valuations. It is ideal for students of accounting and foranyone who needs to check the meaning of an accountancy term, frompeople working in businesses who may not be professional accountants totranslators or those for whom English is an additional language.

Each headword is explained in clear, straightforward English andexamples are given to show how the word may be used in context. Thereare also quotations from newspapers and specialist magazines. Sampledocuments and financial statements are also provided.

Thanks are due to Hannah Gray and Sarah Williams for their invaluablehelp and advice during the production of this new edition.

Page 7: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

PronunciationThe following symbols have been used to show the pronunciation of the mainwords in the dictionary.

Stress has been indicated by a main stress mark ( � ) and a secondary stress mark(�). Note that these are only guides, as the stress of the word changes according toits position in the sentence.

Vowels Consonants

� back b buckɑ� harm d deadɒ stop ð otherai type d jumpaυ how f fareaiə hire � goldaυə hour h headɔ� course j yellowɔi annoy k cabe head l leaveeə fair m mixei make n nileυ go ŋ sing�� word p printi� keep r resti happy s saveə about ʃ shopi fit t takeiə near tʃ changeu annual θ theftu� pool v valueυ book w workυə tour x loch� shut measure

z zone

Page 8: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

AAAAAAA abbreviation American AccountingAssociationAAPAAAPA abbreviation Association of Author-ised Public AccountantsAARFAARF abbreviation Australian AccountingResearch FoundationAATAAT abbreviation Association of Account-ing Techniciansabacusabacus /��bəkəs/ noun a counting deviceconsisting of parallel rods strung with beads,still widely used for business and accountingin China and Japanabandonmentabandonment /ə|�b�ndənmənt/ noun anact of giving up voluntarily something thatyou own, such as an option or the right to aproperty � abandonment of a claim givingup a claim in a civil actionabatementabatement /ə|�beitmənt/ noun a reduc-tion in a payment, e.g., if a company’s orindividual’s total assets are insufficient tocover their debts or legaciesABBABB abbreviation activity-based budgetingabbreviated accountsabbreviated accounts /ə|�bri�vieitid ə|

�kaυnts/ plural noun a shortened version ofa company’s annual accounts that a small ormedium sized company can file with theRegistrar of Companies, instead of a fullversionABCABC abbreviation activity-based costingab initioab initio /��b i|�niʃiəυ/ phrase a Latinphrase meaning ‘from the beginning’ABMABM abbreviation activity-based manage-mentabnormal gainabnormal gain /�b|�nɔ�m(ə)l ��ein/noun any reduction in the volume of processloss below that set by the normal loss allow-ance. Abnormal gains are generally costedas though they were completed products.abnormal lossabnormal loss /�b|�nɔ�m(ə)l �lɒs/ nounany losses which exceed the normal lossallowance. Abnormal losses are generallycosted as though they were completed prod-ucts.

abnormal spoilageabnormal spoilage /�b|�nɔ�m(ə)l�spɔilid / noun spoilage that contributes toan abnormal lossabove parabove par /ə|�b�v �pɑ�/ adjective referringto a share with a market price higher than itsface valueabove-the-lineabove-the-line /ə|�b�v ðə �lain/ adjec-tive, adverb 1. used to describe entries in acompany’s profit and loss accounts thatappear above the line which separatesentries showing the origin of the funds thathave contributed to the profit or loss fromthose that relate to its distribution. Excep-tional and extraordinary items appear abovethe line. � Exceptional items are notedabove the line in company accounts. �below-the-line 2. relating to revenue itemsin a government budgetabridged accountsabridged accounts /ə|�brid d ə|�kaυnts/plural noun financial statements producedby a company that fall outside the require-ments stipulated in the Companies Actabsorbabsorb /əb|�zɔ�b/ verb 1. to take in a smallitem so that it forms part of a larger one � abusiness which has been absorbed by acompetitor a small business which has beenmade part of a larger one 2. to assign anoverhead to a particular cost centre in a com-pany’s production accounts so that its iden-tity becomes lost. � absorption costingabsorbed overheadabsorbed overhead /əb|�zɔ�bd�əυvəhed/ noun an overhead attached toproducts or services by means of overheadabsorption ratesabsorptionabsorption /əb|�zɔ�pʃən/ noun the proc-ess of making a smaller business part of alarger one, so that the smaller company ineffect no longer existsabsorption costingabsorption costing /əb|�zɔ�pʃən�kɒstiŋ/ noun 1. a form of costing for aproduct that includes both the direct costs ofproduction and the indirect overhead costsas well 2. an accounting practice in whichfixed and variable costs of production areabsorbed by different cost centres. Provid-ing all the products or services can be sold at

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absorption rate 2a price that covers the allocated costs, thismethod ensures that both fixed and variablecosts are recovered in full. � marginal cost-ingabsorption rateabsorption rate /əb|�zɔ�pʃən �reit/ nouna rate at which overhead costs are absorbedinto each unit of productionabstractabstract /��bstr�kt/ noun a short form ofa report or document � to make an abstractof the company accountsabusive tax shelterabusive tax shelter /ə|�bju�siv �t�ks�ʃeltə/ noun a tax shelter used illegally inorder to avoid or reduce tax paymentsAcademy of Accounting HistoriansAcademy of Accounting Historians/ə|�k�dəmi əv ə|�kaυntiŋ hi|�stɔ�riənz/noun a US organisation, founded in 1973,that promotes the study of the history ofaccountingACAUSACAUS abbreviation Association of Char-tered Accountants in the United StatesACCAACCA abbreviation Association of Char-tered Certified Accountantsaccelerateaccelerate /ək|�seləreit/ verb to reducethe amount of time before a maturity dateaccelerated cost recovery systemaccelerated cost recovery system/�k|�selrəreitid �kɒst ri |�k�vəri �sistəm/noun a system used in the United States forcalculating depreciation in a way thatreduces tax liabilityaccelerated depreciationaccelerated depreciation /ək|

�seləreitid dipri�ʃi |�eiʃ(ə)n/ noun a systemof depreciation which reduces the value ofassets at a high rate in the early years toencourage companies, as a result of taxadvantages, to invest in new equipmentaccelerationacceleration /ək|�selə|�reiʃ(ə)n/ noun thespeeding up of debt repaymentacceleration clauseacceleration clause /ək|�selə |�reiʃ(ə)n�klɔ�z/ noun US a clause in a contract thatprovides for immediate payment of the totalbalance if there is a breach of contractacceptanceacceptance /ək|�septəns/ noun 1. the actof signing a bill of exchange to show thatyou agree to pay it � to present a bill foracceptance to present a bill for payment bythe person who has accepted it 2. a billwhich has been accepted 3. the act of accept-ing an offer of new shares for which youhave appliedacceptance creditacceptance credit /ək|�septəns �kredit/noun an arrangement of credit from a bank,where the bank accepts bills of exchangedrawn on the bank by the debtor: the bankthen discounts the bills and is responsiblefor paying them when they mature. Thedebtor owes the bank for the bills but theseare covered by letters of credit.

acceptance sampling

acceptance sampling /ək|�septəns�sɑ�mpliŋ/ noun the process of testing asmall sample of a batch to see if the wholebatch is good enough to be acceptedaccepting house

accepting house /ək|�septiŋ �haυs/,acceptance house /ək|�septəns haυs/noun a firm, usually a merchant bank, whichaccepts bills of exchange at a discount, inreturn for immediate payment to the issuer,in this case the Bank of EnglandAccepting Houses Committee

Accepting Houses Committee /ək|

�septiŋ �haυziz kə|�miti/ noun the mainLondon merchant banks, which organise thelending of money with the Bank of England.They receive slightly better discount ratesfrom the Bank.acceptor

acceptor /ək|�septə/ noun a person whoaccepts a bill of exchange by signing it, thusmaking a commitment to pay it by a speci-fied dateaccident insurance

accident insurance /��ksid(ə)nt in|

�ʃυərəns/ noun insurance which will paythe insured person when an accident takesplaceaccommodation

accommodation /ə|�kɒmə|�deiʃ(ə)n/noun money lent for a short timeaccommodation billaccommodation bill /ə|�kɒmə|�deiʃ(ə)n�bil/ noun a bill of exchange where the per-son signing (the ‘drawee’) is helping anothercompany (the ‘drawer’) to raise a loanaccount

account /ə|�kaυnt/ noun 1. a record offinancial transactions over a period of time,such as money paid, received, borrowed orowed � Please send me your account or adetailed or an itemised account. 2. a struc-tured record of financial transactions thatmay be maintained as a list or in a more for-mal structured credit and debit basis 3. (in ashop) an arrangement in which a customeracquires goods and pays for them at a laterdate, usually the end of the month � to havean account or a credit account with Harrods� Put it on my account or charge it to myaccount. � They are one of our largestaccounts. 4. a period during which sharesare traded for credit, and at the end of whichthe shares bought must be paid for (NOTE:On the London Stock Exchange, there aretwenty-four accounts during the year, eachrunning usually for ten working days.) 5. acustomer who does a large amount of busi-ness with a firm and has an account with it �Smith Brothers is one of our largestaccounts. � Our sales people call on theirbest accounts twice a month.accountabilityaccountability /ə|�kaυntə|�biliti/ nounthe fact of being responsible to someone for

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3 accounting conceptsomething, e.g. the accountability of direc-tors to the shareholdersaccountableaccountable /ə|�kaυntəb(ə)l/ adjectivereferring to a person who has to explainwhat has taken place or who is responsiblefor something (NOTE: You are accountableto someone for something.)account analysisaccount analysis /ə|�kaυnt ə|�n�ləsis/noun analysis of a company’s accounts withthe aim of discerning how its activities affectits costsaccountancyaccountancy /ə|�kaυntənsi/ noun thework of an accountant � They are studyingaccountancy or They are accountancy stu-dents.accountancy bodiesaccountancy bodies /ə|�kaυntənsi�bɒdi�z/ plural noun professional institu-tions and associations for accountantsaccountancy professionaccountancy profession /ə|�kaυntənsiprə|�feʃ(ə)n/ noun the professional bodiesthat establish entry standards, organise pro-fessional examinations, and draw up ethicaland technical guidelines for accountantsaccountantaccountant /ə|�kaυntənt/ noun 1. a per-son who keeps a company’s accounts ordeals with an individual person’s tax affairs� The chief accountant of a manufacturinggroup. � The accountant has shown thatthere is a sharp variance in our labour costs.2. a person who advises a company on itsfinances � I send all my income tax queriesto my accountant. 3. a person who examinesaccountsAccountants’ International Study GroupAccountants’ International StudyGroup /ə|�kaυntənts �intən�ʃ(ə)nəl�st�di ��ru�p/ noun a body of professionalaccounting bodies from the United States,Canada, and the United Kingdom that wasestablished in 1966 to research accountingpractices in the three member countries.After publishing 20 reports, it was dis-banded in 1977 with the foundation of theInternational Federation of Accountants.accountant’s liabilityaccountant’s liability /ə|�kaυntənts�laiə|�biliti/ noun the legal liability of anaccountant who commits fraud or is held tobe negligentaccountants’ opinionaccountants’ opinion /ə|�kaυntənts ə|

�pinjən/ noun a report of the audit of a com-pany’s books, carried out by a certified pub-lic accountant (NOTE: The US term is auditopinion.)accountants’ reportaccountants’ report /ə|�kaυntənts ri |

�pɔ�t/ noun in the United Kingdom, a reportwritten by accountants that is required by theLondon Stock Exchange to be included inthe prospectus of a company seeking a list-ing on the Exchange

account codeaccount code /ə|�kaυnt kəυd/ noun anumber assigned to a particular account in anumerical accounting system, e.g., a chart ofaccountsaccount endaccount end /ə|�kaυnt �end/ noun the endof an accounting periodaccount executiveaccount executive /ə|�kaυnt i�|

�zekjυtiv/ noun 1. an employee who looksafter customers or who is the link betweencustomers and the company 2. an employeeof an organisation such as a bank, publicrelations firm or advertising agency who isresponsible for looking after particular cli-ents and handling their business with theorganisationaccount formaccount form /ə|�kaυnt fɔ�m/ noun a bal-ance sheet laid out in horizontal form. It isthe opposite of ‘report’ or ‘vertical’ form.accountingaccounting /ə|�kaυntiŋ/ noun 1. the workof recording money paid, received, bor-rowed, or owed � accounting methods �accounting procedures � an accountingmachine 2. accountancy, the work of anaccountant as a course of study

‘…applicants will be professionally quali-fied and have a degree in Commerce orAccounting’ [Australian FinancialReview]

Accounting and Finance Association of Australia and New ZealandAccounting and Finance Associa-tion of Australia and New Zealand /ə|

�kaυntiŋ ən �fain�ns ə|�səυsieiʃ(ə)n əv ɒs |

�treiliə ən nju� �zi�lənd/ noun an organisa-tion for accounting and finance academics,researchers and professionals working inAustralia and New Zealand. AbbreviationAFAANZaccounting basesaccounting bases /ə|�kaυntiŋ �beisi�z/plural noun the possible ways in whichaccounting concepts may be applied tofinancial transactions, e.g. the methods usedto depreciate assets, how intangible assets orwork in progress are dealt withaccounting changeaccounting change /ə|�kaυntiŋtʃeind / noun any of various changes thataffect a set of accounts, e.g. a change in themethod of calculating the depreciation ofassets or a change in the size, structure ornature of the companyaccounting conceptaccounting concept /ə|�kaυntiŋ�kɒnsept/ noun a general assumption onwhich accounts are prepared. The main con-cepts are: that the business is a going con-cern, that revenue and costs are noted whenthey are incurred and not when cash isreceived or paid, that the present accountsare drawn up following the same principlesas the previous accounts, that the revenue or

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accounting control 4costs are only recorded if it is certain thatthey will be incurred.accounting controlaccounting control /ə|�kaυntiŋ kən|

�trəυl/ noun procedures designed to ensurethat source data for accounts are accurateand proper, in order to prevent fraudaccounting conventionsaccounting conventions /ə|�kaυntiŋkən|�venʃ(ə)nz/ plural noun the fundamen-tal assumptions that govern the practice ofaccounting, e.g., consistency and prudence.� conceptual frameworkaccounting cycleaccounting cycle /ə|�kaυntiŋ �saik(ə)l/noun the regular process of recording, ana-lysing and reporting a company’s transac-tions for a given periodaccounting dateaccounting date /ə|�kaυntiŋ �deit/ nounthe date on which an accounting periodends, usually 31st December for annualaccounts but it can in fact be any dateAccounting DirectivesAccounting Directives /ə|�kaυntiŋ dai|

�rektivz/ plural noun a set of EU directivesissued with the aim of regulating accountingprocedures in member statesaccounting entityaccounting entity /ə|�kaυntiŋ �entəti/noun the unit for which financial statementsand accounting records are prepared, e.g., alimited company or a partnership. � report-ing entityaccounting equationaccounting equation /ə|�kaυntiŋ i|

�kwei (ə)n/ noun the basic formula thatunderpins double-entry bookkeeping. It canbe expressed most simply as ‘assets +expenses = liabilities + capital + revenue’where the debit amounts to the left of theequals sign must be equivalent to the creditamounts to the right. Also called balancesheet equationaccounting erroraccounting error /ə|�kaυntiŋ �erə/ nounany accounting inaccuracy or misrepresen-tation that is the result of error, not inten-tional fraudaccounting eventaccounting event /ə|�kaυntiŋ i |�vent/noun a transaction recorded in a business’sbooks of accountaccounting feesaccounting fees /ə|�kaυntiŋ �fi�z/ pluralnoun fees paid to an accountant for prepar-ing accounts, which are deductible againsttaxaccounting information systemaccounting information system /ə|

�kaυntiŋ �infə|�meiʃ(ə)n �sistəm/ noun asystem, usually computer-based, that proc-esses information on a company’s transac-tions for accounting purposesaccounting manualaccounting manual /ə|�kaυntiŋ�m�njuəl/ noun a handbook or set ofinstructions that set out all procedures andresponsibilities of those engaged in anentity’s accounting systems

accounting periodaccounting period /ə|�kaυntiŋ �piəriəd/noun a period of time at the end of which thefirm’s accounts are made upaccounting policiesaccounting policies /ə|�kaυntiŋ�pɒlisiz/ plural noun the accounting basesused by a company when preparing its finan-cial statementsaccounting practiceaccounting practice /ə|�kaυntiŋ�pr�ktis/ noun the way in which account-ants and auditors implement accounting pol-iciesaccounting principlesaccounting principles /ə|�kaυntiŋ�prinsip(ə)lz/ plural noun standards ofaccuracy and probity that apply to those car-rying out accounting proceduresAccounting Principles BoardAccounting Principles Board /ə|

�kaυntiŋ �prinsip(ə)lz �bɔ�d/ noun the USbody which issued Opinions that formedmuch of US Generally Accepted Account-ing Principles up to 1973 when the FinancialAccounting Standards Board (FASB) tookover that role. Abbreviation APBaccounting procedureaccounting procedure /ə|�kaυntiŋ prə|

�si�d ə/ noun an accounting method devel-oped by an individual or organisation to dealwith routine accounting tasksaccounting profitsaccounting profits /ə|�kaυntiŋ �prɒfits/plural noun the difference between revenueand the costs of productionaccounting rate of returnaccounting rate of return /ə|�kaυntiŋreit əv ri |�t��n/ noun a method of valuingshares in a company where the company’sestimated future profits are divided by therate of return required by investors. Abbrevi-ation ARRaccounting recordsaccounting records /ə|�kaυntiŋ�rekɔ�dz/ plural noun all documents inwhich accounting information is recorded,used during the preparation of financialstatementsaccounting reference dateaccounting reference date /ə|�kaυntiŋ�ref(ə)rəns �deit/ noun the last day of acompany’s accounting reference period.Abbreviation ARDaccounting reference periodaccounting reference period /ə|

�kaυntiŋ �ref(ə)rəns �piəriəd/ noun 1. theperiod for which a company makes up itsaccounts. In most, but not all, cases, theperiod is 12 months. 2. the period for whichcorporation tax is calculatedaccounting softwareaccounting software /ə|�kaυntiŋ�sɒftweə/ noun computer programs used toenter and process accounts informationaccounting standardaccounting standard /ə|�kaυntiŋ�st�ndəd/ noun an authoritative statementof how particular types of transaction andother events should be reflected in financialstatements. Compliance with accounting

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5 accumulated profitstandards will normally be necessary forfinancial statements to give a true and fairview. (NOTE: These principles are recom-mended by the Accounting StandardsBoard in the United Kingdom or by theFASB in the United States.)Accounting Standards BoardAccounting Standards Board /ə|

�kaυntiŋ �st�ndədz bɔ�d/ noun a commit-tee set up by British accounting institutionsto monitor methods used in accounting.Abbreviation ASBAccounting Standards CommitteeAccounting Standards Committee/ə|�kaυntiŋ �st�ndədz kə|�miti/ noun a UKaccounting standards issuing body whosefunctions were taken over by the ASB in1990. Abbreviation ASCaccounting systemaccounting system /ə|�kaυntiŋ�sistəm/ noun the means used by an organi-sation to produce its accounting informationaccounting technicianaccounting technician /ə|�kaυntiŋ tek|

�niʃ(ə)n/ noun a person who assists in thepreparation of accounts but who is not afully qualified accountantaccounting unitaccounting unit /ə|�kaυntiŋ �ju�nit/noun any unit which takes part in financialtransactions which are recorded in a set ofaccounts. It can be a department, a soletrader, a Plc or some other unit.account payeeaccount payee /ə|�kaυnt pei|�i�/ noun thewords printed on most UK cheques indicat-ing that the cheque can only be paid into theaccount of the person or business to whomthe cheque is written, or be cashed for a feeat an agency offering a cheque cashing serv-iceaccountsaccounts /ə|�kaυnts/ plural noun detailedrecords of a company’s financial affairsaccounts departmentaccounts department /ə|�kaυnts di|

�pɑ�tmənt/ noun a department in a com-pany which deals with money paid,received, borrowed, or owedaccounts manageraccounts manager /ə|�kaυnts�m�nid ə/ noun the manager of anaccounts departmentaccounts payableaccounts payable /ə|�kaυnts �peiəb(ə)l/plural noun money owed by a companyaccounts receivableaccounts receivable /ə|�kaυnts ri|

�si�vəb(ə)l/ plural noun money owed to acompany. Abbreviation ARaccounts receivable turnoveraccounts receivable turnover /ə|

�kaυnts ri|�si�vəb(ə)l �t��nəυvə/ noun astatistic showing on average how long cus-tomers take to pay money they owe forgoods or services receivedaccreteaccrete /ə|�kri�t/ verb 1. (of a fund) to haveinterest added to it 2. (of assets) to grow asa result of mergers, expansion or the acqui-sition of other interests

accretionaccretion /ə|�kri�ʃ(ə)n/ noun the processof adding interest to a fund over a period oftimeaccrualaccrual /ə|�kru�əl/ noun a gradual increaseby additionaccrualsaccruals /ə|�kru�əlz/ plural noun same asaccrued liabilitiesaccruals basisaccruals basis /ə|�kru�əl �beisis/, accru-als concept /ə|�kru�əlz �kɒnsept/ noun amethod of preparing accounts in which rev-enues and costs are both reported during theperiod to which they refer and not during theperiod when payments are received or madeaccrueaccrue /ə|�kru�/ verb 1. to record a finan-cial transaction in accounts when it takesplace, and not when payment is made orreceived 2. to increase and be due for pay-ment at a later date � Interest accrues fromthe beginning of the month.accrued dividendaccrued dividend /ə|�kru�d �dividend/noun a dividend earned since the last divi-dend was paidaccrued expenseaccrued expense /ə|�kru�d ik |�spens/noun an expense that has been incurredwithin a given accounting period but not yetpaidaccrued incomeaccrued income /ə|�kru�d �ink�m/ nounrevenue entered in accounts, although pay-ment has not yet been receivedaccrued interestaccrued interest /ə|�kru�d �intrəst/ nouninterest which has been earned by an inter-est-bearing investment � Accrued interest isadded quarterly.accrued liabilitiesaccrued liabilities /ə|�kru�d �laiə|

�bilitiz/ plural noun liabilities which arerecorded in an accounting period, althoughpayment has not yet been made. This refersto liabilities such as rent, electricity, etc.Also called accrualsaccrued revenueaccrued revenue /ə|�kru�d �revənju�/noun same as accrued incomeaccumulateaccumulate /ə|�kju�mjυleit/ verb to growin quantity by being added to, or to get moreof something over a period of time � Weallow dividends to accumulate in the fund.accumulated depreciationaccumulated depreciation /ə|

�kju�mjυleitid di|�pri�ʃi|�eiʃ(ə)n/ noun thetotal amount by which an asset has beendepreciated since it was purchasedaccumulated earnings taxaccumulated earnings tax /ə|

�kju�mjυleitid ���niŋz �t�ks/, accumu-lated profits tax /ə|�kju�mjυleitid �prɒfits�t�ks/ noun US a tax on earnings above aspecified limit which are unjustifiablyretained in a business to avoid paying higherpersonal income taxaccumulated profitaccumulated profit /ə|�kju�mjυleitid�prɒfit/ noun a profit which is not paid as

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accumulated reserves 6dividend but is taken over into the accountsof the following yearaccumulated reservesaccumulated reserves /ə|

�kju�mjυleitid ri|�z��vz/ plural nounreserves which a company has put aside overa period of yearsaccumulationaccumulation /ə|�kju�mjυ |�leiʃ(ə)n/noun the process of growing larger by beingadded to, or of getting more and more ofsomethingACHACH abbreviation US Automated ClearingHouseacid testacid test /��sid �test/, acid test rationoun same as liquidity ratioacquisitionacquisition /��kwi |�ziʃ(ə)n/ noun thetakeover of a company. The results and cashflows of the acquired company are broughtinto the group accounts only from the date ofacquisition: the figures for the previousperiod for the reporting entity should not beadjusted. The difference between the fairvalue of the net identifiable assets acquiredand the fair value of the purchase considera-tion is goodwill.acquisition accountingacquisition accounting /��kwi|

�ziʃ(ə)n ə |�kaυntiŋ/ noun a full consolida-tion, where the assets of a subsidiary com-pany which has been purchased are includedin the parent company’s balance sheet, andthe premium paid for the goodwill is writtenoff against the year’s earningsacross-the-boardacross-the-board /ə|�krɒs ðə �bɔ�d/adjective applying to everything or everyone� an across-the-board price increase orwage increaseactact /�kt/ noun a law passed by parliamentwhich must be obeyed by the peopleactiveactive /��ktiv/ adjective involving manytransactions or activities � an activedemand for oil shares � an active day on theStock Exchange � Computer shares are veryactive.active accountactive account /��ktiv ə|�kaυnt/ nounan account, such as a bank account or invest-ment account, which is used to deposit andwithdraw money frequentlyactive partneractive partner /��ktiv �pɑ�tnə/ noun apartner who works in a company that is apartnershipactivityactivity /�k|�tiviti/ noun something whichis done, especially something which isinvolved in creating a product or a service

‘…preliminary indications of the level ofbusiness investment and activity duringthe March quarter will provide a good pic-ture of economic activity in the year’ [Aus-tralian Financial Review]

activity-based budgetingactivity-based budgeting /�k|�tiviti�beist �b�d itiŋ/ noun the allocation ofresources to individual activities. Activity-based budgeting involves determiningwhich activities incur costs within an organ-isation, establishing the relationshipsbetween them, and then deciding how muchof the total budget should be allocated toeach activity. Abbreviation ABBactivity-based costingactivity-based costing /�k|�tivitibeist �kɒstiŋ/ noun a costing system usedto assign overhead costs to specific itemsproduced, by looking at specific cost drivers.Abbreviation ABC. � cost driver, activitydriver, resource driveractivity-based managementactivity-based management /�k|

�tiviti �beist �m�nid mənt/ noun a sys-tem of management that uses activity-basedcost information for a variety of purposesincluding cost reduction, cost modelling andcustomer profitability analysis. Abbrevia-tion ABMactivity chartactivity chart /�k|�tiviti tʃɑ�t/ noun aplan showing work which has been done,made so that it can be compared to a previ-ous plan showing how much work should bedoneactivity cost poolactivity cost pool /�k|�tiviti �kɒst �pu�l/noun a grouping of all cost elements associ-ated with an activityactivity driveractivity driver /�k|�tiviti �draivə/ a typeof cost driver which is used to quantify theactivities involved in creating a product orserviceactivity driver analysisactivity driver analysis /�k|�tiviti�draivər ə|�n�ləsis/ noun the identificationand evaluation of the activity drivers used totrace the cost of activities to cost objects. Itmay also involve selecting activity driverswith potential to contribute to the cost man-agement function with particular referenceto cost reduction.act of Godact of God /��kt əv ��ɒd/ noun some-thing you do not expect to happen and whichcannot be avoided, e.g. a storm or a flood(NOTE: Acts of God are not usually coveredby insurance policies.)actualactual /��ktʃuəl/ adjective real or correct� What is the actual cost of one unit? � Theactual figures for directors’ expenses are notshown to the shareholders.actual cash valueactual cash value /��ktʃuəl k�ʃ�v�lju�/ noun the amount of money, lessdepreciation, that it would cost to replacesomething damaged beyond repair with acomparable itemactual costactual cost /��ktʃuəl kɒst/ noun the totalcost of producing or buying an item, which

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7 adjustablemay include, e.g., its price plus the cost ofdelivery or storageactual priceactual price /��ktʃuəl �prais/ noun aprice for a commodity which is for immedi-ate deliveryactualsactuals /��ktʃuəlz/ plural noun real fig-ures � These figures are the actuals for lastyear.actuarialactuarial /��ktʃu|�eəriəl/ adjective calcu-lated by an actuary � The premiums areworked out according to actuarial calcula-tions.actuarial tablesactuarial tables /��ktʃueəriəl�teib(ə)lz/ plural noun lists showing howlong people are likely to live, used to calcu-late life assurance premiums and annuitiesactuaryactuary /��ktʃuəri/ noun a personemployed by an insurance company or otherorganisation to calculate the risk involved inan insurance, and therefore the premiumspayable by people taking out insuranceaddadd /�d/ verb to put figures together tomake a total � If you add the interest to thecapital you will get quite a large sum. �Interest is added monthly.add up /��d ��p/ phrasal verb to put severalfigures together to make a total � He madea mistake in adding up the column of fig-ures.add up to /��d ��p tυ/ phrasal verb to makea total of � The total expenditure adds up tomore than £1,000.added valueadded value /��did �v�lju�/ noun anamount added to the value of a product orservice, equal to the difference between itscost and the amount received when it is sold.Wages, taxes, etc. are deducted from theadded value to give the profit. � VATaddendaddend /��dend/ noun a number added tothe augend in an additionadditionaddition /ə|�diʃ(ə)n/ noun 1. a thing or per-son added � The management has stoppedall additions to the staff. � We are exhibitingseveral additions to our product line. � Themarketing director is the latest addition tothe board. 2. an arithmetical operation con-sisting of adding together two or more num-bers to make a sum � You don’t need a cal-culator to do simple addition.additionaladditional /ə|�diʃ(ə)nəl/ adjective extrawhich is added � additional costs � Theysent us a list of additional charges. � Someadditional clauses were added to the con-tract. � Additional duty will have to be paid.additional personal allowanceadditional personal allowance /ə|

�diʃ(ə)nəl �p��s(ə)n(ə)l ə |�laυəns/ noun atax allowance which can be claimed by asingle person who has a child of school age

living with them, formerly called the ‘sin-gle-parent allowance’additional premiumadditional premium /ə|�diʃ(ə)nəl�pri�miəm/ noun a payment made to coverextra items in an existing insuranceadditional voluntary contributionsadditional voluntary contributions/ə|�diʃ(ə)n(ə)l �vɒlənt(ə)ri �kɒntri|

�bju�ʃ(ə)nz/ plural noun extra paymentsmade voluntarily by an employee to a pen-sion scheme on top of the normal contribu-tions, up to a maximum of 15% of grossearnings. Abbreviation AVCsadequate disclosureadequate disclosure /��dikwət dis|

�kləυ ə/ noun a comprehensive presenta-tion of statistics in financial statements, suchthat they can be used to inform investmentdecisionsadjudicateadjudicate /ə|�d u�dikeit/ verb to give ajudgment between two parties in law or todecide a legal problem � to adjudicate aclaim � to adjudicate in a dispute � he wasadjudicated bankrupt he was declaredlegally bankruptadjudicationadjudication /ə|�d u�di|�keiʃ(ə)n/ nounthe act of giving a judgment or of deciding alegal problemadjudication of bankruptcyadjudication of bankruptcy /ə|

�d u�dikeiʃ(ə)n əv �b�ŋkr�ptsi/ noun alegal order making someone bankruptadjudication tribunaladjudication tribunal /ə|�d u�di|

�keiʃ(ə)n trai|�bju�n(ə)l/ noun a groupwhich adjudicates in industrial disputesadjudicatoradjudicator /ə|�d u�dikeitə/ noun 1. aperson who gives a decision on a problem �an adjudicator in an industrial dispute 2. �the Adjudicator official who examinescomplaints from individuals and businessesabout how the Inland Revenue handles theiraffairs, but does not deal with questions oftax liabilityadjustadjust /ə|�d �st/ verb to change somethingto fit new conditions � Prices are adjustedfor inflation.

‘…inflation-adjusted GNP moved up at a1.3% annual rate’ [Fortune]‘Saudi Arabia will no longer adjust its pro-duction to match short-term supply withdemand’ [Economist]‘…on a seasonally-adjusted basis, outputof trucks, electric power, steel and paperdecreased’ [Business Week]

adjustable rate mortgageadjustable rate mortgage /ə|

�d �stəb(ə)l reit �mɔ��id / noun a mort-gage where the interest rate changes accord-ing to the current market rates. AbbreviationARMadjustableadjustable rate preferred stock /ə|

�d �stəb(ə)l reit pri|�f��d �stɒk/ noun

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adjusted gross income 8preference shares on which dividends arepaid in line with the interest rate on Treasurybills. Abbreviation ARPSadjusted gross incomeadjusted gross income /ə|�d �stid�rəυs �ink�m/ noun US a person’s totalannual income less expenses, pension con-tributions, capital losses, etc., used as a basisto calculate federal income tax. Abbrevia-tion AGIadjusteradjuster /ə|�d �stə/ noun a person whocalculates losses for an insurance companyadjusting entryadjusting entry /ə|�d �stiŋ �entri/ nounan entry in accounts which is made to cor-rect a mistake in the accountsadjustmentadjustment /ə|�d �stmənt/ noun 1. anentry in accounts which does not represent areceipt or payment, but which is made tomake the accounts correct 2. a change in theexchange rates, made to correct a balance ofpayment deficitadministeradminister /əd|�ministə/ verb to organise,manage or direct the whole of an organisa-tion or part of one � She administers a largepension fund.administered priceadministered price /əd|�ministədprais/ noun US a price fixed by a manufac-turer which cannot be varied by a retailer(NOTE: The UK term is resale price mainte-nance.)administrationadministration /əd|�mini |�streiʃ(ə)n/noun 1. the action of organising, controllingor managing a company 2. an appointmentby a court of a person to manage the affairsof a companyadministration costsadministration costs /əd|�mini|

�streiʃ(ə)n �kɒsts/, administrationexpenses /əd|�mini|�streiʃ(ə)n ik|�spensiz/plural noun the costs of management, notincluding production, marketing, or distri-bution costsadministrative expensesadministrative expenses /əd|

�ministrətiv ik|�spensiz/ plural noun sameas administration costsadministrative receiveradministrative receiver /əd|

�ministrətiv ri|�si�və/ noun a personappointed by a court to administer the affairsof a companyadministrative receivershipadministrative receivership /əd|

�ministrətiv ri |�si�vəʃip/ noun the appoint-ment of an administrative receiver by adebenture holderadministratoradministrator /əd|�ministreitə/ noun 1. aperson who directs the work of otheremployees in a business � After severalyears as a college teacher, she hopes tobecome an administrator. 2. a personappointed by a court to manage the affairs ofsomeone who dies without leaving a will

ADRADR abbreviation American DepositaryReceiptad valoremad valorem /��d və|�lɔ�rəm/ adjectiveused to describe a tax or commission, e.g.,Value Added Tax, that is calculated on thevalue of the goods or services provided,rather than on their number or size � ad val-orem duty � ad valorem taxad valorem dutyad valorem duty /��d və |�lɔ�rəm �dju�ti/noun the duty calculated on the sales valueof the goodsad valorem taxad valorem tax /��d və|�lɔ�rem t�ks/noun a tax calculated according to the valueof the goods taxedadvanceadvance /əd|�vɑ�ns/ noun money paid as aloan or as a part of a payment to be madelater � She asked if she could have a cashadvance. � We paid her an advance onaccount. � Can I have an advance of $100against next month’s salary? � adjectiveearly, or taking place before something elsehappens � advance payment � Advanceholiday bookings are up on last year. � Youmust give seven days’ advance notice ofwithdrawals from the account. � verb 1. topay an amount of money to someone as aloan or as a part of a payment to be madelater � The bank advanced him $100,000against the security of his house. 2. to makesomething happen earlier � The date of theshipping has been advanced to May 10th. �The meeting with the German distributorshas been advanced from 11.00 to 9.30.advance payment guaranteeadvance payment guarantee /əd|

�vɑ�ns �peimənt ��rən|�ti�/, advance pay-ment bond /əd|�vɑ�ns �peimənt �bɒnd/noun a guarantee that enables a buyer torecover an advance payment made under acontract or order if the supplier fails to fulfilits contractual obligationsadverse balanceadverse balance /��dv��s �b�ləns/noun the deficit on an account, especially anation’s balance of payments accountadverse opinionadverse opinion /��dv��s ə|�pinjən/noun US an auditor’s report that a com-pany’s financial statement is not a fair repre-sentation of the company’s actual financialpositionadverse varianceadverse variance /��dv��s �veəriəns/noun variance which shows that the actualresult is worse than expected. Also calledunfavourable varianceadviceadvice /əd|�vais/ noun a notification tellingsomeone what has happenedadviseradviser /əd|�vaizə/, advisor noun a personwho suggests what should be done � He isconsulting the company’s legal adviser.

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9 agreedadvisoryadvisory /əd|�vaiz(ə)ri/ adjective as anadviser � She is acting in an advisorycapacity.advisory fundsadvisory funds /əd|�vaiz(ə)ri �f�ndz/plural noun funds placed with a financialinstitution to invest on behalf of a client, theinstitution investing them at its own discre-tionAFAANZAFAANZ abbreviation Accounting andFinance Association of Australia and NewZealandAFBDAFBD abbreviation Association of FuturesBrokers and Dealersaffiliatedaffiliated /ə|�filieitid/ adjective connectedwith or owned by another company � SmithsLtd is one of our affiliated companies.affiliated enterpriseaffiliated enterprise /ə|�filieitid�entəpraiz/, affiliated company /ə|

�filieitid �k�mp(ə)ni/ noun companywhich is partly owned by another (thoughless than 50%), and where the share-owningcompany exerts some management controlor has a close trading relationship with theassociate � one of our affiliated companiesaftermarketaftermarket /�ɑ�ftə|�mɑ�kit/ noun a mar-ket in new shares, which starts immediatelyafter trading in the shares beginsafter taxafter tax /�ɑ�ftər �t�ks/ adverb after taxhas been paidafter-tax profitafter-tax profit /�ɑ�ftə �t�ks �prɒfit/noun a profit after tax has been deductedage analysis of debtorsage analysis of debtors /�eid ə|

�n�ləsis əv �detəz/ noun the amount owedby debtors, classified by age of debtaged debtors analysisaged debtors analysis /�eid d �detəz ə|

�n�ləsis/, ageing schedule /�eid iŋ�ʃedju�l/ noun a list which analyses a com-pany’s debtors, showing the number of daystheir payments are outstandingagencyagency /�eid ənsi/ noun 1. an office or jobof representing another company in an area� They signed an agency agreement or anagency contract. 2. an office or businesswhich arranges things for other companiesagency bankagency bank /�eid ənsi b�ŋk/ noun abank which does not accept deposits, butacts as an agent for another, usually foreign,bankagency billagency bill /�eid ənsi bil/ noun a bill ofexchange drawn on the local branch of a for-eign bankagency brokeragency broker /�eid ənsi �brəυkə/ nouna dealer who acts as the agent for an investor,buying and selling for a commissionagency workeragency worker /�eid ənsi �w��kə/ nouna person who is employed by an agency towork for another company. He or she is

taxed as an employee of the agency, not ofthe company where he or she actuallyworks.agendaagenda /ə|�d endə/ noun a list of things tobe discussed at a meeting � The conferenceagenda or the agenda of � After two hourswe were still discussing the first item on theagenda. � We usually put finance at the topof the agenda. � The chair wants two itemsremoved from or taken off the agenda.agentagent /�eid ənt/ noun 1. a person who rep-resents a company or another person in anarea � to be the agent for BMW cars � to bethe agent for IBM 2. a person in charge of anagency � The estate agent sent me a list ofproperties for sale.agent bankagent bank /�eid ənt b�ŋk/ noun a bankwhich uses the credit card system set up byanother bankagent’s commissionagent’s commission /�eid ənts kə|

�miʃ(ə)n/ noun money, often a percentageof sales, paid to an agentage-relatedage-related /�eid ri|�leitid/ adjectiveconnected with a person’s ageage-related allowanceage-related allowance /�eid ri|�leitidə|�laυəns/ noun an extra tax allowancewhich a person over 65 may be entitled toaggregateaggregate /���ri�ət/ adjective total, witheverything added together � aggregate out-putaggregate demandaggregate demand /���ri�ət di|

�mɑ�nd/ noun the total demand for goodsand services from all sectors of the economyincluding individuals, companies and thegovernment � Economists are studying therecent fall in aggregate demand. � Asincomes have risen, so has aggregatedemand.aggregate riskaggregate risk /���ri�ət �risk/ noun therisk which a bank runs in lending to a cus-tomeraggregate supplyaggregate supply /���ri�ət sə|�plai/noun all goods and services on the market �Is aggregate supply meeting aggregatedemand?AGIAGI abbreviation US adjusted gross incomeagioagio /��d iəυ/ noun 1. a charge made forchanging money of one currency intoanother, or for changing banknotes into cash2. the difference between two values, suchas between the interest charged on loansmade by a bank and the interest paid by thebank on deposits, or the difference betweenthe values of two currenciesAGMAGM abbreviation Annual General Meetingagreedagreed /ə|��ri�d/ adjective having beenaccepted by everyone � We pay an agreed

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agreed price 10amount each month. � The agreed terms ofemployment are laid down in the contract.agreed priceagreed price /ə|��ri�d �prais/ noun a pricewhich has been accepted by both the buyerand sellerAICPAAICPA abbreviation American Institute ofCertified Public AccountantsAIMAIM abbreviation Alternative InvestmentMarketairmail transferairmail transfer /�eəmeil �tr�nsf��/noun an act of sending money from onebank to another by airmailalien corporationalien corporation /�eiliən �kɔ�pə|

�reiʃ(ə)n/ noun US a company which isincorporated in a foreign countryA listA list /�ei list/ noun a list of members of acompany at the time it is wound up who maybe liable for the company’s unpaid debtsall-in priceall-in price /�ɔ�l in �prais/ noun a pricewhich covers all items in a purchase such asgoods, delivery, tax or insuranceall-in rateall-in rate /�ɔ�l in �reit/ noun 1. a pricewhich covers all the costs connected with apurchase, such as delivery, tax and insur-ance, as well as the cost of the goods them-selves 2. a wage which includes all extrapayments such as bonuses and merit payallocateallocate /��ləkeit/ verb 1. to divide some-thing in various ways and share it out � Howare we going to allocate the available officespace? 2. to assign a whole item of cost, orof revenue, to a single cost unit, centre,account or time periodallocated costsallocated costs /��lə |�keitd kɒsts/ plu-ral noun overhead costs which have beenallocated to a specific cost centreallocationallocation /��lə|�keiʃ(ə)n/ noun the proc-ess of providing sums of money for particu-lar purposes, or a sum provided for a pur-pose � the allocation of funds to a projectallotallot /ə|�lɒt/ verb to share outallotmentallotment /ə|�lɒtmənt/ noun 1. the processof sharing out something, especially moneybetween various departments, projects orpeople � The allotment of funds to eachproject is the responsibility of the financedirector. 2. the act of giving shares in a newcompany to people who have applied forthem � share allotment � payment in full onallotmentallowallow /ə|�laυ/ verb 1. to say that someonecan do something � Junior members of staffare not allowed to use the chairman’s lift. �The company allows all members of staff totake six days’ holiday at Christmas. 2. togive � to allow 5% discount to members ofstaff 3. to agree to or accept legally � toallow a claim or an appeal

allow for /ə|�laυ fɔ�/ phrasal verb to give adiscount for something, or to add an extrasum to cover something � to allow for mon-ey paid in advance � Add on an extra 10%to allow for postage and packing.allowableallowable /ə|�laυəb(ə)l/ adjective legallyaccepted. Opposite disallowableallowable deductionsallowable deductions /ə|�laυəb(ə)l di|

�d�kʃ(ə)ns/ plural noun deductions fromincome which are allowed by the InlandRevenue, and which reduce the tax payableallowable expensesallowable expenses /ə|�laυəb(ə)l ik|

�spensiz/ plural noun business expenseswhich can be claimed against taxallowable lossesallowable losses /ə|�laυəb(ə)l �lɒsiz/plural noun losses, e.g. on the sale of assets,which are allowed to be set off against gainsallowanceallowance /ə|�laυəns/ noun 1. moneywhich is given for a special reason � a travelallowance or a travelling allowance 2. a partof an income which is not taxed � allow-ances against tax or tax allowances � per-sonal allowances (NOTE: The US term isexemption) 3. money removed in the formof a discount � an allowance for deprecia-tion � an allowance for exchange loss

‘…the compensation plan includes base,incentive and car allowance totalling$50,000+’ [Globe and Mail (Toronto)]

allowance for bad debtallowance for bad debt /ə|�laυəns fəb�d �det/ noun a provision made in a com-pany’s accounts for debts which may neverbe paidallowances against taxallowances against tax /ə|�laυənsiz ə|

��enst �t�ks/ plural noun part of someone’sincome which is not taxedall-risks policyall-risks policy /�ɔ�l �risks �pɒlisi/ nounan insurance policy which covers risks ofany kind, with no exclusionsalternative costalternative cost /ɔ�l|�t��nətiv kɒst/noun same as opportunity costAlternative Investment MarketAlternative Investment Market /ɔ�l|

�l��nətiv in |�vestmənt �mɑ�kit/ noun aLondon stock market, regulated by the Lon-don Stock Exchange, dealing in shares insmaller companies which are not listed onthe main London Stock Exchange. Abbrevi-ation AIM (NOTE: The AIM is a way in whichsmaller companies can sell shares to theinvesting public without going to theexpense of obtaining a full share listing.)alternative minimum taxalternative minimum tax /ɔ�l|�l��nətiv�miniməm �t�ks/ noun US a way of calcu-lating US income tax that is intended toensure that wealthy individuals, corpora-tions, trusts, and estates pay at least some taxregardless of deductions, but that is increas-

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11 Annual General Meetingingly targeting the middle class. Abbrevia-tion AMTamalgamateamalgamate /ə|�m�l�əmeit/ verb to jointogether with another group � The amalga-mated group includes six companies.American Accounting AssociationAmerican Accounting Association/ə|�merikən ə|�kaυntiŋ ə|�səυsieiʃ(ə)n/noun a US voluntary organisation for thosewith an interest in accounting research andbest practice, which aims to promote excel-lence in the creation, dissemination andapplication of accounting knowledge andskills. Abbreviation AAAAmerican Depositary ReceiptAmerican Depositary Receipt /ə|

�merikən di|�pɒzitri ri|�si�t/ noun a docu-ment issued by an American bank to US cit-izens, making them unregistered sharehold-ers of companies in foreign countries. Thedocument allows them to receive dividendsfrom their investments, and ADRs can them-selves be bought or sold. Abbreviation ADRAmerican Institute of Certified Public AccountantsAmerican Institute of Certified Pub-lic Accountants /ə|�merikən �institju�təv �s��tifaid �p�blik ə|�kaυntənts/ nounthe national association for certified publicaccountants in the United States. Abbrevia-tion AICPAamortisableamortisable /��mɔ�|�taizəb(ə)l/ adjectivebeing possible to amortise � The capitalcost is amortisable over a period of tenyears.amortisationamortisation /ə|�mɔ�tai |�zeiʃ(ə)n/ nounan act of amortising � amortisation of a debtamortisation periodamortisation period /ə|�mɔ�tai|

�zeiʃ(ə)n �piəriəd/ noun the length of alease, used when depreciating the value ofthe asset leasedamortiseamortise /ə|�mɔ�taiz/, amortize verb 1. torepay a loan by regular payments, most ofwhich pay off the interest on the loan at first,and then reduce the principal as the repay-ment period progresses � The capital cost isamortised over five years. 2. to depreciate orto write down the capital value of an assetover a period of time in a company’saccountsamount paid upamount paid up /ə|�maυnt peid ��p/noun an amount paid for a new issue ofshares, either the total payment or the firstinstalment, if the shares are offered withinstalment paymentsamount realisedamount realised /ə|�maυnt �ri�əlaizd/noun money received from the sale orexchange of propertyAMTAMT abbreviation alternative minimum taxanalyseanalyse /��nəlaiz/, analyze verb to exam-ine someone or something in detail � to

analyse a statement of account � to analysethe market potentialanalysisanalysis /ə|�n�ləsis/ noun a detailedexamination and report � a job analysis �market analysis � Her job is to produce aregular sales analysis. (NOTE: The plural isanalyses.)analystanalyst /��nəlist/ noun a person whoanalyses � a market analyst � a systemsanalystanalytical reviewanalytical review /��nəlitik(ə)l ri|�vju�/noun an examination of accounts from dif-ferent periods for the purpose of identifyingratios, trends and changes in balancesangelangel /�eind əl/ noun an investor in a com-pany in its early stages, often looking forreturns over a longer period of time than aventure capitalistannualannual /��njuəl/ adjective for one year �an annual statement of income � They havesix weeks’ annual leave. � The company hasan annual growth of 5%. � We get an annualbonus.

‘…real wages have risen at an annual rateof only 1% in the last two years’ [SundayTimes]‘…the remuneration package will includean attractive salary, profit sharing and acompany car together with four weeks’annual holiday’ [Times]

annual accountsannual accounts /��njuəl ə|�kaυnts/plural noun the accounts prepared at the endof a financial year � The annual accountshave been sent to the shareholders.annual depreciationannual depreciation /��njuəl di|�pri�ʃi|

�eiʃ(ə)n/ noun a reduction in the book valueof an asset at a particular rate per year. �straight line depreciationannual depreciation provisionannual depreciation provision/��njuəl di|�pri�ʃi|�eiʃ(ə)n prə|�vi (ə)n/noun an assessment of the cost of an asset’sdepreciation in a given accounting periodannual exemptionsannual exemptions /��njuəl i�|

�zempʃ(ə)nz/ plural noun the amount ofincome which is exempt from tax. For exam-ple, the first £8,500 in capital gains in anyone year is exempt from tax.Annual General MeetingAnnual General Meeting /��njuəl�d en(ə)rəl �mi�tiŋ/ noun an annual meet-ing of all shareholders of a company, whenthe company’s financial situation is pre-sented by and discussed with the directors,when the accounts for the past year areapproved and when dividends are declaredand audited. Abbreviation AGM (NOTE: TheUS term is annual meeting or annualstockholders’ meeting.)

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annual income 12annual incomeannual income /��njuəl �ink�m/ nounmoney received during a calendar yearannualisedannualised /��njuəlaizd/, annualizedadjective shown on an annual basis

‘…he believes this may have caused theeconomy to grow at an annualized rate ofalmost 5 per cent in the final quarter of lastyear’ [Investors Chronicle]

annualised percentage rateannualised percentage rate/��njuəlaizd pə|�sentid �reit/ noun ayearly percentage rate, calculated by multi-plying the monthly rate by twelve. Abbrevi-ation APR (NOTE: The annualised percent-age rate is not as accurate as the AnnualPercentage Rate (APR), which includesfees and other charges.)annuallyannually /��njuəli/ adverb each year �The figures are updated annually.annual management chargeannual management charge /��njuəl�m�nid mənt tʃɑ�d / noun a charge madeby the financial institution which is manag-ing an accountannual meetingannual meeting /��njuəl �mi�tiŋ/ nounUS same as Annual General MeetingAnnual Percentage RateAnnual Percentage Rate /��njuəl pə|

�sentid �reit/ noun a rate of interest (suchas on a hire-purchase agreement) shown onan annual compound basis, and includingfees and charges. Abbreviation APRannual reportannual report /��njuəl ri |�pɔ�t/ noun areport of a company’s financial situation atthe end of a year, sent to all the shareholdersannual returnannual return /��njuəl ri |�t��n/ noun anofficial report which a registered companyhas to make each year to the Registrar ofCompaniesannuitantannuitant /ə|�nju�itənt/ noun a personwho receives an annuityannuityannuity /ə|�nju�iti/ noun money paid eachyear to a retired person, usually in return fora lump-sum payment. The value of the annu-ity depends on how long the person lives, asit usually cannot be passed on to anotherperson. Annuities are fixed payments, andlose their value with inflation, whereas apension can be index-linked. � to buy or totake out an annuity � She has a governmentannuity or an annuity from the government.annuity certainannuity certain /ə|�nju�iti �s��tən/ nounan annuity that provides payments for a spe-cific number of years, regardless of life ordeath of the annuitantannuity contractannuity contract /ə|�nju�iti �kɒntr�kt/noun a contract under which a person is paida fixed sum regularly for lifeantedateantedate /��nti|�deit/ verb to put an ear-lier date on a document � The invoice wasantedated to January 1st.

anti-dumping dutyanti-dumping duty /��nti �d�mpiŋ�dju�ti/ noun same as countervailing dutyanti-inflationaryanti-inflationary /��nti in |

�fleiʃ(ə)n(ə)ri/ adjective restricting or try-ing to restrict inflation � anti-inflationarymeasuresanti-trustanti-trust /��nti �tr�st/ adjective attack-ing monopolies and encouraging competi-tion � anti-trust measuresanti-trust lawsanti-trust laws /��nti �tr�st �lɔ�z/, anti-trust legislation /��nti �tr�st led i|

�sleiʃ(ə)n/ plural noun laws in the UnitedStates which prevent the formation ofmonopoliesAPBAPB abbreviation 1. Accounting PrinciplesBoard 2. Auditing Practices BoardAppeals CommissionerAppeals Commissioner noun a personappointed officially to supervise the collec-tion of taxes, including income tax, capitalgains tax and corporation tax, but not VATapplicationapplication /��pli|�keiʃ(ə)n/ noun 1. theact of asking for something, usually in writ-ing, or a document in which someone asksfor something, e.g. a job � shares payableon application � She sent off six applica-tions for job or six job applications. 2. effortor diligence � She has shown great applica-tion in her work on the project.application of fundsapplication of funds /��pli|keiʃ(ə)n əv�f�ndz/ noun details of the way in whichfunds have been spent during an accountingperiodapportionapportion /ə|�pɔ�ʃ(ə)n/ verb to share outsomething, e.g. costs, funds or blame �Costs are apportioned according to pro-jected revenue.apportionmentapportionment /ə|�pɔ�ʃ(ə)nmənt/ nounthe sharing out of costsappraisalappraisal /ə|�preiz(ə)l/ noun a calculationof the value of someone or somethingappraiseappraise /ə|�preiz/ verb to assess or to cal-culate the value of something or someoneappreciateappreciate /ə|�pri�ʃieit/ verb (of currency,shares, etc.) to increase in valueappreciationappreciation /ə|�pri�ʃi|�eiʃ(ə)n/ noun 1.an increase in value. Also called capitalappreciation 2. the act of valuing some-thing highly � She was given a pay rise inappreciation of her excellent work.appropriateappropriate verb /ə|�prəυprieit/ to put asum of money aside for a special purpose �to appropriate a sum of money for a capitalprojectappropriationappropriation /ə|�prəυpri|�eiʃ(ə)n/ nounthe act of putting money aside for a specialpurpose � appropriation of funds to thereserve

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13 articles of incorporationappropriation accountappropriation account /ə|�prəυpri|

�eiʃ(ə)n ə|�kaυnt/ noun the part of a profitand loss account which shows how the profithas been dealt with, e.g., how much has beengiven to the shareholders as dividends andhow much is being put into the reservesapprovalapproval /ə|�pru�v(ə)l/ noun the act of say-ing or thinking that something is good � tosubmit a budget for approvalapproveapprove /ə|�pru�v/ verb 1. � to approve ofsomething to think something is good �The chairman approves of the new companyletter heading. � The sales staff do notapprove of interference from the accountsdivision. 2. to agree to something officially� to approve the terms of a contract � Theproposal was approved by the board.approved accountsapproved accounts /ə|�pru�vd ə|

�kaυnts/ plural noun accounts that havebeen formally accepted by a company’sboard of directorsapproved schemeapproved scheme /ə|�pru�vd �ski�m/noun a pension scheme or share purchasescheme which has been approved by theInland Revenueapproved securitiesapproved securities /ə|�pru�vd si |

�kjυəritiz/ plural noun state bonds whichcan be held by banks to form part of theirreserves (NOTE: The list of these bonds isthe ‘approved list’.)approximateapproximate /ə|�prɒksimət/ adjective notexact, but almost correct � The sales divi-sion has made an approximate forecast ofexpenditure.approximatelyapproximately /ə|�prɒksimətli/ adverbnot quite exactly, but close to the figureshown � Expenditure on marketing isapproximately 10% down on the previousquarter.approximationapproximation /ə|�prɒksi |�meiʃ(ə)n/noun a rough calculation � Each depart-ment has been asked to provide an approxi-mation of expenditure for next year. � Thefinal figure is only an approximation.APRAPR abbreviation annualised percentagerateAPRAAPRA abbreviation Australian PrudentialRegulation AuthorityARAR abbreviation accounts receivablearbitragearbitrage /�ɑ�bi |�trɑ� / noun the businessof making a profit from the difference invalue of various assets, e.g. by selling for-eign currencies or commodities on one mar-ket and buying on another at almost thesame time to profit from different exchangerates, or by buying currencies forward andselling them forward at a later date, to bene-fit from a difference in prices

arbitrage syndicatearbitrage syndicate /�ɑ�bitrɑ� �sindikət/ noun a group of people whotogether raise the capital to invest in arbi-trage dealsarbitrationarbitration /�ɑ�bi|�treiʃ(ə)n/ noun the set-tling of a dispute by an outside party agreedon by both sides � to take a dispute to arbi-tration or to go to arbitration � arbitrationin an industrial dispute � The two sidesdecided to submit the dispute to arbitrationor to refer the question to arbitration.arbitratorarbitrator /�ɑ�bitreitə/ noun a person notconcerned with a dispute who is chosen byboth sides to try to settle it � an industrialarbitrator � They refused to accept or theyrejected the arbitrator’s ruling.ARDARD abbreviation accounting referencedatearea managerarea manager /�eəriə �m�nid ə/ noun amanager who is responsible for a company’swork in a specific part of the countryarithmetic meanarithmetic mean /��riθmetik �mi�n/noun a simple average calculated by divid-ing the sum of two or more items by thenumber of itemsARMARM abbreviation adjustable rate mortgagearoundaround /ə|�raυnd/ preposition 1. approxi-mately � The office costs around £2,000 ayear to heat. � Her salary is around$85,000. 2. with a premium or discountARPSARPS abbreviation adjustable rate pre-ferred stockARRARR abbreviation accounting rate of returnarrangement feearrangement fee /ə|�reind mənt fi�/noun a charge made by a bank to a client forarranging credit facilitiesarrearsarrears /ə|�riəz/ plural noun money whichis owed, but which has not been paid at theright time � a salary with arrears effectivefrom January 1st � We are pressing the com-pany to pay arrears of interest. � You mustnot allow the mortgage payments to fall intoarrears.articlearticle /�ɑ�tik(ə)l/ noun a section of a legalagreement such as a contract or treaty � Seearticle 8 of the contract.articles of associationarticles of association /�ɑ�tik(ə)lz əvə|�səυsi|�eiʃ(ə)n/ plural noun a documentwhich lays down the rules for a companyregarding such matters as the issue of shares,the conduct of meetings and the appoint-ment of directors � This procedure is notallowed under the articles of association ofthe company. (NOTE: The US term isbylaws)articles of incorporationarticles of incorporation /�ɑ�tik(ə)lzəv in|�kɔ�pə|�reiʃ(ə)n/ plural noun US same

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articles of partnership 14as memorandum and articles of associa-tionarticles of partnershiparticles of partnership /�ɑ�tik(ə)lz əv�pɑ�tnəʃip/ plural noun same as partner-ship agreementASBASB abbreviation Accounting StandardsBoardASCASC abbreviation Accounting StandardsCommitteeA sharesA shares /�ei �ʃeəz/ plural noun ordinaryshares with limited voting rights or no vot-ing rights at allasked priceasked price /�ɑ�skt prais/ noun a price atwhich a commodity or stock is offered forsale by a seller, also called ‘offer price’ inthe UKasking priceasking price /�ɑ�skiŋ �prais/ noun a pricewhich the seller is hoping will be paid forthe item being sold � the asking price is$24,000as peras per /��z �p��/ � perassessassess /ə|�ses/ verb to calculate the valueof something or someone � to assess dam-ages at £1,000 � to assess a property for thepurposes of insuranceassessed valueassessed value /ə|�sest �v�lju�/ noun avalue that is the result of calculation bysomeone such as an auditor or investmentadvisorassessmentassessment /ə|�sesmənt/ noun a calcula-tion of value � a property assessment � atax assessmentassetasset /��set/ noun 1. something whichbelongs to a company or person, and whichhas a value � He has an excess of assets overliabilities. � Her assets are only $640 asagainst liabilities of $24,000. 2. � valuationof a company on an assets basis calculat-ing the value of a company on the basis ofthe value of its assets (as opposed to a valu-ation on an earnings or dividend yield basis)asset-backed securitiesasset-backed securities /��set b�ktsi|�kjυəritiz/ plural noun bonds securedagainst specific assetsasset backingasset backing /��set �b�kiŋ/ noun asupport for a share price provided by thevalue of the company’s assetsasset-rich companyasset-rich company /��set ritʃ�k�mp(ə)ni/ noun company with valuabletangible assets, such as property, which pro-vide firm backing for its sharesassetsassets /��sets/ plural noun all items ofproperty that contribute to the value of anorganisation, including tangible items suchas cash, stock and real estate, as well asintangible items such as goodwill

asset stripperasset stripper /��set �stripə/ noun a per-son who buys a company to sell its assetsasset strippingasset stripping /��set �stripiŋ/ noun thepractice of buying a company at a lowerprice than its asset value, and then selling itsassetsasset turnoverasset turnover /��set �t��nəυvə/ noun ameasure of a company’s efficiency that isthe ratio of sales revenue to total assetsasset turnover ratioasset turnover ratio /��set �t��nəυvə�reiʃiəυ/ noun the number of times assetsare turned over by sales during the year, cal-culated as turnover divided by total assetsless current liabilitiesasset valueasset value /��set �v�lju�/ noun thevalue of a company calculated by addingtogether all its assetsassignassign /ə|�sain/ verb 1. to give somethingto someone by means of an official legaltransfer � to assign a right to someone � toassign shares to someone 2. to give someonea job of work to do and make him or herresponsible for doing it � She was assignedthe task of checking the sales figures.assignationassignation /��si�|�neiʃ(ə)n/ noun alegal transfer � the assignation of shares tosomeone � the assignation of a patentassigneeassignee /��sai|�ni�/ noun a person whoreceives something which has been assignedto him or herassignmentassignment /ə|�sainmənt/ noun the legaltransfer of a property or right � the assign-ment of a patent or of a copyright � to signa deed of assignmentassignorassignor /��sai |�nɔ�/ noun a person whoassigns something to someoneassociateassociate /ə|�səυsiət/ noun 1. a person orcompany linked to another in a takeover bid2. a title given to a junior member of a pro-fessional organisation. Senior members areusually called ‘fellows’.associate companyassociate company /ə|�səυsiət�k�mp(ə)ni/ noun a company which ispartly owned by another companyassociated companyassociated company /ə|�səυsieitid�k�mp(ə)ni/ noun a company which ispartly owned by another company (thoughless than 50%), which exerts some manage-ment control over it or has a close tradingrelationship with it � Smith Ltd and its asso-ciated company, Jones Brothersassociate directorassociate director /ə|�səυsiət dai|

�rektə/ noun a director who attends boardmeetings, but has not been elected by theshareholdersAssociation of Accounting TechniciansAssociation of Accounting Techni-cians /ə|�səυsieiʃ(ə)n əv ə|�kaυntiŋ�tekniʃ(ə)nz/ noun an organisation which

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15 auctionrepresents accounting technicians andgrants membership to people who havepassed its examinations. Abbreviation AATAssociation of Authorised Public AccountantsAssociation of Authorised PublicAccountants /ə|�səυsieiʃ(ə)n əv�ɔ�θəraizd �p�blik ə|�kaυntənts/ noun anorganisation which represents accountantswho have been authorised by the govern-ment to work as auditors. It is a subsidiary ofthe Association of Chartered CertifiedAccountants. Abbreviation AAPAAssociation of Chartered Accountants in the United StatesAssociation of Chartered Account-ants in the United States /ə|

�səυsieiʃ(ə)n əv �tʃɑ�təd ə|�kaυntənts inði ju�|�naitid �steits/ noun an organisationrepresenting Chartered Accountants fromAustralia, Canada, England and Wales, Ire-land, New Zealand, Scotland and SouthAfrica who are based in the United States.Abbreviation ACAUSAssociation of Chartered Certified AccountantsAssociation of Chartered CertifiedAccountants /ə|�səυsieiʃ(ə)n əv�tʃɑ�təd �s��tifaid ə|�kaυntənts/ noun anorganisation whose members are certifiedaccountants. Abbreviation ACCAAssociation of Corporate TreasurersAssociation of Corporate Treasur-ers /ə|�səυsieiʃ(ə)n əv �kɔ�p(ə)rət�tre ərəz/ noun an organisation whichgroups company treasurers and awardsmembership to those who have passed itsexaminationsAssociation of Financial AdvisersAssociation of Financial Advisers /ə|

�səυsieiʃ(ə)n əv fai|�n�nʃ(ə)l əd|�vaizəz/noun a trade association that represents theinterests of independent financial advisersAssociation of Futures Brokers and DealersAssociation of Futures Brokers andDealers /ə|�səυsieiʃ(ə)n əv �fju�tʃəz�brəυkəz ən �di�ləz/ noun a self-regulatingorganisation which oversees the activities ofdealers in futures and options. AbbreviationAFBDassumable mortgageassumable mortgage /ə|�sju�məb(ə)l�mɔ��id / noun US a mortgage which canbe passed to another personassuranceassurance /ə|�ʃυərəns/ noun a type ofinsurance which pays compensation for anevent that is certain to happen at some time,especially for the death of the insured per-son. Also called life assurance, life insur-anceassureassure /ə|�ʃυə/ verb to insure someone, orsomeone’s life, so that the insurance com-pany will pay compensation when that per-son dies � He has paid the premiums to havehis wife’s life assured. (NOTE: Assure,assurer and assurance are used in Britainfor insurance policies relating to somethingwhich will certainly happen (such as death);

for other types of policy (i.e. those againstsomething which may or may not happen,such as an accident) use the terms insure,insurer and insurance. In the US insure,insurer and insurance are used for both.)assurerassurer /ə|�ʃυərə/, assuror noun aninsurer or a company which insuresASTAST abbreviation Automated Screen Trad-ingat callat call /��t �kɔ�l/ adverb immediatelyavailableATMATM abbreviation automated teller machine

‘Swiss banks are issuing new cards whichwill allow cash withdrawals from ATMsin Belgium, Denmark, Spain, France, theNetherlands, Portugal and Germany’[Banking Technology]‘…the major supermarket operator is plan-ning a new type of bank that would earn90% of its revenue from fees on automatedteller machine transactions. With the banksetting up ATMs at 7,000 group outletsnationwide, it would have a branch net-work at least 20 times larger than any ofthe major banks’ [Nikkei Weekly]

at parat par /��t �pɑ�/ phrase equal to the facevalueat sightat sight /��t �sait/ adverb immediately,when it is presented � a bill of exchangepayable at sightattachmentattachment /ə|�t�tʃmənt/ noun the act ofholding a debtor’s property to prevent itbeing sold until debts are paidattachment of earningsattachment of earnings /ə|�t�tʃməntəv ���niŋz/ noun a process in which a courtuses its legal authority to obtain directlyfrom a person’s salary money that the personowes to the courtattachment of earnings orderattachment of earnings order /ə|

�t�tʃmənt əv ���niŋz �ɔ�də/ noun a courtorder to make an employer pay part of anemployee’s salary to the court to pay offdebtsattachment orderattachment order /ə|�t�tʃmənt �ɔ�də/noun an order from a court to hold a debtor’sproperty to prevent it being sold until debtsare paidattestattest /ə|�test/ noun a formal statement,e.g. a statement by an auditor that a com-pany’s financial position is correctly statedin the company’s accountsattributable profitattributable profit /ə|�tribjυtəb(ə)l�prɒfit/ noun a profit which can be shown tocome from a particular area of the com-pany’s operationsauctionauction /�ɔ�kʃən/ noun 1. a method of sell-ing goods where people who want to buycompete with each other by saying how

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auctioneer 16much they will offer for something, and theitem is sold to the person who makes thehighest offer � Their furniture will be soldin the auction rooms next week. � Theyannounced a sale by auction of the fire-dam-aged stock. � The equipment was sold byauction or at auction. � to put an item upfor auction to offer an item for sale at anauction 2. a method of selling governmentstock, where all stock on issue will be sold,and the highest price offered will beaccepted, as opposed to tendering � verb tosell something at an auction � The factorywas closed and the machinery was auc-tioned off.auctioneerauctioneer /�ɔ�kʃə|�niə/ noun the personwho conducts an auctionauditaudit /�ɔ�dit/ noun the examination of thebooks and accounts of a company � to carryout the annual audit � verb to examine thebooks and accounts of a company � MessrsSmith have been asked to audit the accounts.� The books have not yet been audited. � toaudit the stock to carry out a stock control,in front of witnesses, so as to establish theexact quantities and value of stockAudit CommissionAudit Commission /�ɔ�dit kə |�miʃ(ə)n/noun British government agency whoseduty is to audit the accounts of ministriesand other government departments (NOTE:The US term is General AccountingOffice.)audit committeeaudit committee /�ɔ�dit kə|�miti/ noun acommittee of a company’s board of directorsthat monitors finances, on which companyexecutives cannot sitaudit cycleaudit cycle /�ɔ�dit �saik(ə)l/ noun theinterval between auditsaudited accountsaudited accounts /�ɔ�ditid ə|�kaυnts/plural noun a set of accounts that have beenthoroughly scrutinised, checked andapproved by a team of auditorsaudit feeaudit fee /�ɔ�dit fi�/ noun a fee charged byan auditor for auditing a company’saccountsauditingauditing /�ɔ�ditiŋ/ noun the work ofexamining the books and accounts of a com-panyAuditing Practices BoardAuditing Practices Board /�ɔ�ditiŋ�pr�ktisiz �bɔ�d/ noun a body responsiblefor developing and issuing professionalauditing standards in the United Kingdomand the Republic of Ireland. The APB wascreated in 1991 following an agreementbetween the six members of the Consulta-tive Committee of Accountancy Bodies.Abbreviation APB

auditing standardsauditing standards /�ɔ�ditiŋ�st�ndədz/ plural noun guidelines, estab-lished by an authoritative body, that auditorsshould follow when examining financialstatements and other informationaudit opinionaudit opinion /�ɔ�dit ə|�pinjən/ noun USa report of the audit of a company’s books,carried out by a certified public accountant(NOTE: The UK term is accountant’s opin-ion.)auditorauditor /�ɔ�ditə/ noun a person who auditsauditors’ feesauditors’ fees /�ɔ�ditəz fi�z/ plural nounfees paid to a company’s auditors, which areapproved by the shareholders at an AGMauditors’ qualificationauditors’ qualification /�ɔ�ditəz�kwɒlifi |�keiʃ(ə)n/ noun a form of words ina report from the auditors of a company’saccounts, stating that in their opinion theaccounts are not a true reflection of the com-pany’s financial position. Also called quali-fication of accountsauditors’ reportauditors’ report /�ɔ�ditəz ri |�pɔ�t/ nouna report written by a company’s auditorsafter they have examined the accounts of thecompany. Also called audit report (NOTE: Ifthe auditors are satisfied, the report certi-fies that, in their opinion, the accounts givea ‘true and fair’ view of the company’s finan-cial position.)audit programmeaudit programme /�ɔ�dit �prəυ�r�m/noun a listing of all the steps to be takenwhen auditing a company’s accountsaudit regulationaudit regulation /�ɔ�dit �re�jυleiʃ(ə)n/noun the regulating of auditors by govern-mentaudit reportaudit report /�ɔ�dit ri |�pɔ�t/ noun same asauditors’ reportaudit riskaudit risk /�ɔ�dit risk/ noun the risk thatauditors may give an inappropriate auditopinion on financial statementsaudit trailaudit trail /�ɔ�dit treil/ noun the recordsthat show all the stages of a transaction, e.g.a purchase, a sale or a customer complaint,in the order in which they happened (NOTE:An audit trail can be a useful tool for prob-lem-solving and, in financial markets, maybe used to ensure that the dealers havebeen fair and accurate in their proceed-ings.)

‘…provides real-time fax monitoring andaudit trail to safeguard information pri-vacy and accuracy’ [Forbes]

augendaugend /�ɔ��end/ noun the number towhich another number (the addend) is addedto produce the sumAustralian Accounting Research FoundationAustralian Accounting ResearchFoundation /ɒ|�streiliən ə|�kaυntiŋ ri|

�s��tʃ faυn|�deiʃ(ə)n/ noun the authority

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17 awardthat has regulated auditing and assurancematters in Australia since 2004Australian Prudential Regulation Authority

Australian Prudential RegulationAuthority /ɒ|�streiliən prυ|�denʃ(ə)l�re�jυ|�leiʃ(ə)n ɔ�|�θɒrəti/ noun a federalgovernment body responsible for ensuringthat financial institutions are able to meettheir commitments. Abbreviation APRAAUT

AUT abbreviation authorised unit trustauthorise

authorise /�ɔ�θəraiz/, authorize verb 1.to give permission for something to be done� to authorise payment of £10,000 2. to givesomeone the authority to do something � toauthorise someone to act on the company’sbehalfauthorised capital

authorised capital /�ɔ�θəraizd�k�pit(ə)l/ noun the amount of capitalwhich a company is allowed to have, asstated in the memorandum of association(NOTE: The US equivalent is authorizedstock.)authorised share capital

authorised share capital /�ɔ�θəraizd�ʃeə �k�pit(ə)l/ noun the amount of capitalthat a company is authorised to issue in theform of sharesauthorised unit trust

authorised unit trust /�ɔ�θəraizd�ju�nit tr�st/ noun the official name for aunit trust which has to be managed accord-ing to EU directives. Abbreviation AUTAutomated Clearing House

Automated Clearing House/�ɔ�təmeitid �kliəriŋ haυs/ noun US anorganisation set up by the federal authoritiesto settle transactions carried out by compu-ter, such as automatic mortgage paymentsand trade payments between businesses.Abbreviation ACHAutomated Screen Trading

Automated Screen Trading/�ɔ�təmeitid �skri�n �treidiŋ/ noun a sys-tem where securities are bought, sold andmatched automatically by computer. Abbre-viation ASTautomated teller machine

automated teller machine/�ɔ�təmeitid �telə mə|�ʃi�n/ noun US sameas cash dispenser

availabilityavailability /ə|�veilə|�biliti/ noun the factof being easy to obtainAVCsAVCs abbreviation additional voluntarycontributionsaverageaverage /��v(ə)rid / noun 1. a numbercalculated by adding several figures togetherand dividing by the number of figures added� the average for the last three months orthe last three months’ average � sales aver-age or average of sales 2. the sharing of thecost of damage or loss of a ship between theinsurers and the owners � adjective equal tothe average of a set of figures � the averageincrease in salaries � The average cost perunit is too high. � The average sales per rep-resentative are rising. � verb to work out anaverage figure for something

‘…a share with an average rating mightyield 5 per cent and have a PER of about10’ [Investors Chronicle]‘…the average price per kilogram for thisseason to the end of April has been 300cents’ [Australian Financial Review]

average out /��v(ə)rid �aυt/ phrasal verbto come to a figure as an average � It aver-ages out at 10% per annum. � Sales in-creases have averaged out at 15%.average cost of capitalaverage cost of capital /��vərid kɒstəv �k�pit(ə)l/ noun an average figure forthe cost of borrowing or the capital raised byselling sharesaverage due dateaverage due date /��v(ə)rid �dju��deit/ noun the average date when severaldifferent payments fall dueaverage income per capitaaverage income per capita/��v(ə)rid �ink�m pə �k�pitə/ noun sameas per capita incomeavoidanceavoidance /ə|�vɔid(ə)ns/ noun the act oftrying not to do something or not to paysomething � tax avoidanceawardaward /ə|�wɔ�d/ noun something given by acourt, tribunal or other official body, espe-cially when settling a dispute or claim � anaward by an industrial tribunal � The arbi-trator’s award was set aside on appeal. �The latest pay award has been announced.

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BBAABAA abbreviation British AccountingAssociationbaby bondsbaby bonds /�beibi bɒndz/ plural nounUS bonds in small denominations which thesmall investor can afford to buybackback /b�k/ adjective referring to the past �a back payment � verb to help someone,especially financially � The bank is backingus to the tune of $10,000. � She is lookingfor someone to back her project.

‘…the businesses we back range fromstart-up ventures to established companiesin need of further capital for expansion’[Times]

back out /�b�k �aυt/ phrasal verb to stopbeing part of a deal or an agreement � Thebank backed out of the contract. � We hadto cancel the project when our German part-ners backed out.backdatebackdate /b�k|�deit/ verb to put an earlierdate on a document such as a cheque or aninvoice � Backdate your invoice to April 1st.back dutyback duty /�b�k �dju�ti/ noun a duty ortax which is due but has not yet been paidback-end loadedback-end loaded /�b�k end �ləυdid/adjective referring to an insurance or invest-ment scheme where commission is chargedwhen the investor withdraws his or hermoney from the scheme. Compare front-end loadedbackerbacker /�b�kə/ noun a person or companythat backs someone � One of the company’sbackers has withdrawn.backflush costingbackflush costing /�b�kfl�ʃ �kɒstiŋ/noun a method of costing that links cost tooutput producedbackingbacking /�b�kiŋ/ noun support, especiallyfinancial support � She has the backing ofan Australian bank. � The company willsucceed only if it has sufficient backing. �She gave her backing to the proposal.

‘…the company has received the backingof a number of oil companies who are will-ing to pay for the results of the survey’[Lloyd’s List]

back interestback interest /�b�k �intrəst/ noun inter-est which has not yet been paidbacklogbacklog /�b�klɒ�/ noun an amount ofwork, or of items such as orders or letters,which should have been dealt with earlierbut is still waiting to be done � The ware-house is trying to cope with a backlog oforders. � We’re finding it hard to cope withthe backlog of paperwork.backlog depreciationbacklog depreciation /�b�klɒ� di|

�pri�ʃieiʃ(ə)n/ noun depreciation which hasnot been provided in previous accountsbecause of an increase in the value of theasset during the current year due to inflationback paymentback payment /�b�k �peimənt/ noun 1.a payment which is due but has not yet beenpaid 2. the act of paying money which isowedback rentback rent /�b�k rent/ noun a rent due butnot paid � The company owes £100,000 inback rent.back taxback tax /�b�k t�ks/ noun tax which isowedback-to-back loanback-to-back loan /�b�k tə �b�k �ləυn/noun a loan from one company to another inone currency arranged against a loan fromthe second company to the first in anothercurrency. Also called parallel loan (NOTE:Back-to-back loans are used by interna-tional companies to get round exchangecontrols.)backup withholdingbackup withholding /�b�k�p wiθ|

�həυldiŋ/ noun US a tax retained frominvestment income so that the IRS is sure ofgetting the tax duebackwardationbackwardation /�b�kwə|�deiʃ(ə)n/ noun1. a penalty paid by the seller when postpon-ing delivery of shares to the buyer 2. a situ-ation in which the cash price is higher thanthe forward price. Opposite forwardationbackward integrationbackward integration /�b�kwəd �inti|

��reiʃ(ə)n/ noun a process of expansion inwhich a business which deals with the laterstages in the production and sale of a prod-uct acquires a business that deals with anearlier stage in the same process, usually a

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19 balancesupplier � Buying up rubber plantations ispart of the tyre company’s backward inte-gration policy. Also called vertical integra-tionbackwards spreadingbackwards spreading /�b�kwədz�sprediŋ/ noun the practice of dividingincome earned in a particular accountingyear into portions which are allocated to sev-eral previous accounting periodsBACSBACS /b�ks/ noun a company set up toorganise the payment of direct debits, stand-ing orders, salary cheques and other pay-ments generated by computers. It operatesfor all the British clearing banks and severalbuilding societies; it forms part of APACS.Compare CHAPSbad chequebad cheque /�b�d �tʃek/ noun a chequewhich is returned to the drawer for any rea-sonbad debtbad debt /�b�d �det/ noun a debt whichwill not be paid, usually because the debtorhas gone out of business, and which has tobe written off in the accounts � The com-pany has written off $30,000 in bad debts.bad debt expensebad debt expense /�b�d �det ik |�spens/noun an estimate of uncollectible debtswhich is charged to the profit and lossaccountbad debt provisionbad debt provision /�b�d �det prə|

�vi (ə)n/ noun money put aside in accountsto cover potential bad debtsbad debts recoveredbad debts recovered /�b�d dets ri|

�k�vəd/ plural noun money which was for-merly classified as bad debts and thereforewritten off, but that has since been recoveredeither wholly or in partbadges of tradebadges of trade /�b�d iz əv �treid/ plu-ral noun a collection of principles estab-lished by case law to determine whether ornot a person is trading. If so, he or she istaxed under different rules from non-traders.bail out /�beil �aυt/ phrasal verb to rescue acompany which is in financial difficulties

‘…the government has decided to bail outthe bank which has suffered losses to theextent that its capital has been wiped out’[South China Morning Post]

bailmentbailment /�beilmənt/ noun a transfer ofgoods by someone (the ‘bailor’) to someone(the ‘bailee’) who then holds them until theyhave to be returned to the bailor (NOTE:Putting jewels in a bank’s safe deposit boxis an example of bailment.)balancebalance /�b�ləns/ noun 1. the amountwhich has to be put in one of the columns ofan account to make the total debits and cred-its equal � balance brought down or for-ward the closing balance of the previous

period used as the opening balance of thecurrent period � balance carried down orforward the closing balance of the currentperiod 2. the rest of an amount owed � Youcan pay £100 deposit and the balance within60 days. � verb 1. to be equal, i.e. the assetsowned must always equal the total liabilitiesplus capital 2. to calculate the amountneeded to make the two sides of an accountequal � I have finished balancing theaccounts for March. 3. to plan a budget sothat expenditure and income are equal � Thepresident is planning for a balanced budget.balance off /�b�ləns �ɒf/ verb to add upand enter the totals for both sides of an ac-count at the end of an accounting period inorder to determine the balancebalanced budget

balanced budget /�b�lənst �b�d it/noun a budget where expenditure andincome are equalbalanced scorecard

balanced scorecard /�b�lənst�skɔ�kɑ�d/ noun a system of measurementand assessment that uses a variety of indica-tors, particularly customer relations, internalefficiency, financial performance and inno-vation, to find out how well an organisationis doing in its attempts to achieve its mainobjectivesbalance of payments

balance of payments /�b�ləns əv�peimənts/ noun a comparison betweentotal receipts and payments arising from acountry’s international trade in goods, serv-ices and financial transactions. AbbreviationBOP � balance of payments capitalaccount items in a country’s balance of pay-ments which refer to capital investmentsmade in or by other countries � balance ofpayments current account record ofimports and exports of goods and servicesand the flows of money between countriesarising from investments � long-term bal-ance of payments record of movements ofcapital relating to overseas investments andthe purchase of companies overseasbalance of payments deficit

balance of payments deficit /�b�lənsəv �peimənts �defisit/ noun a situation inwhich a country imports more than itexportsbalance of payments surplus

balance of payments surplus/�b�ləns əv �peimənts �s��pləs/ noun a sit-uation in which a country exports more thanit importsbalance

balance of retained earnings/�b�ləns əv ri|�teind ���niŋz/ noun statis-tics that show fluctuations in the level ofincome retained for reinvestment during anaccounting period

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balance sheet 20balance sheetbalance sheet /�b�ləns ʃi�t/ noun astatement of the financial position of a com-pany at a particular time, such as the end ofthe financial year or the end of a quarter,showing the company’s assets and liabilities� Our accountant has prepared the balancesheet for the first half-year. � The companybalance sheet for the last financial yearshows a worse position than for the previousyear. � The company balance sheet for 1984shows a substantial loss.

COMMENT: The balance sheet shows thestate of a company’s finances at a certaindate. The profit and loss account shows themovements which have taken place sincethe end of the previous accounting period. Abalance sheet must balance, with the basicequation that assets (i.e. what the companyowns, including money owed to the compa-ny) must equal liabilities (i.e. what the com-pany owes to its creditors) plus capital (i.e.what it owes to its shareholders). A balancesheet can be drawn up either in the horizon-tal form, with (in the UK) liabilities and capitalon the left-hand side of the page (in the USA,it is the reverse) or in the vertical form, withassets at the top of the page, followed by li-abilities, and capital at the bottom. Most areusually drawn up in the vertical format, asopposed to the more old-fashioned horizon-tal style.

balance sheet asset valuebalance sheet asset value /�b�lənsʃi�t ��set �v�lju�/ noun the value of a com-pany calculated by adding together all itsassetsbalance sheet auditbalance sheet audit /�b�ləns ʃi�t�ɔ�dit/ noun a limited audit of the items on acompany’s balance sheet in order to confirmthat it complies with the relevant standardsand requirementsbalance sheet datebalance sheet date /�b�ləns ʃi�t �deit/noun the date (usually the end of a financialor accounting year) when a balance sheet isdrawn upbalance sheet equationbalance sheet equation /�b�ləns ʃi�t i|

�kwei (ə)n/ noun the basis upon which allaccounts are prepared, that assets = liabili-ties + assetsbalance sheet totalbalance sheet total /�b�ləns ʃi�t�təυt(ə)l/ noun in the United Kingdom, thetotal of assets shown at the bottom of a bal-ance sheet and used to classify a companyaccording to sizebalancing itembalancing item /�b�lənsiŋ �aitəm/, bal-ancing figure /�b�lənsiŋ �fi�ə/ noun anitem introduced into a balance sheet to makethe two sides balanceballoonballoon /bə|�lu�n/ noun a loan where thelast repayment is larger than the othersballoon mortgageballoon mortgage /bə|�lu�n �mɔ��id /noun a mortgage in which the final payment

(called a ‘balloon payment’) is larger thanthe othersBALOBALO noun a French government publica-tion that includes financial statements ofpublic companies. Full form Bulletin desAnnonces Légales Obligatoiresbankbank /b�ŋk/ noun a business which holdsmoney for its clients, lends money at inter-est, and trades generally in money � theFirst National Bank � the Royal Bank ofScotland � She put all her earnings into thebank. � I have had a letter from my banktelling me my account is overdrawn. � verbto deposit money into a bank or to have anaccount with a bank � He banked the chequeas soon as he received it. � I bank at or withBarclays.bankablebankable /�b�ŋkəb(ə)l/ adjective accept-able by a bank as security for a loanbankable paperbankable paper /�b�ŋkəb(ə)l �peipə/noun a document which a bank will acceptas security for a loanbank accountbank account /�b�ŋk ə|�kaυnt/ noun anaccount which a customer has with a bank,where the customer can deposit and with-draw money � to open a bank account � toclose a bank account � How much money doyou have in your bank account? � If you letthe balance in your bank account fall below$1,000, you have to pay bank charges.bank advancebank advance /�b�ŋk əd|�vɑ�ns/ nounsame as bank loan � She asked for a bankadvance to start her business.bank balancebank balance /�b�ŋk �b�ləns/ noun thestate of a bank account at any particular time� Our bank balance went into the red lastmonth.bank base ratebank base rate /�b�ŋk �beis �reit/ nouna basic rate of interest, on which the actualrate a bank charges on loans to its customersis calculated. Also called base ratebank billbank bill /�b�ŋk bil/ noun 1. a bill ofexchange by one bank telling another bank,usually in another country, to pay money tosomeone 2. same as banker’s bill 3. USsame as banknotebank bookbank book /�b�ŋk bυk/ noun a bookgiven by a bank or building society whichshows money which you deposit or with-draw from your savings account or buildingsociety account. Also called passbookbank borrowingsbank borrowings /�b�ŋk �bɒrəυiŋz/plural noun money borrowed from banksbank cardbank card /�b�ŋk kɑ�d/ noun a creditcard or debit card issued to a customer by abank for use instead of cash when buyinggoods or services (NOTE: There are interna-tionally recognised rules that govern the

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21 bank reconciliationauthorisation of the use of bank cards andthe clearing and settlement of transactionsin which they are used.)bank certificatebank certificate /�b�ŋk sə|�tifikət/ nouna document, often requested during an audit,that is signed by a bank official and confirmsthe balances due or from a company on aspecific datebank chargebank charge /�b�ŋk tʃɑ�d / noun sameas service chargebank confirmationbank confirmation /�b�ŋk�kɒnfəmeiʃ(ə)n/ noun verification of acompany’s balances requested by an auditorfrom a bankbank creditbank credit /�b�ŋk �kredit/ noun loansor overdrafts from a bank to a customerbank depositsbank deposits /�b�ŋk di |�pɒzits/ pluralnoun all money placed in banks by private orcorporate customersbank draftbank draft /�b�ŋk drɑ�ft/ noun an orderby one bank telling another bank, usually inanother country, to pay money to someonebankerbanker /�b�ŋkə/ noun 1. a person who isin an important position in a bank 2. a bank� the company’s banker is Barclaysbanker’s acceptancebanker’s acceptance /�b�ŋkəz ək|

�septəns/ noun a bill of exchange guaran-teed by a bankBankers’ Automated Clearing ServicesBankers’ Automated Clearing Serv-ices /�b�ŋkəz �ɔ�təmeitid �kliəriŋ�s��visiz/ plural noun full form of BACSbanker’s billbanker’s bill /�b�ŋkəz bil/ noun an orderby one bank telling another bank, usually inanother country, to pay money to someone.Also called bank billbanker’s credit cardbanker’s credit card /�b�ŋkəz �kredit�kɑ�d/ noun a credit card issued by a bank,as opposed to cards issued by stores. Typicalsuch cards are Visa, Egg or MasterCard.banker’s draftbanker’s draft /�b�ŋkəz �drɑ�ft/ noun adraft payable by a bank in cash on presenta-tion. Abbreviation B/Dbanker’s lienbanker’s lien /�b�ŋkəz �li�n/ noun theright of a bank to hold some property of acustomer as security against payment of adebtbanker’s orderbanker’s order /�b�ŋkəz �ɔ�də/ noun anorder written by a customer asking a bank tomake a regular payment � He pays his sub-scription by banker’s order.banker’s referencebanker’s reference /�b�ŋkəz�ref(ə)rəns/ noun a written report issued bya bank regarding a particular customer’screditworthinessbank girobank giro /�b�ŋk �d airəυ/ noun amethod used by clearing banks to transfermoney rapidly from one account to another

bank holidaybank holiday /�b�ŋk �hɒlidei/ noun aweekday which is a public holiday when thebanks are closed � New Year’s Day is a bankholiday. � Are we paid for bank holidays inthis job?bank identification numberbank identification number /�b�ŋk�aidentifi|�keiʃ(ə)n �n�mbə/ noun an inter-nationally organised six-digit number whichidentifies a bank for charge card purposes.Abbreviation BINbankingbanking /�b�ŋkiŋ/ noun the business ofbanks � He is studying banking. � She hasgone into banking.banking accountbanking account /�b�ŋkiŋ ə |�kaυnt/noun US an account which a customer haswith a bankbanking covenantsbanking covenants /�b�ŋkiŋ�k�vənənts/ plural noun a set of conditionsimposed by a bank when it lends an institu-tion a large amount of moneyBanking OmbudsmanBanking Ombudsman /�b�ŋkiŋ�ɒmbυdzmən/ noun an official whose dutyis to investigate complaints by members ofthe public against banksbanking productsbanking products /�b�ŋkiŋ �prɒd�kts/plural noun goods and services produced bybanks for customers, e.g. statements, directdebitsbank loanbank loan /�b�ŋk ləυn/ noun a loan madeby a bank to a customer, usually against thesecurity of a property or asset � She askedfor a bank loan to start her business. Alsocalled bank advancebank managerbank manager /�b�ŋk �m�nid ə/ nounthe person in charge of a branch of a bank �They asked their bank manager for a loan.bank mandatebank mandate /�b�ŋk �m�ndeit/ noun awritten order to a bank, asking it to open anaccount and allow someone to sign chequeson behalf of the account holder, and givingspecimen signatures and relevant informa-tionbanknotebanknote /�b�ŋk nəυt/ noun 1. a piece ofprinted paper money � a counterfeit £20banknote (NOTE: The US term is bill.) 2. USa non-interest bearing note, issued by a Fed-eral Reserve Bank, which can be used ascashBank of EnglandBank of England /�b�ŋk əv �iŋ�lənd/noun the UK central bank, owned by thestate, which, together with the Treasury, reg-ulates the nation’s financesbank reconciliationbank reconciliation /�b�ŋk �rekənsili|

�eiʃ(ə)n/ noun the act of making sure thatthe bank statements agree with the com-pany’s ledgers

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bank reserves 22bank reservesbank reserves /�b�ŋk ri|�z��vz/ pluralnoun cash and securities held by a bank tocover depositsbank returnbank return /�b�ŋk ri |�t��n/ noun a regu-lar report from a bank on its financial posi-tionbankruptbankrupt /�b�ŋkr�pt/ noun, adjective (aperson) who has been declared by a courtnot to be capable of paying his or her debtsand whose affairs are put into the hands of areceiver � a bankrupt property developer �She was adjudicated or declared bankrupt.� He went bankrupt after two years in busi-ness. � verb to make someone becomebankrupt � The recession bankrupted myfather.bankruptcybankruptcy /�b�ŋkr�ptsi/ noun the stateof being bankrupt � The recession hascaused thousands of bankruptcies. (NOTE:The plural is bankruptcies.)bankruptcy orderbankruptcy order /�b�ŋkr�ptsi �ɔ�də/noun same as declaration of bankruptcybankruptcy petitionbankruptcy petition /�b�ŋkr�ptsi pə |

�tiʃ(ə)n/ noun an application to a court ask-ing for an order making someone bankruptbankruptcy proceedingsbankruptcy proceedings/�b�ŋkr�ptsi prə|�si�diŋz/ plural noun acourt case to make someone bankruptbank statementbank statement /�b�ŋk �steitmənt/noun a written statement from a bank show-ing the balance of an account at a specificdatebank syndicatebank syndicate /�b�ŋk �sindikət/ nouna group of major international banks whichgroup together to underwrite a very largeloanbank transferbank transfer /�b�ŋk �tr�nsf��/ noun anact of moving money from a bank account toanother accountbargainbargain /�bɑ��in/ noun an agreement onthe price of something � to strike a bargainor to make a bargain � verb to try to reachagreement about something, especially aprice, usually with each person or groupinvolved putting forward suggestions oroffers which are discussed until a compro-mise is arrived at � You will have to bargainwith the dealer if you want a discount. �They spent two hours bargaining about orover the price. (NOTE: You bargain withsomeone over or about or for something.)barterbarter /�bɑ�tə/ noun a system in whichgoods are exchanged for other goods and notsold for money

‘…under the barter agreements, Nigeriawill export 175,000 barrels a day of crudeoil in exchange for trucks, food, planes andchemicals’ [Wall Street Journal]

barteringbartering /�bɑ�təriŋ/ noun the act ofexchanging goods for other goods and notfor moneybasebase /beis/ noun 1. the lowest or first posi-tion � Turnover increased by 200%, butstarted from a low base. 2. a place where acompany has its main office or factory, or aplace where a business person’s office islocated � The company has its base in Lon-don and branches in all the European coun-tries. � She has an office in Madrid whichshe uses as a base while travelling in South-ern Europe. � verb � to base something onsomething to calculate something usingsomething as your starting point or basicmaterial for the calculation � We based ourcalculations on the forecast turnover. �based on calculating from � based on lastyear’s figures � based on population fore-casts

‘…the base lending rate, or prime rate, isthe rate at which banks lend to their topcorporate borrowers’ [Wall Street Jour-nal]‘…other investments include a large stakein the Chicago-based insurance company’[Lloyd’s List]

base currencybase currency /�beis �k�rənsi/ noun acurrency against which exchange rates ofother currencies are quotedbase periodbase period /�beis �piəriəd/ noun US 1.a period against which comparisons aremade 2. the time that an employee mustwork before becoming eligible for stateunemployment insurance benefits �Because she had not worked for the baseperiod, she had to rely on the support of herfamily when she lost her job. � The new gov-ernment shortened the base period, in orderto increase social service spending.base ratebase rate /�beis reit/ noun same as bankbase ratebase-weighted indexbase-weighted index /�beis �weitid�indeks/ noun an index which is weightedaccording to the base yearbase yearbase year /�beis jiə/ noun the first year ofan index, against which changes occurringin later years are measuredbasicbasic /�beisik/ adjective normalbasic balancebasic balance /�beisik �b�ləns/ nounthe balance of current account and long-term capital accounts in a country’s balanceof paymentsbasic commoditiesbasic commodities /�beisik kə|

�mɒditiz/ plural noun ordinary farm pro-duce, produced in large quantities, e.g. corn,rice or sugar

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23 below-the-linebasic discountbasic discount /�beisik �diskaυnt/ nouna normal discount without extra percentages� Our basic discount is 20%, but we offer5% extra for rapid settlement.basic earnings per sharebasic earnings per share /�beisik���niŋz pə �ʃeə/ noun a figure that shows aninvestor how much of a company’s profitbelongs to each sharebasic paybasic pay /�beisik �pei/ noun a normalsalary without extra payments. Also calledbasic salary, basic wagebasic productbasic product /�beisik �prɒd�kt/ nounthe main product made from a raw materialbasic rate taxbasic rate tax /�beisik reit �t�ks/ nounthe lowest rate of income taxbasic salarybasic salary /�beisik �s�ləri/, basicwage noun same as basic paybasisbasis /�beisis/ noun 1. a point or numberfrom which calculations are made � Weforecast the turnover on the basis of a 6%price increase. (NOTE: The plural is bases.)2. the general terms of agreement or generalprinciples on which something is decided ordone � This document should form the basisfor an agreement. � We have three peopleworking on a freelance basis. (NOTE: Theplural is bases.) � on a short-term or long-term basis for a short or long period � Hehas been appointed on a short-term basis.basis of accountingbasis of accounting /�beisis əv ə|

�kaυntiŋ/ noun any of various methods ofrecognising income and expenditure in thepreparation of accountsbasis of apportionmentbasis of apportionment /�beisis əv ə|

�pɔ�ʃənmənt/ noun a way in which com-mon overhead costs are shared among vari-ous cost centresbasis of assessmentbasis of assessment /�beisis əv ə|

�sesmənt/ noun a method of deciding inwhich year financial transactions should beassessed for taxationbasis periodbasis period /�beisis �piəriəd/ noun theperiod during which transactions occur,used for the purpose of deciding in whichthey should be assessed for taxationbasis pointbasis point /�beisis pɔint/ noun one hun-dredth of a percentage point (0.01%), thebasic unit used in measuring market move-ments or interest ratesbasis swapbasis swap /�beisis swɒp/ noun theexchange of two financial instruments, eachwith a variable interest calculated on a dif-ferent ratebasket of currenciesbasket of currencies /�bɑ�skit əv�k�rənsiz/ noun same as currency basketbatchbatch /b�tʃ/ noun 1. a group of itemswhich are made at one time � This batch ofshoes has the serial number 25–02. 2. a

group of documents which are processed atthe same time � Today’s batch of invoices isready to be mailed. � The factory is workingon yesterday’s batch of orders. � Theaccountant signed a batch of cheques. � Wedeal with the orders in batches of fifty at atime. � verb to put items together in groups� to batch invoices or chequesbatch costingbatch costing /�b�tʃ �kɒstiŋ/ noun amethod of calculating the price of one itemas part of a batch of items made at the sametimebatch-level activitiesbatch-level activities /�b�tʃ �lev(ə)l�k|�tivitiz/ plural noun business activitiesthat vary as output variesb/db/d abbreviation brought downB/DB/D abbreviation banker’s draftbearbear /beə/ verb 1. to give interest � govern-ment bonds which bear 5% interest 2. tohave something, especially to have some-thing written on it � an envelope whichbears a London postmark � a letter bearingyesterday’s date � The cheque bears the sig-nature of the company secretary. � Theshare certificate bears his name. 3. to paycosts � The costs of the exhibition will beborne by the company. � The company borethe legal costs of both parties. (NOTE: bear-ing – bore – has borne)bearerbearer /�beərə/ noun a person who holds acheque or certificatebearer bondbearer bond /�beərə bɒnd/, bearersecurity /�beərə si|�k�υəriti/ noun a bondwhich is payable to the bearer and does nothave a name written on itbeginning inventorybeginning inventory /bi|��iniŋ�invənt(ə)ri/ noun US same as openingstockbehavioural accountingbehavioural accounting /bi |�heivjərələ|�kaυntiŋ/ noun an approach to the study ofaccounting that emphasises the psychologi-cal and social aspects of the profession inaddition to the more technical areasbelow-the-linebelow-the-line /bi |�ləυ ðə �lain/ adjec-tive, adverb used to describe entries in acompany’s profit and loss account that showhow the profit is distributed, or where thefunds to finance the loss originate. � above-the-line 1below-the-linebelow-the-line expenditure /bi|�ləυ ðəlain ik|�spenditʃə/ noun 1. payments whichdo not arise from a company’s usual activi-ties, e.g. redundancy payments 2. extraordi-nary items which are shown in the profit andloss account below net profit after taxation,as opposed to exceptional items which areincluded in the figure for profit before taxa-tion

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benchmark 24benchmarkbenchmark /�bentʃmɑ�k/ noun a point orlevel which is important, and can be used asa reference when making evaluations orassessmentsbenchmark accounting policybenchmark accounting policy/�bentʃmɑ�k ə|�kaυntiŋ �pɒlisi/ noun oneof a choice of two possible policies withinan International Accounting Standard. Theother policy is marked as an ‘allowed alter-native’, although there is no indication ofpreference.benchmarkingbenchmarking /�bentʃmɑ�kiŋ/ noun thepractice of measuring the performance of acompany against the performance of othercompanies in the same sector. Benchmark-ing is also used widely in the informationtechnology sector to measure the perform-ance of computer-based information sys-tems.beneficial interestbeneficial interest /�benifiʃ(ə)l�intrəst/ noun a situation where someone isallowed to occupy or receive rent from ahouse without owning itbeneficial occupierbeneficial occupier /�benifiʃ(ə)l�ɒkjυpaiə/ noun a person who occupies aproperty but does not own it fullybeneficiarybeneficiary /�beni|�fiʃəri/ noun a personwho gains money from something � thebeneficiaries of a willbenefitbenefit /�benifit/ verb 1. to make better orto improve � A fall in inflation benefits theexchange rate. 2. � to benefit from or bysomething to be improved by something, togain more money because of something �Exports have benefited from the fall in theexchange rate. � The employees have bene-fited from the profit-sharing scheme.

‘…the retail sector will also benefit fromthe expected influx of tourists’ [AustralianFinancial Review]

benefit-cost analysisbenefit-cost analysis /�benifit �kɒst ə |

�n�lisis/ noun same as cost-benefit analy-sisbenefit in kindbenefit in kind /�benifit in �kaind/ nouna benefit other than money received by anemployee as part of his or her total compen-sation package, e.g. a company car or privatehealth insurance. Such benefits are usuallysubject to tax.Benford’s LawBenford’s Law /�benfədz lɔ�/ noun a lawdiscovered by Dr Benford in 1938, whichshows that in sets of random numbers, it ismore likely that the set will begin with thenumber 1 than with any other numberBEPBEP abbreviation break-even pointbequeathbequeath /bi|�kwi�ð/ verb to leave prop-erty, money, etc. (but not freehold land) tosomeone in a will

bequestbequest /bi|�kwest/ noun something suchas property or money (but not freeholdland), given to someone in a will � He madeseveral bequests to his staff.best practicebest practice /�best �pr�ktis/ noun themost effective and efficient way to do some-thing or to achieve a particular aim (NOTE: Inbusiness, best practice is often determinedby benchmarking, that is by comparing themethod one organisation uses to carry outa task with the methods used by other sim-ilar organisations and determining whichmethod is most efficient and effective.)

‘For the past 25 years, managers have beentaught that the best practice for valuingassets…is to use a discounted-cash-flow(DCF) methodology.’[Harvard Business Review]

b/fb/f abbreviation brought forwardBFHBFH /�bi� ef �aitʃ/ noun in Germany, thesupreme court for issues concerning taxa-tion. Full form Bundesfinanzhofbidbid /bid/ noun 1. an offer to buy somethingat a specific price. � takeover bid � to makea bid for something to offer to buy some-thing � We made a bid for the house. � Thecompany made a bid for its rival. � to makea cash bid to offer to pay cash for something� to put in or enter a bid for something tooffer to buy something, usually in writing 2.an offer to sell something or do a piece ofwork at a specific price � She made the low-est bid for the job. � verb to offer to buy �to bid for something (at an auction) to offerto buy something � he bid £1,000 for thejewels he offered to pay £1,000 for the jew-elsbidderbidder /�bidə/ noun a person who makes abid, usually at an auction � Several biddersmade offers for the house.biddingbidding /�bidiŋ/ noun the act of makingoffers to buy, usually at an auction � thebidding started at £1,000 the first and low-est bid was £1,000 � the bidding stoppedat £250,000 the last bid, i.e. the successfulbid, was for £250,000 � the auctioneerstarted the bidding at £100 the auctioneersuggested that the first bid should be £100bid marketbid market /�bid �mɑ�kit/ noun a marketwhere there are more bids to buy than offersto sell. Opposite offered marketbid-offer pricebid-offer price /�bid �ɒfə prais/ noun aprice charged by unit trusts to buyers andsellers of units, based on the bid-offer spreadbid-offer spreadbid-offer spread /�bid �ɒfə spred/ nounthe difference between buying and sellingprices (i.e. between the bid and offer prices)

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25 blind trustbid price

bid price /�bid prais/ noun a price atwhich investors sell shares or units in a unittrust (NOTE: The opposite, i.e. the buyingprice, is called the offer price; the differ-ence between the two is the spread.)bid rate

bid rate /�bid reit/ noun a rate of interestoffered on depositsbig business

big business /�bi� �biznis/ noun verylarge commercial firmsBig Four

Big Four /�bi� �fɔ�/ noun 1. the four largeBritish commercial banks: Barclays, Lloyd-sTSB, HSB and Natwest, now joined by sev-eral former building societies that havebecome banks 2. the four largest interna-tional accounting companies: Pricewater-houseCoopers, Deloitte Touche Tohmatsu,Ernst & Young and KPMG 3. the four larg-est Japanese securities houses: Daiwa,Nikko, Nomura and Yamaichibilateral clearing

bilateral clearing /bai |�l�t(ə)rəl�kliəriŋ/ noun the system of annual settle-ments of accounts between some countries,where accounts are settled by the centralbanksbilateral credit

bilateral credit /bai|�l�t(ə)rəl �kredit/noun credit allowed by banks to other banksin a clearing system, to cover the periodwhile cheques are being clearedbill

bill /bil/ noun 1. a written list of charges tobe paid � The bill is made out to Smith Ltd� The sales assistant wrote out the bill. �Does the bill include VAT? 2. a list ofcharges in a restaurant � Can I have the billplease? � The bill comes to £20 includingservice. � Does the bill include service?Same as check 3. a written paper promisingto pay money 4. US same as banknote � a$5 bill 5. a draft of a new law which will bediscussed in Parliament � verb to present abill to someone so that it can be paid � Theplumbers billed us for the repairs.bill broker

bill broker /�bil �brəυkə/ noun a discounthouse, a firm which buys and sells bills ofexchange for a feebilling

billing /�biliŋ/ noun the work of writinginvoices or billsbillion

billion /�biljən/ noun one thousand million(NOTE: In the US, it has always meant onethousand million, but in UK English it for-merly meant one million million, and it is stillsometimes used with this meaning. Withfigures it is usually written bn: $5bn say‘five billion dollars’.)

‘…gross wool receipts for the selling sea-son to end June 30 appear likely to top $2billion’ [Australian Financial Review]

‘…at its last traded price the bank was cap-italized at around $1.05 billion’ [SouthChina Morning Post]

bill of exchangebill of exchange /�bil əv iks |�tʃeind /noun a document, signed by the personauthorising it, which tells another person ora financial institution to pay money uncon-ditionally to a named person on a specificdate (NOTE: Bills of exchange are usuallyused for payments in foreign currency.)bill of ladingbill of lading /�bil əv �leidiŋ/ noun a doc-ument listing goods that have been shipped,sent by the transporter to the seller andentered in the seller’s accounts as moneyowed but not yet paid, and therefore as anassetbill of materialsbill of materials /�bil əv mə|�tiəriəlz/noun a document setting out the materialsand parts required to make a productbill of salebill of sale /�bil əv �seil/ noun a documentwhich the seller gives to the buyer to showthat the sale has taken placebills payablebills payable /�bilz �peiəb(ə)l/ pluralnoun bills, especially bills of exchange,which a company will have to pay to itscreditors. Abbreviation B/Pbills receivablebills receivable /�bilz ri|�si�vəb(ə)l/ plu-ral noun bills, especially bills of exchange,which are due to be paid by a company’sdebtors. Abbreviation B/RBINBIN abbreviation bank identificationnumberbinderbinder /�baində/ noun US a temporaryagreement for insurance sent before theinsurance policy is issued (NOTE: The UKterm is cover note.)black economyblack economy /�bl�k i |�kɒnəmi/ noungoods and services which are paid for incash, and therefore not declared for tax.Also called hidden economy, paralleleconomy, shadow economyblack marketblack market /�bl�k �mɑ�kit/ noun thebuying and selling of goods or currency in away which is not allowed by law � There isa flourishing black market in spare parts forcars.blank chequeblank cheque /�bl�ŋk �tʃek/ noun acheque with the amount of money and thepayee left blank, but signed by the drawerblanket lienblanket lien /�bl�ŋkit �li�n/ noun US alien on a person’s property, including per-sonal effectsblind entryblind entry /�blaind �entri/ noun a book-keeping entry that simply records a debit orcredit but not other essential informationblind trustblind trust /�blaind �tr�st/ noun a trust setup to run a person’s affairs without thedetails of any transaction being known to the

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blocked account 26person concerned (NOTE: Blind trusts are setup by politicians to avoid potential conflictsof interest.)blocked accountblocked account /�blɒkt ə|�kaυnt/ nouna bank account which cannot be used, usu-ally because a government has forbidden itsuseblocked currencyblocked currency /�blɒkt �k�rənsi/noun a currency which cannot be taken outof a country because of governmentexchange controlsblocked fundsblocked funds /�blɒkt �f�ndz/ pluralnoun money that cannot be transferred fromone place to another, usually because ofexchange controls imposed by the govern-ment of the country in which the funds areheldblock tradingblock trading /�blɒk �treidiŋ/ noun trad-ing in very large numbers of sharesBlue BookBlue Book /�blu� �bυk/ noun an annualpublication of national statistics of personalincomes and spending patternsblue chipblue chip /�blu� tʃip/ noun a very safeinvestment, a risk-free share in a good com-panyBlue listBlue list /�blu� list/ noun US a daily list ofmunicipal bonds and their ratings, issued byStandard & Poor’sblue sky lawsblue sky laws /�blu� �skai �lɔ�z/ pluralnoun US state laws to protect investorsagainst fraudulent traders in securitiesboardboard /bɔ�d/ noun 1. same as board ofdirectors � He sits on the board as a repre-sentative of the bank. � Two directors wereremoved from the board at the AGM. 2. agroup of people who run an organisation,trust or society 3. � on board on a ship,plane or train � verb to go on to a ship, planeor train � Customs officials boarded the shipin the harbour.

‘CEOs, with their wealth of practical expe-rience, are in great demand and can pickand choose the boards they want to serveon’ [Duns Business Month]

Board for Actuarial StandardsBoard for Actuarial Standards /�bɔ�dfər ��ktʃu |�eəriəl �st�ndədz/ noun a UKauthority with responsibility for overseeingthe actuarial profession and setting actuarialstandardsboard meetingboard meeting /�bɔ�d �mi�tiŋ/ noun ameeting of the directors of a companyBoard of Customs and ExciseBoard of Customs and Excise /�bɔ�dəv �k�stəmz ənd �eksaiz/ noun the rulingbody of the Customs and Exciseboard of directorsboard of directors /�bɔ�d əv dai|

�rektəz/ noun 1. a group of directors electedby the shareholders to run a company � Thebank has two representatives on the board of

directors. 2. US a group of people elected bythe shareholders to draw up company policyand to appoint the president and other exec-utive officers who are responsible for man-aging the company

‘…a proxy is the written authorization aninvestor sends to a stockholder meetingconveying his vote on a corporate resolu-tion or the election of a company’s boardof directors’ [Barrons]

bona fidebona fide /�bəυnə �faidi/ adjective trust-worthy, which can be trustedbondbond /bɒnd/ noun 1. a contract documentpromising to repay money borrowed by acompany or by the government on a specificdate, and paying interest at regular intervals2. � goods (held) in bond goods held bycustoms until duty has been paid � entry ofgoods under bond bringing goods into acountry in bond � to take goods out ofbond to pay duty on goods so that they canbe released by customs 3. a form of insur-ance fund which is linked to a unit trust, butwhere there is no yield because the incomeis automatically added to the fundbond discountbond discount /�bɒnd �diskaυnt/ nounthe difference between the face value of abond and the lower price at which it is issuedbondedbonded /�bɒndid/ adjective held in bondbonded warehousebonded warehouse /�bɒndid�weəhaυs/ noun a warehouse where goodsare stored until excise duty has been paidbond fundbond fund /�bɒnd f�nd/ noun a unit trustin which investments are made in the formof bondsbondholderbondholder /�bɒnd|�həυldə/ noun a per-son who holds government bondsbond indenturebond indenture /�bɒnd in|�dentʃə/ nouna document that details the terms of a bondbondisedbondised /�bɒndaizd/, bondized adjec-tive referring to an insurance fund linked toa unit trustbond marketbond market /�bɒnd �mɑ�kit/ noun amarket in which government or municipalbonds are tradedbond premiumbond premium /�bɒnd �pri�miəm/ nounthe difference between the face value of abond and a higher price at which it is issuedbond-washingbond-washing /�bɒnd �wɒʃiŋ/ noun theact of selling securities cum dividend andbuying them back later ex dividend, or sell-ing US Treasury bonds with the interest cou-pon, and buying them back ex coupon, so asto reduce taxbond yieldbond yield /�bɒnd ji�ld/ noun incomeproduced by a bond, shown as a percentageof its purchase price

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27 borrowingsbonusbonus /�bəυnəs/ noun an extra payment inaddition to a normal paymentbonus issuebonus issue /�bəυnəs �iʃu�/ noun a scripissue or capitalisation issue, in which a com-pany transfers money from reserves to sharecapital and issues free extra shares to theshareholders. The value of the companyremains the same, and the total market valueof shareholders’ shares remains the same,the market price being adjusted to accountfor the new shares. Also called share split(NOTE: The US term is stock split.)bonus sharebonus share /�bəυnəs ʃeə/ noun an extrashare given to an existing shareholderbookbook /bυk/ noun 1. a set of sheets of paperattached together � a company’s books thefinancial records of a company 2. a state-ment of a dealer’s exposure to the market,i.e. the amount which he or she is due to payor has borrowed � to make a book to havea list of shares which he or she is prepared tobuy or sell on behalf of clientsbook inventorybook inventory /�bυk �invənt(ə)ri/ nounthe number of stock items recorded inaccounts, which is verified by a physicalcountbookkeeperbookkeeper /�bυk|�ki�pə/ noun a personwho keeps the financial records of a com-pany or an organisationbookkeepingbookkeeping /�bυk|�ki�piŋ/ noun thework of keeping the financial records of acompany or an organisationbookkeeping barterbookkeeping barter /�bυkki�piŋ�bɑ�tə/ noun the direct exchange of goodsbetween two parties without the use ofmoney as a medium, but using monetarymeasures to record the transactionbookkeeping transactionbookkeeping transaction /�bυkki�piŋtr�n|�z�kʃən/ noun a transaction whichinvolves changes to a company’s books ofaccounts, but does not alter the value of thecompany in any way, e.g. the issue of bonussharesbook of accountbook of account /�bυk əv ə |�kaυnt/noun an account book, a book which recordsfinancial transactionsbook of prime entrybook of prime entry /�bυk əv �praim�entri/, book of original entry noun achronological record of a business’s transac-tions arranged according to type, e.g., cashor sales. The books are then used to generateentries in a double-entry bookkeeping sys-tem.book salesbook sales /�bυk seilz/ plural noun salesas recorded in the sales bookbook valuebook value /�bυk �v�lju�/ noun the valueof an asset as recorded in the company’s bal-ance sheet

book value per sharebook value per share /�bυk �v�lju� pə�ʃeə/ noun a company’s own assessment ofthe value of its shares, which may differ con-siderably from the market valueboomboom /bu�m/ noun a time when sales, pro-duction or business activity are increasing �a period of economic boom � the boom ofthe 1990sboomingbooming /�bu�miŋ/ adjective expandingor becoming prosperous � a booming indus-try or company � Technology is a boomingsector of the economy.boostboost /bu�st/ noun help given to increasesomething � This publicity will give sales aboost. � The government hopes to give aboost to industrial development. � verb tomake something increase � We expect ourpublicity campaign to boost sales by 25%. �The company hopes to boost its marketshare. � Incentive schemes are boostingproduction.

‘…the company expects to boost turnoverthis year to FFr 16bn from FFr 13.6bn lastyear’ [Financial Times]

BOPBOP abbreviation balance of paymentsborder tax adjustmentborder tax adjustment /�bɔ�də t�ks ə|

�d �stmənt/ noun a deduction of indirecttax paid on goods being exported or imposi-tion of local indirect tax on goods beingimportedborrowborrow /�bɒrəυ/ verb 1. to take moneyfrom someone for a time, possibly payinginterest for it, and repaying it at the end ofthe period � She borrowed £1,000 from thebank. � The company had to borrow heavilyto repay its debts. � They borrowed £25,000against the security of the factory. 2. to buyat spot prices and sell forward at the sametimeborrowerborrower /�bɒrəυə/ noun a person whoborrows � Borrowers from the bank pay12% interest.borrowingborrowing /�bɒrəυiŋ/ noun the act of bor-rowing money � The new factory wasfinanced by bank borrowing.

‘…we tend to think of building societies ashaving the best borrowing rates and indeedmany do offer excellent terms’ [FinancialTimes]

borrowing costsborrowing costs /�bɒrəυiŋ kɒsts/ pluralnoun the interest and other charges paid onmoney borrowedborrowing powerborrowing power /�bɒrəυiŋ �paυə/noun the amount of money which a com-pany can borrowborrowingsborrowings /�bɒrəυiŋz/ plural nounmoney borrowed � The company’s borrow-ings have doubled.

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bottleneck 28bottleneckbottleneck /�bɒt(ə)lnek/ noun a situationwhich occurs when one section of an opera-tion cannot cope with the amount of work ithas to do, which slows down the later stagesof the operation and business activity in gen-eral � a bottleneck in the supply system �There are serious bottlenecks in the produc-tion line.bottleneck activitybottleneck activity /�bɒt(ə)lnek �k|

�tiviti/ noun any business activity for whichthe work involved equals or exceeds theincome generatedbottombottom /�bɒtəm/ verb to reach the lowestpoint � the market has bottomed out themarket has reached the lowest point anddoes not seem likely to fall furtherbottom linebottom line /�bɒtəm �lain/ noun 1. thelast line on a balance sheet indicating profitor loss � the boss is interested only in thebottom line he is only interested in the finalprofit 2. the final decision on a matter � Thebottom line was that the work had to com-pleted within budget.bottom-up budgetingbottom-up budgeting /�bɒtəm ��p�b�d itiŋ/ noun same as participativebudgetingbought day bookbought day book /�bɔ�t �dei �bυk/ nouna book used to record purchases made oncreditbought ledgerbought ledger /�bɔ�t �led ə/ noun a bookin which purchases are recordedbought ledger clerkbought ledger clerk /�bɔ�t �led ə�klɑ�k/ noun an office employee who dealswith the bought ledger or the sales ledgerbouncebounce /baυns/ verb (of a cheque) to bereturned by the bank to the person who hastried to cash it, because there is not enoughmoney in the payer’s account to pay it � Shepaid for the car with a cheque that bounced.B/PB/P abbreviation bills payableB/RB/R abbreviation bills receivablebracketbracket /�br�kit/ noun a group of items orpeople taken together � she is in the top taxbracket she pays the highest level of taxbranch accountingbranch accounting /�brɑ�ntʃ ə|

�kaυntiŋ/ noun the fact of operating sepa-rate accounting systems for each departmentof an organisationbranch accountsbranch accounts /�brɑ�ntʃ ə|�kaυnts/plural noun accounts showing transactionsbelonging to the branches of a large organi-sation, i.e., between a branch and otherbranches or its head office, or other compa-nies outside the organisationbreachbreach /bri�tʃ/ noun a failure to carry outthe terms of an agreement

breach of contractbreach of contract /�bri�tʃ əv�kɒntr�kt/ noun the failure to do some-thing which has been agreed in a contractbreach of trustbreach of trust /�bri�tʃ əv �tr�st/ noun asituation where a person does not act cor-rectly or honestly when people expect himor her tobreakbreak /breik/ noun 1. a pause betweenperiods of work � She keyboarded for twohours without a break. 2. a sharp fall in shareprices � verb 1. to fail to carry out the dutiesof a contract � The company has broken thecontract or the agreement by selling at alower price. 2. to cancel a contract � Thecompany is hoping to be able to break thecontract. (NOTE: [all verb senses] breaking– broke – has broken)break down /�breik �daυn/ phrasal verb 1.to stop working because of mechanical fail-ure � The fax machine has broken down. 2.to stop � Negotiations broke down after sixhours. 3. to show all the items in a total listof costs or expenditure � We broke the ex-penditure down into fixed and variablecosts.break even /�breik �i�v(ə)n/ verb to bal-ance costs and receipts, so as to make nei-ther a profit nor a loss � Last year thecompany only just broke even. � We brokeeven in our first two months of trading.break up /�breik ��p/ phrasal verb to splitsomething large into small sections � Thecompany was broken up and separate divi-sions sold off.breakagesbreakages /�breikid iz/ plural nounbreaking of items � Customers are expectedto pay for breakages.breakdownbreakdown /�breikdaυn/ noun 1. an actof stopping working because of mechanicalfailure � We cannot communicate with ourNigerian office because of the breakdown ofthe telephone lines. 2. an act of stoppingtalking � a breakdown in wage negotiations3. an act of showing details item by item �Give me a breakdown of investment costs.break-evenbreak-even /�breik �i�v(ə)n/ noun a situa-tion where there is neither a profit nor a lossbreak-even analysisbreak-even analysis /�breik �i�v(ə)n ə|

�n�ləsis/ noun 1. the analysis of fixed andvariable costs and sales that determines atwhat level of production the break-evenpoint will be reached � The break-evenanalysis showed that the company will onlybreak even if it sells at least 1,000 bicycles amonth. 2. a method of showing the point atwhich a company’s income from sales willbe equal to its production costs so that it nei-ther makes a profit nor makes a loss (NOTE:

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29 budget accountBreak-even analysis is usually shown in theform of a chart and can be used to helpcompanies make decisions, set prices fortheir products, and work out the effects ofchanges in production or sales volume ontheir costs and profits.)break-even chartbreak-even chart /�breik �i�v(ə)n tʃɑ�t/noun a chart showing the point at which acompany breaks even as the intersectionbetween a line plotting total revenue and aline plotting total costbreak-even pointbreak-even point /�breik |�i�v(ə)n �pɔint/noun the point or level of financial activityat which expenditure equals income, or thevalue of an investment equals its cost so thatthe result is neither a profit nor a loss.Abbreviation BEPbreak-even salesbreak-even sales /�breik �i�v(ə)n �seilz/plural noun a level of sales that neither gen-erates profit nor incurs lossbreak-outbreak-out /�breik aυt/ noun a movementof a share price above or below its previoustrading levelbreak-up valuebreak-up value /�breik �p �v�lju�/ noun1. the value of the material of a fixed asset �What would the break-up value of our oldmachinery be? 2. the value of various partsof a company taken separatelybribebribe /braib/ noun money given secretlyand usually illegally to someone in authorityto get them to help � The minister was dis-missed for taking a bribe.bricks-and-mortarbricks-and-mortar /�briks ən �mɔ�tə/adjective referring to the fixed assets of acompany, especially its buildingsbridge financebridge finance /�brid �fain�ns/ nounloans to cover short-term needsbridging loanbridging loan /�brid iŋ ləυn/ noun 1. ashort-term loan to help someone buy a newhouse when the old one has not yet been sold2. a short-term loan made to a company, e.g.to help in a cash-flow crisis or to fund com-pany restructuring (NOTE: [all senses] TheUS term is bridge loan.)bring down /�briŋ �daυn/ phrasal verb toreduce � Petrol companies have broughtdown the price of oil.bring forward /�briŋ �fɔ�wəd/ phrasal verb1. to make something take place earlier � tobring forward the date of repayment � Thedate of the next meeting has been broughtforward to March. 2. to take an account bal-ance from the end of the previous period asthe starting point for the current period �Balance brought forward: £365.15bring in /�briŋ �in/ phrasal verb to earn anamount of interest � The shares bring in asmall amount.

British Accounting AssociationBritish Accounting Association/�britiʃ ə |�kaυntiŋ ə|�səυsieiʃ(ə)n/ anorganisation whose aim is to promoteaccounting education and research in theUnited Kingdom. F. Abbreviation BAAbrokerbroker /�brəυkə/ noun a dealer who acts asa middleman between a buyer and a sellerbrokeragebrokerage /�brəυkərid / noun 1. same asbroker’s commission 2. same as brokingbrokerage firmbrokerage firm /�brəυkərid f��m/, bro-kerage house /�brəυkərid haυs/ noun afirm which buys and sells shares for clientsbroker-dealerbroker-dealer /�brəυkə �di�lə/ noun adealer who buys shares and holds them forresale, and also deals on behalf of investorclientsbroker’s commissionbroker’s commission /�brəυkəz kə|

�miʃ(ə)n/ noun the payment to a broker fora deal which he or she has carried out. Alsocalled brokerage (NOTE: Formerly, the com-mission charged by brokers on the LondonStock Exchange was fixed, but since 1986,commissions have been variable.)brokingbroking /�brəυkiŋ/ noun the business ofdealing in stocks and sharesbrought downbrought down /�brɔ�t �d�υn/, broughtforward /�brɔ�t �fɔ�wəd/ adjective used todescribe the balance in an account from theprevious period when it is taken as the start-ing point for the current period � balancebrought down or forward: £365.15 Abbrevi-ation b/d, b/fB/SB/S abbreviation balance sheetB sharesB shares /�bi� ʃeəz/ plural noun ordinaryshares with special voting rights, oftenowned by the founder of a company and hisor her family. See Comment at A sharesbuckbuck /b�k/ noun US a dollar (informal)budgetbudget /�b�d it/ noun 1. a plan ofexpected spending and income for a periodof time � to draw up a budget for salariesfor the coming year � We have agreed on thebudgets for next year. 2. � the Budget theannual plan of taxes and government spend-ing � The minister put forward a budgetaimed at boosting the economy. � verb toplan probable income and expenditure � Weare budgeting for $10,000 of sales next year.

‘…he budgeted for further growth of150,000 jobs (or 2.5 per cent) in the cur-rent financial year’ [Sydney Morning Her-ald]‘…the Federal government’s budget tar-gets for employment and growth arewithin reach according to the latest fig-ures’ [Australian Financial Review]

budget accountbudget account /�b�d it ə |�kaυnt/ nouna bank account where you plan income and

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budgetary 30expenditure to allow for periods whenexpenditure is high, by paying a set amounteach monthbudgetarybudgetary /�b�d it(ə)ri/ adjective refer-ring to a budgetbudgetary controlbudgetary control /�b�d it(ə)ri kən|

�trəυl/ noun controlled spending accordingto a planned budgetbudgetary policybudgetary policy /�b�d it(ə)ri �pɒlisi/noun the policy of planning income andexpenditurebudgetary requirementsbudgetary requirements /�b�d it(ə)riri |�kwaiəməntz/ plural noun the rate ofspending or income required to meet thebudget forecastsbudgetary slackbudgetary slack /�b�d it(ə)ri �sl�k/noun a deliberate underestimation ofincome and overestimation of costs,designed to allow for budgetary emergen-cies or to make targets more easily attainablebudget centrebudget centre /�b�d it �sentə/ noun apart of an organisation for which a separatebudget is preparedbudget committeebudget committee /�b�d it kə |�miti/noun the group within an organisationresponsible for drawing up budgets thatmeet departmental requirements, ensuringthey comply with policy, and then submit-ting them to the board of directorsbudget controlbudget control /�b�d it kən|�trəυl/ nounthe monitoring of a company’s actual per-formance against its expected performanceas detailed in a budget planBudget DayBudget Day /�b�d it dei/ noun the daywhen the Chancellor of the Exchequerpresents the budget to Parliament. This isusually in March, but with an advancebudget statement in November.budget deficitbudget deficit /�b�d it �defisit/ noun 1.a deficit in a country’s planned budget,where income from taxation will not be suf-ficient to pay for the government’s expendi-ture 2. a deficit in personal finances where ahousehold will borrow to finance large pur-chases which cannot be made out of incomealonebudget departmentbudget department /�b�d it di|

�pɑ�tmənt/ noun a department in a largestore which sells cheaper goodsbudget directorbudget director /�b�d it dai |�rektə/noun the person in an organisation who isresponsible for running the budget systembudgeted balance sheetbudgeted balance sheet /�b�d itid�b�ləns �ʃi�t/ noun a statement of com-pany’s estimated financial position at theend of a budgetary yearbudgeted capacitybudgeted capacity /�b�d itid kə|

�p�siti/ noun an organisation’s available

output level for a budget period according tothe budget. It may be expressed in differentways, e.g., in machine hours or standardhours.budgeted income statementbudgeted income statement/�b�d itid �ink�m �steitmənt/ noun astatement of a company’s expected netincome in a budgetary periodbudgeted revenuebudgeted revenue /�b�d itid�revənju�/ noun the income that an organi-sation expects to receive in a budget periodaccording to the budgetbudget informationbudget information /�b�d it�infəmeiʃ(ə)n/ noun information about acompany’s expected future levels of incomeand expenditurebudgetingbudgeting /�b�d itiŋ/ noun the prepara-tion of budgets to help plan expenditure andincomebudgeting modelsbudgeting models /�b�d itiŋ�mɒd(ə)lz/ plural noun mathematical mod-els used in the planning of a budget anddesigned to generate a profitbudget lapsingbudget lapsing /�b�d it �l�psiŋ/ nounwithdrawal by an authority of the unspentportion of an organization’s budget allow-ance at the time the budget period expiresbudget manualbudget manual /�b�d it �m�njuəl/noun a handbook or set of documents thatdetail budgetary procedure for a company ororganisationbudget periodbudget period /�b�d it �piəriəd/ noun aperiod of time covered by a budgetbudget planning calendarbudget planning calendar /�b�d it�pl�niŋ �k�lində/ noun a schedule show-ing plans for the preparation of an organisa-tion’s master budget and the departmentalbudgets that depend on it, which usuallytakes several monthsbudget reportbudget report /�b�d it ri |�pɔ�t/ noun areport that compares a company’s actualperformance with its budgeted performancefor a given periodbudget surplusbudget surplus /�b�d it �s��pləs/ nouna situation where there is more revenue thanwas planned for in the budgetbudget variancebudget variance /�b�d it �veəriəns/noun the difference between the cost as esti-mated for a budget and the actual costbuffer stocksbuffer stocks /�b�fə stɒks/ plural nounstocks of a commodity bought by an interna-tional body when prices are low and held forresale at a time when prices have risen, withthe intention of reducing sharp fluctuationsin world prices of the commoditybuild into /�bild �intu�/ phrasal verb to in-clude something in something which is be-ing set up � You must build all the forecasts

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31 business expensesinto the budget.build up /�bild ��p/ phrasal verb 1. to createsomething by adding pieces together � Shebought several shoe shops and graduallybuilt up a chain. 2. to expand somethinggradually � to build up a profitable business� to build up a team of sales representativesbuilding and loan associationbuilding and loan association/�bildiŋ ən �ləυn ə|�səυsieiʃ(ə)n/ noun USsame as building societybuilding societybuilding society /�bildiŋ sə|�saiəti/ nouna financial institution which accepts andpays interest on deposits, and lends moneyto people who are buying property againstthe security of the property which is beingbought � We put our savings into a buildingsociety or into a building society account. �I have an account with the NationwideBuilding Society. � I saw the building soci-ety manager to ask for a mortgage. (NOTE:The US term is savings and loan.)buildupbuildup /�bild�p/ noun a gradual increase� a buildup in sales or a sales buildup �There has been a buildup of complaintsabout customer service.built-in obsolescencebuilt-in obsolescence /�bilt in ɒbsə|

�les(ə)ns/ noun a method of ensuring con-tinuing sales of a product by making it insuch a way that it will soon become obsoletebulk buyingbulk buying /�b�lk �baiiŋ/ noun the act ofbuying large quantities of goods at lowpricesbullet bondbullet bond /�bυlit bɒnd/ noun US aEurobond which is only redeemed when it ismature (NOTE: Bullet bonds are used in pay-ments between central banks and also actas currency backing.)Bulletin des Annonces Légales ObligatoiresBulletin des Annonces LégalesObligatoires /�bυlət�n deiz �|�nɒns lei|

���l �ɒbli��|�twɑ�/ noun in France, an offi-cial bulletin in which companies make for-mal announcements to shareholders asrequired by law. Abbreviation BALObullet loanbullet loan /�bυlit ləυn/ noun US a loanwhich is repaid in a single paymentbullionbullion /�bυliən/ noun a gold or silver bars� A shipment of gold bullion was stolenfrom the security van. � The price of bullionis fixed daily.bumpingbumping /�b�mpiŋ/ noun US a lay-offprocedure that allows an employee withgreater seniority to displace a more junioremployee � The economic recession led toextensive bumping in companies where onlythe most qualified were retained for somejobs. � The trade unions strongly objectedto bumping practices since they considered

that many employees were being laid offunfairly.BundesfinanzhofBundesfinanzhof /�bυndəzfi|

�n�ntshɒf/ noun the German FederalFinance Courtbusinessbusiness /�biznis/ noun 1. work in buy-ing, selling, or doing other things to make aprofit � We do a lot of business with Japan.� Business is slow. � We did more businessin the week before Christmas than we usu-ally do in a month. � What’s your line ofbusiness? 2. a commercial company � Heowns a small car repair business. � She runsa business from her home. � I set up in busi-ness as an insurance broker. 3. the affairsdiscussed � The main business of the meet-ing was finished by 3 p.m.Business Accounting Deliberation CouncilBusiness Accounting DeliberationCouncil /�biznis ə |�kaυntiŋ di |�libə|

�reiʃ(ə)n �kaυns(ə)l/ noun in Japan, a com-mittee controlled by the Ministry of Financethat is responsible for drawing up regula-tions regarding the consolidated financialstatements of listed companiesbusiness addressbusiness address /�biznis ə|�dres/ nounthe details of number, street, and city ortown where a company is locatedbusiness angelbusiness angel /�biznis �eind əl/ nouna wealthy entrepreneurial individual whoinvests money, usually less money than aventure capitalist, in a company in return forequity and some control in that companybusiness angel networkbusiness angel network /�biznis�eind əl �netw��k/ noun a regional net-work of business angelsbusiness centrebusiness centre /�biznis �sentə/ nounthe part of a town where the main banks,shops and offices are locatedbusiness combinationbusiness combination /�biznis�kɒmbi |�neiʃ(ə)n/ noun the process inwhich one or more businesses become sub-sidiaries of another businessbusiness cyclebusiness cycle /�biznis �saik(ə)l/ nounthe period during which trade expands,slows down and then expands again. Alsocalled trade cyclebusiness daybusiness day /�biznis dei/ noun a week-day when banks and stock exchanges areopen for businessbusiness entity conceptbusiness entity concept /�biznis�entiti �kɒnsept/ noun the concept thatfinancial accounting information relatesonly to the activities of the business and notto the activities of its owner(s)business expensesbusiness expenses /�biznis ik|

�spensiz/ plural noun money spent on run-ning a business, not on stock or assets

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business hours 32business hours

business hours /�biznis �aυəz/ pluralnoun the time when a business is open, usu-ally 9.00 a.m. to 5.30 p.m.business intelligence

business intelligence /�biznis in |

�telid (ə)ns/ noun information that may beuseful to a business when it is planning itsstrategy

‘…a system that enables its employees touse cell phones to access the consultingfirm’s business information database.’[InformationWeek]

business name

business name /�biznis neim/ noun aname used by a company for trading pur-posesbusiness plan

business plan /�biznis pl�n/ noun adocument drawn up to show how a businessis planned to work, with cash flow forecasts,sales forecasts, etc., often used when tryingto raise a loan, or when setting up a newbusinessbusiness property relief

business property relief /�biznis�prɒpəti ri |�li�f/ noun in the United King-dom, a reduction in the amount liable toinheritance tax on certain types of businesspropertybusiness ratepayer

business ratepayer /�biznis �reitpeiə/noun a business which pays local taxes on ashop, office, factory, etc.business rates

business rates /�biznis reits/ pluralnoun in the United Kingdom, a tax on busi-nesses calculated on the value of the prop-erty occupied. Although the rate of tax is setby central government, the tax is collectedthe local authority.business review

business review /�biznis ri |�vju�/ noun areport on business carried out over the pastyear. It forms part of the directors’ report.business segment

business segment /�biznis �se�mənt/noun a section of a company which can bedistinguished from the rest of the companyby its own revenue and expenditurebusiness transaction

business transaction /�biznis tr�n|

�z�kʃən/ noun an act of buying or sellingbusiness travel

business travel /�biznis �tr�v(ə)l/ nountravel costs incurred in the course of work,as opposed to private travel or daily travel toyour usual place of workbuy

buy /bai/ verb to get something by payingmoney � to buy wholesale and sell retail �to buy for cash � She bought 10,000 shares.� The company has been bought by its lead-ing supplier. (NOTE: buying – bought)buy back /�bai �b�k/ phrasal verb to buysomething which you sold earlier � She soldthe shop last year and is now trying to buy it

back.buy in /�bai �in/ phrasal verb 1. (of a sellerat an auction) to buy the thing which you aretrying to sell because no one will pay theprice you want 2. to buy stock to cover a po-sition 3. (of a company) to buy its ownsharesbuyback

buyback /�baib�k/ noun 1. a type of loanagreement to repurchase bonds or securitiesat a later date for the same price as they arebeing sold 2. an international trading agree-ment where a company builds a factory in aforeign country and agrees to buy all its pro-duction

‘…the corporate sector also continued toreturn cash to shareholders in the form ofbuy-backs, while raising little money inthe form of new or rights issues’ [Finan-cial Times]


buyer /�baiə/ noun 1. a person who buys 2.a person who buys stock on behalf of a trad-ing organisation for resale or for use in pro-ductionbuyer’s market

buyer’s market /�baiəz �mɑ�kit/ noun amarket where products are sold cheaplybecause there are few people who want tobuy them. Opposite seller’s marketbuying department

buying department /�baiiŋ di|

�pɑ�tmənt/ noun the department in a com-pany which buys raw materials or goods foruse in the company (NOTE: The US term ispurchasing department.)buying power

buying power /�baiiŋ �paυə/ noun anassessment of an individual’s or organiza-tion’s disposable income regarded as confer-ring the power to make purchases � Thebuying power of the dollar has fallen overthe last five years.buyout

buyout /�baiaυt/ noun the purchase of acontrolling interest in a company

‘…we also invest in companies whosegrowth and profitability could beimproved by a management buyout’[Times]‘…in a normal leveraged buyout, theacquirer raises money by borrowingagainst the assets or cash flow of the targetcompany’ [Fortune]


bylaw /�bailɔ�/ noun a rule made by a localauthority or organisation, and not by centralgovernmentby-product

by-product /�bai �prɒd�kt/ noun a sec-ondary product made as a result of manufac-turing a main product which can be sold forprofit

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CCACA abbreviation chartered accountantc/ac/a abbreviation capital accountC/AC/A abbreviation current accountcalculatecalculate /�k�lkjυleit/ verb 1. to find theanswer to a problem using numbers � Thebank clerk calculated the rate of exchangefor the dollar. 2. to estimate � I calculatethat we have six months’ stock left.calculationcalculation /�k�lkjυ|�leiʃ(ə)n/ noun theanswer to a problem in mathematics �According to my calculations, we have sixmonths’ stock left. � we are £20,000 out inour calculations we have made a mistake inour calculations and arrived at a figurewhich is £20,000 too much or too littlecalendar variancecalendar variance /�k�lində �veəriəns/noun variance which occurs if a companyuses calendar months for the financialaccounts but uses the number of actualworking days to calculate overheadexpenses in the cost accountscalendar yearcalendar year /�k�lində �jiə/ noun ayear from the 1st January to 31st Decembercallcall /kɔ�l/ noun 1. a demand for repaymentof a loan by a lender 2. a demand to pay fornew shares which then become paid up �verb to ask for a loan to be repaid immedi-atelycall in /�kɔ�l �in/ phrasal verb 1. to visit �Their sales representative called in twicelast week. 2. to ask for a debt to be paidcall up /�kɔ�l ��p/ phrasal verb to ask forshare capital to be paidcallable bondcallable bond /�kɔ�ləb(ə)l �bɒnd/ noun abond which can be redeemed before itmaturescallable capitalcallable capital /�kɔ�ləb(ə)l �k�pit(ə)l/noun the part of a company’s capital whichhas not been called upcall accountcall account /�kɔ�l ə|�kaυnt/ noun a typeof current account where money can bewithdrawn without noticecall-back paycall-back pay /�kɔ�l b�k �pei/ noun paygiven to an employee who has been called

back to work after his or her usual workinghourscalled up capitalcalled up capital /�kɔ�ld �p �k�pit(ə)l/noun share capital in a company which hasbeen called up. The share capital becomesfully paid when all the authorised shareshave been called up.

‘…a circular to shareholders highlightsthat the company’s net assets as at August1, amounted to £47.9 million – less thanhalf the company’s called-up share capitalof £96.8 million. Accordingly, an EGMhas been called for October 7’ [Times]

call-in paycall-in pay /�kɔ�l in �pei/ noun paymentguaranteed to employees who report forwork even if there is no work for them to do� Call-in pay is often necessary to ensurethe attendance of employees where there isat least the possibility of work needing to bedone.call loancall loan /�kɔ�l ləυn/ noun a bank loanrepayable at callcall moneycall money /�kɔ�l �m�ni/ noun moneyloaned for which repayment can bedemanded without notice. Also calledmoney at call, money on callcall optioncall option /�kɔ�l �ɒpʃən/ noun an optionto buy shares at a future date and at a specificprice. Also called callcall pricecall price /�kɔ�l prais/ noun a price to bepaid on redemption of a US bondcall provisioncall provision /�kɔ�l prə|�vi (ə)n/ noun aclause that allows a bond to be redeemedbefore its maturity datecall purchasecall purchase /�kɔ�l �p��tʃis/, call sale/�kɔ�l seil/ noun a transaction where theseller or purchaser can fix the price forfuture deliverycalls in arrearcalls in arrear /�kɔ�ls in ə|�riə/ pluralnoun money called up for shares, but notpaid at the correct time and a special calls inarrear account is set up to debit the sumsowingCanadian Institute of Chartered AccountantsCanadian Institute of CharteredAccountants /kə|�neidiən �institju�t əv�tʃɑ�təd ə|�kaυntənts/ noun in Canada, the

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cap 34principal professional accountancy bodythat is responsible for setting accountingstandards. Abbreviation CICAcapcap /k�p/ noun 1. an upper limit placed onsomething, such as an interest rate. Theopposite, i.e. a lower limit, is a ‘floor’). 2.same as capitalisation (informal) � Lastyear the total market cap of all the world’sgold companies fell from $71 billion to $46billion. � verb to place an upper limit onsomething � to cap a department’s budget(NOTE: capping – capped)CAPACAPA noun a large association of account-ancy bodies that operate in Asia and thePacific Rim countries. Full form Confeder-ation of Asian and Pacific Accountantscapacitycapacity /kə|�p�siti/ noun 1. the amountwhich can be produced, or the amount ofwork which can be done � industrial ormanufacturing or production capacity 2. theamount of space � to use up spare or excesscapacity to make use of time or space whichis not fully used 3. ability � She has a par-ticular capacity for detailed business dealswith overseas companies.

‘…analysts are increasingly convincedthat the industry simply has too muchcapacity’ [Fortune]

capacity costscapacity costs /kə|�p�siti kɒsts/ pluralnoun costs incurred to allow a company orproduce more goods or services, e.g. thepurchase of machinery or buildingscapacity managementcapacity management /kə|�p�siti�m�nid mənt/ noun management of thecost of a company’s unused capacity, whichdoes not rightly influence pricingcapacity requirements planningcapacity requirements planning /kə|

�p�siti ri|�kwaiəmənts �pl�niŋ/ nounplanning that determines how much machin-ery and equipment is needed in order to meetproduction targetscapacity usage variancecapacity usage variance /kə|�p�siti�ju�sid �veəriəns/ noun the difference ingain or loss in a given period compared tobudgeted expectations, caused because thehours worked were longer or shorter thanplannedcapacity variancecapacity variance /kə|�p�siti �veəriəns/noun variance caused by the differencebetween planned and actual hours workedCaparo caseCaparo case /kə|�pɑ�rəυ �keis/ noun inEngland, a court decision taken by theHouse of Lords in 1990 that auditors owe aduty of care to present (not prospective)shareholders as a body but not as individualsCAPEXCAPEX abbreviation capital expenditurecapitalcapital /�k�pit(ə)l/ noun 1. the money,property, and assets used in a business � a

company with $10,000 capital or with a cap-ital of $10,000 2. money owned by individ-uals or companies, which they use forinvestmentcapital accountcapital account /�k�pit(ə)l ə|�kaυnt/noun 1. an account that states the value offunds and assets invested in a business bythe owners or shareholders 2. the portion ofa country’s balance of payments that refersto investments, rather than to the buying andselling of merchandise 3. a statement of thenet worth of an organization at a given timecapital adequacycapital adequacy /�k�pit(ə)l��dikwəsi/, capital adequacy ratio/�k�pit(ə)l ��dikwəsi �reiʃiəυ/ noun theamount of money which a bank has to havein the form of shareholders’ capital, shownas a percentage of its assets. Also calledcapital-to-asset ratio (NOTE: The amountis internationally agreed at 8%.)capital allowancescapital allowances /�k�pit(ə)l ə |

�laυənsiz/ plural noun the allowances basedon the value of fixed assets which may bededucted from a company’s profits and soreduce its tax liabilitycapital appreciationcapital appreciation /�k�pit(ə)l ə|

�pri�ʃi|�eiʃ(ə)n/ noun same as appreciationcapital asset pricing modelcapital asset pricing model/�k�pit(ə)l ��set �praisiŋ �mɒd(ə)l/ nounan equation that shows the relationshipbetween expected risk and expected returnon an investment and serves as a model forvaluing risky securities. AbbreviationCAPMcapital assetscapital assets /�k�pit(ə)l ��sets/ pluralnoun the property, machines, and otherassets which a company owns and uses butwhich it does not buy and sell as part of itsregular trade. Also called fixed assetscapital basecapital base /�k�pit(ə)l beis/ noun thecapital structure of a company (sharehold-ers’ capital plus loans and retained profits)used as a way of assessing the company’sworthcapital bonuscapital bonus /�k�pit(ə)l �bəυnəs/ nounan extra payment by an insurance companywhich is produced by a capital gaincapital budgetcapital budget /�k�pit(ə)l �b�d it/ nouna budget for planned purchases of fixedassets during the next budget periodcapital budgetingcapital budgeting /�k�pit(ə)l �|

�b�d itiŋ/ noun the process of deciding onspecific investment projects, the amount ofexpenditure to commit to them and how thefinance will be raisedcapital commitmentscapital commitments /�k�pit(ə)l kə|

�mitmənts/ plural noun expenditure onassets which has been authorised by direc-

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35 capitalismtors, but not yet spent at the end of a finan-cial periodcapital consumptioncapital consumption /�k�pit(ə)l kən|

�s�mpʃ(ə)n/ noun in a given period, thetotal depreciation of a national economy’sfixed assets based on replacement costscapital costscapital costs /�k�pit(ə)l �kɒsts/ pluralnoun expenses on the purchase of fixedassetscapital deepeningcapital deepening /�k�pit(ə)l�di�pəniŋ/ noun increased investment ofcapital in a business, without changing otherfactors of production. Also called capitalwideningcapital employedcapital employed /�k�pit(ə)l im|�plɔid/noun an amount of capital consisting ofshareholders’ funds plus the long-term debtsof a business. � return on assetscapital equipmentcapital equipment /�k�pit(ə)l i|

�kwipmənt/ noun equipment which a fac-tory or office uses to workcapital expenditurecapital expenditure /�k�pit(ə)l ik|

�spenditʃə/ noun money spent on fixedassets such as property, machines and furni-ture. Also called capital investment, capi-tal outlay. Abbreviation CAPEXcapital expenditure budgetcapital expenditure budget/�k�pit(ə)l ik|�spenditʃə �b�d it/ noun abudget for planned purchases of fixed assetsduring the budget periodcapital flightcapital flight /�k�pit(ə)l �flait/ noun therapid movement of capital out of a countrybecause of lack of confidence in that coun-try’s economic future in response to politicalunrest, war or other conditions. Also calledflight of capitalcapital gaincapital gain /�k�pit(ə)l ��ein/ noun anamount of money made by selling a fixedasset or certain other types of property, suchas shares, works of art, leases etc. Oppositecapital losscapital gains expensescapital gains expenses /�k�pit(ə)l��einz ik|�spensiz/ plural noun expensesincurred in buying or selling assets, whichcan be deducted when calculating a capitalgain or losscapital gains taxcapital gains tax /�k�pit(ə)l ��einzt�ks/ noun a tax on the difference betweenthe gross acquisition cost and the net pro-ceeds when an asset is sold. In the UnitedKingdom, this tax also applies when assetsare given or exchanged, although each indi-vidual has an annual capital gains tax allow-ance that exempts gains within that tax yearbelow a stated level. In addition, certainassets may be exempt, e.g., a person’s prin-cipal private residence and transfers ofassets between spouses. Abbreviation CGT

capital goodscapital goods /�k�pit(ə)l �υdz/ pluralnoun machinery, buildings, and raw materi-als which are used to make other goodscapital inflowcapital inflow /�k�pit(ə)l �infləυ/ nounthe movement of capital into a country bybuying shares in companies, buying wholecompanies or other forms of investmentcapital-intensive industrycapital-intensive industry /�k�pit(ə)lin|�tensiv �indəstri/ noun an industrywhich needs a large amount of capitalinvestment in plant to make it workcapital investmentcapital investment /�k�pit(ə)l in|

�vestmənt/ noun same as capital expendi-turecapital investment appraisalcapital investment appraisal/�k�pit(ə)l in|�vestmənt ə |�preiz(ə)l/ nounan analysis of the future profitability of cap-ital purchases as an aid to good managementcapitalisationcapitalisation /�k�pit(ə)lai|�zeiʃ(ə)n/,capitalization noun the value of a companycalculated by multiplying the price of itsshares on the stock exchange by the numberof shares issued. Also called market capi-talisation

‘…she aimed to double the company’smarket capitalization’ [Fortune]

capitalisation issuecapitalisation issue /�k�pitəlai|

�zeiʃ(ə)n �iʃu�/ noun same as bonus issuecapitalisation of costscapitalisation of costs/�k�pit(ə)laizeiʃ(ə)n əv �kɒsts/ noun theact of including costs usually charged to theprofit and loss account in the balance sheet.The effect is that profits are higher than ifsuch costs are matched with revenues in thesame accounting period.capitalisation of earningscapitalisation of earnings/�k�pitəlaizeiʃ(ə)n əv ���niŋz/ noun amethod of valuing a business according toits expected future profitscapitalisecapitalise /�k�pit(ə)laiz/, capitalizeverb 1. to invest money in a working com-pany � the company is capitalised at£10,000 the company has a working capitalof £10,000 2. to convert reserves or assetsinto capital

‘…at its last traded price the bank was cap-italized at around $1.05 billion with 60 percent in the hands of the family’ [SouthChina Morning Post]

capitalise on phrasal verb to make a profitfrom � We are seeking to capitalise on ourmarket position.capitalismcapitalism /�k�pit(ə)liz(ə)m/ noun theeconomic system in which each person hasthe right to invest money, to work in busi-ness, and to buy and sell, with no restrictionsfrom the state

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capitalist 36capitalistcapitalist /�k�pit(ə)list/ adjective work-ing according to the principles of capitalism� the capitalist system � the capitalist coun-tries or worldcapitalist economycapitalist economy /�k�pit(ə)list i|

�kɒnəmi/ noun an economy in which eachperson has the right to invest money, to workin business, and to buy and sell, with norestrictions from the statecapital leasecapital lease /�k�pit(ə)l li�s/ noun alease that gives the lessee substantial prop-erty rightscapital levycapital levy /�k�pit(ə)l �levi/ noun a taxon the value of a person’s property and pos-sessionscapital losscapital loss /�k�pit(ə)l �lɒs/ noun a lossmade by selling assets. Opposite capitalgaincapital maintenance conceptcapital maintenance concept/�k�pit(ə)l �meintənəns �kɒnsept/ noun aconcept used to determine the definition ofprofit, that provides the basis for differentsystems of inflation accountingcapital marketcapital market /�k�pit(ə)l �mɑ�kit/noun an international market where moneycan be raised for investment in a businesscapital outlaycapital outlay /�k�pit(ə)l �aυtlei/ nounsame as capital expenditurecapital profitcapital profit /�k�pit(ə)l �prɒfit/ noun aprofit made by selling an assetcapital projectcapital project /�k�pit(ə)l �prɒd ekt/noun a large-scale and complex project,often involving construction or engineeringwork, in which an organisation spends partof its financial resources on creating capac-ity for productioncapital ratiocapital ratio /�k�pit(ə)l �reiʃiəυ/ nounsame as capital adequacycapital rationingcapital rationing /�k�pit(ə)l�r�ʃ(ə)niŋ/ noun restrictions on capitalinvestment, the result either of the internalimposition of a budget ceiling or of externallimitations such as the fact that additionalborrowing is not availablecapital reconstructioncapital reconstruction /�k�pit(ə)l�ri�kən|�str�kʃən/ noun the act of putting acompany into voluntary liquidation and thenselling its assets to another company withthe same name and same shareholders, butwith a larger capital basecapital redemption reservecapital redemption reserve/�k�pit(ə)l ri|�dempʃən ri|�z��v/ noun anaccount required to prevent a reduction incapital, where a company purchases orredeems its own shares out of distributableprofitscapital reorganisationcapital reorganisation /�k�pit(ə)l ri�|

�ɔ��ənai|�zeiʃ(ə)n/ noun the process of

changing the capital structure of a companyby amalgamating or dividing existing sharesto form shares of a higher or lower nominalvaluecapital reservescapital reserves /�k�pit(ə)l ri|�z��vz/plural noun 1. money from profits, whichforms part of the capital of a company andcan be used for distribution to shareholdersonly when a company is wound up. Alsocalled undistributable reserves 2. theshare capital of a company which comesfrom selling assets and not from their usualtradingcapital sharescapital shares /�k�pit(ə)l �ʃeəz/ pluralnoun (on the Stock Exchange) shares in aunit trust which rise in value as the capitalvalue of the units rises, but do not receiveany income (NOTE: The other form of sharesin a split-level investment trust are incomeshares, which receive income from theinvestments, but do not rise in value.)capital stockcapital stock /�k�pit(ə)l stɒk/ noun 1.the amount of money raised by a companythrough the sale of shares, entitling holdersto dividends, some rights of ownership andother benefits 2. the face value of the sharecapital that a company issuescapital structurecapital structure /�k�pit(ə)l �str�ktʃə/noun the relative proportions of equity capi-tal and debt capital within a company’s bal-ance sheetcapital surpluscapital surplus /�k�pit(ə)l �s��pləs/noun the total value of shares in a companythat exceeds the par valuecapital taxcapital tax /�k�pit(ə)l t�ks/ noun a taxlevied on the capital owned by a company,rather than on its spending. � capital gainstaxcapital-to-asset ratiocapital-to-asset ratio /�k�pit(ə)l tυ��set �reiʃiəυ/, capital/asset ratio nounsame as capital adequacycapital transactionscapital transactions /�k�pit(ə)l tr�n|

�z�kʃ(ə)nz/ plural noun transactions affect-ing non-current items such as fixed assets,long-term debt or share capital, rather thanrevenue transactionscapital transfer taxcapital transfer tax /�k�pit(ə)l�tr�nsf�� �t�ks/ noun in the United King-dom, a tax on the transfer of assets that wasreplaced in 1986 by inheritance taxcapital turnover ratiocapital turnover ratio /�k�pit(ə)l�t��nəυvə �reiʃiəυ/ noun turnover dividedby average capital during the yearcapital wideningcapital widening /�k�pit(ə)l�waid(ə)niŋ/ noun same as capital deep-eningCAPMCAPM abbreviation capital asset pricingmodel

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37 cash budgetcapped floating rate notecapped floating rate note /�k�pt�fləυtiŋ reit �nəυt/ noun a floating ratenote which has an agreed maximum ratecaptive marketcaptive market /�k�ptiv �mɑ�kit/ nouna market where one supplier has a monopolyand the buyer has no choice over the productwhich he or she must purchasecarriagecarriage /�k�rid / noun the transportingof goods from one place to another � to payfor carriagecarriage forwardcarriage forward /�k�rid �fɔ�wəd/noun a deal where the customer pays fortransporting the goodscarriage freecarriage free /�k�rid �fri�/ noun a dealwhere the customer does not pay for theshippingcarriage inwardscarriage inwards /�k�rid �inwədz/noun delivery expenses incurred through thepurchase of goodscarriage outwardscarriage outwards /�k�rid �aυtwədz/noun delivery expenses incurred through thesale of goodscarriage paidcarriage paid /�k�rid �peid/ noun adeal where the seller has paid for the ship-pingcarrycarry /�k�ri/ noun the cost of borrowing tofinance a dealcarry back /�k�ri �b�k/ phrasal verb totake back to an earlier accounting periodcarry down /�k�ri �daυn/, carry forward/�k�ri �fɔ�wəd/ phrasal verb to take an ac-count balance at the end of the current peri-od as the starting point for the next periodcarry forward /�k�ri �fɔ�wəd/ phrasal verbto take an account balance at the end of thecurrent period or page as the starting pointfor the next period or pagecarrying costcarrying cost /�k�riiŋ kɒst/ noun anyexpense associated with holding stock for agiven period, e.g., from the time of deliveryto the time of dispatch. Carrying costs willinclude storage and insurance.carrying valuecarrying value /�k�riiŋ �v�lju�/ nounsame as book valuecarry-overcarry-over /�k�ri �əυvə/ noun the stock ofa commodity held at the beginning of a newfinancial yearcartelcartel /kɑ� |�tel/ noun a group of companieswhich try to fix the price or to regulate thesupply of a product so that they can makemore profitcashcash /k�ʃ/ noun 1. money in the form ofcoins or notes 2. the using of money in coinsor notes � verb � to cash a cheque toexchange a cheque for cashcash in /�k�ʃ �in/ phrasal verb to sellshares or other property for cashcash in on /�k�ʃ �in �ɒn/ phrasal verb to

profit from � The company is cashing in onthe interest in computer games.cash out phrasal verb US same as cash upcash up /�k�ʃ ��p/ phrasal verb to add upthe cash in a shop at the end of the daycashablecashable /�k�ʃəb(ə)l/ adjective able to becashed � A crossed cheque is not cashableat any bank.cash accountcash account /�k�ʃ ə|�kaυnt/ noun anaccount which records the money which isreceived and spentcash accountingcash accounting /�k�ʃ ə|�kaυntiŋ/ noun1. an accounting method in which receiptsand expenses are recorded in the accountingbooks in the period when they actually occur2. in the United Kingdom, a system forValue Added Tax that enables the tax payerto account for tax paid and received during agiven period, thus allowing automatic relieffor bad debtscash advancecash advance /�k�ʃ əd|�vɑ�ns/ noun aloan in cash against a future paymentcash and carrycash and carry /�k�ʃ ən �k�ri/ noun 1.a large store selling goods at low prices,where the customer pays cash and takes thegoods away immediately � We get our sup-plies every morning from the cash and carry.2. the activity of buying a commodity forcash and selling the same commodity on thefutures market

‘…the small independent retailer whostocks up using cash and carries could behit hard by the loss of footfall associatedwith any increase in smuggled goods’ [TheGrocer]

cash at bankcash at bank /�k�ʃ ət �b�ŋk/ noun thetotal amount of money held at the bank by anindividual or companycashbackcashback /�k�ʃb�k/ noun a discount sys-tem where a purchaser receives a cash dis-count on the completion of the purchase

‘… he mentioned BellSouth’s DSL offerof $75 a month, plus a one-month cash-back rebate.’ [BusinessWeek]

cash balancecash balance /�k�ʃ �b�ləns/ noun a bal-ance that represents cash alone, as distinctfrom a balance that includes money owedbut as yet unpaidcash basiscash basis /�k�ʃ �beisis/ noun a methodof preparing the accounts of a business,where receipts and payments are shown atthe time when they are made, as opposed toshowing debts or credits which are outstand-ing at the end of the accounting period. Alsocalled receipts and payments basiscash budgetcash budget /�k�ʃ �b�d it/ noun a planof cash income and expenditure. Also calledcash-flow budget

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cash card 38cash cardcash card /�k�ʃ kɑ�d/ noun a plastic cardused to obtain money from a cash dispensercash cowcash cow /�k�ʃ kaυ/ noun a product orsubsidiary company that consistently gener-ates good profits but does not providegrowthcash discountcash discount /�k�ʃ �diskaυnt/ noun adiscount given for payment in cash. Alsocalled discount for cashcash dispensercash dispenser /�k�ʃ di|�spensə/ noun amachine which gives out money when a spe-cial card is inserted and instructions givencash dividendcash dividend /�k�ʃ �dividend/ noun adividend paid in cash, as opposed to a divi-dend in the form of bonus sharescash economycash economy /�k�ʃ i |�kɒnəmi/ noun ablack economy, where goods and servicesare paid for in cash, and therefore notdeclared for taxcash equivalentcash equivalent /�k�ʃ i|�kwivələnt/noun 1. an amount of money that can berealised immediately by selling an asset 2. asafe and highly liquid financial instrumentsuch as a Treasury billcash equivalentscash equivalents /�k�ʃ i|�kwivələnts/noun short-term investments that can beconverted into cash immediately and that aresubject to only a limited risk. There is usu-ally a limit on their duration, e.g., threemonths.cash floatcash float /�k�ʃ fləυt/ noun cash put intothe cash box at the beginning of the day orweek to allow change to be given to custom-erscash flowcash flow /�k�ʃ fləυ/ noun cash whichcomes into a company from sales (cashinflow) or the money which goes out in pur-chases or overhead expenditure (cash out-flow)cash-flow accountingcash-flow accounting /�k�ʃ fləυ ə |

�kaυntiŋ/ noun the practice of measuringthe financial activities of a company in termsof cash receipts and payments, withoutrecording accruals, prepayments, debtors,creditors and stockscash-flow budgetcash-flow budget /�k�ʃ fləυ �b�d it/noun same as cash budgetcash-flow forecastcash-flow forecast /�k�ʃ fləυ�fɔ�kɑ�st/ noun a forecast of when cash willbe received or paid outcash-flow ratiocash-flow ratio /�k�ʃ fləυ �reiʃiəυ/noun a ratio that shows the level of cash in abusiness in relation to other assets and theuse of cash in the activities of the businesscash-flow riskcash-flow risk /�k�ʃ fləυ �risk/ noun therisk that a company’s available cash will notbe sufficient to meet its financial obligations

cash-flow statementcash-flow statement /�k�ʃ fləυ�steitmənt/ noun a record of a company’scash inflows and cash outflows over a spe-cific period of time, typically a yearcash-flow-to-total-debt ratiocash-flow-to-total-debt ratio /�k�ʃfləυ tə �det �reiʃiəυ/ noun a ratio that indi-cates a company’s ability to pay its debts,often used as an indicator of bankruptcycash fractioncash fraction /�k�ʃ �fr�kʃən/ noun asmall amount of cash paid to a shareholderto make up the full amount of part of a sharewhich has been allocated in a share splitcash-generating unitcash-generating unit /�k�ʃ�d enəreitiŋ �ju�nit/ noun the smallestidentifiable group of assets that generatescash inflows and outflows that can be meas-uredcashiercashier /k�|�ʃiə/ noun 1. a person whotakes money from customers in a shop orwho deals with the money that has been paid2. a person who deals with customers in abank and takes or gives cash at the countercashier’s checkcashier’s check /k� |�ʃiəz �tʃek/ nounUS a bank’s own cheque, drawn on itself andsigned by a cashier or other bank officialcash inflowcash inflow /�k�ʃ �infləυ/ noun receiptsof cash or chequescash itemscash items /�k�ʃ �aitəmz/ plural noungoods sold for cashcashless societycashless society /�k�ʃləs sə|�saiəti/noun a society where no one uses cash, allpurchases being made by credit cards,charge cards, cheques or direct transfer fromone account to anothercash limitcash limit /�k�ʃ �limit/ noun 1. a fixedamount of money which can be spent duringsome period 2. a maximum amount some-one can withdraw from an ATM using a cashcardcash offercash offer /�k�ʃ �ɒfə/ noun an offer topay in cash, especially an offer to pay cashwhen buying shares in a takeover bidcash outflowcash outflow /�k�ʃ �aυtfləυ/ nounexpenditure in cash or chequescash paymentcash payment /�k�ʃ �peimənt/ nounpayment in cashcash payments journalcash payments journal /�k�ʃ�peimənts �d ��n(ə)l/ noun a chronologicalrecord of all the payments that have beenmade from a company’s bank accountcash positioncash position /�k�ʃ pə|�ziʃ(ə)n/ noun astate of the cash which a company currentlyhas availablecash pricecash price /�k�ʃ prais/ noun 1. a lowerprice or better terms which apply if the cus-tomer pays cash 2. same as spot price

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39 certificate of depositcash purchasecash purchase /�k�ʃ �p��tʃis/ noun apurchase made for cashcash receipts journalcash receipts journal /�k�ʃ ri|�si�ts�d ��n(ə)l/ noun a chronological record ofall the receipts that have been paid into acompany’s bank accountcash registercash register /�k�ʃ �red istə/ noun amachine which shows and adds the prices ofitems bought, with a drawer for keeping thecash receivedcash reservescash reserves /�k�ʃ ri|�z��vz/ pluralnoun a company’s reserves in cash depositsor bills kept in case of urgent need � Thecompany was forced to fall back on its cashreserves.cash salecash sale /�k�ʃ seil/ noun a transactionpaid for in cashcash surrender valuecash surrender value /�k�ʃ sə|�rendə�v�lju�/ noun the amount of money that aninsurance company will pay a policyholderwho chooses to terminate a policy before thematurity datecash termscash terms /�k�ʃ t��mz/ plural nounlower terms which apply if the customerpays cashcash-to-current-liabilities ratiocash-to-current-liabilities ratio /�k�ʃtə �k�rənt �laiə|�bilitiz �reiʃiəυ/ noun aratio that indicates a company’s ability topay its short-term debts, often used as anindicator of liquiditycash transactioncash transaction /�k�ʃ tr�n |�z�kʃən/noun a transaction paid for in cash, as dis-tinct from a transaction paid for by means ofa transfer of a financial instrumentcash vouchercash voucher /�k�ʃ �vaυtʃə/ noun apiece of paper which can be exchanged forcash � With every $20 of purchases, the cus-tomer gets a cash voucher to the value of $2.casting votecasting vote /�kɑ�stiŋ �vəυt/ noun a voteused by the chairman in the case where thevotes for and against a proposal are equal �The chairman has the casting vote. � Sheused her casting vote to block the motion.casual labourcasual labour /�k� uəl �leibə/ nounworkers who are hired for a short periodcasual workcasual work /�k� uəl w��k/ noun workwhere the employees are hired only for ashort periodcasual workercasual worker /�k� uəl �w��kə/ noun anemployee who can be hired for a shortperiodCATCAT abbreviation certified accounting tech-nicianCCACCA abbreviation current cost accountingCCABCCAB abbreviation Consultative Commit-tee of Accountancy BodiesCDCD abbreviation certificate of deposit

ceilingceiling /�si�liŋ/ noun the highest point thatsomething can reach, e.g. the highest rate ofa pay increase � to fix a ceiling for a budget� There is a ceiling of $100,000 on deposits.� Output reached its ceiling in June and hassince fallen back. � What ceiling has thegovernment put on wage increases thisyear?central bankcentral bank /�sentrəl �b�ŋk/ noun themain government-controlled bank in a coun-try, which controls that country’s financialaffairs by fixing main interest rates, issuingcurrency, supervising the commercial banksand trying to control the foreign exchangeratecentral bank discount ratecentral bank discount rate /�sentrəlb�ŋk �diskaυnt reit/ noun the rate atwhich a central bank discounts bills such asTreasury billscentral bank interventioncentral bank intervention /�sentrəlb�ŋk �intə|�venʃ(ə)n/ noun an action by acentral bank to change base interest rates, toimpose exchange controls or to buy or sellthe country’s own currency in an attempt toinfluence international money marketscentral governmentcentral government /�sentrəl���v(ə)nmənt/ noun the main governmentof a country as opposed to municipal, local,provincial or state governmentscentralisecentralise /�sentrəlaiz/ verb to organisefrom a central point � All purchasing hasbeen centralised in our main office. � Thecompany has become very centralised, andfar more staff work at headquarters.central purchasingcentral purchasing /�sentrəl�p��tʃisiŋ/ noun purchasing organised by acentral office for all branches of a companycentrecentre /�sentə/ noun a department, area orfunction to which costs and/or revenues arecharged (NOTE: The US spelling is center.)CEOCEO abbreviation chief executive officercertain annuitycertain annuity /�s��t(ə)n ə|�nju�iti/noun an annuity which will be paid for aspecific number of years onlycertificatecertificate /sə|�tifikət/ noun an officialdocument carrying an official declaration bysomeone, and signed by that personcertificated bankruptcertificated bankrupt /sə|�tifikeitid�b�ŋkr�pt/ noun a bankrupt who has beendischarged from bankruptcy with a certifi-cate to show that he or she was not at faultcertificate of approvalcertificate of approval /sə |�tifikət əv ə|

�pru�v(ə)l/ noun a document showing thatan item has been approved officiallycertificate of depositcertificate of deposit /sə|�tifikət əv di|

�pɒzit/ noun a document from a bank show-ing that money has been deposited at a guar-

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certificate of incorporation 40anteed interest rate for a certain period oftime. Abbreviation CD

‘…interest rates on certificates of depositmay have little room to decline in Augustas demand for funds from major city banksis likely to remain strong. After delayingfor months, banks are now expected toissue a large volume of CDs. If banks issuemore CDs on the assumption that the offi-cial discount rate reduction will bedelayed, it is very likely that CD rates willbe pegged for a longer period thanexpected’ [Nikkei Weekly]

certificate of incorporation

certificate of incorporation /sə|

�tifikət əv in |�kɔ�pə|�reiʃ(ə)n/ noun a docu-ment issued by Companies House to showthat a company has been legally set up andofficially registeredcertificate of origin

certificate of origin /sə|�tifikət əv�ɒrid in/ noun a document showing whereimported goods come from or were madecertificate of quality

certificate of quality /sə|�tifikət əv�kwɒliti/ noun a certificate showing thegrade of a soft commoditycertificate of registration

certificate of registration /sə|�tifikətəv �red i |�streiʃ(ə)n/ noun a documentshowing that an item has been registeredcertificate to commence business

certificate to commence business/sə|�tifikət tə kə |�mens �biznis/ noun adocument issued by the Registrar of Compa-nies which allows a registered company totradecertified accountant

certified accountant /�s��tifaid ə|

�kaυntənt/ noun an accountant who haspassed the professional examinations and isa member of the Association of CertifiedChartered Accountants (ACCA)certified accounting technician

certified accounting technician/�s��tifaid ə|�kaυntiŋ tek|�niʃ(ə)n/ noun aperson who has passed the first stage courseof the Association of Chartered CertifiedAccountants (ACCA). Abbreviation CATcertified cheque

certified cheque /�s��tifaid �tʃek/ nouna cheque which a bank says is good and willbe paid out of money put aside from thepayer’s bank accountcertified public accountant

certified public accountant/�s��tifaid �p�blik ə|�kaυntənt/ noun USsame as chartered accountantcertify

certify /�s��tifai/ verb to make an officialdeclaration in writing � I certify that this isa true copy. � The document is certified as atrue copy. (NOTE: certifies – certifying –certified)cessation

cessation /se|�seiʃ(ə)n/ noun the stoppingof an activity or work


cession /�seʃ(ə)n/ noun the act of givingup property to someone, especially a credi-torCFO

CFO abbreviation chief financial officerCGT

CGT abbreviation capital gains taxCH

CH abbreviation Companies Housechairman

chairman /�tʃeəmən/ noun 1. a personwho is in charge of a meeting � Mr Howardwas chairman or acted as chairman 2. a per-son who presides over the board meetings ofa company � the chairman of the board orthe company chairman � the chairman’sreport, the chairman’s statement anannual report from the chairman of a com-pany to the shareholders

‘…the corporation’s entrepreneurial chair-man seeks a dedicated but part-time presi-dent. The new president will work a three-day week’ [Globe and Mail (Toronto)]

Chamber of Commerce

Chamber of Commerce /�tʃeimbər əv�kɒm��s/ noun an organisation of local busi-ness people who work together to promoteand protect common interest in tradeChancellor of the Exchequer

Chancellor of the Exchequer/�tʃɑ�nsələr əv ði� iks|�tʃekə/ noun thechief finance minister in the British govern-ment (NOTE: The US term is Secretary ofthe Treasury.)change

change /tʃeind / noun 1. money in coinsor small notes. � exchange � to give some-one change for £10 to give someone coinsor notes in exchange for a ten pound note 2.money given back by the seller, when thebuyer can pay only with a larger note or cointhan the amount asked � She gave me thewrong change. � You paid the £5.75 billwith a £10 note, so you should have £4.25change. 3. an alteration of the way some-thing is done or of the way work is carriedout � change in accounting principlesusing a method to state a company’saccounts which is different from the methodused in the previous accounts. This will haveto be agreed with the auditors, and possiblywith the Inland Revenue. � verb 1. � tochange a £20 note to give someone smallernotes or coins in place of a £20 note 2. togive one type of currency for another � tochange £1,000 into dollars � We want tochange some traveller’s cheques.change in accounting estimate

change in accounting estimate/�tʃeind in ə|�kaυntiŋ �estimət/ noun achange in a major assumption or forecastunderpinning a set of accounts, full disclo-sure of which should be made in a financialstatement

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41 charitychange machinechange machine /�tʃeind mə|�ʃi�n/noun a machine which gives small changefor a note or larger coinchannelchannel /�tʃ�n(ə)l/ noun a means bywhich information or goods pass from oneplace to anotherCHAPSCHAPS /tʃ�ps/ noun an electronic, bank-to-bank payment system that guaranteessame-day payment. Compare BACSChapter 7Chapter 7 /�tʃ�ptə �sevən/ noun a sec-tion of the US Bankruptcy Reform Act1978, which sets out the rules for liquida-tion, a choice available to individuals, part-nerships and corporationsChapter 11Chapter 11 /�tʃ�ptə �ten/ noun a sectionof the US Bankruptcy Reform Act 1978,which allows a corporation to be protectedfrom demands made by its creditors for aperiod of time, while it is reorganised with aview to paying its debtsChapter 13Chapter 13 /�tʃ�ptə θ��r |�ti�n/ noun asection of the Bankruptcy Reform Act 1978,which allows a business to continue tradingand to pay off its creditors by regularmonthly payments over a period of timechargecharge /tʃɑ�d / noun 1. money whichmust be paid, or the price of a service � tomake no charge for delivery � to make asmall charge for rental � There is no chargefor this service or No charge is made for thisservice. 2. a guarantee of security for a loan,for which assets are pledged 3. a sumdeducted from revenue in the profit and lossaccount � verb 1. to ask someone to pay forservices later 2. to ask for money to be paid� to charge $5 for delivery � How muchdoes he charge? � he charges £16 an hourhe asks to be paid £16 for an hour’s work 3.to take something as guarantee for a loan 4.to record an expense or other deductionfrom revenue in the profit and loss accountchargeablechargeable /�tʃɑ�d əb(ə)l/ adjective ableto be charged � repairs chargeable to theoccupierchargeable assetchargeable asset /�tʃɑ�d əb(ə)l ��set/noun an asset which will produce a capitalgain when sold. Assets which are notchargeable include your family home, cars,and some types of investments such as gov-ernment stocks.chargeable business assetchargeable business asset/�tʃɑ�d əb(ə)l �biznis ��set/ noun an assetwhich is owned by a business and is liable tocapital gains if soldchargeable gainschargeable gains /�tʃɑ�d əb(ə)l��einz/ plural noun gains made by selling anasset such as shares, on which capital gainswill be charged

chargeable transferchargeable transfer /�tʃɑ�d əb(ə)l�tr�nsf��/ noun in the United Kingdom,gifts that are liable to inheritance tax. UnderUK legislation, individuals may gift assetsto a certain value during their lifetime with-out incurring any liability to inheritance tax.These are regular transfers out of incomethat do not affect the donor’s standard of liv-ing. Additionally, individuals may transferup to £3,000 a year out of capital.charge accountcharge account /�tʃɑ�d ə |�kaυnt/ nounUS same as credit account (NOTE: The cus-tomer will make regular monthly paymentsinto the account and is allowed credit of amultiple of those payments.)charge and discharge accountingcharge and discharge accounting/�tʃɑ�d ən �distʃɑ�d ə |�kaυntiŋ/ nounformerly, a bookkeeping system in which aperson charges himself or herself withreceipts and credits himself or herself withpayments. This system was used extensivelyin medieval times before the advent of dou-ble-entry bookkeeping.charge by way of legal mortgagecharge by way of legal mortgage/�tʃɑ�d bai wei əv �li��(ə)l �mɔ��id /noun a way of borrowing money on thesecurity of a property, where the mortgagersigns a deed which gives the mortgagee aninterest in the propertycharge cardcharge card /�tʃɑ�d kɑ�d/ noun a cardissued to customers by a shop, bank or otherorganisation, used to charge purchases to anaccount for later payment. � credit cardchargeechargee /tʃɑ� |�d i�/ noun a person who hasthe right to force a debtor to paycharges forwardcharges forward /�tʃɑ�d iz �fɔ�wəd/plural noun charges which will be paid bythe customercharitablecharitable /�tʃ�ritəb(ə)l/ adjective bene-fiting the general public as a charitycharitable deductionscharitable deductions /�tʃ�ritəb(ə)ldi|�d�kʃ(ə)nz/ plural noun deductions fromtaxable income for contributions to charitycharitable purposescharitable purposes /�tʃ�ritəb(ə)l�p��pəsiz/ plural noun the purpose of sup-porting work done by a charitable organisa-tion, for which purpose money donated, orthe value of services contributed, may beoffset against taxcharitable trustcharitable trust /�tʃ�ritəb(ə)l tr�st/,charitable corporation /�tʃ�ritəb(ə)l�kɔ�pə|�reiʃ(ə)n/ noun a trust which benefitsthe public as a whole, which promotes edu-cation or religion, which helps the poor orwhich does other useful workcharitycharity /�tʃ�riti/ noun an organisationwhich offers free help or services to those inneed � Because the organisation is a charity

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charity accounts 42it does not have to pay taxes. � The charityowes its success to clever marketing strate-gies in its fund-raising.charity accountscharity accounts /�tʃ�riti ə|�kaυnts/plural noun the accounting records of a char-itable institution, that include a statement offinancial activities rather than a profit andloss account. In the United Kingdom, theaccounts should conform to the require-ments stipulated in the Charities Act (1993).Charity CommissionersCharity Commissioners /�tʃ�riti kə |

�miʃ(ə)nəz/ plural noun the UK body whichgoverns charities and sees that they followthe law and use their funds for the purposesintendedchartchart /tʃɑ�t/ noun a diagram displayinginformation as a series of lines, blocks, etc.chartercharter /�tʃɑ�tə/ noun 1. a document giv-ing special legal rights to a group � a shop-pers’ charter or a customers’ charter 2. USin the US, a formal document incorporatingan organisation, company or educationalinstitutioncharteredchartered /�tʃɑ�təd/ adjective 1. in theUK, used to describe a company which hasbeen set up by charter, and not registeredunder the Companies Act � a charteredbank 2. in the US, used to describe an incor-porated organisation, company or educa-tional institution that has been set up bycharterchartered accountantchartered accountant /�tʃɑ�təd ə |

�kaυntənt/ noun an accountant who haspassed the necessary professional examina-tions and is a member of the Institute ofChartered Accountants. Abbreviation CAChartered Association of Certified AccountantsChartered Association of CertifiedAccountants /�tʃɑ�təd ə|�səυsieiʃ(ə)nəv �s��tifaid ə|�kaυntənts/ noun the formername of the Association of Chartered Certi-fied Accountantschartered bankchartered bank /�tʃɑ�təd �b�ŋk/ noun abank which has been set up by governmentcharter, formerly used in England, but nowonly done in the USA and Canadachartered companychartered company /�tʃɑ�təd�k�mp(ə)ni/ noun a company which hasbeen set up by royal charter, and not regis-tered under the Companies ActChartered Institute of Management AccountantsChartered Institute of ManagementAccountants /�tʃɑ�təd �institju� əv�m�nid mənt ə|�kaυntənts/ noun a UKorganisation responsible for the educationand training of management accountantswho work in industry, commerce, not-for-profit and public sector organisationsChartered Institute of Public Finance and AccountancyChartered Institute of PublicFinance and Accountancy /�tʃɑ�təd

�institju�t əv �p�blik �fain�ns ən ə|

�kaυntənsi/ full form of CIPFAChartered Institute of TaxationChartered Institute of Taxation/�tʃɑ�təd �institju�t əv t�k|�seiʃ(ə)n/noun in the United Kingdom, an organisa-tion for professionals in the field of taxation,formerly the Institute of Taxationchartingcharting /�tʃɑ�tiŋ/ noun the work of usingcharts to analyse information such as stockmarket trends and forecast future rises orfallschart of accountschart of accounts /�tʃɑ�t əv ə|�kaυnts/noun a detailed and ordered list of an organ-isation’s numbered or named accounts, pro-viding a standard list of account codes forassets, liabilities, capital, revenue andexpenseschattel mortgagechattel mortgage /�tʃ�t(ə)l �mɔ��id /noun money lent against the security of anitem purchased, but not against real estatechattels realchattels real /�tʃ�t(ə)lz �riəl/ plural nounleaseholdscheap moneycheap money /�tʃi�p �m�ni/ noun moneywhich can be borrowed at a low rate of inter-estcheatcheat /tʃi�t/ verb to trick someone so thathe or she loses money � He cheated theInland Revenue out of thousands of pounds.� She was accused of cheating clients whocame to ask her for advice.checkcheck /tʃek/ verb 1. to stop or delay some-thing � to check the entry of contraband intothe country � to check the flow of money outof a country 2. to examine or to investigatesomething � to check that an invoice is cor-rect � to check and sign for goods � shechecked the computer printout againstthe invoices she examined the printout andthe invoices to see if the figures were thesame 3. US to mark something with a sign toshow that it is correct � check the boxmarked ‘R’ (NOTE: The UK term is tick.)checkablecheckable /�tʃekəb(ə)l/ adjective USreferring to a deposit account on whichchecks can be drawncheckbookcheckbook /�tʃekbυk/ noun US same ascheque bookcheck cardcheck card /�tʃek kɑ�d/ noun US same ascheque cardchecking accountchecking account /�tʃekiŋ ə|�kaυnt/noun US same as current account 1check routing symbolcheck routing symbol /�tʃek �ru�tiŋ�simbəl/ noun US a number shown on a UScheque which identifies the Federal Reservedistrict through which the cheque will becleared, similar to the UK ‘bank sort code’chequecheque /tʃek/ noun a note to a bank askingthem to pay money from your account to the

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43 claimaccount of the person whose name is writtenon the note � a cheque for £10 or a £10cheque (NOTE: The US spelling is check.)cheque accountcheque account /�tʃek ə|�kaυnt/ nounsame as current accountcheque bookcheque book /�tʃek bυk/ noun a bookletwith new blank cheques (NOTE: The usualUS term is checkbook.)cheque cardcheque card /�tʃek kɑ�d/, cheque guar-antee card /�tʃek ���rən|�ti� kɑ�d/ noun aplastic card from a bank which guaranteespayment of a cheque up to some amount,even if the user has no money in his accountcheque requisitioncheque requisition /�tʃek�rekwiziʃ(ə)n/ noun an official note from adepartment to the company accounts staffasking for a cheque to be writtencheque stubcheque stub /�tʃek st�b/ noun a piece ofpaper left in a cheque book after a chequehas been written and taken outcheque to bearercheque to bearer /�tʃek tə �beərə/ nouna cheque with no name written on it, so thatthe person who holds it can cash itchief executivechief executive /�tʃi�f i�|�zekjυtiv/,chief executive officer /�tʃi�f i� |�zekjυtiv�ɒfisə/ noun the most important director incharge of a company. Abbreviation CEOchief financial officerchief financial officer /�tʃi�f fai|

�n�nʃəl �ɒfisə/ noun an executive in chargeof a company’s financial operations, report-ing to the CEO. Abbreviation CFOchief investment officerchief investment officer /�tʃi�f in |

�vestmənt �ɒfisə/ noun a senior managerresponsible for monitoring a company’sinvestment portfoliochief operating officerchief operating officer /tʃi�f�ɒpəreitiŋ �ɒfisə/ noun a director in chargeof all a company’s operations (same as a‘managing director’). Abbreviation COOChief Secretary to the TreasuryChief Secretary to the Treasury/�tʃi�f �sekrətri tə ðə �tre (ə)ri/ noun agovernment minister responsible to theChancellor of the Exchequer for the controlof public expenditure (NOTE: In the USA,this is the responsibility of the Director ofthe Budget.)Chinese wallsChinese walls /�tʃaini�z �wɔ�lz/ pluralnoun imaginary barriers between depart-ments in the same organisation, set up toavoid insider dealing or conflict of interest.For example, if a merchant bank is advisingon a planned takeover bid, its investmentdepartment should not know that the bid istaking place, or they would advise their cli-ents to invest in the company being takenover.chopchop /tʃɒp/ noun a mark made on a docu-ment to show that it has been agreed,

acknowledged, paid or that payment hasbeen receivedchosechose /tʃəυz/ phrase a French wordmeaning ‘item’ or ‘thing’chose in actionchose in action /�tʃəυz in ��kʃən/ nounthe legal term for a personal right which canbe enforced or claimed as if it were property,e.g. a patent, copyright or debtchose in possessionchose in possession /�tʃəυz in pə|

�zeʃ(ə)n/ the legal term for a physical thingwhich can be owned, such as a piece of fur-nitureChristmas bonusChristmas bonus /�krisməs �bəυnəs/noun an extra payment made to staff atChristmaschronological orderchronological order /�krɒnəlɒd ik(ə)l�ɔ�də/ noun the arrangement of records suchas files and invoices in order of their datesCICACICA abbreviation Canadian Institute ofChartered AccountantsCIMACIMA /�si�mə/ abbreviation CharteredInstitute of Management AccountantsCIPFACIPFA noun a leading professionalaccountancy body in the UK, specialising inthe public services. Full form CharteredInstitute of Public Finance and Account-ancycircularisation of debtorscircularisation of debtors/�s��kjυləraizeiʃ(ə)n əv �detəz/ noun thesending of letters by a company’s auditors todebtors in order to verify the existence andextent of the company’s assetscircular letter of creditcircular letter of credit /�s��kjυlə�letər əv �kredit/ noun a letter of credit sentto all branches of the bank which issues itcirculating capitalcirculating capital /�s��kjυleitiŋ�k�pit(ə)l/ noun capital in the form of cashor debtors, raw materials, finished productsand work in progress which a companyrequires to carry on its businesscirculation of capitalcirculation of capital /�s��kjυleiʃ(ə)nəv �k�pit(ə)l/ noun a movement of capitalfrom one investment to anotherCity Panel on Takeovers and MergersCity Panel on Takeovers and Merg-ers /�siti �p�n(ə)l ɒn �teikəυvəz ən�m��d əz/ noun same as Takeover Panelcivil actioncivil action /�siv(ə)l ��kʃən/ noun a courtcase brought by a person or a companyagainst someone who has done them wrongclaimclaim /kleim/ noun an act of asking forsomething that you feel you have a right to� verb 1. to ask for money, especially froman insurance company � He claimed£100,000 damages against the cleaningfirm. � She claimed for repairs to the caragainst her insurance policy. 2. to say thatyou have a right to something or that some-

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claim form 44thing is your property � She is claiming pos-session of the house. � No one claimed theumbrella found in my office. 3. to state thatsomething is a fact � He claims he neverreceived the goods. � She claims that theshares are her property.claim formclaim form /�kleim fɔ�m/ noun a formwhich has to be filled in when making aninsurance claimclaims departmentclaims department /�kleimz di|

�pɑ�tmənt/ noun a department of an insur-ance company which deals with claimsclaims managerclaims manager /�kleimz �m�nid ə/noun the manager of a claims departmentclassical system of corporation taxclassical system of corporation tax/�kl�sik(ə)l �sistəm əv �kɔ�pə|�reiʃ(ə)n�t�ks/ noun a system in which companiesand their owners are liable for corporationtax as separate entities. A company’s taxedincome is therefore paid out to shareholderswho are in turn taxed again. This systemoperates in the United States and the Nether-lands. It was replaced in the United King-dom in 1973 by an imputation system.classification of assetsclassification of assets/�kl�sifikeiʃ(ə)n əv ��sets/ noun the proc-ess of listing a company’s assets underappropriate categoriesclassification of liabilitiesclassification of liabilities/�kl�sifikeiʃ(ə)n əv �laiə|�bilitiz/ noun theprocess of classifying liabilities by the dateor period when they are dueclassified stockclassified stock /�kl�sifaid stɒk/ nouna company’s common stock when it isdivided into categoriesclassifyclassify /�kl�sifai/ verb to put into classesor categories according to specific charac-teristics (NOTE: classifies – classifying –classified)class of assetsclass of assets /�klɑ�s əv ��sets/ nounthe grouping of similar assets into catego-ries. This is done because under Interna-tional Accounting Standards Committeerules, tangible assets and intangible assetscannot be revalued on an individual basis,only for a class of assets.clauseclause /klɔ�z/ noun a section of a contract� There are ten clauses in the contract ofemployment. � There is a clause in this con-tract concerning the employer’s right to dis-miss an employee. � verb to list details ofthe relevant parties to a bill of exchangeclaw backclaw back /�klɔ� �b�k/ verb to take backmoney which has been allocated � Incometax claws back 25% of pensions paid out bythe government. � Of the £1m allocated tothe project, the government clawed back£100,000 in taxes.

clawbackclawback /�klɔ�b�k/ noun 1. money takenback, especially money taken back by thegovernment from grants or tax concessionswhich had previously been made 2. the allo-cation of new shares to existing sharehold-ers, so as to maintain the value of their hold-ingsclean floatclean float /�kli�n fləυt/ noun an act offloating a currency freely on the interna-tional markets, without any interferencefrom the governmentclean opinionclean opinion /�kli�n ə|�pinjən/, cleanreport /�kli�n ri|�pɔ�t/ noun an auditor’sreport that is not qualifiedclearance certificateclearance certificate /�kliərəns sə|

�tifikət/ noun a document showing thatgoods have been passed by customsclearance saleclearance sale /�kliərəns seil/ noun asale of items at low prices to get rid of stockclearingclearing /�kliəriŋ/ noun 1. � clearing of adebt paying all of a debt 2. � clearing ofgoods through customs passing of goodsthrough customs 3. an act of passing of acheque through the banking system, trans-ferring money from one account to anotherclearing accountclearing account /�kliəriŋ ə|�kaυnt/noun a temporary account containingamounts to be transferred to other accountsat a later dateclearing agencyclearing agency /�kliəriŋ �eid ənsi/noun US central office where stockexchange or commodity exchange transac-tions are settled (NOTE: The UK term isclearing house.)clearing bankclearing bank /�kliəriŋ b�ŋk/ noun abank which clears cheques, especially oneof the major UK High Street banks, special-ising in usual banking business for ordinarycustomers, such as loans, cheques, over-drafts and interest-bearing depositsclearing houseclearing house /�kliəriŋ haυs/ noun acentral office where clearing banksexchange cheques, or where stock exchangeor commodity exchange transactions are set-tledClearing House Automated Payments SystemClearing House Automated Pay-ments System /�kliəriŋ haυs�ɔ�təmeitid �peimənts �sistəm/ noun fullform of CHAPSclearing systemclearing system /�kliəriŋ �sistəm/ nounthe system of processing payments usingphone and internet, operated in the UK bythe Association for Payment Clearing Serv-ices, an organisation owned by 39 majorbanks and building societiesclear profitclear profit /�kliə �prɒfit/ noun a profitafter all expenses have been paid � We made$6,000 clear profit on the deal.

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45 co-creditorclerical errorclerical error /�klerik(ə)l �erə/ noun amistake made by someone doing office workclientclient /�klaiənt/ noun a person with whombusiness is done or who pays for a service �One of our major clients has defaulted onher payments.client accountclient account /�klaiənt ə|�kaυnt/ noun abank account opened by a solicitor or estateagent to hold money on behalf of a clientclienteleclientele /�kli�ɒn|�tel/ noun all the clientsof a business or all the customers of a shopcloseclose /kləυz/ verb 1. � to close theaccounts to come to the end of an account-ing period and make up the profit and lossaccount 2. to bring something to an end �she closed her building society accountshe took all the money out and stopped usingthe accountclose companyclose company /�kləυs �k�mp(ə)ni/noun a privately owned company controlledby a few shareholders (in the UK, fewer thanfive) where the public may own a smallnumber of the shares (NOTE: The US term isclose corporation or closed corpora-tion.)closed economyclosed economy /�kləυzd i|�kɒnəmi/noun a type of economy where trade andfinancial dealings are tightly controlled bythe governmentclosed-end creditclosed-end credit /�kləυzd end �kredit/noun a loan, plus any interest and financecharges, that is to be repaid in full by a spec-ified future date. Loans that have property ormotor vehicles as collateral are usuallyclosed-end. � revolving credit (NOTE: Mostloans for the purchase of property or motorvehicles are closed-end credits.)closed-end fundclosed-end fund /�kləυzd end �f�nd/noun an investment fund shares in whichcan only be bought and sold on the openmarketclosed fundclosed fund /�kləυzd �f�nd/ noun a fund,such as an investment trust, where the inves-tor buys shares in the trust and receives div-idends. This is as opposed to an open-endedtrust, such as a unit trust, where the investorbuys units, and the investment is used to pur-chase further securities for the trust.closed marketclosed market /�kləυzd �mɑ�kit/ noun amarket where a supplier deals only with oneagent or distributor and does not supply anyothers direct � They signed a closed-marketagreement with an Egyptian company.close-endedclose-ended /�kləυs �endid/, closed-end /�kləυzd end/ adjective referring to aninvestment which has a fixed capital, such asan investment trust

closely heldclosely held /�kləυsli �held/ adjectivereferring to shares in a company which arecontrolled by only a few shareholdersclose offclose off /�kləυz �ɒf/ verb to come to theend of an accounting period and make up theprofit and loss accountclosingclosing /�kləυziŋ/ adjective 1. final orcoming at the end 2. at the end of anaccounting period � At the end of the quar-ter the bookkeeper has to calculate the clos-ing balance. � noun � the closing of anaccount the act of stopping supply to a cus-tomer on creditclosing balanceclosing balance /�kləυziŋ �b�ləns/noun the balance at the end of an accountingperiodclosing-down saleclosing-down sale /�kləυziŋ �daυn�seil/ noun the sale of goods when a shop isclosing for everclosing entriesclosing entries /�kləυziŋ �entriz/ nounin a double-entry bookkeeping system,entries made at the very end of an account-ing period to balance the expense and reve-nue ledgersclosing outclosing out /�kləυziŋ �aυt/ noun US theact of selling goods cheaply to try to get ridof themclosing rateclosing rate /�kləυziŋ reit/ noun theexchange rate of two or more currencies atthe close of business of a balance sheet date,e.g. at the end of the financial yearclosing-rate methodclosing-rate method /�kləυziŋ reit�meθəd/ noun a technique for translating thefigures from a set of financial statementsinto a different currency using the closingrate. This method is often used for theaccounts of a foreign subsidiary of a parentcompany.closing stockclosing stock /�kləυziŋ �stɒk/ noun abusiness’s remaining stock at the end of anaccounting period. It includes finished prod-ucts, raw materials, or work in progress andis deducted from the period’s costs in thebalance sheets. � At the end of the month theclosing stock was 10% higher than at theend of the previous month.closureclosure /�kləυ ə/ noun the act of closingC/NC/N abbreviation credit noteCNCCCNCC abbreviation Compagnie Nationaledes Commissaires aux Comptesco-co- /kəυ/ prefix working or acting togetherCoCoACoCoA abbreviation continuously contem-porary accountingco-creditorco-creditor /�kəυ �kreditə/ noun a personwho is a creditor of the same company asyou are

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code 46codecode /kəυd/ noun 1. a system of signs,numbers, or letters which mean something2. a set of rulescode of practicecode of practice /�kəυd əv �pr�ktis/noun 1. rules drawn up by an associationwhich the members must follow when doingbusiness 2. the formally established ways inwhich members of a profession agree towork � Advertisers have agreed to abide bythe code of practice set out by the advertis-ing council.codicilcodicil /�kəυdisil/ noun a document exe-cuted in the same way as a will, makingadditions or changes to an existing willcodingcoding /�kəυdiŋ/ noun the act of putting acode on something � the coding of invoicescoding of accountscoding of accounts /�kəυdiŋ əv ə|

�kaυnts/ noun the practice of assigningcodes to the individual accounts that makeup the accounting system of a large com-panyco-directorco-director /�kəυ dai |�rektə/ noun a per-son who is a director of the same companyas youcoefficient of variationcoefficient of variation /�kəυifiʃ(ə)ntəv �veəri|�eiʃ(ə)n/ noun a measure of thespread of statistical data, which is equal tothe standard deviation multiplied by 100co-financingco-financing /�kəυ �fain�nsiŋ/ noun theact of arranging finance for a project from aseries of sourcescold startcold start /�kəυld �stɑ�t/ noun the act ofbeginning a new business or opening a newshop with no previous turnover to base it oncollateralcollateral /kə|�l�t(ə)rəl/ noun a security,such as negotiable instruments, shares orgoods, used to provide a guarantee for a loan

‘…examiners have come to inspect thecollateral that thrifts may use in borrowingfrom the Fed’ [Wall Street Journal]

collateralisationcollateralisation /kə|�l�t(ə)rəlai|

�zeiʃ(ə)n/ noun the act of securing a debt byselling long-term receivables to anothercompany which secures them on the debtscollateralisecollateralise /kə|�l�t(ə)rəlaiz/, collater-alize verb to secure a debt by means of a col-lateralcollectcollect /kə|�lekt/ verb 1. to get moneywhich is owed to you by making the personwho owes it pay 2. to take things away froma place � We have to collect the stock fromthe warehouse. � adverb, adjective used todescribe a phone call which the personreceiving the call agrees to pay forcollectibilitycollectibility /kə|�lekti|�biliti/ noun abilityof cash owed to be collected

collecting agencycollecting agency /kə|�lektiŋ �eid ənsi/noun an agency which collects money owedto other companies for a commissioncollecting bankcollecting bank /kə|�lektiŋ b�ŋk/ nouna bank into which a person has deposited acheque, and which has the duty to collect themoney from the account of the writer of thechequecollection periodcollection period /kə|�lekʃən �piəriəd/noun the number of days it takes a companyto collect money owingcollection ratiocollection ratio /kə|�lekʃən �reiʃiəυ/noun the average number of days it takes afirm to convert its accounts receivable intocash. Also known as days’ sales outstand-ingcollectionscollections /kə|�lekʃənz/ plural nounmoney which has been collectedcollective investmentcollective investment /kə|�lektiv in |

�vestmənt/ noun the practice of investingmoney with other individuals or organisa-tions in order to share costs and riskcollectorcollector /kə |�lektə/ noun a person whomakes people pay money which is owed �He works as a debt collector.columncolumn /�kɒləm/ noun a series of numbersarranged one underneath the other � to addup a column of figures � Put the total at thebottom of the column.combined financial statementcombined financial statement /kəm|

�baind fai|�n�nʃəl �steitmənt/ noun awritten record covering the assets, liabili-ties, net worth and operating statement oftwo or more related or affiliated companiescomfort lettercomfort letter /�k�mfət �letə/ noun 1. inthe United States, an accountant’s statementconfirming that the unaudited financialinformation in a prospectus follows GAAP2. a letter from a parent company to a lenderassuring the lender that a subsidiary com-pany that has applied for a loan will be sup-ported by the parent in its efforts to stay inbusinesscommand economycommand economy /kə|�mɑ�nd i|

�kɒnəmi/ noun same as planned economycommercecommerce /�kɒm��s/ noun the buyingand selling of goods and servicescommercialcommercial /kə|�m��ʃ(ə)l/ adjective 1.referring to business 2. profitablecommercial bankcommercial bank /kə|�m��ʃ(ə)l b�ŋk/noun a bank which offers banking servicesto the public, as opposed to a merchant bankcommercial billcommercial bill /kə|�m��ʃ(ə)l �bil/ nouna bill of exchange issued by a company (atrade bill) or accepted by a bank (a bankbill), as opposed to a Treasury bill, which isissued by the government

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47 committeecommercial directorycommercial directory /kə|�m��ʃ(ə)l dai|

�rekt(ə)ri/ noun a book which lists all thebusinesses and business people in a towncommercial failurecommercial failure /kə|�m��ʃ(ə)l�feiljə/ noun financial collapse or bank-ruptcycommercial lawcommercial law /kə|�m��ʃ(ə)l �lɔ�/ nounthe laws regarding the conduct of businessescommercial lawyercommercial lawyer /kə|�m��ʃ(ə)l �lɔ�jə/noun a person who specialises in companylaw or who advises companies on legalproblemscommercial loancommercial loan /kə|�m��ʃ(ə)l �ləυn/noun a short-term renewable loan or line ofcredit used to finance the seasonal or cycli-cal working capital needs of a companycommerciallycommercially /kə|�m��ʃ(ə)li/ adverb 1.for the purpose of making a profit 2. in theoperation of a businesscommercial papercommercial paper /kə|�m��ʃ(ə)l �peipə/noun an IOU issued by a company to raise ashort-term loan. Abbreviation CPcommercial propertycommercial property /kə|�m��ʃ(ə)l�prɒpəti/ noun a building, or buildings,used as offices or shopscommercial reportcommercial report /kə|�m��ʃ(ə)l ri|

�pɔ�t/ noun an investigative report made byan organisation such as a credit bureau thatspecialises in obtaining information regard-ing a person or organisation applying forsomething such as credit or employmentcommercial substancecommercial substance /kə|�m��ʃ(ə)l�s�bstəns/ noun the economic reality thatunderlies a transaction or arrangement,regardless of its legal or technical denomi-nation. For example, a company may sell anoffice block and then immediately lease itback: the commercial substance may be thatit has not been sold.commercial yearcommercial year /kə|�m��ʃ(ə)l �jiə/noun an artificial year treated as having 12months of 30 days each, used for calculatingsuch things as monthly sales data and inven-tory levelscommissioncommission /kə|�miʃ(ə)n/ noun 1. moneypaid to a salesperson or agent, usually a per-centage of the sales made � She gets 10%commission on everything she sells. � He ispaid on a commission basis. 2. a group ofpeople officially appointed to examine someproblem � He is the chairman of the govern-ment commission on export subsidies.commission agentcommission agent /kə|�miʃ(ə)n�eid ənt/ noun an agent who is paid a per-centage of salescommissionercommissioner /kə|�miʃ(ə)nə/ noun anombudsman

Commissioner of the Inland RevenueCommissioner of the Inland Reve-nue /kə|�miʃ(ə)nəz əv θi� �inlənd�revənju�/ noun same as Appeals Com-missionercommission housecommission house /kə|�miʃ(ə)n haυs/noun a firm which buys or sells for clients,and charges a commission for this servicecommission repcommission rep /kə|�miʃ(ə)n rep/ nouna representative who is not paid a salary butreceives a commission on salescommitcommit /kə|�mit/ verb � to commit your-self to to guarantee something, especially aloan issue, or to guarantee to do somethingcommitmentcommitment /kə|�mitmənt/ noun some-thing which you have agreed to do � to makea commitment or to enter into a commitmentto do something � The company has a com-mitment to provide a cheap service.commitment documentcommitment document /kə|�mitmənt�dɒkjυmənt/ noun a contract, change order,purchase order or letter of intent which dealswith the supply of goods and services andcommits an organisation to legal, financialand other obligationscommitment feecommitment fee /kə |�mitmənt fi�/ nouna fee paid to a bank which has arranged aline of credit which has not been fully usedcommitments basiscommitments basis /kə|�mitmənts�beisis/ noun the method of recording theexpenditure of a public sector organisationat the time when it commits itself to it ratherthan when it actually pays for itcommitments for capital expenditurecommitments for capital expendi-ture /kə|�mitmənts fə �k�pit(ə)l ik|

�spenditʃə/ plural noun the amount a com-pany has committed to spend on fixed assetsin the future. In the United Kingdom, com-panies are legally obliged to disclose thisamount, and any additional commitments, intheir annual report.committed credit linescommitted credit lines /kə|�mitid�kredit �lainz/ plural noun a bank’s agree-ment to provide a loan on the borrower’srequest, with a fee paid by the borrower forany undrawn portion of the agreed loanCommittee of European Securities RegulatorsCommittee of European SecuritiesRegulators /kə|�miti əv �jυərəpi�ən si|

�kjυəritiz �re�jυleitəz/ noun an independ-ent organisation of securities regulatorsestablished to promote consistent supervi-sion of the European market for financialservicescommitteeCommittee on Accounting Proce-dure /kə|�miti ɒn ə|�kaυntiŋ prə|�si�d ə/noun in the United States, a committee ofthe American Institute of Certified PublicAccountants that was responsible between1939 and 1959 for issuing accounting prin-

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commodity 48ciples, some of which are still part of theGenerally Accepted Accounting Principlescommoditycommodity /kə|�mɒditi/ noun somethingsold in very large quantities, especially araw material such as a metal or a food suchas wheatcommodity exchangecommodity exchange /kə |�mɒditi iks|

�tʃeind / noun a place where commoditiesare bought and soldcommodity futurescommodity futures /kə |�mɒditi�fju�tʃəz/ plural noun commodities tradedfor delivery at a later date � Silver rose 5%on the commodity futures market yesterday.commodity marketcommodity market /kə |�mɒditi�mɑ�kit/ noun a place where people buy andsell commoditiescommodity tradercommodity trader /kə|�mɒditi �treidə/noun a person whose business is buying andselling commoditiescommon costcommon cost /�kɒmən �kɒst/ noun acost which is apportioned to two or morecost centrescommon ownershipcommon ownership /�kɒmən�əυnəʃip/ noun a situation where a businessis owned by the employees who work in itcommon pricingcommon pricing /�kɒmən �praisiŋ/noun the illegal fixing of prices by severalbusinesses so that they all charge the samepricecommon stockcommon stock /�kɒmən �stɒk/ noun USsame as ordinary sharesCompagnie Nationale des Commissaires aux ComptesCompagnie Nationale des Commis-saires aux Comptes /�kɒmp�ni�n�ʃənɑ�l dei �kɒmiseəz əυ �kɒmt/ nounin France, an organisation that regulatesexternal audit. Abbreviation CNCCCompanies HouseCompanies House /�k�mpəniz �haυs/noun an official organisation where therecords of companies must be deposited, sothat they can be inspected by the public. Theofficial name is the ‘Companies RegistrationOffice’.Companies Registration OfficeCompanies Registration Office/�k�mp(ə)niz �red i|�streiʃ(ə)n �ɒfis/ nounan office of the Registrar of Companies, theofficial organisation where the records ofcompanies must be deposited, so that theycan be inspected by the public. AbbreviationCRO. Also called Companies Housecompanycompany /�k�mp(ə)ni/ noun a businessorganisation, a group of people organised tobuy, sell, or provide a service, usually forprofitcompany auditorcompany auditor /�k�mp(ə)ni �ɔ�ditə/noun the individual or firm of accountants acompany appoints to audit its annualaccounts

company carcompany car /�k�mp(ə)ni �kɑ�/ noun acar which belongs to a company and is lentto an employee to use for business or otherpurposescompany directorcompany director /�k�mp(ə)ni dai|

�rektə/ noun a person appointed by theshareholders to help run a companycompany flatcompany flat /�k�mp(ə)ni �fl�t/ noun aflat owned by a company and used by mem-bers of staff from time to time (NOTE: TheUS term is company apartment.)company lawcompany law /�k�mp(ə)ni �lɔ�/ nounlaws which refer to the way companies workcompany pension schemecompany pension scheme/�k�mp(ə)ni �penʃən ski�m/ noun same asoccupational pension scheme � Shedecided to join the company’s pensionscheme.company promotercompany promoter /�k�mp(ə)ni prə |

�məυtə/ noun a person who organises thesetting up of a new companycompany registrarcompany registrar /�k�mp(ə)ni�red istrɑ�/ noun the person who keeps theshare register of a companycompany reservescompany reserves /�k�mp(ə)ni ri|

�z��vz/ plural noun same as revenuereservescompany secretarycompany secretary /�k�mp(ə)ni�sekrit(ə)ri/ noun a person who is responsi-ble for a company’s legal and financialaffairscomparabilitycomparability /�kɒmp(ə)rə|�biliti/ nounthe extent to which accurate comparisonscan be made of the financial status of differ-ent companies, based on similarities in theiraccounting procedures, measurement con-cepts and other featurescomparative balance sheetcomparative balance sheet /kəm|

�p�rətiv �b�ləns ʃi�t/ noun one of two ormore financial statements prepared on dif-ferent dates that lend themselves to a com-parative analysis of the financial conditionof an organisationcomparative statementscomparative statements /kəm|

�p�rətiv �steitmənts/ plural noun finan-cial statements which cover differentaccounting periods, usually the previousaccounting period, but which are prepared inthe same way and therefore allow informa-tion to be fairly comparedcompensatecompensate /�kɒmpənseit/ verb to givesomeone money to make up for a loss orinjury � In this case we will compensate amanager for loss of commission. � The com-pany will compensate the employee for theburns suffered in the accident. (NOTE: Youcompensate someone for something.)

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49 compliance testcompensating balancecompensating balance/�kɒmpənseitiŋ �b�ləns/ noun the amountof money which a customer has to keep in abank account in order to get free servicesfrom the bankcompensating errorscompensating errors /�kɒmpənseitiŋ�erəz/ plural noun two or more errors whichare set against each other so that theaccounts still balancecompensationcompensation /�kɒmpən|�seiʃ(ə)n/noun 1. � compensation for damage pay-ment for damage done � compensation forloss of office payment to a director who isasked to leave a company before their con-tract ends � compensation for loss of earn-ings payment to someone who has stoppedearning money or who is not able to earnmoney 2. US a salary

‘…compensation can also be via the mag-istrates courts for relatively minor injuries’[Personnel Management]

compensation dealcompensation deal /�kɒmpən|�seiʃ(ə)ndi�l/ noun a deal where an exporter is paid(at least in part) in goods from the country towhich he or she is exportingcompensation fundcompensation fund /�kɒmpən|�seiʃ(ə)nf�nd/ noun a fund operated by the StockExchange to compensate investors for lossessuffered when members of the StockExchange defaultcompensation packagecompensation package /�kɒmpən|

�seiʃ(ə)n �p�kid / noun the salary, pensionand other benefits offered with a job

‘…golden parachutes are liberal compen-sation packages given to executives leav-ing a company’ [Publishers Weekly]

competecompete /kəm |�pi�t/ verb � to competewith someone or with a company to try todo better than another person or anothercompany � We have to compete with cheapimports from the Far East. � They werecompeting unsuccessfully with local compa-nies on their home territory. � the two com-panies are competing for a market shareor for a contract each company is trying towin a larger part of the market, trying to winthe contractcompetitioncompetition /�kɒmpə|�tiʃ(ə)n/ noun a sit-uation where companies or individuals aretrying to do better than others, e.g. trying towin a larger share of the market, or to pro-duce a better or cheaper product or to controlthe use of resources

‘…profit margins in the industries mostexposed to foreign competition are worsethan usual’ [Sunday Times]‘…competition is steadily increasing andcould affect profit margins as the company

tries to retain its market share’ [Citizen(Ottawa)]

competitive devaluationcompetitive devaluation /kəm|�petitiv�di�v�lju|�eiʃ(ə)n/ noun a devaluation of acurrency to make a country’s goods morecompetitive on the international marketscompetitive pricingcompetitive pricing /kəm|�petitiv�praisiŋ/ noun the practice of putting lowprices on goods so as to compete with otherproductscompetitorcompetitor /kəm |�petitə/ noun a personor company that is competing with another� Two German firms are our main competi-tors.

‘…sterling labour costs continue to risebetween 3% and 5% a year faster than inmost of our competitor countries’ [SundayTimes]

completecomplete /kəm|�pli�t/ verb to sign a con-tract for the sale of a property and toexchange it with the other party, so makingit legalcompleted contract methodcompleted contract method /kəm|

�pli�tid �kɒntr�kt �meθəd/ noun a way ofaccounting for a particular contractual obli-gation, e.g., a long-term constructionproject, whereby the profit is not recordeduntil the final completion of the project,even if there has been some revenue whilethe project was still in progresscompletion datecompletion date /kəm|�pli�ʃ(ə)n deit/noun a date when something will be finishedcompliancecompliance /kəm |�plaiəns/ noun agree-ment to do what is orderedcompliance auditcompliance audit /kəm|�plaiəns �ɔ�dit/noun an audit of business activities carriedout to determine whether performancematches contractual, regulatory or statutoryrequirementscompliance costscompliance costs /kəm|�plaiəns kɒsts/plural noun expenses incurred as a result ofmeeting legal requirements, e.g., for safetyrequirements or to comply with companylawcompliance departmentcompliance department /kəm |�plaiənsdi |�pɑ�tmənt/ noun a department whichensures that the company is adhering to anyrelevant regulations, such as FSA regula-tionscompliance officercompliance officer /kəm |�plaiəns�ɒfisə/ noun an employee of a financialorganisation whose job is to make sure thatthe organisation complies with the regula-tions governing its businesscompliance testcompliance test /kəm|�plaiəns test/noun any of various audit procedures fol-lowed to ensure that accounting procedures

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composition 50within a company are reasonable and com-ply with regulationscompositioncomposition /�kɒmpə|�ziʃ(ə)n/ noun anagreement between a debtor and creditors,where the debtor settles a debt by repayingonly part of itcompoundcompound /kəm |�paυnd/ verb 1. to agreewith creditors to settle a debt by paying partof what is owed 2. to add to � The interest iscompounded daily.compound discountcompound discount /�kɒmpaυnd�diskaυnt/ noun the difference between thenominal amount of a particular sum in thefuture and its present discounted value. So,if £150 in a year’s time is worth £142 now,the compound discount is £8.compounding periodcompounding period /�kɒmpaυndiŋ�piəriəd/ noun the period over which com-pound interest is calculatedcompound interestcompound interest /�kɒmpaυnd�intrəst/ noun interest which is added to thecapital and then earns interest itselfcompound journal entrycompound journal entry /�kɒmpaυnd�d ��n(ə)l �entri/ noun an entry in a journalthat comprises more than individual equallymatched debit and credit itemscomprehensive incomecomprehensive income/�kɒmprihensiv �ink�m/ noun a com-pany’s total income for a given accountingperiod, taking into account all gains andlosses, not only those included in a normalincome statement. In the United States,comprehensive income must be declaredwhereas in the United Kingdom it appears inthe statement of total recognised gains andlosses.comprehensive insurancecomprehensive insurance/�kɒmprihensiv in|�ʃυərəns/, comprehen-sive policy /�kɒmprihensiv �pɒlisi/ nounan insurance policy which covers youagainst all risks which are likely to happencomprehensive tax allocationcomprehensive tax allocation/�kɒmprihensiv �t�ks ��ləkeiʃ(ə)n/ nounthe setting aside of money to cover deferredtaxcompromisecompromise /�kɒmprəmaiz/ noun anagreement between two sides, where eachside gives way a little � Managementoffered £5 an hour, the union asked for £9,and a compromise of £7.50 was reached. �verb to reach an agreement by giving way alittle � She asked £15 for it, I offered £7 andwe compromised on £10.comptrollercomptroller /kən|�trəυlə/ noun a financialcontrollerComptroller and Auditor GeneralComptroller and Auditor General/kən|�trəυlə ənd �ɔ�ditə �d en(ə)rəl/ nounin the United Kingdom, the head of the

National Audit Office who reports back toParliament on the audit of governmentdepartmentscompulsory annuitycompulsory annuity /kəm|�p�lsəri ə|

�nju�iti/ noun in the United Kingdom, thelegal requirement that at least 75% of thefunds built-up in a personal pension planhave to be used to purchase an annuity bythe age of 75compulsory liquidationcompulsory liquidation /kəm|�p�lsəri�likwi|�deiʃ(ə)n/ noun same as compul-sory winding upcompulsory purchasecompulsory purchase /kəm|�p�lsəri�p��tʃis/ noun the purchase of an annuitywith the fund built up in a personal pensionschemecompulsory winding upcompulsory winding up /kəm|�p�lsəri�waindiŋ ��p/ noun liquidation which isordered by a courtcompulsory winding up ordercompulsory winding up order /kəm|

�p�lsəri �waindiŋ ��p �ɔ�də/ noun an orderfrom a court saying that a company must bewound upcomputablecomputable /kəm |�pju�təb(ə)l/ adjectivepossible to calculatecomputationcomputation /�kɒmpjυ|�teiʃ(ə)n/ noun acalculationcomputational errorcomputational error/�kɒmpjυteiʃ(ə)nəl �erə/ noun a mistakemade in calculatingcomputecompute /kəm |�pju�t/ verb to calculate, todo calculationscomputerisecomputerise /kəm|�pju�təraiz/, compu-terize verb to change something from amanual system to one using computers � Wehave computerised all our records. � Stockcontrol is now completely computerised.concealment of assetsconcealment of assets /kən|�si�lməntəv ��sets/ noun the act of hiding assets sothat creditors do not know they existconceptconcept /�kɒnsept/ noun an idea � con-cept of capital maintenance the idea thatprofit is only recorded if the capital of thecompany, measured in terms of its net assets,increases during an accounting period.Assets can be measured at historical cost orin units of constant purchasing power. �concept of maintenance of operatingcapacity the concept of capital maintenancemeasured in terms of the changes in the cur-rent values of fixed assets, stock and work-ing capital. Profit can only be taken if thetotal value of these assets, called the ‘netoperating assets’, including adjustments forchanges in prices affecting these assets,increases during an accounting period.conceptual frameworkconceptual framework /kən|�septʃuəl�freimw��k/ noun a set of theoretical prin-

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51 consignmentciples that underlies the practice and regula-tion of financial accounting. In the UnitedStates, this is expressed in the Statements ofFinancial Accounting Concepts issued bythe Financial Accounting Standards Board.In the United Kingdom, it is expressed in theStatement of Principles issued by theAccounting Standards Board.concernconcern /kən|�s��n/ noun a business orcompanyconcessionconcession /kən|�seʃ(ə)n/ noun 1. theright to use someone else’s property forbusiness purposes 2. the right to be the onlyseller of a product in a place � She runs ajewellery concession in a department store.3. an allowance, e.g. a reduction of tax orpriceconcessionaireconcessionaire /kən|�seʃə|�neə/ noun aperson or business that has the right to be theonly seller of a product in a placeconcessionary fareconcessionary fare /kən|�seʃ(ə)nəri�feə/ noun a reduced fare for some types ofpassenger such as pensioners, students oremployees of a transport companyconciliationconciliation /kən|�sili|�eiʃ(ə)n/ noun thepractice of bringing together the parties in adispute with an independent third party, sothat the dispute can be settled through aseries of negotiationsconditioncondition /kən|�diʃ(ə)n/ noun somethingwhich has to be carried out as part of a con-tract or which has to be agreed before a con-tract becomes validconditionalconditional /kən |�diʃ(ə)n(ə)l/ adjectiveprovided that specific conditions are takeninto accountconditionalityconditionality /kən|�diʃ(ə)|�nliti/ nounthe fact of having conditions attachedconditional saleconditional sale /kən|�diʃ(ə)nəl �seil/noun a sale which is subject to conditions,such as a hire-purchase agreementconditions of employmentconditions of employment /kən|

�diʃ(ə)nz əv im |�plɔimənt/ plural noun theterms of a contract of employmentconditions of saleconditions of sale /kən|�diʃ(ə)nz əv�seil/ plural noun special features that applyto a particular sale, e.g. discounts or credittermsConfederation of Asian and Pacific AccountantsConfederation of Asian and PacificAccountants /kən|�fedəreiʃ(ə)n əv�ei�(ə)n ən pə|�sifik ə |�kaυntənts/ nounfull form of CAPAconfidential reportconfidential report /�kɒnfidenʃəl ri|

�pɔ�t/ noun a secret document which mustnot be shown to other peopleconflict of interestconflict of interest /�kɒnflikt əv�intrəst/ noun a situation where a person or

firm may profit personally from decisionstaken in an official capacityconglomerateconglomerate /kən|��lɒmərət/ noun agroup of subsidiary companies linkedtogether and forming a group, each makingvery different types of productsconnected personsconnected persons /kə|�nektid�p��s(ə)nz/ plural noun for purposes of dis-closure under the UK Companies Act, cer-tain people who are related to or connectedwith members of the board of directors,including his or her spouse and childrenConseil National de la ComptabilitéConseil National de la Comptabilité/kɒn|�sei �nʃənɑ�l də �kɒmt |�bilitei/noun in France, a committee appointed bythe government that is responsible for draw-ing up the Plan Comptable Général (GeneralAccounting Plan)consensus ad idemconsensus ad idem /kən|�sensəs d�aidem/ phrase a Latin phrase meaning‘agreement to this same thing’: real agree-ment to a contract by both partiesconservativeconservative /kən|�s��vətiv/ adjectivecareful, not overestimating � His forecast ofexpenditure was very conservative or Shemade a conservative forecast of expenditure.

‘…we are calculating our next budgetincome at an oil price of $15 per barrel.We know it is a conservative projection,but we do not want to come in for a shockshould prices dive at any time during theyear’ [Lloyd’s List]

conservativelyconservatively /kən|�s��vətivli/ adverbnot overestimating � The total sales areconservatively estimated at £2.3m.considerationconsideration /kən|�sidə|�reiʃ(ə)n/ noun1. serious thought � We are giving consider-ation to moving the head office to Scotland.2. something valuable exchanged as part ofa contractconsignconsign /kən|�sain/ verb � to consigngoods to someone to send goods to some-one for them to use or to sell for youconsignationconsignation /�kɒnsai |�neiʃ(ə)n/ nounthe act of consigningconsigneeconsignee /�kɒnsai|�ni�/ noun a personwho receives goods from someone for theirown use or to sell for the senderconsignmentconsignment /kən|�sainmənt/ noun 1.the sending of goods to someone who willsell them for you 2. a group of goods sent forsale � A consignment of goods has arrived.� We are expecting a consignment of carsfrom Japan.

‘…some of the most prominent stores aregradually moving away from the tradi-tional consignment system, under whichmanufacturers agree to repurchase any

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consignment accounts 52unsold goods, and in return dictate pricesand sales strategies and even dispatch staffto sell the products’ [Nikkei Weekly]

consignment accountsconsignment accounts /kən |

�sainmənt ə|�kaυnts/ plural noun accountskept by both consignee and consignor,showing quantities, dates of shipment, andpayments for stocks heldconsignment noteconsignment note /kən|�sainməntnəυt/ noun a note saying that goods havebeen sentconsignorconsignor /kən|�sainə/ noun a personwho consigns goods to someoneconsistencyconsistency /kən|�sistənsi/ noun one ofthe basic accounting concepts, that items inthe accounts should be treated in the sameway from year to yearconsolidateconsolidate /kən|�sɒlideit/ verb 1. toinclude the accounts of several subsidiarycompanies as well as the holding companyin a single set of accounts 2. to group goodstogether for shippingconsolidated accountsconsolidated accounts /kən |

�sɒlideitid ə|�kaυnts/ plural noun accountswhere the financial position of several dif-ferent companies, i.e. a holding companyand its subsidiaries, are recorded togetherconsolidated balance sheetconsolidated balance sheet /kən |

�sɒlideitid �b�ləns ʃi�t/ noun the balancesheets of subsidiary companies groupedtogether into the balance sheet of the parentcompany. Also called group balance sheetconsolidated cash flow statementconsolidated cash flow statement/kən|�sɒlideitid �k�ʃ fləυ �steitmənt/noun a cash flow statement for a group ofenterprises and its parent company as awholeconsolidated financial statementconsolidated financial statement/kən|�sɒlideitid fai|�n�nʃəl �steitmənt/noun a document that gives the main detailsof the financial status of a company and itssubsidiaries. Also called group financialstatementconsolidated fundconsolidated fund /kən|�sɒlideitid�f�nd/ noun money in the Exchequer whichcomes from tax revenues and is used to payfor government expenditureconsolidated income statementconsolidated income statement /kən |

�sɒlideitid �ink�m �steitmənt/ noun anincome statement for a group of enterprisesand its parent company as a wholeconsolidated profit and loss accountconsolidated profit and lossaccount /kən|�sɒlideitid �prɒfit ən �lɒs ə |

�kaυnt/ noun profit and loss accounts of theholding company and its subsidiary compa-nies, grouped together into a single profitand loss account (NOTE: The US term is

profit and loss statement or incomestatement.)consolidationconsolidation /kən|�sɒli|�deiʃ(ə)n/ noun1. the grouping together of goods for ship-ping 2. the act of taking profits from specu-lative investments and investing them safelyin blue-chip companiesconsolidation adjustmentsconsolidation adjustments /kən|�sɒli|

�deiʃ(ə)n ə|�d �stmənts/ plural noun nec-essary changes and deletions made to finan-cial records when consolidating theaccounts of a group of enterprisesconsolidation differenceconsolidation difference /kən|�sɒli|

�deiʃ(ə)n �dif(ə)rəns/ noun the differencebetween the price paid for a subsidiary andthe value of the assets and liabilitiesobtained in the purchaseconsolsconsols /�kɒnsɒlz/ plural noun govern-ment bonds which pay interest but do nothave a maturity dateconsortiumconsortium /kən|�sɔ�tiəm/ noun a groupof companies which work together � A con-sortium of Canadian companies or A Cana-dian consortium has tendered for the job.(NOTE: The plural is consortia.)

‘…the consortium was one of only fourbidders for the £2 billion contract to runthe lines, seen as potentially the most dif-ficult contract because of the need for hugeinvestment’ [Times]

constant purchasing powerconstant purchasing power/�kɒnstənt �p��tʃisiŋ �paυə/ noun same ascurrent purchasing powerconstraintconstraint /kən|�streint/ noun any factorthat limits the activities of a business, e.g.the capacity of a machine or the number ofhours a worker can legally workconstraint-based costingconstraint-based costing /kən|

�streint beist �kɒstiŋ/ noun a costingmethod that takes account of restraints oncapacity, e.g. the capacity of machineryConsultative Committee of Accountancy BodiesConsultative Committee ofAccountancy Bodies /kən|�s�ltətiv kə|

�miti əv ə|�kaυntənsi �bɒdiz/ noun anorganisation established in 1974 that repre-sents and encourages coordination betweenthe six professional accountancy bodies inthe United Kingdom and Ireland. Abbrevia-tion CCABconsultingconsulting /kən|�s�ltiŋ/ adjective givingspecialist advice � a consulting engineerconsulting actuaryconsulting actuary /kən|�s�ltiŋ��ktjuəri/ noun an independent actuarywho advises large pension fundsconsumable goodsconsumable goods /kən|�sju�məb(ə)l��υdz/, consumables plural noun goodswhich are bought by members of the public

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53 continuous improvementand not by companies. Also called con-sumer goodsconsumed costconsumed cost /kən|�sju�md �kɒst/noun same as sunk costconsumerconsumer /kən|�sju�mə/ noun a person orcompany that buys and uses goods and serv-ices � Gas consumers are protesting at theincrease in prices. � The factory is a heavyconsumer of water.consumer councilconsumer council /kən|�sju�mə�kaυns(ə)l/ noun a group representing theinterests of consumersconsumer creditconsumer credit /kən|�sju�mə �kredit/noun credit given by shops, banks and otherfinancial institutions to consumers so thatthey can buy goods (NOTE: Lenders have tobe licensed under the Consumer Credit Act,1974.)Consumer Credit Act, 1974Consumer Credit Act, 1974 /kən|

�sju�mə �kredit �kt/ noun an Act of Parlia-ment which licenses lenders, and requiresthem to state clearly the full terms of loanswhich they make, including the APRconsumer goodsconsumer goods /kən|�sju�mə ��υdz/plural noun same as consumable goodsConsumer Price IndexConsumer Price Index /kən|�sju�mə�prais �indeks/ noun a US index showinghow prices of consumer goods have risenover a period of time, used as a way of meas-uring inflation and the cost of living. Abbre-viation CPI (NOTE: The UK term is retailprices index.)

‘…analysis of the consumer price indexfor the first half of the year shows that therate of inflation went down by about 12.9per cent’ [Business Times (Lagos)]

consumer protectionconsumer protection /kən|�sju�mə prə|

�tekʃən/ noun the activity of protecting con-sumers against unfair or illegal tradersconsumer spendingconsumer spending /kən|�sju�mə�spendiŋ/ noun spending by private house-holds on goods and services

‘…companies selling in the UK market areworried about reduced consumer spendingas a consequence of higher interest ratesand inflation’ [Business]

consumption taxconsumption tax /kən|�s�mpʃ(ə)nt�ks/ noun a tax used to encourage peopleto buy less of a particular good or service byincreasing its price. This type of tax is oftenlevied in times of national hardship.Contact CommitteeContact Committee /�kɒnt�kt kə|�miti/noun an advisory body, established by theEuropean Union, that oversees the applica-tion of European accounting directives andmakes recommendations to the EuropeanCommission about changes to those direc-tives

contested takeovercontested takeover /kən|�testid�teikəυvə/ noun a takeover bid where theboard of the target company does not recom-mend it to the shareholders and tries to fightit. Also called hostile bidcontingency fundcontingency fund /kən|�tind ənsif�nd/ noun money set aside in case it isneeded urgentlycontingent expensescontingent expenses /kən|�tind ənt ik|

�spensiz/ plural noun expenses which willbe incurred only if something happenscontingent gaincontingent gain /kən|�tind ənt ��ein/noun a possible gain that is conditional onthe occurrence of a certain event in thefuturecontingent liabilitycontingent liability /kən|�tind ənt �laiə|

�biliti/ noun a liability which may or maynot occur, but for which provision is made ina company’s accounts, as opposed to ‘provi-sions’, where money is set aside for an antic-ipated expenditurecontingent losscontingent loss /kən |�tind ənt �lɒs/noun a possible loss that is conditional onthe occurrence of a certain event in thefuturecontingent policycontingent policy /kən|�tind ənt�pɒlisi/ noun an insurance policy whichpays out only if something happens, such asif a person named in the policy dies beforethe person due to benefitcontingent reservecontingent reserve /kən|�tind ənt ri|

�z��v/ noun a fund set aside to meet unex-pected costs, e.g. an increase in interest ratescontinuing professional developmentcontinuing professional develop-ment /kən|�tinjuiŋ prə|�feʃ(ə)n(ə)l di|

�veləpmənt/ noun full form of CPDcontinuous disclosurecontinuous disclosure /kən|�tinjυəsdis|�kləυ ə/ noun in Canada, the practice ofensuring that complete, timely, accurate andbalanced information about a public com-pany is made available to shareholderscontinuous improvementcontinuous improvement /kən|

�tinjuəs im |�pru�vmənt/ noun a procedureand management philosophy that focuses onlooking all the time for ways in which smallimprovements can be made to processes andproducts, with the aim of increasing qualityand reducing waste and cost (NOTE: Contin-uous improvement is one of the tools thatunderpin the philosophies of total qualitymanagement and lean production; in Japanit is known as kaizen.)continuous improvementcontinuously contemporaryaccounting /kən|�tinjυəsli kən|

�temp(ə)rəri ə|�kaυntiŋ/ noun an account-ing system that measures assets and liabili-ties at their current cash price. Profit and losscan therefore be viewed in terms of changes

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contra 54in the value as all items are measured in thesame way. Abbreviation CoCoAcontra

contra /�kɒntrə/ noun an accounting termused when debits are matched with relatedcredits in an account or set of accountscontra account

contra account /�kɒntrə ə|�kaυnt/ nounan account which offsets another account,e.g. where a company’s supplier is not onlya creditor in that company’s books but also adebtor because it has purchased goods oncreditcontract

contract noun /�kɒntr�kt/ 1. a legalagreement between two parties � to draw upa contract � to draft a contract � to sign acontract � the contract is binding on bothparties both parties signing the contractmust do what is agreed � under contractbound by the terms of a contract � The firmis under contract to deliver the goods byNovember. � to void a contract to make acontract invalid 2. � by private contract byprivate legal agreement 3. an agreement forthe supply of a service or goods � to enterinto a contract to supply spare parts � tosign a contract for $10,000 worth of spareparts 4. (Stock Exchange) a deal to buy orsell shares, or an agreement to purchaseoptions or futures � verb /kən|�tr�kt/ toagree to do some work on the basis of alegally binding contract � to contract tosupply spare parts or to contract for the sup-ply of spare partscontract costing

contract costing /�kɒntr�kt �kɒstiŋ/noun a method of costing large projects,where the contracted work will run over sev-eral accounting periodscontracting party

contracting party /kən|�tr�ktiŋ �pɑ�ti/noun a person or company that signs a con-tractcontract note

contract note /�kɒntr�kt nəυt/ noun anote showing that shares have been boughtor sold but not yet paid for, also includingthe commissioncontract of employment

contract of employment /�kɒntr�ktəv im|�plɔimənt/ noun a contract betweenan employer and an employee stating all theconditions of work. Also called employ-ment contractcontract of service

contract of service /�kɒntr�kt əv�s��vis/ noun a legal agreement between anemployer and an employee whereby theemployee will work for the employer and bedirected by them, in return for paymentcontractor

contractor /kən|�tr�ktə/ noun a person orcompany that does work according to a writ-ten agreement

contractualcontractual /kən|�tr�ktʃυəl/ adjectiveaccording to a contract � contractual condi-tionscontractual liabilitycontractual liability /kən|�tr�ktʃuəl�laiə |�biliti/ noun a legal responsibility forsomething as stated in a contractcontractuallycontractually /kən|�tr�ktjuəli/ adverbaccording to a contract � The company iscontractually bound to pay our expenses.contractual obligationcontractual obligation /kən|�tr�ktʃuəl�ɒbli |��eiʃ(ə)n/ noun something that a per-son is legally forced to do through havingsigned a contract to do � to fulfil your con-tractual obligations to do what you haveagreed to do in a contractcontract workcontract work /�kɒntr�kt w��k/ nounwork done according to a written agreementcontra entrycontra entry /�kɒntrə �entri/ noun anentry made in the opposite side of anaccount to make an earlier entry worthless,i.e. a debit against a creditcontributecontribute /kən |�tribju�t/ verb to givemoney or add to money � We agreed to con-tribute 10% of the profits. � They had con-tributed to the pension fund for 10 years.contributioncontribution /�kɒntri|�bju�ʃ(ə)n/ noun 1.money paid to add to a sum 2. the differencebetween sales value and the variable costs ofa unit sold. This goes to cover fixed costsand provide the profit.contribution income statementcontribution income statement/�kɒntribju�ʃ(ə)n �ink�m �steitmənt/noun a way of presenting an income state-ment in which fixed costs are shown as adeduction from the total contribution. Thisformat is often used as part of managementaccounting.contribution margincontribution margin /�kɒntri |�bju�ʃ(ə)n�mɑ�d in/ noun a way of showing howmuch individual products or services con-tribute to net profit

‘The provider of rehabilitation servicescited the negative impact of Part B therapycaps on estimated Contract Therapy con-tribution margins.’ [BusinessWeek]

contribution of capitalcontribution of capital /kɒntri|

�bju�ʃ(ə)n əv �k�pit(ə)l/ noun money paidto a company as additional capitalcontributor of capitalcontributor of capital /kən|�tribjυtərəv �k�pit(ə)l/ noun a person who contrib-utes capitalcontributorycontributory /kən|�tribjυt(ə)ri/ adjectivecausing or helping to cause � Fallingexchange rates have been a contributoryfactor in the company’s loss of profits.control accountcontrol account /kən|�trəυl ə|�kaυnt/noun an account used to record the totalamounts entered in a number of different

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55 cooperative storeledger accounts. It also acts as a means ofchecking the accuracy of the ledgeraccounts.controllable variancecontrollable variance /kən|�trəυləb(ə)l�veəriəns/ noun a difference between actualand budgeted amounts that is considered asbeing within the control of the budget centremanagercontrolled companycontrolled company /kən|�trəυld�k�mp(ə)ni/ noun company where morethan 50% (or in the USA, 25%) of the sharesbelong to one ownercontrolled economycontrolled economy /kən |�trəυld i|

�kɒnəmi/ noun an economy where mostbusiness activity is directed by orders fromthe governmentcontrollercontroller /kən|�trəυlə/ noun 1. a personwho controls something, especially thefinances of a company 2. US the chiefaccountant in a companycontrol limitscontrol limits /kən|�trəυl �limits/ pluralnoun limits on quantities or values which, ifexceeded, trigger intervention from man-agementcontrol periodcontrol period /kən|�trəυl �piəriəd/ nounthe fraction of the financial year, e.g., amonth, for which separate totals are given ina budgetcontrol riskcontrol risk /kən|�trəυl risk/ noun thataspect of an audit risk that involves a client’sinternal control systemcontrol totalscontrol totals /kən|�trəυl �təυt(ə)lz/ plu-ral noun in auditing, totals calculated forimportant data fields, used as a check of dataprocessing standardsconventional cost systemconventional cost system /kən|

�venʃ(ə)n(ə)l �kɒst �sistəm/ noun a stand-ard system for applying overhead costs toproducts and services, using only unit-basedcost driversconversionconversion /kən|�v��ʃ(ə)n/ noun theaction of changing convertible loan stockinto ordinary sharesconversion costsconversion costs /kən|�v��ʃ(ə)n kɒsts/plural noun the cost of changing raw materi-als into finished or semi-finished products,including wages, other direct productioncosts and the production overheadconversion of fundsconversion of funds /kən |�v��ʃ(ə)n əv�f�ndz/ noun the act of using money whichdoes not belong to you for a purpose forwhich it is not supposed to be usedconversion periodconversion period /kən|�v��ʃ(ə)n�piəriəd/ noun a time during which convert-ible loan stock may be changed into ordi-nary sharesconversion priceconversion price /kən|�v��ʃ(ə)n prais/,conversion rate /kən|�v��ʃ(ə)n reit/ noun

1. a price at which preference shares areconverted into ordinary shares 2. a rate atwhich a currency is changed into a foreigncurrencyconversion valueconversion value /kən|�v��ʃ(ə)n�v�lju�/ noun a value of convertible stock,including the extra value of the ordinaryshares into which they may be convertedconvertconvert /kən|�v��t/ verb 1. to changemoney of one country for money of another� We converted our pounds into Swissfrancs. 2. � to convert funds to your ownuse to use someone else’s money for your-selfconvertibilityconvertibility /kən|�v��tə |�biləti/ nounthe ability of a currency to be exchanged foranother easilyconvertible currencyconvertible currency /kən|�v��təb(ə)l�k�rənsi/ noun a currency which can easilybe exchanged for anotherconvertible debentureconvertible debenture /kən|�v��təb(ə)ldi |�bentʃə/ noun a debenture or loan stockwhich can be exchanged for ordinary sharesat a later dateconvertible loan stockconvertible loan stock /kən|�v��təb(ə)l�ləυn stɒk/ noun money lent to a companywhich can be converted into shares at a laterdateconvertiblesconvertibles /kən|�v��təb(ə)lz/ pluralnoun corporate bonds or preference shareswhich can be converted into ordinary sharesat a set price on set datesconveyanceconveyance /kən|�veiəns/ noun a legaldocument which transfers a property fromthe seller to the buyerconveyancerconveyancer /kən|�veiənsə/ noun a per-son who draws up a conveyanceconveyancingconveyancing /kən|�veiənsiŋ/ noun thework of legally transferring a property froma seller to a buyerCOOCOO abbreviation chief operating officercooling-off periodcooling-off period /�ku�liŋ �ɒf �piəriəd/noun 1. (during an industrial dispute) aperiod when negotiations have to be carriedon and no action can be taken by either side2. a period during which someone who isabout to enter into an agreement may reflecton all aspects of the arrangement and changehis or her mind if necessary � New York hasa three day cooling-off period for telephonesales.cooperative societycooperative society /kəυ|�ɒp(ə)rətivsə|�saiəti/ noun an organisation where cus-tomers and employees are partners and sharethe profitscooperative storecooperative store /kəυ|�ɒp(ə)rətiv stɔ�/noun a store owned by those who shop thereas well as by its workers

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coproperty 56copropertycoproperty /kəυ|�prɒpəti/ noun the own-ership of property by two or more peopletogethercoproprietorcoproprietor /�kəυprə|�praiətə/ noun aperson who owns a property with anotherperson or several other peoplecopyrightcopyright /�kɒpirait/ noun an author’slegal right to publish his or her own workand not to have it copied, lasting seventyyears after the author’s death � verb to con-firm the copyright of a written work byinserting a copyright notice and publishingthe workCopyright ActCopyright Act /�kɒpirait �kt/ noun anAct of Parliament making copyright legal,and controlling the copying of copyrightmaterialcopyright depositcopyright deposit /�kɒpirait di |�pɒzit/noun the act of depositing a copy of a pub-lished work in a copyright library, which ispart of the formal copyrighting of copyrightmaterialcopyright holdercopyright holder /�kɒpirait �həυldə/noun a person who owns a copyright andwho can expect to receive royalties from itcopyright lawcopyright law /�kɒpirait lɔ�/ noun lawsconcerning the protection of copyrightcopyright noticecopyright notice /�kɒpirait �nəυtis/noun a note in a book showing who owns thecopyright and the date of ownershipcorporatecorporate /�kɔ�p(ə)rət/ adjective refer-ring to corporations or companies, or to aparticular company as a whole

‘…the prime rate is the rate at which bankslend to their top corporate borrowers’[Wall Street Journal]‘…if corporate forecasts are met, sales willexceed $50 million next year’ [Citizen(Ottawa)]

corporate bondcorporate bond /�kɔ�p(ə)rət bɒnd/noun a loan stock officially issued by a com-pany to raise capital, usually against thesecurity of some of its assets (NOTE: Thecompany promises to pay an amount ofinterest on a set date every year until theredemption date, when it repays the loan.)corporate financecorporate finance /�kɔ�p(ə)rət�fain�ns/ noun the financial affairs of com-paniescorporate governancecorporate governance /�kɔ�p(ə)rət���v(ə)nəns/ noun the way a company orother organisation is run, including the pow-ers of the board of directors, audit commit-tees, ethics, environmental impact, treat-ment of workers, directors’ salaries andinternal controlcorporate loancorporate loan /�kɔ�p(ə)rət �ləυn/ nouna loan issued by a corporation

corporate namecorporate name /�kɔ�p(ə)rət �neim/noun the name of a large corporationcorporate plancorporate plan /�kɔ�p(ə)rət �pl�n/ nouna plan for the future work of a whole com-panycorporate planningcorporate planning /�kɔ�p(ə)rət�pl�niŋ/ noun 1. the process of planning thefuture work of a whole company 2. planningthe future financial state of a group of com-paniescorporate profitscorporate profits /�kɔ�p(ə)rət �prɒfits/plural noun the profits of a corporation

‘…corporate profits for the first quartershowed a 4 per cent drop from last year’[Financial Times]

corporate raidercorporate raider /�kɔ�p(ə)rət �reidə/noun a person or company which buys astake in another company before making ahostile takeover bidcorporationcorporation /�kɔ�pə|�reiʃ(ə)n/ noun 1. alarge company 2. US a company which isincorporated in the United States 3. a munic-ipal authoritycorporation income taxcorporation income tax/�kɔ�pəreiʃ(ə)n �ink�m t�ks/ noun a taxon profits made by incorporated companiescorporation loancorporation loan /�kɔ�pə|�reiʃ(ə)n ləυn/noun a loan issued by a local authoritycorporation taxcorporation tax /�kɔ�pə|�reiʃ(ə)n t�ks/noun a tax on profits and capital gains madeby companies, calculated before dividendsare paid. Abbreviation CTcorrecting entrycorrecting entry /kə|�rektiŋ �entri/ nounan entry made in accounts to make some-thing right which was previously wrongcorrelationcorrelation /�kɒrə|�leiʃ(ə)n/ noun thedegree to which there is a relationshipbetween two sets of data � Is there any cor-relation between people’s incomes and theamount they spend on clothing?COSACOSA abbreviation cost of sales adjust-mentcostcost /kɒst/ noun the amount of money paidto acquire, produce or maintain something,e.g. the money paid for materials, labour andoverheads in the manufacture of a productproduced and sold by a business � Compu-ter costs are falling each year. � We cannotafford the cost of two cars. � verb 1. to causemoney to be spent or lost 2. to determine thecost of something � to cost a product tocalculate how much money will be neededto make a product, and so work out its sell-ing pricecost absorptioncost absorption /�kɒst əb |�zɔ�pʃən/noun any system in which costs are assignedto units produced

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57 cost modellingcost accountantcost accountant /�kɒst ə |�kaυntənt/noun an accountant who gives managersinformation about their business costscost accountingcost accounting /�kɒst ə|�kaυntiŋ/ nounthe process of preparing special accounts ofmanufacturing and sales costscost accumulationcost accumulation /�kɒst ə|�kju�mjυ|

�leiʃ(ə)n/ noun a system of presenting costsin an accountcost allocationcost allocation /�kɒst ��ləkeiʃ(ə)n/noun the way in which overhead expensesare related to various cost centrescost analysiscost analysis /�kɒst ə|�n�ləsis/ noun theprocess of calculating in advance what anew product will costcost apportionmentcost apportionment /�kɒst ə |

�pɔ�ʃ(ə)nmənt/ noun the sharing out ofcommon overhead costs among various costcentrescost assignment pathcost assignment path /�kɒst ə|

�sainmənt �pɑ�θ/ noun a link between acost and its cost objectcost-based pricecost-based price /�kɒst beist �prais/noun a price for a particular product or serv-ice based on that portion of overall costsassigned to itcost behaviour patterncost behaviour pattern /�kɒst bi|

�heivjə �p�t(ə)n/ noun the extent to whicha cost will change as the level of activity ofa business changescost-benefit analysiscost-benefit analysis /�kɒst �benifit ə|

�n�ləsis/ noun the process of comparing thecosts and benefits of various possible waysof using available resources. Also calledbenefit-cost analysiscost centrecost centre /�kɒst �sentə/ noun 1. a per-son or group whose costs can be itemisedand to which costs can be allocated inaccounts 2. a unit, a process or an individualthat provides a service needed by anotherpart of an organisation and whose cost istherefore accepted as an overhead of thebusinesscost conceptcost (at cost) concept /�kɒst ət �kɒst�kɒnsept/ noun the practice of valuingassets with reference to their acquisitioncostcost controlcost control /�kɒst kən|�trəυl/ noun theprocess of ensuring that a business’s actualcosts do not exceed predetermined accepta-ble limitscost-cuttingcost-cutting /�kɒst �k�tiŋ/ adjectiveintended to reduce costs � We have takenout the second telephone line as a cost-cut-ting exercise. � noun the process of reduc-ing costs � As a result of cost-cutting, wehave had to make three staff redundant.

cost drivercost driver /�kɒst �draivə/ noun a factorthat determines how much it costs to carryout a particular task or project, e.g. theamount of resources needed for it, or theactivities involved in completing itcost-effectivecost-effective /�kɒsti �fektiv/ adjectivegiving good value when compared with theoriginal cost � We find advertising in theSunday newspapers very cost-effective.cost-effectivenesscost-effectiveness /�kɒst i|�fektivnəs/,cost efficiency /�kɒst i|�fiʃənsi/ noun thequality of being cost-effective � Can we cal-culate the cost-effectiveness of air freightagainst shipping by sea?cost elementcost element /�kɒst �elimənt/ noun asingle element of a total cost, e.g. the cost ofdepreciation of an item or the cost of ware-housing the itemcost estimationcost estimation /�kɒst �estimeiʃ(ə)n/noun the process of determining cost behav-iour patternscost factorcost factor /�kɒst �f�ktə/ noun any activ-ity or item of material, equipment or person-nel that incurs a costcost functioncost function /kɒst �f�ŋkʃ(ə)n/ noun amathematical function that links a com-pany’s total costs to its output and factorcostscost hierarchycost hierarchy /�kɒst �haiərɑ�ki/ noun asystem for classifying a company’s activitiesaccording to the costs they incurcostingcosting /�kɒstiŋ/ noun a calculation of themanufacturing costs, and so the sellingprice, of a product � The costings give us aretail price of $2.95. � We cannot do thecosting until we have details of all the pro-duction expenditure.costlycostly /�kɒstli/ adjective costing a lot ofmoney, or costing too much money �Defending the court case was a costly proc-ess. � The mistakes were time-consumingand costly.cost managementcost management /�kɒst�m�nid mənt/ noun the application ofmanagement accounting concepts, methodsof data collection, analysis and presentation,in order to provide the information requiredto enable costs to be planned, monitored andcontrolledcost management functioncost management function /�kɒst�m�nid mənt �f�ŋkʃ(ə)n/ noun the man-agement of those activities that help deter-mine accurate costscost modellingcost modelling /�kɒst �mɒd(ə)liŋ/ nounthe use of a costing system to give a clearview of the costs and profitability of a prod-uct or service

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cost object 58cost objectcost object /�kɒst �ɒbd ikt/ noun anyaspect of a company’s business for which acosting can be produced, e.g. employees’salaries and factory overheadscost of borrowingcost of borrowing /�kɒst əv �bɒrəυiŋ/noun an interest rate paid on borrowedmoneycost of capitalcost of capital /�kɒst əv �k�pit(ə)l/noun interest paid on the capital used inoperating a businesscost of goods soldcost of goods sold /�kɒst əv ��υdz�səυld/ noun same as cost of salescost of livingcost of living /�kɒst əv �liviŋ/ nounmoney which has to be paid for basic itemssuch as food, heating or rent � to allow forthe cost of living in the salary adjustmentscost-of-living adjustmentcost-of-living adjustment /�kɒst əv�liviŋ ə|�d �stmənt/ noun an increase inwages or salary that compensates for anincrease in the cost of livingcost-of-living allowancecost-of-living allowance /�kɒst əv�liviŋ ə|�laυəns/ noun an addition to normalsalary to cover increases in the cost of livingcost-of-living bonuscost-of-living bonus /�kɒst əv �liviŋ�bəυnəs/ noun money paid to meet anincrease in the cost of livingcost-of-living increasecost-of-living increase /�kɒst əv �liviŋ�inkri�s/ noun an increase in salary to allowit to keep up with the increased cost of livingcost-of-living indexcost-of-living index /�kɒst əv �liviŋ�indeks/ noun a way of measuring the costof living which is shown as a percentageincrease on the figure for the previous year.It is similar to the consumer price index, butincludes other items such as the interest onmortgages.cost of replacementcost of replacement /�kɒst əv ri|

�pleismənt/ noun same as replacementcostcost of salescost of sales /�kɒst əv �seilz/ noun allthe costs of a product sold, including manu-facturing costs and the staff costs of the pro-duction department, before general over-heads are calculated. Also called cost ofgoods soldcost of sales adjustmentcost of sales adjustment /�kɒst əv�seilz ə|�d �stmənt/ noun an adjustmentmade in current cost accounting to a com-pany’s historical cost profit figure to takeinto account the effect of inflation on thevalue of materials used in production duringthe accounting period. If prices are rising,the COSA will reduce historical cost profit.Abbreviation COSAcost pluscost plus /�kɒst �pl�s/ noun a system ofcalculating a price, by taking the cost of pro-duction of goods or services and adding apercentage to cover the supplier’s overheads

and margin � We are charging for the workon a cost plus basis.cost poolcost pool /�kɒst pu�l/ noun a grouping ofindividual costs, e.g. by department or bytype of jobcost pricecost price /�kɒst prais/ noun a sellingprice that is the same as the price paid by theseller, which results in no profit being madecost reduction programmecost reduction programme /�kɒst ri|

�d�kʃən �prəυ�r�m/ noun a programme ofcutting costs in order to improve profitabil-itycostscosts /kɒsts/ plural noun the expensesinvolved in a court case � The judgeawarded costs to the defendant. � Costs ofthe case will be borne by the prosecution.costs of nonconformancecosts of nonconformance /�kɒsts əv�nɒnkən|�fɔ�məns/ plural noun costsincurred by a company in rectifying defectsin products or services soldcosts of qualitycosts of quality /�kɒsts əv �kwɒləti/plural noun costs incurred in applying qual-ity control standardscost summary schedulecost summary schedule /�kɒst�s�məri �ʃedju�l/ noun a method of deter-mining the cost to be transferred to a depart-ment’s finished goods inventory accountcost-volume-profit analysiscost-volume-profit analysis /�kɒst�vɒlju�m �prɒfit ə|�n�ləsis/ noun an analy-sis of the relationship between gross profitand costs of production at different sellingprices and output volumes. Also called CVPanalysiscoterminous period endscoterminous period ends/�kəυt��minəs �piəriəd �endz/ plural nouna point in time that marks the end of theaccounting period for separate and relatedaccounts that cover the same periodcouncil taxcouncil tax /�kaυnsəl t�ks/ noun a taxpaid by individuals or companies to a localauthority. Introduced in April 1993 as areplacement for the much maligned commu-nity charge, or ‘poll tax’, council taxdepends on the value of the residential orcommercial property occupied.countcount /kaυnt/ verb 1. to add figurestogether to make a total � She counted upthe sales for the six months to December. 2.to include something � Did you count mytrip to New York as part of my salesexpenses?counterbidcounterbid /�kaυntəbid/ noun a higherbid in reply to a previous bid � When I bid$20 she put in a counterbid of $25.counter-claimcounter-claim /�kaυntə kleim/ noun aclaim for damages made in reply to a previ-ous claim � Jones claimed £25,000 in dam-

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59 CPDages against Smith, and Smith entered acounter-claim of £50,000 for loss of office.counterfeitcounterfeit /�kaυntəfit/ adjective refer-ring to false or imitation money � Shops inthe area have been asked to look out forcounterfeit £20 notes. � verb to make imita-tion moneycounterfoilcounterfoil /�kaυntəfɔil/ noun a slip ofpaper kept after writing a cheque, an invoiceor a receipt, as a record of the deal which hastaken placecountermandcountermand /�kaυntə|�mɑ�nd/ verb tosay that an order must not be carried out �to countermand an order � to countermandan order to say that an order must not becarried outcounter-offercounter-offer /�kaυntər �ɒfə/ noun ahigher or lower offer made in reply toanother offer � Smith Ltd made an offer of$1m for the property, and Blacks repliedwith a counter-offer of $1.4m.

‘…the company set about paring costs andimproving the design of its product. Itcame up with a price cut of 14%, but itscounter-offer – for an order that was tohave provided 8% of its workload nextyear – was too late and too expensive’[Wall Street Journal]

counterpartycounterparty /�kaυntəpɑ�ti/ noun eachof the other parties to a contract, consideredfrom the viewpoint of a particular partycounterpurchasecounterpurchase /�kaυntəp��tʃis/noun an international trading deal, where acompany agrees to use money received on asale to purchase goods in the country wherethe sale was madecountersigncountersign /�kaυntəsain/ verb to sign adocument which has already been signed bysomeone else � All our cheques have to becountersigned by the finance director. � Thesales director countersigns all my orders.countertradecountertrade /�kaυntətreid/ noun atrade which does not involve payment ofmoney, but something such as a barter or abuy-back deal insteadcountervailing dutycountervailing duty /�kaυntəveiliŋ�dju�ti/ noun a duty imposed by a countryon imported goods, where the price of thegoods includes a subsidy from the govern-ment in the country of origin. Also calledanti-dumping dutycounting housecounting house /�kaυntiŋ haυs/ noun adepartment dealing with cash (dated)country riskcountry risk /�k�ntri risk/ noun the riskassociated with undertaking transactionswith, or holding assets in, a particular coun-try. Sources of risk might be political, eco-nomic or regulatory instability affecting

overseas taxation, repatriation of profits,nationalisation, currency instability, etc.couponcoupon /�ku�pɒn/ noun 1. a piece of paperused in place of money 2. a slip of paperattached to a government bond certificatewhich can be cashed to provide the annualinterestcoupon ratecoupon rate /�ku�pɒn reit/ noun the per-centage fixed interest rate on a governmentbond or a debenturecoupon securitycoupon security /�ku�pɒn si |�kjυəriti/noun a government security which carries acoupon and pays interest, as opposed to onewhich pays no interest but is sold at a dis-count to its face valuecovenantcovenant /�k�vənənt/ noun a legal con-tract � verb to agree to pay annually a spec-ified sum of money to a person or organisa-tion by contract. When payments are madeunder covenant to a charity, the charity canreclaim the tax paid by the donee. � to cov-enant to pay £10 per annumcovercover /�k�və/ noun an amount of moneylarge enough to guarantee that somethingcan be paid for � Do you have sufficientcover for this loan? � verb 1. to provide pro-tection by insurance against something �The insurance covers fire, theft and loss ofwork. � to cover a risk to be protected byinsurance against a risk 2. to earn enoughmoney to pay for costs, expenses, etc. � Wedo not make enough sales to cover theexpense of running the shop. � Break-evenpoint is reached when sales cover all costs.3. to ask for security against a loan whichyou are making

‘…three export credit agencies haveagreed to provide cover for large projectsin Nigeria’ [Business Times (Lagos)]

coveragecoverage /�k�v(ə)rid / noun US protec-tion guaranteed by insurance � Do you havecoverage against fire damage?

‘…from a PR point of view it is easier toget press coverage when you are selling anindustry and not a brand’ [PR Week]

covered optioncovered option /�k�vəd �ɒpʃ(ə)n/ nounan option the owner of which is also theowner of the shares for the optioncover notecover note /�k�və nəυt/ noun a letterfrom an insurance company giving details ofan insurance policy and confirming that thepolicy existsCPCP abbreviation commercial paperCPACPA abbreviation certified public account-antCPDCPD /�si� pi� di�/ noun training and educa-tion that continues throughout a person’scareer in order to improve the skills and

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CPI 60knowledge they use to do a job or successionof jobs. Full form continuing professionaldevelopmentCPICPI abbreviation Consumer Price Indexcreative accountancycreative accountancy /kri|�eitiv ə |

�kaυntənsi/, creative accounting /kri|

�eitiv ə |�kaυntiŋ/ noun an adaptation of acompany’s figures to present a better picturethan is correct, usually intended to make acompany more attractive to a potentialbuyer, or done for some other reason whichmay not be strictly legalcreditcredit /�kredit/ noun 1. a period of timeallowed before a customer has to pay a debtincurred for goods or services � to givesomeone six months’ credit � to sell on goodcredit terms 2. an amount entered inaccounts to show a decrease in assets orexpenses or an increase in liabilities, reve-nue or capital. In accounts, credits areentered in the right-hand column. � to enter$100 to someone’s credit � to pay in $100 tothe credit of Mr Smith Compare debit �verb to put money into someone’s account,or to note money received in an account � tocredit an account with £100 or to credit£100 to an accountcredit accountcredit account /�kredit ə|�kaυnt/ nounan account which a customer has with a shopwhich allows him or her to buy goods andpay for them latercredit agencycredit agency /�kredit �eid ənsi/ noun acompany which reports on the creditworthi-ness of customers to show whether theyshould be allowed credit. Also called creditbureaucredit agreementcredit agreement /�kredit ə |��ri�mənt/noun a document that sets out the termsunder which credit is made available, or theagreement enshrined in such a documentcredit analysiscredit analysis /�kredit ə |�n�ləsis/ nounthe process of assessing a potential bor-rower’s creditworthinesscredit balancecredit balance /�kredit �b�ləns/ noun abalance in an account showing that moremoney has been received than is owed � Theaccount has a credit balance of £100.credit bankcredit bank /�kredit b�ŋk/ noun a bankwhich lends moneycredit bureaucredit bureau /�kredit �bjυərəυ/ nounUS same as credit agencycredit cardcredit card /�kredit kɑ�d/ noun a plasticcard which allows someone to borrowmoney and to buy goods up to a certain limitwithout paying for them immediately, butonly after a period of grace of about 25–30days. � charge card

credit card holdercredit card holder /�kredit kɑ�d�həυldə/ noun a person who has a creditcardcredit columncredit column /�kredit �kɒləm/ noun theright-hand column in accounts showingmoney receivedcredit controlcredit control /�kredit kən|�trəυl/ noun acheck that customers pay on time and do notowe more than their credit limitcredit controllercredit controller /�kredit kən|�trəυlə/noun a member of staff whose job is to try toget payment of overdue invoicescredit entrycredit entry /�kredit �entri/ noun an entryon the credit side of an accountcredit facilitiescredit facilities /�kredit fə|�silitiz/ pluralnoun an arrangement with a bank or supplierto have credit so as to buy goodscredit freezecredit freeze /�kredit fri�z/ noun a periodwhen lending by banks is restricted by thegovernmentcredit limitcredit limit /�kredit �limit/ noun the larg-est amount of money which a customer canborrowcredit linecredit line /�kredit lain/ noun an over-draft, the amount by which a person candraw money from an account with no funds,with the agreement of the bankcredit notecredit note /�kredit nəυt/ noun a noteshowing that money is owed to a customer �The company sent the wrong order and sohad to issue a credit note. Abbreviation C/Ncreditorcreditor /�kreditə/ noun a person or com-pany that is owed money, i.e. a company’screditors are its liabilitiescreditor dayscreditor days /�kreditə deiz/ plural nounthe number of days on average that a com-pany requires to pay its creditors. � debtordayscreditorscreditors /�kreditəz/ plural noun a list ofall liabilities in a set of accounts, includingoverdrafts, amounts owing to other compa-nies in the group, trade creditors, paymentsreceived on account for goods not yet sup-plied, etc.creditors’ meetingcreditors’ meeting /�kreditəz �mi�tiŋ/noun a meeting of all the people to whom aninsolvent company owes money, to decidehow to obtain the money owedcredit ratingcredit rating /�kredit �reitiŋ/ noun anamount which a credit agency feels a cus-tomer will be able to repaycredit referencecredit reference /�kredit �ref(ə)rəns/noun a credit rating or other indication of thecreditworthiness of a company or individualcredit-reference agencycredit-reference agency /�kredit�refər(ə)ns �eid ənsi/ noun same as creditagency

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61 cumulative interestcredit reportcredit report /�kredit ri|�pɔ�t/ noun infor-mation about an individual or entity relevantto a decision to grant creditcredit riskcredit risk /�kredit risk/ noun a risk thata borrower may not be able to repay a loancredit sidecredit side /�kredit said/ noun the right-hand column of accounts showing moneyreceivedcredit squeezecredit squeeze /�kredit skwi�z/ noun aperiod when lending by the banks isrestricted by the governmentcredit unioncredit union /�kredit �ju�njən/ noun agroup of people who pay in regular depositsor subscriptions which earn interest and areused to make loans to other members of thegroupcreditworthinesscreditworthiness /�kredit|�w��ðinəs/noun the extent to which an individual ororganisation is creditworthycreditworthycreditworthy /�kreditw��ði/ adjectivejudged as likely to be able to repay moneyborrowed, either, in the case of an individ-ual, by a credit reference agency, or, in thecase of an organisation, by a credit ratingagency � We will do some checks on her tosee if she is creditworthy.crisiscrisis /�kraisis/ noun a serious economicsituation where decisions have to be takenrapidly � a banking crisis � The govern-ment stepped in to try to resolve the interna-tional crisis. � Withdrawals from the bankhave reached crisis level.crisis managementcrisis management /�kraisis�m�nid mənt/ noun 1. management of abusiness or a country’s economy during aperiod of crisis 2. actions taken by an organ-isation to protect itself when unexpectedevents or situations occur that could threatenits success or continued operation (NOTE:Crisis situations may result from externalfactors such as the development of a newproduct by a competitor or changes in legis-lation, or from internal factors such as aproduct failure or faulty decision-making,and often involve the need to make quickdecisions on the basis of uncertain orincomplete information.)critical-path methodcritical-path method /�kritik(ə)l �pɑ�θ�meθəd/ noun a technique used in projectmanagement to identify the activities withina project that are critical to its success, usu-ally by showing on a diagram or flow chartthe order in which activities must be carriedout so that the project can be completed inthe shortest time and at the least cost

‘…need initial project designs to be morecomplex or need to generate Critical Path

Method charts or PERT reports.’ [Infor-mationWeek]

CROCRO abbreviation Companies RegistrationOfficecross-bordercross-border /�krɒs �bɔ�də/ adjectivefrom one country to another, covering sev-eral countriescross-border servicescross-border services /�krɒs �bɔ�də�s��visiz/ plural noun accountancy servicesprovided by an accountancy firm in onecountry for a client in another countrycrossed chequecrossed cheque /�krɒst �tʃek/ noun acheque with two lines across it showing thatit can only be deposited at a bank and notexchanged for cashcross holdingscross holdings /�krɒs �həυldiŋz/ pluralnoun a situation where two companies ownshares in each other in order to stop eitherfrom being taken over � The two companieshave protected themselves from takeover bya system of cross holdings.cross ratecross rate /�krɒs reit/ noun an exchangerate between two currencies expressed in athird currencycross-subsidycross-subsidy /�krɒs �s�bsidi/ noun theprocess of deliberately assigning costs toitems in an account in such a way that someitems are undercosted and some overcostedcrown jewelscrown jewels /�kraυn �d u�əlz/ pluralnoun the most valuable assets of a company,the reason why other companies may wantto make takeover bidscrystallisecrystallise /�kristəlaiz/, crystallize verbto become chargeable on an asset � adeferred gain is crystallised when you real-ise the gain by selling the assetCTCT abbreviation corporation taxcumcum /k�m/ preposition withcum allcum all /�k�m �ɔ�l/ adverb including allentitlementscum couponcum coupon /�k�m �ku�pɒn/ adverbwith a coupon attached or before interestdue on a security is paidcum dividendcum dividend /�k�m �dividend/, cumdiv adverb including the next dividend stillto be paidcum rightscum rights /�k�m �raits/ adverb sold withthe right to purchase new shares in a rightsissuecumulativecumulative /�kju�mjυlətiv/ adjectiveadded to regularly over a period of timecumulative interestcumulative interest /�kju�mjυlətiv�intrəst/ noun the total amount of interestthat has been charged on a loan up to a givenpointcumulative interestcumulative preference share/�kju�mjυlətiv �pref(ə)rəns ʃeə/ noun a

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currency 62preference share which will have the divi-dend paid at a later date even if the companyis not able to pay a dividend in the currentyear (NOTE: The US term is cumulativepreferred stock.)currencycumulative weighted average cost/�kju�mjυlətiv �weitid ��v(ə)rid kɒst/,cumulative weighted average price/�kju�mjυlətiv �weitid ��v(ə)rid prais/noun the average price per unit of stockdelivered in a period calculated each time anew delivery is received. Compare periodicweighted average costcurrencycurrency /�k�rənsi/ noun 1. money incoins and notes which is used in a particularcountry 2. foreign currency, the currency ofanother country (NOTE: Currency has noplural when it refers to the money of onecountry: He was arrested trying to take cur-rency out of the country.)

‘…today’s wide daily variations inexchange rates show the instability of asystem based on a single currency, namelythe dollar’ [Economist]‘…the level of currency in circulationincreased to N4.9 billion in the month ofAugust’ [Business Times (Lagos)]

currency backingcurrency backing /�k�rənsi �b�kiŋ/noun gold or government securities whichmaintain the strength of a currencycurrency bandcurrency band /�k�rənsi b�nd/ nounthe exchange rate levels between which acurrency is allowed to move without fulldevaluationcurrency basketcurrency basket /�k�rənsi �bɑ�skit/noun a group of currencies, each of which isweighted, calculated together as a singleunit against which another currency can bemeasuredcurrency clausecurrency clause /�k�rənsi klɔ�z/ noun aclause in a contract which avoids problemsof payment caused by changes in exchangerates, by fixing the exchange rate for the var-ious transactions covered by the contractcurrency futurescurrency futures /�k�rənsi �fju�tʃəz/plural noun purchases of foreign currencyfor delivery at a future datecurrency hedgingcurrency hedging /�k�rənsi �hed iŋ/noun a method of reducing exchange raterisk by diversifying currency holdings andadjusting them according to changes inexchange ratescurrency mismatchingcurrency mismatching /�k�rənsi�mism�tʃiŋ/ noun the activity of borrow-ing money in the currency of a countrywhere interest rates are low and depositing itin the currency of a country with higherinterest rates. The potential profit from the

interest rate margin may be offset bychanges in the exchange rates whichincrease the value of the loan in the com-pany’s balance sheet.currency movementscurrency movements /�k�rənsi�mu�vmənts/ plural noun fluctuations in thevalue of the world’s currencies that occur asthey are tradedcurrency notecurrency note /�k�rənsi nəυt/ noun abank notecurrency reservescurrency reserves /�k�rənsi ri|�z��vz/plural noun foreign money held by a govern-ment to support its own currency and to payits debtscurrency swapcurrency swap /�k�rənsi swɒp/ noun 1.an agreement to use a certain currency forpayments under a contract in exchange foranother currency (the two companiesinvolved can each buy one of the currenciesat a more favourable rate than the other) 2.the buying or selling of a fixed amount of aforeign currency on the spot market, and theselling or buying of the same amount of thesame currency on the forward marketcurrent accountcurrent account /�k�rənt ə |�kaυnt/ noun1. an account in an bank from which the cus-tomer can withdraw money when he or shewants. Current accounts do not always payinterest. � to pay money into a currentaccount Also called cheque account(NOTE: The US term is checking account.)2. an account of the balance of payments ofa country relating to the sale or purchase ofraw materials, goods and invisiblescurrent assetscurrent assets /�k�rənt ��sets/ pluralnoun the assets used by a company in itsordinary work, e.g. materials, finishedgoods, cash and monies due, and which areheld for a short time onlycurrent costcurrent cost /�k�rənt �kɒst/ noun theamount it would cost to replace an asset atcurrent pricescurrent cost accountingcurrent cost accounting /�k�rənt�kɒst ə |�kaυntiŋ/ noun a method ofaccounting in which assets are valued at theamount it would cost to replace them, ratherthan at the original cost. Abbreviation CCA.Also called replacement cost accountingcurrent liabilitiescurrent liabilities /�k�rənt �laiə |�bilitiz/plural noun the debts which a company hasto pay within the next accounting period. Ina company’s annual accounts, these wouldbe debts which must be paid within the yearand are usually payments for goods or serv-ices received.current purchasing powercurrent purchasing power /�k�rənt�p��tʃisiŋ �paυə/ noun a method ofaccounting which takes inflation into

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63 customs sealaccount by using constant monetary units(actual amounts multiplied by a generalprice index). Also called constant pur-chasing powercurrent ratiocurrent ratio /�k�rənt �reiʃiəυ/ noun aratio of current assets to current liabilitiesshowing if a company may not be able tomeet its immediate debtscurrent valuecurrent value /�k�rənt �v�lju�/ noun afigure that represents the amount by whichcurrent assets are greater than current liabil-itiescurrent value accountingcurrent value accounting /�k�rənt�v�lju� ə|�kaυntiŋ/ noun a reassessment ofthe value of assets and liabilitiescurrent yearcurrent year /�k�rənt �jiə/ noun the yearin which an accounting period falls � Underself-assessment, income is taxed on a cur-rent year basis – i.e. it is taxed in the year inwhich it is received.current yieldcurrent yield /�k�rənt �ji�ld/ noun a div-idend calculated as a percentage of the cur-rent price of a share on the stock marketcurvecurve /k��v/ noun a line which is notstraight, e.g. a line on a graph � The graphshows an upward curve.cushioncushion /�kυʃ(ə)n/ noun money whichallows a company to pay interest on its bor-rowings or to survive a loss � We have sumson deposit which are a useful cushion whencash flow is tight.custodiancustodian /k�|�stəυdiən/ noun a bankwhose principal function is to maintain andgrow the assets contained in a trustcustomcustom /�k�stəm/ noun the use of a shopby regular shopperscustomercustomer /�k�stəmə/ noun a person orcompany that buys goods � The shop wasfull of customers. � Can you serve this cus-tomer first please? � She’s a regular cus-tomer of ours. (NOTE: The customer may notbe the consumer or end user of the prod-uct.)

‘…unless advertising and promotion isdone in the context of an overall customerorientation, it cannot seriously be thoughtof as marketing’ [Quarterly Review ofMarketing]

customer profitabilitycustomer profitability /�k�stəmə�prɒfitə|�biliti/ noun the amount of profitgenerated by each individual customer. Usu-ally a small percentage of customers gener-ate the most profit.customer profitability analysiscustomer profitability analysis/�k�stəm �prɒfitə |�biliti ə|�n�lisis/ nounanalysis of the revenues and costs associatedwith particular customers

customer service departmentcustomer service department/�k�stəmə �s��vis di|�pɑ�tmənt/ noun adepartment which deals with customers andtheir complaints and orderscustomisecustomise /�k�stəmaiz/, customizeverb to change something to fit the specialneeds of a customer � We use customisedcomputer terminals.customscustoms /�k�stəmz/ plural noun the gov-ernment department which organises thecollection of taxes on imports, or an office ofthis department at a port or airport � He wasstopped by customs. � Her car was searchedby customs.Customs and ExciseCustoms and Excise /�k�stəmz ən�eksaiz/ noun a former UK governmentdepartment which organised the collectionof taxes on imports and also collected VAT.It merged with the Inland Revenue to formHM Revenue & Customs in 2005.customs barriercustoms barrier /�k�stəmz �b�riə/noun any provision intended to make trademore difficult, e.g. a high level of dutycustoms brokercustoms broker /�k�stəmz �brəυkə/noun a person or company that takes goodsthrough customs for a shipping companycustoms clearancecustoms clearance /�k�stəmz�kliərəns/ noun 1. the act of passing goodsthrough customs so that they can enter orleave the country 2. a document given bycustoms to a shipper to show that customsduty has been paid and the goods can beshipped � to wait for customs clearancecustoms declarationcustoms declaration /�k�stəmz deklə|

�reiʃ(ə)n/ noun a statement showing goodsbeing imported on which duty will have tobe paid � to fill in a customs declarationformcustoms dutycustoms duty /�k�stəmz �dju�ti/ noun atax on goods imported into a countrycustoms entry pointcustoms entry point /�k�stəmz �entripɔint/ noun a place at a border between twocountries where goods are declared to cus-tomscustoms examinationcustoms examination /�k�stəmz i�|

�z�mineiʃ(ə)n/ noun the inspection ofgoods or baggage by customs officialscustoms formalitiescustoms formalities /�k�stəmz fɔ�|

�m�litiz/ plural noun a declaration of goodsby the shipper and examination of them bycustomscustoms officercustoms officer /�k�stəmz �ɒfisə/ nouna person working for the customs depart-ment of a countrycustoms sealcustoms seal /�k�stəmz si�l/ noun a sealattached by a customs officer to a box, toshow that the contents have not passedthrough customs

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customs tariff 64customs tariff

customs tariff /�k�stəmz �t�rif/ noun alist of taxes to be paid on imported goodscustoms union

customs union /�k�stəmz �ju�njən/noun an agreement between several coun-tries that goods can travel between them,without paying duty, while goods from othercountries have to pay special dutiescut

cut /k�t/ noun 1. the sudden lowering of aprice, salary or the number of jobs � pricecuts or cuts in prices � he took a cut in sal-ary, he took a salary cut he accepted alower salary 2. a share in a payment � Sheintroduces new customers and gets a cut ofthe sales rep’s commission. � verb 1. tolower something suddenly � We are cuttingprices on all our models. � We have takenout the second telephone line in order to tryto cut costs. 2. to reduce the number ofsomething

‘…state-owned banks cut their prime ratesa percentage point to 11%’ [Wall StreetJournal]‘…the US bank announced a cut in itsprime from 10½ per cent to 10 per cent’[Financial Times]

‘Opec has on average cut production byone third since 1979’ [Economist]

cut down (on) phrasal verb to reduce sud-denly the amount of something used � Thegovernment is cutting down on welfare ex-penditure. � The office is trying to cut downon electricity consumption. � We have in-stalled networked computers to cut down onpaperwork.cutbackcutback /�k�tb�k/ noun a reduction �cutbacks in government spendingcut-offcut-off /�k�t ɒf/ noun a date and procedurefor isolating the flow of cash and goods,stocktaking and the related documentation,to ensure that all aspects of a transaction aredealt with in the same financial periodCVP analysisCVP analysis /�si� vi� �pi� ə|�n�lisis/noun same as cost-volume-profit analysiscyclecycle /�saik(ə)l/ noun a set of events whichhappen in a regularly repeated sequencecyclicalcyclical /�siklik(ə)l/ adjective happeningin cyclescyclical factorscyclical factors /�siklik(ə)l �f�ktəz/plural noun the way in which a trade cycleaffects businesses

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DD/AD/A abbreviation deposit accountdamagesdamages /�d�mid iz/ plural noun moneyclaimed as compensation for harm done � toclaim £1000 in damages � to be liable fordamages � to pay £25,000 in damagesD & BD & B abbreviation Dun & Bradstreetdanger moneydanger money /�deind ə �m�ni/ nounextra money paid to employees in dangerousjobs � The workforce has stopped work andasked for danger money. � He decided to goto work on an oil rig because of the dangermoney offered as an incentive.DatastreamDatastream /�deitəstri�m/ noun a datasystem available online, giving informationabout securities, prices, stock exchangetransactions, etc.date of billdate of bill /�deit əv �bil/ noun a datewhen a bill will maturedate of maturitydate of maturity /�deit əv mə |�tjυəriti/noun same as maturity datedate of recorddate of record /�deit əv �rekɔ�d/ nounthe date when a shareholder must be regis-tered to qualify for a dividenddate stampdate stamp /�deit st�mp/ noun a stampwith rubber figures which can be moved,used for marking the date on documentsdawn raiddawn raid /dɔ�n �reid/ noun a suddenplanned purchase of a large number of acompany’s shares at the beginning of a day’strading (NOTE: Up to 15% of a company’sshares may be bought in this way, and thepurchaser must wait for seven days beforepurchasing any more shares. Sometimes adawn raid is the first step towards a takeo-ver of the target company.)day bookday book /�dei bυk/ noun a book with anaccount of sales and purchases made eachdayDCFDCF abbreviation discounted cash flowDDDD abbreviation direct debitdead accountdead account /�ded ə|�kaυnt/ noun anaccount which is no longer useddead lossdead loss /�ded �lɒs/ noun a total loss �The car was written off as a dead loss.

dead moneydead money /�ded �m�ni/ noun moneywhich is not invested to make a profitdealdeal /di�l/ noun a business agreement,affair or contract � The sales director set upa deal with a Russian bank. � The deal willbe signed tomorrow. � They did a deal withan American airline. � verb to buy and sell� to deal in leather or options to buy andsell leather or optionsdealerdealer /�di�lə/ noun 1. a person who buysand sells � a used-car dealer 2. a person orfirm that buys or sells on their own account,not on behalf of clientsdealingdealing /�di�liŋ/ noun 1. the business ofbuying and selling on the Stock Exchange,commodity markets or currency markets �dealing for or within the account buyingshares and selling the same shares during anaccount, which means that the dealer hasonly to pay the difference between the priceof the shares bought and the price obtainedfor them when they are sold 2. the businessof buying and selling goodsdear moneydear money /�diə �m�ni/ noun moneywhich has to be borrowed at a high interestrate, and so restricts expenditure by compa-nies. Also called tight moneydeath benefitdeath benefit /�deθ �benifit/ noun insur-ance benefit paid to the family of someonewho dies in an accident at workdeath dutydeath duty /�deθ �dju�ti/ noun same asinheritance taxdeath in servicedeath in service /�deθ in �s��vis/ nounan insurance benefit or pension paid whensomeone dies while employed by a companydeath taxdeath tax /�deθ t�ks/ noun same asinheritance taxdebenturedebenture /di|�bentʃə/ noun agreement torepay a debt with fixed interest using thecompany’s assets as security � The bankholds a debenture on the company.debenture bonddebenture bond /di|�bentʃə bɒnd/ nounUS 1. a certificate showing that a debenturehas been issued 2. an unsecured loan

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debenture capital 66debenture capitaldebenture capital /di|�bentʃə�k�pit(ə)l/ noun capital borrowed by acompany, using its fixed assets as securitydebenture holderdebenture holder /di |�bentʃə �həυldə/noun a person who holds a debenture formoney lentdebenture issuedebenture issue /di|�bentʃə �iʃu�/ nounthe activity of borrowing money against thesecurity of the company’s assetsdebenture stockdebenture stock /di |�bentʃə stɒk/ nouna form of debt instrument in which a com-pany guarantees payments on a fixed sched-ule or at a fixed rate of interestdebitdebit /�debit/ noun an amount entered inaccounts which shows an increase in assetsor expenses or a decrease in liabilities, reve-nue or capital. In accounts, debits areentered in the left-hand column. Comparecreditdebitabledebitable /�debitəb(ə)l/ adjective able tobe debiteddebit balancedebit balance /�debit �b�ləns/ noun abalance in an account showing that moremoney is owed than has been received �Because of large payments to suppliers, theaccount has a debit balance of £1,000.debit carddebit card /�debit kɑ�d/ noun a plasticcard, similar to a credit card, but which deb-its the holder’s account immediately throughan EPOS systemdebit columndebit column /�debit �kɒləm/ noun theleft-hand column in accounts showing themoney paid or owed to othersdebit entrydebit entry /�debit �entri/ noun an entryon the debit side of an accountdebit notedebit note /�debit nəυt/ noun a noteshowing that a customer owes money � Weundercharged Mr Smith and had to send hima debit note for the extra amount.debits and creditsdebits and credits /�debits ən �kredits/plural noun money which a company owesand money it receives, or figures which areentered in the accounts to record increasesor decreases in assets, expenses, liabilities,revenue or capitaldebit sidedebit side /�debit said/ noun a left-handcolumn of accounts showing money owed orpaid to othersdebtdebt /det/ noun money owed for goods orservices � The company stopped tradingwith debts of over £1 million. � he is in debtto the tune of £250,000 he owes £250,000debt collectiondebt collection /�det kə|�lekʃən/ nounthe act of collecting money which is oweddebt collection agencydebt collection agency /�det kə|

�lekʃən �eid ənsi/ noun a company which

collects debts for other companies for acommissiondebt collectordebt collector /�det kə|�lektə/ noun aperson who collects debtsdebt-convertible bonddebt-convertible bond /�det kən |

�v��tib(ə)l �bɒnd/ noun a floating-rate bondwhich can be converted to a fixed rate ofinterest. � droplock bonddebt counsellingdebt counselling /�det �kaυnsəliŋ/noun the work of advising people who are indebt of the best ways to arrange theirfinances so as to pay off their debtsdebt-equity ratiodebt-equity ratio /�det �ekwiti �reiʃiəυ/noun a measure of a company’s ability torepay its creditors, equal to its total longterm debt divided by the total of sharehold-ers’ equity. � gearingdebt factoringdebt factoring /�det �f�ktəriŋ/ noun thebusiness of buying debts at a discount. Afactor collects a company’s debts when due,and pays the creditor in advance part of thesum to be collected, so ‘buying’ the debt.debtordebtor /�detə/ noun a person who owesmoneydebtor daysdebtor days /�detə deiz/ plural noun thenumber of days on average that it takes acompany to receive payment for what itsells. � creditor daysdebtorsdebtors /�detəz/ noun all money owed toa company as shown in the accountsdebtors control accountdebtors control account /�detəz kən|

�trəυl ə|�kaυnt/ noun an account used tosummarise the balances on the individualsales ledger accountsdebtor sidedebtor side /�detə said/ noun the debitside of an accountdebtors ledgerdebtors ledger /�detəz �led ə/ nounsame as sales ledgerdebtors turnover ratiodebtors turnover ratio /�detəz�t��nəυvə �reiʃiəυ/ noun the average timewhich debtors take to paydebt ratiodebt ratio /�det �reiʃiəυ/ noun the debts ofa company shown as a percentage of itsequity plus loan capitaldebt reschedulingdebt rescheduling /�det ri�|�ʃedju�liŋ/noun the process of reorganising the way inwhich debts are repaid. Debt reschedulingmay be necessary if a company is unable topay its debts and may involve postponingdebt payments, postponing payment ofinterest, or negotiating a new loan.deciledecile /�desail/ noun one of a series of ninefigures below which one tenth or severaltenths of the total falldecimalisationdecimalisation /�desim(ə)lai|�zeiʃ(ə)n/,decimalization noun the process of chang-ing to a decimal system

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67 deed of covenantdecimalisedecimalise /�desim(ə)laiz/, decimalizeverb to change something to a decimal sys-temdecimal pointdecimal point /�desim(ə)l �pɔint/ noun adot which indicates the division between thewhole unit and its smaller parts, e.g. 4.75decimal systemdecimal system /�desim(ə)l �sistəm/noun a system of mathematics based on thenumber 10decision support systemdecision support system /di|�si (ə)nsə|�pɔ�t �sistəm/ noun a computer-basedsystem which presents auditor judgments ina structured way and can be used to createaudit programmes or document the assess-ment of business riskdecision theorydecision theory /di |�si (ə)n �θiəri/ nounthe mathematical methods for weighing thevarious factors in making decisions � Inpractice it is difficult to apply decision the-ory to our planning. � Students study deci-sion theory to help them suggest strategiesin case-studies.decision treedecision tree /di |�si (ə)n tri�/ noun amodel for decision-making, showing thepossible outcomes of different decisions �This computer programme incorporates adecision tree.declarationdeclaration /�deklə|�reiʃ(ə)n/ noun anofficial statementdeclaration datedeclaration date /�deklə|�reiʃ(ə)n deit/noun US the date on which a board of direc-tors declares the dividend to be paiddeclaration of bankruptcydeclaration of bankruptcy/�dekləreiʃ(ə)n əv �b�ŋkr�ptsi/ noun anofficial statement that someone is bankruptdeclaration of incomedeclaration of income /�dekləreiʃ(ə)nəv �ink�m/ noun same as income taxreturndeclaration of solvencydeclaration of solvency/�dekləreiʃ(ə)n əv �sɒlv(ə)nsi/ noun a doc-ument, lodged with the Registrar of Compa-nies, that lists the assets and liabilities of acompany seeking voluntary liquidation toshow that the company is capable of repay-ing its debts within 12monthsdeclaredeclare /di |�kleə/ verb to make an officialstatement of something, or announce some-thing to the public � to declare someonebankrupt � The company declared aninterim dividend of 10p per share.declareddeclared /di|�kleəd/ adjective having beenmade public or officially stateddeclared valuedeclared value /di |�kleəd �v�lju�/ nounthe value of goods entered on a customs dec-larationdeclinedecline /di |�klain/ verb to fall slowly ordecrease � Shares declined in a weak mar-ket. � New job applications have declined

over the last year. � The economy declinedduring the last government. � The purchas-ing power of the pound declined over thedecade.

‘Saudi oil production has declined by threequarters to around 2.5m barrels a day’[Economist]‘…this gives an average monthly declineof 2.15 per cent during the period’ [Busi-ness Times (Lagos)]‘…share prices disclosed a weak tendencyright from the onset of business anddeclined further, showing losses over abroad front’ [The Hindu]

declining balance methoddeclining balance method /di|�klainiŋ�b�ləns �meθəd/ noun US same as reduc-ing balance methoddecreasedecrease /di|�kri�s/ verb to fall or tobecome less � Imports are decreasing. �The value of the pound has decreased by5%.deductdeduct /di |�d�kt/ verb to take money awayfrom a total � to deduct £3 from the price �to deduct a sum for expenses � After deduct-ing costs the gross margin is only 23%. �Expenses are still to be deducted.deductibledeductible /di |�d�ktib(ə)l/ adjective pos-sible to deductdeductiondeduction /di|�d�kʃən/ noun the remov-ing of money from a total, or the amount ofmoney removed from a total � Net salary issalary after deduction of tax and socialsecurity. � The deduction from her wagesrepresented the cost of repairing the damageshe had caused to the machinery. � deduc-tions from salary, salary deductions,deductions at source money which a com-pany removes from salaries to give to thegovernment as tax, National Insurance con-tributions, etc.deeddeed /di�d/ noun a legal document or writ-ten agreementdeed of arrangementdeed of arrangement /�di�d əv ə|

�reind mənt/ noun an agreement madebetween a debtor and creditors whereby thecreditors accept an agreed sum in settlementof their claim rather than make the debtorbankruptdeed of assignmentdeed of assignment /�di�d əv ə|

�sainmənt/ noun a document which legallytransfers a property from a debtor to a cred-itordeed of covenantdeed of covenant /�di�d əv �k�vənənt/noun a legal document in which a person ororganisation promises to pay a third party asum of money on an annual basis. In certaincountries this arrangement may have taxadvantages. For example, in the United

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deed of partnership 68Kingdom, it is often used for making regularpayments to a charity.deed of partnershipdeed of partnership /�di�d əv�pɑ�tnəʃip/ noun agreement which sets up apartnershipdeed of transferdeed of transfer /�di�d əv �tr�nsf��/noun a document which transfers the owner-ship of sharesdeep pocketdeep pocket /�di�p �pɒkit/ noun a com-pany which provides finance for anotherdefalcationdefalcation /�di�f�l|�keiʃ(ə)n/ noun theillegal use of money by someone who is notthe owner but who has been trusted to lookafter itdefaultdefault /di |�fɔ�lt/ noun a failure to carry outthe terms of a contract, especially failure topay back a debt � verb to fail to carry out theterms of a contract, especially to fail to payback a debt � There was a major financialcrisis when the bank defaulted.defaulterdefaulter /di|�fɔ�ltə/ noun a person whodefaultsdefault noticedefault notice /di |�fɔ�lt �nəυtis/ noun aformal notice to a borrower stating that he orshe has defaulted on the loan and legalaction may be taken to recover the money.Also called notice of default (NOTE: TheUS term is notice of default.)deferdefer /di |�f��/ verb to put back to a laterdate, to postpone � We will have to deferpayment until January. � The decision hasbeen deferred until the next meeting. (NOTE:deferring – deferred)defermentdeferment /di|�f��mənt/ noun the act ofleaving until a later date � deferment of pay-ment � deferment of a decisiondeferred annuitydeferred annuity /di |�f��d ə|�nju�əti/noun an investment that does not pay outuntil at least one year after the final premiumhas been paiddeferred considerationdeferred consideration /di|�f��d kən|

�sidə|�reiʃ(ə)n/ noun instalment paymentsfor the acquisition of new subsidiaries usu-ally made in the form of cash and shares,where the balance due after the initialdeposit depends on the performance of thebusiness acquireddeferred costdeferred cost /di|�f��d kɒst/ noun a costwith future benefit that extends beyond thecurrent accounting perioddeferred creditdeferred credit /di |�f��d �kredit/ nounincome received but not yet entered inaccounts as incomedeferred creditordeferred creditor /di|�f��d �kreditə/noun a person who is owed money by abankrupt but who is paid only after all othercreditors

deferred expendituredeferred expenditure /di|�f��d ik |

�spenditʃə/ noun expenditure incurred nowbut reflected in the accounts of future yearsdeferred maintenancedeferred maintenance /di|�f��d�meintənəns/ noun a failure to carry outmaintenance, e.g. to machinery, thatadversely affects its value, recorded inaccountsdeferred paymentdeferred payment /di|�f��d �peimənt/noun 1. money paid later than the agreeddate 2. payment for goods by instalmentsover a long perioddeferred revenuedeferred revenue /di |�f��d �revənju�/noun revenue carried forward to futureaccounting periodsdeferred taxdeferred tax /di|�f��d �t�ks/ noun a taxwhich may become payable at some laterdatedeficiencydeficiency /di |�fiʃ(ə)nsi/ noun a lack ofsomething, or the amount by which some-thing, e.g. a sum of money, is less than itshould be � There is a £10 deficiency in thepetty cash.deficitdeficit /�defisit/ noun the amount bywhich spending is higher than incomedeficit financingdeficit financing /�defisit �fain�nsiŋ/noun a type of financial planning by a gov-ernment in which it borrows money to coverthe difference between its tax income and itsexpendituredeflationdeflation /di� |�fleiʃ(ə)n/ noun a generalreduction in economic activity as a result ofa reduced supply of money and credit, lead-ing to lower prices � The oil crisis resultedin worldwide deflation. Opposite inflation

‘…the reluctance of people to spend is oneof the main reasons behind 26 consecutivemonths of price deflation, a key economicill that has led to price wars, depressed theprofit margins of state enterprises and hitincomes among the rural population’[Financial Times]

deflationarydeflationary /di�|�fleiʃ(ə)n(ə)ri/ adjectivecausing deflation � The government hasintroduced some deflationary measures inthe budget.deflatordeflator /di� |�fleitə/ noun the amount bywhich a country’s GNP is reduced to takeinflation into accountdegearingdegearing /di�|��iəriŋ/ noun a reductionin gearing, reducing a company’s loan capi-tal in relation to the value of its ordinarysharesdel crederedel credere /�del �kreidəri/ noun anamount added to a charge to cover the possi-bility of not being paiddel credere agentdel credere agent /�del �kreidəri�eid ənt/ noun an agent who receives a high

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69 departmental accountscommission because he or she guaranteespayment by customersdelinquencydelinquency /di |�liŋkwənsi/ noun US thefact of being overdue in payment of anaccount, an interest payment, etc.delinquentdelinquent /di |�liŋkwənt/ adjective USreferring to an account or payment of taxwhich is overduedeliverdeliver /di |�livə/ verb to transport goods toa customer � goods delivered free or freedelivered goods goods transported to thecustomer’s address at a price which includestransport costs � goods delivered on boardgoods transported free to the ship or planebut not to the customer’s warehousedelivered pricedelivered price /di |�livəd prais/ noun aprice which includes packing and transportdeliverydelivery /di |�liv(ə)ri/ noun 1. a consign-ment of goods being delivered � We take inthree deliveries a day. � There were fouritems missing in the last delivery. 2. thetransport of a commodity to a purchaser 3.the transfer of a bill of exchange or othernegotiable instrument to the bank which isdue to make paymentdelivery cycle timedelivery cycle time /di|�liv(ə)ri �saik(ə)l�taim/ noun the interval between the time ofaccepting an order and the time of makingthe final deliverydelivery monthdelivery month /di|�liv(ə)ri m�nθ/ nouna month in a futures contract when actualdelivery will take placedelivery notedelivery note /di |�liv(ə)ri nəυt/ noun alist of goods being delivered, given to thecustomer with the goodsdelivery of goodsdelivery of goods /di|�liv(ə)ri əv ��υdz/noun the transport of goods to a customer’saddressdelivery orderdelivery order /di |�liv(ə)ri �ɔ�də/ nounthe instructions given by the customer to theperson holding her goods, to tell her whereand when to deliver themdelivery timedelivery time /di|�liv(ə)ri taim/ noun thenumber of days before something will bedelivereddemanddemand /di|�mɑ�nd/ noun 1. an act of ask-ing for payment 2. an act of asking for some-thing and insisting on getting it � The man-agement refused to give in to union demandsfor a meeting. � verb 1. the need that cus-tomers have for a product or their eagernessto buy it � There was an active demand foroil shares on the stock market. � The factoryhad to cut production when demand slack-ened. � The office cleaning company cannotkeep up with the demand for its services. �to meet or fill a demand to supply what isneeded � The factory had to increase pro-

duction to meet the extra demand. 2. to askfor something and expect to get it � Shedemanded a refund. � The suppliers aredemanding immediate payment of their out-standing invoices.

‘…spot prices are now relatively stable inthe run-up to the winter’s peak demand’[Economist]‘…the demand for the company’s productsremained strong throughout the first sixmonths of the year with production andsales showing significant increases’ [Busi-ness Times (Lagos)]‘…growth in demand is still coming fromthe private rather than the public sector’[Lloyd’s List]

demand billdemand bill /di |�mɑ�nd bil/ noun a bill ofexchange which must be paid when paymentis asked fordemand pricedemand price /di|�mɑ�nd prais/ noun theprice at which a quantity of goods will beboughtdemergedemerge /di� |�m��d / verb to separate acompany into several separate partsdemergerdemerger /di�|�m��d ə/ noun the separa-tion of a company into several separateparts, especially used of companies whichhave grown by acquisitiondemisedemise /di|�maiz/ noun 1. a death � On hisdemise the estate passed to his daughter. 2.the act of granting a property on a lease �verb to grant property on a leasedemonetisationdemonetisation /di�|�m�nitai|�zeiʃ(ə)n/,demonetization noun the act of stopping acoin or note being used as moneydemonetisedemonetise /di� |�m�nitaiz/, demonetizeverb to stop a coin or note being used asmoneydemurragedemurrage /di |�m�rid / noun money paidto a customer when a shipment is delayed ata port or by customsdemutualisationdemutualisation /di� |�mju�tjuəlai|

�zeiʃ(ə)n/, demutualization noun the proc-ess by which a mutual society, such as abuilding society, becomes a publicly ownedcorporationdemutualisedemutualise /di� |�mju�tjuəlaiz/, demu-tualize /di� |�mju�tʃuə|�laiz/ verb to stophaving mutual status and become a publiclyowned corporation by selling shares to thegeneral public on the stock marketdenominationdenomination /di |�nɒmi |�neiʃ(ə)n/ nouna unit of money on a coin, banknote or stamp� We collect coins of all denominations forcharity. � Small denomination notes are notoften counterfeited.departmental accountsdepartmental accounts/�di�pɑ�tment(ə)l ə|�kaυnts/ plural noun

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dependent variable 70accounts which analyse the sales of differentdepartments or products of a companydependent variableDepartment for Education andSkills /di|�pɑ�tmənt fər edjυ|�keiʃ(ə)n ən�skilz/ noun a British government depart-ment responsible for education and training.Abbreviation DFESDepartment of Trade and IndustryDepartment of Trade and Industry/di|�pɑ�tmənt əv �treid ənd �indəstri/noun a British government departmentwhich deals with areas such as commerce,international trade and the stock exchange.Abbreviation DTIdependent variabledependent variable /di |�pendənt�veəriəb(ə)l/ noun a variable or factorwhich changes as a result of a change inanother (the ‘independent variable’) � Weare trying to understand the effects of sev-eral independent variables on one depend-ent variable, in this case, sales.depositdeposit /di|�pɒzit/ noun 1. money placedin a bank for safe keeping or to earn interest2. money given in advance so that the thingwhich you want to buy will not be sold tosomeone else � to pay a deposit on a watch� to leave £10 as deposit � verb 1. to putdocuments somewhere for safe keeping � todeposit shares with a bank � We have depos-ited the deeds of the house with the bank. �He deposited his will with his solicitor. 2. toput money into a bank account � to deposit£100 in a current accountdeposit accountdeposit account /di|�pɒzit ə|�kaυnt/noun a bank account which pays interest buton which notice has to be given to withdrawmoney. Abbreviation D/Adepositarydepositary /di |�pɒzitəri/ noun US a per-son or corporation which can place moneyor documents for safekeeping with a depos-itory. � American Depositary Receipt(NOTE: Do not confuse with depository.)depositordepositor /di|�pɒzitə/ noun a person whodeposits money in a bank, building society,etc.depositorydepository /di |�pɒzit(ə)ri/ noun a personor company with whom money or docu-ments can be deposited (NOTE: Do not con-fuse with depositary.)deposit slipdeposit slip /di |�pɒzit slip/ noun USsame as paying-in slipdeposit-taking institutiondeposit-taking institution /di |�pɒzit�teikiŋ �insti |�tju�ʃ(ə)n/, depository insti-tution /di |�pɒzit(ə)ri �insti |�tju�ʃ(ə)n/ nounan institution which is licensed to receivemoney on deposit from private individualsand to pay interest on it, e.g. a building soci-ety, bank or friendly society

depreciabledepreciable /di |�pri�ʃiəb(ə)l/ adjectivepossible to depreciatedepreciable assetdepreciable asset /di |�pri�ʃiəb(ə)l��set/ noun an asset which will be used overmore than one accounting period, but whichhas a limited life and so can be depreciateddepreciable costdepreciable cost /di |�pri�ʃiəb(ə)l kɒst/noun a cost that can be applied to more thanone accounting perioddepreciable lifedepreciable life /di|�pri�ʃiəb(ə)l �laif/noun the period over which the cost of anasset may be spreaddepreciatedepreciate /di |�pri�ʃieit/ verb 1. to makean allowance in accounts for the loss ofvalue of an asset over time � We depreciateour company cars over three years. 2. tolose value � a share that has depreciated by10% over the year � The pound has depre-ciated by 5% against the dollar.depreciationdepreciation /di |�pri�ʃi|�eiʃ(ə)n/ noun 1. aloss of value � a share that has shown adepreciation of 10% over the year � thedepreciation of the pound against the dollar2. the loss of value of an asset over time,which is recorded in accounts as an expensedepreciation accountingdepreciation accounting /di |�pri�ʃi |

�eiʃ(ə)n ə |�kaυntiŋ/ noun the process ofspreading the cost of an asset over its usefullifedepreciation provisiondepreciation provision /di |�pri�ʃi |

�eiʃ(ə)n prə|�vi (ə)n/ noun the amount ofdepreciation, in relation to a particular asset,that has been charged cumulatively to anaccount since the asset was acquireddepreciation ratedepreciation rate /di |�pri�ʃi|�eiʃ(ə)n reit/noun the rate at which an asset is depreci-ated each year in the company accountsdepressdepress /di|�pres/ verb to reduce some-thing � Reducing the money supply has theeffect of depressing demand for consumergoods.depressed marketdepressed market /di |�prest �mɑ�kit/noun a market where there are more goodsthan customersderegulatederegulate /di� |�re�jυleit/ verb to removegovernment controls from an industry � TheUS government deregulated the bankingsector in the 1980s.deregulationderegulation /di� |�re�jυ |�leiʃ(ə)n/ nounthe reduction of government control over anindustry � the deregulation of the airlines

‘…after the slump in receipts last year thatfollowed liner shipping deregulation in theUS, carriers are probably still losingmoney on their transatlantic services. Butwith a possible contraction in capacity andhealthy trade growth, this year has begun

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71 directorin a much more promising fashion thanlast’ [Lloyd’s List]

derivative instrumentsderivative instruments /di|�rivətiv�instrυmənts/, derivatives /di|�rivətivz/plural noun any forms of traded securitysuch as option contracts, which are derivedfrom ordinary bonds and shares, exchangerates or stock market indicesdesignated accountdesignated account /�dezi�neitid ə|

�kaυnt/ noun an account opened and held inone person’s name, but which also featuresanother person’s name for extra identifica-tion purposesdetailed auditdetailed audit /�di�teild �ɔ�dit/ noun anaudit that involves examining all or most ofa company’s transactions, rather than a sam-ple of themdevaluationdevaluation /�di�v�lju|�eiʃ(ə)n/ noun areduction in the value of a currency againstother currencies � the devaluation of theranddevaluedevalue /di� |�v�lju�/ verb to reduce thevalue of a currency against other currencies� The pound has been devalued by 7%.development costsdevelopment costs /di |�veləpməntkɒsts/ plural noun costs of developing newor improved products, sometimes also incor-porating a portion of standard overheadcostsdevisedevise /di|�vaiz/ noun the act of givingfreehold land to someone in a will � verb togive freehold property to someone in a willdeviseedevisee /divai |�zi�/ noun a person whoreceives freehold property in a willDFESDFES abbreviation Department for Educa-tion and Skillsdifferential tariffsdifferential tariffs /�difərenʃəl �t�rifs/plural noun different tariffs for differentclasses of goods as, e.g., when imports fromsome countries are taxed more heavily thansimilar imports from other countriesdigitdigit /�did it/ noun a single number � aseven-digit phone numberdigital analysisdigital analysis /�did it(ə)l ə|�n�ləsis/noun auditing techniques that investigate thedigits in accounting numbers to reveal fraudand errordiluted earnings per sharediluted earnings per share /dai |�lu�tid���rniŋz pə �ʃeə/ noun a hypothetical meas-ure of the quality of a company’s earningsper share that assumes all convertible secu-rities are exerciseddilution of shareholdingdilution of shareholding /dai|�lu�ʃ(ə)nəv �ʃeəhəυldiŋ/ noun a situation where theordinary share capital of a company hasbeen increased, but without an increase inthe assets so that each share is worth lessthan before

diminishdiminish /di |�miniʃ/ verb to becomesmaller � Our share of the market hasdiminished over the last few years.direct allocation methoddirect allocation method /�dairekt��lə|�keiʃ(ə)n �meθəd/, direct method /dai|

�rekt �meθəd/ noun a method of relating thecosts incurred by service departments of acompany to the production departmentsdirect costdirect cost /dai|�rekt �kɒst/ noun a costwhich can be directly related to the makingof a product, i.e. its production costdirect cost variancedirect cost variance /dai |�rekt kɒst�veəriəns/ noun the difference between theplanned direct costs for a product and theactual direct costsdirect debitdirect debit /dai|�rekt �debit/ noun a sys-tem where a customer allows a company tocharge costs to his or her bank account auto-matically and where the amount charged canbe increased or decreased with the agree-ment of the customer � I pay my electricitybill by direct debit. Abbreviation DDdirect expensesdirect expenses /dai|�rekt ik|�spensiz/plural noun expenses excluding materials,labour or purchase of stock for resale whichare incurred in making a productdirectional testingdirectional testing /dai |�rekʃən(ə)l�testiŋ/ noun an auditing technique bywhich work is reduced by testing debits onlyfor overstatement and credits only for under-statementdirectivedirective /dai|�rektiv/ noun an order orcommand to someone to do something �The Commission issued a directive on foodprices. (NOTE: Directives from the EuropeanUnion are binding, but member states canimplement them as they wish. A directive isbinding as to the result to be achieved, butleaves to the national authorities the choiceof form and method.)direct labour costsdirect labour costs /dai |�rekt �leibə�kɒsts/ plural noun the cost of employingthose workers directly involved in producinga particular product, not including materialsor overheadsdirect materials costdirect materials cost /dai|�rekt mə|

�tiəriəlz �kɒst/ noun the cost of the materi-als used in producing a particular productdirectordirector /dai |�rektə/ noun a senioremployee appointed by the shareholders tohelp run a company, who is usually in chargeof one or other of its main functions, e.g.sales or human relations, and usually, but notalways, a member of the board of directors

‘…the research director will manage anddirect a team of business analysts report-ing on the latest developments in retail dis-tribution throughout the UK’ [Times]

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directorate 72directoratedirectorate /dai |�rekt(ə)rət/ noun a groupof directorsDirector of the BudgetDirector of the Budget /dai |�rektər əvðə �b�d it/ noun the member of a govern-ment in charge of the preparation of thebudgetdirector’s feesdirector’s fees /dai |�rektəz fi�z/ pluralnoun money paid to a director for attend-ance at board meetingsdirectorshipdirectorship /dai|�rektəʃip/ noun the postof director � She was offered a directorshipwith Smith Ltddirectors’ reportdirectors’ report /dai |�rektəz ri |�pɔ�t/noun the annual report from the board ofdirectors to the shareholdersdirect product profitabilitydirect product profitability /dai |�rekt�prɒd�kt �prɒfitə |�biliti/ noun an assess-ment of the net profit generated by a partic-ular product, which considers costs such asdistribution, warehousing and retailing butnot the original purchase price. Abbrevia-tion DPPdirect share ownershipdirect share ownership /dai|�rekt �ʃeə�əυnəʃip/ noun the ownership of shares byprivate individuals, buying or sellingthrough brokers, and not via holdings in unittrustsdirect taxdirect tax /dai|�rekt �t�ks/ noun a tax thatis paid directly to the government, e.g.income tax, as distinct from a tax such asVAT that is paid indirectlydirect taxationdirect taxation /dai|�rekt t�k|�seiʃ(ə)n/noun the process in which a governmentraises revenue in the form of direct taxes �The government raises more money by directtaxation than by indirect.dirty floatdirty float /�d��ti fləυt/ noun the processof floating a currency, in which the govern-ment intervenes to regulate the exchangeratedisallowdisallow /�disə|�laυ/ verb not to accept aclaim for insurance � She claimed £2,000for fire damage, but the claim was disal-lowed.disallowabledisallowable /�disə |�laυəb(ə)l/ adjectivenot able to be allowed for tax relief � Theuse of a car for private travel is a disallow-able expense. Opposite allowabledisbursedisburse /dis|�b��s/ verb to pay moneydisbursementdisbursement /dis|�b��smənt/ noun thepayment of moneydischargedischarge /dis|�tʃɑ�d / noun /�distʃɑ�d /1. the act of paying a debt � in full dis-charge of a debt as full payment of a debt 2.� in discharge of her duties as directorwhile carrying out her duties as director �verb 1. to pay a debt � to discharge a bank-

rupt to release someone from bankruptcybecause they have has paid their debts 2. �to discharge a debt, to discharge your lia-bilities to pay a debt or your liabilities in full3. to dismiss an employee � to discharge anemployee for negligencedischarged bankruptdischarged bankrupt /dis|�tʃɑ�d d�b�ŋkr�pt/ noun a person who has beenreleased from being bankrupt because his orher debts have been paiddisclaimerdisclaimer /dis|�kleimə/ noun a legalrefusal to accept responsibilitydisclosedisclose /dis|�kləυz/ verb to tell some-thing that was previously unknown to otherpeople or secret � The bank has no right todisclose details of my account to the taxoffice.disclosuredisclosure /dis|�kləυ ə/ noun the act oftelling something that was previouslyunknown to other people or secret � The dis-closure of the takeover bid raised the priceof the shares.disclosure of shareholdingdisclosure of shareholding /dis|

�kləυ ər əv �ʃeəhəυldiŋ/ noun the act ofmaking public the fact that someone ownsshares in a companydiscountdiscount noun /�diskaυnt/ 1. the percent-age by which the seller reduces the full pricefor the buyer � to give a discount on bulkpurchases � to sell goods at a discount orat a discount price to sell goods below thenormal price � 10% discount for cash,10% cash discount you pay 10% less if youpay in cash 2. the amount by which some-thing is sold for less than its value � verb/dis|�kaυnt/ 1. to reduce prices to increasesales 2. � to discount bills of exchange tobuy or sell bills of exchange for less than thevalue written on them in order to cash themlater 3. to react to something which mayhappen in the future, such as a possible take-over bid or currency devaluation 4. to calcu-late the value of future income or expendi-ture in present value termsdiscountablediscountable /�diskaυntəb(ə)l/ adjec-tive possible to discount � These bills arenot discountable.discounted cash flowdiscounted cash flow /�diskaυntid�k�ʃ fləυ/ noun the calculation of the fore-cast return on capital investment by dis-counting future cash flows from the invest-ment, usually at a rate equivalent to the com-pany’s minimum required rate of return.Abbreviation DCFdiscounted valuediscounted value /�diskaυntid �v�lju�/noun the difference between the face valueof a share and its lower market price

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73 distributediscounterdiscounter /�diskaυntə/ noun a person orcompany that discounts bills or invoices, orsells goods at a discountdiscount for cashdiscount for cash /�diskaυnt fə �k�ʃ/noun same as cash discountdiscount housediscount house /�diskaυnt haυs/ nouna financial company which specialises indiscounting billsdiscount ratediscount rate /�diskaυnt reit/ noun therate charged by a central bank on any loansit makes to other banksdiscrepancydiscrepancy /di|�skrepənsi/ noun a lackof agreement between figures in invoices oraccountsdiscretiondiscretion /di|�skreʃ(ə)n/ noun the abilityto decide what should be donediscretionary accountdiscretionary account /di|

�skreʃ(ə)n(ə)ri ə|�kaυnt/ noun a client’saccount with a stockbroker, where the bro-ker invests and sells at his or her own discre-tion without the client needing to give himspecific instructionsdiscretionary clientdiscretionary client /di|�skreʃ(ə)n(ə)ri�klaiənt/ noun a client whose funds aremanaged on a discretionary basisdiscretionary costdiscretionary cost /di|�skreʃ(ə)n(ə)ri�kɒst/ noun a cost that can vary greatlywithin an accounting period and is deter-mined by the appropriate budget holderdiscretionary fundsdiscretionary funds /di|�skreʃ(ə)n(ə)ri�f�ndz/ plural noun funds managed on a dis-cretionary basisdiscretionary trustdiscretionary trust /di|�skreʃ(ə)n(ə)ri�tr�st/ noun a trust where the trusteesdecide how to invest the income and whenand how much income should be paid to thebeneficiariesdiseconomies of scalediseconomies of scale /disi|�kɒnəmizəv �skeil/ plural noun a situation whereincreased production leads to a higher pro-duction cost per unit or average productioncostdisequilibriumdisequilibrium /�disi�kwi|�libriəm/ nounan imbalance in the economy when supplydoes not equal demanddishonoured chequedishonoured cheque /dis|�ɒnəd �tʃek/noun a cheque which the bank will not paybecause there is not enough money in theaccount to pay itdisinvestdisinvest /�disin |�vest/ verb to reduceinvestment by not replacing capital assetswhen they wear outdisinvestmentdisinvestment /�disin|�vestmənt/ noun areduction in capital assets by not replacingthem when they wear outdispensationdispensation /�dispen|�seiʃ(ə)n/ nounarrangement between an employer and the

Inland Revenue by which business expensespaid to an employee are not declared for taxdisposable personal incomedisposable personal income /di|

�spəυzəb(ə)l �p��s(ə)nəl �ink�m/ noun theincome left after tax and National Insurancehave been deducted. Also called take-homepaydisposaldisposal /di |�spəυz(ə)l/ noun a sale � adisposal of securities � The company hasstarted a systematic disposal of its propertyportfolio. � lease or business for disposal alease or business for saledisposalsdisposals /di|�spəυz(ə)lz/ plural nounassets which have been sold or scrappeddisqualificationdisqualification /dis|�kwɒlifi|�keiʃ(ə)n/noun 1. the act of making someone disqual-ified to do something 2. a court order whichforbids a person from being a director of acompany. A variety of offences, even thosetermed as ‘administrative’, can result insome being disqualified for up to five years.disqualifydisqualify /dis|�kwɒlifai/ verb to make aperson unqualified to do something, such asto be a director of a companydissolutiondissolution /�disə|�lu�ʃ(ə)n/ noun theending of a partnershipdissolvedissolve /di|�zɒlv/ verb to bring to an end� to dissolve a partnershipdistraindistrain /di|�strein/ verb to seize goods topay for debtsdistressdistress /di |�stres/ noun the act of takingsomeone’s goods to pay for debtsdistress merchandisedistress merchandise /di |�stres�m��tʃəndais/ noun US goods sold cheaplyto pay a company’s debtsdistress saledistress sale /di |�stres seil/ noun a saleof goods at low prices to pay a company’sdebtsdistributabledistributable /dis|�tribjυtəb(ə)l/ adjec-tive possible to distributedistributable profitsdistributable profits /dis|�tribjυtəb(ə)l�prɒfits/ plural noun profits which can bedistributed to shareholders as dividends ifthe directors decide to do sodistributable reservedistributable reserve /di|�stribjυtb(ə)lri|�z��v/ noun a reserve fund that is able tobe distributed to shareholders in the form ofdividendsdistributedistribute /di |�stribju�t/ verb 1. to shareout dividends � Profits were distributedamong the shareholders. 2. to send outgoods from a manufacturer’s warehouse toretail shops � Smith Ltd distributes for sev-eral smaller companies. � All orders aredistributed from our warehouse nearOxford.

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distributed profits 74distributed profitsdistributed profits /di |�stribjυtid�prɒfits/ plural noun profits passed to share-holders in the form of dividendsdistributiondistribution /�distri|�bju�ʃ(ə)n/ noun theact of sending goods from the manufacturerto the wholesaler and then to retailers �Stock is held in a distribution centre whichdeals with all order processing. � Distribu-tion costs have risen sharply over the last 18months. � She has several years’ experienceas distribution manager.

‘British distribution companies are poisedto capture a major share of the Europeanmarket’ [Management News]

distribution costdistribution cost /�distri |�bju�ʃ(ə)n�kɒst/, distribution expense /�distri|

�bju�ʃ(ə)n ik |�spens/, distribution over-head /�distri|�bju�ʃ(ə)n �əυvəhed/ nounexpenditure involved in warehousing, pack-ing and sending products for saledistribution networkdistribution network /�distri |�bju�ʃ(ə)n�netw��k/ noun a series of points or smallwarehouses from which goods are sent allover a countrydistribution of incomedistribution of income/�distribju�ʃ(ə)n əv �ink�m/ noun the pay-ment of dividends to shareholdersdistributordistributor /di |�stribjυtə/ noun a com-pany which sells goods for another companywhich makes themdistributorshipdistributorship /di |�stribjυtəʃip/ nounthe position of being a distributor for a com-panyDistrict BankDistrict Bank /�distrikt �b�ŋk/ noun oneof the 12 US banks that make up the FederalReserve System. Each District Bank isresponsible for all banking activity in itsarea.diversificationdiversification /dai|�v��sifi|�keiʃ(ə)n/noun the process in which a company beginsto engage in a new and different type of busi-nessdiversifydiversify /dai|�v��sifai/ verb 1. to add newtypes of business to existing ones � Thecompany is planning to diversify into newproducts. 2. to invest in different types ofshares or savings so as to spread the risk oflossdivestituredivestiture /dai|�vestitʃə/ noun the saleof an assetdividenddividend /�dividend/ noun 1. a percent-age of profits paid to shareholders � to raiseor increase the dividend to pay out a higherdividend than in the previous year � to omitor pass the dividend to pay no dividend 2.a number or quantity that is to be divided byanother number or quantity

dividend checkdividend check /�dividend tʃek/ nounUS same as dividend warrantdividend coverdividend cover /�dividend �k�və/ nounthe ratio of profits to dividends paid toshareholdersdividend forecastdividend forecast /�dividend �fɔ�kɑ�st/noun a forecast of the amount of an expecteddividenddividend growth modeldividend growth model /�dividend�rəυθ �mɒd(ə)l/ noun a financial model thatassesses the value of a company using fig-ures for its current and assumed future divi-dend paymentsdividend mandatedividend mandate /�dividend�m�ndeit/ noun authorisation by a share-holder to the company, to pay his or her div-idends directly into a bank accountdividend payoutdividend payout /�dividend �peiaυt/noun money paid as dividends to sharehold-ersdividend per sharedividend per share /�dividend pə �ʃeə/noun an amount of money paid as dividendfor each share helddividend warrantdividend warrant /�dividend �wɒrənt/noun a cheque which makes payment of adividend (NOTE: The US term is dividendcheck.)dividend yielddividend yield /�dividend ji�ld/ noun adividend expressed as a percentage of thecurrent market price of a sharedividend yield basisdividend yield basis /�dividend ji�ld�beisis/ noun a method of valuing shares ina company, by which the dividend per shareis divided by the expected dividend yielddivisional headquartersdivisional headquarters /di|�vi (ə)nəlhed|�kwɔ�təz/ plural noun the main office ofa division of a companydivisordivisor /di |�vaizə/ noun a number dividedinto another numberdocumentdocument /�dɒkjυmənt/ noun a paper,especially an official paper, with writteninformation on it � He left a file of docu-ments in the taxi. � She asked to see the doc-uments relating to the case.documentarydocumentary /�dɒkjυ |�ment(ə)ri/ adjec-tive in the form of documents � documen-tary evidencedocumentary creditdocumentary credit /�dɒkjυment(ə)ri�kredit/ noun a credit document used inexport trade, when a bank issues a letter ofcredit against shipping documentsdocumentationdocumentation /�dɒkjυmen|�teiʃ(ə)n/noun all the documents referring to some-thing � Please send me the complete docu-mentation concerning the sale.dollardollar /�dɒlə/ noun a unit of currency usedin the US and other countries such as Aus-

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75 drafttralia, Bahamas, Barbados, Bermuda, Bru-nei, Canada, Fiji, Hong Kong, Jamaica, NewZealand, Singapore and Zimbabwe � TheUS dollar rose 2%. � They sent a cheque forfifty Canadian dollars. � It costs six Austral-ian dollars.dollar areadollar area /�dɒlər �eəriə/ noun an area ofthe world where the US dollar is the maintrading currencydollar balancesdollar balances /�dɒlə �b�lənsiz/ pluralnoun a country’s trade balances expressed inUS dollarsdollar-cost averagingdollar-cost averaging /�dɒlər kɒst��v(ə)rid iŋ/ noun � pound-cost averag-ingdollar crisisdollar crisis /�dɒlə �kraisis/ noun a fall inthe exchange rate for the US dollardollar gapdollar gap /�dɒlə ���p/ noun a situationwhere the supply of US dollars is not enoughto satisfy the demand for them from over-seas buyersdollar millionairedollar millionaire /�dɒlə �miljə |�neə/noun a person who has more than one mil-lion dollarsdollar stocksdollar stocks /�dɒlə �stɒks/ plural nounshares in US companiesdomestic productiondomestic production /də|�mestik prə|

�d�kʃən/ noun the production of goods foruse in the home countrydomiciledomicile /�dɒmisail/ noun the countrywhere someone lives or where a company’soffice is registered � verb � she is domi-ciled in Denmark she lives in Denmarkofficiallydonationdonation /dəυ|�neiʃ(ə)n/ noun a gift, espe-cially to a charitydoneedonee /�dəυ|�ni�/ noun a person whoreceives a gift from a donordonordonor /�dəυnə/ noun a person who gives,especially someone who gives moneydormantdormant /�dɔ�mənt/ adjective no longeractive or no longer operatingdormant accountdormant account /�dɔ�mənt ə|�kaυnt/noun a bank account which is no longer useddormant companydormant company /�dɔ�mənt�k�mp(ə)ni/ noun company which has notmade any transactions during an accountingperioddot.comdot.com /�dɒt �kɒm/, dot-com /�dɒt�kɒm/ noun a business that markets its prod-ucts through the Internet, rather than byusing traditional marketing channelsdouble-entry bookkeepingdouble-entry bookkeeping /�d�b(ə)l�entri �bυkki�piŋ/ noun the most com-monly used system of bookkeeping, basedon the principle that every financial transac-

tion is accounted for on both the credit anddebit side of an accountdouble taxationdouble taxation /�d�b(ə)l t�k|�seiʃ(ə)n/noun the act of taxing the same incometwicedouble taxation agreementdouble taxation agreement /�d�b(ə)lt�k|�seiʃ(ə)n ə|��ri�mənt/, double taxa-tion treaty /�d�b(ə)l t�k|�seiʃ(ə)n �tri�ti/noun an agreement between two countriesthat a person living in one country shall notbe taxed in both countries on the incomeearned in the other countrydouble taxation reliefdouble taxation relief /�d�b(ə)l t�k|

�seiʃ(ə)n ri|�li�f/ noun a reduction of taxpayable in one country by the amount of taxon income, profits or capital gains alreadypaid in another countrydoubtfuldoubtful /�daυtf(ə)l/ adjective � doubtfuldebt a debt which may never be paid �doubtful loan a loan which may never berepaiddoubtful debt provisiondoubtful debt provision /�daυtf(ə)l�det prə|�vi (ə)n/ noun � bad debt provi-siondoubtful loandoubtful loan /�daυtf(ə)l �ləυn/ noun aloan which may never be repaiddowngradedowngrade /�daυn�reid/ verb 1. toreduce the status of an employee or position� The post was downgraded in the companyreorganisation. 2. to revise an earlier assess-ment of a company’s future financial posi-tion, or of the return on an investment, togive a less favourable likely outcomedown paymentdown payment /�daυn �peimənt/ nounpart of a total payment made in advance �We made a down payment of $100.downside factordownside factor /�daυnsaid �f�ktə/,downside potential /�daυnsaid pə|

�tenʃ(ə)l/ noun the possibility of making aloss in an investmentdownside riskdownside risk /�daυnsaid risk/ noun therisk that an investment will fall in value.Opposite upside potentialdown timedown time /�daυn taim/ noun the timewhen a machine is not working or not avail-able because it is broken or being mendeddownturndownturn /�daυnt��n/ noun a downwardtrend in sales or profits � a downturn in themarket price � The last quarter saw a down-turn in the economy.DPPDPP abbreviation direct profit profitabilitydraftdraft /drɑ�ft/ noun 1. an order for money tobe paid by a bank � We asked for payment bybanker’s draft. 2. a first rough plan or docu-ment which has not been finished � Thefinance depart � A draft of the contract orThe draft contract is waiting for the MD’scomments. � He drew up the draft agree-

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drafting 76ment on the back of an envelope. � verb tomake a first rough plan of a document � todraft a letter � to draft a contract � Thecontract is still being drafted or is still in thedrafting stage.draftingdrafting /�drɑ�ftiŋ/ noun an act of prepar-ing the draft of a document � The drafting ofthe contract took six weeks.draindrain /drein/ noun a gradual loss of moneyflowing away � The costs of the Londonoffice are a continual drain on ourresources. � verb to remove somethinggradually � The expansion plan has drainedall our profits. � The company’s capitalresources have drained away.drawdraw /drɔ�/ verb 1. to take money away �to draw money out of an account 2. to writea cheque � She paid the invoice with acheque drawn on an Egyptian bank. (NOTE:drawing – drew – has drawn)draw up phrasal verb to write a legal docu-ment � to draw up a contract or an agree-ment � to draw up a company’s articles ofassociationdrawbackdrawback /�drɔ�b�k/ noun 1. somethingwhich is not convenient or which is likely tocause problems � One of the main draw-backs of the scheme is that it will take sixyears to complete. 2. a rebate on customsduty for imported goods when these are thenused in producing exportsdrawdowndrawdown /�drɔ�daυn/ noun the act ofdrawing money which is available under acredit agreementdraweedrawee /drɔ� |�i�/ noun the person or bankasked to make a payment by a drawerdrawerdrawer /�drɔ�ə/ noun the person whowrites a cheque or a bill asking a drawee topay money to a payeedrawing accountdrawing account /�drɔ�iŋ ə|�kaυnt/noun a current account, or any account fromwhich the customer may take money whenhe or she wantsdrawingsdrawings /�drɔ�iŋz/ plural noun money ortrading stock taken by a partner from a part-nership, or by a sole trader from his or herbusinessdrawings accountdrawings account /�drɔ�iŋz ə |�kaυnt/noun an account showing amounts drawn bypartners in a partnershipdropdrop /drɒp/ noun a fall � a drop in sales �Sales show a drop of 10%. � The drop inprices resulted in no significant increase insales. � verb to fall � Sales have dropped by10% or have dropped 10%. � The pounddropped three points against the dollar.

‘…while unemployment dropped by 1.6per cent in the rural areas, it rose by 1.9 per

cent in urban areas during the period underreview’ [Business Times (Lagos)]‘…corporate profits for the first quartershowed a 4 per cent drop from last year’sfinal three months’ [Financial Times]‘…since last summer American interestrates have dropped by between three andfour percentage points’ [Sunday Times]

droplock bonddroplock bond /�drɒplɒk bɒnd/ noun afloating rate bond which will convert to afixed rate of interest if interest rates fall tosome level. � debt-convertible bonddry goodsdry goods /�drai ��υdz/ plural noun cloth,clothes and household goodsDTIDTI abbreviation Department of Trade andIndustrydual currency bonddual currency bond /�dju�əl �k�rənsibɒnd/ noun a bond which is paid for in onecurrency but which is repayable in anotheron redemptiondual listingdual listing /�dju�əl �listiŋ/ noun the list-ing of a share on two stock exchangesdual pricingdual pricing /�dju�əl �praisiŋ/ noun thepractice of setting different prices for agiven product in the different market inwhich it is solddual residentdual resident /�dju�əl �rezid(ə)nt/ nouna person who is legally resident in two coun-triesduddud /d�d/ noun, adjective referring to acoin or banknote that is false or not good, orsomething that does not do what it is sup-posed to do (informal) � The £50 note was adud.dud chequedud cheque /�d�d �tʃek/ noun a chequewhich cannot be cashed because the personwriting it does not have enough money in theaccount to pay itduedue /dju�/ adjective owed � a sum due froma debtor � to fall or become due to be readyfor payment

‘…many expect the US economic indica-tors for April, due out this Thursday, toshow faster economic growth’ [AustralianFinancial Review]

due datedue date /�dju� deit/ noun the date onwhich a debt is required to be paiddue diligencedue diligence /�dju� �dilid əns/ nounthe examination of a company’s accountsprior to a potential takeover by anotherorganisation. This assessment is oftenundertaken by an independent third party.duesdues /dju�z/ plural noun orders taken butnot supplied until new stock arrivesdumpingdumping /�d�mpiŋ/ noun the act of get-ting rid of excess goods cheaply in an over-seas market � The government has passed

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77 duty-paid goodsanti-dumping legislation. � Dumping ofgoods on the European market is banned.Dun & BradstreetDun & Bradstreet /�d�n ən �br�dstri�t/noun an organisation which producesreports on the financial rating of companies,and also acts as a debt collection agency.Abbreviation D&Bdutyduty /�dju�ti/ noun a tax that has to be paid� Traders are asking the government to takethe duty off alcohol or to put a duty on ciga-rettes.

‘Canadian and European negotiatorsagreed to a deal under which Canada couldlower its import duties on $150 million

worth of European goods’ [Globe andMail (Toronto)]‘…the Department of Customs and Excisecollected a total of N79m under the newadvance duty payment scheme’ [BusinessTimes (Lagos)]


duty-free /�dju�ti �fri�/ adjective, adverbsold with no duty to be paid � She boughtduty-free perfume at the airport. � Hebought the watch duty-free.duty-paid goods

duty-paid goods /�dju�ti �peid �υdz/plural noun goods where the duty has beenpaid

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Ee-e- /i�/ prefix referring to electronics or theInternetEAAEAA abbreviation European AccountingAssociatione. & o.e.e. & o.e. abbreviation errors and omissionsexceptedearly withdrawalearly withdrawal /���li wið|�drɔ�əl/ nounthe act of withdrawing money from a depositaccount before the due date � Early with-drawal usually incurs a penalty.earmarkearmark /�iəmɑ�k/ verb to reserve for aspecial purpose � to earmark funds for aproject � The grant is earmarked for com-puter systems development.earnearn /��n/ verb 1. to be paid money forworking � to earn £100 a week � How muchdo you earn in your new job? 2. to produceinterest or dividends � a building societyaccount which earns interest at 10% � Whatlevel of dividend do these shares earn?earned incomeearned income /���nd �ink�m/ nounincome from wages, salaries, pensions, fees,rental income, etc., as opposed to ‘unearned’income from investmentsearnestearnest /���nist/ noun money paid as aninitial payment by a buyer to a seller, toshow commitment to the contract of saleearning capacityearning capacity /���niŋ kə|�p�siti/,earning power /���niŋ �paυə/ noun theamount of money someone should be able toearnearning potentialearning potential /���niŋ pə|�tenʃəl/noun 1. the amount of money a personshould be able to earn in his or her profes-sional capacity 2. the amount of dividendwhich a share is capable of earningearning powerearning power /���niŋ �paυə/ noun theamount of money someone should be able toearn � She is such a fine designer that herearning power is very large.earningsearnings /���niŋz/ plural noun 1. salary,wages, dividends or interest received � Highearnings in top management reflect theheavy responsibilities involved. � The cal-

culation is based on average earnings overthree years. 2. the profit made by a company

‘…the US now accounts for more than halfof our world-wide sales. It has made ahuge contribution to our earnings turna-round’ [Duns Business Month]‘…last fiscal year the chain reported a116% jump in earnings, to $6.4 million or$1.10 a share’ [Barrons]

earnings before interest, taxes, depreciation and amortisationearnings before interest, taxes,depreciation and amortisation/���niŋz bi|�fɔ� �intrəst �t�ksiz di|

�pri�ʃieiʃ(ə)n ənd ə|�mɔ�tai |�zeiʃ(ə)n/ plu-ral noun the earnings generated by a busi-ness’s fundamental operating performance,frequently used in accounting ratios forcomparison with other companies. Intereston borrowings, tax payable on those profits,depreciation, and amortisation are excludedon the basis that they can distort the under-lying performance. Abbreviation EBITDAearnings before interest and taxearnings before interest and tax/���niŋz bi|�fɔ� �intrəst ən t�ks/ noun theamount earned by a business before deduc-tions are made for tax and interest payments.Abbreviation EBITearnings capearnings cap /���niŋz k�p/ noun theupper limit on the amount of salary that canbe taken into account when calculating pen-sionsearnings growthearnings growth /���niŋz �rəυθ/ nounan increase in profit per shareearnings performanceearnings performance /���niŋz pə|

�fɔ�məns/ noun a way in which shares earndividendsearnings per shareearnings per share /���niŋz pə �ʃeə/plural noun the money earned in dividendsper share, shown as a percentage of the mar-ket price of one share. Abbreviation EPSearnings-related contributionsearnings-related contributions/���niŋz ri |�leitid �kɒntri |�bju�ʃ(ə)nz/ plu-ral noun contributions to social securitywhich rise as the employee’s earnings riseearnings-related pensionearnings-related pension /���niŋz ri|

�leitid �penʃən/ noun a pension which islinked to the size of a person’s salary

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79 economic modelearnings surprisesearnings surprises /���niŋz sə |�praiziz/plural noun an announced income level for acompany that is significantly higher or lowerthan that forecast by analystsearnings yieldearnings yield /���niŋz ji�ld/ noun themoney earned in dividends per share as apercentage of the current market price of theshareeaseease /i�z/ verb to fall a little � The shareindex eased slightly today.easy marketeasy market /�i�zi �mɑ�kit/ noun a mar-ket where few people are buying, so pricesare lower than they were beforeeasy moneyeasy money /�i�zi �m�ni/ noun 1. moneywhich can be earned with no difficulty 2. aloan available on easy repayment termseasy money policyeasy money policy /�i�zi �m�ni �pɒlisi/noun a government policy of expanding theeconomy by making money more easilyavailable, e.g. through lower interest ratesand easy access to crediteasy termseasy terms /�i�zi �t��mz/ plural nounfinancial terms which are not difficult toaccept � The shop is let on very easy terms.EBITEBIT /�i�bit/ abbreviation earnings beforeinterest and taxEBITDAEBITDA /�i�bit|�dɑ�/ abbreviation earningsbefore interest, taxes, depreciation andamortisationEBRDEBRD abbreviation European Bank forReconstruction and Developmente-businesse-business /�i� �biznis/ noun a generalterm that refers to any type of business activ-ity on the Internet, including marketing,branding and research � E-business is a ris-ing part of the economy.

‘…the enormous potential of e-business isthat it can automate the link between sup-pliers and customers’ [Investors Chroni-cle]

ECBECB abbreviation European Central BankECGDECGD abbreviation Export Credit Guaran-tee Departmente-commercee-commerce /�i� �kɒm��s/ noun a generalterm that is usually used to refer to the proc-ess of buying and selling goods over theInternet

‘…the problem is that if e-commerce takesjust a 3 per cent slice of the market thatwould be enough to reduce margins to rib-bons’ [Investors Chronicle]‘…the new economy requires new com-pany structures. He believes that otherblue-chip organizations are going to findthat new set-ups would be needed to attractand retain the best talent for e-commerce’[Times]

econometricseconometrics /i|�kɒnə|�metriks/ nounthe study of the statistics of economics,using computers to analyse these statisticsand make forecasts using mathematicalmodelseconomiceconomic /�i�kə|�nɒmik/ adjective 1. pro-viding enough money to make a profit � Theflat is let at an economic rent. � It is hardlyeconomic for the company to run its ownwarehouse. 2. referring to the financial stateof a country � economic trends � Economicplanners are expecting a consumer-ledboom. � The economic situation is gettingworse. � The country’s economic systemneeds more regulation.

‘…each of the major issues on the agendaat this week’s meeting is important to thegovernment’s success in overall economicmanagement’ [Australian FinancialReview]

economicaleconomical /�i�kə|�nɒmik(ə)l/ adjectivesaving money or materials or being lessexpensive � This car is very economical. �an economical use of resources the fact ofusing resources as carefully as possibleEconomic and Monetary UnionEconomic and Monetary Union/�i�kənɒmik ən �m�nit(ə)ri �ju�njən/ nounsame as European Monetary Unioneconomic crisiseconomic crisis /�i�kənɒmik �kraisis/,economic depression /�i�kənɒmik di|

�preʃ(ə)n/ noun a situation where a countryis in financial collapse � The governmenthas introduced import controls to solve thecurrent economic crisis.economic cycleeconomic cycle /�i�kənɒmik �saik(ə)l/noun a period during which trade expands,then slows down and then expands againeconomic developmenteconomic development /�i�kənɒmikdi |�veləpmənt/ noun improvements in theliving standards and wealth of the citizens ofa country � The government has offered taxincentives to speed up the economic devel-opment of the region. � Economic develop-ment has been relatively slow in the north,compared with the rest of the country.economic forecastereconomic forecaster /�i�kənɒmik�fɔ�kɑ�stə/ noun a person who says how heor she thinks a country’s economy will per-form in the futureeconomic growtheconomic growth /�i�kənɒmik ��rəυθ/noun the rate at which a country’s nationalincome growseconomic lifeeconomic life /�i�kənɒmik �laif/ nounthe extent of trade and manufacturing in acountry, regarded as a measure of its relativeprosperityeconomic modeleconomic model /�i�kənɒmik �mɒd(ə)l/noun a computerised plan of a country’s

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economic order quantity 80economic system, used for forecasting eco-nomic trendseconomic order quantityeconomic order quantity /�i�kənɒmik�ɔ�də �kwɒntiti/ noun the quantity of stockswhich a company should hold, calculated onthe basis of the costs of warehousing, oflower unit costs because of higher quantitiespurchased, the rate at which stocks are used,and the time it takes for suppliers to delivernew orders. Abbreviation EOQeconomic planningeconomic planning /�i�kənɒmik�pl�niŋ/ noun plans made by a governmentfor the future financial state of a countryeconomicseconomics /�i�kə|�nɒmiks/ noun thestudy of the production, distribution, sellingand use of goods and services � plural nounthe study of financial structures to show howa product or service is costed and whatreturns it produces � I do not understand theeconomics of the coal industry. (NOTE: [allsenses] takes a singular verb)economic sanctionseconomic sanctions /�i�kənɒmik�s�ŋkʃ(ə)nz/ plural noun restrictions ontrade that foreign governments impose withthe aim of influencing the political situationof a country � to impose economic sanctionson a countryeconomic stagnationeconomic stagnation /�i�kənɒmikst��|�neiʃ(ə)n/ noun a lack of expansion inthe economyeconomic value addedeconomic value added /�i�kənɒmik�v�lju� ��did/ noun a way of judging finan-cial performance by measuring the amountby which the earnings of a project, an oper-ation or a company exceed or fall short ofthe total amount of capital that was origi-nally invested by its owners. AbbreviationEVAeconomies of scaleeconomies of scale /i |�kɒnəmiz əv�skeil/ plural noun the cost advantages of acompany producing a product in largerquantities so that each unit costs less tomake. Compare diseconomies of scaleeconomies of scopeeconomies of scope /i |�kɒnəmiz əv�skəυp/ plural noun the cost advantages of acompany producing a number of products orengaging in a number of profitable activitiesthat use the same technologyeconomisteconomist /i|�kɒnəmist/ noun a personwho specialises in the study of economics �Government economists are forecasting agrowth rate of 3% next year. � An agricul-tural economist studies the economics of theagriculture industry.economyeconomy /i |�kɒnəmi/ noun 1. an actionwhich is intended to stop money or materialsfrom being wasted, or the quality of beingcareful not to waste money or materials � to

introduce economies or economy meas-ures into the system to start using methodsto save money or materials 2. the financialstate of a country, or the way in which acountry makes and uses its money � Thecountry’s economy is in ruins.economy driveeconomy drive /i |�kɒnəmi draiv/ noun avigorous effort to save money or materialsECPECP abbreviation Eurocommercial paperecuecu /�ekju�/, ECU abbreviation EuropeanCurrency UnitEDED abbreviation exposure draftEDIEDI abbreviation electronic data inter-changeEEAEEA abbreviation European EconomicAreaeffecteffect /i|�fekt/ noun 1. a result � The effectof the pay increase was to raise productivitylevels. 2. an operation � terms of a contractwhich take effect or come into effect fromJanuary 1st terms which start to operate onJanuary 1st 3. meaning � a clause to theeffect that a clause which means that � verbto carry outeffectiveeffective /i|�fektiv/ adjective 1. actual, asopposed to theoretical 2. � a clause effec-tive as from January 1st a clause whichstarts to be applied on January 1st 3. produc-ing results � Advertising in the Sundaypapers is the most effective way of selling. �She is an effective marketing manager. �cost-effectiveeffective annual rateeffective annual rate /i|�fektiv ��njuəl�reit/ noun the average interest rate paid ona deposit for a period of a year. It is the totalinterest received over 12 months expressedas a percentage of the principal at the begin-ning of the period.effective dateeffective date /i |�fektiv deit/ noun thedate on which a rule or contract starts to beapplied, or on which a transaction takesplaceeffective demandeffective demand /i|�fektiv di |�mɑ�nd/noun demand for a product made by individ-uals and institutions with sufficient wealthpay for iteffective exchange rateeffective exchange rate /i |�fektiv iks|

�tʃeind �reit/ noun a rate of exchange for acurrency calculated against a basket of cur-rencieseffective priceeffective price /i|�fektiv �prais/ noun ashare price which has been adjusted to allowfor a rights issueeffective rateeffective rate /i|�fektiv �reit/ noun thereal interest rate on a loan or deposit, i.e., theAPR

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81 embargoeffective tax rateeffective tax rate /i |�fektiv �t�ks �reit/noun the average tax rate applicable to agiven transaction, whether it is income fromwork undertaken, the sale of an asset, or agift, taking into account personal allowancesand scales of tax. It is the amount of moneygenerated by the transaction divided by theadditional tax payable because of it.effective yieldeffective yield /i|�fektiv �ji�ld/ nounactual yield shown as a percentage of theprice paid after adjustments have been madeefficiency ratioefficiency ratio /i |�fiʃ(ə)nsi �reiʃiəυ/noun a measure of the efficiency of a busi-ness, expressed as expenditure divided byrevenueefficiency varianceefficiency variance /i |�fiʃ(ə)nsi�veəriəns/ noun the discrepancy betweenthe actual cost of making a product and thestandard costEfficient Market HypothesisEfficient Market Hypothesis /i|

�fiʃ(ə)nt �mɑ�kit hai |�pɒθəsis/, EfficientMarkets Hypothesis /i |�fiʃ(ə)nt �mɑ�kitshai |�pɒθəsis/ noun the hypothesis that allrelevant information is immediatelyreflected in the price of a security. Abbrevi-ation EMHEFTEFT abbreviation electronic funds transferEFTAEFTA abbreviation European Free TradeAssociationEFTPOSEFTPOS /�eftpɒz/ abbreviation electronicfunds transfer at point of saleEIBEIB abbreviation European InvestmentBankeighty/twenty laweighty/twenty law /�eiti �twenti ru�l/,80/20 law noun the rule that a small percent-age of customers may account for a largepercentage of sales. � Pareto’s LawEISEIS abbreviation Enterprise InvestmentSchemeelasticelastic /i|�l�stik/ adjective able to expandor contract easily because of small changesin priceelasticityelasticity /�il�|�stisiti/ noun the ability tochange easily in response to a change in cir-cumstanceseldercareeldercare /�eldəkeə/ noun assurance serv-ices sold to elderly people and their families-elect-elect /ilekt/ suffix referring to a personwho has been elected but has not yet startedthe term of officeelectronic bankingelectronic banking /�elektrɒnik�b�ŋkiŋ/ noun the use of computers tocarry out banking transactions such as with-drawals through cash dispensers or transferof funds at point of saleelectronic data interchangeelectronic data interchange/�elektrɒnik �deitə �intətʃeind / noun a

standard format used when business docu-ments such as invoices and purchase ordersare exchanged over electronic networkssuch as the Internet. Abbreviation EDIelectronic funds transferelectronic funds transfer /�elektrɒnik�f�ndz �tr�nsf��/ noun the system used bybanking organisations for the movement offunds between accounts and for the provi-sion of services to the customer. Abbrevia-tion EFTelectronic funds transfer at point of saleelectronic funds transfer at point ofsale /�elektrɒnik �f�ndz �tr�nsf�� ət�pɔint əv �seil/ noun the payment for goodsor services by a bank customer using a cardthat is swiped through an electronic readeron the till, thereby transferring the cash fromthe customer’s account to the retailer’s orservice provider’s account. AbbreviationEFTPOSElectronic Lodgement ServiceElectronic Lodgement Service/�elektrɒnik �lɒd mənt �s��vis/ noun aBritish system for filing your tax return elec-tronically. Abbreviation ELSelectronic point of saleelectronic point of sale /�elektrɒnikpɔint əv �seil/ noun a system where salesare charged automatically to a customer’scredit card and stock is controlled by theshop’s computer. Abbreviation EPOSelectronic version of the tax returnelectronic version of the tax return/�elektrɒnik �v��ʃ(ə)n əv ðə �t�ks ri|�t��n/noun a method of making an individual’s taxreturn using email. Abbreviation EVRELSELS abbreviation Electronic LodgementServiceemailemail /�i�meil/, e-mail noun 1. a system ofsending messages from one computer termi-nal to another, using a modem and telephonelines � You can contact me by phone oremail if you want. 2. a message sent elec-tronically � I had six emails from him today.� verb to send a message from one compu-ter to another, using a modem and telephonelines � She emailed her order to the ware-house. � I emailed him about the meeting.embargoembargo /im |�bɑ��əυ/ noun 1. a govern-ment order which stops a type of trade � toimpose or put an embargo on trade with acountry to say that trade with a countrymust not take place � The government hasput an embargo on the export of computerequipment. 2. a period of time during whichspecific information in a press release mustnot be published (NOTE: The plural isembargoes.) � verb 1. to stop trade, or notto allow something to be traded � The gov-ernment has embargoed trade with coun-tries that are in breach of internationalagreements. 2. not to allow publication of

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embezzle 82information for a period of time � The newsof the merger has been embargoed until nextWednesday.embezzleembezzle /im|�bez(ə)l/ verb to use ille-gally money which is not yours, or whichyou are looking after for someone � He wassent to prison for six months for embezzlinghis clients’ money.embezzlementembezzlement /im |�bez(ə)lmənt/ nounthe act of embezzling � He was sent toprison for six months for embezzlement.embezzlerembezzler /im |�bez(ə)lə/ noun a personwho embezzlesEMHEMH abbreviation Efficient MarketHypothesisemolumentsemoluments /i |�mɒljυmənts/ plural nounpay, salary or fees, or the earnings of direc-tors who are not employees (NOTE: US Eng-lish uses the singular emolument.)employedemployed /im|�plɔid/ adjective 1. in regu-lar paid work 2. referring to money usedprofitably � plural noun people who areworking � the employers and the employedemployeeemployee /im |�plɔii�/ noun a personemployed by another � Employees of thefirm are eligible to join a profit-sharingscheme. � Relations between managementand employees are good. � The companyhas decided to take on new employees.

‘…companies introducing robotics think itimportant to involve individual employeesin planning their introduction’ [Econo-mist]

employee contributionemployee contribution /im|�plɔii��kɒntri|�bju�ʃ(ə)n/ noun a contribution paidby an employee towards his or her pensionemployee share ownership planemployee share ownership plan /im|

�plɔii� �ʃeər �əυnəʃip �pl�n/, employeeshare ownership programme /im|�plɔii��ʃeər �əυnəʃip �prəυ�r�m/, employeeshare scheme /im|�plɔii� �ʃeə �ski�m/noun a plan which allows employees toobtain shares in the company for which theywork, though tax may be payable if theshares are sold to employees at a price whichis lower than the current market price.Abbreviation ESOPemployeremployer /im|�plɔiə/ noun a person orcompany that has regular employees andpays thememployer’s contributionemployer’s contribution /im|�plɔiəz�kɒntri|�bju�ʃ(ə)n/ noun money paid by anemployer towards an employee’s pensionemployers’ liability insuranceemployers’ liability insurance /im|

�plɔiəz �laiə|�biliti in|�ʃυərəns/ noun insur-ance to cover accidents which may happenat work, and for which the company may beresponsible

employment contractemployment contract /im|�plɔimənt�kɒntr�kt/ noun same as contract ofemploymentemployment incomeemployment income /im|�plɔimənt�ink�m/ noun money received from anemployer, e.g. salary, fees, commission,bonus, fringe benefitsEMSEMS abbreviation European Monetary Sys-temEMUEMU abbreviation 1. Economic and Mone-tary Union 2. European Monetary Unionencashencash /in|�k�ʃ/ verb to cash a cheque, toexchange a cheque for cashencashableencashable /in|�k�ʃəb(ə)l/ adjective pos-sible to cashencashmentencashment /in|�k�ʃmənt/ noun an actof exchanging something for cashencumbranceencumbrance /in|�k�mbrəns/ noun a lia-bility which is attached usually to a propertyor land, e.g. a mortgage or chargeendorseendorse /in |�dɔ�s/ verb to say that a prod-uct is good � to endorse a bill or a chequeto sign a bill or cheque on the back to showthat you accept itendorseeendorsee /�endɔ�|�si�/ noun a personwhose name is written on a bill or cheque ashaving the right to cash itendorsementendorsement /in|�dɔ�smənt/ noun 1. theact of endorsing 2. a signature on a docu-ment which endorses it 3. a note on an insur-ance policy which adds conditions to thepolicyendorserendorser /in|�dɔ�sə/ noun a person whoendorses a bill or cheque which is then paidto him or herendowmentendowment /in|�daυmənt/ noun the actof giving money to provide a regular incomeendowment assuranceendowment assurance /in|�daυmənt ə|

�ʃυərəns/, endowment insurance /in|

�daυmənt in |�ʃυərəns/ noun an insurancepolicy where a sum of money is paid to theinsured person on a specific date or to hisheirs if he dies before that dateendowment mortgageendowment mortgage /in|�daυmənt�mɔ��id / noun a mortgage in which the ini-tial sum borrowed is repaid at the end of theloan term by the proceeds of an insurancepolicy linked to itendowment policyendowment policy /in|�daυmənt�pɒlisi/ noun same as endowment assur-anceend productend product /�end �prɒd�kt/ noun amanufactured product resulting from a pro-duction processenergy costsenergy costs /�enəd i kɒsts/ plural nouncosts of gas, electricity, etc., as shown inaccounts

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83 equallyenforceenforce /in |�fɔ�s/ verb to make sure some-thing is done or that a rule is obeyed � toenforce the terms of a contractenforcementenforcement /in |�fɔ�smənt/ noun the actof making sure that something is obeyed �enforcement of the terms of a contractengagementengagement /in|��eid mənt/ noun anagreement to do somethingengagement letterengagement letter /in|��eid mənt�letə/ noun a letter, usually required by pro-fessional standards, sent by an accountant toa client setting out the work the accountantis to do and further administrative matters,such as any limit on the accountant’s liabil-ityentailentail /in|�teil/ noun a legal conditionwhich passes ownership of a property onlyto some specific personsenterpriseenterprise /�entəpraiz/ noun 1. a systemof carrying on a business 2. a businessenterprise accountingenterprise accounting /�entəpraiz ə|

�kaυntiŋ/ noun accounts prepared for thewhole of a business, not merely for a depart-ment or other subdivisionsEnterprise Investment SchemeEnterprise Investment Scheme/�entəpraiz in |�vestmənt ski�m/ noun ascheme which provides income and capitalgains tax relief for people prepared to riskinvesting in a single unquoted or AIM-listedtrading company. Abbreviation EISenterprise resource planningenterprise resource planning/�entəpraiz ri |�zɔ�s �pl�niŋ/ noun a sophis-ticated computerised management systemthat connects multiple business operations,e.g. personnel, the financial accounting sys-tem, production and distribution, and canalso connect the business with its suppliersand customers. Abbreviation ERPenterprise zoneenterprise zone /�entəpraiz zəυn/ nounan area of the country where businesses areencouraged to develop by offering specialconditions such as easy planning permissionfor buildings or a reduction in the businessrateentertainment allowanceentertainment allowance /�entə|

�teinmənt ə|�laυəns/ noun an amount ofmoney set aside by a company for entertain-ing clients and visitorsentertainment expensesentertainment expenses /�entə|

�teinmənt ik|�spensiz/ plural noun moneyspent on giving meals to business visitorsentitleentitle /in|�tait(ə)l/ verb to give the right tosomeone to have something � After oneyear’s service the employee is entitled tofour weeks’ holiday.entitlemententitlement /in|�tait(ə)lmənt/ noun a per-son’s right to something

entityentity /�entiti/ noun a single separate bodyor organisationentity accountingentity accounting /�entiti ə |�kaυntiŋ/noun a form of accounting in whichaccounts are prepared for an entity which issmaller than or distinct from a company, e.g.for a branch or a particular activityentrepreneurentrepreneur /�ɒntrəprə|�n��/ noun aperson who is willing to take commercialrisks by starting or financing commercialenterprisesentrepreneurialentrepreneurial /�ɒntrəprə|�n��riəl/adjective taking commercial risks � anentrepreneurial decisionentryentry /�entri/ noun 1. an item of writteninformation put in an accounts ledger (NOTE:The plural is entries.) 2. an act of going inor the place where you can go in � to pass acustoms entry point � entry of goods underbondentry priceentry price /�entri prais/ noun thereplacement cost of an asset recorded in anaccountentry valueentry value /�entri �v�lju�/ noun replace-ment cost, the cost of replacing an assetalready bought or a service already receivedand accounted forenvironmental accountingenvironmental accounting /in|

�vairənment(ə)l ə |�kaυntiŋ/ noun the prac-tice of including the indirect costs and bene-fits of a product or activity, e.g. its environ-mental effects on health and the economy,along with its direct costs when makingbusiness decisionsenvironmental reportingenvironmental reporting /in|�vairən|

�ment(ə)l ri |�pɔ�tiŋ/ noun the process inwhich a UK company reports on its use ofresources and its generation and disposal ofwaste to the Department for Environment,Food and Rural AffairsEOQEOQ abbreviation economic order quantityeposepos /�i�pɒs/, EPOS, EPoS abbreviationelectronic point of saleEPSEPS abbreviation earnings per shareequalequal /�i�kwəl/ adjective exactly the same� Male and female employees have equalpay. � verb to be the same as � Productionthis month has equalled our best month ever.(NOTE: equalling – equalled. The US spell-ing is equaling – equaled.)equaliseequalise /�i�kwəlaiz/, equalize verb tomake equal � to equalise dividendsequallyequally /�i�kwəli/ adverb so that each hasor pays the same, or to the same degree �Costs will be shared equally between the twoparties. � They were both equally responsi-ble for the disastrous launch.

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equate 84equateequate /i|�kweit/ verb to reduce to a stand-ard valueequationequation /i|�kwei (ə)n/ noun a set ofmathematical rules applied to solve a prob-lem � The basic accounting equation is thatassets equal liabilities plus equity.equilibriumequilibrium /�i�kwi|�libriəm/ noun thestate of balance in the economy where sup-ply equals demand or a country’s balance ofpayments is neither in deficit nor in excessequitiesequities /�ekwitiz/ plural noun ordinaryshares

‘…in the past three years commercialproperty has seriously underperformedequities and dropped out of favour as aresult’ [Investors Chronicle]

equityequity /�ekwiti/ noun 1. the right toreceive dividends from the profit of a com-pany in which shares are owned 2. the valueof a company that is the property of itsshareholders, calculated as the value of thecompany’s assets minus the value of its lia-bilities, not including the ordinary sharecapital 3. the value of an asset minus anyloans outstanding on it 4. a fair system oflaws, the system of British law which devel-oped in parallel with the common law tomake the common law fairer, summarised inthe maxim ‘equity does not suffer a wrong tobe without a remedy’equity accountingequity accounting /�ekwiti ə|�kaυntiŋ/noun a method of accounting which putspart of the profits of a subsidiary into theparent company’s booksequity capitalequity capital /�ekwiti �k�pit(ə)l/ nounthe nominal value of the shares owned by theordinary shareholders of a company (NOTE:Preference shares are not equity capital. Ifthe company were wound up, none of theequity capital would be distributed to prefer-ence shareholders.)equity dividend coverequity dividend cover /�ekwiti�dividend �k�və/ noun an accounting ratio,calculated by dividing the distributable prof-its during a given period by the actual divi-dend paid in that period, that indicates thelikelihood of the dividend being maintainedin future years. � capital reservesequity financeequity finance /�ekwiti �fain�ns/ nounfinance for a company in the form of ordi-nary shares paid for by shareholdersequity gearingequity gearing /�ekwiti ��iəriŋ/ nounthe ratio between a company’s borrowings atinterest and its ordinary share capitalequity kickerequity kicker /�ekwiti �kikə/ noun US anincentive given to people to lend a companymoney, in the form of a warrant to share in

future earnings (NOTE: The UK term isequity sweetener.)equity share capitalequity share capital /�ekwiti �ʃeə�k�pit(ə)l/ noun a company’s issued sharecapital less capital which carries preferentialrights. Equity share capital normally com-prises ordinary shares.equity sweetenerequity sweetener /�ekwiti �swi�t(ə)nə/noun an incentive to encourage people tolend a company money, in the form of a war-rant giving the right to buy shares at a laterdate and at an agreed priceequivalenceequivalence /i |�kwivələns/ noun the con-dition of having the same value or of beingthe sameequivalentequivalent /i|�kwivələnt/ noun a personwho is the equal of someone elseequivalent productionequivalent production /i|�kwivələntprə|�d�kʃən/ noun a way of measuring unitsproduced by a company that combines partsof units produced into whole-unit equiva-lentsequivalent taxable yieldequivalent taxable yield /i|�kwivələnt�t�ksəb(ə)l �ji�ld/ noun the level of taxableinvestment required to provide the samereturn as some other form of investmentequivalent unitequivalent unit /i |�kwivələnt �ju�nit/noun a unit of unfinished production calcu-lated for valuation purposes when workstarted during the period is not finished atthe end of the period, or when work startedduring the previous period is finished duringthe current periodERPERP abbreviation enterprise resource plan-ningerrors and omissions exceptederrors and omissions excepted/�erəz ənd əυ|�miʃ(ə)nz ik|�septid/ phrasewords written on an invoice to show that thecompany has no responsibility for mistakesin the invoice. Abbreviation e. & o.e.ESCESC abbreviation European Social Charterescalateescalate /�eskəleit/ verb to increase stead-ilyescalator clauseescalator clause /�eskəleitə klɔ�z/,escalation clause noun a clause in a con-tract allowing for regular price increasesbecause of increased costs, or regular wageincreases because of the increased cost oflivingescape clauseescape clause /i|�skeip klɔ�z/ noun aclause in a contract which allows one of theparties to avoid carrying out the terms of thecontract under conditionsescrowescrow /�eskrəυ/ noun US an agreementbetween two parties that something shouldbe held by a third party until conditions arefulfilled

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85 Eurolandescrow accountescrow account /�eskrəυ ə|�kaυnt/ nounUS an account where money is held inescrow until a contract is signed or untilgoods are deliveredESOPESOP abbreviation employee share owner-ship planestablishmentestablishment /i|�st�bliʃmənt/ noun 1.a commercial business � He runs an impor-tant printing establishment. 2. the number ofpeople working in a companyestablishment chargesestablishment charges /i|

�st�bliʃmənt �tʃɑ�d iz/ plural noun thecost of people and property in a company’saccountsestateestate /i |�steit/ noun property left by adead personestate accountingestate accounting /i|�steit ə|�kaυntiŋ/noun the preparation of financial accountsby the person administering the estate ofsomeone deceasedestate dutyestate duty /i|�steit �dju�ti/ noun a taxpaid on the property left by a dead person(NOTE: now called inheritance tax)estate taxestate tax /i |�steit t�ks/ noun US a taxpaid on the right to pass property on to heirs,based on the value of the property and paidbefore it is passed to the heirsestimateestimate noun /�estimət/ 1. a calculationof the probable cost, size or time of some-thing � Can you give me an estimate of howmuch time was spent on the job? 2. a calcu-lation by a contractor or seller of a service ofhow much something is likely to cost, givento a client in advance of an order � Youshould ask for an estimate before commit-ting yourselves. � Before we can give thegrant we must have an estimate of the totalcosts involved. � Unfortunately the final billwas quite different from the estimate. � verb/�estimeit/ to calculate the probable cost,size, or time of something � to estimate thatit will cost £1m or to estimate costs at £1m �We estimate current sales at only 60% of lastyear.estimatedestimated /�estimeitid/ adjective calcu-lated approximately � estimated sales �Costs were slightly more than the estimatedfigure.estimated costestimated cost /�estimeitid kɒst/ nounnecessary future expenditure that the pur-chase of something entails, e.g. future run-ning costs or future repairsestimated liabilityestimated liability /�estimeitid �laiə|

�biliti/ noun a liability that exists but has acost that can only be estimated as yet, as canany future tax liabilityestimationestimation /�esti|�meiʃ(ə)n/ noun anapproximate calculation

estimatorestimator /�estimeitə/ noun a personwhose job is to calculate estimates for carry-ing out workEUEU abbreviation European Union � EUministers met today in Brussels. � The US isincreasing its trade with the EU.euroeuro /�jυərəυ/ noun a unit of currencyadopted by several European countries forelectronic payments in 1999 and then aslegal tender from January 1st, 2002 � Manyarticles are priced in euros. � What’s theexchange rate for the euro? (NOTE: The plu-ral is euro or euros. Written € before num-bers: €250: say: ‘two hundred and fiftyeuros’.)

‘…cross-border mergers in the EuropeanUnion have shot up since the introductionof the euro’ [Investors Chronicle]

Euro-Euro- /jυərəυ/ prefix referring to Europe orthe European Unioneuro accounteuro account /�jυərəυ ə|�kaυnt/ noun abank account in eurosEurobondEurobond /�jυərəυbɒnd/ noun a long-term bearer bond issued by an internationalcorporation or government outside its coun-try of origin and sold to purchasers who payin a Eurocurrency, sold on the EurobondmarketEurochequeEurocheque /�jυərəυtʃek/ noun acheque which can be cashed in any Euro-pean bank. The Eurocheque system is basedin Brussels.Eurocommercial paperEurocommercial paper/�jυərəυtkəm��ʃ(ə)l �peipə/ noun a formof short-term borrowing in Eurocurrencies.Abbreviation ECPeurocrediteurocredit /�jυərəυ|�kredit/ noun a largebank loan in a Eurocurrency, usually pro-vided by a group of banks to a large com-mercial undertakingEurocurrencyEurocurrency /�jυərəυk�rənsi/ nounany currency used for trade within Europebut outside its country of origin, the Euro-dollar being the most important � a Euro-currency loan � the Eurocurrency marketeurodepositeurodeposit /�jυərəυdi|�pɒzit/ noun adeposit of Eurodollars in a bank outside theUSEurodollarEurodollar /�jυərəυdɒlə/ noun a US dol-lar deposited in a bank outside the US, usedmainly for trade within Europe � a Eurodol-lar loan � the Eurodollar marketseuroequityeuroequity /�jυərəυ|�ekwiti/ noun a sharein an international company traded on Euro-pean stock markets outside its country oforiginEurolandEuroland /�jυərəυl�nd/ noun same asEurozone

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euronote 86euronoteeuronote /�jυərəυ|�nəυt/ noun a short-term Eurocurrency bearer noteeuro-optioneuro-option /�jυərəυ �ɒpʃ(ə)n/ noun anoption to buy European bonds at a later dateEuropeEurope /�jυərəp/ noun 1. the continent ofEurope, the part of the world to the west ofAsia, from Russia to Ireland � Most of thecountries of Western Europe are members ofthe EU. � Poland is in eastern Europe, andGreece, Spain and Portugal are in southernEurope. 2. the European Union, includingthe UK � Canadian exports to Europe haverisen by 25%.EuropeanEuropean /�jυərə |�pi�ən/ adjective refer-ring to Europe � They do business with sev-eral European countries.European Accounting AssociationEuropean Accounting Association/�jυərəpi�ən ə|�kaυntiŋ ə|�səυsieiʃ(ə)n/noun an organisation for teachers andresearchers in accountancy, founded in 1977and based in Brussels, that aims to be aforum for European research in the subject.Abbreviation EAAEuropean Bank for Reconstruction and DevelopmentEuropean Bank for Reconstructionand Development /�jυərəpi�ən b�ŋk fəri�kən|�str�ktʃ(ə)n ən di|�veləpmənt/ nouna bank, based in London, which channels aidfrom the EU to Eastern European and Cen-tral Asian countries. Abbreviation EBRDEuropean Central BankEuropean Central Bank /�jυərəpi�ən�sentrəl �b�ŋk/ noun the central bank formost of the countries in the European Union,those which have accepted European Mone-tary Union and have the euro as their com-mon currency. Abbreviation ECB

‘…the ECB begins with some $300 billionof foreign exchange reserves, far morethan any other central bank’ [InvestorsChronicle]‘…any change in the European bank’sstatutes must be agreed and ratified by allEU member nations’ [The Times]

European Currency UnitEuropean Currency Unit /�jυərəpi�ən�k�rənsi �ju�nit/ noun the official monetaryunit of the European Union from 1979 to1999. Abbreviation ECUEuropean Economic AreaEuropean Economic Area/�jυərəpi�ən �i�kənɒmik �eəriə/ an areacomprising the countries of the EU and themembers of EFTA, formed by an agreementon trade between the two organisations.Abbreviation EEAEuropean Federation of AccountantsEuropean Federation of Account-ants /�jυərəpi�ən �fedəreiʃ(ə)n əv ə|

�kaυntənts/ noun the representative organi-sation for the accountancy profession inEurope

European Financial Reporting Advisory GroupEuropean Financial Reporting Advi-sory Group /�jυərə |�pi�ən fai |�n�nʃ(ə)l ri|

�pɔ�tiŋ/ noun a group that advises on thetechnical assessment of accounting stand-ards in EuropeEuropean Free Trade AssociationEuropean Free Trade Association/�jυərə |pi�ən fri� �treid ə|�səυsieiʃ(ə)n/noun a group of countries (Iceland, Liech-tenstein, Norway and Switzerland) formedto encourage freedom of trade between itsmembers, and linked with the EU in theEuropean Economic Area. AbbreviationEFTAEuropean Investment BankEuropean Investment Bank/�jυərəpi�ən in|�vestmənt b�ŋk/ noun afinancial institution whose main task is tofacilitate regional development within theEU by financing capital projects, modernis-ing or converting undertakings, and devel-oping new activities. Abbreviation EIBEuropean Monetary SystemEuropean Monetary System/�jυərəpi�ən �m�nit(ə)ri �sistəm/ noun thefirst stage of economic and monetary unionof the EU, which came into force in March1979, giving stable, but adjustable,exchange rates. Abbreviation EMSEuropean Monetary UnionEuropean Monetary Union/�jυərəpi�ən �m�nit(ə)ri �ju�njən/ nounthe process by which some of the memberstates of the EU joined together to adopt theeuro as their common currency on 1st Janu-ary 1999. The euro became legal tender forthese member states from 2002. Abbrevia-tion EMUEuropean Social CharterEuropean Social Charter /�jυərəpi�ən�səυʃ(ə)l �tʃɑ�tə/ noun a charter foremployees, drawn up by the EU in 1989, bywhich employees have the right to a fairwage, and to equal treatment for men andwomen, a safe work environment, training,freedom of association and collective bar-gaining, provision for disabled workers,freedom of movement from country to coun-try, guaranteed standards of living both forthe working population and for retired peo-ple. Abbreviation ESC. Also called SocialCharterEuropean UnionEuropean Union /�jυərəpi�ən �ju�njən/noun a group of European countries linkedtogether by the Treaty of Rome. Abbrevia-tion EUeuroyeneuroyen /�jυərəυ|�jen/ noun a Japaneseyen deposited in a European bank and usedfor trade within EuropeEurozoneEurozone /�jυərəυzəυn/ noun the Euro-pean countries which use the euro as a com-mon currency, seen as a group. Also calledEuroland

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87 exchange controls‘…the European Central Bank left thedoor open yesterday for a cut in Eurozoneinterest rates’ [Financial Times]‘…a sustained recovery in the euro willrequire either a sharp slowdown in USgrowth or a rise in inflation and interestrates in the Eurozone beyond that alreadydiscounted’ [Investors Chronicle]

EVAEVA abbreviation economic value addedevadeevade /i |�veid/ verb to try to avoid some-thing � to evade tax to try illegally to avoidpaying taxevaluateevaluate /i |�v�ljueit/ verb to calculate avalue for something � to evaluate costs �We will evaluate jobs on the basis of theircontribution to the organisation as a whole.� We need to evaluate the experience andqualifications of all the candidates.evaluationevaluation /i |�v�lju|�eiʃ(ə)n/ noun theprocess of calculating the value of an assetevasionevasion /i |�vei (ə)n/ noun the act of avoid-ing somethingEVREVR abbreviation electronic version of thetax returnexex /eks/ prefix out of or from � adverbwithoutexactexact /i�|�z�kt/ adjective strictly correct,not varying in any way from, e.g. not anymore or less than, what is stated � The exacttime is 10.27. � The salesgirl asked me if Ihad the exact sum, since the shop had nochange.exact interestexact interest /i�|�z�kt �intrəst/ nounannual interest calculated on the basis of 365days, as opposed to ordinary interest whichis calculated on 360 daysexactlyexactly /i�|�z�ktli/ adverb not varying inany way from, e.g. not any more or less than,what is stated � The total cost was exactly£6,500.ex-allex-all /�eks �ɔ�l/ adjective referring to ashare price where the share is sold withoutthe dividend, rights issue or any other cur-rent issue. Abbreviation xaex anteex ante /�eks ��nti/ adverb a Latin phrasemeaning ‘before the event’. Compare expost (NOTE: An ex ante budget, or standard,is set before a period of activity com-mences, and is based on the best informa-tion available at that time on expected levelsof cost, performance, etc.)exceedexceed /ik|�si�d/ verb to be more than � adiscount not exceeding 15% � Last yearcosts exceeded 20% of income for the firsttime.exceptional itemsexceptional items /ik|�sepʃən(ə)l�aitəmz/ plural noun 1. items which arisefrom normal trading but which are unusual

because of their size or nature (NOTE: Suchitems are shown separately in a note to thecompany’s accounts but not on the face ofthe P & L account unless they are profits orlosses on the sale or termination of an oper-ation, or costs of a fundamental reorganisa-tion or restructuring which have a materialeffect on the nature and focus of the report-ing entity’s operations, or profits or losseson the disposal of fixed assets.) 2. items ina balance sheet which do not appear thereeach year and which are included in theaccounts before the pre-tax profit is calcu-lated, as opposed to extraordinary itemswhich are calculated after the pre-tax profitexception reportexception report /ik|�sepʃən ri|�pɔ�t/noun a report which flags discrepanciesbetween a company’s actual and expectedperformance, used to identify issues whichthen need investigatingexcessexcess /�ekses/; /ik|�ses/ noun, adjectivean amount which is more than what isallowed � an excess of expenditure over rev-enue � Excess costs have caused us consid-erable problems.excess capacityexcess capacity /�ekses kə|�p�siti/noun spare capacity which is not being usedexcess profitexcess profit /�ekses �prɒfit/ noun alevel of profit that is higher than a levelregarded as normalexcess profits taxexcess profits tax /�ekses �prɒfitst�ks/ noun a tax on excess profitexcess reservesexcess reserves /ik|�ses ri|�z��vz/ pluralnoun US reserves held by a financial institu-tion that are higher than those required bythe regulatory authorities. As such reservesmay indicate that demand for loans is low,banks often sell their excess reserves toother institutions. Compare requiredreservesexchangeexchange /iks|�tʃeind / noun 1. the act ofgiving one thing for another 2. a market forshares, commodities, futures, etc. � verb 1.� to exchange something (for somethingelse) to give one thing in place of somethingelse � He exchanged his motorcycle for acar. � Goods can be exchanged only on pro-duction of the sales slip. 2. to change moneyof one country for money of another � toexchange euros for pounds

‘…under the barter agreements, Nigeriawill export crude oil in exchange fortrucks, food, planes and chemicals’ [WallStreet Journal]

exchangeableexchangeable /iks|�tʃeind əb(ə)l/adjective possible to exchangeexchange controlsexchange controls /iks|�tʃeind kən|

�trəυlz/ plural noun government restrictions

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exchange cross rates 88on changing the local currency into foreigncurrency � The government had to imposeexchange controls to stop the rush to buydollars. � They say the government is goingto lift exchange controls.exchange cross ratesexchange cross rates /iks|�tʃeind �krɒs reits/ plural noun rates of exchangefor two currencies, shown against eachother, but in terms of a third currency, oftenthe US dollarexchange dealerexchange dealer /iks|�tʃeind �di�lə/noun a person who buys and sells foreigncurrencyexchange dealingsexchange dealings /iks|�tʃeind �di�liŋz/ plural noun the buying and sellingof foreign currencyexchange gainexchange gain /iks |�tʃeind �ein/,exchange loss /iks|�tʃeind lɒs/ noun again or loss made from changes in theexchange rate which take place during theperiod of the transactionexchange premiumexchange premium /iks|�tʃeind �pri�miəm/ noun an extra cost above theusual rate for buying a foreign currencyexchangerexchanger /iks|�tʃeind ə/ noun a personwho buys and sells foreign currencyexchange rateexchange rate /iks|�tʃeind reit/ noun 1.a rate at which one currency is exchangedfor another. Also called rate of exchange 2.a figure that expresses how much a unit ofone country’s currency is worth in terms ofthe currency of another countryexchange rate mechanismexchange rate mechanism /iks|

�tʃeind reit �mekəniz(ə)m/ noun aformer method of stabilising exchange rateswithin the European Monetary System,where currencies could only move up ordown within a narrow band (usually 2.25%either way, but for some currencies widenedto 6%) without involving a realignment ofall the currencies in the systemexchange rate parityexchange rate parity /iks|�tʃeind reit�p�riti/ noun the existence of uniformexchange rate levels between a group ofcountries, such that a basket of goods coststhe same in the currencies of these countriesexchange transactionexchange transaction /iks|�tʃeind tr�n|�z�kʃən/ noun a purchase or sale offoreign currencyExchequerExchequer /iks|�tʃekə/ � the Exchequer1. the fund of all money received by the gov-ernment of the UK from taxes and other rev-enues 2. the British government’s accountwith the Bank of England 3. the British gov-ernment department dealing with public rev-enueExchequer stocksExchequer stocks /iks|�tʃekə stɒks/plural noun same as Treasury stocks

excise dutyexcise duty /�eksaiz �dju�ti/ noun a taxon goods such as alcohol and petrol whichare produced in the countryexcise taxexcise tax /�iksaiz t�ks/ noun US a taxlevied for a particular purposeexcludeexclude /ik|�sklu�d/ verb to keep out, ornot to include � The interest charges havebeen excluded from the document. � Dam-age by fire is excluded from the policy.exclusion clauseexclusion clause /ik|�sklu� (ə)n klɔ�z/noun a clause in an insurance policy or war-ranty which says which items or events arenot coveredexclusive agreementexclusive agreement /ik|�sklu�siv ə|

��ri�mənt/ noun an agreement where a per-son is made sole agent for a product in amarketexclusive of taxexclusive of tax /ik|�sklu�siv əv �t�ks/adjective not including tax � All paymentsare exclusive of tax.exclusivityexclusivity /�eksklu�|�siviti/ noun theexclusive right to market a productex couponex coupon /�eks �ku�pɒn/ adverb withoutthe interest coupons or after interest hasbeen paidex dividendex dividend /�eks �dividend/, ex div/�eks �div/ adjective used to describe a sharethat does not have the right to receive thenext dividend � The shares went ex dividendyesterday. Abbreviation xdexecuteexecute /�eksikju�t/ verb to carry out anorder � Failure to execute orders may leadto dismissal. � There were many practicaldifficulties in executing the managing direc-tor’s instructions.executionexecution /�eksi |�kju�ʃ(ə)n/ noun the car-rying out of a commercial order or contractexecutiveexecutive /i�|�zekjυtiv/ adjective puttingdecisions into actionexecutive directorexecutive director /i� |�zekjυtiv dai|

�rektə/ noun 1. a director who works full-time in the company. Compare non-execu-tive director 2. a senior employee of anorganisation who is usually in charge of oneor other of its main functions, e.g. sales orhuman relations, and is usually, but notalways, a member of the board of directorsexecutive powerexecutive power /i�|�zekjυtiv �paυə/noun the right to act as director or to putdecisions into actionexecutive share option schemeexecutive share option scheme /i�|

�zekjυtiv �ʃeər ɒpʃən �ski�m/ noun ascheme under which senior managers aregiven the opportunity to buy shares in theircompany at a preferential fixed price at alater date

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89 expense accountexecutorexecutor /i�|�zekjυtə/ noun a person orfirm that sees that the terms of a will are car-ried out � She was named executor of herbrother’s will.executrixexecutrix /i�|�zekjυtriks/ noun a femaleexecutorexemptexempt /i� |�zempt/ adjective not forced todo something, especially not forced to obeya particular law or rule, or not forced to paysomething � Anyone over 65 is exempt fromcharges � exempt from tax not required topay tax � As a non-profit-making organisa-tion we are exempt from tax.

‘Companies with sales under $500,000 ayear will be exempt from the minimum-wage requirements’ [Nation’s Business]

exempt assetsexempt assets /i�|�zempt ��sets/ pluralnoun assets such as cars which are not sub-ject to capital gains tax when soldexempt giftexempt gift /i�|�zempt ��ift/ noun a giftthat is not subject to US gift taxexempt investment fundexempt investment fund /i�|�zempt in|

�vestmənt f�nd/ noun in the United King-dom, a collective investment, usually a unittrust, for investors who have certain tax priv-ileges, e.g., charities or contributors to pen-sion plansexemptionexemption /i�|�zempʃ(ə)n/ noun the actof exempting something from a contract orfrom a tax � exemption from tax, taxexemption the fact of being free from hav-ing to pay tax � As a non-profit-makingorganisation you can claim tax exemption.exempt suppliesexempt supplies /i�|�zempt sə |�plaiz/plural noun products or services on whichthe supplier does not have to charge VAT,e.g., the purchase of, or rent on, property andfinancial servicesexerciseexercise /�eksəsaiz/ noun 1. the use ofsomething 2. a financial year � during thecurrent exercise � verb to use � The chair-woman exercised her veto to block themotion.exercise dateexercise date /�eksəsaiz deit/ noun thedate when an option can be put into effectexercise priceexercise price /�eksəsaiz prais/ nounthe price at which an option will be put intoeffectex gratiaex gratia /�eks ��reiʃə/ adjective as an actof favour, without obligationexitexit /�eksit/ noun the way in which aninvestor can realise their investment, e.g. byselling the company they have invested inexit chargeexit charge /�eksit tʃɑ�d /, exit fee/�eksit fi�/ noun a charge sometimes madeby a trust when selling units in a unit trust orwhen selling out of an investment such as anISA

exit priceexit price /�eksit prais/ noun the price atwhich an investor sells an investment or atwhich a firm sells up and leaves a marketexit valueexit value /�eksit �v�lju�/ noun incomethat would be received if an asset or a busi-ness were soldex officioex officio /�eks ə|�fiʃiəυ/ adjective, adverbbecause of an office held � The treasurer isex officio a member or an ex officio memberof the finance committee.expandexpand /ik|�sp�nd/ verb to get bigger, ormake something bigger � an expandingeconomy � The company is expanding fast.� We have had to expand our sales force.expansionexpansion /ik |�sp�nʃən/ noun anincrease in size � The expansion of thedomestic market. � The company had diffi-culty in financing its current expansion pro-gramme.

‘…inflation-adjusted GNP moved up at a1.3% annual rate, its worst performancesince the economic expansion began’[Fortune]‘…the businesses we back range fromstart-up ventures to established businessesin need of further capital for expansion’[Times]‘…the group is undergoing a period ofrapid expansion and this has created anexciting opportunity for a qualifiedaccountant’ [Financial Times]

ex parteex parte /�eks �pɑ�ti/ phrase a Latinphrase meaning ‘on behalf of’expected annual activityexpected annual activity /ik|�spektid��njuəl �k|�tiviti/ noun a company’s antic-ipated level of activity or production for agiven yearexpected valueexpected value /ik|�spektid �v�lju�/noun the future value of a course of action,weighted according to the probability thatthe course of action will actually occur. Ifthe possible course of action producesincome of £10,000 and has a 10% chance ofoccurring, its expected value is 10% of£10,000 or £1,000.expenditureexpenditure /ik|�spenditʃə/ noun theamount of money spentexpenseexpense /ik |�spens/ noun money spent �The expense is too much for my bank bal-ance. � The likely profits do not justify theexpense of setting up the project.expense accountexpense account /ik |�spens ə |�kaυnt/noun an allowance of money which a busi-ness pays for an employee to spend on trav-elling and entertaining clients in connectionwith that business � I’ll put this lunch on myexpense account.

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expenses 90expensesexpenses /ik|�spensiz/ plural noun moneypaid to cover the costs incurred by someonewhen doing something � The salary offeredis £10,000 plus expenses. � She has a highsalary and all her travel expenses are paidby the company.expert systemexpert system /�eksp��t �sistəm/ nounsoftware that applies the knowledge, adviceand rules defined by experts in a particularfield to a user’s data to help solve a problemexpirationexpiration /�ekspə |�reiʃ(ə)n/ noun the actof coming to an end � the expiration of aninsurance policy � to repay before the expi-ration of the stated periodexpiration dateexpiration date /�ekspə|�reiʃ(ə)n deit/noun US same as expiry dateexpireexpire /ik|�spaiə/ verb to come to an end �The lease expires in 2010.expiryexpiry /ik|�spaiəri/ noun the act of comingto an end � the expiry of an insurance policyexpiry dateexpiry date /ik|�spaiəri deit/ noun a datewhen something will endexponentexponent /ik|�spəυnənt/ noun a numberor variable placed to the upper right of anumber or mathematical expression thatindicates the number of times the number orexpression is to be multiplied by itself, as in23, which equals 8exponential smoothingexponential smoothing /ekspə |

�nenʃ(ə)l �smu�ðiŋ/ noun a technique forworking out averages while allowing forrecent changes in values by moving forwardthe period under consideration at regularintervalsexportexport noun /�ekspɔ�t/ the practice orbusiness of sending goods to foreign coun-tries to be sold � 50% of the company’sprofits come from the export trade or theexport market. � exports � verb /ik|�spɔ�t/to send goods to foreign countries for sale �50% of our production is exported. � Thecompany imports raw materials and exportsthe finished products.exportationexportation /�ekspɔ�|�teiʃ(ə)n/ noun theact of sending goods to foreign countries forsaleExport Credit Guarantee DepartmentExport Credit Guarantee Depart-ment /�ekspɔ�t �kredit ���rən |�ti� di|

�pɑ�tmənt/ noun a British governmentdepartment which insures sellers of exportssold on credit against the possibility of non-payment by the purchasers. AbbreviationECGDexport departmentexport department /�ekspɔ�t di|

�pɑ�tmənt/ noun the section of a companywhich deals in sales to foreign countries

export dutyexport duty /�ekspɔ�t �dju�ti/ noun a taxpaid on goods sent out of a country for saleexporterexporter /ik|�spɔ�tə/ noun a person, com-pany, or country that sells goods in foreigncountries � a major furniture exporter �Canada is an important exporter of oil or animportant oil exporter.export houseexport house /�ekspɔ�t haυs/ noun acompany which specialises in the export ofgoods manufactured by other companiesexport licenceexport licence /�ekspɔ�t �lais(ə)ns/noun a government permit allowing some-thing to be exported � The government hasrefused an export licence for computerparts.export managerexport manager /�ekspɔ�t �m�nid ə/noun the person in charge of an exportdepartment in a company � The export man-ager planned to set up a sales force in South-ern Europe. � Sales managers from allexport markets report to our export man-ager.exportsexports /�ekspɔ�ts/ plural noun goods sentto a foreign country to be sold � Exports toAfrica have increased by 25%. � export(NOTE: Usually used in the plural, but thesingular form is used before a noun.)ex postex post /�eks �pəυst/ adverb a Latinphrase meaning ‘after the event’. Compareex ante (NOTE: An ex post budget, or stand-ard, is set after the end of a period of activ-ity, when it can represent the optimumachievable level of performance in the con-ditions which were experienced. Thus thebudget can be flexed, and standards canreflect factors such as unanticipatedchanges in technology and in price levels.)exposureexposure /ik|�spəυ ə/ noun 1. publicitygiven to an organisation or product � Ourcompany has achieved more exposure sincewe decided to advertise nationally. 2. theamount of risk which a lender or investorruns � He is trying to limit his exposure inthe property market.

‘…it attributed the poor result to thebank’s high exposure to residential mort-gages, which showed a significant slow-down in the past few months’ [SouthChina Morning Post]

exposure draftexposure draft /ik|�spəυ ə drɑ�ft/ nouna document produced by a body before anew authoritative pronouncement is pub-lished. It invites accountants and other inter-ested parties to comment on matters raisedby the draft. Abbreviation EDexpresslyexpressly /ik|�spresli/ adverb clearly inwords � The contract expressly forbidssales to the United States.

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91 extraordinary itemex-rightsex-rights /�eks �raits/ adjective referringto a share price where the share is sold with-out a recent rights issue. Abbreviation xrextendextend /ik|�stend/ verb 1. to offer some-thing � to extend credit to a customer 2. tomake something longer � Her contract ofemployment was extended for two years. �We have extended the deadline for makingthe appointment by two weeks.extended creditextended credit /ik|�stendid �kredit/noun 1. credit allowing the borrower a verylong time to pay � We sell to Australia onextended credit. 2. US an extra long creditused by commercial banks borrowing fromthe Federal ReserveExtensible Business Reporting LanguageExtensible Business ReportingLanguage /ik|�stensib(ə)l �biznis ri|

�pɔ�tiŋ �l�ŋ�wid / noun full form ofXBRLextensionextension /ik|�stenʃən/ noun an addi-tional period of time allowed for something,e.g. the repayment of a debtextensiveextensive /ik|�stensiv/ adjective verylarge or covering a wide area � an extensivenetwork of sales outlets � an extensiverecruitment driveexternalexternal /ik|�st��n(ə)l/ adjective 1. outsidea country. Opposite internal 2. outside acompanyexternal accountexternal account /ik|�st��n(ə)l ə|�kaυnt/noun an account in a British bank belongingto someone who is living in another countryexternal auditexternal audit /ik|�st��n(ə)l �ɔ�dit/ noun1. an audit carried out by an independentauditor who is not employed by the com-pany 2. an evaluation of the effectiveness ofa company’s public relations carried out byan outside agency

external auditingexternal auditing /ik|�st��n(ə)l �ɔ�ditiŋ/noun an action of auditing a set of accountsby an external auditorexternal auditorexternal auditor /ik|�st��n(ə)l �ɔ�ditə/noun an independent person who audits thecompany’s accountsexternal debtexternal debt /ik|�st��n(ə)l �det/ nounmoney which a company has borrowed fromoutside sources such as a bank, as opposedto money raised from shareholders. Alsocalled external fundsexternal failure costsexternal failure costs /ik |�st��n(ə)l�feiljə �kɒsts/ plural noun costs incurred asa result of products proving faulty, e.g. thecost of replacements and lost salesexternal funds

external funds /ik|�st��n(ə)l �f�ndz/ plu-ral noun same as external debtexternal growthexternal growth /ik|�st��n(ə)l ��rəυθ/noun the growth of a firm by buying othercompanies, rather than by expanding exist-ing sales or products. Opposite internalgrowthexternal liabilities

external liabilities /ik|�st��n(ə)l �laiə|

�bilitiz/ plural noun money owed to lendersand other creditors outside a companyexternal trade

external trade /ik|�st��n(ə)l �treid/ nountrade with foreign countries. Opposite inter-nal tradeextract

extract /�ekstr�kt/ noun a printed docu-ment which is part of a larger document �He sent me an extract of the accounts.extraordinary item

extraordinary item /ik|�strɔ�d(ə)n(ə)ri�aitəm/ noun a large item of income orexpenditure entered into accounts that isunusual in nature and also occurs very infre-quently

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Fface value

face value /�feis �v�lju�/ noun the valuewritten on a coin, banknote or share certifi-cate

‘…travellers cheques cost 1% of their facevalue – some banks charge more for smallamounts’ [Sunday Times]


facility /fə|�siliti/ noun the total amount ofcredit which a lender will allow a borrowerfacility fee

facility fee /fə|�siliti fi�/ noun a chargemade to a borrower by a bank for arrangingcredit facilitiesfacility-sustaining activities

facility-sustaining activities /fə|�silitisə|�steiniŋ �k|�tivitiz/ plural noun activi-ties undertaken to support the organisationas a whole, which cannot be logically linkedto individual units of output. Accounting isa facility-sustaining activity. � hierarchy ofactivitiesfactor

factor /�f�ktə/ noun 1. something which isimportant, or which is taken into accountwhen making a decision � The drop in salesis an important factor in the company’slower profits. � Motivation was an impor-tant factor in drawing up the new payscheme. 2. a number used in multiplicationto produce another number � by a factor often ten times 3. a person or company whichis responsible for collecting debts for com-panies, by buying debts at a discount on theirface value 4. a person who sells for a busi-ness or another person and earns a commis-sion � verb to buy debts from a company ata discount

‘…factors ‘buy’ invoices from a company,which then gets an immediate cashadvance representing most of their value.The balance is paid when the debt is met.The client company is charged a fee aswell as interest on the cash advanced’[Times]


factorial /f�k|�tɔ�riəl/ noun the product ofall the numbers below a number � example:4 factorial = 1x2x3x4 = 24 (NOTE: 4 facto-rial is written 4!)

factoringfactoring /�f�ktəriŋ/ noun the business ofbuying debts from a firm at a discount andthen enforcing the payment of the debtfactoring chargesfactoring charges /�f�ktəriŋ �tʃɑ�d iz/plural noun the cost of selling debts to a fac-tor for a commissionfactors of productionfactors of production /�f�ktəz əv prə|

�d�kʃən/ plural noun land, labour and capi-tal, i.e. the three things needed to produce aproductfactory gate pricefactory gate price /�f�kt(ə)ri ��eitprais/ noun the actual cost of manufacturinggoods before any mark-up is added to giveprofit (NOTE: The factory gate price includesdirect costs such as labour, raw materialsand energy, and indirect costs such as inter-est on loans, plant maintenance or rent.)factory overheadfactory overhead /�f�kt(ə)ri �əυvəhed/noun same as production overheadFAEFAE abbreviation Final Admitting Examfailfail /feil/ verb to be unsuccessful � The pro-totype failed its first test.failurefailure /�feiljə/ noun an act of breakingdown or stopping � the failure of the negoti-ationsfailure costsfailure costs /�feiljə kɒsts/ plural nouncosts that include external failure costs aswell as associated costs, e.g. the cost of run-ning a complaints departmentfairfair /feə/ adjective reasonable, with equaltreatmentfair dealingfair dealing /�feə �di�liŋ/ noun the legalbuying and selling of sharesfair market valuefair market value /�feə �mɑ�kit �v�lju�/noun same as fair valuefair pricefair price /�feə �prais/ noun a good pricefor both buyer and sellerfair tradefair trade /�feə �treid/ noun an interna-tional business system where countriesagree not to charge import duties on someitems imported from their trading partnersfair valuefair value /�feə �v�lju�/ noun 1. a pricepaid by a buyer who knows the value of whathe or she is buying, to a seller who alsoknows the value of what is being sold, i.e.,

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93 Federal Reserveneither is cheating the other 2. a method ofvaluing the assets and liabilities of a busi-ness based on the amount for which theycould be sold to independent parties at thetime of valuationfair wear and tearfair wear and tear /�feə weər ən �teə/noun acceptable damage caused by normaluse � The insurance policy covers mostdamage but not fair wear and tear to themachine.fallfall /fɔ�l/ noun a sudden reduction or loss ofvalue � a fall in the exchange rate � a fall inthe price of gold � a fall on the StockExchange � Profits showed a 10% fall. �verb 1. to be reduced suddenly to a lowerprice or value � Shares fell on the markettoday. � Gold shares fell 10% or fell 45cents on the Stock Exchange. � The price ofgold fell for the second day running. � Thepound fell against the euro. 2. to happen orto take place � The public holiday falls on aTuesday.

‘…market analysts described the falls inthe second half of last week as a technicalcorrection to the market’ [AustralianFinancial Review]‘…for the first time since mortgage ratesbegan falling in March a financial institu-tion has raised charges on homeownerloans’ [Globe and Mail (Toronto)]‘…interest rates were still falling as late asJune, and underlying inflation remainsbelow the government’s target of 2.5 percent’ [Financial Times]

fall behind phrasal verb to be late in doingsomething � They fell behind with theirmortgage repayments.fallingfalling /�fɔ�liŋ/ adjective becoming smalleror dropping in price

‘…falling profitability means falling shareprices’ [Investors Chronicle]

falsefalse /fɔ�ls/ adjective not true or not correct� to make a false claim for a product � tomake a false entry in the balance sheetfalse accountingfalse accounting /�fɔ�ls ə|�kaυntiŋ/noun the criminal offence of changing,destroying or hiding accounting records fora dishonest purposefalse marketfalse market /�fɔ�ls �mɑ�kit/ noun a mar-ket in shares caused by persons or compa-nies conspiring to buy or sell and so influ-ence the share price to their advantagefalsificationfalsification /�fɔ�lsifi |�keiʃ(ə)n/ noun theact of making false entries in accountsfalsifyfalsify /�fɔ�lsifai/ verb to change some-thing to make it wrong � They were accusedof falsifying the accounts.

family companyfamily company /�f�m(ə)li �k�mp(ə)ni/noun a company in which most of the sharesare owned by members of a familyf. & f.f. & f. abbreviation fixtures and fittingsFASBFASB abbreviation Financial AccountingStandards Boardfavourable trade balancefavourable trade balance/�feiv(ə)rəb(ə)l �treid �b�ləns/ noun a sit-uation where a country exports more than itimports � The country has had an adversebalance of trade for the second month run-ning.favourable variancefavourable variance /�feiv(ə)rəb(ə)l�veəriəns/ noun variance which shows thatthe actual result is better than expectedfaxfax /f�ks/ noun a system for sending theexact copy of a document via telephone lines� Can you confirm the booking by fax? �verb to send a message by fax � The detailsof the offer were faxed to the brokers thismorning. � I’ve faxed the documents to ourNew York office.FCAFCA abbreviation Fellow of the Institute ofChartered Accountants in England andWalesFCCAFCCA abbreviation Fellow of the Associa-tion of Chartered Certified AccountantsFCRFCR abbreviation full cost recoveryFDFD abbreviation financial directorfeasibility studyfeasibility study /�fi�zə|�biliti �st�di/noun the careful investigation of a project tosee whether it is worth undertaking � Wewill carry out a feasibility study to decidewhether it is worth setting up an agency inNorth America.federalfederal /�fed(ə)rəl/ adjective 1. referringto a system of government where a group ofstates are linked together in a federation 2.referring to the central government of theUnited States � Most federal offices are inWashington.

‘…federal examiners will determinewhich of the privately-insured savings andloans qualify for federal insurance’ [WallStreet Journal]‘…since 1978 America has freed many ofits industries from federal rules that setprices and controlled the entry of newcompanies’ [Economist]

Federal FundsFederal Funds /�fed(ə)rəl �f�ndz/ pluralnoun deposits by commercial banks with theFederal Reserve Banks, which can be usedfor short-term loans to other banksFederal ReserveFederal Reserve /�fed(ə)rəl ri |�z��v/,Federal Reserve System /�fed(ə)rəl ri|

�z��v �sistəm/ noun the system of federalgovernment control of the US banks, wherethe Federal Reserve Board regulates money

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Federal Reserve Bank 94supply, prints money, fixes the discount rateand issues government bondsFederal Reserve BankFederal Reserve Bank /�fed(ə)rəl ri|

�z��v �b�ŋk/ noun any one of the twelvefederally-owned regional banks in the US,which are directed by the Federal ReserveBoard. Abbreviation FRBFederal Reserve BoardFederal Reserve Board /�fed(ə)rəl ri|

�z��v bɔ�d/ noun a government organisationwhich runs the central banks in the US.Abbreviation FRB

‘…pressure on the Federal Reserve Boardto ease monetary policy mounted yester-day with the release of a set of pessimisticeconomic statistics’ [Financial Times]

federationfederation /�fedə|�reiʃ(ə)n/ noun a groupof societies, companies or organisationswhich have a central organisation which rep-resents them and looks after their commoninterests � a federation of trades unions �the employers’ federationFédération des Experts-Comptables EuropéenFédération des Experts-Compta-bles Européen noun same as EuropeanFederation of AccountantsFed FundsFed Funds /�fed f�ndz/ plural noun USsame as Federal Funds (informal)fed funds ratefed funds rate /�fed f�ndz �reit/ nounthe rate charged by banks for lending moneydeposited with the Federal Reserve to otherbanksfeefee /fi�/ noun money paid for work carriedout by a professional person such as anaccountant, a doctor or a lawyer � Wecharge a small fee for our services. � Theconsultant’s fee was much higher than weexpected.fee workfee work /�fi� w��k/ noun any work on aproject carried out by independent workersor contractors, rather than by the organisa-tion’s employeesfellowfellow /�feləυ/ noun a title given to seniormembers of a professional association. Jun-ior members are usually called ‘associates’.fiat moneyfiat money /�fi��t �m�ni/ noun coins ornotes which are not worth much as paper ormetal, but are said by the government tohave a value and are recognised as legal ten-derfictitious assetsfictitious assets /fik|�tiʃəs ��sets/ plu-ral noun assets which do not really exist, butare entered as assets to balance the accountsfiddlefiddle /�fid(ə)l/ (informal) noun an act ofcheating � It’s all a fiddle. � verb to cheat �He tried to fiddle his tax returns. � Thesalesman was caught fiddling his expenseaccount.fiduciaryfiduciary /fi |�dju�ʃjəri/ noun, adjective (aperson) in a position of trust � Directors

have fiduciary duty to act in the best inter-ests of the company.fiduciary depositsfiduciary deposits /fi|�dju�ʃəri di|

�pɒzitz/ plural noun bank deposits whichare managed for the depositor by the bankFIFOFIFO /�faifəυ/ abbreviation first in first outfifty-fiftyfifty-fifty /�fifti �fifti/ adjective, adverbhalffigurefigure /�fi�ə/ noun 1. a number, or a costwritten in numbers � The figure in theaccounts for heating is very high. 2. � hisincome runs into six figures or he has asix-figure income his income is more than£100,000figuresfigures /�fi�əz/ plural noun 1. writtennumbers 2. the results for a company � thefigures for last year or last year’s figuresfilefile /fail/ noun 1. documents kept for refer-ence 2. a section of data on a computer, e.g.payroll, address list, customer accounts �How can we protect our computer files? �verb 1. to make an official request 2. to reg-ister something officially � to file an appli-cation for a patent � to file a return to thetax officefile copyfile copy /�fail �kɒpi/ noun a copy of adocument which is kept for reference in anofficefiling datefiling date /�failiŋ deit/ noun the date bywhich income tax returned must be filedwith the Inland Revenuefinal accountsfinal accounts /�fain(ə)l ə|�kaυnts/ pluralnoun the accounts produced at the end of anaccounting period, including the balancesheet and profit and loss accountFinal Admitting ExamFinal Admitting Exam /�fain(ə)l əd|

�mitiŋ i�|�z�m/ noun a final examinationset by the ICAEW to admit student account-ants as chartered accountants. AbbreviationFAEfinal closing datefinal closing date /�fain(ə)l �kləυziŋdeit/ noun the last date for acceptance of atakeover bid, when the bidder has toannounce how many shareholders haveaccepted his or her offerfinal demandfinal demand /�fain(ə)l di |�mɑ�nd/ nouna last reminder that payment of a debt is due,after which a supplier normally sues for pay-mentfinal dischargefinal discharge /�fain(ə)l �distʃɑ�d /noun a final payment the completes therepayment of a debtfinal dividendfinal dividend /�fain(ə)l �dividend/ nouna dividend paid at the end of a year’s trading,which has to be approved by the sharehold-ers at an AGM

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95 financial futuresfinalisefinalise /�fainəlaiz/, finalize verb to agreefinal details � We hope to finalise the agree-ment tomorrow. � After six weeks of negoti-ations the loan was finalised yesterday.final settlementfinal settlement /�fain(ə)l �set(ə)lmənt/noun the last payment which settles a debtfinancefinance /�fain�ns/ noun 1. money used bya company, provided by the shareholders orby loans � Where will they get the necessaryfinance for the project? (NOTE: The US termis financing) 2. money (used by a club,local authority, etc.) � She is the secretary ofthe local authority finance committee. �verb to provide money to pay for something� They plan to finance the operation withshort-term loans.

‘…an official said that the company beganto experience a sharp increase in demandfor longer-term mortgages at a time whenthe flow of money used to finance theseloans diminished’ [Globe and Mail]

Finance ActFinance Act /�fain�ns �kt/ noun anannual Act of Parliament which gives thegovernment the power to obtain money fromtaxes as proposed in the BudgetFinance and Tax TribunalsFinance and Tax Tribunals /�fain�nsən �t�ks �traibju�n(ə)lz/ plural noun a col-lective name for four tribunals established in2006 to hear appeals against decisions ofHM Customs and Excise and the InlandRevenue and to adjudicate on matters relat-ing to certain decisions of the FinancialServices Authority and the Pensions Regu-latorFinance BillFinance Bill /�fain�ns bil/ noun 1. a billthat lists the proposals in a Chancellor’sbudget and that is debated before beingvoted into law as the Finance Act 2. US ashort-term bill of exchange which providescredit for a corporation so that it can con-tinue tradingfinance controllerfinance controller /�fain�ns kən|

�trəυlə/ noun an accountant whose maintask is to manage the company’s monetaryresourcesfinance leasefinance lease /�fain�ns li�s/ noun a leasewhich requires the lessee company to showthe asset acquired under the lease in its bal-ance sheet and to depreciate it in the usualwayfinance leasingfinance leasing /�fain�ns �li�siŋ/ nounleasing a property under a finance leasefinance marketfinance market /�fain�ns �mɑ�kit/ nouna place where large sums of money can belent or borrowedfinancesfinances /�fain�nsiz/ plural noun moneyor cash which is available � the bad state ofthe company’s finances

financialfinancial /fai|�n�nʃəl/ adjective relating tomoneyFinancial AccountantFinancial Accountant /fai |�n�nʃ(ə)l ə|

�kaυntənt/ noun a qualified accountant, amember of the Institute of FinancialAccountants, who advises on accountingmatters or who works as the financial direc-tor of a companyfinancial accountingfinancial accounting /fai |�n�nʃ(ə)l ə|

�kaυntiŋ/, financial accountancy /fai|

�n�nʃ(ə)l ə|�kaυntənsi/ noun 1. the form ofaccounting in which financial reports areproduced to provide investors or other exter-nal parties with information on a company’sfinancial status. Compare managementaccounting 2. the process of classifyingand recording a company’s transactions andpresenting them in the form of profit andloss accounts, balance sheets and cash flowstatements for a given accounting periodFinancial Accounting Standards BoardFinancial Accounting StandardsBoard /fai |�n�nʃ(ə)l ə|�kaυntiŋ�st�ndədz �bɔ�d/ noun the body which reg-ulates accounting standards in the USA.Abbreviation FASBfinancial adviserfinancial adviser /fai|�n�nʃəl əd|�vaizə/noun a person or company that gives finan-cial advice to clients for a feefinancial aidfinancial aid /fai |�n�nʃəl �eid/ nounmonetary assistance given to an individual,organisation or nation. International finan-cial aid, that is from one country to another,is often used to fund educational, health-related or other humanitarian activities.financial analysis softwarefinancial analysis software /fai|

�n�nʃəl ə|�n�ləsis �sɒftweə/ noun soft-ware that can produce information on trendsand calculate ratios using information froman online databasefinancial assistancefinancial assistance /fai|�n�nʃəl ə|

�sistəns/ noun help in the form of moneyfinancial calendarfinancial calendar /fai|�n�nʃəl�k�lində/ noun a list of significant eventsand dates in a company’s financial reportingyearfinancial correspondentfinancial correspondent /fai|�n�nʃəl�kɒris|�pɒndənt/ noun a journalist whowrites articles on money matters for a news-paperfinancial directorfinancial director /fai|�n�nʃəl dai|

�rektə/ noun the member of a board ofdirectors who is responsible for a company’sfinancial operations. Abbreviation FDfinancial engineeringfinancial engineering /fai|�n�nʃəl�end i|�niəriŋ/ noun the act of convertingone type of financial instrument into anotherfinancial futuresfinancial futures /fai|�n�nʃəl �fju�tʃəz/,financial futures contract /fai|�n�nʃəl

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financial futures market 96�fju�tʃəz �kɒntr�kt/ noun a contract forthe purchase of gilt-edged securities fordelivery at a date in the future. Also calledfinancialsfinancial futures marketfinancial futures market /fai |�n�nʃəl�fju�tʃəz �mɑ�kit/ noun the market in gilt-edged securities for delivery at a date in thefuturefinancial information systemfinancial information system /fai|

�n�nʃəl �infə|�meiʃ(ə)n �sistəm/ noun acomputer-based system that analyses andgathers financial information for use in run-ning a businessfinancial institutionfinancial institution /fai|�n�nʃəl �insti|

�tju�ʃ(ə)n/ noun a bank, investment trust orinsurance company whose work involveslending or investing large sums of moneyfinancial instrumentfinancial instrument /fai |�n�nʃəl�instrυmənt/ noun 1. a document showingthat money has been lent or borrowed,invested or passed from one account toanother, e.g. a bill of exchange, share certif-icate, certificate of deposit or IOU 2. anyform of investment in the stock market or inother financial markets, e.g. shares, govern-ment stocks, certificates of deposit or bills ofexchangefinancial intermediaryfinancial intermediary /fai |�n�nʃəl�intə|�mi�diəri/ noun an institution whichtakes deposits or loans from individuals andlends money to clientsfinancial leveragefinancial leverage /fai |�n�nʃəl�levərid / noun � gearingfinanciallyfinancially /fi |�n�nʃəli/ adverb regardingmoney � a company which is financiallysound a company which is profitable andhas strong assetsfinancial managementfinancial management /fai |�n�nʃəl�m�nid mənt/ noun the management ofthe acquisition and use of long- and short-term capital by a businessfinancial positionfinancial position /fai |�n�nʃəl pə|

�ziʃ(ə)n/ noun the state of a person’s orcompany’s bank balance in terms of assetsand debtsfinancial projectionfinancial projection /fai |�n�nʃəl prə|

�d ekʃən/ noun business planning that dealswith budgets and estimates of future financ-ing needsfinancial reportfinancial report /fai |�n�nʃəl ri |�pɔ�t/noun a document which gives the financialposition of a company or of a club, etc.Financial Reporting CouncilFinancial Reporting Council /fai|

�n�nʃ(ə)l ri |�pɔ�tiŋ �kaυns(ə)l/ noun theUK’s independent regulator for corporatereporting and governanceFinancial Reporting Review PanelFinancial Reporting Review Panel/fai |�n�nʃ(ə)l ri |�pɔ�tiŋ ri |�vju� �p�n(ə)l/

noun a UK body that receives and investi-gates complaints about the annual accountsof companies in which it is claimed that theaccounting requirements of the CompaniesAct have not been fulfilled. AbbreviationFRRPFinancial Reporting StandardsFinancial Reporting Standards /fai|

�n�nʃ(ə)l ri |�pɔ�tiŋ �st�ndədz/ plural nouna series of accounting standards issued bythe Accounting Standards Board outliningcommon accounting practice. AbbreviationFRSsfinancial resourcesfinancial resources /fai|�n�nʃəl ri|

�zɔ�siz/ plural noun the supply of money forsomething � a company with strong finan-cial resourcesfinancial reviewfinancial review /fai|�n�nʃəl ri |�vju�/noun an examination of an organisation’sfinancesfinancial riskfinancial risk /fai |�n�nʃəl �risk/ noun thepossibility of losing money � The companyis taking a considerable financial risk inmanufacturing 25 million units withoutdoing any market research. � There isalways some financial risk in selling oncredit.financialsfinancials /fai|�n�nʃəlz/ plural noun sameas financial futuresfinancial servicesfinancial services /fai |�n�nʃəl�s��visiz/ plural noun services such asbanking and insurance the main business ofwhich is the management and transfer ofmoneyFinancial Services ActFinancial Services Act /fai |�n�nʃəl�s��visiz �kt/ noun an Act of the BritishParliament which regulates the offering offinancial services to the general public andto private investorsFinancial Services AuthorityFinancial Services Authority /fai|

�n�nʃ(ə)l �s��visiz ɔ� |�θɒrəti/ noun anindependent non-governmental bodyformed in 1997 as a result of reforms in theregulation of financial services in the UnitedKingdom. The Securities and InvestmentsBoard (SIB) became responsible for thesupervision of banking and investment serv-ices and changed its name to become theFinancial Services Authority. The FSA’sfour statutory objectives were specified bythe Financial Services and Markets Act2000: maintaining market confidence;increasing public knowledge of the financesystem; ensuring appropriate protection forconsumers; and reducing financial crime.Abbreviation FSAfinancial statementfinancial statement /fai |�n�nʃəl�steitmənt/ noun a document which showsthe financial situation of a company � The

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97 fiscal yearaccounts department has prepared a finan-cial statement for the shareholders.financial statement analysisfinancial statement analysis /fai|

�n�nʃəl �steitmənt ə|�n�ləsis/ noun any ofvarious methods used for evaluating thepast, current and projected performance of acompanyfinancial supermarketfinancial supermarket /fai|�n�nʃəl�su�pəmɑ�kit/ noun a company whichoffers a range of financial services, e.g. abank offering loans, mortgages, pensionsand insurance as well as the usual personalbanking servicesFinancial TimesFinancial Times /fai|�n�nʃ(ə)l �taimz/noun an important British financial dailynewspaper (printed on pink paper). Abbrevi-ation FTfinancial yearfinancial year /fai |�n�nʃəl �jiə/ noun thetwelve-month period for which a companyproduces accounts. A financial year is notnecessarily the same as a calendar year.financierfinancier /fai|�n�nsiə/ noun a person wholends large amounts of money to companiesor who buys shares in companies as aninvestmentfinancingfinancing /�fain�nsiŋ/ noun the act ofproviding money for a project � The financ-ing of the project was done by two interna-tional banks.finder’s feefinder’s fee /�faindəz fi�/ noun a fee paidto a person who finds a client for another,e.g., someone who introduces a client to astockbroking firmfinefine /fain/ noun money paid because ofsomething wrong which has been done �She was asked to pay a $25,000 fine. � Wehad to pay a £50 parking fine.fine-tuningfine-tuning /�fain �tju�niŋ/ noun the actof making of small adjustments in areassuch as interest rates, tax bands or themoney supply, to improve a nation’s econ-omyfinished goodsfinished goods /�finiʃt ��υdz/ pluralnoun manufactured goods which are readyto be soldfire insurancefire insurance /�faiər in|�ʃυərəns/ nouninsurance against damage by firefirmfirm /f��m/ noun a company, business orpartnership � a manufacturing firm � animportant publishing firm � She is a partnerin a law firm. � adjective 1. unchangeable �to make a firm offer for something � to placea firm order for two aircraft 2. not droppingin price and possibly going to rise � Sterlingwas firmer on the foreign exchange markets.� Shares remained firm. � verb to remain ata price and seem likely to rise � The sharesfirmed at £1.50.

‘…some profit-taking was noted, butunderlying sentiment remained firm’[Financial Times]

firm up phrasal verb to agree on the finaldetails of something � We expect to firm upthe deal at the next trade fair.firmnessfirmness /�f��mnəs/ noun the fact ofbeing steady at a particular price, or likely torise � the firmness of the dollar on foreignexchanges

‘Toronto failed to mirror New York’sfirmness as a drop in gold shares on a fall-ing bullion price left the market closing ona mixed note’ [Financial Times]

firm pricefirm price /�f��m �prais/ noun a pricewhich will not change � They are quoting afirm price of $1.23 a unit.firm salefirm sale /�f��m �seil/ noun a sale whichdoes not allow the purchaser to return thegoodsfirst in first outfirst in first out /�f��st in �f��st �aυt/phrase an accounting policy in which it isassumed that stocks in hand were purchasedlast, and that stocks sold during the periodwere purchased first. Abbreviation FIFO.Compare last in first outfirst optionfirst option /�f��st �opʃən/ noun allowingsomeone to be the first to have the possibil-ity of deciding somethingfirst quarterfirst quarter /�f��st �kwɔ�tə/ noun theperiod of three months from January to theend of March � The first quarter’s rent ispayable in advance.first year allowancefirst year allowance /�f��st jiər ə|

�laυəns/ noun an allowance which can beclaimed on capital expenditure by a businessor self-employed person during the year inwhich the purchase was made. After the firstyear, the written-down allowance (WDA)applies. Abbreviation FYAfiscalfiscal /�fiskəl/ adjective referring to tax orto government revenuesfiscal dragfiscal drag /�fiskəl �dr��/ noun 1. theeffect of inflation on a government’s tax rev-enues. As inflation increases so do pricesand wages, and tax revenues rise proportion-ately. Even if inflation is low, increasedearnings will give the government increasedrevenues anyway. 2. the negative effect ofhigher personal taxation on an individual’swork performancefiscal measuresfiscal measures /�fiskəl �me əz/ pluralnoun tax changes made by a government toimprove the working of the economyfiscal yearfiscal year /�fiskəl �jiə/ noun a twelve-month period on which taxes are calculated.In the UK this is April 6th to April 5th.

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fittings 98‘…last fiscal year the chain reported a116% jump in earnings’ [Barron’s]

fittingsfittings /�fitiŋz/ plural noun items whichare sold with a property but are not perma-nently fixed, e.g. carpets or shelves. � fix-turesfixed assetsfixed assets /�fikst ��sets/ plural nounproperty or machinery which a companyowns and uses, but which the company doesnot buy or sell as part of its regular trade,including the company’s investments inshares of other companiesfixed asset turnoverfixed asset turnover /�fikst ��set�t��nəυvə/ noun a measure of how efficienta company’s property and equipment is ingenerating revenuefixed asset unitfixed asset unit /�fikst ��set �ju�nit/noun a single item of the fixed assets of acompany, e.g. a specific piece of equipmentfixed budgetfixed budget /�fikst �b�d it/ noun abudget which refers to a specific level ofbusiness, i.e., a sales turnover which pro-duces a specific level of profitfixed capitalfixed capital /�fikst �k�pit(ə)l/ nouncapital in the form of buildings and machin-eryfixed chargefixed charge /�fikst �tʃɑ�d / noun acharge over a particular asset or propertyfixed costsfixed costs /�fikst �kɒsts/ plural nounbusiness costs which do not change with thequantity of the product madefixed deductionfixed deduction /�fikst di|�d�kʃən/ nouna deduction agreed by the Inland Revenueand a group of employees, such as a tradeunion, which covers general expenditure onclothes or tools used in the course ofemploymentfixed depositfixed deposit /�fikst di |�pɒzit/ noun adeposit which pays a stated interest over aset periodfixed exchange ratefixed exchange rate /�fikst iks|�tʃeind �reit/ noun a rate of exchange of one cur-rency against another which cannot fluctu-ate, and can only be changed by devaluationor revaluationfixed expensesfixed expenses /�fikst ik |�spensiz/ plu-ral noun expenses which do not vary withdifferent levels of production, e.g. rent, staffsalaries and insurancefixed incomefixed income /�fikst �ink�m/ nounincome which does not change from year toyear, as from an annuityfixed-interestfixed-interest /�fikst �intrəst/ adjectivehaving an interest rate which does not varyfixed-interest investmentsfixed-interest investments /�fikst�intrəst in |�vestmənts/ plural noun invest-

ments producing a level of interest whichdoes not changefixed-interest securitiesfixed-interest securities /�fikst�intrəst si |�kjυəritiz/ plural noun securitiessuch as government bonds which produce alevel of interest which does not changefixed-pricefixed-price /�fikst �prais/ adjective hav-ing a price which cannot be changedfixed-price agreementfixed-price agreement /�fikst �prais ə|

��ri�mənt/ noun an agreement where acompany provides a service or a product at aprice which stays the same for the wholeperiod of the agreementfixed ratefixed rate /�fikst �reit/ noun a rate, e.g. anexchange rate, which does not changefixed rate loanfixed rate loan /�fikst reit �ləυn/ noun aloan on which the rate of interest stays thesame for the duration of the loanfixed scale of chargesfixed scale of charges /�fikst skeil əv�tʃɑ�d iz/ noun a set of charges that do notvary according to individual circumstancesbut are applied consistently in all cases of aparticular kindfixed yieldfixed yield /�fikst �ji�ld/ noun a percent-age return which does not changefixturesfixtures /�fikstʃəz/ plural noun items in aproperty which are permanently attached toit, e.g. sinks and lavatoriesfixtures and fittingsfixtures and fittings /�fikstʃəz ən�fitiŋz/ plural noun objects in a propertywhich are sold with the property, both thosewhich cannot be removed and those whichcan. Abbreviation f. & f.flash reportflash report /�fl�ʃ ri|�pɔ�t/ noun aninterim financial report produced before thefull accounts have been drawn up, and usedto identify or resolve potential problemsflatflat /fl�t/ adjective 1. used to describe mar-ket prices which do not fall or rise, becauseof low demand � The market was flat today.2. not changing in response to different con-ditions � a flat rate

‘…the government revised its earlierreports for July and August. Originallyreported as flat in July and declining by0.2% in August, industrial production isnow seen to have risen by 0.2% and 0.1%respectively in those months’ [SundayTimes]

flat rateflat rate /�fl�t �reit/ noun a charge whichalways stays the same � a flat-rate increaseof 10% � We pay a flat rate for electricityeach quarter.flat taxflat tax /�fl�t �t�ks/ noun a tax levied atone fixed rate whatever an individual’sincome

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99 forecastflat yieldflat yield /�fl�t �ji�ld/ noun an interest rateas a percentage of the price paid for fixed-interest stockflexflex /fleks/ verb to adjust figures in order toreflect changes in circumstances since theoriginal figures were produced � flexing abudgetflexibility

flexibility /�fleksi|�biliti/ noun the abilityto be easily changed � There is no flexibilityin the company’s pricing policy.

‘…they calculate interest on their ‘flexi-ble’ mortgage on an annual basis ratherthan daily. Charging annual interest makesa nonsense of the whole idea of flexibilitywhich is supposed to help you pay off yourmortgage more quickly’ [Financial Times]


flexible /�fleksib(ə)l/ adjective possible toalter or change � We try to be flexible wherethe advertising budget is concerned. � Thecompany has adopted a flexible pricing pol-icy.flexible budgetflexible budget /�fleksib(ə)l �b�d it/noun a budget which changes in response tochanges in sales turnover or outputflight of capitalflight of capital /�flait əv �k�pit(ə)l/noun a rapid movement of capital out of onecountry because of lack of confidence in thatcountry’s economic futureflight to quality

flight to quality /�flait tə �kwɒliti/ nouna tendency of investors to buy safe blue-chipsecurities when the economic outlook isuncertainfloat

float /fləυt/ noun 1. cash taken from a cen-tral supply and used for running expenses �The sales reps have a float of £100 each. 2.the process of starting a new company byselling shares in it on the Stock Exchange �The float of the new company was a com-plete failure. 3. the process of allowing acurrency to settle at its own exchange rate,without any government intervention 4. theperiod between the presentation of a chequeas payment and the actual payment to thepayee, or the financial advantage providedby this period to the drawer of a cheque �verb to let a currency settle at its ownexchange rate on the international marketsand not be fixed � The government has letsterling float. � The government hasdecided to float the pound.floatingfloating /�fləυtiŋ/ adjective not fixed �floating exchange rates � the floating pound

‘…in a world of floating exchange ratesthe dollar is strong because of capitalinflows rather than weak because of thenation’s trade deficit’ [Duns BusinessMonth]

floating capitalfloating capital /�fləυtiŋ �k�pit(ə)l/noun the portion of capital invested in cur-rent assets, as distinct from that invested infixed assets or capital assetsfloating chargefloating charge /�fləυtiŋ tʃɑ�d / noun acharge linked to any of the company’s assetsin a category, but not to any specific itemfloating ratefloating rate /�fləυtiŋ reit/ noun 1. sameas variable rate 2. an exchange rate for acurrency, which can vary according to mar-ket demand, and is not fixed by the govern-mentfloating-rate notesfloating-rate notes /�fləυtiŋ reit�nəυts/ plural noun Eurocurrency loansarranged by a bank which are not at a fixedrate of interest. Abbreviation FRNsfloorfloor /flɔ�/ noun the bottom level of some-thing, e.g. the lowest exchange rate which agovernment will accept for its currency orthe lower limit imposed on an interest rate �The government will impose a floor onwages to protect the poor.floor pricefloor price /�flɔ� prais/ noun the lowestprice, a price which cannot go any lowerfloor spacefloor space /�flɔ� speis/ noun an area offloor in an office or warehouse � We have3,500 square metres of floor space to let.flopflop /flɒp/ noun a failure, or somethingwhich has not been successful � The newmodel was a flop.flow chartflow chart /�fləυ tʃɑ�t/, flow diagram/�fləυ �daiə�r�m/ noun a chart whichshows the arrangement of work processes ina seriesfluctuatefluctuate /�fl�ktʃueit/ verb to move upand down � Prices fluctuated between £1.10and £1.25. � The pound fluctuated all dayon the foreign exchange markets.fluctuationfluctuation /�fl�ktʃu |�eiʃ(ə)n/ noun an upand down movement � the fluctuations ofthe yen � the fluctuations of the exchangerateFOBFOB, f.o.b. abbreviation free on boardfoliofolio /�fəυliəυ/ noun a page with a number,especially two facing pages in an accountbook which have the same number � verb toput a number on a pageforced saleforced sale /�fɔ�st �seil/ noun a salewhich takes place because a court orders itor because it is the only way to avoid a finan-cial crisisforce majeureforce majeure /�fɔ�s m� |� ��/ nounsomething which happens which is out ofthe control of the parties who have signed acontract, e.g. a strike, war, or stormforecastforecast /�fɔ�kɑ�st/ noun a description orcalculation of what will probably happen in

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forecast dividend 100the future � The chairman did not believethe sales director’s forecast of higher turno-ver.forecast dividendforecast dividend /�fɔ�kɑ�st �dividend/noun a dividend which a company expectsto pay at the end of the current year. Alsocalled prospective dividendforecasterforecaster /�fɔ�kɑ�stə/ noun a personwho says what he or she thinks will happenin the futureforecastingforecasting /�fɔ�kɑ�stiŋ/ noun the proc-ess of calculating what will probably happenin the future � Manpower planning willdepend on forecasting the future levels ofproduction.forecloseforeclose /fɔ� |�kləυz/ verb to sell a prop-erty because the owner cannot repay moneywhich he or she has borrowed, using theproperty as security � to foreclose on amortgaged propertyforeclosureforeclosure /fɔ�|�kləυ ə/ noun an act offoreclosingforeign banksforeign banks /�fɒrin �b�ŋks/ pluralnoun banks from other countries which havebranches in a countryforeign branchforeign branch /�fɒrin �brɑ�ntʃ/ noun abranch of a company in another country. Theaccounts of foreign branches may causeproblems because of varying exchangerates.foreign companyforeign company /�fɒrin �k�mp(ə)ni/noun a company that is registered in a for-eign countryforeign currencyforeign currency /�fɒrin �k�rənsi/ nounmoney of another countryforeign currency accountforeign currency account /�fɒrin�k�rənsi ə|�kaυnt/ noun a bank account inthe currency of another country, e.g. a dollaraccount in a UK bankforeign currency reservesforeign currency reserves /�fɒrin�k�rənsi ri|�z��vz/ plural noun foreignmoney held by a government to support itsown currency and pay its debts. Also calledforeign exchange reserves, internationalreserves

‘…the treasury says it needs the cash torebuild its foreign reserves which havefallen from $19 billion when the govern-ment took office to $7 billion in August’[Economist]

foreign earningsforeign earnings /�fɒrin ���niŋz/ pluralnoun earnings received from employment ina foreign countryforeign entityforeign entity /�fɒrin �entiti/ noun a per-son or incorporated company based in a for-eign countryforeign exchangeforeign exchange /�fɒrin iks|�tʃeind /noun 1. the business of exchanging the

money of one country for that of another 2.foreign currencies

‘…the dollar recovered a little lost groundon the foreign exchanges yesterday’[Financial Times]

foreign exchange brokerforeign exchange broker /�fɒrin iks |

�tʃeind �brəυkə/, foreign exchangedealer /�fɒrin iks|�tʃeind �di�lə/ noun aperson who deals on the foreign exchangemarketforeign exchange dealingforeign exchange dealing /�fɒrin iks|

�tʃeind �di�liŋ/ noun the business of buy-ing and selling foreign currenciesforeign exchange marketforeign exchange market /�fɒrin iks|

�tʃeind �mɑ�kit/ noun 1. a market wherepeople buy and sell foreign currencies � Shetrades on the foreign exchange market. 2.dealings in foreign currencies � Foreignexchange markets were very active after thedollar devalued.foreign exchange reservesforeign exchange reserves /�fɒrin iks|

�tʃeind ri|�z��vz/ plural noun same as for-eign currency reservesforeign exchange transferforeign exchange transfer /�fɒrin iks|

�tʃeind �tr�nsf��/ noun the sending ofmoney from one country to anotherforeign incomeforeign income /�fɒrin �ink�m/ nounincome derived from sources in a foreigncountryforeign investmentsforeign investments /�fɒrin in |

�vestmənts/ plural noun money invested inother countriesforeign money orderforeign money order /�fɒrin �m�ni�ɔ�də/ noun a money order in a foreign cur-rency which is payable to someone living ina foreign countryforeign tax creditforeign tax credit /�fɒrin �t�ks �kredit/noun a tax advantage that applies in the caseof taxes paid to or in another countryforeign tradeforeign trade /�fɒrin �treid/ noun a tradewith other countriesforensicforensic /fə |�rensik/ adjective referring tothe courts or to the law in generalforensic accountingforensic accounting /fə|�rensik ə|

�kaυntiŋ/ noun the scrutinisation of anentity’s past financial activities in order todiscover whether illegal practices have beenused at any timeforensic partnerforensic partner /fə|�rensik �pɑ�tnə/noun a partner in an accountancy firm whodeals with litigationforeseeable lossforeseeable loss /fɔ�|�si�əb(ə)l �lɒs/noun a loss which is expected to occur dur-ing a long-term contractforfaitingforfaiting /�fɔ�fitiŋ/ noun the action ofproviding finance for exporters, where anagent or forfaiter accepts a bill of exchange

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101 fractionfrom an overseas customer; he or she buysthe bill at a discount, and collects the pay-ments from the customer in due courseforfeitforfeit /�fɔ�fit/ verb to have somethingtaken away as a punishment � to forfeitshares to be forced to give back shares ifmoney called up is not paid on timeforfeit clauseforfeit clause /�fɔ�fit klɔ�z/ noun aclause in a contract which says that goods ora deposit will be taken away if the contractis not obeyedforfeitureforfeiture /�fɔ�fitʃə/ noun the act of for-feiting a propertyformform /fɔ�m/ noun 1. � form of wordswords correctly laid out for a legal document� receipt in due form a correctly writtenreceipt 2. an official printed paper withblank spaces which have to be filled in withinformation � a pad of order forms � Youhave to fill in form A20. � Each passengerwas given a customs declaration form. �The reps carry pads of order forms.formalformal /�fɔ�m(ə)l/ adjective clearly andlegally written � to make a formal applica-tion � to send a formal order � Is this a for-mal job offer? � The factory is prepared forthe formal inspection by the governmentinspector.formal documentsformal documents /�fɔ�m(ə)l�dɒkjυmənts/ plural noun documents giv-ing full details of a takeover bidformalityformality /fɔ�|�m�liti/ noun somethingwhich has to be done to obey the lawform letterform letter /�fɔ�m �letə/ noun a letterwhich can be sent without any change toseveral correspondents, e.g. a letter chasingpaymentforwardforward /�fɔ�wəd/ adjective in advance orto be paid at a later dateforward accountingforward accounting /�fɔ�wəd ə|

�kaυntiŋ/ noun the practice of usingaccounting procedures to forecast a busi-ness’s future performanceforwardationforwardation /�fɔ�wəd|�eiʃ(ə)n/ noun asituation in which the cash price is lowerthan the forward price (NOTE: The oppositeis backwardation.)forward contractforward contract /�fɔ�wəd �kɒntr�kt/noun a one-off agreement to buy currency,shares or commodities for delivery at a laterdate at a specific priceforward coverforward cover /�fɔ�wəd �k�və/ noun anarrangement to cover the risks on a forwardcontractforward deliveryforward delivery /�fɔ�wəd di|�liv(ə)ri/noun a delivery at some date in the futurewhich has been agreed between the buyerand seller

forward exchange rateforward exchange rate /�fɔ�wəd iks|

�tʃeind reit/ noun a rate for purchase offoreign currency at a fixed price for deliveryat a later date � What are the forward ratesfor the pound? Also called forward rateforward financial statementforward financial statement /�fɔ�wədfai|�n�nʃ(ə)l �steitmənt/ noun an estimateof a company’s future financial positionforwarding agentforwarding agent /�fɔ�wədiŋ �eid ənt/noun a person or company which arrangesshipping and customs documentsforward integrationforward integration /�fɔ�wəd �intə|

��reiʃ(ə)n/ noun a process of expansion inwhich a company becomes its own distribu-tor or takes over a company in the same lineof business as itself � Forward integrationwill give the company greater control overits selling. � Forward integration hasbrought the company closer to its consumersand has made it aware of their buying hab-its. Compare backward integrationforward marginforward margin /�fɔ�wəd �mɑ�d in/noun the difference between the currentprice and the forward priceforward marketforward market /�fɔ�wəd �mɑ�kit/ nouna market for purchasing foreign currency, oilor commodities for delivery at a later dateforward priceforward price /�fɔ�wəd prais/ noun aprice of goods which are to be delivered inthe futureforward rateforward rate /�fɔ�wəd reit/ noun same asforward exchange rateforward salesforward sales /�fɔ�wəd seilz/ plural nounsales of shares, commodities or foreignexchange for delivery at a later dateforwards spreadingforwards spreading /�fɔ�wədz�sprediŋ/ noun the act of spreading lumpsum income over several years in the futureforward tradingforward trading /�fɔ�wəd �treidiŋ/ nounthe activity of buying or selling commodi-ties for delivery at a later datefounderfounder /�faυndə/ noun a person whostarts a company401 plan401(k) plan /�fɔ� əυ w�n �kei pl�n/ nounUS a personal pension plan arranged by anemployer for a member of staff, invested inbonds, mutual funds or stock (the employeecontributes a proportion of salary, on whichtax is deferred; the employer can also makecontributions)fourth quarterfourth quarter /�fɔ�θ �kwɔ�tə/ noun aperiod of three months from 1st October tothe end of the yearfractionfraction /�fr�kʃən/ noun a very smallamount � Only a fraction of the new shareissue was subscribed.

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fractional 102fractionalfractional /�fr�kʃənəl/ adjective verysmallfractional certificatefractional certificate /�fr�kʃənəl sə|

�tifikət/ noun a certificate for part of a sharefrancfranc /fr�ŋk/ noun 1. a former unit of cur-rency in France and Belgium � Frenchfrancs or Belgian francs 2. a unit of currencyin Switzerland and several other currencies� It costs twenty-five Swiss francs.franchisefranchise /�fr�ntʃaiz/ noun a licence totrade using a brand name and paying a roy-alty for it � He’s bought a printing franchiseor a pizza franchise. � verb to sell licencesfor people to trade using a brand name andpaying a royalty � His sandwich bar was sosuccessful that he decided to franchise it.

‘…many new types of franchised busi-nesses will join the ranks of the giantchains of fast-food restaurants, hotels andmotels and rental car agencies’ [Franchis-ing Opportunities]

franchiseefranchisee /�fr�ntʃai |�zi�/ noun a personwho runs a franchisefranchiserfranchiser /�fr�ntʃaizə/ noun a personwho licenses a franchisefranchisingfranchising /�fr�ntʃaiziŋ/ noun the actof selling a licence to trade as a franchise �She runs her sandwich chain as a franchis-ing operation.francofranco /�fr�ŋkəυ/ adverb freefrankedfranked /fr�ŋkd/ adjective on which taxhas already been paidfraudfraud /frɔ�d/ noun the act of makingmoney by making people believe somethingwhich is not true � He got possession of theproperty by fraud. � She was accused offrauds relating to foreign currency.fraudulentfraudulent /�frɔ�djυlənt/ adjective nothonest, or aiming to cheat people � a fraud-ulent transactionfraudulentlyfraudulently /�frɔ�djυləntli/ adverb nothonestly � goods imported fraudulentlyfraudulent misrepresentationfraudulent misrepresentation/�frɔ�djυlənt mis|�reprizen |�teiʃ(ə)n/ nounthe act of making a false statement with theintention of tricking a customerfraudulent tradingfraudulent trading /�frɔ�djυlənt�treidiŋ/ noun the process of carrying onthe business of a company, knowing that thecompany is insolventFRBFRB abbreviation 1. Federal Reserve Bank2. Federal Reserve Boardfreefree /fri�/ adjective, adverb 1. not costingany money � I have been given a free ticketto the exhibition. � The price includes freedelivery. � All goods in the store are deliv-ered free. � A catalogue will be sent free on

request. 2. with no restrictions � free of taxwith no tax having to be paid � Interest ispaid free of tax. � free of duty with no dutyto be paid � to import wine free of duty �verb to make something available or easy �The government’s decision has freed mil-lions of pounds for investment.

‘American business as a whole is increas-ingly free from heavy dependence on man-ufacturing’ [Sunday Times]

free cash flowfree cash flow /�fri� �k�ʃ �fləυ/ noun thelevel of cash flow after the deduction ofinterest payments, tax payments, dividendsand ongoing capital expenditurefree competitionfree competition /�fri� �kɒmpə|�tiʃ(ə)n/noun the fact of being free to compete with-out government interferencefree currencyfree currency /�fri� �k�rənsi/ noun a cur-rency which is allowed by the government tobe bought and sold without restrictionfree enterprisefree enterprise /�fri� �entəpraiz/ noun asystem of business free from governmentinterferencefreeholderfreeholder /�fri�həυldə/ noun a personwho owns a freehold propertyfreehold propertyfreehold property /�fri�həυld �prɒpəti/noun property which the owner holds forever and on which no rent is paidfree issuefree issue /�fri� �iʃu�/ noun same asbonus issuefree marketfree market /�fri� �mɑ�kit/ noun a marketin which there is no government control ofsupply and demand, and the rights of indi-viduals and organisations to physical andintellectual property are upheldfree market economyfree market economy /�fri �mɑ�kit i|

�kɒnəmi/ noun an economic system wherethe government does not interfere in busi-ness activity in any wayfree on boardfree on board /�fri� ɒn �bɔ�d/ adjective 1.including in the price all the seller’s costsuntil the goods are on the ship for transpor-tation. Abbreviation f.o.b. 2. including inthe price all the seller’s costs until the goodsare delivered to a placefree reservesfree reserves /�fri� ri |�z��vz/ plural nounthe part of a bank’s reserves which are abovethe statutory level and so can be used for var-ious purposes as the bank wishesfree-standing additional voluntary contributionfree-standing additional voluntarycontribution /�fri� �st�ndiŋ ə|�diʃ(ə)nəl�vɒlənt(ə)ri �kɒntri|�bju�ʃ(ə)n/ noun apayment made by an individual into an inde-pendent pension fund to supplement anoccupational pension scheme. The antici-pated benefits from the two schemestogether must be less than the maximum

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103 fullpermitted under the rules laid down by theInland Revenue. Abbreviation FSAVCfree tradefree trade /�fri� �treid/ noun a systemwhere goods can go from one country toanother without any restrictionsfree trade areafree trade area /�fri� �treid �eəriə/ nouna group of countries practising free tradefree traderfree trader /�fri� �treidə/ noun a personwho is in favour of free tradefree trade zonefree trade zone /�fri� �treid �zəυn/ nounan area where there are no customs dutiesfreezefreeze /fri�z/ noun � a freeze on wagesand prices period when wages and pricesare not allowed to be increased � verb tokeep something such as money or costs attheir present level and not allow them to rise� to freeze wages and prices � to freezecredits � to freeze company dividends � Wehave frozen expenditure at last year’s level.(NOTE: freezing – froze – frozen)freightfreight /freit/ noun the cost of transportinggoods by air, sea, or land � At an auction,the buyer pays the freight.freightagefreightage /�freitid / noun the cost oftransporting goodsfreight costsfreight costs /�freit kɒsts/ plural nounmoney paid to transport goodsfreight forwardfreight forward /�freit �fɔ�wəd/ noun adeal where the customer pays for transport-ing the goodsfriendly societyfriendly society /�frendli sə|�saiəti/noun a group of people who pay regular sub-scriptions which are used to help membersof the group when they are ill or in financialdifficultiesfringe benefitfringe benefit /�frind �benifit/ noun anextra item given by a company to employeesin addition to a salary, e.g. company cars orprivate health insurance � The fringe bene-fits make up for the poor pay. � Use of thecompany recreation facilities is one of thefringe benefits of the job.FRNsFRNs abbreviation floating-rate notesfrontfront /fr�nt/ noun � money up front pay-ment in advance � They are asking for£10,000 up front before they will considerthe deal. � He had to put money up frontbefore he could clinch the deal.front-endfront-end /�fr�nt �end/ adjective referringto the start of an investment or insurancefront-end loadedfront-end loaded /�fr�nt end �laυdid/adjective used to describe an insurance orinvestment scheme in which most of themanagement charges are incurred in the firstyear of the investment or insurance, and arenot spread out over the whole period. Com-pare back-end loaded

front-end loadingfront-end loading /�fr�nt end �ləυdiŋ/noun the practice of deducting commissionand administrative costs relating to aninvestment or insurance plan from the earlypayments the customer makesfrozenfrozen /�frəυz(ə)n/ adjective not allowedto be changed or used � Wages have beenfrozen at last year’s rates.frozen accountfrozen account /�frəυz(ə)n ə|�kaυnt/noun a bank account where the money can-not be moved or used because of a courtorderfrozen assetsfrozen assets /�frəυz(ə)n ��sets/ pluralnoun a company’s assets which by law can-not be sold because someone has a claimagainst themfrozen creditsfrozen credits /�frəυz(ə)n �kreditz/ plu-ral noun credits in an account which cannotbe movedFRRPFRRP abbreviation Financial ReportingReview PanelFRSsFRSs abbreviation Financial ReportingStandardsfrustratefrustrate /fr�|�streit/ verb to preventsomething, especially the terms of a con-tract, being fulfilledFSAFSA abbreviation Financial ServicesAuthorityFSAVCFSAVC abbreviation free-standing addi-tional voluntary contributionFTFT abbreviation Financial TimesFTASIFTASI abbreviation FTSE Actuaries ShareIndicesFTSE 100FTSE 100 /�fυtsi w�n �h�ndrəd/ noun anindex based on the prices of one hundredleading companies (this is the main Londonindex)

‘…the benchmark FTSE 100 index endedthe session up 94.3 points’ [Times]

FTSE Actuaries Share IndicesFTSE Actuaries Share Indices /�fυtsi��ktjυəriz �ʃeə �indisiz/ plural noun sev-eral indices based on prices on the LondonStock Exchange, which are calculated byand published in the Financial Times in con-junction with the Actuaries InvestmentResearch Committee. Abbreviation FTASI.� Financial Timesfullfull /fυl/ adjective 1. with as much inside itas possible � The train was full of commut-ers. � Is the container full yet? � We sent alorry full of spare parts to our warehouse. �When the disk is full, don’t forget to make abackup copy. 2. complete, including every-thing

‘…a tax-free lump sum can be taken partlyin lieu of a full pension’ [Investors Chron-icle]

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full cost recovery 104full cost recoveryfull cost recovery /�fυl �kɒst ri |�k�vəri/noun the practice by which organisationssuch as charities seek enough funding tocover all their costs, including overheads.Abbreviation FCRfull coverfull cover /�fυl �k�və/ noun insurancecover against a wide range of risksfull employmentfull employment /�fυl im |�plɔimənt/noun a situation where all the people whocan work have jobsfull pricefull price /�fυl �prais/ noun a price with nodiscount � She bought a full-price ticket.full production costsfull production costs /�fυl prə|�d�kʃən�kɒsts/ plural noun all the costs of manufac-turing a product, including both fixed andvariable costsfull ratefull rate /�fυl �reit/ noun the standardcharge for a service, with no special dis-counts appliedfull repairing leasefull repairing lease /�fυl ri |�peəriŋ �li�s/noun a lease where the tenant has to pay forall repairs to the propertyfull-service bankingfull-service banking /�fυl �s��vis�b�ŋkiŋ/ noun banking that offers a wholerange of services including mortgages,loans, pensions, etc.full-timefull-time /�fυl taim/ adjective, adverbworking all the usual working time, i.e.about eight hours a day, five days a week �She’s in full-time work or She works full-time or She’s in full-time employment. � Heis one of our full-time staff.fully diluted earnings per sharefully diluted earnings per share /�fυlidai|�lu�tid ���niŋz pə �ʃeə/, fully dilutedEPS /�fυli �dailu�tid �i� pi� �es/ plural nounearnings per share calculated over the wholenumber of shares assuming that convertibleshares have been converted to ordinarysharesfully paid-up capitalfully paid-up capital /�fυli peid �p�k�pit(ə)l/ noun all money paid for theissued capital sharesfunctionfunction /�f�ŋkʃən/ noun a mathematicalformula, where a result is dependent uponseveral other numbersfunctional accountingfunctional accounting /�f�ŋkʃən(ə)l ə|

�kaυntiŋ/ noun a form of accounting thatclassifies accountancy items according tothe function they perform in an organisationfunctional budgetfunctional budget /�f�ŋkʃən(ə)l�b�d it/ noun a budget relating to a specificfunction such as marketing or personnelfunctional reporting of expensesfunctional reporting of expenses/�f�ŋkʃən(ə)l ri|�pɔ�tiŋ əv ik|�spensiz/noun the element of functional accountingthat deals with expenses

function costfunction cost /�f�ŋkʃən kɒst/ noun thecategory of item for which costs are incurredfundfund /f�nd/ noun 1. money set aside for aspecial purpose 2. money invested in aninvestment trust as part of a unit trust, orgiven to a financial adviser to invest onbehalf of a client. � funds � verb to providemoney for a purpose � The company doesnot have enough resources to fund its expan-sion programme.

‘…the S&L funded all borrowers’ devel-opment costs, including accrued interest’[Barrons]

fund accountingfund accounting /�f�nd ə|�kaυntiŋ/noun the preparation of financial statementsfor an entity such as a non-profitmakingorganisation, in order to show how moneyhas been spent rather than how much profithas been madefundamental analysisfundamental analysis /�f�ndəment(ə)lə|�n�ləsis/ noun an assessment of how theexternal and internal influences on a com-pany’s activities should affect investmentdecisionsfundamental assumptionsfundamental assumptions/�f�ndəment(ə)l ə|�s�mpʃ(ə)ns/ pluralnoun the basic assumptions on which thepreparation of accounts depends (NOTE:These assumptions are: that the companyis a going concern, that the principles onwhich the accounts are prepared do notchange from year to year, that revenues andcosts are accrued (i.e., they are written intothe accounts when they occur, not whenthey are received or paid).)fundamental issuesfundamental issues /�f�ndəment(ə)l�iʃu�z/ plural noun matters relating to acompany’s profits or assetsfundamental researchfundamental research/�f�ndəment(ə)l ri|�s��tʃ/, fundamentalanalysis /�f�ndəment(ə)l ə|�n�ləsis/ nounan examination of the basic factors whichaffect a marketfundamentalsfundamentals /�f�ndə|�ment(ə)lz/ pluralnoun the basic realities of a stock market orof a company, e.g. its assets, profitabilityand dividendsfundedfunded /�f�ndid/ adjective backed bylong-term loans � long-term funded capitalfunded schemefunded scheme /�f�ndid �ski�m/ noun apension scheme where money is invested insecurities to create a fund from which thepension is later paidfundingfunding /�f�ndiŋ/ noun 1. money forspending � The bank is providing the fund-ing for the new product launch. 2. the act ofchanging a short-term debt into a long-term

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105 FYAloan � The capital expenditure programmerequires long-term funding.fund management

fund management /�f�nd�m�nid mənt/ noun the business of deal-ing with the investment of sums of money onbehalf of clientsfunds

funds /f�ndz/ plural noun 1. money whichis available for spending � The company hasno funds to pay for the research programme.� non-sufficient funds � to convert fundsto your own use to use someone else’smoney for yourself 2. � the Funds govern-ment stocks and securities. � FederalFunds

‘…small innovative companies have beenhampered for lack of funds’ [SundayTimes]‘…the company was set up with fundstotalling NorKr 145m’ [Lloyd’s List]

funds flow

funds flow /�f�ndz fləυ/ noun � budg-eted funds flow statement a plan of antici-pated incoming funds and the use to whichthey will be put � funds flow method ofbudgeting preparing a budget of funds flow,as opposed to a budget of expenditure �funds flow statement a statement whichshows the amount of funds (cash and work-ing capital) which have come into a businessduring the last financial period, the sourcesof these funds, and the use made of the funds(see FRS1, formerly SSAP10)

fungibilityfungibility /�f�nd ə|�biliti/ noun a meas-ure of how easily an asset can be exchangedfor something similarfungiblefungible /�f�nd əb(ə)l/ adjective refer-ring to a security which can be exchangedfor another of the same typefunny moneyfunny money /�f�ni �m�ni/ noun an unu-sual type of financial instrument created bya companyfuture deliveryfuture delivery /�fju�tʃə di|�liv(ə)ri/noun delivery at a later datefuturesfutures /�fju�tʃəz/ plural noun shares, cur-rency or commodities that are bought or soldfor now for delivery at a later date � Goldrose 5% on the commodity futures marketyesterday.

‘…cocoa futures plummeted in Novemberto their lowest levels in seven years’ [Busi-ness in Africa]

futures contractfutures contract /�fju�tʃəz �kɒntr�kt/noun a contract for the purchase of com-modities for delivery at a date in the futurefutures exchangefutures exchange /�fju�tʃəz iks |

�tʃeind / noun a commodity market whichonly deals in futuresfuture valuefuture value /�fju�tʃə �v�lju�/ noun thevalue to which a sum of money will increaseif invested for a certain period of time atsome rate of interest. Abbreviation FVFVFV abbreviation future valueFYAFYA abbreviation first year allowance

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GGAAPGAAP abbreviation Generally AcceptedAccounting Principlesgaingain /�ein/ noun 1. an increase, or the actof becoming larger 2. an increase in profit,price, or value � Oil shares showed gains onthe Stock Exchange. � Property shares puton gains of 10%-15%. 3. money made by acompany which is not from the company’susual trading � verb 1. to get or to obtain �She gained some useful experience workingin a bank. � to gain control of a business tobuy more than 50% of the shares so that youcan direct the business 2. to rise in value �The dollar gained six points on the foreignexchange markets.galloping inflationgalloping inflation /���ləpiŋ in|

�fleiʃ(ə)n/ noun very rapid inflation whichis almost impossible to reducegap analysisgap analysis /���p ə|�n�ləsis/ nounanalysis of a market to try to find a particulararea that is not at present being satisfied �Gap analysis showed that there was a wholearea of the market we were not exploiting.gap financinggap financing /���p �fain�nsiŋ/ nounthe process of arranging extra loans such asa bridging loan to cover a purchase not cov-ered by an existing loangarnisheegarnishee /��ɑ�ni|�ʃi�/ noun a person whoowes money to a creditor and is ordered bya court to pay that money to a creditor of thecreditor, and not to the creditor himselfgarnishee ordergarnishee order /��ɑ�ni |�ʃi� �ɔ�də/ nouna court order, making a garnishee pay moneynot to the debtor, but to a third partyGASGAS abbreviation Government Account-ancy ServiceGDPGDP abbreviation gross domestic productgeargear /�iə/ verb to link something to some-thing elsegearinggearing /��iəriŋ/ noun 1. the ratio of cap-ital borrowed by a company at a fixed rate ofinterest to the company’s total capital. Alsocalled leverage 2. the act of borrowingmoney at fixed interest which is then used toproduce more money than the interest paid

gearing ratiogearing ratio /��iəriŋ �reiʃiəυ/ noun anyratio that compares equity to borrowinggeneral auditgeneral audit /�d en(ə)rəl �ɔ�dit/ nounthe process of examining all the books andaccounts of a companygeneral averagegeneral average /�d en(ə)rəl��v(ə)rid / noun a process by which thecost of lost goods is shared by all parties toan insurance policy, such as in cases wheresome goods have been lost in an attempt tosave the rest of the cargogeneral balance sheetgeneral balance sheet /�d en(ə)rəl�b�ləns �ʃi�t/ noun the standard form ofbalance sheet used by non-commercialorganisations such as charities and govern-ment departmentsGeneral CommissionersGeneral Commissioners /�d en(ə)rəlkə|�miʃ(ə)nəz/ plural noun a body of unpaidindividuals appointed by the Lord Chancel-lor in England, Wales and Northern Ireland,and the Secretary of State for Scotland inScotland, to hear appeals on tax mattersgeneral damagesgeneral damages /�d en(ə)rəl�d�mid iz/ plural noun damages awardedby court to compensate for a loss which can-not be calculated, such as an injurygeneral expensesgeneral expenses /�d en(ə)rəl ik|

�spensiz/ plural noun minor expenses ofvarious kinds incurred in the running of abusinessgeneral fundgeneral fund /�d en(ə)rəl f�nd/ noun aunit trust with investments in a variety ofstocksgeneral insurancegeneral insurance /�d en(ə)rəl in|

�ʃυərəns/ noun insurance relating to variouspotential losses, e.g. theft or damage, butexcluding life insurancegeneral ledgergeneral ledger /�d en(ə)rəl �led ə/ nouna book which records a company’s incomeand expenditure in generalgeneral liengeneral lien /�d en(ə)rəl �li�ən/ noun 1. aright to hold goods or property until a debthas been paid 2. a lien against the personalpossessions of a borrower, but not againsthis or her house or land. � banker’s lien

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107 gold reservesGenerally Accepted Accounting Principles

Generally Accepted AccountingPrinciples /�d en(ə)rəli ək|�septid ə|

�kaυntiŋ �prinsip(ə)lz/ plural noun US asummary of best practice in respect of theform and content of financial statements andauditor’s reports, and of accounting policiesand disclosures adopted for the preparationof financial information. GAAP does nothave any statutory or regulatory authority inthe United Kingdom, unlike in a number ofother countries where the term is in use,such as the United States, Canada. Abbrevi-ation GAAPgenerally accepted auditing standards

generally accepted auditing stand-ards /�d en(ə)rəli ək|�septid �ɔ�ditiŋ�st�ndədz/ plural noun guidelines that aredesigned to inform the work of auditors andset out the auditor’s responsibilitiesgeneral manager

general manager /�d en(ə)rəl�m�nid ə/ noun a manager in charge of theadministration of a companygeneral meeting

general meeting /�d en(ə)rəl �mi�tiŋ/noun a meeting of all the shareholders of acompany or of all the members of a societygeneral partner

general partner /�d en(ə)rəl �pɑ�tnə/noun a partner in a business whose responsi-bility for its debts is not limited and, there-fore, whose personal assets may be at risk ifthe company’s assets are not sufficient todischarge its debtsgeneral partnership

general partnership /�d en(ə)rəl�pɑ�tnəʃip/ noun the relationship of a gen-eral partner to his or her companygeneral undertaking

general undertaking /�d en(ə)rəl��ndə|�teikiŋ/ noun an undertaking signedby the directors of a company applying for aStock Exchange listing, promising to workwithin the regulations of the StockExchangegift aid

gift aid /��ift eid/ noun payment abovesome limit made to a registered charity,meaning that the charity is able to reclaimthe basic rate tax which you have paid on thegiftgift inter vivos

gift inter vivos /��ift intə �vi�vəυs/ nouna gift given to another living person. Abbre-viation GIVgift tax

gift tax /��ift t�ks/ noun a tax on gifts.Only gifts between husband and wife areexempt.gilt-edged

gilt-edged /��ilt ed d/ adjective used todescribe an investment which is very safegilt-edged securities

gilt-edged securities /��ilt ed d si |

�kjυəritiz/ plural noun investments in Brit-ish government stock

giltsgilts /�ilts/ plural noun same as govern-ment bondsgirogiro /�d airəυ/ noun same as bank giroGIVGIV abbreviation gift inter vivosGMGM abbreviation gross marginGNPGNP abbreviation gross national productgoal congruencegoal congruence /��əυl �kɒŋ�ruəns/noun a situation that leads individuals orcompanies to take actions which are in theirown best interestsgo-go fundgo-go fund /��əυ �əυ �f�nd/ noun a fundwhich aims to give very high returnsbecause it is invested in speculative stocksgoing concerngoing concern /��əυiŋ kən|�s��n/ noun acompany that is actively trading and makinga profitgoing concern valuegoing concern value /��əυiŋ kən|�s��n�v�lju�/ noun the value of a company as itcontinues trading as opposed to its break-upvaluegold bulliongold bullion /��əυld �bυliən/ noun bars ofgoldgold cardgold card /��əυld kɑ�d/ noun a credit cardissued to important customers, i.e., thosewith a high income, which gives certainprivileges such as a higher spending limitthan ordinary credit cardsgolden handcuffsgolden handcuffs /��əυld(ə)n�h�ndk�fs/ plural noun a contractualarrangement to make sure that a valuedmember of staff stays in their job, by whichthey are offered special financial advantagesif they stay and heavy penalties if they leavegolden handshakegolden handshake /��əυld(ə)n�h�ndʃeik/ noun a large, usually tax-free,sum of money given to a director who retiresfrom a company before the end of his or herservice contract � The retiring directorreceived a golden handshake of £250,000.golden parachute agreementgolden parachute agreement/��əυld(ə)n �p�rə|�ʃu�t ə |��ri�mənt/ noun acontract that gives a senior manager verygenerous monetary compensation if his orjob is lost as a result of a merger or acquisi-tiongolden sharegolden share /��əυld(ə)n �ʃeə/ noun ashare in a privatised company which isretained by the government and carries spe-cial privileges such as the right to veto for-eign takeover bidsgoldminegoldmine /��əυldmain/ noun a minewhich produces goldgold pointgold point /��əυld pɔint/ noun an amountby which a currency which is linked to goldcan vary in pricegold reservesgold reserves /��əυld ri |�z��vz/ pluralnoun the country’s store of gold kept to payinternational debts

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goods 108goodsgoods /�υdz/ plural noun items which canbe moved and are for sale � goods receivedgoods which have been sent by a seller andreceived by a purchaser during an account-ing period � goods received note an inter-nal note within a company which shows thedate when goods were received, by whomand in what quantities

‘…profit margins are lower in the indus-tries most exposed to foreign competition– machinery, transportation equipmentand electrical goods’ [Sunday Times]‘…the minister wants people buyinggoods ranging from washing machines tohouses to demand facts on energy costs’[Times]

goods and chattelsgoods and chattels /��υdz ən�tʃ�t(ə)lz/ plural noun movable personalpossessionsGoods and Services TaxGoods and Services Tax /��υdz ən�s��visiz t�ks/ noun a Canadian tax on thesale of goods or the provision of services,similar to VAT. Abbreviation GSTgoodwillgoodwill /�υd|�wil/ noun the good reputa-tion of a business, which can be calculatedas part of a company’s asset value, thoughseparate from its tangible asset value � Hepaid £10,000 for the goodwill of the shopand £4,000 for the stock. (NOTE: The good-will can include the trading reputation, thepatents, the trade names used, the value ofa ‘good site’, etc., and is very difficult toestablish accurately.)go privatego private /��əυ �praivət/ verb to becomea private company again, by concentratingall its shares in the hands of one or a fewshareholders and removing its stockexchange listinggo publicgo public /��əυ �p�blik/ phrasal verb tobecome a public company by placing someof its shares for sale on the stock market sothat anyone can buy themgoverngovern /���v(ə)n/ verb to rule a country �The country is governed by a group of mili-tary leaders.governancegovernance /���v(ə)nəns/ noun theprocess of managing a company, especiallywith respect to the soundness or otherwiseof its management

‘…the chairman has committed the cardi-nal sin in corporate governance – he actedagainst the wishes and interests of theshareholders’ [Investors Chronicle]‘…in two significant decisions, the Securi-ties and Exchange Board of India todayallowed trading of shares through theInternet and set a deadline for companiesto conform to norms for good corporategovernance’ [The Hindu]

Government Accountancy ServiceGovernment Accountancy Service/���v(ə)nmənt ə|�kaυntənsi �s��vis/ nounpart of HM Treasury, a service whose remitit is to ensure that best accounting practice isobserved and conducted across the whole ofthe Civil Service. Abbreviation GASgovernmentalgovernmental /���v(ə)n|�ment(ə)l/adjective referring to a governmentgovernment-backedgovernment-backed /���v(ə)nmənt�b�kt/ adjective backed by the governmentgovernment bondsgovernment bonds /���v(ə)nmənt�bɒndz/ plural noun bonds or other securi-ties issued by the government on a regularbasis as a method of borrowing money forgovernment expendituregovernment contractorgovernment contractor/���v(ə)nmənt kən|�tr�ktə/ noun a com-pany which supplies the government withgoods by contractgovernment-controlledgovernment-controlled/���v(ə)nmənt kən|�trəυld/ adjective underthe direct control of the government �Advertisements cannot be placed in the gov-ernment-controlled newspapers.government economic indicatorsgovernment economic indicators/���v(ə)nmənt �i�kənɒmik �indikeitəz/plural noun statistics which show how thecountry’s economy is going to perform inthe short or long termgovernment grantgovernment grant /���v(ə)nmənt��rɑ�nt/ noun a grant of money or assetsgiven by a central government, a local gov-ernment or a government agency � The lab-oratory has a government grant to cover thecost of the development programmegovernment loangovernment loan /���v(ə)nmənt �ləυn/noun money lent by the governmentgovernment-regulatedgovernment-regulated /���v(ə)nmənt�re�jυleitid/ adjective of which the affairsare subject to government regulationgovernment sectorgovernment sector /���v(ə)nmənt�sektə/ noun same as public sectorgovernment securitiesgovernment securities /���v(ə)nməntsi|�kjυəritiz/ plural noun same as govern-ment bondsgovernment-sponsoredgovernment-sponsored/���v(ə)nmənt �spɒnsəd/ adjectiveencouraged by the government and backedby government money � She is working in agovernment-sponsored scheme to help smallbusinesses.government stockgovernment stock /���v(ə)nmənt�stɒk/ noun same as government bondsgovernment supportgovernment support /���v(ə)nməntsə|�pɔ�t/ noun a financial help given by thegovernment � The aircraft industry relies ongovernment support.

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109 gross incomegovernorgovernor /���v(ə)nə/ noun 1. a person incharge of an important institution 2. US oneof the members of the Federal ReserveBoardgracegrace /�reis/ noun a favour shown bygranting a delay � to give a creditor aperiod of grace or two weeks’ gracegraduategraduate /��r�d uət/ noun a person whohas obtained a degreegraduatedgraduated /��r�d ueitid/ adjectivechanging in small regular stagesgraduated income taxgraduated income tax /��r�d ueitid�ink�m t�ks/ noun a tax which rises insteps, with those having the highest incomepaying the highest percentage of taxgraduated pension schemegraduated pension scheme/��r�d ueitid �penʃən ski�m/ noun a pen-sion scheme where the benefit is calculatedas a percentage of the salary of each personin the schemegraduated taxationgraduated taxation /��r�d ueitid t�k|

�seiʃ(ə)n/ noun same as progressive taxa-tiongrandgrand /�r�nd/ noun one thousand poundsor dollars (informal) � They offered him fiftygrand for the information. � She’s earningfifty grand plus car and expenses.grand totalgrand total /��r�nd �təυt(ə)l/ noun thefinal total made by adding several subtotalsgrantgrant /�rɑ�nt/ noun money given by thegovernment to help pay for something � Thelaboratory has a government grant to coverthe cost of the development programme. �The government has allocated grantstowards the costs of the scheme. � verb toagree to give someone something � to grantsomeone a loan or a subsidy � to grantsomeone three weeks’ leave of absence �The local authority granted the company aninterest-free loan to start up the new factory.

‘…the budget grants a tax exemption for$500,000 in capital gains’ [Toronto Star]

grantorgrantor /�rɑ�n|�tɔ�/ noun a person whogrants a property to anothergraphgraph /�rɑ�f/ noun a diagram which showsthe relationship between two sets of quanti-ties or values, each of which is representedon an axis � A graph was used to show sal-ary increases in relation to increases in out-put. � According to the graph, as averagesalaries have risen so has absenteeism.gratisgratis /��r�tis/ adverb free or not costinganything � We got into the exhibition gratis.greenbackgreenback /��ri�nb�k/ noun US a dollarbill (informal)

‘…gold’s drop this year is of the samemagnitude as the greenback’s 8.5% rise’[Business Week]

green cardgreen card /��ri�n �kɑ�d/ noun 1. a spe-cial British insurance certificate to provethat a car is insured for travel abroad 2. anidentity card and work permit for a persongoing to live in the USgreen currencygreen currency /��ri�n �k�rənsi�/ nounformerly, a currency used in the EU for cal-culating agricultural payments. Each coun-try had an exchange rate fixed by the Com-mission, so there were ‘green pounds’,‘green francs’, ‘green marks’, etc.greenmailgreenmail /��ri�nmeil/ noun the practiceof making a profit by buying a large numberof shares in a company, threatening to takethe company over, and then selling theshares back to the company at a higher price

‘…he proposes that there should be a limiton greenmail, perhaps permitting paymentof a 20% premium on a maximum of 8%of the stock’ [Duns Business Month]

Green PaperGreen Paper /��ri�n �peipə/ noun a reportfrom the British government on proposalsfor a new law to be discussed in Parliament.Compare White Papergreen poundgreen pound /��ri�n �paυnd/ noun avalue for the British pound used in calculat-ing agricultural prices and subsidies in theEUgreen reportgreen report /��ri�n ri |�pɔ�t/ noun a partof a company’s annual report dealing withecological mattersgrey marketgrey market /��rei �mɑ�kit/ noun anunofficial market run by dealers, where newissues of shares are bought and sold beforethey officially become available for tradingon the Stock Exchange even before the shareallocations are knowngrossgross /�rəυs/ noun twelve dozen (144) �He ordered four gross of pens. (NOTE: noplural) � adjective total, with no deductions� adverb with no deductions � My salary ispaid gross.

‘…gross wool receipts for the selling sea-son to end June appear likely to top $2 bil-lion’ [Australian Financial Review]

gross domestic productgross domestic product /��rəυs də|

�mestik �prɒd�kt/ noun the annual value ofgoods sold and services paid for inside acountry. Abbreviation GDPgross earningsgross earnings /��rəυs ���niŋz/ pluralnoun total earnings before tax and otherdeductionsgross incomegross income /��rəυs �ink�m/ noun asalary before tax is deducted

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gross interest 110gross interestgross interest /��rəυs �intrəst/ noun theinterest earned on a deposit or securitybefore the deduction of tax. � net interestgross margingross margin /��rəυs �mɑ�d in/ nounthe percentage difference between thereceived price and the unit manufacturingcost or purchase price of goods for resale.Abbreviation GMgross margin pricinggross margin pricing /��rəυs �mɑ�d in�praisiŋ/ noun pricing that takes intoaccount the total production costs of a prod-uctgross margin ratiogross margin ratio /��rəυs �mɑ�d in�reiʃiəυ/ noun same as gross profit margingross national productgross national product /��rəυs�n�ʃ(ə)nəl �prɒd�kt/ noun the annualvalue of goods and services in a countryincluding income from other countries.Abbreviation GNPgross profitgross profit /��rəυs �prɒfit/ noun a profitcalculated as sales income less the cost ofthe goods sold, i.e. without deducting anyother expensesgross profit analysisgross profit analysis /��rəυs �prɒfit ə |

�n�ləsis/ noun analysis of the discrepancybetween actual profit and budgeted profit orprevious year’s profitgross profit margingross profit margin /��rəυs �prɒfit�mɑ�d in/ noun the percentage of eachpound of income from sales that remainsafter goods sold have been paid for by theproducer or retailergross profit methodgross profit method /��rəυs �prɒfit�meθəd/ noun a method of estimating inven-tory at the point of preparing an interimreportgross receiptsgross receipts /��rəυs ri|�si�ts/ pluralnoun the total amount of money receivedbefore expenses are deductedgross salarygross salary /��rəυs �s�ləri/ noun sameas gross incomegross salesgross sales /��rəυs �seilz/ plural nounmoney received from sales before deduc-tions for goods returned, special discounts,etc. � Gross sales are impressive since manybuyers seem to be ordering more than theywill eventually need.gross turnovergross turnover /��rəυs �t��nəυvə/ nounthe total turnover including VAT and dis-countsgross yieldgross yield /��rəυs �ji�ld/ noun a profitfrom investments before tax is deductedground landlordground landlord /��raυnd �l�ndlɔ�d/noun a person or company that owns thefreehold of a property which is then let andsublet � Our ground landlord is an insur-ance company.

ground rentground rent /��raυnd rent/ noun a rentpaid by the main tenant to the ground land-lordgroupgroup /�ru�p/ noun 1. several things orpeople together � A group of managers hassent a memo to the chairman complainingabout noise in the office. � The respondentswere interviewed in groups of three or four,and then singly. 2. several companies linkedtogether in the same organisation � thegroup chairman or the chairman of thegroup � group turnover or turnover for thegroup � the Granada Groupgroup accountsgroup accounts /��ru�p ə|�kaυnts/ pluralnoun accounts for a holding company andits subsidiariesgroup balance sheetgroup balance sheet /��ru�p �b�ləns�ʃi�t/ noun same as consolidated balancesheetgroup depreciationgroup depreciation /��ru�p di |�pri�ʃi |

�eiʃ(ə)n/ noun a way of calculating depreci-ation for multiple assets that are similar innature and have a similar useful lifegroup financial statementgroup financial statement /��ru�p fai|

�n�nʃ(ə)l �steitmənt/ noun same as con-solidated financial statementgroup resultsgroup results /��ru�p ri |�z�lts/ pluralnoun the end-of-year financial statementsand accounts of a group of companiesgrowthgrowth /�rəυθ/ noun the fact of becominglarger or increasing

‘…a general price freeze succeeded inslowing the growth in consumer prices’[Financial Times]‘…growth in demand is still coming fromthe private rather than the public sector’[Lloyd’s List]‘…population growth in the south-west isagain reflected by the level of rental val-ues’ [Lloyd’s List]

growth indexgrowth index /��rəυθ �indeks/ noun anindex showing the growth in a company’srevenues, earnings, dividends or other fig-uresgrowth prospectsgrowth prospects /��rəυθ �prɒspekts/plural noun potential for growth in a sharegrowth rategrowth rate /��rəυθ reit/ noun the speedat which something growsGSTGST abbreviation Goods and Services Tax

‘…because the GST is applied only to feesfor brokerage and appraisal services, thenew tax does not appreciably increase theprice of a resale home’ [Toronto Globe &Mail]

guaranteeguarantee /���rən|�ti�/ noun 1. a legaldocument in which the producer agrees tocompensate the buyer if the product is faultyor becomes faulty before a specific date after

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111 guarantorpurchase � a certificate of guarantee or aguarantee certificate � The guarantee lastsfor two years. � It is sold with a twelve-month guarantee. 2. a promise that someonewill pay another person’s debts � companylimited by guarantee company where eachmember stated in the memorandum of asso-ciation how much money he will contributeto the company if it becomes insolvent (asopposed to a company limited by shares) 3.something given as a security � to leaveshare certificates as a guarantee � verb togive a promise that something will happen

guaranteed bond

guaranteed bond /���rən|�ti�d �bɒnd/noun in the United States, a bond or stock onwhich the principal and interest are guaran-teed by a company that is not the issuingcompanyguaranteed wage

guaranteed wage /���rənti�d �weid /noun a wage which a company promiseswill not fall below a specific figureguarantor

guarantor /���rən|�tɔ�/ noun a personwho promises to pay another person’s debtsif he or she should fail to � She stood guar-antor for her brother.

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Hhalf-yearhalf-year /�hɑ�f �jiə/ noun six months ofan accounting periodhalf-yearlyhalf-yearly /�hɑ�f �jiəli/ adjective happen-ing every six months, or referring to a periodof six months � half-yearly accounts � half-yearly payment � half-yearly statement � ahalf-yearly meeting � adverb every sixmonths � We pay the account half-yearly.handling chargehandling charge /�h�ndliŋ tʃɑ�d /noun money to be paid for packing, invoic-ing and dealing with goods which are beingshippedhard cashhard cash /�hɑ�d �k�ʃ/ noun money innotes and coins, as opposed to cheques orcredit cardshard currencyhard currency /�hɑ�d �k�rənsi/ noun thecurrency of a country which has a strongeconomy, and which can be changed intoother currencies easily � to pay for importsin hard currency � to sell raw materials toearn hard currency Also called scarce cur-rencyhardeninghardening /�hɑ�d(ə)niŋ/ adjective (of amarket) slowly moving upwardshard landinghard landing /�hɑ�d �l�ndiŋ/ noun achange in economic strategy to counteractinflation which has serious results for thepopulation such as high unemployment, ris-ing interest rates, etc.head and shouldershead and shoulders /�hed ən �ʃəυldəz/noun a term used by chartists showing ashare price which rises to a peak, then fallsslightly, then rises to a much higher peak,then falls sharply and rises to a lower peakbefore falling again, looking similar to a per-son’s head and shoulders when shown on agraphheadleaseheadlease /�hedli�s/ noun a lease fromthe freehold owner to a tenantheadline inflation rateheadline inflation rate /�hedlain in |

�fleiʃ(ə)n �reit/ noun a British inflation fig-ure which includes items such as mortgageinterest and local taxes, which are notincluded in the inflation figures for othercountries. Compare underlying inflationrate

head officehead office /�hed �ɒfis/ noun an officebuilding where the board of directors worksand meetsheadquartersheadquarters /hed|�kwɔ�təz/ plural nounthe main office, where the board of directorsmeets and works � The company’s head-quarters are in New York.heads of agreementheads of agreement /�hedz əv ə|

��ri�mənt/ plural noun 1. a draft agreementwith not all the details complete 2. the mostimportant parts of a commercial agreementhealth insurancehealth insurance /�helθ in|�ʃυərəns/noun insurance which pays the cost of treat-ment for illness, especially when travellingabroadhealthyhealthy /�helθi/ adjective � a healthy bal-ance sheet a balance sheet which shows agood profitheavy industryheavy industry /�hevi �indəstri/ noun anindustry which deals in heavy raw materialssuch as coal or makes large products such asships or engineshedgehedge /hed / noun a protection against apossible loss, which involves taking anaction which is the opposite of an actiontaken earlier � verb to protect against therisk of a loss � to hedge your bets to makeinvestments in several areas so as to be pro-tected against loss in one of them � to hedgeagainst inflation to buy investments whichwill rise in value faster than the increase inthe rate of inflation

‘…during the 1970s commercial propertywas regarded by investors as an alternativeto equities, with many of the same infla-tion-hedge qualities’ [Investors Chroni-cle]‘…the move saved it from having to payits creditors an estimated $270 millionowed in connection with hedge contractswhich began working against the companywhen the price of gold rose unexpectedlyduring September’ [Business in Africa]

hedge fundhedge fund /�hed f�nd/ noun a partner-ship open to a small number of rich inves-tors, which invests in equities, currency

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113 historical cost conceptfutures and derivatives and may producehigh returns but carries a very high risk

‘…much of what was described as nearhysteria was the hedge funds trying to liq-uidate bonds to repay bank debts after los-ing multi-million dollar bets on specula-tions that the yen would fall against thedollar’ [Times]‘…hedge funds generally have in commonan ability to sell short (that is, sell stocksyou do not own), and to increase growthprospects – and risk – by borrowing toenhance the fund’s assets’ [MoneyObserver]‘…the stock is a hedge fund – limited bythe Securities and Exchange Commissionto only wealthy individuals and qualifiedinstitutions’ [Smart Money]


hedging /�hed iŋ/ noun the act of buyinginvestments at a fixed price for deliverylater, so as to protect against possible losshereditamenthereditament /�heri |�ditəmənt/ noun aproperty, including land and buildingshidden assethidden asset /�hid(ə)n ��set/ noun anasset which is valued much less in the com-pany’s accounts than its true market valuehidden economyhidden economy /�hid(ə)n i|�kɒnəmi/noun same as black economyhidden reserveshidden reserves /�hid(ə)n ri|�z��vz/ plu-ral noun 1. reserves which are not easy toidentify in the company’s balance sheet.Reserves which are illegally kept hidden arecalled ‘secret reserves’. 2. illegal reserveswhich are not declared in the company’s bal-ance sheethidden tax

hidden tax /�hid(ə)n t�ks/ noun a tax thatis not immediately apparent. For example,while a consumer may be aware of a tax onretail purchases, a tax imposed at the whole-sale level, which consequently increases thecost of items to the retailer, will not beapparent.hierarchy of activities

hierarchy of activities /�haiərɑ�ki əv�k|�tivitiz/ noun a diagrammatic represen-tation of the relative importance of activitiesundertaken in the running of a businesshighhigh /hai/ adjective large, not low � Highoverhead costs increase the unit price. �They are budgeting for a high level ofexpenditure. � High interest rates are crip-pling small businesses. � noun a pointwhere prices or sales are very large � Priceshave dropped by 10% since the high of Jan-uary 2nd.

‘American interest rates remain exception-ally high in relation to likely inflationrates’ [Sunday Times]

‘…in a leveraged buyout the acquirerraises money by selling high-yieldingdebentures to private investors’ [Fortune]

higher-rate taxhigher-rate tax /�haiə reit �t�ks/ nounin the United Kingdom, the highest of thethree bands of income tax. Most countrieshave bands of income tax with differentrates applicable to income within each band.high financehigh finance /�hai �fain�ns/ noun thelending, investing and borrowing of verylarge sums of money organised by financiershigh gearinghigh gearing /�hai ��iəriŋ/ noun a situa-tion where a company has a high level ofborrowing compared to its share pricehigh-incomehigh-income /�hai �ink�m/ adjectiveused for referring to a fund that yields a highrate of return � high-income shares � ahigh-income portfoliohighly-geared companyhighly-geared company /�haili �iəd�k�mp(ə)ni/ noun a company which has ahigh proportion of its funds from fixed-interest borrowingshighly-paidhighly-paid /�haili �peid/ adjective earn-ing a large salaryhigh yieldhigh yield /�hai �ji�ld/ noun a dividendyield which is higher than is usual for thetype of companyhikehike /haik/ noun an increase � verb toincreasehirehire /�haiə/ noun an arrangement wherebycustomers pay money to be able to use a car,boat or piece of equipment owned by some-one else for a time (NOTE: The more usualterm in the US is rent)hire purchasehire purchase /�haiə �p��tʃis/ noun asystem of buying something by paying asum regularly each month � to buy a refrig-erator on hire purchase (NOTE: The US termis installment credit, installment plan orinstallment sale.)hire purchase agreementhire purchase agreement /�haiə�p��tʃis ə|��ri�mənt/ noun a contract to payfor something by instalmentshire-purchase companyhire-purchase company /�haiə�p��tʃis �k�mp(ə)ni/ noun a companywhich provides money for hire purchasehistorical costhistorical cost /hi |�stɒrik(ə)l �kɒst/, his-toric cost /hi |�stɒrik �kɒst/ noun the actualcost of purchasing something which wasbought some time agohistorical cost accountinghistorical cost accounting /hi|

�stɒrik(ə)l �kɒst ə |�kaυntiŋ/ noun the prep-aration of accounts on the basis of historicalcost, with assets valued at their original costof purchase. Compare current costaccountinghistorical cost concepthistorical cost concept /hi |�stɒrik(ə)lkɒst �kɒnsept/, historical cost conven-

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historical cost depreciation 114tion /hi |�stɒrik(ə)l kɒst kən|�venʃən/ nouna basis for the treatment of assets in financialstatements where they are recorded at theirhistorical cost, without adjustment for infla-tion or other price variations (NOTE: Use‘historical cost convention’ not ‘historic costconvention’.)historical cost depreciationhistorical cost depreciation /hi|

�stɒrik(ə)l �kɒst di|�pri�ʃieiʃ(ə)n/ noundepreciation based on the original cost of theassethistorical figureshistorical figures /hi|�stɒrik(ə)l �fi�əz/plural noun figures that were correct at thetime of purchase or payment, as distinctfrom, e.g., a current saleable value or marketvaluehistorical pricinghistorical pricing /hi|�stɒrik(ə)l�praisiŋ/ noun a method of setting prices fora good or service that is based on prices pre-viously set. Sometimes revised prices maytake into account the effects of inflation.historical summaryhistorical summary /hi|�stɒrik(ə)l�s�məri/ noun in the United Kingdom, anoptional synopsis of a company’s resultsover a period of time, often five or ten years,featured in the annual accountshistorical trading rangehistorical trading range /hi|�stɒrik(ə)l�treidiŋ reind / noun the differencebetween the highest and lowest price for ashare or bond over a period of timehivehive /haiv/ verbhive off phrasal verb to split off part of alarge company to form a smaller subsidiary� The new managing director hived off theretail sections of the company.HM Revenue & CustomsHM Revenue & Customs /�eitʃ �em�revənju� ən �k�stəmz/ noun a UK gov-ernment department which deals with taxeson imports and on products such as alcoholproduced in the country. It also deals withVAT and tax credits. Abbreviation HMRCHM TreasuryHM Treasury /�eitʃ �em �tre əri/ nounthe UK government department responsiblefor managing the country’s public revenues.The department is run on a day-to-day basisby the Chancellor of the Exchequer.hoardhoard /hɔ�d/ verb to buy and store goods incase of needhoarderhoarder /�hɔ�də/ noun a person who buysand stores goods in case of needholdhold /həυld/ noun 1. the bottom part of aship or aircraft, in which cargo is carried 2.the action of keeping something � verb 1. toown or to keep something � She holds 10%of the company’s shares. 2. to make some-thing happen � The receiver will hold anauction of the company’s assets. 3. not to

sell � You should hold these shares – theylook likely to rise.

‘…as of last night, the bank’s shareholdersno longer hold any rights to the bank’sshares’ [South China Morning Post]

hold down phrasal verb to keep at a lowlevel � We are cutting margins to hold ourprices down.

‘…real wages have been held down; theyhave risen at an annual rate of only 1% inthe last two years’ [Sunday Times]

hold up phrasal verb 1. to stay at a high lev-el � Share prices have held up well. � Salesheld up during the tourist season. 2. to delaysomething � The shipment has been held upat customs. � Payment will be held up untilthe contract has been signed.holderholder /�həυldə/ noun 1. a person whoowns or keeps something � holders of gov-ernment bonds or bondholders � holder ofstock or of shares in a company � holder ofan insurance policy or policy holder 2. athing which keeps something, which pro-tects somethingholders of recordholders of record /�həυldəz əv �rekɔ�d/plural noun the owners of a company’sshareshold harmless letterhold harmless letter /�həυld �hɑ�mləs�letə/ noun a letter issued by parties to abusiness deal to reporting accountants stat-ing that the accountants will not be heldresponsible for any losses suffered on thedealholdingholding /�həυldiŋ/ noun a group of sharesowned � She has sold all her holdings in theFar East. � The company has holdings inGerman manufacturing companies.holding companyholding company /�həυldiŋ�k�mp(ə)ni/ noun 1. a company whichowns more than 50% of the shares in anothercompany. � subsidiary company 2. a com-pany which exists only or mainly to ownshares in subsidiary companies. � subsidi-aryholding costholding cost /�həυldiŋ kɒst/ noun thecost of keeping items of stock includingwarehousing and handling costs, insurance,losses through deterioration, wastage, theft,etc. and the cost of capital used to acquirethe stock measured in terms of the interestlost on the money which was spent on pur-chasing the stock in the first place or theinterest paid on the loans which were neededto finance the purchase of the stockhome bankinghome banking /�həυm �b�ŋkiŋ/ noun asystem of banking using a personal compu-ter in your own home to carry out various

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115 hypothecationfinancial transactions such as payinginvoices or checking your bank accounthome loanhome loan /�həυm ləυn/ noun a loan by abank or building society to help someonebuy a househome tradehome trade /�həυm �treid/ noun trade inthe country where a company is basedhonorariumhonorarium /�ɒnə|�reəriəm/ noun moneypaid to a professional person such as anaccountant or a lawyer when a specific feehas not been requested (NOTE: The plural ishonoraria.)honoraryhonorary /�ɒnərəri/ adjective not paid asalary for the work done for an organisation� He is honorary president of the transla-tors’ association.honorary secretaryhonorary secretary /�ɒnərəri�sekrət(ə)ri/ noun a person who keeps theminutes and official documents of a com-mittee or club, but is not paid a salaryhonorary treasurerhonorary treasurer /�ɒnərəri �tre ərə/noun a treasurer who does not receive anyfeehonourhonour /�ɒnə/ verb to pay somethingbecause it is owed and is correct � to honoura bill (NOTE: The US spelling is honor.)horizontal integrationhorizontal integration /�hɒrizɒnt(ə)l�inti|��reiʃ(ə)n/ noun the process of joiningsimilar companies or taking over a companyin the same line of business as yourselfhostile bidhostile bid /�hɒstail �bid/ noun same ascontested takeoverhot moneyhot money /�hɒt �m�ni/ noun 1. moneywhich is moved from country to country toget the best returns 2. money that has beenobtained by dishonest means. � moneylaunderinghourhour /aυə/ noun 1. a period of time lastingsixty minutes 2. sixty minutes of work � Sheearns £14 an hour. � We pay £16 an hour.


house /haυs/ noun a company � the larg-est London finance house � a brokeragehouse � a publishing househousehold goods

household goods /�haυshəυld ��υdz/plural noun items which are used in thehomehuman capital accounting

human capital accounting /�hju�mən�k�pit(ə)l ə|�kaυntiŋ/ noun an attempt toplace a financial value on the knowledge andskills possessed by the employees of anorganisation. Also called human assetaccounting, human resource account-inghurdle rate

hurdle rate /�h��d(ə)l reit/ noun a mini-mum rate of return needed by a bank to funda loan, the rate below which a loan is notprofitable for the bankhybrid

hybrid /�haibrid/ noun a combination offinancial instruments, e.g., a bond with war-rants attached, or a range of cash and deriv-ative instruments designed to mirror the per-formance of a financial markethyper-

hyper- /haipə/ prefix very largehyperinflation

hyperinflation /�haipərin|�fleiʃ(ə)n/noun inflation which is at such a high per-centage rate that it is almost impossible toreducehypothecation

hypothecation /hai |�pɒθə|�keiʃ(ə)n/noun 1. an arrangement in which propertysuch as securities is used as collateral for aloan but without transferring legal owner-ship to the lender, as opposed to a mortgage,where the lender holds the title to the prop-erty 2. an action of earmarking moneyderived from specific sources for relatedexpenditure, as when investing taxes fromprivate cars or petrol sales solely on publictransport

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IIAASBIAASB abbreviation International Auditingand Assurance Standards BoardIASIAS abbreviation International AccountingStandardsIASBIASB abbreviation International Account-ing Standards BoardIASCIASC abbreviation International Account-ing Standards CommitteeIBRDIBRD abbreviation International Bank forReconstruction and Development (theWorld Bank)ICAEWICAEW abbreviation Institute of CharteredAccountants in England and WalesICAIICAI abbreviation Institute of CharteredAccountants in IrelandICANZICANZ abbreviation Institute of CharteredAccountants of New ZealandICASICAS abbreviation Institute of CharteredAccountants in ScotlandICSIDICSID abbreviation International Centre forSettlement of Investment DisputesICTAICTA abbreviation Income and CorporationTaxes Actideal capacityideal capacity /ai |�diəl kə|�p�siti/ nounthe greatest volume of output possible,which would be produced only in ideal con-ditions in which optimum capacity wasmaintained constantlyidle capacityidle capacity /�aid(ə)l kə|�p�siti/ noun 1.the existence of unused capacity 2. a situa-tion in which a given market will not absorball of the goods produced in that sectoridle capacity varianceidle capacity variance /�aid(ə)l kə|

�p�siti �veəriəns/ noun a level of capacitythat is lower than that forecast or budgetedforidle capitalidle capital /�aid(ə)l �k�pit(ə)l/ nouncapital which is not being used productivelyidle timeidle time /�aid(ə)l taim/ noun the time forwhich employees are paid although they areunable to work because of factors beyondtheir control � Idle time in January wasattributed to the temporary closing down ofone of the company’s factories. � Workerswere laid off to avoid excessive idle time.

IFAIFA abbreviation 1. independent financialadviser 2. Institute of Financial AccountantsIFACIFAC abbreviation International Federationof AccountantsIFRICIFRIC abbreviation International FinancialReporting Interpretations CommitteeIFRSIFRS abbreviation International FinancialReporting StandardsIHTIHT abbreviation inheritance taxillegalillegal /i |�li��(ə)l/ adjective not legal oragainst the lawillegalityillegality /�ili�|���liti/ noun the fact ofbeing illegalillegallyillegally /i|�li��əli/ adverb against the law �He was accused of illegally launderingmoney.illicitillicit /i |�lisit/ adjective not legal or not per-mitted � the illicit sale of alcoholilliquidilliquid /i |�likwid/ adjective 1. referring toan asset which is not easy to change intocash 2. used to describe a person or businessthat lacks cash or assets such as securitiesthat can readily be converted into cashIMAIMA abbreviation 1. Institute of Manage-ment Accountants 2. Investment Manage-ment AssociationIMFIMF abbreviation International MonetaryFundimmovableimmovable /i |�mu�vəb(ə)l/ adjectiveimpossible to moveimmovable propertyimmovable property /i |�mu�vəb(ə)l�prɒpəti/ noun houses and other buildingson landimpactimpact /�imp�kt/ noun a shock or strongeffect � the impact of new technology on thecotton trade � The new design has made lit-tle impact on the buying public.impact statementimpact statement /�imp�kt�steitmənt/ noun a written statement out-lining the effects of something on an indi-vidual or companyimpairment of capitalimpairment of capital /im |�peəmənt əv�k�pit(ə)l/ noun the extent to which thevalue of a company is less than the par valueof its shares

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117 incentiveimpairment of valueimpairment of value /im|�peəmənt əv�v�lju�/ noun a decline in the value of anasset such that its original cost can never berecoveredimpersonal accountimpersonal account /im |�p��s(ə)n(ə)l ə|

�kaυnt/ noun any account other than a per-sonal account, being classified as either areal account, in which property is recorded,or a nominal account, in which income,expenses and capital are recorded. �account, personal accountimplementimplement /�impli|�ment/ verb to put intoaction � to implement an agreement � toimplement a decisionimplementationimplementation /�implimən|�teiʃ(ə)n/noun the process of putting something intoaction � the implementation of new rulesimportimport /im |�pɔ�t/ verb to bring goods fromabroad into a country for sale � The com-pany imports television sets from Japan. �This car was imported from France.importationimportation /�impɔ� |�teiʃ(ə)n/ noun theact of importing � The importation of armsis forbidden. � The importation of livestockis subject to very strict controls.import banimport ban /�impɔ�t b�n/ noun a govern-ment order forbidding imports of a particu-lar kind or from a particular country � Thegovernment has imposed an import ban onarms.import dutyimport duty /�impɔ�t �dju�ti/ noun a taxon goods imported into a countryimporterimporter /im |�pɔ�tə/ noun a person orcompany that imports goods � a cigarimporter � The company is a big importer offoreign cars.import-exportimport-export /�impɔ�t �ekspɔ�t/ adjec-tive, noun referring to business which dealswith both bringing foreign goods into acountry and sending locally made goodsabroad � Rotterdam is an important centrefor the import-export trade. � She works inimport-export.import levyimport levy /�impɔ�t �levi/ noun a tax onimports, especially in the EU a tax onimports of farm produce from outside theEUimport quotaimport quota /�impɔ�t �kwəυtə/ noun afixed quantity of a particular type of goodswhich the government allows to be imported� The government has imposed a importquota on cars.import restrictionsimport restrictions /�impɔ�t ri |

�strikʃ(ə)nz/ plural noun actions taken by agovernment to reduce the level of imports byimposing quotas, duties, etc.importsimports /�impɔ�ts/ plural noun goodsbrought into a country from abroad for sale

� Imports from Poland have risen to $1m ayear. (NOTE: Usually used in the plural, butthe singular is used before a noun.)import surchargeimport surcharge /�impɔ�t �s��tʃɑ�d /noun the extra duty charged on importedgoods, to try to stop them from beingimported and to encourage local manufac-tureimposeimpose /im |�pəυz/ verb to give orders forsomething regarded as unpleasant orunwanted, such as a tax or a ban � to imposea tax on bicycles � They tried to impose aban on smoking. � The government imposeda special duty on oil.impositionimposition /�impə|�ziʃ(ə)n/ noun the actof imposing somethingimpoundimpound /im |�paυnd/ verb to take some-thing away and keep it until a tax is paid �Customs impounded the whole cargo.impoundingimpounding /im |�paυndiŋ/ noun an act oftaking something and keeping it until a tax ispaidimprest accountimprest account /�imprest ə |�kaυnt/noun a UK term for a record of the transac-tions of a type of petty cash system. Anemployee is given an advance of money, animprest, for incidental expenses and whenmost of it has been spent, he or she presentsreceipts for the expenses to the accountsdepartment and is then reimbursed with cashto the total value of the receipts.imprest systemimprest system /�imprest �sistəm/noun a system of controlling petty cash,where cash is paid out against a writtenreceipt and the receipt is used to get morecash to bring the float to the original levelimproved offerimproved offer /im |�pru�vd �ɒfə/ noun anoffer which is larger or has better terms thanthe previous offerimputation systemimputation system /�impju� |�teiʃ(ə)n�sistəm/ noun a former system of taxationof dividends, where the company paidAdvance Corporation Tax on the dividendsit paid to its shareholders, and the sharehold-ers paid no tax on the dividends received,assuming that they paid tax at the standardrateinactive accountinactive account /in|��ktiv ə|�kaυnt/noun a bank account which is not used overa period of timeinactive marketinactive market /in|��ktiv �mɑ�kit/noun a stock market with few buyers or sell-ersincentiveincentive /in|�sentiv/ noun somethingwhich encourages a customer to buy, oremployees to work better

‘…some further profit-taking was seenyesterday as investors continued to lack

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incentive bonus 118fresh incentives to renew buying activity’[Financial Times]‘…a well-designed plan can help compa-nies retain talented employees and offerenticing performance incentives – all at anaffordable cost’ [Fortune]‘…the right incentives can work whenused strategically’ [Management Today]‘…an additional incentive is that the Japa-nese are prepared to give rewards wherethey are due’ [Management Today]

incentive bonusincentive bonus /in|�sentiv �bəυnəs/,incentive payment /in|�sentiv �peimənt/noun an extra payment offered to employeesto make them work betterincentive schemeincentive scheme /in|�sentiv ski�m/noun a plan to encourage better work bypaying higher commission or bonuses �Incentive schemes are boosting production.incentive stock optionincentive stock option /in|�sentiv�stɒk �ɒpʃən/ noun (in the United States) aplan that gives each qualifying employee theright to purchase a specific number of thecorporation’s shares at a set price during aspecific time period (NOTE: Tax is only pay-able when the shares are sold.)inchoateinchoate /in |�kəυət/ adjective referring toan instrument which is incompleteincidence of taxincidence of tax /�insid(ə)ns əv �t�ks/noun the point at which a tax is ultimatelypaid. For example, although a retailer paysany sales tax to the tax collecting authority,the tax itself is ultimately paid by the cus-tomer.incidental expensesincidental expenses /�insident(ə)l ik|

�spensiz/ plural noun small amounts ofmoney spent at various times in addition tolarger amountsincludeinclude /in |�klu�d/ verb to count somethingalong with other things � The chargeincludes VAT. � The total is £140 not includ-ing insurance and freight. � The accountcovers services up to and including themonth of June.inclusiveinclusive /in|�klu�siv/ adjective countingsomething in with other things � inclusive oftax � not inclusive of VATincomeincome /�ink�m/ noun 1. money which aperson receives as salary or dividends �lower income bracket, upper incomebracket the groups of people who earn lowor high salaries considered for tax purposes2. money which an organisation receives asgifts or from investments � The hospital hasa large income from gifts.

‘…there is no risk-free way of taking reg-ular income from your money much

higher than the rate of inflation’ [Guard-ian]

income accountincome account /�ink�m ə |�kaυnt/ nounan account that lists revenue and expenses,as distinct from a balance sheet accountincome bondincome bond /�ink�m bɒnd/ noun abond that pays a rate of return in proportionto the issuer’s incomeincome distributionincome distribution /�ink�m distri|

�bju�ʃ(ə)n/ noun the UK term for the pay-ment to investors of the income generated bya collective investment, less managementcharges, tax and expenses. It is distributed inproportion to the number of units or sharesheld by each investor.income gearingincome gearing /�ink�m ��iəriŋ/ nounthe ratio of the interest a company pays onits borrowing shown as a percentage of itspretax profits before the interest is paidincome per headincome per head /�ink�m pə �hed/,income per capita noun same as per cap-ita incomeincome recognitionincome recognition /�ink�m�rekə�niʃ(ə)n/ noun the policy under whichincome is shown in an accountincome sharesincome shares /�ink�m ʃeəz/ pluralnoun shares in an investment trust thatreceive income from the investments, but donot benefit from any rise in capital value ofthe investmentsincome smoothingincome smoothing /�ink�m �smu�ðiŋ/noun a UK term for a form of creativeaccounting that involves the manipulation ofa company’s financial statements to showsteady annual profits rather than large fluc-tuationsincome summaryincome summary /�ink�m �s�məri/noun a summary showing a company’s netprofit or net loss for the yearincome supportincome support /�ink�m sə |�pɔ�t/ nouna government benefit paid to low-incomeearners who are working less than 16 hoursper week, provided they can show that theyare actively looking for jobs. AbbreviationISincome taxincome tax /�ink�m t�ks/ noun 1. the taxon a person’s income, both earned andunearned 2. the tax on the profits of a corpo-rationincome tax formincome tax form /�ink�m t�ks �fɔ�m/noun a form to be completed which declaresall income to the tax officeincome tax returnincome tax return /�ink�m t�ks ri|

�t��n/ noun a completed tax form, withdetails of income and allowances. Alsocalled declaration of income, tax returnincome unitsincome units /�ink�m �ju�nits/ pluralnoun units in a unit trust, from which the

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119 independent variableinvestor receives dividends in the form ofincomeincomplete recordsincomplete records /�inkəmpli�t�rekɔ�dz/ plural noun an accounting systemwhich is not double-entry bookkeeping. Var-ious degrees of incompleteness can occur,e.g., single-entry bookkeeping, in whichusually only a cash book is maintained.inconvertibleinconvertible /�inkən |�v��təb(ə)l/ adjec-tive referring to currency which cannot beeasily converted into other currenciesincorporateincorporate /in |�kɔ�pəreit/ verb 1. tobring something in to form part of a maingroup � Income from the 1998 acquisition isincorporated into the accounts. 2. to form aregistered company � a company incorpo-rated in the US � an incorporated company� J. Doe Incorporatedincorporationincorporation /in|�kɔ�pə|�reiʃ(ə)n/ nounan act of incorporating a companyincreaseincrease noun /�inkri�s/ 1. an act ofbecoming larger � There have been severalincreases in tax or tax increases in the lastfew years. � There is an automatic 5%increase in price or price increase on Janu-ary 1st. � Profits showed a 10% increase oran increase of 10% on last year. 2. a highersalary � increase in pay or pay increase �The government hopes to hold salaryincreases to 3%. � she had two increaseslast year her salary went up twice � verb /in|

�kri�s/ 1. to grow bigger or higher � Profitshave increased faster than the increase inthe rate of inflation. � Exports to Africahave increased by more than 25%. � Theprice of oil has increased twice in the pastweek. � to increase in size or value tobecome larger or more valuable 2. to makesomething bigger or higher � the companyincreased her salary to £50,000 the com-pany gave her a rise in salary to £50,000

‘…turnover has the potential to beincreased to over 1 million dollars withenergetic management and very little cap-ital’ [Australian Financial Review]‘…competition is steadily increasing andcould affect profit margins as the companytries to retain its market share’ [Citizen(Ottawa)]

incrementincrement /�iŋkrimənt/ noun a regularautomatic increase in salary � an annualincrement � salary which rises in annualincrements of £1000 each year the salary isincreased by £1000incrementalincremental /�iŋkri |�ment(ə)l/ adjectiverising automatically in stagesincremental analysisincremental analysis /�iŋkriment(ə)l ə|

�n�ləsis/ noun analysis of the changes in

costs and revenues that occur when businessactivity changesincremental budgetingincremental budgeting/�iŋkriment(ə)l �b�d itiŋ/ noun a methodof setting budgets in which the prior periodbudget is used as a base for the currentbudget, which is set by adjusting the priorperiod budget to take account of any antici-pated changesincremental costincremental cost /�iŋkriment(ə)l �kɒst/noun the cost of making extra units abovethe number already planned. This may theninclude further fixed costs.incremental increaseincremental increase /�iŋkriment(ə)l�inkri�s/ noun an increase in salary accord-ing to an agreed annual incrementincremental scaleincremental scale /�iŋkriment(ə)l�skeil/ noun a salary scale with regularannual salary increasesincurincur /in|�k��/ verb to make yourself liableto something

‘…the company blames fiercely competi-tive market conditions in Europe for a£14m operating loss last year, incurreddespite a record turnover’ [FinancialTimes]

indebtedindebted /in|�detid/ adjective owingmoney to someone � to be indebted to aproperty companyindemnificationindemnification /in|�demnifi |�keiʃən/noun payment for damageindemnifyindemnify /in|�demnifai/ verb to pay fordamage � to indemnify someone for a lossindemnityindemnity /in|�demniti/ noun 1. a guaran-tee of payment after a loss � She had to payan indemnity of £100. 2. compensation paidafter a lossindentindent /�indent/ noun an order placed byan importer for goods from overseas � Theyput in an indent for a new stock of soap.indentureindenture /in|�dentʃə/ noun US a formalagreement showing the terms of a bond issueindependent companyindependent company /�indipendənt�k�mp(ə)ni/ noun a company which is notcontrolled by another companyindependent financial adviserindependent financial adviser/�indipendənt fai|�n�nʃ(ə)l əd|�vaizə/noun a person who gives impartial advice onfinancial matters, who is not connected withany financial institution. Abbreviation IFAindependent variableindependent variable /�indipendənt�veəriəb(ə)l/ noun a factor whose value,when it changes, influences one or moreother variables called ‘dependent variables’� In this model personal income is the inde-pendent variable and expenditure thedependent variable.

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index 120indexindex /�indeks/ noun 1. a list of items clas-sified into groups or put in alphabeticalorder 2. a regular statistical report whichshows rises and falls in prices, values, or lev-els 3. a figure based on the current marketprice of shares on a stock exchange (NOTE:[all noun senses] The plural is indexes orindices.) � verb to link a payment to anindex � salaries indexed to the cost of living

‘…the index of industrial production sank0.2 per cent for the latest month after rising0.3 per cent in March’ [Financial Times]‘…an analysis of the consumer price indexfor the first half of the year shows that therate of inflation went down by 12.9 percent’ [Business Times (Lagos)]

indexationindexation /�indek |�seiʃ(ə)n/ noun thelinking of something to an indexindexed portfolioindexed portfolio /�indekst pɔ�t|

�fəυliəυ/ noun a portfolio of shares in all thecompanies which form the basis of a stockexchange indexindex fundindex fund /�indeks f�nd/ noun aninvestment fund consisting of shares in allthe companies which are used to calculate aStock Exchange indexindex-linkedindex-linked /�indeks �liŋkt/ adjectiverising automatically by the percentageincrease in the cost of living � index-linkedgovernment bonds � Inflation did not affecther as she has an index-linked pension.

‘…two-year index-linked savings certifi-cates now pay 3 per cent a year tax free, inaddition to index-linking’ [FinancialTimes]

index numberindex number /�indeks �n�mbə/ noun anumber showing the percentage rise ofsomething over a periodindex trackerindex tracker /�indeks �tr�kə/ noun aninvestor or fund manager who tracks anindexindex-trackingindex-tracking /�indeks �tr�kiŋ/ adjec-tive adjusted to follow changes in a particu-lar index, e.g. the Bank of England’s baserateindicatorindicator /�indikeitə/ noun a factor of asituation that gives an indication of a generaltrend

‘…it reduces this month’s growth in thekey M3 indicator from about 19% to 12%’[Sunday Times]‘…we may expect the US leading eco-nomic indicators for April to show fastereconomic growth’ [Australian FinancialReview]‘…other indicators, such as high real inter-est rates, suggest that monetary conditionsare extremely tight’ [Economist]

indirect costsindirect costs /�indairekt �kɒsts/, indi-rect expenses /�indairekt ik|�spensiz/plural noun costs which are not directlyrelated to the making of a product, e.g.cleaning, rent or administrationindirect labour costsindirect labour costs /�indairekt�leibə �kɒsts/ plural noun the cost of payingemployees not directly involved in making aproduct, such as cleaners or administrativestaff. Such costs cannot be allocated to a costcentre.indirect liabilityindirect liability /�indairekt �laiə |�biliti/noun an obligation that may arise in future,as, e.g., if a lawsuit is brought against thecompanyindirect material costindirect material cost /�indairekt mə|

�tiəriəl �kɒst/, indirect materials cost/�indairekt mə |�tiəriəlz �kɒst/ noun thecost of materials which cannot be allocatedto the production of a particular productindirect taxindirect tax /�indairekt �t�ks/ noun a taxsuch as VAT paid to someone who then paysit to the governmentindirect taxationindirect taxation /�indairekt t�k |

�seiʃ(ə)n/ noun taxes which are not paiddirect to the government, e.g. sales tax �The government raises more money by indi-rect taxation than by direct.Individual Retirement AccountIndividual Retirement Account/�individ uəl ri|�taiəmənt ə |�kaυnt/ nounUS a tax-deferred pension scheme, thatallows individuals to make contributions to apersonal retirement fund. Abbreviation IRAIndividual Savings AccountIndividual Savings Account/�individ uəl �seiviŋz ə|�kaυnt/ noun aBritish scheme by which individuals caninvest by putting a limited amount of moneyeach year in a tax-free account. Abbrevia-tion ISAIndividual Voluntary ArrangementIndividual Voluntary Arrangement/�individ uəl �vɒlənt(ə)ri ə|�reind mənt/noun a legally binding arrangement betweena debtor and creditors by which the debtoroffers the creditors the best deal he or shecan afford by realising his assets, and so theexpense of bankruptcy proceedings isavoided. Abbreviation IVAinducementinducement /in|�dju�smənt/ noun some-thing which helps to persuade someone todo something � They offered her a companycar as an inducement to stay.industrial arbitration tribunalindustrial arbitration tribunal /in|

�d�striəl �ɑ�bi|�treiʃ(ə)n trai|�bju�n(ə)l/noun a court which decides in industrial dis-putesindustrial tribunalindustrial tribunal /in|�d�striəl trai|

�bju�n(ə)l/ noun a court which can decide indisputes about employment

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121 input cost‘ACAS has a legal obligation to try andsolve industrial grievances before theyreach industrial tribunals’ [PersonnelToday]

inflationinflation /in|�fleiʃ(ə)n/ noun a greaterincrease in the supply of money or creditthan in the production of goods and services,resulting in higher prices and a fall in thepurchasing power of money � to take meas-ures to reduce inflation � High interest ratestend to increase inflation. � we have 3%inflation or inflation is running at 3%prices are 3% higher than at the same timelast yearinflation accountinginflation accounting /in|�fleiʃ(ə)n ə|

�kaυntiŋ/ noun an accounting system inwhich inflation is taken into account whencalculating the value of assets and the prep-aration of accountsinflationaryinflationary /in|�fleiʃ(ə)n(ə)ri/ adjectivetending to increase inflation � inflationarytrends in the economy

‘…inflationary expectations fell some-what this month, but remained a long wayabove the actual inflation rate, accordingto figures released yesterday. The annualrate of inflation measured by the consumerprice index has been below 2 per cent forover 18 months’ [Australian FinancialReview]

inflation-proofinflation-proof /in|�fleiʃ(ə)n pru�f/adjective referring to a pension, etc. which isindex-linked, so that its value is preserved intimes of inflationinflowinflow /�infləυ/ noun the act of coming inor being brought in

‘…the dollar is strong because of capitalinflows rather than weak because of thetrade deficit’ [Duns Business Month]

influxinflux /�infl�ks/ noun an inflow, especiallyone where people or things come in in largequantities � an influx of foreign currencyinto the country � an influx of cheap labourinto the cities

‘…the retail sector will also benefit fromthe expected influx of tourists’ [AustralianFinancial Review]

inheritinherit /in|�herit/ verb to get somethingfrom a person who has died � When herfather died she inherited the shop. � Heinherited £10,000 from his grandfather.inheritanceinheritance /in|�herit(ə)ns/ noun prop-erty which is received from a dead personinheritance taxinheritance tax /in|�herit(ə)ns t�ks/noun tax payable on wealth or propertyworth above a certain amount and inheritedafter the death of someone. The currentthreshold is £285,000, and the estate is liable

for 40% tax on the excess amount. Abbrevi-ation IHT. Also called death dutyin-housein-house /�in �haυs/ adverb, adjectivedone by someone employed by a companyon their premises, not by an outside contrac-tor � the in-house staff � We do all our dataprocessing in-house.initial capitalinitial capital /i |�niʃ(ə)l �k�pit(ə)l/ nouncapital which is used to start a businessinitial public offeringinitial public offering /i|�niʃ(ə)l �p�blik�ɒf(ə)riŋ/ noun US the process of offeringshares in a corporation for sale to the publicfor the first time. Abbreviation IPO (NOTE:The UK term is offer for sale.)initial salesinitial sales /i|�niʃ(ə)l �seilz/ plural nounthe first sales of a new productinitial yieldinitial yield /i|�niʃ(ə)l �ji�ld/ noun the esti-mated yield of an investment fund at thetime when it is launchedinitiateinitiate /i|�niʃieit/ verb to start � to initiatediscussionsinjectioninjection /in|�d ekʃən/ noun � a capitalinjection of £100,000 or an injection of£100,000 capital putting £100,000 into anexisting businessinjunctioninjunction /in|�d �ŋkʃ(ə)n/ noun a courtorder telling someone not to do something �He got an injunction preventing the com-pany from selling his car.inlandinland /�inlənd/ adjective inside a countryinland freight chargesinland freight charges /�inlənd �freit�tʃɑ�d iz/ plural noun charges for carryinggoods from one part of the country toanotherinland postageinland postage /�inlənd �pəυstid /noun postage for a letter to another part ofthe same countryInland RevenueInland Revenue /�inlənd �revənju�/noun a former UK government departmentwhich dealt with taxes such as income tax,corporation tax, capital gains tax and inher-itance tax, but not duties such as ValueAdded Tax. It merged with the Customs andExcise to form HM Revenue & Customs in2005. � He received a letter from the InlandRevenue. (NOTE: The US term is InternalRevenue Service or IRS.)Inland Revenue CommissionerInland Revenue Commissioner/�inl�nd �revənju� kə|�miʃ(ə)nə/ noun aperson appointed officially to supervise thecollection of taxes, including income tax,capital gains tax and corporation tax, but notVAT. Abbreviation IRCinput costinput cost /�inpυt kɒst/ noun the cost ofoverhead items such as labour and materialused in the production of goods or services

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inputs 122inputsinputs /�inpυts/ plural noun goods or serv-ices bought by a company and which may beliable to VATinput taxinput tax /�inpυt t�ks/ noun VAT whichis paid by a company on goods or servicesboughtinsiderinsider /in|�saidə/ noun a person whoworks in an organisation and thereforeknows its secretsinsider tradinginsider trading /in|�saidə �treidiŋ/,insider buying /�insaidə �baiiŋ/, insiderdealing /in|�saidə �di�liŋ/ noun the illegalbuying or selling of shares by staff of a com-pany or other persons who have secret infor-mation about the company’s plansinsolvencyinsolvency /in|�sɒlvənsi/ noun the fact ofnot being able to pay debts. Opposite sol-vency (NOTE: A company is insolvent whenits liabilities are higher than its assets: if thishappens it must cease trading. Note thatinsolvency is a general term, but is usuallyapplied to companies; individuals or part-ners are usually described as bankruptonce they have been declared so by acourt.)

‘…hundreds of thrifts found themselveson the brink of insolvency after a deregu-lation programme prompted them to enterdangerous financial waters’ [Times]

insolvency practitionerinsolvency practitioner /in|�sɒlvənsipr�k|�tiʃ(ə)nə/ noun a person who advisesinsolvent companiesinsolventinsolvent /in |�sɒlvənt/ adjective not ableto pay debts � The company was declaredinsolvent. (NOTE: see note at insolvency)inspectinspect /in|�spekt/ verb to examine indetail � to inspect a machine or an installa-tion � Officials from the DTI have come toinspect the accounts.inspectioninspection /in|�spekʃ(ə)n/ noun the closeexamination of something � to make aninspection or to carry out an inspection of amachine or an installationinspectorinspector /in|�spektə/ noun an officialwho inspects � The inspectors will soon beround to make sure the building is safe.inspectorateinspectorate /in|�spekt(ə)rət/ noun anauthority to which inspectors are responsi-bleinspector of taxesinspector of taxes /in|�spektər əv�t�ksiz/ noun in the United Kingdom, anofficial who reports to HM Revenue & Cus-toms and is responsible for issuing taxreturns and assessments, agreeing tax liabil-ities and conducting appeals on matters oftaxinspector of weights and measuresinspector of weights and measures/in|�spektər əv �weits ən �me əz/ noun a

government official who inspects weighingmachines and goods sold in shops to see ifthe quantities and weights are correctinstalmentinstalment /in|�stɔ�lmənt/ noun a part ofa payment which is paid regularly until thetotal amount is paid � The first instalment ispayable on signature of the agreement.(NOTE: The US spelling is installment.) � topay £25 down and monthly instalments of£20 to pay a first payment of £25 and the restin payments of £20 each monthinstituteinstitute /�institju�t/ noun a society ororganisation which represents a particularprofession or activity � the Institute ofChartered AccountantsInstitute of Chartered Accountants in England and WalesInstitute of Chartered Accountantsin England and Wales /�institju�t əv�tʃɑ�təd ə|�kaυntənts in �iŋ�lənd ən�weilz/ noun the largest professionalaccountancy body in Europe, providingqualification by examinations, ensuring highstandards of education and training, andsupervising professional conduct. Abbrevia-tion ICAEWInstitute of Chartered Accountants in IrelandInstitute of Chartered Accountantsin Ireland /�institju�t əv �tʃɑ�təd ə |

�kaυntənts in �aiələnd/ noun the oldestand largest professional body for account-ants in Ireland, founded in 1888 with theaims of in promoting best practice in char-tered accountancy and maintaining highstandards of professionalism among itsmembers. Abbreviation ICAIInstitute of Chartered Accountants in ScotlandInstitute of Chartered Accountantsin Scotland /�institju�t əv �tʃɑ�təd ə|

�kaυntənts in �skɒtlənd/ noun the world’soldest professional body for accountants,based in Edinburgh. Abbreviation ICASInstitute of Chartered Accountants of New ZealandInstitute of Chartered Accountantsof New Zealand /�institju�t əv �tʃɑ�tədə|�kaυntənts əv nju� �zi�lənd/ noun theonly professional accounting body in NewZealand, representing over 26,000 membersin that country and abroad. AbbreviationICANZInstitute of Financial AccountantsInstitute of Financial Accountants/�institju�t əv fai|�n�nʃ(ə)l ə|�kaυntənts/noun a professional body, established in1916, which aims to set technical and ethicalstandards in UK financial accountancy.Abbreviation IFAinstitutioninstitution /�insti|�tju�ʃ(ə)n/ noun anorganisation or society set up for a particularpurpose. � financial institutioninstitutionalinstitutional /�insti |�tju�ʃ(ə)n(ə)l/ adjec-tive relating to an institution, especially afinancial institution

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123 intercompany profit‘…during the 1970s commercial propertywas regarded by big institutional investorsas an alternative to equities’ [InvestorsChronicle]

institutional investorinstitutional investor/�institju�ʃ(ə)n(ə)l in|�vestə/ noun 1. afinancial institution which invests money insecurities 2. an organisation (such as a pen-sion fund or insurance company) with largesums of money to investinstructioninstruction /in|�str�kʃən/ noun an orderwhich tells what should be done or howsomething is to be used � She gave instruc-tions to his stockbroker to sell the sharesimmediately.instrumentinstrument /�instrυmənt/ noun 1. a toolor piece of equipment � The technicianbrought instruments to measure the outputof electricity. 2. a legal documentinsufficient fundsinsufficient funds /�insəfiʃ(ə)nt�f�ndz/ plural noun US same as non-suffi-cient fundsinsurableinsurable /in|�ʃυərəb(ə)l/ adjective possi-ble to insureinsurable interestinsurable interest /in|�ʃυərəb(ə)l�intrəst/ noun the value of the thing insuredwhich is attributed to the person who is tak-ing out the insuranceinsuranceinsurance /in|�ʃυərəns/ noun an agree-ment that in return for regular paymentscalled ‘premiums’, a company will paycompensation for loss, damage, injury ordeath � to take out insurance � Repairs willbe paid for by the insurance.insurance adjusterinsurance adjuster /in|�ʃυərəns ə|

�d �stə/ noun US same as loss adjusterinsurance agentinsurance agent /in|�ʃυərəns �eid ənt/,insurance broker /in |�ʃυərəns �brəυkə/noun a person who arranges insurance forclientsinsurance claiminsurance claim /in|�ʃυərəns kleim/noun a request to an insurance company topay compensation for damage or lossinsurance companyinsurance company /in|�ʃυərəns�k�mp(ə)ni/ noun a company whose busi-ness is insuranceinsurance contractinsurance contract /in|�ʃυərəns�kɒntr�kt/ noun an agreement by an insur-ance company to insureinsurance coverinsurance cover /in|�ʃυərəns �k�və/noun protection guaranteed by an insurancepolicyinsurance policyinsurance policy /in|�ʃυərəns �pɒlisi/noun a document which shows the condi-tions of an insurance contractinsurance premiuminsurance premium /in|�ʃυərəns�pri�miəm/ noun an annual payment made

by a person or a company to an insurancecompanyinsurance premium taxinsurance premium tax /in|�ʃυərəns�pri�miəm �t�ks/ noun a tax on household,motor vehicle, travel and other generalinsuranceinsurance ratesinsurance rates /in|�ʃυərəns reits/ plu-ral noun the amount of premium which hasto be paid per £1000 of insuranceinsureinsure /in|�ʃυə/ verb to have a contract witha company whereby, if regular small pay-ments are made, the company will pay com-pensation for loss, damage, injury or death �to insure a house against fire � to insuresomeone’s life � to insure against loss ofearnings � She was insured for £100,000.insurerinsurer /in|�ʃυərə/ noun a company whichinsures (NOTE: For life insurance, UK Eng-lish prefers to use assurer.)intangibleintangible /in|�t�nd ib(ə)l/ adjective notpossible to touchintangible assetsintangible assets /in|�t�nd ib(ə)l��sets/, intangible fixed assets /in|

�t�nd ib(ə)l fikst ��sets/, intangibles /in|

�t�nd ib(ə)lz/ plural noun assets that havea value but which cannot be seen, e.g. good-will or a trademarkintangible valueintangible value /in|�t�nd ib(ə)l�v�lju�/ noun a value of an organisationequal to its total value minus the value of itstangible assetsintegrateintegrate /�inti�reit/ verb to link thingstogether to form one whole groupintegrated accountsintegrated accounts /�inti�reitid ə|

�kaυnts/ plural noun accounting recordsthat show both financial and cost accountsintegrationintegration /�inti |��reiʃ(ə)n/ noun the actof bringing several businesses togetherunder a central controlinter-bankinter-bank /�intə �b�ŋk/ adjectivebetween banksinter-bank loaninter-bank loan /�intə b�ŋk �ləυn/ nouna loan from one bank to anotherintercompany accountintercompany account /intə|

�k�mp(ə)ni ə|�kaυnt/ noun an account thatrecords transactions between companiesthat are affiliated to each otherinter-company dealingsinter-company dealings /�intə�k�mp(ə)ni �di�liŋz/, inter-companytransactions /�intə �k�mp(ə)ni tr�n|

�z�kʃ(ə)nz/ plural noun dealings or transac-tions between two companies in the samegroupintercompany profitintercompany profit /intə|�k�mp(ə)ni�prɒfit/ noun the profit on services providedto a related company

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interest 124interestinterest /�intrəst/ noun 1. payment madeby a borrower for the use of money, calcu-lated as a percentage of the capital borrowed� high interest, low interest interest at ahigh or low percentage 2. money paid asincome on investments or loans � to receiveinterest at 5% � deposit which yields orgives or produces or bears 5% interest �account which earns interest at 10% orwhich earns 10% interest � The bank pays10% interest on deposits. � The loan pays5% interest. 3. a part of the ownership ofsomething, e.g. if you invest money in acompany you acquire a financial share orinterest in itinterest-bearing depositsinterest-bearing deposits /�intrəst�beəriŋ di |�pɒzits/ plural noun a deposit ofmoney with a financial institution that paysinterest on the depositinterest chargesinterest charges /�intrəst �tʃɑ�d iz/plural noun money paid as interest on a loaninterest couponinterest coupon /�intrəst �ku�pɒn/ nouna slip of paper attached to a governmentbond certificate which can be cashed to pro-vide the annual interestinterest coverinterest cover /�intrəst �k�və/ noun theability to pay interest payments on a loaninterested partyinterested party /�intrestid �pɑ�ti/ nouna person or company with a financial interestin a companyinterest expenseinterest expense /�intrəst ik|�spens/noun the cost of the interest payments onborrowed moneyinterest-free creditinterest-free credit /�intrəst fri��kredit/ noun a credit or loan where nointerest is paid by the borrower � The com-pany gives its staff interest-free loans.interest rateinterest rate /�intrəst reit/ noun a figurewhich shows the percentage of the capitalsum borrowed or deposited which is to bepaid as interest. Also called rate of interestinterest rate margininterest rate margin /�intrəst reit�mɑ�d in/ noun the difference between theinterest a bank pays on deposits and theinterest it charges on loansinterest rate swapinterest rate swap /�intrəst reit �swɒp/noun an agreement between two companiesto exchange borrowings. A company withfixed-interest borrowings might swap themfor variable interest borrowings of anothercompany. Also called plain vanilla swapinterest sensitiveinterest sensitive /�intrəst �sensitiv/adjective used to describe assets, generallypurchased with credit, that are in demandwhen interest rates fall but considered lessattractive when interest rates riseinterest yieldinterest yield /�intrəst ji�ld/ noun a yieldon a fixed-interest investment

interiminterim /�intərim/ adjective made, meas-ured or happening in the middle of a period,such as the financial year, and before thefinal result for the period is available � nouna statement of interim profits or dividends

‘…the company plans to keep its annualdividend unchanged at 7.5 per share,which includes a 3.75 interim payout’[Financial Times]

interim auditinterim audit /�intərim �ɔ�dit/ noun anaudit carried out for a period within a fullaccounting year, often for a half yearinterim dividendinterim dividend /�intərim �dividend/noun a dividend paid at the end of a half-yearinterim financial statementinterim financial statement /�intərimfai |�n�nʃəl �steitmənt/ noun a financialstatement that covers a period other than afull financial year. Although UK companiesare not legally obliged to publish interimfinancial statements, those listed on the Lon-don Stock Exchange are obliged to publish ahalf-yearly report of their activities and aprofit and loss account which may either besent to shareholders or published in anational newspaper. In the United States, thepractice is to issue quarterly financial state-ment.interim paymentinterim payment /�intərim �peimənt/noun a payment of part of a dividendinterim receiverinterim receiver /�intərim ri |�si�və/ nouna receiver appointed to deal with a person’saffairs until a bankruptcy order is madeintermediate debtintermediate debt /�intə|�mi�diət det/noun a form of debt which has to be repaidbetween four and ten years’ timeinternalinternal /in |�t��n(ə)l/ adjective 1. inside acompany 2. inside a country or a regioninternal auditinternal audit /in|�t��n(ə)l �ɔ�dit/ noun anaudit carried out by a department inside thecompanyinternal auditorinternal auditor /in|�t��n(ə)l �ɔ�ditə/noun a member of staff who audits a com-pany’s accountsinternal controlinternal control /in|�t��n(ə)l kən|�trəυl/noun a system set up by the management ofa company to monitor and control the com-pany’s activitiesinternal growthinternal growth /in|�t��n(ə)l ��rəυθ/noun the development of a company bygrowing its existing business with its ownfinances, as opposed to acquiring other busi-nesses. Also called organic growthinternal rate of returninternal rate of return /in|�t��n(ə)l reitəv ri|�t��n/ noun an average annual yield ofan investment, where the interest earnedover a period of time is the same as the orig-

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125 interventioninal cost of the investment. AbbreviationIRRinternal reportinginternal reporting /in |�t��n(ə)l ri |�pɔ�tiŋ/noun financial information gathered andcommunicated within a companyInternal Revenue ServiceInternal Revenue Service /in|�t��n(ə)l�revənju� �s��vis/ noun in the UnitedStates, the branch of the federal governmentcharged with collecting the majority of fed-eral taxes. Abbreviation IRSinternal tradeinternal trade /in|�t��n(ə)l �treid/ nountrade between various parts of a country.Opposite external tradeInternational Accounting StandardsInternational Accounting Standards/�intən�ʃ(ə)nəl ə|�kaυntiŋ �st�ndədz/plural noun standards of accounting proce-dure set and monitored, since 2001, by theInternational Accounting Standards BoardInternational Accounting Standards BoardInternational Accounting StandardsBoard /�intən�ʃ(ə)nəl ə|�kaυntiŋ�st�ndədz �bɔ�d/ noun a London-basedindependent organisation established to setinternational standards fro accounting pro-cedures. Abbreviation IASBInternational Accounting Standards CommitteeInternational Accounting StandardsCommittee /�intən�ʃ(ə)nəl ə|�kaυntiŋ�st�ndədz kə|�miti/ noun formerly, anorganisation based in London that workedtowards achieving global agreement onaccounting standards. It was made part ofthe International Accounting StandardsBoard in 2001. Abbreviation IASCInternational Bank for Reconstruction and DevelopmentInternational Bank for Reconstruc-tion and Development /�intən�ʃ(ə)nəlb�ŋk fə �ri�kənstr�kʃ(ə)n ən di|

�veləpmənt/ noun the official name of theWorld Bank. Abbreviation IBRDInternational Centre for Settlement of Investment DisputesInternational Centre for Settlementof Investment Disputes/�intən�ʃ(ə)nəl �sentə fə �set(ə)lmənt əvin|�vestmənt di |�spju�ts/ noun one of thefive institutions that comprises the WorldBank Group. It was established in 1966 toundertake the role previously undertaken ina personal capacity by the President of theWorld Bank in assisting in mediation or con-ciliation of investment disputes betweengovernments and private foreign investors.The overriding consideration in its estab-lishment was that a specialist institutioncould help to promote increased flows ofinternational investment. Although ICSIDhas close links to the World Bank, it is anautonomous organisation. AbbreviationICSIDInternational Federation of AccountantsInternational Federation ofAccountants /�intən�ʃ(ə)nəl�fedəreiʃ(ə)n əv ə |�kaυntənts/ noun a glo-

bal organisation for the accountancy profes-sion that seeks to protect the public interestby encouraging high quality practices by theworld’s accountantsInternational Financial Reporting StandardsInternational Financial ReportingStandards /�intən�ʃ(ə)nəl fai|�n�nʃ(ə)lri|�pɔ�tiŋ �st�ndədz/ plural noun an inter-nationally agreed set of high-quality, under-standable and enforceable global standardsfor financial reportingInternational Monetary FundInternational Monetary Fund/�intən�ʃ(ə)nəl �m�nit(ə)ri �f�nd/ noun atype of bank which is part of the UnitedNations and helps member states in financialdifficulties, gives financial advice to mem-bers and encourages world trade. Abbrevia-tion IMFinternational money marketsinternational money markets/�intən�ʃ(ə)nəl �m�ni �mɑ�kits/ pluralnoun markets such as the Euromarket, theinternational market for lending or borrow-ing in Eurocurrenciesinternational reservesinternational reserves /�intən�ʃ(ə)nəlri|�z��vz/ plural noun same as foreign cur-rency reservesinternational tradeinternational trade /�intən�ʃ(ə)nəl�treid/ noun trade between different coun-triesInternetInternet /�intənet/ noun an internationalnetwork linking thousands of computersusing telephone, cable and satellite links �He searched the Internet for information oncheap tickets to the US � Much of our busi-ness is done on the Internet. � Internet salesform an important part of our turnover.

‘…they predict a tenfold increase in salesvia internet or TV between 1999 and 2004’[Investors Chronicle]‘…in two significant decisions, the Securi-ties and Exchange Board of India todayallowed trading of shares through theInternet and set a deadline for companiesto conform to norms for good corporategovernance’ [The Hindu]

Internet bankingInternet banking /�intənet �b�ŋkiŋ/noun the operation of a bank account overthe Internetinterpolationinterpolation /in|�t��pə|�leiʃ(ə)n/ noun amethod of estimating a value between twoestablished valuesinterveneintervene /�intə|�vi�n/ verb to try to makea change in a situation in which you have notbeen involved beforeinterventionintervention /�intə|�venʃən/ noun the actof becoming involved in a situation in orderto change it � the central bank’s interven-tion in the banking crisis

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intervention mechanism 126intervention mechanismintervention mechanism /�intə |

�venʃən �mekəniz(ə)m/ noun a methodused by central banks in maintainingexchange rate parities, e.g. buying or sellingforeign currencyinter vivosinter vivos /�intə �vi�vəυs/ phrase a Latinphrase, ‘between living people’inter vivos trustinter vivos trust /�intə �vi�vəυs tr�st/noun a trust set up by one person for anotherliving personintestacyintestacy /in|�testəsi/ noun the state ofhaving died without having made a willintestateintestate /in|�testət/ adjective � to dieintestate to die without having made a willintrinsic valueintrinsic value /in |�trinsik �v�lju�/ nounthe material value of something � Theseobjects have sentimental value, but nointrinsic value at all. � The intrinsic value ofjewellery makes it a good investment.introductionintroduction /�intrə|�d�kʃ(ə)n/ noun theact of bringing an established company tothe Stock Exchange (i.e., getting permissionfor the shares to be traded on the StockExchange, used when a company is formedby a demerger from an existing larger com-pany, and no new shares are being offeredfor sale)invalidinvalid /in |�v�lid/ adjective not valid or notlegal � This permit is invalid. � The claimhas been declared invalid.invalidateinvalidate /in|�v�lideit/ verb to makesomething invalid � Because the companyhas been taken over, the contract has beeninvalidated.invalidationinvalidation /in|�v�li|�deiʃən/ noun theact of making invalidinvalidityinvalidity /�invə|�liditi/ noun the fact ofbeing invalid � the invalidity of the contractinventoryinventory /�invənt(ə)ri/ noun 1. espe-cially US all the stock or goods in a ware-house or shop � to carry a high inventory �to aim to reduce inventory Also called stock2. a list of the contents of a building such asa house for sale or an office for rent � todraw up an inventory of fixtures and fittings� verb to make a list of stock or contentsinventory controlinventory control /�invənt(ə)ri kən|

�trəυl/ noun US same as stock controlinventory financinginventory financing /�invənt(ə)ri�fain�nsiŋ/ noun especially US the use ofmoney from working capital to purchasestock for resaleinventory turnoverinventory turnover /�invənt(ə)ri�t��nəυvə/ noun especially US the totalvalue of stock sold during a year, divided bythe value of the goods remaining in stock

investinvest /in|�vest/ verb 1. to put money intoshares, bonds, a building society, etc., hop-ing that it will produce interest and increasein value � He invested all his money in unittrusts. � She was advised to invest in realestate or in government bonds. 2. to spendmoney on something which you believe willbe useful � to invest money in new machin-ery � to invest capital in a new factory

‘…we have substantial venture capital toinvest in good projects’ [Times]

investmentinvestment /in|�vestmənt/ noun 1. theplacing of money so that it will produceinterest and increase in value � They calledfor more government investment in newindustries. � She was advised to makeinvestments in oil companies. 2. a share,bond or piece of property bought in the hopethat it will produce more money than wasused to buy it

‘…investment trusts, like unit trusts, con-sist of portfolios of shares and thereforeprovide a spread of investments’ [Inves-tors Chronicle]‘…investment companies took the viewthat prices had reached rock bottom andcould only go up’ [Lloyd’s List]

investment analystinvestment analyst /in|�vestmənt��nəlist/ noun a person working for astockbroking firm, who analyses the per-formance of companies in a sector of themarket, or the performance of a market sec-tor as a whole, or economic trends in generalinvestment appraisalinvestment appraisal /in |�vestmənt ə |

�preiz(ə)l/ noun the analysis of the futureprofitability of capital purchases as an aid togood managementinvestment bankinvestment bank /in|�vestmənt b�ŋk/noun US a bank which deals with the under-writing of new issues, and advises corpora-tions on their financial affairs (NOTE: TheUK term is issuing house.)investment companyinvestment company /in|�vestmənt�k�mp(ə)ni/ noun company whose sharescan be bought on the Stock Exchange, andwhose business is to make money by buyingand selling stocks and sharesinvestment grantinvestment grant /in|�vestmənt �rɑ�nt/noun a government grant to a company tohelp it to invest in new machineryinvestment incomeinvestment income /in|�vestmənt�ink�m/ noun income from investments,e.g. interest and dividends. Compareearned incomeInvestment Management AssociationInvestment Management Associa-tion /in|�vestmənt �m�nid mənt ə|

�səυsieiʃ(ə)n/ noun the trade body for theUK investment industry, formed in February

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127 irrevocable2002 following the merger of the Associa-tion of Unit Trusts and Investment Funds(AUTIF) and the Fund Manager’s Associa-tion. Abbreviation IMAinvestment propertyinvestment property /in|�vestmənt�prɒpəti/ noun property which is held forlettinginvestment revaluation reserveinvestment revaluation reserve /in|

�vestmənt ri�|�v�ljυeiʃən ri|�z��v/ nounthe capital reserve where changes in thevalue of a business’s investment propertiesare disclosed when they are revaluedinvestment trustinvestment trust /in|�vestmənt tr�st/noun a company whose shares can bebought on the Stock Exchange and whosebusiness is to make money by buying andselling stocks and sharesinvestment turnoverinvestment turnover /in|�vestmənt�t��nəυvə/ noun income earned on capitalinvested in a businessinvestorinvestor /in|�vestə/ noun a person whoinvests moneyinvestor protectioninvestor protection /in|�vestə prə|

�tekʃ(ə)n/ noun legislation to protect smallinvestors from unscrupulous investmentbrokers and advisersInvestors in IndustryInvestors in Industry /in|�vestəz in�indəstri/ plural noun a finance group partlyowned by the big British High Street banks,providing finance especially to smaller com-panies. Abbreviation 3iinvisible assetsinvisible assets /in|�vizib(ə)l ��sets/plural noun US same as intangible assetsinvisible earningsinvisible earnings /in|�vizib(ə)l ���niŋz/plural noun foreign currency earned by acountry by providing services, receivinginterests or dividends, but not by sellinggoodsinvisible exportsinvisible exports /in|�vizib(ə)l�ekspɔ�ts/ plural noun services, e.g. bank-ing, insurance and tourism, that are providedto customers overseas and paid for in foreigncurrency. Opposite visible exportsinvisible importsinvisible imports /in|�vizib(ə)l�impɔ�ts/ plural noun services that overseascompanies provide to domestic customerswho pay for them in local currency. Oppo-site visible importsinvisiblesinvisibles /in |�vizib(ə)lz/ plural nouninvisible imports and exportsinvisible tradeinvisible trade /in|�vizib(ə)l �treid/ nountrade involving invisible imports andexports. Opposite visible tradeinvoiceinvoice /�invɔis/ noun a note asking forpayment for goods or services supplied �your invoice dated November 10th � tomake out an invoice for £250 � to settle or

to pay an invoice � They sent in their invoicesix weeks late. � verb to send an invoice tosomeone � to invoice a customerinvoice discountinginvoice discounting /�invɔis�diskaυntiŋ/ noun a method of obtainingearly payment of invoices by selling them ata discount to a company which will receivepayment of the invoices when they are paid.The debtor is not informed of this arrange-ment, as opposed to factoring, where thedebtor is informed.invoice priceinvoice price /�invɔis prais/ noun theprice as given on an invoice, including anydiscount and VATinvoice registerinvoice register /�invɔis �red istə/noun a list of purchase invoices recordingthe date of receipt of the invoice, the sup-plier, the invoice value and the person towhom the invoice has been passed to ensurethat all invoices are processed by theaccounting systeminvoicinginvoicing /�invɔisiŋ/ noun the work ofsending invoices � All our invoicing is doneby computer.invoicing departmentinvoicing department /�invɔisiŋ di|

�pɑ�tmənt/ noun the department in a com-pany which deals with preparing and send-ing invoicesinvoluntary bankruptcyinvoluntary bankruptcy /in|

�vɒlənt(ə)ri �b�ŋkr�ptsi/ noun US anapplication by creditors to have a person orcorporation made bankrupt (NOTE: The UKterm is compulsory winding up.)inwardinward /�inwəd/ adjective towards thehome countryinward billinward bill /�inwəd �bil/ noun a bill of lad-ing for goods arriving in a countryIOUIOU /�ai əυ �ju�/ noun ‘I owe you’, a signeddocument promising that you will pay backmoney borrowed � to pay a pile of IOUs �I have a pile of IOUs which need paying.IPOIPO abbreviation initial public offeringIRAIRA /�airə/ abbreviation US IndividualRetirement AccountIRCIRC abbreviation Inland Revenue Commis-sionerIRRIRR abbreviation internal rate of returnirrecoverable debtirrecoverable debt /iri|�k�v(ə)rəb(ə)l�det/ noun a debt which will never be paidirredeemable bondirredeemable bond /iri|�di�məb(ə)l�bɒnd/ noun a government bond which hasno date of maturity and which therefore pro-vides interest but can never be redeemed atfull valueirrevocableirrevocable /i |�revəkəb(ə)l/ adjectiveunchangeable

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irrevocable letter of credit 128irrevocable letter of credit

irrevocable letter of credit /i |

�revəkəb(ə)l �letər əv �kredit/ noun a let-ter of credit which cannot be cancelled orchanged, except if agreed between the twoparties involvedIRS

IRS abbreviation US Internal RevenueServiceIS

IS abbreviation income supportISA

ISA /�aisə/ abbreviation Individual SavingsAccountissue

issue /�iʃu�/ noun an act of offering newshares for sale

‘…the company said that its recent issue of10.5 per cent convertible preference sharesat A$8.50 a share has been oversub-scribed’ [Financial Times]

issued capitalissued capital /�iʃu�d �k�pit(ə)l/ nounan amount of capital which is given out asshares to shareholdersissued priceissued price /�iʃu�d �prais/, issue price/�iʃu� prais/ noun the price of shares in anew company when they are offered for salefor the first timeissuerissuer /�iʃuə/ noun a financial institutionthat issues credit and debit cards and main-tains the systems for billing and paymentissuingissuing /�iʃuiŋ/ adjective organising anissue of sharesitemiseitemise /�aitəmaiz/, itemize verb to makea detailed list of things � Itemising the salesfigures will take about two days.IVAIVA abbreviation Individual VoluntaryArrangement

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JJ curveJ curve /�d ei �k��v/ noun a line on agraph shaped like a letter ‘J’, with an initialshort fall, followed by a longer rise, used todescribe the effect of a falling exchange rateon a country’s balance of tradeJITJIT abbreviation just-in-timejob cardjob card /�d ɒb kɑ�d/ noun a record cardrelating to a job and giving details of thetime taken to do a piece of work and thematerials used. This is used to allocate directlabour and materials costs.job costingjob costing /�d ɒb �kɒstiŋ/ noun theprocess of calculating the cost of a single jobor batch of work. Also called specific ordercostingjob orderjob order /�d ɒb �ɔ�də/ noun an author-ised order for the production of goods orservicesjob order costingjob order costing /�d ɒb �ɔ�də �kɒstiŋ/noun the accumulation of costs incurred byfulfilling specific orders for goods or serv-icesjointjoint /d ɔint/ adjective 1. carried out orproduced together with others � a jointundertaking 2. one of two or more peoplewho work together or who are linked � Theyare joint beneficiaries of the will. � The twocountries are joint signatories of the treaty.joint accountjoint account /�d ɔint ə|�kaυnt/ noun abank or building society account shared bytwo people � Many married couples havejoint accounts so that they can pay forhousehold expenses.joint and several liabilityjoint and several liability /�d ɔint ən�sev(ə)rəl �laiə |�biliti/ noun a situationwhere someone who has a claim against agroup of people can sue them separately ortogether as a groupjoint costjoint cost /�d ɔint �kɒst/ noun the cost ofwhich can be allocated to more than oneproduct, project or servicejoint-life annuityjoint-life annuity /�d ɔint laif ə|�njuəti/noun an annuity that continues until bothparties have died. They are attractive to mar-ried couples as they ensure that the survivorhas an income for the rest of his or her life.

jointlyjointly /�d ɔintli/ adverb together with oneor more other people � to own a propertyjointly � to manage a company jointly �They are jointly liable for damages.joint managementjoint management /�d ɔint�m�nid mənt/ noun management done bytwo or more peoplejoint ownershipjoint ownership /�d ɔint �əυnəʃip/noun the owning of a property by severalownersjoint productsjoint products /�d ɔint �prɒd�kts/ plu-ral noun two or more products that are pro-duced as a unit but are sold separately andeach have a saleable value high enough forthem to be regarded as a main productjoint returnjoint return /�d ɔint ri|�t��n/ noun a taxreturn that is filed jointly by a husband andwifejoint-stock bankjoint-stock bank /�d ɔint �stɒk �b�ŋk/noun a bank which is a public companyquoted on the Stock Exchangejoint-stock companyjoint-stock company /�d ɔint stɒk�k�mp(ə)ni/ noun formerly, a public com-pany in the UK whose shares were owned byvery many people. Now called a Public Lim-ited Company or Plc.joint venturejoint venture /�d ɔint �ventʃə/ noun asituation where two or more companies jointogether for one specific large businessprojectjournaljournal /�d ��n(ə)l/ noun a book with theaccount of sales and purchases made eachdayjournal entryjournal entry /�d ��n(ə)l �entri/ noun arecord of the accounting information for abusiness transaction, made at first in a jour-nal and later transferred to a ledgerjudgmentjudgment /�d �d mənt/, judgementnoun a legal decision or official decision ofa court � to pronounce judgment, to giveyour judgment on something to give anofficial or legal decision about somethingjudgment creditorjudgment creditor /�d �d mənt�kreditə/ noun a person who has been givena court order making a debtor pay him a debt

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judgment debtor 130judgment debtor

judgment debtor /�d �d mənt �detə/noun a debtor who has been ordered by acourt to pay a debtjunior capital

junior capital /�d u�niə �k�pit(ə)l/ nouncapital in the form of shareholders’ equity,which is repaid only after secured loanscalled ‘senior capital’ have been paid if thefirm goes into liquidationjunior mortgage

junior mortgage /�d u�niə �mɔ��id /noun a second mortgage

junior partnerjunior partner /�d u�niə �pɑ�tnə/ noun aperson who has a small part of the shares ina partnershipjunior securityjunior security /�d u�niə si|�kjυəriti/noun a security which is repaid after othersecuritiesjust-in-timejust-in-time /�d �st in �taim/ noun a sys-tem in which goods are made or purchasedjust before they are needed, so as to avoidcarrying high levels of stock. AbbreviationJIT

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KKK abbreviation one thousand � ‘salary:£20K+’ salary more than £20,000 perannumKeogh planKeogh plan /�ki�əυ �pl�n/ noun US a pri-vate pension plan allowing self-employedbusinesspeople and professionals to set uppension and retirement plans for themselveskey-person insurancekey-person insurance /�ki� p��s(ə)n in|

�ʃυərəns/ noun an insurance policy takenout to cover the costs of replacing anemployee who is particularly important toan organisation if he or she dies or is ill for along timekey ratekey rate /�ki� reit/ noun an interest ratewhich gives the basic rate on which otherrates are calculated, e.g. the former bankbase rate in the UK, or the Federal Reserve’sdiscount rate in the USAkickbackkickback /�kikb�k/ noun an illegal com-mission paid to someone, especially a gov-ernment official, who helps in a businessdealkickerkicker /�kikə/ noun a special inducementto buy a bond, e.g. making it convertible to

shares at a preferential rate (informal)kite

kite /kait/ verb 1. US to write cheques onone account which may not be able to hon-our them and deposit them in another, with-drawing money from the second accountbefore the cheques are cleared 2. to use sto-len credit cards or cheque bookskitty

kitty /�kiti/ noun money which has beencollected by a group of people to be usedlater, such as for an office party � We eachput £5 into the kitty.Know How Fund

Know How Fund /�nəυ haυ �f�nd/ nounformerly, a fund created by the UK govern-ment to provide technical training andadvice to countries of Eastern Europe. Thisfunction is now carried out by the Depart-ment for International Development.knowledge management

knowledge management /�nɒlid �m�nid mənt/ noun the task of co-ordinat-ing the specialist knowledge possessed byemployees so that it can be exploited to cre-ate benefits and competitive advantage forthe organisation

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Llabourlabour /�leibə/ noun 1. heavy work (NOTE:The US spelling is labor.) � labour ischarged at £15 an hour each hour of workcosts £15 2. workers, the workforce � Wewill need to employ more labour if produc-tion is to be increased. � The costs of labourare rising in line with inflation. (NOTE: TheUS spelling is labor.)

‘…the possibility that British goods willprice themselves back into world marketsis doubtful as long as sterling labour costscontinue to rise faster than in competitorcountries’ [Sunday Times]

labour costslabour costs /�leibə kɒsts/ plural nounthe cost of the employees employed to makea product, not including materials or over-headslabour efficiency variancelabour efficiency variance /�leibə i|

�fiʃ(ə)nsi �veəriəns/ noun the discrepancybetween the usual or expected labour timeused to produce something and the actualtime usedlabour forcelabour force /�leibə fɔ�s/ noun all theemployees in a company or in an area � Themanagement has made an increased offer tothe labour force. � We are opening a newfactory in the Far East because of the cheaplocal labour force.

‘70 per cent of Australia’s labour force isemployed in service activity’ [AustralianFinancial Review]

labour marketlabour market /�leibə �mɑ�kit/ noun thenumber of people who are available forwork � 25,000 school-leavers have justcome on to the labour market.labour rate variancelabour rate (price) variance /�leibəreit �prais �veəriəns/ noun any change tothe normal hourly rate paid to workerslabour relationslabour relations /�leibə ri |�leiʃ(ə)nz/plural noun relations between managementand employees � The company has a historyof bad labour relations.labour turnoverlabour turnover /�leibə �t��nəυvə/ nounthe movement of employees with some leav-ing their jobs and others joining. Also calledturnover of labour

labour variancelabour variance /�leibə �veəriəns/ nounany discrepancy between the actual cost oflabour in an organisation and the standardindustry costLaffer curveLaffer curve /�l�fə k��v/ noun a chartshowing that cuts in tax rates increase outputin the economy. Alternatively, increases intax rates initially produce more revenue andthen less as the economy slows down.laglag /l��/ verb to be behind or to be slowerthan somethinglagging indicatorlagging indicator /�l��iŋ �indikeitə/noun an indicator which shows a change ineconomic trends later than other indicators,e.g. the gross national product. Oppositeleading indicatorlandlordlandlord /�l�ndlɔ�d/ noun a person orcompany which owns a property which is letland registerland register /�l�nd �red istə/ noun alist of pieces of land, showing who ownseach and what buildings are on itland registrationland registration /�l�nd red i|

�streiʃ(ə)n/ noun a system of registeringland and its ownersLand RegistryLand Registry /�l�nd �red istri/ noun agovernment office where details of landownership and sales are keptland taxland tax /�l�nd t�ks/ noun a tax on theamount of land ownedlapselapse /l�ps/ verb to stop being valid, or tostop being active � The guarantee haslapsed.lapsed optionlapsed option /�l�pst �ɒpʃən/ noun anoption which has not been taken up, and nowhas expiredlast in first outlast in first out /�lɑ�st in �f��st �aυt/phrase an accounting method where stock isvalued at the price of the earliest purchases.Abbreviation LIFO. Compare first in firstoutlast quarterlast quarter /�lɑ�st �kwɔ�tə/ noun aperiod of three months at the end of thefinancial yearlast will and testamentlast will and testament /�lɑ�st �wil ən�testəmənt/ noun a will, a document by

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133 leaseholdwhich a person says what he or she wants tohappen to their property when they dielaunderlaunder /�lɔ�ndə/ verb to pass illegal prof-its, money from selling drugs, money whichhas not been taxed, etc., into the bankingsystem � to launder money through an off-shore bank

‘…it has since emerged that the bank wasbeing used to launder drug money andsome of its executives have been givenlengthy jail sentences’ [Times]

LAUTROLAUTRO /�laυtrəυ/ abbreviation LifeAssurance and Unit Trust RegulatoryOrganisationlawlaw /lɔ�/ noun 1. � laws 2. � inside orwithin the law obeying the laws of a coun-try � against or outside the law not accord-ing to the laws of a country � The companyis possibly operating outside the law. � tobreak the law to do something which is notallowed by law � He is breaking the law bytrading without a licence. 3. a rule govern-ing some aspect of human activity made andenforced by the statelawfullawful /�lɔ�f(ə)l/ adjective acting within thelawlaw of supply and demandlaw of supply and demand /�lɔ� əv sə|

�plai ən di|�mɑ�nd/ noun a general rule thatthe amount of a product which is available isrelated to the needs of potential customerslawslaws /lɔ�z/ plural noun rules by which acountry is governed and the activities ofpeople and organisations controlledlay out phrasal verb to spend money � Wehad to lay out half our cash budget on equip-ping the new factory.LBOLBO abbreviation leveraged buyoutL/CL/C abbreviation letter of creditLCMLCM abbreviation lower of cost or marketLDTLDT abbreviation licensed deposit-takerlead banklead bank /�i�d �b�ŋk/ noun the mainbank in a loan syndicateleading indicatorleading indicator /�li�diŋ �indikeitə/noun an indicator such as manufacturingorder books which shows a change in eco-nomic trends earlier than other indicators.Opposite lagging indicatorlead managerlead manager /�li�d �m�nid ə/ noun aperson who organises a syndicate of under-writers for a new issue of securitiesleads and lagsleads and lags /�li�dz ən �l��z/ pluralnoun in businesses that deal in foreign cur-rencies, the practice of speeding up thereceipt of payments (leads) if a currency isgoing to weaken, and slowing down the pay-ment of costs (lags) if a currency is thoughtto be about to strengthen, in order to maxim-ise gains and reduce losses

lead time

lead time /�li�d taim/ noun the timebetween deciding to place an order andreceiving the product � The lead time on thisitem is more than six weeks.lead underwriter

lead underwriter /�li�d ��ndəraitə/ nounan underwriting firm which organises theunderwriting of a share issue (NOTE: The USterm is managing underwriter.)learning curve

learning curve /�l��niŋ k��v/ noun 1. aprocess of learning something that startsslowly and then becomes faster 2. a line ona graph which shows the relationshipbetween experience in doing something andcompetence at carrying it out 3. a diagram orgraph that represents the way in which peo-ple gain knowledge or experience over time(NOTE: A steep learning curve represents asituation where people learn a great deal ina short time; a shallow curve represents aslower learning process. The curve eventu-ally levels out, representing the time whenthe knowledge gained is being consoli-dated.) 4. the decrease in the effort requiredto produce each single item when the totalnumber of items produced is doubled (NOTE:The concept of the learning curve has itsorigin in productivity research in the aircraftindustry of the 1930s, when it was discov-ered that the time and effort needed toassemble an aircraft decreased by 20%each time the total number produced dou-bled.)lease

lease /li�s/ noun a written contract for let-ting or renting a building, a piece of land ora piece of equipment for a period againstpayment of a fee � to rent office space on atwenty-year lease � the lease expires nextyear or the lease runs out next year thelease comes to an end next year � verb 1. tolet or rent offices, land or machinery for aperiod � to lease offices to small firms � tolease equipment 2. to use an office, land ormachinery for a time and pay a fee � tolease an office from an insurance company� All our company cars are leased.lease back phrasal verb to sell a propertyor machinery to a company and then take itback on a lease � They sold the office build-ing to raise cash, and then leased it back ona twenty-five year lease.leasehold

leasehold /�li�shəυld/ noun, adjectivepossessing property on a lease, for a fixedtime � to buy a property leasehold � We arecurrently occupying a leasehold property. �The company has some valuable leaseholds.� noun a property held on a lease from afreeholder � The company has some valua-ble leaseholds.

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leaseholder 134leaseholderleaseholder /�li�shəυldə/ noun a personwho holds a property on a leaseleasingleasing /�li�siŋ/ noun the use of a lease orof equipment under a lease � an equipment-leasing company � The company hasbranched out into car leasing. � lesseeleasing agreementleasing agreement /�li�siŋ ə|��ri�mənt/noun a contract between an owner and a les-see, by which the lessee has the exclusiveuse of a piece of equipment for a period oftime, against payment of a feeledgerledger /�led ə/ noun a book in whichaccounts are writtenlegacylegacy /�le�əsi/ noun a piece of propertygiven by someone to someone else in a willlegallegal /�li��(ə)l/ adjective 1. according to thelaw or allowed by the law � The company’saction in sacking the accountant was com-pletely legal. 2. referring to the lawlegal capitallegal capital /�li��(ə)l �k�pit(ə)l/ nounthe amount of shareholders’ equity in a com-pany that is not reduced when dividends arepaidlegal chargelegal charge /�li��(ə)l �tʃɑ�d / noun alegal document held by the Land Registryshowing who has a claim on a propertylegal claimlegal claim /�li��(ə)l kleim/ noun a state-ment that someone owns something legally� He has no legal claim to the property.legal costslegal costs /�li��(ə)l kɒsts/, legalcharges /�li��(ə)l �tʃɑ�d iz/, legalexpenses /�li��(ə)l ik|�spensiz/ plural nounmoney spent on fees to lawyers � The clerkcould not afford the legal expenses involvedin suing her boss.legal currencylegal currency /�li��(ə)l �k�rənsi/ nounmoney which is legally used in a countrylegal tenderlegal tender /�li��(ə)l �tendə/ noun coinsor notes which can be legally used to pay adebtlegateelegatee /�le�ə|�ti�/ noun a person whoreceives property from someone who hasdiedlendlend /lend/ verb to allow someone to usesomething for a period � to lend somethingto someone or to lend someone something �to lend money against security � He lent thecompany money or He lent money to thecompany. � The bank lent her £50,000 tostart her business. (NOTE: lending – lent)lenderlender /�lendə/ noun a person who lendsmoneylender of the last resortlender of the last resort /�lendə əv ðə�lɑ�st ri|�zɔ�t/ noun a central bank whichlends money to commercial banks

lending limitlending limit /�lendiŋ �limit/ noun arestriction on the amount of money a bankcan lendlending marginlending margin /�lendiŋ �mɑ�d in/ nounan agreed spread for lending, based on theLIBORlessless /les/ adjective smaller than, of asmaller size or of a smaller value � We donot grant credit for sums of less than £100.� He sold it for less than he had paid for it.� preposition minus, with a sum removed �purchase price less 15% discount � interestless service charges � adverb not as muchlesseelessee /le|�si�/ noun a person who has alease or who pays money for a property he orshe leaseslessorlessor /le|�sɔ�/ noun a person who grants alease on a propertyletlet /let/ verb to allow the use of a house, anoffice or a farm to someone for the paymentof rent (NOTE: The US term is rent.)letter of acknowledgementletter of acknowledgement /�letər əvək|�nɒlid mənt/ noun a letter which saysthat something has been receivedletter of creditletter of credit /�letər əv �kredit/ noun adocument issued by a bank on behalf of acustomer authorising payment to a supplierwhen the conditions specified in the docu-ment are met. Abbreviation L/Cletter of indemnityletter of indemnity /�letər əv in|

�demniti/ noun a letter promising paymentas compensation for a lossletter of intentletter of intent /�letər əv in|�tent/ noun aletter which states what a company intendsto do if something happensletter of licenceletter of licence /�letər əv �lais(ə)ns/noun a letter from a creditor to a debtor whois having problems repaying money owed,giving the debtor a certain period of time toraise the money and an undertaking not tobring legal proceedings to recover the debtduring that periodletters patentletters patent /�letəz �peitənt/ pluralnoun the official term for a patentlevellevel /�lev(ə)l/ verb � to level off or to levelout to stop rising or falling � Profits havelevelled off over the last few years. � Pricesare levelling out.leverageleverage /�levərid / noun 1. same asgearing 2. the act of borrowing money atfixed interest which is then used to producemore money than the interest paidleveragedleveraged /�li�vərid / adjective borrow-ing relatively large sums of money in orderto finance assetsleveraged buyoutleveraged buyout /�li�vərid d �baiaυt/,leveraged takeover /�li�vərid d

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135 limiting factor�teikəυvə/ noun an act of buying all theshares in a company by borrowing moneyagainst the security of the shares to bebought. Abbreviation LBO

‘…the offer came after management hadoffered to take the company privatethrough a leveraged buyout for $825 mil-lion’ [Fortune]

levylevy /�levi/ noun money which is demandedand collected by the government

‘…royalties have been levied at a rate of12.5% of full production’ [Lloyd’s List]

liabilitiesliabilities /�laiə|�bilitiz/ plural noun thedebts of a business, including dividendsowed to shareholders � The balance sheetshows the company’s assets and liabilities.� to discharge your liabilities in full to payeverything which you oweliabilityliability /�laiə|�biliti/ noun 1. a legalresponsibility for damage, loss or harm �The two partners took out insurance to coveremployers’ liability. 2. responsibility for apayment such as the repayment of a loanLIBORLIBOR /�laibɔ�/ abbreviation LondonInterbank Offered Ratelicensed deposit-takerlicensed deposit-taker /�lais(ə)nst di|

�pɒzit �teikə/, licensed institution/�lais(ə)nst �insti|�tju�ʃ(ə)n/ noun adeposit-taking institution which is licensedto receive money on deposit from privateindividuals and to pay interest on it, e.g. abuilding society, bank or friendly society.Abbreviation LDTlienlien /�li�ən/ noun the legal right to holdsomeone’s goods and keep them until a debthas been paidlife assurancelife assurance /�laif ə |�ʃυərəns/ nouninsurance which pays a sum of money whensomeone dies, or at an agreed date if they arestill aliveLife Assurance and Unit Trust Regulatory OrganisationLife Assurance and Unit Trust Reg-ulatory Organisation /�laif ə|�ʃɔ�rənsən �ju�nit tr�st �re�jυlət(ə)ri�ɔ��ənaizeiʃ(ə)n/ noun an organisation setup to regulate the operations of life assur-ance companies and unit trusts, nowreplaced by the FSA. Abbreviation LAU-TROlife assurance companylife assurance company /�laif ə|

�ʃɔ�rəns �k�mp(ə)ni/ noun a company pro-viding life assurance, but usually also pro-viding other services such as investmentadvicelife-cycle costinglife-cycle costing /�laif �saik(ə)l�kɒstiŋ/ noun an estimate of the likely rev-enue generated by, and costs incurred by, aproduct over its life cycle

life expectancylife expectancy /�laif ik |�spektənsi/noun the number of years a person is likelyto livelife insurancelife insurance /�laif in|�ʃυərəns/ nounUS same as life assurancelife interestlife interest /�laif �intrəst/ noun a situa-tion where someone benefits from a prop-erty as long as he or she is alivelife tableslife tables /�laif �teib(ə)lz/ plural nounsame as actuarial tablesLIFOLIFO /�laifəυ/ abbreviation last in first outlimitlimit /�limit/ noun the point at which some-thing ends or the point where you can go nofurther � verb 1. to stop something fromgoing beyond a specific point, to restrict thenumber or amount of something 2. to restrictthe number or amount of something

‘…the biggest surprise of 1999 was therebound in the price of oil. In the earlymonths of the year commentators weretalking about a fall to $5 a barrel but for thefirst time in two decades, the oil exportingcountries got their act together, limitedproduction and succeeded in pushingprices up’ [Financial Times]

limitationlimitation /�limi |�teiʃ(ə)n/ noun the act ofallowing only a specific quantity of some-thing � The contract imposes limitations onthe number of cars which can be imported.limited companylimited company /�limitid �k�mp(ə)ni/noun a company in which each shareholderis responsible for the company’s debts onlyto the amount that he or she has invested inthe company. Limited companies must beformed by at least two directors. Abbrevia-tion Ltd. Also called limited liability com-panylimited liabilitylimited liability /�limitid �laiə|�biliti/noun a situation where someone’s liabilityfor debt is limited by lawlimited liability companylimited liability company /�limitid�laiəbiliti �k�mp(ə)ni/ noun same as lim-ited companylimited partnerlimited partner /�limitid �pɑ�tnə/ noun apartner who is responsible for the debts ofthe firm only up to the amount of moneywhich he or she has provided to the businesslimited partnershiplimited partnership /�limitid�pɑ�tnəʃip/ noun a registered businesswhere the liability of the partners is limitedto the amount of capital they have each pro-vided to the business and where the partnersmay not take part in the running of the busi-nesslimiting factorlimiting factor /�limitiŋ �f�ktə/ noun afactor which limits a company’s ability toachieve its goals, e.g. sales demand beingtoo low for the company to make enough

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line item budget 136profit � The short holiday season is a limit-ing factor on the hotel trade.line item budgetline item budget /�lain �aitəm �b�d it/noun a well-established budget layout thatshows the costs of a cost object analysed bytheir nature in a line-by-line formatline of creditline of credit /�lain əv �kredit/ noun 1.the amount of money made available to acustomer by a bank as an overdraft � toopen a line of credit or a credit line tomake credit available to someone 2. the bor-rowing limit on a credit cardlinklink /liŋk/ verb to join or to attach to some-thing else � to link pensions to inflation � tolink bonus payments to productivity � Hissalary is linked to the cost of living. � index-linkedliquidliquid /�likwid/ adjective easily convertedto cash, or containing a large amount of cashliquid assetsliquid assets /�likwid ��sets/ pluralnoun cash, or investments which can bequickly converted into cashliquidationliquidation /�likwi|�deiʃ(ə)n/ noun 1. thesale of assets for cash, usually in order topay debts � liquidation of a debt paymentof a debt 2. the winding up or closing of acompany and selling of its assets � the com-pany went into liquidation the companywas closed and its assets soldliquidation valueliquidation value /�likwi |�deiʃ(ə)n�v�lju�/ noun the amount of money thatwould be yielded by a quick sale of all of acompany’s assetsliquidatorliquidator /�likwideitə/ noun a personnamed to supervise the closing of a com-pany which is in liquidationliquidityliquidity /li|�kwiditi/ noun cash, or the factof having cash or assets which can bechanged into cashliquidity ratioliquidity ratio /li|�kwiditi �reiʃiəυ/ nounan accounting ratio used to measure anorganisation’s liquidity. It is calculated bytaking the business’s current assets, minusits stocks, divided by its current liabilities.Also called acid test ratio, quick ratiolisted companylisted company /�listid �k�mp(ə)ni/noun a company whose shares can bebought or sold on the Stock Exchangelisted securitieslisted securities /�listid si|�kjυəritiz/plural noun shares which can be bought orsold on the Stock Exchange, shares whichappear on the official Stock Exchange listListing AgreementListing Agreement /�listiŋ ə|��ri�mənt/noun a document which a company signswhen being listed on the Stock Exchange, inwhich it promises to abide by stockexchange regulations

listing detailslisting details /�listiŋ �di�teilz/ pluralnoun details of a company which are pub-lished when the company applies for a stockexchange listing (the US equivalent is the‘registration statement’)listing particularslisting particulars /�listiŋ pə|�tikjυləz/plural noun same as listing detailslisting requirementslisting requirements /�listiŋ ri|

�kwaiəmənts/ plural noun the conditionswhich must be met by a corporation beforeits stock can be listed on the New York StockExchangelitigationlitigation /�liti|��eiʃ(ə)n/ noun the bring-ing of a lawsuit against someoneloanloan /ləυn/ noun money which has beenlent

‘…over the last few weeks, companiesraising new loans from international bankshave been forced to pay more, and an unu-sually high number of attempts to syndi-cate loans among banks has failed’[Financial Times]

loan capitalloan capital /�ləυn �k�pit(ə)l/ noun apart of a company’s capital which is a loanto be repaid at a later dateloan stockloan stock /�ləυn stɒk/ noun stock issuedto an organisation in return for a loan. Loanstock earns interest.locallocal /�ləυk(ə)l/ adjective located in or pro-viding a service for a restricted area

‘…each cheque can be made out for thelocal equivalent of £100 rounded up to aconvenient figure’ [Sunday Times]‘…the business agent for Local 414 of theStore Union said his committee will rec-ommend that the membership ratify theagreement’ [Toronto Star]‘EC regulations insist that customers canbuy cars anywhere in the EC at the localpre-tax price’ [Financial Times]

local authoritylocal authority /�ləυk(ə)l ɔ� |�θɒriti/ nounan elected section of government which runsa small area of the countrylocal currencylocal currency /�ləυk(ə)l �k�rənsi/ nounthe currency of a particular country where atransaction is being carried out � Because ofthe weakness of the local currency, all pay-ments are in dollars.local governmentlocal government /�ləυk(ə)l���v(ə)nmənt/ noun elected authorities andadministrative organisations which dealwith the affairs of small areas of a countrylock intolock into /�lɒk �intə/, lock in /�lɒk �in/verb to be fixed to an interest rate orexchange rate � By buying francs forwardthe company is in effect locking itself into apound-franc exchange rate of 10.06.

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137 luxury taxLondon Interbank Offered Rate

London Interbank Offered Rate/�l�ndən �intəb�ŋk �ɒfəd reit/ noun therate at which banks offer to lend Eurodollarsto other banks. Abbreviation LIBORlong

long /lɒŋ/ adjective for a large period oftimelong bond

long bond /�lɒŋ bɒnd/, long couponbond /�lɒŋ �ku�pɒn �bɒnd/ noun a bondwhich will mature in more than ten years’timelong credit

long credit /�lɒŋ �kredit/ noun creditterms which allow the borrower a long timeto paylong-dated bill

long-dated bill /�lɒŋ �deitid �bil/ noun abill which is payable in more than threemonths’ timelong-dated stocks

long-dated stocks /�lɒŋ �deitid �stɒks/plural noun same as longslong lease

long lease /�lɒŋ �li�s/ noun a lease whichruns for fifty years or more � to take anoffice building on a long leaselong position

long position /�lɒŋ pə |�ziʃ(ə)n/ noun asituation where an investor sells long, i.e.sells forward shares which he or she owns.Compare short positionlong-range

long-range /�lɒŋ �reind / adjective for along period of time in the futurelongs

longs /lɒŋz/ plural noun governmentstocks which will mature in over fifteenyears’ time. Also called long-dated stockslong-term

long-term /�lɒŋ �t��m/ adjective relatingto a long time into the future � The manage-ment projections are made on a long-termbasis. � Sound long-term planning will givethe company more direction.long-term borrowings

long-term borrowings /�lɒŋ t��m�bɒrəυiŋz/ plural noun borrowings whichdo not have to be repaid for some yearslong-term debt

long-term debt /�lɒŋ t��m �det/ nounloans that are not repaid within a yearloose change

loose change /�lu�s �tʃeind / nounmoney in coinslose

lose /lu�z/ verb 1. not to have somethingany more 2. to have less money � He lost£25,000 in his father’s computer company.loss

loss /lɒs/ noun 1. the state or process of nothaving something any more 2. the state ofhaving less money than before or of notmaking a profit � the car was written off asa dead loss or a total loss the car was sobadly damaged that the insurers said it hadno value � to cut your losses to stop doingsomething which is losing money

‘…against losses of FFr 7.7m two yearsago, the company made a net profit of FFr300,000 last year’ [Financial Times]

loss adjusterloss adjuster /�lɒs ə|�d �stə/ noun a per-son who calculates how much insuranceshould be paid on a claimloss carrybackloss carryback /�lɒs �k�rib�k/ noun theprocess of applying a net operating loss to aprevious accounting yearloss carryforwardloss carryforward /�lɒs �k�rifɔ�wəd/noun the process of applying a net operatingloss to a following accounting yearloss reliefloss relief /�lɒs ri |�li�f/ noun an amount oftax not to be paid on one year’s profit to off-set a loss in the previous yearlotlot /lɒt/ noun 1. a group of items soldtogether at an auction � to bid for lot 23 �At the end of the auction half the lots wereunsold. 2. a group of shares which are sold� to sell a lot of shares � to sell shares insmall lotslotterylottery /�lɒtəri/ noun a game where num-bered tickets are sold and prizes given forsome of the numberslower of cost or marketlower of cost or market /�ləυər əv kɒstɔ� �mɑ�kit/ noun a stock-accountingmethod in which a manufacturing or supplyfirm values items of stock either at theiroriginal cost or the current market price,whichever is lower. Abbreviation LCMlow gearinglow gearing /�ləυ ��iəriŋ/ noun the fact ofnot having much borrowing in proportion toyour capitallow yieldlow yield /�ləυ �ji�ld/ noun a yield on theshare price which is low for the sector, sug-gesting that investors anticipate that thecompany will grow fast, and have pushed upthe share price in expectation of growthloyalty bonusloyalty bonus /�lɔiəlti �bəυnəs/ noun aspecial privilege given to shareholders whokeep their shares for a long period of time,used especially to attract investors to privati-sation issuesLtdLtd abbreviation limited companylump sumlump sum /�l�mp �s�m/ noun money paidin one single amount, not in several smallsums � When he retired he was given alump-sum bonus. � She sold her house andinvested the money as a lump sum.luncheon voucherluncheon voucher /�l�nʃtən �vaυtʃə/noun a ticket given by an employer to anemployee in addition to their wages, whichcan be exchanged for food in a restaurantluxury taxluxury tax /�l�kʃəri t�ks/ noun a tax ongoods or services that are considered non-essential

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Mmachine hour ratemachine hour rate /mə|�ʃi�n �aυə �reit/noun a method of calculating productionoverhead absorption rate, where the numberof hours the machines are expected to workis divided into the budgeted productionoverhead to give a rate per hourmacro-macro- /m�krəυ/ prefix very large, cover-ing a wide areamacroeconomicsmacroeconomics /�m�krəυi�kə|

�nɒmiks/ plural noun a study of the eco-nomics of a whole area, a whole industry, awhole group of the population or a wholecountry, in order to help in economic plan-ning. Compare microeconomics (NOTE:takes a singular verb)majority shareholdermajority shareholder /mə|�d ɒrəti�ʃeəhəυldə/ noun a person who owns morethan half the shares in a companymajority shareholdingmajority shareholding /mə|�d ɒrəti�ʃeəhəυldiŋ/ noun a group of shares whichare more than half the totalmajority votemajority vote /mə|�d ɒriti vəυt/, major-ity decision /mə|�d ɒriti di |�si (ə)n/ noun adecision which represents the wishes of thelargest group as shown by a votemakemake /meik/ verb 1. to produce or to man-ufacture � The factory makes three hundredcars a day. 2. to earn money � He makes£50,000 a year or £25 an hour. 3. to increasein value � The shares made $2.92 in today’strading. 4. � to make a profit to have moremoney after a deal � to make a loss to haveless money after a deal � to make a killingto make a very large profitmake over phrasal verb to transfer propertylegally � to make over the house to yourchildrenmake up phrasal verb to compensate forsomething � to make up a loss or differ-ence to pay extra so that the loss or differ-ence is coveredmake-or-buy decisionmake-or-buy decision /�meik ɔ� �bai di|

�si (ə)n/ noun a choice between manufac-turing a product or component and buying itin

maladministrationmaladministration /�m�ləd |�mini|

�streiʃ(ə)n/ noun incompetent administra-tionmanagemanage /�m�nid / verb to direct or to bein charge of something � to manage abranch office � A competent and motivatedperson is required to manage an importantdepartment in the company.

‘…the research director will manage anddirect a team of graduate business analystsreporting on consumer behaviour through-out the UK’ [Times]

managed earningsmanaged earnings /�m�nid d ���niŋz/plural noun the use of any of variousaccounting devices to make profits appearhigher or lower than they actually were in agiven accounting periodmanaged fundmanaged fund /�m�nid d f�nd/ noun aunit trust fund which is invested in specialistfunds within the group and can be switchedfrom one specialised investment area toanother. Also called managed unit trustmanaged ratemanaged rate /�m�nid d reit/ noun arate of interest charged by a financial institu-tion for borrowing that is not prescribed as amargin over base rate but is set from time totime by the institutionmanaged unit trustmanaged unit trust /�m�nid d �ju�nittr�st/ noun same as managed fundmanagementmanagement /�m�nid mənt/ noun 1.the process of directing or running a busi-ness � a management graduate or a gradu-ate in management � Good management orefficient management is essential in a largeorganisation. � Bad management or ineffi-cient management can ruin a business. 2. agroup of managers or directors � The man-agement has decided to give everyone a payincrease. (NOTE: Where managementrefers to a group of people it is sometimesfollowed by a plural verb.)

‘…the management says that the rate ofloss-making has come down and it expectsfurther improvement in the next few years’[Financial Times]

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139 manufacturing profitmanagement accountantmanagement accountant/�m�nid mənt ə |�kaυntənt/ noun anaccountant who prepares financial informa-tion for managers so that they can take deci-sionsmanagement accountingmanagement accounting/�m�nid mənt ə |�kaυntiŋ/, managementaccountancy /�m�nid mənt ə|

�kaυntənsi/ noun the providing of informa-tion to managers, which helps them to plan,to control their businesses and to take deci-sions which will make them run their busi-nesses more efficiently. Compare financialaccountingmanagement accountsmanagement accounts/�m�nid mənt ə |�kaυnts/ plural nounfinancial information prepared for a man-ager so that decisions can be made, includ-ing monthly or quarterly financial state-ments, often in great detail, with analysis ofactual performance against the budgetmanagement auditmanagement audit /�m�nid mənt�ɔ�dit/ noun a listing of all the managers inan organisation with information about theirskills and experience � The managementaudit helped determine how many moremanagers needed to be recruited.management buyinmanagement buyin /�m�nid mənt�baiin/ noun the purchase of a subsidiarycompany by a group of outside directors.Abbreviation MBImanagement buyoutmanagement buyout /�m�nid mənt�baiaυt/ noun the takeover of a company bya group of employees, usually senior man-agers and directors. Abbreviation MBOmanagement chargemanagement charge /�m�nid mənttʃɑ�d / noun same as annual manage-ment chargemanagement consultantmanagement consultant/�m�nid mənt kən |�s�ltənt/ noun a personwho gives advice on how to manage a busi-nessmanagement control systemmanagement control system/�m�nid mənt kən |�trəυl �sistəm/ noun acomprehensive plan designed to ensure thatan organisation’s resources are used effec-tivelymanagement decision cyclemanagement decision cycle/�m�nid mənt di |�si (ə)n �saik(ə)l/ noun amodel for efficiency in business decision-making, following the process from theidentification of a need or problem to anaccountant’s analysis of the effect of thedecisions takenmanagement information systemmanagement information system/�m�nid mənt �infə |�meiʃ(ə)n �sistəm/noun a computer-based information systemthat is specially designed to assist with man-

agement tasks and decision-making. Abbre-viation MISmanagement reviewmanagement review /�m�nid mənt ri |

�vju�/ noun an external auditor’s evaluationof the performance of the managers of anorganisation. Also called management let-termanagement teammanagement team /�m�nid məntti�m/ noun all the managers who work in aparticular companymanagermanager /�m�nid ə/ noun 1. the head ofa department in a company � She’s adepartment manager in an engineeringcompany. � Go and see the humanresources manager if you have a problem. �The production manager has been with thecompany for only two weeks. 2. the person incharge of a branch or shop � Mr Smith is themanager of our local Lloyds Bank. � Themanager of our Lagos branch is in Londonfor a series of meetings.

‘…the No. 1 managerial productivityproblem in America is managers who areout of touch with their people and out oftouch with their customers’ [Fortune]

managing directormanaging director /�m�nəd iŋ dai|

�rektə/ noun the director who is in charge ofa whole company. Abbreviation MDmandatemandate /�m�ndeit/ noun an order whichallows something to take placemandatory bidmandatory bid /�m�ndət(ə)ri �bid/noun an offer to purchase the shares of acompany which has to be made when ashareholder acquires 30% of that company’ssharesmanipulatemanipulate /mə|�nipjυleit/ verb � tomanipulate the accounts to make falseaccounts so that the company seems profita-blemanpower forecastingmanpower forecasting /�m�npaυə�fɔ�kɑ�stiŋ/ noun the process of calculatinghow many employees will be needed in thefuture, and how many will actually be avail-ablemanpower planningmanpower planning /�m�npaυə�pl�niŋ/ noun the process of planning toobtain the right number of employees ineach jobmanufacturingmanufacturing /�m�njυ|�f�ktʃəriŋ/noun the production of machine-made prod-ucts for sale � We must try to reduce themanufacturing overheads. � Manufacturingprocesses are continually being updated.manufacturing profitmanufacturing profit /�m�njυ|

�f�ktʃəriŋ �prɒfit/ noun the differencebetween the cost of buying a product fromanother supplier and the cost to the companyof manufacturing it itself

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margin 140marginmanufacturing resource planning/�m�njυ |�f�ktʃəriŋ ri|�zɔ�s �pl�niŋ/ nounan integrated computerised information sys-tem that integrates all aspects of a com-pany’s manufacturing businessmarginmargin /�mɑ�d in/ noun 1. the differencebetween the money received when selling aproduct and the money paid for it 2. extraspace or time allowed 3. the differencebetween interest paid to depositors andinterest charged to borrowers by a bank,building society, etc. 4. a deposit paid whenpurchasing a futures contract

‘…profit margins in the industries mostexposed to foreign competition – machin-ery, transportation equipment and electri-cal goods – are significantly worse thanusual’ [Australian Financial Review]

marginalmarginal /�mɑ�d in(ə)l/ adjective hardlyworth the money paidmarginal analysismarginal analysis /�mɑ�d in(ə)l ə|

�n�ləsis/ noun an assessment of the impactof minor changes on a company, industry oreconomymarginal costmarginal cost /�mɑ�d in(ə)l �kɒst/ nounthe cost of making a single extra unit abovethe number already plannedmarginal costingmarginal costing /�mɑ�d in(ə)l�kɒstiŋ/ noun the costing of a product onthe basis of its variable costs only, excludingfixed costsmarginal pricingmarginal pricing /�mɑ�d in(ə)l�praisiŋ/ noun 1. the practice of basing theselling price of a product on its variablecosts of production plus a margin, butexcluding fixed costs 2. the practice of mak-ing the selling price the same as the cost of asingle extra unit above the number alreadyplannedmarginal rate of taxmarginal rate of tax /�mɑ�d in(ə)l reitəv �t�ks/, marginal rate of taxation/�mɑ�d in(ə)l reit əv t�ks|�eiʃ(ə)n/ nounthe percentage of tax which a taxpayer paysat the top rate, which he or she thereforepays on every further pound or dollar he orshe earns. Also called marginal tax rate

‘…pensioner groups claim that pensionershave the highest marginal rates of tax.Income earned by pensioners above $30 aweek is taxed at 62.5 per cent, more thanthe highest marginal rate’ [AustralianFinancial Review]

marginal revenuemarginal revenue /�mɑ�d in(ə)l�revenju�/ noun the income from selling asingle extra unit above the number alreadysoldmarginal tax ratemarginal tax rate /�mɑ�d in(ə)l �t�ksreit/ noun same as marginal rate of tax

margin call

margin call /�mɑ�d in kɔ�l/ noun arequest for a purchaser of a futures contractor an option to pay more margin, since thefall in the price of the securities or commod-ity has removed the value of the originalmargin depositedmargin of safety

margin of safety /�mɑ�d in əv �seifti/noun the units produced or sales of suchunits which are above the breakeven pointmark down phrasal verb to make the priceof something lowermark up phrasal verb to make the price ofsomething highermark-down

mark-down /�mɑ�k daυn/ noun 1. areduction of the price of something to lessthan its usual price 2. the percentage amountby which a price has been lowered � Therehas been a 30% mark-down on all goods inthe sale.market

market /�mɑ�kit/ noun 1. an area where aproduct might be sold or the group of peoplewho might buy a product � There is no mar-ket for this product. � Our share of the Fareastern market has gone down. 2. the possi-ble sales of a specific product or demand fora specific product � There’s no market forword processors � The market for homecomputers has fallen sharply. � We have20% of the UK car market. 3. a place wheremoney or commodities are traded 4. � sell atthe market an instruction to stockbroker tosell shares at the best price possible 5. � toput something on the market to start tooffer something for sale � They put theirhouse on the market. � I hear the companyhas been put on the market. � the companyhas priced itself out of the market thecompany has raised its prices so high that itsproducts do not sell

‘…market analysts described the falls inthe second half of last week as a technicalcorrection to a market which had beenpushed by demand to over the 900 indexlevel’ [Australian Financial Review]


marketability /�mɑ�kitə |�biliti/ noun thefact of being able to be sold easily � themarketability of shares in electronic compa-niesmarketable

marketable /�mɑ�kitəb(ə)l/ adjectiveeasily soldmarket analysis

market analysis /�mɑ�kit ə |�n�ləsis/noun the detailed examination and report ofa marketmarket capitalisation

market capitalisation /�mɑ�kit�k�pitəlai |�zeiʃ(ə)n/ noun the total marketvalue of a company, calculated by multiply-ing the price of its shares on the Stock

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141 material factsExchange by the number of shares outstand-ing � company with a £1m capitalisationmarket economistmarket economist /�mɑ�kit i|

�kɒnəmist/ noun a person who specialisesin the study of financial structures and thereturn on investments in the stock marketmarket forcesmarket forces /�mɑ�kit �fɔ�siz/ pluralnoun the influences on the sales of a productwhich bring about a change in pricesmarketingmarketing /�mɑ�kitiŋ/ noun the businessof presenting and promoting goods or serv-ices in such a way as to make customerswant to buy them

‘…reporting to the marketing director, thesuccessful applicant will be responsiblefor the development of a training pro-gramme for the new sales force’ [Times]

marketing agreementmarketing agreement /�mɑ�kitiŋ ə|

��ri�mənt/ noun a contract by which onecompany will market another company’sproductsmarketing costmarketing cost /�mɑ�kitiŋ kɒst/ nounthe cost of selling a product, includingadvertising, packaging, etc.marketing departmentmarketing department /�mɑ�kitiŋ di|

�pɑ�tmənt/ noun the section of a companydealing with marketing and salesmarketing managermarketing manager /�mɑ�kitiŋ�m�nid ə/ noun a person in charge of amarketing department � The marketingmanager has decided to start a new adver-tising campaign.market leadermarket leader /�mɑ�kit �li�də/ noun 1. aproduct which sells most in a market 2. thecompany with the largest market share � Weare the market leader in home computers.

‘…market leaders may benefit from scaleeconomies or other cost advantages; theymay enjoy a reputation for quality simplyby being at the top, or they may actuallyproduce a superior product that gives themboth a large market share and high profits’[Accountancy]

marketmakermarketmaker /�mɑ�kitmeikə/ noun aperson or firm that buys and sells shares onthe stock market and offers to do so (NOTE:Marketmakers list the securities they arewilling to buy or sell and their bid and offerprices. If the prices are met, they immedi-ately buy or sell and make their money bycharging a commission on each transac-tion. Marketmakers play an important partin maintaining an orderly market.)market opportunitiesmarket opportunities /�mɑ�kit ɒpə|

�tju�nitiz/ plural noun the possibility offinding new sales in a marketmarket pricemarket price /�mɑ�kit prais/ noun 1. theprice at which a product can be sold 2. the

price at which a share stands in a stock mar-ketmarket ratemarket rate /�mɑ�kit �reit/ noun the usualprice in the market � We pay the market ratefor temporary staff or We pay temporarystaff the market rate.

‘…after the prime rate cut yesterday, therewas a further fall in short-term marketrates’ [Financial Times]

market researchmarket research /�mɑ�kit ri |�s��tʃ/ nounthe process of examining the possible salesof a product and the possible customers forit before it is put on the marketmarket risk premiummarket risk premium /�mɑ�kit risk�pri�miəm/ noun the extra return requiredfrom a high-risk share to compensate for itshigher-than-average riskmarket trendsmarket trends /�mɑ�kit �trendz/ pluralnoun gradual changes taking place in a mar-ketmarket valuemarket value /�mɑ�kit �v�lju�/ noun thevalue of an asset, a share, a product or acompany if sold todaymark-upmark-up /�mɑ�k �p/ noun 1. an increase inprice � We put into effect a 10% mark-up ofall prices in June. � Since I was last in thestore they have put at least a 5% mark-up onthe whole range of items. 2. the differencebetween the cost of a product or service andits selling price � we work to a 3.5 timesmark-up or to a 350% mark-up we takethe unit cost and multiply by 3.5 to give theselling pricemass productionmass production /�m�s prə|�d�kʃən/noun the manufacture of large quantities ofidentical productsmaster budgetmaster budget /�mɑ�stə �b�d it/ noun aplan that assesses an organisation’s pro-posed activities in terms of assets, equities,revenues and costsmatchingmatching /�m�tʃiŋ/ noun the process ofcomparing costs to sales in order to calculateprofits during an accounting periodmatching conceptmatching concept /�m�tʃiŋ �kɒnsept/,matching convention /�m�tʃiŋ kən|

�venʃən/ noun the basis for preparingaccounts which says that profits can only berecognised if sales are fully matched withcosts accrued during the same periodmaterial factsmaterial facts /mə|�tiəriəl �f�kts/ pluralnoun 1. in an insurance contract, informa-tion that the insured has to reveal at the timethat the policy is taken out, e.g., that a houseis located on the edge of a crumbling cliff.Failure to reveal material facts can result inthe contract being declared void. 2. informa-tion that has to be disclosed in a prospectus.� listing requirements

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materiality 142materialitymateriality /mə|�tiəri|��liti/ noun the seri-ousness of an omission or misstatement inaccountsmaterial newsmaterial news /mə|�tiəriəl �nju�z/ pluralnoun price sensitive developments in a com-pany, e.g., proposed acquisitions, mergers,profit warnings and the resignation of direc-tors, that most stock exchanges require acompany to announce immediately to theexchange (NOTE: The US term is materialinformation.)material requirement planningmaterial requirement planning /mə|

�tiəriəl ri |�kwaiəmənt �pl�niŋ/ a compu-ter-based system that deals with the orderingand processing of component parts andmaterials. Abbreviation MRPmaterials price variancematerials price variance /mə|�tiəriəlzprais �veəriəns/ noun the discrepancybetween the price actually paid for materialsand the price that it was expected would bepaidmaterials quantity variancematerials quantity (usage) variance/mə|�tiəriəlz �kwɒntiti �veəriəns/ noun thediscrepancy between the actual quantity ofmaterials used in production and the quan-tity of materials normally allowedmaterials variancematerials variance /mə|�tiəriəlz�veəriəns/ noun a combination of materialsprice variance and materials quantity(usage) variancematernity benefitmaternity benefit /mə|�t��niti �benifit/noun money paid by the National Insuranceto a mother when she has her childmaternity pay periodmaternity pay period /mə|�t��niti pei�piəriəd/ noun a period of eighteen weekswhen statutory maternity pay is paid. Abbre-viation MPPmaturitymaturity /mə|�tʃυəriti/ noun the time atwhich something becomes due for paymentor repaymentmaturity datematurity date /mə|�tʃυəriti deit/ noun adate when a government stock, an assurancepolicy or a debenture will become due forpayment. Also called date of maturitymaturity valuematurity value /mə|�tʃυəriti �v�lju�/noun the amount payable when a bond orother financial instrument maturesmaxi ISAmaxi ISA /�m�ksi �aisə/ noun an ISA thatoffers the opportunity to invest on the stockmarket, with a limit on combined cash andstock market investments of £7000 per year.� mini ISAmaximisationmaximisation /�m�ksimai|�zeiʃ(ə)n/,maximization noun the process of makingsomething as large as possible � profit max-imisation or maximisation of profitmaximisemaximise /�m�ksimaiz/, maximize verbto make something as large as possible �

Our aim is to maximise profits. � She is paidon results, and so has to work flat out tomaximise her earnings.maximummaximum /�m�ksiməm/ noun the largestpossible number, price or quantity � It is themaximum the insurance company will pay.(NOTE: The plural is maxima or maxi-mums.) � up to a maximum of £10 nomore than £10 � adjective largest possible �40% is the maximum income tax rate or themaximum rate of tax. � The maximum loadfor the truck is one ton. � Maximum produc-tion levels were reached last week.MBIMBI abbreviation management buyinMBOMBO abbreviation management buyoutMDMD abbreviation managing director � Shewas appointed MD of a property company.meanmean /mi�n/ adjective average � The meanannual increase in sales is 3.20%. � nounthe average or number calculated by addingseveral quantities together and dividing bythe number of quantities added � Unit salesare over the mean for the first quarter orabove the first-quarter mean.meansmeans /mi�nz/ noun a way of doing some-thing � Do we have any means of copyingall these documents quickly? � Bank trans-fer is the easiest means of payment. (NOTE:The plural is means.) � plural noun moneyor resources � The company has the meansto launch the new product. � Such a level ofinvestment is beyond the means of a smallprivate company.means testmeans test /�mi�nz test/ noun an inquiryinto how much money someone earns to seeif they are eligible for state benefitsmeans-testmeans-test /�mi�nz test/ verb to find outhow much money someone has in savingsand assets � All applicants will be means-tested.measuremeasure /�me ə/ noun 1. a way of calcu-lating size or quantity 2. a type of action �verb � to measure a company’s perform-ance to judge how well a company is doingmeasurement of profitabilitymeasurement of profitability/�me əmənt əv �prɒfitə|�biliti/ noun a wayof calculating how profitable something ismedianmedian /�mi�diən/ noun the middlenumber in a list of numbersmedical insurancemedical insurance /�medik(ə)l in|

�ʃυərəns/ noun insurance which pays thecost of medical treatment, especially whensomeone is travelling abroadmedium of exchangemedium of exchange /�mi�diəm əv iks|

�tʃeind / noun anything that is used to payfor goods. Nowadays, this usually takes theform of money (banknotes and coins), but in

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143 mid-weekancient societies, it included anything fromcattle to shells.mediumsmediums /�mi�diəmz/ plural noun gov-ernment stocks which mature in seven to fif-teen years’ timemedium-sized companymedium-sized company /�mi�diəmsaizd �k�mp(ə)ni/ noun a company whichhas an annual turnover of less than £22.8mand does not employ more than 250 staff �a medium-sized engineering companymedium-term bondmedium-term bond /�mi�diəm t��m�bɒnd/ noun a bond which matures withinfive to fifteen yearsmembermember /�membə/ noun 1. a person whobelongs to a group, society or organisation �Committee members voted on the proposal.� They were elected members of the board.� Every employer is a member of theemployers’ federation. 2. a shareholder in acompany 3. an organisation which belongsto a larger organisation � the member statesof the EU � the members of the UnitedNations � the member companies of a tradeassociation

‘…it will be the first opportunity for partymembers and trade union members toexpress their views on the tax package’[Australian Financial Review]

member bankmember bank /�membə �b�ŋk/ noun abank which is part of the Federal Reservesystemmember firmmember firm /�membə �f��m/ noun astockbroking firm which is a member of astock exchangemembershipmembership /�membəʃip/ noun 1. thefact of belonging to a group, society ororganisation � membership qualifications �conditions of membership � membership ofthe EU 2. all the members of a group � Themembership was asked to vote for the newpresident.

‘…the bargaining committee will recom-mend that its membership ratify the agree-ment at a meeting called for June’[Toronto Star]

members’ voluntary winding upmembers’ voluntary winding up/�membəz �vɒlənt(ə)ri �waindiŋ ��p/ nounthe winding up of a company by the share-holders themselvesmemorandum and articles of associationmemorandum and articles of asso-ciation /memə|�r�ndəm ənd �ɑ�tik(ə)lzəv ə|�səυsi |�eiʃ(ə)n/, memorandum ofassociation /�memər�ndəm əv ə |�səυsi|

�eiʃ(ə)n/ noun the legal documents whichset up a limited company and give details ofits name, aims, authorised share capital,conduct of meetings, appointment of direc-tors and registered office

merchantmerchant /�m��tʃənt/ noun 1. a busi-nessperson who buys and sells, especiallyone who buys imported goods in bulk forretail sale � a coal merchant � a wine mer-chant 2. a company, shop or other businesswhich accepts a credit card for purchasesmerchant bankmerchant bank /�m��tʃənt b�ŋk/ noun1. a bank which arranges loans to compa-nies, deals in international finance, buys andsells shares and launches new companies onthe Stock Exchange, but does not providebanking services to the general public 2. USa bank which operates a credit card system,accepting payment on credit cards fromretailers or ‘merchants’merchant bankermerchant banker /�m��tʃənt �b�ŋkə/noun a person who has a high position in amerchant bankmerchant numbermerchant number /�m��tʃənt �n�mbə/noun a number of the merchant, printed atthe top of the report slip when depositingcredit card paymentsmergemerge /m��d / verb to join together � Thetwo companies have merged. � The firmmerged with its main competitor.mergermerger /�m��d ə/ noun the joiningtogether of two or more companies � As aresult of the merger, the company is now thelargest in the field.merger accountingmerger accounting /�m��d ə ə|

�kaυntiŋ/ noun a way of presenting theaccounts of a newly acquired companywithin the group accounts, so as to show it inthe best possible lightmezzanine financemezzanine finance /�metsəni�n�fain�ns/ noun finance provided to a com-pany after it has received start-up financemicro-micro- /maikrəυ/ prefix very smallmicroeconomicsmicroeconomics /�maikrəυ i�kə|

�nɒmiks/ plural noun the study of the eco-nomics of people or single companies. Com-pare macroeconomics (NOTE: takes a sin-gular verb)middle managementmiddle management /�mid(ə)l�m�nid mənt/ noun department managersin a company, who carry out the policy setby the directors and organise the work of agroup of employeesmiddle pricemiddle price /�mid(ə)l prais/ noun aprice between the buying and selling price,usually shown in indicesmid-monthmid-month /�mid �m�nθ/ adjective hap-pening in the middle of the month � mid-month accountsmid-weekmid-week /�mid �wi�k/ adjective happen-ing in the middle of a week � the mid-weeklull in sales

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millionaire 144millionairemillionaire /�miljə |�neə/ noun a personwho has more than one million pounds ordollarsmini ISAmini ISA /�mini �aisə/ noun an ISA inwhich either up to £4000 can be invested instocks and shares, or up to £3000 cash canbe invested, in a given year. � maxi ISAminimisationminimisation /�minimai|�zeiʃ(ə)n/ nounmaking as small as possibleminimumminimum /�miniməm/ noun the smallestpossible quantity, price or number � to keepexpenses to a minimum � to reduce the riskof a loss to a minimum (NOTE: The plural isminima or minimums.) � adjective small-est possibleminimum cash balanceminimum cash balance /�miniməm�k�ʃ �b�ləns/ noun a reserve cash fundheld to offset unexpected cash shortagesminimum lending rateminimum lending rate /�miniməm�lendiŋ reit/ noun the lowest rate of interestformerly charged by the Bank of England todiscount houses, now replaced by the baserateminimum reservesminimum reserves /�miniməm ri|

�z��vz/ plural noun the smallest amount ofreserves which a commercial bank musthold with a central bankminimum wageminimum wage /�miniməm �weid /noun the lowest hourly wage which a com-pany can legally pay its employeesminority interestminority interest /mai|�nɒrəti �intrəst/noun the nominal value of those shares in asubsidiary company that are held by mem-bers other than the parent company or itsnomineesminority shareholderminority shareholder /mai |�nɒrəti�ʃeəhəυldə/ noun a person who owns agroup of shares but less than half of theshares in a companyminority shareholdingminority shareholding /mai |�nɒrəti�ʃeəhəυldiŋ/ noun a group of shares whichare less than half the total � He acquired aminority shareholding in the company.minusminus /�mainəs/ preposition, adverb less,without � Net salary is gross salary minustax and National Insurance deductions. �Gross profit is sales minus production costs.minus factorminus factor /�mainəs �f�ktə/ noun afactor that is unfavourable in some way, e.g.because it reduces profitability � To havelost sales in the best quarter of the year is aminus factor for the sales team.MISMIS abbreviation management informationsystemmisappropriatemisappropriate /�misə|�prəυprieit/ verbto use illegally money which is not yours,but with which you have been trusted

misappropriationmisappropriation /�misəprəυpri|

�eiʃ(ə)n/ noun the illegal use of money bysomeone who is not the owner but who hasbeen trusted to look after itmiscalculatemiscalculate /mis|�k�lkjυleit/ verb tocalculate wrongly, or to make a mistake incalculating something � The salesman mis-calculated the discount, so we hardly brokeeven on the deal.miscalculationmiscalculation /mis|�k�lkjυ |�leiʃ(ə)n/noun a mistake in calculatingmiscountmiscount noun /�miskaυnt/ a mistake incounting � verb /mis|�kaυnt/ to countwrongly, or to make a mistake in countingsomethingmismanagemismanage /mis|�m�nid / verb to man-age something badly � The company hadbeen badly mismanaged under the previousMD.mismanagementmismanagement /mis|�m�nid mənt/noun bad management � The companyfailed because of the chairman’s misman-agement.misrepresentmisrepresent /�misrepri|�zent/ verb toreport facts or what someone says wrongly� Our spokesman was totally misrepre-sented in the Sunday papers.misrepresentationmisrepresentation /�mis|�reprizen |

�teiʃ(ə)n/ noun the act of making a wrongstatement in order to persuade someone toenter into a contract such as one for buyinga product or servicemisusemisuse noun /mis|�ju�s/ the act of usingsomething, e.g. invested money, for a wrongpurpose � the misuse of funds or of assets �verb /mis|�ju�z/ � to misuse funds to usefunds in a wrong way (especially fundswhich do not belong to you)mixedmixed /mikst/ adjective 1. made up of dif-ferent sorts or of different types of thingstogether 2. neither good nor bad

‘…prices closed on a mixed note after amoderately active trading session’ [Finan-cial Times]

mixed economymixed economy /�mikst i|�kɒnəmi/noun a system which contains both national-ised industries and private enterprisemodified accountsmodified accounts /�mɒdifaid ə |

�kaυnts/ plural noun � abbreviatedaccountsmonetarismmonetarism /�m�nitə|�riz(ə)m/ noun atheory that the amount of money in the econ-omy affects the level of prices, so that infla-tion can be controlled by regulating moneysupplymonetaristmonetarist /�m�nitərist/ noun a personwho believes in monetarism and acts

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145 monthlyaccordingly � adjective according to mone-tarism � monetarist theoriesmonetarymonetary /�m�nit(ə)ri/ adjective refer-ring to money or currency

‘…the decision by the government totighten monetary policy will push theannual inflation rate above the year’s pre-vious high’ [Financial Times]‘…it is not surprising that the Fed startedto ease monetary policy some months ago’[Sunday Times]‘…a draft report on changes in the interna-tional monetary system’ [Wall Street Jour-nal]

monetary assetsmonetary assets /�m�nit(ə)ri ��sets/plural noun assets, principally accountsreceivable, cash and bank balances, that arerealisable at the amount stated in theaccounts. Other assets, e.g., facilities andmachinery, inventories, and marketablesecurities will not necessarily realise thesum stated in a business’s balance sheet.monetary itemsmonetary items /�m�nit(ə)ri �aitəmz/plural noun monetary assets such as cash ordebtors, and monetary liabilities such as anoverdraft or creditors, whose values stay thesame in spite of inflationmonetary standardmonetary standard /�m�nit(ə)ri�st�ndəd/ noun a fixed exchange rate for acurrencymonetary targetsmonetary targets /�m�nit(ə)ri �tɑ��its/plural noun figures which are given as tar-gets by the government when setting out itsbudget for the forthcoming year, e.g. themoney supply or the PSBRmonetary unitmonetary unit /�m�nit(ə)ri �ju�nit/noun a main item of currency of a countrymoneymoney /�m�ni/ noun coins and notes usedfor buying and selling � money up frontpayment in advance � They are asking for£10,000 up front before they will considerthe deal. � He had to put money up frontbefore he could clinch the deal.money at callmoney at call /�m�ni ət �kɔ�l/ noun sameas call moneymoney at call and short noticemoney at call and short notice/�m�ni ət kɔ�l ən ʃɔ�t �nəυtis/ noun in theUnited Kingdom, balances in an accountthat are either available upon demand (call)or within 14 days (short notice)money brokermoney broker /�m�ni �brəυkə/ noun adealer operating in the interbank and foreignexchange marketsmoney launderingmoney laundering /�m�ni �lɔ�ndəriŋ/noun the act of passing illegal money intothe banking systemmoneylendermoneylender /�m�ni|�lendə/ noun a per-son who lends money at interest

money lying idlemoney lying idle /�m�ni �laiiŋ �aid(ə)l/noun money which is not being used to pro-duce interest, which is not invested in busi-nessmoney-makingmoney-making /�m�ni �meikiŋ/ adjec-tive able to turn over a profit � a money-making planmoney market fundmoney market fund /�m�ni �mɑ�kitf�nd/ noun an investment fund, which onlyinvests in money market instrumentsmoney market instrumentsmoney market instruments /�m�ni�mɑ�kit �instrυmənts/ plural noun short-term investments which can be easily turnedinto cash and are traded on the money mar-kets, e.g. CDsmoney on callmoney on call /�m�ni ɒn �kɔ�l/ nounsame as call moneymoney ordermoney order /�m�ni �ɔ�də/ noun a docu-ment which can be bought as a way of send-ing money through the postmoney ratesmoney rates /�m�ni reits/ plural nounrates of interest for borrowers or lendersmoney supplymoney supply /�m�ni sə|�plai/ noun theamount of money in a country’s economy,consisting mainly of the money in circula-tion and that held in savings and chequeaccountsmoniesmonies /�m�niz/ plural noun sums ofmoney � monies owing to the company � tocollect monies duemonopolymonopoly /mə |�nɒpəli/ noun a situationwhere one person or company is the onlysupplier of a particular product or service �to be in a monopoly situation � The com-pany has the monopoly of imports of Brazil-ian wine. � The factory has the absolutemonopoly of jobs in the town.Monte Carlo methodMonte Carlo method /�mɒnti �kɑ�ləυ�meθəd/ noun a statistical analysis tech-nique for calculating an unknown quantitywhich has an exact value by using anextended series of random trials (NOTE: Thename refers to the fact that a roulette wheelin a casino, as in Monte Carlo, continuallygenerates random numbers.)monthmonth /m�nθ/ noun one of twelve periodswhich make a year � bills due at the end ofthe current month � The company pays him£1600 a month. � She earns£2,000 a month.month endmonth end /�m�nθ �end/ noun the end ofa calendar month, when accounts have to bedrawn up � The accounts department areworking on the month-end accounts.monthlymonthly /�m�nθli/ adjective happeningevery month or which is received everymonth � We get a monthly statement fromthe bank. � She makes monthly payments tothe credit card company. � He is paying for

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moonlight 146his car by monthly instalments. � Mymonthly salary cheque is late. � monthlystatement a statement sent to a customer atthe end of each month, itemising transac-tions which have taken place in his or heraccount � adverb every month � She askedif she could pay monthly by direct debit. �The account is credited monthly.moonlightmoonlight /�mu�nlait/ verb to do a secondjob for cash, often in the evening, as well asa regular job (informal)moral hazardmoral hazard /�mɒrəl �h�zəd/ noun arisk that someone will behave immorallybecause insurance, the law or some otheragency protects them against loss that theimmoral behaviour might otherwise causemoratoriummoratorium /�mɒrə|�tɔ�riəm/ noun a tem-porary stop to repayments of interest onloans or capital owed � The banks called fora moratorium on payments. (NOTE: The plu-ral is moratoria or moratoriums.)mortality tablesmortality tables /mɔ� |�t�ləti �teib(ə)lz/plural noun same as actuarial tablesmortgagemortgage /�mɔ��id / noun a legal agree-ment where someone lends money toanother person so that he or she can buy aproperty, the property being the security �to take out a mortgage on a house

‘…mortgage payments account for just 20per cent of the average first-time buyer’sgross earnings against an average of 24 percent during the past 15 years’ [Times]‘…mortgage money is becoming tighter.Applications for mortgages are running ata high level and some building societiesare introducing quotas’ [Times]‘…for the first time since mortgage ratesbegan falling a financial institution hasraised charges on homeowner loans’[Globe and Mail (Toronto)]

mortgage bondmortgage bond /�mɔ��id bɒnd/ noun acertificate showing that a mortgage existsand that property is security for itmortgage debenturemortgage debenture /�mɔ��id di|

�bentʃə/ noun a debenture where the lendercan be repaid by selling the company’s prop-ertymortgageemortgagee /mɔ��ə|�d i�/ noun a person orcompany which lends money for someone tobuy a propertymortgage faminemortgage famine /�mɔ��id �f�min/noun a situation where there is not enoughmoney available to offer mortgages to housebuyersmortgagermortgager /�mɔ��id ə/, mortgagornoun a person who borrows money to buy aproperty

movablemovable /�mu�vəb(ə)l/, moveable adjec-tive possible to move � All the movableproperty has been seized by the bailiffs.movable propertymovable property /�mu�vəb(ə)l�prɒpəti/ noun chattels and other objectswhich can be moved, as opposed to landmovablesmovables /�mu�vəb(ə)lz/, moveablesplural noun movable propertymoving averagemoving average /�mu�viŋ ��v(ə)rid /noun an average of share prices on a stockmarket, where the calculation is made over aperiod which moves forward regularlyMPPMPP abbreviation maternity pay periodMRPMRP abbreviation material requirementplanningmulti-multi- /m�lti/ prefix referring to manythings or many of one thingmulticurrencymulticurrency /�m�lti |�k�rənsi/ adjec-tive in several currenciesmultifunctional cardmultifunctional card/�m�ltif�nkʃən(ə)l �kɑ�d/ noun a plasticcard that may be used for two or more pur-poses, e.g., as a cash card, a cheque card anda debit cardmultilateralmultilateral /�m�lti|�l�t(ə)rəl/ adjectivebetween several organisations or countries� a multilateral agreementmultilateral nettingmultilateral netting /�m�ltil�t(ə)rəl�netiŋ/ noun a method of putting togethersums from various sources into one cur-rency, used by groups of banks trading inseveral currencies at the same timemultimillionmultimillion /�m�lti |�miljən/ adjectivereferring to several million pounds or dollars� They signed a multimillion pound deal.multimillionairemultimillionaire /�m�ltimiljə|�neə/ nouna person who owns property or investmentsworth several million pounds or dollarsmultiple exchange ratemultiple exchange rate /�m�ltip(ə)liks|�tʃeind reit/ noun a two-tier rate ofexchange used in certain countries where themore advantageous rate may be for touristsor for businesses proposing to build a fac-torymultiple ownershipmultiple ownership /�m�ltip(ə)l�əυnəʃip/ noun a situation where somethingis owned by several parties jointlymultiplication signmultiplication sign /�m�ltipli |�keiʃ(ə)nsain/ noun a sign (x) used to show that anumber is being multiplied by anothermultipliermultiplier /�m�ltiplaiə/ noun 1. a numberwhich multiplies another, or a factor whichtends to multiply something, as the effect ofnew expenditure on total income andreserves 2. same as uniform business ratemultiplymultiply /�m�ltiplai/ verb 1. to calculatethe sum of various numbers added together

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147 mutual funda particular number of times � If you multi-ply twelve by three you get thirty-six. �Square measurements are calculated bymultiplying length by width. 2. to grow or toincrease � Profits multiplied in the boomyears.municipal bondmunicipal bond /mju� |�nisip(ə)l �bɒnd/noun US a bond issued by a town or district

(NOTE: The UK term is local authoritybond.)mutual

mutual /�mju�tʃuəl/ adjective owned bymembers, not by shareholders � noun anycommercial organisation that is owned by itsmembers, rather than by shareholdersmutual fund

mutual fund /�mju�tʃuəl f�nd/ noun USsame as unit trust

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Nnakednaked /�neikid/ adjective used for describ-ing investment that is not protected fromrisks inherent in a particular position or mar-ketnamednamed /neimd/ adjective � the personnamed in the policy the person whose nameis given on an insurance policy as the personinsuredNAONAO abbreviation National Audit Officenarrationnarration /nə|�reiʃ(ə)n/, narrative/�n�rətiv/ noun a series of notes and expla-nations relating to transactions in theaccountsnationalnational /�n�ʃ(ə)nəl/ adjective referringto the whole of a particular countryNational Audit OfficeNational Audit Office /�n�ʃ(ə)nəl�ɔ�dit �ɒfis/ noun a body which investigatesthe use of public money by central govern-ment departments. It acts on behalf of theParliamentary Public Accounts Committee.Abbreviation NAOnational banknational bank /�n�ʃ(ə)nəl b�ŋk/ nounin the US, a bank which is chartered by thefederal government and is part of the FederalReserve system. Compare state banknational incomenational income /�n�ʃ(ə)nəl �ink�m/noun the value of income from the sales ofgoods and services in a countrynational income accountsnational income accounts/�n�ʃ(ə)nəl �ink�m ə|�kaυnts/ plural nouneconomic statistics that show the state of anation’s economy over a given period oftime, usually a year. � gross domesticproduct, gross national productNational InsuranceNational Insurance /�n�ʃ(ə)nəl in |

�ʃυərəns/ noun state insurance in the UnitedKingdom, organised by the government,which pays for medical care, hospitals,unemployment benefits, etc. AbbreviationNINational Insurance contributionNational Insurance contribution/�n�ʃ(ə)nəl in|�ʃυərəns kɒntri|�bju�ʃ(ə)n/noun a proportion of income paid eachmonth by an employee and the employee’scompany to the National Insurance scheme,which pays for medical care, hospitals,

unemployment benefits, etc. AbbreviationNICNational Insurance numberNational Insurance number/�n�ʃ(ə)nəl in|�ʃυərəns �n�mbə/ noun anumber given to each British citizen, whichis the number by which he or she is knownto the social security servicesNational Savings and InvestmentsNational Savings and Investments/�n�ʃ(ə)nəl �seiviŋz ənd in|�vestmənts/noun a part of the Exchequer, a savingsscheme for small investors including sav-ings certificates and premium bonds. Abbre-viation NS&INational Savings BankNational Savings Bank /�n�ʃ(ə)nəl�seiviŋz �b�ŋk/ noun in the United King-dom, a savings scheme established in 1861as the Post Office Savings Bank and nowoperated by National Savings and Invest-ments. Abbreviation NSBNational Savings certificatesNational Savings certificates/�n�ʃ(ə)nəl �seiviŋz sə|�tifikəts/ pluralnoun certificates showing that someone hasinvested in National Savings and Invest-ments. The NS&I issues certificates withstated interest rates and stated maturitydates, usually five or ten years.National Savings Stock RegisterNational Savings Stock Register/�n�ʃ(ə)nəl �seiviŋz �stɒk �red istə/ nounan organisation, run by National Savingsand Investments, which gives private indi-viduals the opportunity to buy British gov-ernment stocks by post without goingthrough a stockbrokerNAVNAV abbreviation net asset valueNBVNBV abbreviation net book valuenegative carrynegative carry /�ne�ətiv �k�ri/ noun adeal where the cost of finance is more thanthe return on the capital usednegative cash flownegative cash flow /�ne�ətiv �k�ʃfləυ/ noun a situation where more money isgoing out of a company than is coming innegative confirmationnegative confirmation /�ne�ətiv�kɒnfə|�meiʃən/ noun an auditor’s requestto have financial information confirmed asaccurate, to which a reply need only be sentin the case of a discrepancy

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149 net present valuenegative equitynegative equity /�ne�ətiv �ekwiti/ nouna situation where a house bought with amortgage becomes less valuable than themoney borrowed to buy it because of fallinghouse pricesnegative goodwillnegative goodwill /�ne�ətiv �υd|�wil/noun the position of a company that hasassets with a market value that is greaterthan the price the company paid for themnegative yield curvenegative yield curve /�ne�ətiv �ji�ldk��v/ noun a situation where the yield on along-term investment is less than that on ashort-term investmentnegligencenegligence /�ne�lid əns/ noun a lack ofproper care or failure to carry out a duty(with the result that a person or property isharmed)negotiable instrumentnegotiable instrument /ni|��əυʃiəb(ə)l�instrυmənt/ noun a document which canbe exchanged for cash, e.g. a bill ofexchange or a chequenegotiable papernegotiable paper /ni|��əυʃiəb(ə)l�peipə/ noun a document which can betransferred from one owner to another forcashnegotiatenegotiate /ni|��əυʃieit/ verb 1. � to nego-tiate terms and conditions or a contract todiscuss and agree the terms of a contract �he negotiated a £250,000 loan with thebank he came to an agreement with the bankfor a loan of £250,000 2. to transfer financialinstruments, e.g. bearer securities, bills ofexchange, cheques and promissory notes, toanother person in return for a considerationnegotiationnegotiation /ni |��əυʃi |�eiʃ(ə)n/ noun thediscussion of terms and conditions in orderto reach an agreement � to enter into or tostart negotiations to start discussing aproblem

‘…after three days of tough negotiations,the company reached agreement with its1,200 unionized workers’ [Toronto Star]

nest eggnest egg /�nest e�/ noun money whichsomeone has saved over a period of time,usually kept in an interest-bearing accountand intended for use after retirementnetnet /net/ adjective referring to a price,weight, pay, etc., after all deductions havebeen made � verb to make a true profit � tonet a profit of £10,000 (NOTE: netting – net-ted)

‘…out of its earnings a company will paya dividend. When shareholders receivethis it will be net, that is it will have had taxdeducted at 30 per cent’ [Investors Chron-icle]

net assetsnet assets /�net ��sets/ plural noun theamount by which the value of a company’sassets is greater than its liabilitiesnet asset valuenet asset value /�net ��set �v�lju�/noun the total value of a company afterdeducting the money owed by it (it is thevalue of shareholders’ capital plus reservesand any money retained from profits).Abbreviation NAV. Also called net worthnet asset value per sharenet asset value per share /�net ��set�v�lju� pə �ʃeə/ noun the value of a com-pany calculated by dividing the sharehold-ers’ funds by the number of shares issuednet book valuenet book value /�net �bυk �v�lju�/ nounthe historical cost of an asset less any accu-mulated depreciation or other provision fordiminution in value, e.g., reduction to netrealisable value, or asset value which hasbeen revalued downwards to reflect marketconditions. Abbreviation NBV. Also calledwritten-down valuenet borrowingsnet borrowings /�net �bɒrəυiŋz/ pluralnoun a company’s borrowings, less any cashthe company is holding in its bank accountsnet cash flownet cash flow /�net �k�ʃ �fləυ/ noun thedifference between the money coming inand the money going out of a firmnet cash inflownet cash inflow /�net �k�ʃ �infləυ/ nouna situation in which cash receipts exceedcash paymentsnet current assetsnet current assets /�net �k�rənt��sets/ plural noun the current assets of acompany, i.e. cash and stocks, less any lia-bilities. Also called net working capitalnet current liabilitiesnet current liabilities /�net �k�rənt�laiə|�bilitiz/ plural noun current liabilitiesof a company less its current assetsnet dividend per sharenet dividend per share /�net �dividendpə �ʃeə/ noun the dividend per share afterdeduction of personal income taxnet incomenet income /�net �ink�m/ noun a person’sor organisation’s income which is left aftertaking away tax and other deductionsnet interestnet interest /�net �intrəst/ noun a figureequal to gross interest minus tax paid on itnet liquid fundsnet liquid funds /�net �likwid �f�ndz/plural noun an organisation’s cash plus itsmarketable investments less its short-termborrowings, such as overdrafts and loansnet lossnet loss /�net �lɒs/ noun an actual loss,after deducting overheadsnet marginnet margin /�net �mɑ�d in/ noun the per-centage difference between received priceand all costs, including overheadsnet present valuenet present value /�net �prezənt�v�lju�/ noun the present value of the

expected cash flows minus the cost of a project. Abbreviation NPV

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net price 150net pricenet price /�net �prais/ noun the price ofgoods or services which cannot be reducedby a discountnet price methodnet price method /�net prais �meθəd/noun an approach that records the cost ofpurchases after discounts have beendeductednet proceedsnet proceeds /�net �prəυsi�dz/ pluralnoun a figure equal to the amount realisedfrom a transaction minus the cost of makingthe transactionnet profitnet profit /�net �prɒfit/ noun the amountby which income from sales is larger than allexpenditure. Also called profit after taxnet profit rationet profit ratio /�net �prɒfit �reiʃiəυ/noun the ratio of an organisation’s net profitto its total net sales. Comparing the net profitratios of companies in the same sector showswhich are the most efficient.net realisable valuenet realisable value /�net �riəlaizəb(ə)l�v�lju�/ noun the price at which goods instock could be sold, less any costs incurredin making the sale. Abbreviation NRVnet receiptsnet receipts /�net ri |�si�ts/ plural nounreceipts after deducting commission, tax,discounts, etc.net relevant earningsnet relevant earnings /�net �reləv(ə)nt���niŋz/ plural noun earnings which qualifyfor calculating pension contributions andagainst which relief against tax can beclaimed. Such earnings can be income fromemployment which is not pensionable, prof-its of a self-employed sole trader, etc.net residual valuenet residual value /�net ri |�zidjuəl�v�lju�/ noun the anticipated proceeds of anasset at the end of its useful life, less thecosts of selling it, e.g., transport and com-mission. It is used when calculating theannual charge for the straight-line method ofdepreciation. Abbreviation NRVnet returnnet return /�net ri|�t��n/ noun a return onan investment after tax has been paidnet salarynet salary /�net �s�ləri/ noun the salarywhich is left after deducting tax andNational Insurance contributionsnet salesnet sales /�net �seilz/ plural noun the totalamount of sales less damaged or returneditems and discounts to retailersnet turnovernet turnover /�net �t��n|�əυvə/ noun turn-over before VAT and after trade discountshave been deductednet working capitalnet working capital /�net �w��kiŋ�k�pit(ə)l/ noun same as net currentassetsnet worthnet worth /�net �w��θ/ noun the value ofall the property of a person or company aftertaking away what the person or company

owes � The upmarket product is targeted atindividuals of high net worth.net yieldnet yield /�net �ji�ld/ noun the profit frominvestments after deduction of taxnew issuenew issue /�nju� �iʃu�/ noun an issue ofnew shares to raise finance for a companynew issues departmentnew issues department /�nju� �iʃu�zdi|�pɑ�tmənt/ noun the section of a bankwhich deals with issues of new sharesNINI abbreviation National InsuranceNICNIC abbreviation National Insurance contri-butionNIFNIF abbreviation note issuance facilitynight safenight safe /�nait seif/ noun a safe in theoutside wall of a bank, where money anddocuments can be deposited at night, using aspecial doornilnil /nil/ noun zero or nothing � The adver-tising budget has been cut to nil.nil paid sharesnil paid shares /�nil peid �ʃeəz/ pluralnoun new shares which have not yet beenpaid fornil returnnil return /�nil ri|�t��n/ noun a reportshowing no sales, income, tax, etc.no-claims bonusno-claims bonus /�nəυ �kleimz�bəυnəs/ noun 1. a reduction of premiumson an insurance policy because no claimshave been made 2. a lower premium paidbecause no claims have been made againstthe insurance policynominalnominal /�nɒmin(ə)l/ adjective (of a pay-ment) very small � They are paying a nom-inal rent. � The employment agency makesa nominal charge for its services.nominal accountnominal account /�nɒmin(ə)l ə |�kaυnt/noun an account for recording transactionsrelating to a particular type of expense orreceiptnominal capitalnominal capital /�nɒmin(ə)l �k�pit(ə)l/noun the total of the face value of all theshares which a company is authorised toissuenominal interest ratenominal interest rate /�nɒmin(ə)l�intrəst reit/ noun an interest rateexpressed as a percentage of the face valueof a bond, not on its market valuenominal ledgernominal ledger /�nɒmin(ə)l �led ə/noun a book which records a company’stransactions in the various accountsnominal share capitalnominal share capital /�nɒmin(ə)l �ʃeə�k�pit(ə)l/ noun the total of the face valueof all the shares which a company is author-ised to issue according to its memorandumof associationnominal valuenominal value /�nɒmin(ə)l �v�lju�/noun same as face value

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151 normalisenomineenominee /�nɒmi |�ni�/ noun a person who isnominated, especially someone who isappointed to deal with financial matters onyour behalfnominee accountnominee account /�nɒmi |�ni� ə|�kaυnt/noun an account held on behalf of someonenon-acceptancenon-acceptance /�nɒn ək|�septəns/noun a situation in which the person who isto pay a bill of exchange does not accept itnoncash itemsnoncash items /�nɒn k�ʃ �aitəmz/ plu-ral noun cheques, drafts and similar itemswhich are not in the form of cashnoncontrollable costnoncontrollable cost/�nɒnkəntrəυləb(ə)l �kɒst/ noun a businesscost that the management team cannot influ-ence, e.g. the level of rent payable on build-ings occupiednon-coterminous period endsnon-coterminous period ends/�nɒnkəυt��minəs �piəriəd �endz/ noun apoint at which separate and related accountscease to cover different accounting periodsand begin to run coterminouslynon-cumulative preference sharenon-cumulative preference share/�nɒn �kju�mjυlətiv �pref(ə)rəns �ʃeə/noun a preference share where, if the divi-dend is not paid in the current year, it is lostnon-current assetsnon-current assets /�nɒn �k�rənt��sets/ plural noun � fixed assetsnon-executive directornon-executive director /nɒn i�|

�zekjυtiv dai|�rektə/ noun a director whoattends board meetings and gives advice, butdoes not work full-time for the company.Also called outside directornon-historicnon-historic /�nɒn hi|�stɒrik/ adjectivenot calculated on a historical cost basisnon-monetarynon-monetary /�nɒn �m�nit(ə)ri/ adjec-tive used for describing items or assets thatare not money and can be valued at a highervalue than their original purchase pricenon-negotiable instrumentnon-negotiable instrument /�nɒn ni|

��əυʃəb(ə)l �instrυmənt/ noun a documentwhich cannot be exchanged for cash, e.g. acrossed chequenon-performing loannon-performing loan /�nɒn p�� |�fɔ�miŋ�ləυn/ noun US a loan where the borrower isnot likely to pay any interest nor to repay theprincipal, as in the case of loans to ThirdWorld countries by western banksnonproductive capacitynonproductive capacity /�nɒnprə|

�d�ktiv kə|�p�siti/ noun capacity that pro-duces no net production, e.g. because pro-duction needs to be repeated owing todefects in earlier productsnonprofit accountingnonprofit accounting /nɒn|�prɒfit ə|

�kaυntiŋ/ noun the accounting policies andmethods employed by nonprofit organisa-tions such as charities

non-profit-making organisationnon-profit-making organisation/�nɒn �prɒfitmeikiŋ �ɔ��ənai|�zeiʃən/noun an organisation which is not allowedby law to make a profit � Non-profit-makingorganisations are exempted from tax. (NOTE:Non-profit-making organisations includecharities, professional associations, tradeunions, and religious, arts, community,research, and campaigning bodies. The USterm is nonprofit organization.)non-recurring itemsnon-recurring items /�nɒn ri |�k��riŋ�aitəmz/ plural noun items in an incomestatement that are unusual in nature or do notoccur regularlynon-refundablenon-refundable /�nɒn ri|�f�ndəb(ə)l/adjective not refunded in normal circum-stances � You will be asked to make a non-refundable deposit.non-residentnon-resident /�nɒn �rezid(ə)nt/ noun,adjective a person who is not considered aresident of a country for tax purposes � Hehas a non-resident bank account.non-sufficient fundsnon-sufficient funds /�nɒn sə|�fiʃənt�f�ndz/ noun US a lack of enough money ina bank account to pay a cheque drawn onthat account. Abbreviation NSF. Also calledinsufficient funds, not sufficient fundsnon-tariff barriersnon-tariff barriers /�nɒn �t�rif �b�riəz/plural noun barriers to international tradeother than tariffs. They include over-compli-cated documentation, verification of goodsfor health and safety reasons and blockeddeposits payable by importers to obtain for-eign currency. Abbreviation NTBsnon-taxablenon-taxable /�nɒn �t�ksəb(ə)l/ adjectivenot subject to tax � non-taxable income �Lottery prizes are non-taxable.non-trade creditornon-trade creditor /�nɒn �treid�kreditə/ noun a creditor who is not owedmoney in the normal trade of a business, e.g.a debenture holder or the Inland Revenuenon-voting sharesnon-voting shares /�nɒn �vəυtiŋ �ʃeəz/plural noun shares which do not allow theshareholder to vote at meetings. � A sharesnormal absorption costingnormal absorption costing /�nɔ�m(ə)ləb|�zɔ�pʃən �kɒstiŋ/ noun a method ofproduct costing that averages out fluctua-tions in overhead costsnormal costsnormal costs /�nɔ�m(ə)l kɒsts/ pluralnoun annual product costs averaged out togive a monthly figure, as distinct from amonthly figure that records seasonal fluctu-ations in costsnormalisenormalise /�nɔ�məlaiz/, normalize verbto store and represent numbers in a pre-agreed form, usually to provide maximumprecision

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normal loss 152normal lossnormal loss /�nɔ�m(ə)l �lɒs/ noun losswhich is usual in the type of business beingcarried on, e.g. the loss of small quantities ofmaterials during the manufacturing processnormal spoilagenormal spoilage /�nɔ�m(ə)l �spɔilid /noun the deterioration of products that willalways take place, even under the best oper-ating conditionsnotary publicnotary public /�nəυtəri �p�blik/ noun alawyer who has the authority to witness doc-uments and spoken statements, makingthem official (NOTE: The plural is notariespublic.)notenote /nəυt/ noun 1. � to send someone anote � I left a note on her desk. � notes tothe accounts notes attached to a company’saccounts by the auditors to explain items inthe accounts or to explain the principles ofaccounting used 2. paper showing thatmoney has been borrowednote issuance facilitynote issuance facility /�nəυt �iʃuəns fə|

�siliti/ noun a credit facility where a com-pany obtains a loan underwritten by banksand can issue a series of short-term Eurocur-rency notes to replace others which haveexpired. Abbreviation NIFnote of handnote of hand /�nəυt əv �h�nd/ noun adocument stating that someone promises topay an amount of money on an agreed datenote payablenote payable /�nəυt �peiəb(ə)l/ noun adocument that gives a guarantee to paymoney at a future datenote receivablenote receivable /�nəυt ri|�si�vəb(ə)l/noun a document that gives a guarantee toreceive money at a future datenotice of codingnotice of coding /�nəυtis əv �kɒdiŋ/noun an official notice from a tax authorityof someone’s tax code, which indicates thelevel of tax allowance he or she is entitled toreceivenotice of defaultnotice of default /�nəυtis əv di|�fɔ�lt/noun US same as default noticenotionalnotional /�nəυʃ(ə)n(ə)l/ adjective proba-ble but not known exactly or not quantifiable

notional incomenotional income /�nəυʃ(ə)n(ə)l �ink�m/noun an invisible benefit which is notmoney or goods and servicesnotional rentnotional rent /�nəυʃ(ə)n(ə)l �rent/ nouna sum put into accounts as rent where thecompany owns the building it is occupyingand so does not pay an actual rentnot negotiablenot negotiable /�nɒt ni |��əυʃiəb(ə)l/phrase used for referring to a cheque thatmust be deposited in an account and cannottherefore be immediately exchanged forcash. � crossed cheque, negotiableinstrumentnovationnovation /nəυ|�veiʃ(ə)n/ noun an agree-ment to change a contract by substituting athird party for one of the two original partiesNPVNPV abbreviation net present valueNRVNRV abbreviation 1. net realisable value 2.net residual valueNS&INS&I abbreviation National Savings andInvestmentsNSBNSB abbreviation National Savings BankNSFNSF abbreviation not sufficient funds ornon-sufficient fundsNTBsNTBs abbreviation non-tariff barriersnumbernumber /�n�mbə/ noun 1. a quantity ofthings or people � The number of personson the payroll has increased over the lastyear. � The number of days lost throughstrikes has fallen. 2. a printed or written fig-ure that identifies a particular thing � Pleasewrite your account number on the back ofthe cheque. � If you have a complaint tomake, always quote the batch number. � Shenoted the cheque number in the ledger. �verb to put a figure on a document � tonumber an order � I refer to your invoicenumbered 1234.numbered accountnumbered account /�n�mbəd ə|�kaυnt/noun a bank account, usually in Switzer-land, which is referred to only by a number,the name of the person holding it being keptsecretnumeralnumeral /�nju�m(ə)rəl/ noun a characteror symbol which represents a number

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OO & MO & M abbreviation organisation and meth-odsOAPOAP abbreviation old age pensionerobjectivityobjectivity /�ɒbd ek|�tiviti/ noun the factthat an accounting item can be verified bysupporting evidence, e.g. by a voucher ofsome kindobligationobligation /�ɒbli |��eiʃ(ə)n/ noun 1. a dutyto do something � There is no obligation tohelp out in another department � There isno obligation to buy. � to fulfil your con-tractual obligations to do what is stated ina contract 2. a debt � to meet your obliga-tions to pay your debtsobsolescenceobsolescence /�ɒbsə|�les(ə)ns/ noun theprocess of a product going out of datebecause of progress in design or technology,and therefore becoming less useful or valua-bleobsoleteobsolete /�ɒbsəli�t/ adjective no longerused � Computer technology changes sofast that hardware soon becomes obsolete.occupational pensionoccupational pension/�ɒkjυpeiʃ(ə)nəl �penʃə/ noun a pensionwhich is paid by the company by which anemployee has been employedoccupational pension schemeoccupational pension scheme/�ɒkjυpeiʃ(ə)nəl �penʃən ski�m/ noun apension scheme where the employee gets apension from a fund set up by the companyhe or she has worked for, which is related tothe salary he or she was earning. Also calledcompany pension schemeoccupieroccupier /�ɒkjυpaiə/ noun a person wholives in a propertyO/DO/D abbreviation overdraftodd lotodd lot /�ɒd �lɒt/ noun 1. a group of mis-cellaneous items for sale at an auction 2. USa group of less than 100 shares of stockbought or sold togetherOEICOEIC /ɔik/ abbreviation open-ended invest-ment companyoffoff /ɒf/ adjective not working or not in oper-ation � to take three days off � The agree-ment is off. � They called the strike off. � We

give the staff four days off at Christmas. �adverb 1. taken away from a price � We give5% off for quick settlement. 2. lower than aprevious price � The shares closed 2% off. �preposition 1. subtracted from � to take £25off the price � We give 10% off our usualprices. 2. not included � items off balancesheet or off balance sheet assets financialitems which do not appear in a company’sbalance sheet as assets, such as equipmentacquired under an operating lease

‘…its stock closed Monday at $21.875 ashare in NYSE composite trading, off 56%from its high last July’ [Wall Street Jour-nal]

off-balance sheet assetoff-balance sheet asset /�ɒf �b�lənsʃi�t ��set/ noun an item that is a valuableresource but does not feature on the balancesheet, e.g. an expected rebate of some sortoff-balance-sheet financingoff-balance-sheet financing /�ɒf�b�ləns ʃi�t �fain�nsiŋ/ noun a way ofraising finance through a long-term leasethat does not qualify as a capital lease andtherefore does not appear on the balancesheetoff-balance sheet liabilityoff-balance sheet liability /�ɒf �b�lənsʃi�t laiə|�biliti/ noun a potential liability thatdoes not feature on the balance sheetofferoffer /�ɒfə/ noun 1. a statement that you arewilling to give or do something, especiallyto pay a specific amount of money to buysomething � to make an offer for a company� We made an offer of £10 a share. � ornear offer US, or best offer or an offer of aprice which is slightly less than the priceasked � The car is for sale at £2,000 or nearoffer. 2. a statement that you are willing tosell something 3. a statement that you arewilling to employ someone � she receivedsix offers of jobs or six job offers six com-panies told her she could have a job withthem 4. a statement that a company is pre-pared to buy another company’s shares andtake the company over � verb 1. to say thatyou are willing to pay a specific amount ofmoney for something � to offer someone

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offer document 154£100,000 for their house � She offered £10a share. 2. to say that you are willing to sellsomething � They are offering specialprices on winter holidays in the US � Weoffered the house for sale.offer documentoffer document /�ɒfə �dɒkjυmənt/ nouna formal document where a company offersto buy shares at some price as part of a take-over bidoffered marketoffered market /�ɒfəd �mɑ�kit/ noun amarket where there are more sellers thanbuyersoffer for saleoffer for sale /�ɒfə fə �seil/ noun a situa-tion in which a company advertises newshares for sale to the public as a way oflaunching itself on the Stock Exchange(NOTE: The other ways of launching a com-pany are a ‘tender’ or a ‘placing.’)offering circularoffering circular /�ɒf(ə)riŋ �s��kjυlə/noun a document which gives informationabout a company whose shares are beingsold to the public for the first timeofferorofferor /�ɒfərə/ noun a person who makesan offeroffer periodoffer period /�ɒfə �piəriəd/ noun a timeduring which a takeover bid for a companyis openoffer priceoffer price /�ɒfə prais/ noun the price atwhich investors buy new shares or units in aunit trust. The opposite, i.e. the selling price,is called the ‘bid price’, the differencebetween the two is the ‘spread’.Office of Fair TradingOffice of Fair Trading /�ɒfis əv feə�treidiŋ/ noun a department of the UK gov-ernment that protects consumers againstunfair or illegal business. Abbreviation OFTOffice of Management and BudgetOffice of Management and Budget/�ɒfis əv �m�nid mənt ən �b�d it/ nounUS the department of the US governmentthat prepares the federal budget. Abbrevia-tion OMBOffice of Thrift SupervisionOffice of Thrift Supervision /�ɒfis əv�θrift su�pə |�vi (ə)n/ noun US a departmentof the US government which regulates thesavings and loan associations. AbbreviationOTSofficial books of accountofficial books of account /ə|�fiʃ(ə)lbυks əv ə|�kaυnt/ plural noun the officialfinancial records of an institutionOfficial ListOfficial List /ə|�fiʃ(ə)l �list/ noun a dailypublication by the London Stock Exchangeof the highest and lowest prices recorded foreach share during the trading sessionofficial receiverofficial receiver /ə|�fiʃ(ə)l ri|�si�və/ nouna government official who is appointed torun a company which is in financial difficul-ties, to pay off its debts as far as possible andto close it down � The company is in the

hands of the official receiver. Also calledreceiverofficial returnofficial return /ə|�fiʃ(ə)l ri|�t��n/ noun anofficial reportoffloadoffload /ɒf|�ləυd/ verb to pass somethingwhich you do not want to someone elseoffsetoffset /ɒf|�set/ verb to balance one thingagainst another so that they cancel eachother out � to offset losses against tax �Foreign exchange losses more than offsetprofits in the domestic market. (NOTE: off-setting – offset)offset accountoffset account /�ɒfset ə|�kaυnt/ noun anaccount established to allow the grossamount of another account to be reducedoffsetting erroroffsetting error /�ɒfsetiŋ �erə/ noun anaccounting error that cancels out anothererroroffshoreoffshore /�ɒfʃɔ�/ adjective, adverb 1. onan island or in the sea near to land � an off-shore oil field � an offshore oil platform 2.on an island which is a tax haven 3. basedoutside a country, especially in a tax havenoffshore bankingoffshore banking /�ɒfʃɔ� �b�ŋkiŋ/noun banking in a tax havenoffshore finance subsidiaryoffshore finance subsidiary /�ɒfʃɔ��fain�ns səb|�sidiəri/ noun a company cre-ated in another country to handle financialtransactions, giving the owning companycertain tax and legal advantages in its homecountry (NOTE: The US term is offshorefinancial subsidiary.)offshore financial centreoffshore financial centre /�ɒfʃɔ� fai|

�n�nʃəl �sentə/ noun a country or otherpolitical unit that has banking laws intendedto attract business from industrialisednationsoffshore fundoffshore fund /�ɒfʃɔ� �f�nd/ noun a fundthat is based overseas, usually in a countrythat has less strict taxation regulationsoff-the-shelf companyoff-the-shelf company /�ɒf ðə �ʃelf�k�mp(ə)ni/ noun a company which hasalready been registered by an accountant orlawyer, and which is ready for sale to some-one who wants to set up a new companyquicklyOFTOFT abbreviation Office of Fair Tradingold age pensionold age pension /�əυld eid �penʃən/noun a state pension given to people oversome age (currently to a man who is 65 or toa woman who is 60)old age pensionerold age pensioner /�əυld eid �penʃ(ə)nə/ noun a person who receives theretirement pension. Abbreviation OAPOMBOMB abbreviation Office of Managementand Budget

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155 open-market valueombudsmanombudsman /�ɒmbυdzmən/ noun anofficial who investigates complaints by thepublic against government departments orother large organisations (NOTE: The pluralis ombudsmen.)

‘…radical changes to the disciplinary sys-tem, including appointing an ombudsmanto review cases where complainants arenot satisfied with the outcome, are pro-posed in a consultative paper the Instituteof Chartered Accountants issued lastmonth’ [Accountancy]

on accounton account phrase paid in part in advanceoncostsoncosts /�ɒnkɒsts/ plural noun businesscosts that cannot be charged directly to aparticular good or service and must beapportioned across the businesson demandon demand /�ɒn di|�mɑ�nd/ adjectiveused to describe an account from whichwithdrawals may be made without giving aperiod of noticeone-man businessone-man business /�w�n m�n�biznis/, one-man firm /�w�n m�n �f��m/,one-man company /�w�n m�n�k�mp(ə)ni/ noun a business run by oneperson alone with no staff or partnersone-offone-off /�w�n �ɒf/ adjective done or madeonly once � one-off item � one-off deal �one-off paymentone-sidedone-sided /�w�n �saidid/ adjectivefavouring one side and not the other in anegotiationone-year moneyone-year money /�w�n jiə �m�ni/ nounmoney invested for one yearopenopen /�əυpən/ adjective 1. at work, notclosed � The store is open on Sunday morn-ings. � Our offices are open from 9 to 6. �They are open for business every day of theweek. 2. ready to accept something � verb 1.to start a new business � She has opened ashop in the High Street. � We have opened abranch in London. 2. to start work, to be atwork � The office opens at 9 a.m. � We openfor business on Sundays. 3. to begin some-thing 4. to set something up or make some-thing available � to open a bank account �to open a line of credit � to open a loan 5. �shares opened lower share prices werelower at the beginning of the day’s trading

‘…after opening at 79.1 the index toucheda peak of 79.2 and then drifted to a low of78.8’ [Financial Times]

open accountopen account /�əυpən ə|�kaυnt/ noun anaccount where the supplier offers the pur-chaser credit without securityopen book managementopen book management /�əυpən �bυk�m�nid mənt/ noun a managementmethod that gives staff open access to finan-

cial and operational information, with theaim of giving everyone a stake in increasingproductionopen chequeopen cheque /�əυpən �tʃek/ noun sameas uncrossed chequeopen creditopen credit /�əυpən �kredit/ noun creditgiven to good customers without securityopen-endedopen-ended /�əυpən �endid/ adjectivewith no fixed limit or with some items notspecified � They signed an open-endedagreement. � The candidate was offered anopen-ended contract with a good careerplan. (NOTE: The US term is open-end.)open-ended creditopen-ended credit /�əυpən �endid�kredit/ noun same as revolving creditopen-ended fundopen-ended fund /�əυpən �endid �f�nd/noun a fund such as a unit trust where inves-tors buy units, the money paid beinginvested in a range of securities. This is asopposed to a closed fund, such as an invest-ment trust, where the investor buys shares inthe trust company, and receives dividends.open-ended investment companyopen-ended investment company/�əυpən �endid in |�vestmənt �k�mp(ə)ni/noun a form of unit trust, in which the inves-tor purchases shares at a single price, asopposed to the bid-offer pricing system usedby ordinary unit trusts. Abbreviation OEICopen-ended management companyopen-ended management company/�əυpən �endid �m�nid mənt�k�mp(ə)ni/ noun a company that sells unittrusts (NOTE: The US term is open-endmanagement company.)open-ended trustopen-ended trust /�əυpən �endid�tr�st/ noun a fund in which investors canfreely buy and sell units at any timeopening balanceopening balance /�əυp(ə)niŋ �b�ləns/noun a balance at the beginning of anaccounting periodopening balance sheetopening balance sheet /�əυp(ə)niŋ�b�ləns ʃi�t/ noun an account showing anorganisation’s opening balancesopening entryopening entry /�əυp(ə)niŋ �entri/ nounthe first entry in an accountopening priceopening price /�əυp(ə)niŋ �prais/ noun aprice at the start of a day’s tradingopening stockopening stock /�əυp(ə)niŋ �stɒk/ nounon a balance sheet, the closing stock at theend of one accounting period that is trans-ferred forward and becomes the openingstock in the one that follows (NOTE: The USterm is beginning inventory.)open marketopen market /�əυpən �mɑ�kit/ noun amarket where anyone can buy or sellopen-market valueopen-market value /�əυpən �mɑ�kit�v�lju�/ noun the price that an asset or secu-

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operate 156rity would realise if it was offered on a mar-ket open to alloperateoperate /�ɒpəreit/ verb to be in force �The new terms of service will operate fromJanuary 1st. � The rules operate on inlandpostal services only.

‘…the company gets valuable restaurantlocations which will be converted to thefamily-style restaurant chain that it oper-ates and franchises throughout most partsof the US’ [Fortune]

operatingoperating /�ɒpəreitiŋ/ noun the generalrunning of a business or of a machine

‘…the company blamed over-capacity andcompetitive market conditions in Europefor a £14m operating loss last year’[Financial Times]

operating activitiesoperating activities /�ɒpəreitiŋ �k |

�tivitiz/ plural noun those activities that abusiness engages in by reason of its beingthe type of business it is, as opposed to non-operating activities such as investmentoperating budgetoperating budget /�ɒpəreitiŋ �b�d it/noun a forecast of income and expenditureover a period of timeoperating budget sequenceoperating budget sequence/�ɒpəreitiŋ �b�d it �si�kwəns/ noun a partof a master budget that records the acquisi-tion and use of resourcesoperating costingoperating costing /�ɒpəreitiŋ �kɒstiŋ/noun costing which is based on the costs ofservices providedoperating costsoperating costs /�ɒpəreitiŋ kɒsts/ plu-ral noun the costs of the day-to-day activi-ties of a company. Also called operatingexpenses, running costsoperating cycleoperating cycle /�ɒpəreitiŋ �saik(ə)l/noun the time it takes for purchases of mate-rials for production to generate revenuefrom salesoperating expensesoperating expenses /�ɒpəreitiŋ ik|

�spensiz/ plural noun same as operatingcostsoperating leaseoperating lease /�ɒpəreitiŋ li�s/ noun alease which does not require the lessee com-pany to show the asset acquired under thelease in its balance sheet, but the annualrental charge for such assets must be dis-closed in a note to the accountsoperating leverageoperating leverage /�ɒpəreitiŋ�levərid / noun the ratio of a business’sfixed costs to its total costs. As the fixedcosts have to be paid regardless of output,the higher the ratio, the higher the risk oflosses in an economic downturn.operating lossoperating loss /�ɒpəreitiŋ lɒs/ noun aloss made by a company in its usual business

operating marginoperating margin /�ɒpəreitiŋ�mɑ�d in/ noun a measurement of the pro-portion of a company’s revenue that is leftover after variable costs of production havebeen metoperating performance ratiooperating performance ratio/�ɒpəreitiŋ pə|�fɔ�məns �reiʃiəυ/ noun aratio of profitability to salesoperating profitoperating profit /�ɒpəreitiŋ �prɒfit/noun the difference between a company’srevenues and any related costs and expenses,not including income or expenses from anysources other than its normal methods ofproviding goods or a serviceoperating revenueoperating revenue /�ɒpəreitiŋ�revənju�/ noun the amount of income gen-erated as a result of a company’s normalbusiness operationsoperating riskoperating risk /�ɒpəreitiŋ risk/ noun therisk of having a high operating leverageoperating statementoperating statement /�ɒpəreitiŋ�steitmənt/ noun a financial statementwhich shows a company’s expenditure andincome, and consequently its final profit orloss � The operating statement shows unex-pected electricity costs. � Let’s look at theoperating statement to find last month’sexpenditure.operationoperation /�ɒpə|�reiʃ(ə)n/ noun 1. anactivity or a piece of work, or the task of run-ning something � the company’s operationsin West Africa � He heads up the operationsin Northern Europe. 2. � in operationworking or being used � The system will bein operation by June. � The new systemcame into operation on January 1st.

‘…a leading manufacturer of business,industrial and commercial productsrequires a branch manager to head up itsmid-western Canada operations based inWinnipeg’ [Globe and Mail (Toronto)]

operationaloperational /�ɒpə|�reiʃ(ə)nəl/ adjectivereferring to the day-to-day activities of abusiness or to the way in which something isrunoperational auditoperational audit /�ɒpəreiʃ(ə)nəl�ɔ�dit/ noun a systematic review of the sys-tems and procedures used in an organisationin order to assess whether they are being car-ried out efficiently and effectively. Alsoknown as management audit, operationsauditoperational budgetoperational budget /�ɒpəreiʃ(ə)nəl�b�d it/ noun same as operating budgetoperational costsoperational costs /�ɒpəreiʃ(ə)nəl�kɒsts/ plural noun the costs of running abusiness

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157 ordinarily residentoperational gearingoperational gearing /�ɒpəreiʃ(ə)nəl��iəriŋ/ noun a situation where a companyhas high fixed costs which are funded byborrowingsoperational planningoperational planning /�ɒpəreiʃ(ə)nəl�pl�niŋ/ noun the planning of how a busi-ness is to be runoperational researchoperational research /�ɒpəreiʃ(ə)nəl ri|

�s��tʃ/ noun a study of a company’s way ofworking to see if it can be made more effi-cient and profitableoperations reviewoperations review /�ɒpə|�reiʃ(ə)nz ri|

�vju�/ noun an act of examining the way inwhich a company or department works tosee how it can be made more efficient andprofitableoperation timeoperation time /�ɒpə|�reiʃ(ə)n taim/noun the time taken for a business operationto be completedopinionopinion /ə|�pinjən/ noun a piece of expertadvice � the lawyers gave their opinion � toask an adviser for his opinion on a caseopportunity costopportunity cost /�ɒpə|�tju�niti kɒst/noun 1. the cost of a business initiative interms of profits that could have been gainedthrough an alternative plan � It’s a goodinvestment plan and we will not be deterredby the opportunity cost. Also called alterna-tive cost 2. the value of another method ofinvestment which could have been used,instead of the one adoptedopportunity cost approachopportunity cost approach /�ɒpə|

�tju�niti kɒst ə|�prəυtʃ/ noun the use of theconcept of opportunity cost in business deci-sion-makingoptimal capital structureoptimal capital structure /�ɒptim(ə)l�k�pit(ə)l �str�ktʃə/ noun the optimalrange for a company’s capital structureoptimiseoptimise /�ɒptimaiz/, optimize verb toallocate such things as resources or capitalas efficiently as possibleoptimumoptimum /�ɒptiməm/ adjective best � Themarket offers optimum conditions for sales.optionoption /�ɒpʃən/ noun the opportunity tobuy or sell something, such as a security,within a fixed period of time at a fixed price� to take up an option or to exercise anoption to accept the option which has beenoffered and to put it into action � They exer-cised their option or they took up theiroption to acquire sole marketing rights tothe product.option contractoption contract /�ɒpʃən �kɒntr�kt/noun a right to buy or sell a specific numberof shares at a fixed priceoption dealingoption dealing /�ɒpʃən �di�liŋ/ noun theactivity of buying and selling share options

option tradingoption trading /�ɒpʃən �treidiŋ/ nounthe business of buying and selling shareoptionsorderorder /�ɔ�də/ noun 1. the way in whichrecords such as filing cards or invoices arearranged � in alphabetical or numericalorder 2. an official request for goods to besupplied � to give someone an order or toplace an order with someone for twenty fil-ing cabinets � The management ordered theworkforce to leave the factory. � to fill anorder, to fulfil an order to supply itemswhich have been ordered � We are so under-staffed we cannot fulfil any more ordersbefore Christmas. � items available toorder only items which will be manufac-tured only if someone orders them � onorder ordered but not delivered � This itemis out of stock, but is on order. 3. a documentwhich allows money to be paid to someone� She sent us an order on the CharteredBank. 4. (Stock Exchange) an instruction toa broker to buy or sell 5. � pay to Mr Smithor order pay money to Mr Smith or as heorders � pay to the order of Mr Smith paymoney directly to Mr Smith or to his account� verb to ask for goods to be supplied �They ordered a new Rolls Royce for the man-aging director.order bookorder book /�ɔ�də bυk/ noun a bookwhich records orders receivedorder-driven systemorder-driven system /�ɔ�də �driv(ə)n�sistəm/, order-driven market /�ɔ�də�driv(ə)n �mɑ�kit/ noun a price system on astock exchange where prices vary accordingto the level of orders. Compare quote-driven systemorder entryorder entry /�ɔ�də �entri/ noun the proc-ess of entering information on orders into aprocessing systemorder fulfilmentorder fulfilment /�ɔ�də fυl|�filmənt/noun the process of supplying items whichhave been orderedordering costsordering costs /�ɔ�dəriŋ kɒsts/ pluralnoun the total of the costs involved in mak-ing a purchase order, including telephoneand stationery costsorder processingorder processing /�ɔ�də �prəυsesiŋ/noun the work of dealing with ordersorder receipt timeorder receipt time /�ɔ�də ri |�si�t �taim/noun the interval between the receipt of anorder and the point at which it is ready to bedespatchedordinarily residentordinarily resident /�ɔ�d(ə)n(ə)rili�rezid(ə)nt/ adjective normally living in acountry � Mr Schmidt is ordinarily residentin Canada

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ordinary activities 158ordinary activitiesordinary activities /�ɔ�d(ə)n(ə)ri �k|

�tivitiz/ plural noun the usual trading of acompany, that is, what the company usuallydoesordinary interestordinary interest /�ɔ�d(ə)n(ə)ri �intrəst/noun annual interest calculated on the basisof 360 days, as opposed to ‘exact interest’which is calculated on 365 daysordinary resolutionordinary resolution /�ɔ�d(ə)n(ə)ri �rezə|

�lu�ʃ(ə)n/ noun a resolution put before anAGM, usually referring to some general pro-cedural matter, and which requires a simplemajority of votes to be acceptedordinary share capitalordinary share capital /�ɔ�d(ə)n(ə)ri�ʃeə �k�pit(ə)l/ noun the capital of a com-pany in the form of money paid for ordinarysharesordinary shareholderordinary shareholder /�ɔ�d(ə)n(ə)ri�ʃeəhəυldə/ noun a person who owns ordi-nary shares in a companyordinary sharesordinary shares /�ɔ�d(ə)n(ə)ri ʃeəz/ plu-ral noun shares that entitle the holder toreceive a dividend after the dividend on pref-erence shares has been paid (NOTE: The USterm is common stock.)ordinary stockordinary stock noun same as ordinarysharesorganic growthorganic growth /ɔ�|���nik ��rəυθ/ nounsame as internal growthorganisationorganisation /�ɔ��ənai|�zeiʃ(ə)n/,organization noun 1. a way of arrangingsomething so that it works efficiently � theorganisation of the head office into depart-ments � The chairman handles the organi-sation of the AGM. � The organisation ofthe group is too centralised to be efficient. 2.a group or institution which is arranged forefficient work

‘…working with a client base whichincludes many major commercial organi-zations and nationalized industries’[Times]

organisationalorganisational /�ɔ��ənai|�zeiʃ(ə)n(ə)l/,organizational adjective referring to theway in which something is organised � Thepaper gives a diagram of the company’sorganisational structure.organisational chartorganisational chart /�ɔ��ənai|

�zeiʃ(ə)n(ə)l tʃɑ�t/ noun a chart that showsthe relationships of people in an organisa-tion in terms of their areas of authority andresponsibilityorganisation and methodsorganisation and methods/�ɔ��ənaizeiʃ(ə)n ən �meθədz/ noun aprocess of examining how an office works,and suggesting how it can be made moreefficient. Abbreviation O & M

organisation chartorganisation chart /�ɔ��ənai |�zeiʃ(ə)ntʃɑ�t/ noun same as organisational chartorganisation costsorganisation costs /�ɔ��ənai |�zeiʃ(ə)n�kɒsts/ plural noun the costs associated withsetting up a business, e.g. legal fees andbusiness filing feesorganiseorganise /�ɔ��ənaiz/, organize verb 1. toset up a system for doing something � Thecompany is organised into six profit centres.� The group is organised by sales areas. 2.to arrange something so that it works

‘…we organize a rate with importers whohave large orders and guarantee themspace at a fixed rate so that they can plantheir costs’ [Lloyd’s List]

original costoriginal cost /ə|�rid ən(ə)l �kɒst/ nounthe total cost of acquiring an assetoriginal entryoriginal entry /ə|�rid ən(ə)l �entri/ nounthe act of recording a transaction in a journalother capitalother capital /��ðə �k�pit(ə)l/ noun cap-ital that is not listed in specific categoriesother long-term capitalother long-term capital /��θə �lɒŋ t��m�k�pit(ə)l/ noun long-term capital that isnot listed in specific categoriesother long-term liabilitiesother long-term liabilities /��θə �lɒŋt��m �laiə|�bilitiz/ plural noun obligationswith terms greater than one year on whichthere is no charge for interest in the next yearother short-term capitalother short-term capital /��θə �ʃɔ�tt��m �k�pit(ə)l/ noun short-term capitalthat is not listed in specific categoriesOTSOTS abbreviation Office of Thrift Supervi-sionoutout /aυt/ adverb � we are £20,000 out inour calculations we have £20,000 too muchor too littleoutgoingsoutgoings /�aυt�əυiŋz/ plural nounmoney which is paid outoutlayoutlay /�aυtlei/ noun money spent,expenditureoutlookoutlook /�aυtlυk/ noun a view of what isgoing to happen in the future � The eco-nomic outlook is not good. � The stock mar-ket outlook is worrying.

‘American demand has transformed theprofit outlook for many European manu-facturers’ [Duns Business Month]

out-of-date chequeout-of-date cheque /�aυt əv deit �tʃek/noun a cheque which has not been clearedbecause its date is too old, normally morethan six monthsout of pocketout of pocket /�aυt əv �pɒkit/ adjective,adverb having paid out money personally �The deal has left me out of pocket.out-of-pocket expensesout-of-pocket expenses /�aυt əv�pɒkit ik |�spensiz/ plural noun an amountof money paid back to an employee who has

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159 overduespent his or her personal money on companybusinessoutputoutput /�aυtpυt/ noun the amount which acompany, person, or machine produces �Output has increased by 10%. � 25% of ouroutput is exported.

‘…crude oil output plunged during the lastmonth and is likely to remain near itspresent level for the near future’ [WallStreet Journal]

output per houroutput per hour /�aυtpυt pər �aυə/ nounthe amount of something produced in onehouroutput taxoutput tax /�aυtpυt t�ks/ noun VATcharged by a company on goods or servicessold, and which the company pays to thegovernmentoutrightoutright /�aυt|�rait/ adverb, adjective com-pletelyoutside directoroutside director /�aυtsaid dai|�rektə/noun same as non-executive directoroutsourceoutsource /�aυtsɔ�s/ verb to use a sourceoutside a company or business to do thework that is needed

‘The services unit won outsourcing con-tracts from the Environmental ProtectionAgency and NASA, which the companysays played a significant part in theincrease.’ [InformationWeek]

outsourcingoutsourcing /�aυtsɔ�siŋ/ noun 1. thepractice of obtaining services from special-ist bureaux or other companies, rather thanemploying full-time staff members to pro-vide them 2. the transfer of work previouslydone by employees of an organisation toanother organisation, usually one that spe-cialises in that type of work (NOTE: Thingsthat have usually been outsourced in thepast include legal services, transport, cater-ing, and security, but nowadays IT services,training, and public relations are oftenadded to the list.)

‘…organizations in the public and privatesectors are increasingly buying in special-ist services – or outsourcing – allowingthem to cut costs and concentrate on theircore business activities’ [Financial Times]

outstandingoutstanding /aυt|�st�ndiŋ/ adjective notyet paid or completedoutstanding chequeoutstanding cheque /aυt|�st�ndiŋ�tʃek/ noun a cheque which has been writ-ten and therefore has been entered in thecompany’s ledgers, but which has not beenpresented for payment and so has not beendebited from the company’s bank accountoverabsorbed overheadoverabsorbed overhead/�əυvərəbzɔ�bd �əυvəhed/ noun an

absorbed overhead which ends up by beinghigher than the actual overhead incurredoverabsorptionoverabsorption /�əυvərəb|�zɔ�pʃ(ə)n/noun a situation where the actual overheadincurred is less than the absorbed overhead.Opposite underabsorptionoveralloverall /�əυvər|�ɔ�l/ adjective covering orincluding everything � the companyreported an overall fall in profits the com-pany reported a general fall in profitsoverall balance of paymentsoverall balance of payments/�əυvərɔ�l �b�ləns əv �peimənts/ noun thetotal of current and long-term balance ofpaymentsoverall capitalisation rateoverall capitalisation rate /�əυvərɔ�l�k�pit(ə)lai|�zeiʃ(ə)n �reit/ noun net oper-ating income, other than debt service,divided by valueoverall returnoverall return /�əυvərɔ�l ri |�t��n/ nounthe aggregate of all the dividends receivedover an investment’s life together with itscapital gain or loss at the date of its realisa-tion, calculated either before or after tax. Itis one of the ways an investor can look at theperformance of an investment.overborrowedoverborrowed /�əυvə|�bɒrəυd/ adjectivereferring to a company which has very highborrowings compared to its assets, and hasdifficulty in meeting its interest paymentsovercapitalisedovercapitalised /�əυvə|�k�pitəlaizd/,overcapitalized adjective referring to acompany with more capital than it needsoverchargeovercharge noun /�əυvətʃɑ�d / a chargewhich is higher than it should be � to payback an overcharge � verb /�əυvə|�tʃɑ�d /to ask someone for too much money � Theyovercharged us for our meals. � We askedfor a refund because we’d been over-charged.overdraftoverdraft /�əυvədrɑ�ft/ noun 1. anamount of money which a company or per-son can withdraw from a bank account, withthe bank’s permission, despite the fact thatthe account is empty � The bank hasallowed me an overdraft of £5,000. Abbrevi-ation O/D (NOTE: The US term is overdraftprotection.) � we have exceeded our over-draft facilities we have taken out more thanthe overdraft allowed by the bank 2. a nega-tive amount of money in an account, i.e. asituation where a cheque is more than themoney in the account on which it is drawnoverdrawoverdraw /�əυvə|�drɔ�/ verb to take outmore money from a bank account than thereis in itoverdueoverdue /�əυvə|�dju�/ adjective having notbeen paid on time

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overdue account 160overdue accountoverdue account /�əυvədju� ə|�kaυnt/noun an account whose holder owes moneythat should have been paid earlieroverestimateoverestimate /�əυvər|�estimeit/ verb tothink something is larger or worse than itreally is � She overestimated the amount oftime needed to fit out the factory. � Theyoverestimated the costs of moving the officesto central London.overgearedovergeared /�əυvə|��iəd/ adjective refer-ring to a company which has high borrow-ings in comparison to its assetsoverhangoverhang /�əυvəh�ŋ/ noun a large quan-tity of shares or of a commodity or of unsoldstock available for sale, which has the effectof depressing the market priceoverhead absorption rateoverhead absorption rate /�əυvəhedəb|�zɔ�pʃən reit/ noun a rate at which pro-duction costs are increased to absorb higheroverhead costsoverhead budgetoverhead budget /�əυvəhed �b�d it/noun a plan of probable overhead costsoverhead cost varianceoverhead cost variance /�əυvəhedkɒst �veəriəns/ noun the differencebetween the overhead cost absorbed and theactual overhead costs incurred, both fixedand variableoverhead expenditure varianceoverhead expenditure variance/�əυvəhed ik|�spenditʃə �veəriəns/ nounthe difference between the budgeted over-head costs and the actual expenditureoverheadsoverheads /�əυvəhedz/ plural noun theindirect costs of the day-to-day running of abusiness, i.e. not money spent of producinggoods, but money spent on such things asrenting or maintaining buildings andmachinery � The sales revenue covers themanufacturing costs but not the overheads.(NOTE: The US term is overhead.)overlap profitoverlap profit /�əυvəl�p �prɒfit/ noun aprofit which occurs in two accounting peri-ods, i.e. when two accounting periods over-lap, and on which overlap relief can beclaimedoverpaidoverpaid /�əυvə|�peid/ adjective paid toomuch � Our staff are overpaid and under-worked.overpayoverpay /�əυvə|�pei/ verb to pay too muchto someone or for something � We overpaidthe invoice by $245.overpaymentoverpayment /�əυvə|�peimənt/ noun anact of paying too muchoverrideroverrider /�əυvəraidə/, overriding com-mission /�əυvəraidiŋ kə|�miʃ(ə)n/ noun aspecial extra commission which is above allother commissionsoverseasoverseas /�əυvəsi�z/; /�əυvə|�si�z/ nounforeign countries � The profits from over-

seas are far higher than those of the homedivision.overseas divisionoverseas division /�əυvəsi�z di|

�vi (ə)n/ noun the section of a companydealing with trade with other countriesoverseas fundsoverseas funds /�əυvə|�si�z f�ndz/ plu-ral noun investment funds based in othercountriesoverseas marketsoverseas markets /�əυvəsi�z �mɑ�kits/plural noun markets in foreign countriesoverseas taxationoverseas taxation /�əυvəsi�z t�k|

�seiʃ(ə)n/ noun � double taxation, doubletaxation agreementoverseas tradeoverseas trade /�əυvəsi�z �treid/ nounsame as foreign tradeoverspendoverspend /�əυvə|�spend/ verb to spendtoo much � to overspend your budget tospend more money than is allowed in yourbudgetoverspendingoverspending /�əυvə|�spendiŋ/ noun theact of spending more than is allowed � Theboard decided to limit the overspending bythe production departments.overstateoverstate /�əυvə|�steit/ verb to enter in anaccount a figure that is higher than the actualfigure � the company accounts overstate thereal profitoverstatementoverstatement /�əυvə|�steitmənt/ nounthe fact of entering in an account a figurethat is higher than the actual figureoverstockoverstock /�əυvə |�stɒk/ verb to have abigger stock of something than is needed

‘Cash paid for your stock: any quantity,any products, overstocked lines, factoryseconds’ [Australian Financial Review]

overstocksoverstocks /�əυvəstɒks/ plural noun USa surplus of stock � We will have to sell offthe overstocks to make room in the ware-house.over-the-counter marketover-the-counter market /�əυvə ðə�kaυntə �mɑ�kit/ noun a secondary marketin shares which are not listed on the mainStock Exchangeover-the-counter salesover-the-counter sales /�əυvə ðə�kaυntə �seilz/ plural noun the legal sellingof shares that are not listed in the officialStock Exchange list, usually carried out bytelephoneovertimeovertime /�əυvətaim/ noun hours workedin addition to your usual working hours � towork six hours’ overtime � The overtimerate is one and a half times normal pay.overtime payovertime pay /�əυvətaim pei/ noun payfor extra time workedovertradingovertrading /�əυvə|�treidiŋ/ noun a situa-tion where a company increases sales and

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161 owners’ equityproduction too much and too quickly, so thatit runs short of cashovervalueovervalue /�əυvə|�v�lju�/ verb to give ahigher value to something or someone thanis right � these shares are overvalued at£1.25 the shares are worth less than the£1.25 for which they are selling

‘…the fact that sterling has been overval-ued for the past three years shows that cur-rencies can remain above their fair valuefor very long periods’ [Investors Chroni-cle]


owe /əυ/ verb to have to pay money � Heowes the bank £250,000. � they still owethe company for the stock they purchasedlast year they have still not paid for thestockowner-occupier

owner-occupier /�əυnər �ɒkjυpaiə/noun a person who owns the property inwhich he or she livesowners’ equity

owners’ equity /�əυnəz �ekwiti/ nounthe value of the shares in a company ownedby the owners of the company

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Ppackage dealpackage deal /�p�kid �di�l/ noun anagreement which covers several differentthings at the same time � They agreed apackage deal which involves the construc-tion of the factory, training of staff, and pur-chase of the product.paidpaid /peid/ adjective 1. for which moneyhas been given � The invoice is marked‘paid’. 2. referring to an amount which hasbeen settled � The order was sent carriagepaid.paid-in capitalpaid-in capital /�peid in �k�pit(ə)l/noun capital in a business which has beenprovided by its shareholders, usually in theform of payments for shares above their parvaluepaid-up sharespaid-up shares /�peid �p �ʃeəz/ nounshares which have been completely paid forby the shareholderspaperpaper /�peipə/ noun 1. a document whichcan represent money, e.g. a bill of exchangeor a promissory note 2. shares in the form ofshare certificatespaper gainpaper gain /�peipə ��ein/ noun same aspaper profit

‘…the profits were tax-free and the inter-est on the loans they incurred qualified forincome tax relief; the paper gains wererarely changed into spending money’[Investors Chronicle]

paper losspaper loss /�peipə �lɒs/ noun a loss madewhen an asset has fallen in value but has notbeen sold. Also called unrealised losspaper millionairepaper millionaire /�peipə �miljə|�neə/noun a person who owns shares which, ifsold, would be worth one million pounds ordollarspaper moneypaper money /�peipə �m�ni/ noun pay-ments in paper form, e.g., chequespaper offerpaper offer /�peipə �ɒfə/ noun a takeoverbid where the purchasing company offers itsshares in exchange for shares in the com-pany being taken over, as opposed to a cashofferpaper profitpaper profit /�peipə �prɒfit/ noun a profiton an asset which has increased in price but

has not been sold � He is showing a paperprofit of £25,000 on his investment. Alsocalled paper gain, unrealised profitparpar /pɑ�/ adjective equal, at the same priceparallel economyparallel economy /�p�rəlel i |�kɒnəmi/noun same as black economyparallel loanparallel loan /�p�rəlel �ləυn/ noun sameas back-to-back loanparameterparameter /pə|�r�mitə/ noun a fixed limit� The budget parameters are fixed by thefinance director. � Spending by each depart-ment has to fall within agreed parameters.parcel of sharesparcel of shares /�pɑ�s(ə)l əv �ʃeəz/noun a fixed number of shares which aresold as a group � The shares are on offer inparcels of 50.parent companyparent company /�peərənt �k�mp(ə)ni/noun a company which owns more than50% of the shares of another companyPareto’s LawPareto’s Law /pə|�ri�təυz lɔ�/, ParetoEffect /pə|�ri�təυ i|�fekt/ noun the theorythat incomes are distributed in the same wayin all countries, whatever tax regime is inforce, and that a small percentage of a totalis responsible for a large proportion of valueor resources. Also called eighty/twenty lawpari passupari passu /�p�ri �p�su�/ adverb a Latinphrase meaning ‘equally’ � The new shareswill rank pari passu with the existing ones.parityparity /�p�riti/ noun 1. the state of beingequal � the pound fell to parity with thedollar the pound fell to a point where onepound equalled one dollar 2. a situationwhen the price of a commodity, foreign cur-rency or security is the same in differentmarkets

‘…the draft report on changes in the inter-national monetary system casts doubtabout any return to fixed exchange-rateparities’ [Wall Street Journal]

Parliamentary Public Accounts CommitteeParliamentary Public AccountsCommittee /�pɑ�ləment(ə)ri �p�blik ə|

�kaυnts kə |�miti/ noun a UK parliamentarycommittee established in 1961 to examinethat the sums of money agreed by Parlia-ment for public spending are properly spent

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163 paypart exchangepart exchange /�pɑ�t iks|�tʃeind / nounthe act of giving an old product as part of thepayment for a new one � to take a car inpart exchangepartialpartial /�pɑ�ʃ(ə)l/ adjective not completeparticipateparticipate /pɑ� |�tisipeit/ verb to take partin an activity or enterprise � The staff areencouraged to participate actively in thecompany’s decision-making processes.participating preference sharesparticipating preference shares /pɑ�|

�tisipeitiŋ �pref(ə)rəns ʃeəz/, participat-ing preferred stock /pɑ� |�tisipeitiŋ pri |

�f��d �stɒk/ plural noun preference shareswhich get an extra bonus dividend if com-pany profits reach a high levelparticipative budgetingparticipative budgeting /pɑ�|�tisipətiv�b�d itiŋ/ noun a budgeting system inwhich all budget holders are given theopportunity to participate in setting theirown budgets. Also called bottom-up budg-etingpartly-paid capitalpartly-paid capital /�pɑ�tli peid�k�pit(ə)l/ noun a capital which representspartly-paid sharespartly-paid up sharespartly-paid up shares /�pɑ�tli peid �p�ʃeəz/, partly-paid shares /�pɑ�tli peid�ʃeəz/ plural noun shares in which the share-holders have not paid the full face valuepartnerpartner /�pɑ�tnə/ noun a person whoworks in a business and has an equal share init with other partners � I became a partnerin a firm of solicitors.partnershippartnership /�pɑ�tnəʃip/ noun an unreg-istered business where two or more people(but not more than twenty) share the risksand profits according to a partnership agree-ment � to go into partnership with someone� to join with someone to form a partner-shippartnership accountspartnership accounts /�pɑ�tnəʃip ə|

�kaυnts/ plural noun the capital and currentaccounts of each partner in a partnership, orthe accounts recording the partnership’sbusiness activitiespartnership agreementpartnership agreement /�pɑ�tnəʃip ə|

��ri�mənt/ noun a document setting up apartnership, giving the details of the busi-ness and the amount each partner is contrib-uting to it. Also called articles of partner-shippart-ownerpart-owner /�pɑ�t �əυnə/ noun a personwho owns something jointly with one ormore other people � I am part-owner of therestaurant.part-ownershippart-ownership /�pɑ�t �əυnəʃip/ noun asituation where two or more persons own thesame property

part paymentpart payment /�pɑ�t �peimənt/ noun apartial payment that leaves a balance to payat some future time � I gave him £250 aspart payment for the car.part-timepart-time /�pɑ�t �taim/ adjective, adverbnot working for the whole working week �a part-time employeepartyparty /�pɑ�ti/ noun a person or organisationinvolved in a legal dispute or legal agree-ment � How many parties are there to thecontract? � The company is not a party tothe agreement.par valuepar value /�pɑ� �v�lju�/ noun same asface valuepassbookpassbook /�pɑ�sbυk/ noun same as bankbook

‘…instead of customers having transac-tions recorded in their passbooks, they willpresent plastic cards and have the transac-tions printed out on a receipt’ [AustralianFinancial Review]

patentpatent /�peitənt, �p�tənt/ noun an offi-cial document showing that a person has theexclusive right to make and sell an invention� to take out a patent for a new type of lightbulb � to apply for a patent for a new inven-tion � ‘patent applied for’, ‘patent pend-ing’ words on a product showing that theinventor has applied for a patent for itpatent agentpatent agent /�peitənt �eid ənt/ noun aperson who advises on patents and appliesfor patents on behalf of clientspatent officepatent office /�peitənt �ɒfis/ noun a gov-ernment office which grants patents andsupervises thempatent rightspatent rights /�peitənt raits/ plural nounthe rights which an inventor holds becauseof a patentpaternity leavepaternity leave /pə|�t��niti li�v/ noun ashort period of leave given to a father to beaway from work when his partner has a babypathfinder prospectuspathfinder prospectus /�pɑ�θfaindəprə|�spektəs/ noun a preliminary prospec-tus about a company which is going to belaunched on the Stock Exchange, sent topotential major investors before the issuedate, giving details of the company’s back-ground, but not giving the price at whichshares will be soldpaypay /pei/ noun a salary or wages, moneygiven to someone for regular work � verb 1.to give money to buy an item or a service �to pay £1,000 for a car � How much did youpay to have the office cleaned? (NOTE: pay-ing – paid) � ‘pay cash’ words written on acrossed cheque to show that it can be paid incash if necessary 2. to produce or distributemoney (NOTE: paying – paid) 3. to give an

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payable 164employee money for work done � Theworkforce has not been paid for three weeks.� We pay good wages for skilled workers. �How much do they pay you per hour? (NOTE:paying – paid) � to be paid at pieceworkrates to get money for each piece of workfinished 4. to give money which is owed orwhich has to be paid � He was late payingthe bill. � We phoned to ask when they weregoing to pay the invoice. � You will have topay duty on these imports. � She pays tax atthe highest rate. (NOTE: paying – paid) �please pay the sum of £10 please give £10in cash or by cheque

‘…recession encourages communicationnot because it makes redundancies easier,but because it makes low or zero payincreases easier to accept’ [Economist]‘…the yield figure means that if you buythe shares at their current price you will begetting 5% before tax on your money if thecompany pays the same dividend as in itslast financial year’ [Investors Chronicle]

pay back phrasal verb to give money backto someone � Banks are warning studentsnot to take out loans which they cannot payback. � I lent him £50 and he promised topay me back in a month. � She has neverpaid me back the money she borrowed.pay off phrasal verb 1. to finish payingmoney which is owed for something � Hewon the lottery and paid off his mortgage. �She is trying to pay off the loan by monthlyinstalments. 2. to terminate somebody’s em-ployment and pay all wages that are due �When the company was taken over the facto-ry was closed and all the employees werepaid off.pay out phrasal verb to give money � Thecompany pays out thousands of pounds inlegal fees. � We have paid out half our prof-its in dividends.pay up phrasal verb to give money which isowed � The company only paid up when wesent them a letter from our solicitor. � Shefinally paid up six months late.payable

payable /�peiəb(ə)l/ adjective due to bepaidpayable to order

payable to order /�peiəb(ə)l tə �ɔ�də/adjective words written on a bill ofexchange or cheque to indicate that it maybe transferredpayback

payback /�peib�k/ noun 1. the act of pay-ing back money which has been borrowed 2.the time required for the cash inflows from acapital investment project to equal the cashoutflows

payback clausepayback clause /�peib�k klɔ�z/ noun aclause in a contract which states the termsfor repaying a loanpayback periodpayback period /�peib�k �piəriəd/ noun1. a period of time over which a loan is to berepaid or an investment is to pay for itself 2.the length of time it will take to earn backthe money invested in a projectpay daypay day /�pei dei/ noun a day on whichwages are paid to employees, usually Fridayfor employees paid once a week and duringthe last week of the month for employeeswho are paid once a monthpay differentialspay differentials /�pei difə |�renʃəlz/ plu-ral noun the difference in salary betweenemployees in similar types of jobs. Alsocalled salary differentials, wage differen-tialspaydownpaydown /�peidaυn/ noun a repayment ofpart of a sum which has been borrowedpayeepayee /pei |�i�/ noun a person who receivesmoney from someone, or the person whosename is on a chequepayerpayer /�peiə/ noun a person who givesmoney to someonepay hikepay hike /�pei haik/ noun an increase insalarypayingpaying /�peiiŋ/ adjective 1. making aprofit � It is a paying business. 2. producingmoney, source of money � noun the act ofgiving moneypaying agentpaying agent /�peiiŋ �eid ənt/ noun abank which pays dividend or interest to abondholderpaying-in bookpaying-in book /�peiiŋ �in bυk/ noun abook of forms for paying money into a bankaccount or a building society accountpaying-in slippaying-in slip /�peiiŋ �in slip/ noun aprinted form which is filled in when moneyis being deposited in a bank (NOTE: The USterm is deposit slip.)paymasterpaymaster /�peimɑ�stə/ noun the personresponsible for paying an organisation’semployeespaymentpayment /�peimənt/ noun 1. the act ofgiving money in exchange for goods or aservice � We always ask for payment in cashor cash payment and not payment by cheque.� The payment of interest or the interestpayment should be made on the 22nd of eachmonth. 2. money paidpayment termspayment terms /�peimənt t��mz/ pluralnoun the conditions laid down by a businessregarding when it should be paid for goodsor services that it supplies, e.g. cash withorder, payment on delivery, or paymentwithin a particular number of days of theinvoice date

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165 pension fundpay negotiationspay negotiations /�pei ni�əυʃi|

�eiʃ(ə)nz/, pay talks /�pei tɔ�ks/ pluralnoun discussions between management andemployees about pay increasespayoffpayoff /�peiɒf/ noun money paid to finishpaying something which is owed, such asmoney paid to an employee when his or heremployment is terminated

‘…the finance director of the group is toreceive a payoff of about £300,000 afterdeciding to leave the company and pursueother business opportunities’ [Times]

payoutpayout /�peiaυt/ noun money paid to helpa company or person in difficulties, a sub-sidy � The company only exists on payoutsfrom the government.

‘…after a period of recession followed bya rapid boost in incomes, many tax payersembarked upon some tax planning to min-imize their payouts’ [Australian FinancialReview]

payout ratiopayout ratio /�peiaυt �reiʃiəυ/ noun thepercentage of a company’s earnings that itpays out in dividends (NOTE: The opposite isdividend cover.)pay packetpay packet /�pei �p�kit/ noun wages orsalary, or an envelope containing cash wagesand a pay slippay reviewpay review /�pei ri |�vju�/ noun an occa-sion when an employee’s salary is consid-ered and usually increased � I’m soon duefor a pay review and hope to get a rise.pay risepay rise /�pei raiz/ noun an increase in paypayrollpayroll /�peirəυl/ noun 1. the list of peopleemployed and paid by a company � Thecompany has 250 on the payroll. 2. themoney paid by a company in salaries � Theoffice has a weekly payroll of £10,000.payroll costspayroll costs /�peirəυl kɒsts/ pluralnoun the running costs of payroll adminis-tration, as well as the actual salaries them-selvespayroll giving schemepayroll giving scheme /�peirəυl ��iviŋ�ski�m/ noun a scheme by which anemployee pays money to a charity directlyout of his or her salary. The money isdeducted by the employer and paid to thecharity; the employee gets tax relief on suchdonations.payroll ledgerpayroll ledger /�peirəυl �led ə/ noun alist of staff and their salariespayroll registerpayroll register /�peirəυl �red istə/noun a central register of payroll informa-tionpayroll taxpayroll tax /�peirəυl t�ks/ noun a tax onthe people employed by a companypay scalepay scale /�pei skeil/ noun a hierarchy ofwage levels, typically varying according to

job title, salary or length of service. Alsocalled salary scale, wage scalepay slippay slip /�pei slip/, pay statement /�pei�steitmənt/ noun a piece of paper showingthe full amount of an employee’s pay, andthe money deducted as tax, pension andNational Insurance contributionspay thresholdpay threshold /�pei �θreʃhəυld/ noun apoint at which pay increases because of athreshold agreementPBITPBIT abbreviation profit before interest andtaxP/CP/C abbreviation petty cashP/EP/E abbreviation price/earningspecuniarypecuniary /pi |�kju�niəri/ adjective refer-ring to moneypegpeg /pe�/ verb to maintain or fix somethingat a specific levelpenalisepenalise /�pi�nəlaiz/, penalize verb topunish or fine someone � to penalise a sup-plier for late deliveries � They were penal-ised for bad time-keeping.penaltypenalty /�pen(ə)lti/ noun 1. a punishment,often a fine, which is imposed if somethingis not done or is done incorrectly or illegally2. an arbitrary pre-arranged sum thatbecomes payable if one party breaks a termof a contract or an undertaking. The mostcommon penalty is a high rate of interest onan unauthorised overdraft.penetration pricingpenetration pricing /�peni|�treiʃ(ə)n�praisiŋ/ noun the practice of pricing aproduct low enough to achieve market pene-tration � Penetration pricing is helping usacquire a bigger market share at the expenseof short-term profits.pensionpension /�penʃən/ noun money paid regu-larly to someone who no longer workspensionablepensionable /�penʃənəb(ə)l/ adjectiveable to receive a pensionpensionable earningspensionable earnings /�penʃənəb(ə)l���niŋz/ plural noun earnings being receivedat the moment of retirement, on which thepension is calculatedpension contributionspension contributions /�penʃənkɒntri|�bju�ʃ(ə)nz/ plural noun money paidby a company or employee into a pensionfundpension entitlementpension entitlement /�penʃən in|

�tait(ə)lmənt/ noun the amount of pensionwhich someone has the right to receive whenhe or she retirespensionerpensioner /�penʃənə/ noun a person whoreceives a pensionpension fundpension fund /�penʃən f�nd/ noun alarge sum of money made up of contribu-tions from employees and their employer

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pension funds 166which provides pensions for retired employ-eespension fundspension funds /�penʃən f�ndz/ pluralnoun investments managed by pension com-panies to produce pensions for investorspension incomepension income /�penʃən �ink�m/ nounincome which you receive from a pensionschemepension schemepension scheme /�penʃən ski�m/, pen-sion plan /�penʃən pl�n/ noun an arrange-ment by which an employer and, usually, anemployee pay into a fund that is invested toprovide the employee with a pension onretirementPEPPEP abbreviation Personal Equity Planperper /p��, pə/ preposition 1. � as peraccording to 2. for each � we pay £10 perhour we pay £10 for each hour worked �the earnings per share the dividendreceived for each share � the average salesper representative the average salesachieved by one representative

‘…a 100,000 square-foot warehouse gen-erates $600 in sales per square foot ofspace’ [Duns Business Month]

PERPER abbreviation price/earnings ratioper annumper annum /pər ��nəm/ adverb in a year� What is their turnover per annum? �What is his total income per annum? � Sheearns over £100,000 per annum.P/E ratioP/E ratio /�pi� �i� �reiʃiəυ/ noun same asprice/earnings ratioper capitaper capita /pə �k�pitə/ adjective, adverbfor each personper capita incomeper capita income /pə �k�pitə �ink�m/noun 1. the average income of one person.Also called income per capita, incomeper head 2. the average income of eachmember of a particular group of people, e.g.,the citizens of a countryper centper cent /pə �sent/ adjective, adverb outof each hundred, or for each hundred

‘…this would represent an 18 per centgrowth rate – a slight slackening of the 25per cent turnover rise in the first half’[Financial Times]‘…buildings are depreciated at two percent per annum on the estimated cost ofconstruction’ [Hongkong Standard]

percentagepercentage /pə|�sentid / noun an amountshown as part of one hundred

‘…state-owned banks cut their prime ratesa percentage point to 11%’ [Wall StreetJournal]‘…a good percentage of the excess stockwas taken up during the last quarter’ [Aus-tralian Financial Review]

‘…the Federal Reserve Board, signallingits concern about the weakening Americaneconomy, cut the discount rate by one-halfpercentage point to 6.5%’ [Wall StreetJournal]

percentage discountpercentage discount /pə|�sentid �diskaυnt/ noun a discount calculated at anamount per hundredpercentage increasepercentage increase /pə|�sentid �inkri�s/ noun an increase calculated on thebasis of a rate for one hundredpercentage pointpercentage point /pə|�sentid pɔint/noun 1 per centpercentilepercentile /pə|�sentail/ noun one of aseries of ninety-nine figures below which apercentage of the total fallsper dayper day /pə �dei/, per diem /�p�� �di�em/adverb for each dayperformperform /pə|�fɔ�m/ verb to do well or badlyperformanceperformance /pə|�fɔ�məns/ noun 1. theway in which someone or something acts �Last year saw a dip in the company’s per-formance. � performance of staff againstobjectives how staff have worked, measuredagainst the objectives set 2. the way in whicha share increases in value

‘…inflation-adjusted GNP edged up at a1.3% annual rate, its worst performancesince the economic expansion began’[Fortune]

performance auditperformance audit /pə|�fɔ�məns �ɔ�dit/noun an investigation into the efficiency of aparticular area of an organisation, or of theorganisation as a wholeperformance ratingperformance rating /pə|�fɔ�məns�reitiŋ/ noun a judgment of how well ashare or a company has performedperformance reportperformance report /pə |�fɔ�məns ri|

�pɔ�t/ noun a report of the findings of a per-formance auditper headper head /pə �hed/ adverb for each person� Allow £15 per head for expenses. � Rep-resentatives cost on average £50,000 perhead per annum.period billperiod bill /�piəriəd bil/ noun a bill ofexchange payable on a certain date ratherthan on demand. Also known as term billperiod costperiod cost /�piəriəd kɒst/ noun a fixedcost, such as rent or insurance, which isrelated to a period of timeperiod endperiod end /�piəriəd end/ noun the datewhich marks the end of a particular account-ing period, e.g. the end of the financial yearperiodicity conceptperiodicity concept /�piəriə|�disiti�kɒnsept/ noun a legal requirement thatstates that entities must produce requiredfinancial documentation at agreed times

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167 petty cash voucherperiodic stock checkperiodic stock check /�piəriɒdik �stɒk�tʃek/ noun the counting of stock at somepoint in time, usually at the end of anaccounting periodperiodic weighted average costperiodic weighted average cost/�piəriɒdik �weitid ��v(ə)rid �kɒst/,periodic weighted average price/�piəriɒdik �weitid ��v(ə)rid �prais/noun the average price per unit of stockdelivered in a period calculated at the end ofthe period. Compare cumulative weightedaverage costperiod of accountperiod of account /�piəriəd əv ə |�kaυnt/noun the period usually covered by a firm’saccountsperiod of qualificationperiod of qualification /�piəriəd əv�kwɒlifi|�keiʃ(ə)n/ noun the time which hasto pass before someone qualifies for some-thingperkperk /p��k/ noun an extra item given by acompany to employees in addition to theirsalaries, e.g. company cars or private healthinsurance (informal) � She earns a good sal-ary and in addition has all sorts of perks.perpetual inventory systemperpetual inventory system /p��|

�petjυəl �inventəri �sistəm/ noun a stockcontrol system by which the stock is contin-ually counted as it moves into and out of thewarehouse, so avoiding having to close thewarehouse for annual stock checks. Abbre-viation PISperpetuityperpetuity /�p��pit|�ju�iti/ noun same asannuityperquisiteperquisite /�p��kwizit/ noun same asperkpersonalpersonal /�p��s(ə)n(ə)l/ adjective refer-ring to one person � apart from the familyshares, she has a personal shareholding inthe company apart from shares belongingto her family as a group, she has shareswhich she owns herselfpersonal accountpersonal account /�p��s(ə)n(ə)l ə|

�kaυnt/ noun an account for recordingamounts receivable from or payable to a per-son or an entity. � impersonal accountpersonal allowancepersonal allowance /�p��s(ə)n(ə)l ə|

�laυəns/ noun a part of a person’s incomewhich is not taxedpersonal assetspersonal assets /�p��s(ə)n(ə)l ��sets/plural noun movable assets which belong toa personPersonal Equity PlanPersonal Equity Plan /�p��s(ə)nəl�ekwiti pl�n/ noun a share-based invest-ment replaced by the ISA in 1999. Abbrevi-ation PEPpersonal financial planningpersonal financial planning/�p��s(ə)n(ə)l fai |�n�nʃəl �pl�niŋ/ nounshort- and long-term financial planning by

an individual, either independently or withthe assistance of a professional adviser. Itwill include the use of tax efficient schemessuch as Individual Savings Accounts, ensur-ing adequate provisions are being made forretirement, and examining short- and long-term borrowing requirements such as over-drafts and mortgages.Personal Identification NumberPersonal Identification Number/�p��s(ə)n(ə)l ai |�dentifi |�keiʃ(ə)n �n�mbə/noun a unique number allocated to theholder of a cash card or credit card, by whichhe or she can enter an automatic bankingsystem, as e.g., to withdraw cash from a cashmachine or to pay in a store. AbbreviationPINpersonal incomepersonal income /�p��s(ə)n(ə)l �ink�m/noun the income received by an individualperson before tax is paidPersonal Investment AuthorityPersonal Investment Authority/�p��s(ə)nəl in|�vestmənt ɔ� |�θɒrəti/ noun aself-regulatory body which regulates theactivities of financial advisers, insurancebrokers and others who give financial adviceor arrange financial services for small cli-ents. Abbreviation PIApersonal loanpersonal loan /�p��s(ə)nəl �ləυn/ noun aloan to a person for household or other per-sonal use, not for business usepersonal pension planpersonal pension plan /�p��s(ə)n(ə)l�penʃən �pl�n/ noun a pension plan whichapplies to one employee only, usually a self-employed person, not to a group. Abbrevia-tion PPPpersonal propertypersonal property /�p��s(ə)n(ə)l�prɒpəti/ noun things which belong to aperson � The fire caused considerable dam-age to personal property.personal representativepersonal representative /�p��s(ə)n(ə)l�repri|�zentətiv/ noun a person who is theexecutor of a will or the administrator of theestate of a deceased personPERTPERT /p��t/ abbreviation programme eval-uation and review techniquepetroleum revenuespetroleum revenues /pə|�trəυliəm�revənju�z/ plural noun income from sell-ing oilpetroleum revenue taxpetroleum revenue tax /pə|�trəυliəm�revənju� �t�ks/ noun a British tax on rev-enues from companies extracting oil fromthe North Sea. Abbreviation PRTpetty cashpetty cash /�peti �k�ʃ/ noun a smallamount of money kept in an office to paysmall debts. Abbreviation P/Cpetty cash voucherpetty cash voucher /�peti �k�ʃ�vaυtʃə/ noun a piece of paper on whichcash expenditure is noted so that an

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petty expenses 168employee can be reimbursed for what he orshe has spent on company businesspetty expensespetty expenses /�peti ik|�spensiz/ pluralnoun small sums of money spentphasephase /feiz/ noun a period or part of some-thing which takes place � the first phase ofthe expansion programmephase in phrasal verb to bring something ingradually � The new invoicing system willbe phased in over the next two months.

‘…the budget grants a tax exemption for$500,000 in capital gains, phased in overthe next six years’ [Toronto Star]

phase out phrasal verb to remove some-thing gradually � Smith Ltd will be phasedout as a supplier of spare parts.phoenix companyphoenix company /�fi�niks�k�mp(ə)ni/ noun a company formed by thedirectors of a company which has gone intoreceivership, which trades in the same wayas the first company, and in most respects(except its name) seems to be exactly thesame as the first company

‘…the prosecution follows recent calls fora reform of insolvency legislation to pre-vent directors from leaving behind a trailof debt while continuing to trade in phoe-nix companies – businesses which foldonly to rise again, often under a slightlydifferent name in the hands of the samedirectors and management’ [FinancialTimes]

physical assetphysical asset /�fizik(ə)l ��set/ noun anasset that is a physically existing thing, asopposed to cash or securitiesphysical inventoryphysical inventory /�fizik(ə)l�invənt(ə)ri/ noun US same as physicalstockphysical marketphysical market /�fizik(ə)l �mɑ�kit/noun a commodity market where purchasersactually buy the commodities, as opposed tothe futures market, where they buy and sellthe right to purchase commodities at a futuredatephysical pricephysical price /�fizik(ə)l �prais/ noun acurrent cash price for a commodity forimmediate deliveryphysicalsphysicals /�fizik(ə)lz/ plural noun actualcommodities which are sold on the currentmarket, as opposed to futuresphysical stockphysical stock /�fizik(ə)l �stɒk/ nounthe actual items of stock held in a warehousePIAPIA abbreviation Personal InvestmentAuthoritypiece ratepiece rate /�pi�s reit/ noun a rate of paycalculated as an amount for each productproduced or for each piece of work done,

and not as an amount for each hour worked� to earn piece ratespieceworkpiecework /�pi�sw��k/ noun work forwhich employees are paid in accordancewith the number of products produced orpieces of work done and not at an hourly ratepie chartpie chart /�pai tʃɑ�t/ noun a diagramwhere information is shown as a circle cutup into sections of different sizespilferagepilferage /�pilfərid /, pilfering /�pilfəriŋ/noun the stealing of small amounts ofmoney or small items from an office or shopPINPIN /pin/ abbreviation Personal Identifica-tion NumberPISPIS abbreviation perpetual inventory sys-templacementplacement /�pleismənt/ noun 1. the act offinding work for someone � The bureauspecialises in the placement of former exec-utives. 2. US the act of finding buyers for anissue of new shares (NOTE: The UK term isplacing.)placingplacing /�pleisiŋ/ noun the act of finding asingle buyer or a group of institutional buy-ers for a large number of shares in a newcompany or a company that is going publicplain vanilla swapplain vanilla swap /�plein və|�nilə�swɒp/ noun same as interest rate swapplanplan /pl�n/ noun 1. an organised way ofdoing something � an investment plan � apension plan � a savings plan 2. a way ofsaving or investing money � verb to organ-ise carefully how something should be donein the future

‘…the benefits package is attractive andthe compensation plan includes base,incentive and car allowance totalling$50,000+’ [Globe and Mail (Toronto)]

plan comptableplan comptable /�plɒn kɒm |�tɑ�blə/noun in France, a uniformly structured anddetailed bookkeeping system that compa-nies are required to comply withplanned economyplanned economy /�pl�nd i |�kɒnəmi/noun a system where the government plansall business activity, regulates supply, setsproduction targets and itemises work to bedone. Also called command economy,central planningplanned obsolescenceplanned obsolescence /�pl�nd �ɒbsə |

�les(ə)ns/ noun same as built-in obsoles-cence � Planned obsolescence was con-demned by the consumer organisation as acynical marketing ploy.plant and machineryplant and machinery /�plɑ�nt ən mə |

�ʃi�nəri/ noun equipment used to help some-one trade such as trucks, tools, office furni-ture, computers, ladders, etc.

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169 post balance-sheet reviewplant assetplant asset /�plɑ�nt ��set/ noun anyfixed asset such as machineryplant ledgerplant ledger /�plɑ�nt �led ə/ noun aledger that records information relating tospecific items of plant, including informa-tion on replacements and repairsplasticplastic /�pl�stik/ noun credit cards andcharge cards (informal)PlcPlc, PLC, plc abbreviation public limitedcompanyplusplus /pl�s/ preposition added to � Her sal-ary plus commission comes to more than£45,000. � Production costs plus overheadsare higher than revenue. � adverb morethan � houses valued at £100,000 plushouses valued at over £100,000pocketpocket /�pɒkit/ noun � to be £25 inpocket to have made a profit of £25 � to be£25 out of pocket to have lost £25pointpoint /pɔint/ noun 1. a place or position 2.a unit for calculations � government stocksrose by one point they rose by £1poison pillpoison pill /�pɔiz(ə)n �pil/ noun an actiontaken by a company to make itself lessattractive to a potential takeover bidpolicy costpolicy cost /�pɒlisi kɒst/ noun a fixedcost, such as advertising cost, which is gov-erned by the management’s policy on theamount of advertising to be doneportable pensionportable pension /�pɔ�təb(ə)l �penʃən/,portable pension plan /�pɔ�təb(ə)l�penʃən pl�n/ noun a pension entitlementwhich can be moved from one company toanother without loss as an employeechanges jobsportfolio investmentsportfolio investments /pɔ�t |�fəυliəυ in|

�vestmənts/ plural noun investments inshares and government stocks, as opposed toinvestments in property, etc.portfolio managementportfolio management /pɔ�t|�fəυliəυ�m�nid mənt/ noun the systematic buyingand selling shares in order to make the high-est-possible profits for a single investorportfolio theoryportfolio theory /pɔ�t|�fəυliəυ �θiəri/noun a basis for managing a portfolio ofinvestments, i.e. a mix of safe stocks andmore risky onespositionposition /pə|�ziʃ(ə)n/ noun 1. a situationor state of affairs 2. a point of view 3. a jobor paid work in a company � to apply for aposition as manager � We have severalpositions vacant. 4. the state of a person’scurrent financial holding in a stockposition auditposition audit /pə|�ziʃ(ə)n �ɔ�dit/ nounpart of the planning process which examinesthe current state of an entity in respect of thefollowing: resources of tangible and intangi-ble assets and finance; products, brands and

markets; operating systems such as produc-tion and distribution; internal organisation;current results; and returns to stockholderspositive carrypositive carry /�pɒzitiv �k�ri/ noun asituation in which the cost of financing aninvestment is less than the return obtainedfrom itpositive cash flowpositive cash flow /�pɒzitiv �k�ʃ fləυ/noun a situation in which more money iscoming into a company than is going outpositive confirmationpositive confirmation /�pɒzitiv �kɒnfə|

�meiʃən/ noun an auditor’s request to havefinancial information confirmed as accurate,to which a reply must be sent, not only in thecase of a discrepancypositive goodwillpositive goodwill /�pɒzitiv �υd|�wil/noun the position of a company that hasassets for which the acquisition costs exceedthe values of the identifiable assets and lia-bilitiespositive yield curvepositive yield curve /�pɒzitiv �ji�ld�k��v/ noun a situation where the yield on ashort-term investment is less than that on along-term investmentpossesspossess /pə|�zes/ verb to own something� The company possesses property in thecentre of the town. � He lost all he pos-sessed in the collapse of his company. Com-pare repossesspossessionpossession /pə|�zeʃ(ə)n/ noun the fact ofowning or having somethingpossessionspossessions /pə|�zeʃ(ə)nz/ plural nounproperty, things owned � They lost all theirpossessions in the fire. Compare reposses-sionpost-acquisitionpost-acquisition /pəυst ��kwi|�ziʃ(ə)n/adjective taking place after a company hasbeen acquiredpost-acquisition profitpost-acquisition profit /�pəυst ��kwi|

�ziʃ(ə)n �prɒfit/ noun a profit of a subsidi-ary company in the period after it has beenacquired, which is treated as revenue andtransferred to the consolidated reserves ofthe holding companypost a creditpost a credit /�pəυst ə �kredit/ verb toenter a credit item in a ledgerpost-balance sheet eventpost-balance sheet event /�pəυst�b�ləns ʃi�t i |�vent/ noun something whichhappens after the date when the balancesheet is drawn up, and before the time whenthe balance sheet is officially approved bythe directors, which affects a company’sfinancial positionpost balance-sheet reviewpost balance-sheet review /�pəυst�b�ləns ʃi�t ri|�vju�/ noun those proceduresof an audit that relate to the interval betweenthe date of the financial statements and thecompletion date of the audit fieldwork

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postdate 170postdate

postdate /�pəυst |�deit/ verb to put a laterdate on a document � He sent us a postdatedcheque. � Her cheque was postdated toJune.post-purchase costs

post-purchase costs /�pəυst �p��tʃis�kɒsts/ plural noun costs incurred after acapital expenditure decision has been imple-mented and facilities acquired. These costsmay include training, maintenance and thecost of upgrades.pound

pound /paυnd/ noun 1. a measure ofweight (= 0.45 kilos) � to sell oranges by thepound � a pound of oranges � Oranges cost50p a pound. (NOTE: Usually written lb aftera figure: 25lb. Note also that the pound isnow no longer officially used in the UK) 2. aunit of currency used in the UK and manyother countries including Cyprus, Egypt,Lebanon, Malta, Sudan, Syria and, beforethe euro, Irelandpoundage

poundage /�paυndid / noun a ratecharged per pound in weightpound-cost averaging

pound-cost averaging /�paυnd kɒst��v(ə)rid iŋ/ noun the practice of buyingsecurities at different times, but alwaysspending the same amount of moneypound sterling

pound sterling /�paυnd �st��liŋ/ nounthe official term for the UK currencypower

power /�paυə/ noun 1. strength or ability 2.a force or legal right 3. a mathematical termdescribing the number of times a number isto be multiplied by itself � 5 to the power 2is equal to 25 (NOTE: written as small figuresin superscript: 105. Say: ‘ten to the powerfive’)power of attorney

power of attorney /�paυər əv ə|�t��ni/noun a legal document which gives someonethe right to act on someone’s behalf in legalmattersPPI

PPI abbreviation producers’ price indexPPP

PPP abbreviation personal pension planpre-acquisition profits

pre-acquisition profits /�pri���kwiziʃən �prɒfits/ plural noun profits ofa company in the part of its accountingperiod before it was acquired by anothercompany. Under acquisition accountingmethods, the holding company deductsthese profits from the combined reserves ofthe group.pre-acquisition write-down

pre-acquisition write-down /�pri���kwiziʃən �rait �daυn/ noun a reductionin the fair value of a new subsidiary in thebalance sheet of a holding company againstthe potential future costs or the possiblerevaluation of the subsidiary’s assets afteracquisition

prebillingprebilling /pri�|�biliŋ/ noun the practice ofsubmitting a bill for a product or servicebefore it has actually been deliveredpreceding yearpreceding year /pri|�si�diŋ �jiə/ noun theyear before the accounting year in question� taxed on a preceding year basis tax onincome or capital gains arising in the previ-ous year is payable in the current yearpre-emption rightpre-emption right /pri�|�empʃən rait/noun the right of an existing shareholder tobe first to buy a new stock issuepre-emptivepre-emptive /�pri� �emptiv/ adjectivedone before anyone else takes action inorder to stop something happeningpreference dividendpreference dividend /�pref(ə)rəns�dividend/ noun a dividend paid on prefer-ence sharespreference sharespreference shares /�pref(ə)rəns ʃeəz/plural noun shares, often with no votingrights, which receive their dividend beforeall other shares and are repaid first at facevalue if the company goes into liquidation(NOTE: The US term is preferred stock.)preferential creditorpreferential creditor /�prefərenʃ(ə)l�kreditə/ noun a creditor who must be paidfirst if a company is in liquidation. Alsocalled preferred creditorpreferential debtpreferential debt /�prefərenʃ(ə)l �det/noun a debt which is paid before all otherspreferential paymentpreferential payment /�prefərenʃəl�peimənt/ noun a payment to a preferentialcreditorpreferential sharespreferential shares /�prefə |�renʃ(ə)lʃeəz/ plural noun shares which are part of anew issue and are set aside for the employ-ees of the companypreferred creditorpreferred creditor /pri|�f��d �kreditə/noun same as preferential creditorpreferred sharespreferred shares /pri |�f��d �ʃeəz/, pre-ferred stock /pri |�f��d �stɒk/ plural nounsame as preference sharespre-financingpre-financing /�pri� �fain�nsiŋ/ nounmoney paid in advance by customers to helpfinance a project the future products ofwhich the customer contracts to buy by mak-ing additional paymentspreliminary announcementpreliminary announcement /pri|

�limin(ə)ri ə|�naυnsmənt/ noun anannouncement of a company’s full-yearresults, given out to the press before thedetailed annual report is releasedpreliminary auditpreliminary audit /pri|�limin(ə)ri �ɔ�dit/noun audit fieldwork carried out before theend of the accounting period in questionpreliminary prospectuspreliminary prospectus /pri|

�limin(ə)ri prə|�spektəs/ noun same aspathfinder prospectus

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171 price/earnings ratiopremiumpremium /�pri�miəm/ noun 1. a regularpayment made to an insurance company forthe protection provided by an insurance pol-icy 2. an amount to be paid to a landlord ora tenant for the right to take over a lease �flat to let with a premium of £10,000 �annual rent: £8,500, premium: £25,000 3.an extra sum of money in addition to a usualcharge, wage, price or other amount 4. a gift,discount or other incentive to encouragesomeone to buypremium bondpremium bond /�pri�miəm bɒnd/ noun agovernment bond, part of the National Sav-ings and Investment scheme, which pays nointerest, but gives the owner the chance towin a weekly or monthly prizepremium incomepremium income /�pri�miəm �ink�m/noun income which an insurance companyderives from premiums paid by insured per-sonspremium on redemptionpremium on redemption /�pri�miəmɒn ri |�dempʃən/ noun an extra amountabove the nominal value of a share or deben-ture paid to the holder by a company buyingback its share or loan stockprepaid expensesprepaid expenses /pri� |�peid ik|

�spensiz/ plural noun expenditure on itemssuch as rent, which is made in one account-ing period but covers part of the next periodalsoprepaid interestprepaid interest /pri� |�peid �intrəst/noun interest paid in advance of its due dateprepayprepay /pri� |�pei/ verb to pay something inadvance (NOTE: prepaying – prepaid)prepaymentprepayment /pri�|�peimənt/ noun 1. apayment in advance, or the act of paying inadvance 2. US the repayment of the princi-pal of a loan before it is dueprepayment penaltyprepayment penalty /pri� |�peimənt�pen(ə)lti/ noun US a charge levied onsomeone who repays a loan such as a mort-gage before it is duepresent valuepresent value /�prez(ə)nt �v�lju�/ noun1. the value something has now � In 1984the pound was worth five times its presentvalue. 2. the value now of a specified sum ofmoney to be received in the future, ifinvested at current interest rates. Abbrevia-tion PV 3. a price which a share must reachin the future to be the equivalent of today’sprice, taking inflation into accountpreservation of capitalpreservation of capital/�prezəveiʃ(ə)n əv �k�pit(ə)l/ noun anapproach to financial management that pro-tects a person’s or company’s capital byarranging additional forms of financepretaxpretax /�pri�t�ks/, pre-tax adjectivebefore tax has been deducted or paid

‘…the company’s goals are a growth insales of up to 40 per cent, a rise in pre-taxearnings of nearly 35 per cent and a rise inafter-tax earnings of more than 25 percent’ [Citizen (Ottawa)]‘EC regulations which came into effect inJuly insist that customers can buy carsanywhere in the EC at the local pre-taxprice’ [Financial Times]

pretax profitpretax profit /�pri�t�ks �prɒfit/ noun theamount of profit a company makes beforetaxes are deducted � The dividend paid isequivalent to one quarter of the pretaxprofit. Also called profit before tax, profiton ordinary activities before taxpretax profit marginpretax profit margin /�pri�t�ks �prɒfit�mɑ�d in/ noun the pretax profit shown as apercentage of turnover in a profit and lossaccountpreventive costspreventive costs /pri |�ventiv kɒsts/plural noun those costs incurred in seekingto prevent defects in products and servicessupplied, e.g. the cost of training pro-grammesprevious balanceprevious balance /�pri�viəs �b�ləns/noun a balance in an account at the end ofthe accounting period before the current onepriceprice /prais/ noun money which has to bepaid to buy something � cars in the £18–19,000 price range cars of different makes,selling for between £18,000 and £19,000 �verb to give a price to a product � We havetwo used cars for sale, both priced at£5,000.price ceilingprice ceiling /�prais �si�liŋ/ noun a limitbeyond which prices will not or cannot riseprice changeprice change /�prais tʃeind / noun anamount by which the price of a share movesduring a day’s tradingprice controlsprice controls /�prais kən|�trəυlz/ pluralnoun legal measures to prevent prices risingtoo fastprice cuttingprice cutting /�prais �k�tiŋ/ noun a sud-den lowering of prices

‘…in today’s circumstances, price-cuttingis inevitable in an attempt to build up mar-ket share’ [Marketing Week]

price-cutting warprice-cutting war /�prais �k�tiŋ wɔ�/noun same as price warprice differentialprice differential /�prais difə|�renʃəl/noun the difference in price between prod-ucts in a rangeprice/earnings ratioprice/earnings ratio /�prais ���niŋz�reiʃiəυ/ noun a ratio between the currentmarket price of a share of stock and the earn-ings per share (the current dividend it pro-duces), calculated by dividing the marketprice by the earnings per share � These

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price fixing 172shares sell at a P/E ratio of 7 Also calledP/E ratio. Abbreviation PERprice fixingprice fixing /�prais �fiksiŋ/ noun an ille-gal agreement between companies to chargethe same price for competing productsprice-insensitiveprice-insensitive /�prais in |�sensətiv/adjective used to describe a good or servicefor which sales remain constant no matterwhat its price because it is essential to buy-ersprice rangeprice range /�prais reind / noun a seriesof prices for similar products from differentsuppliersprice-to-sales ratioprice-to-sales ratio /�prais tə �seilz�reiʃiəυ/ noun the ratio of the total value ofa company’s shares to its sales for the previ-ous twelve monthsprice varianceprice variance /�prais �veəriəns/ nounthe discrepancy between the actual price ofa unit produced and the standard priceprice warprice war /�prais wɔ�/ noun a competitionbetween companies to get a larger marketshare by cutting prices. Also called price-cutting warpricingpricing /�praisiŋ/ noun the act of giving aprice to a productpricing modelpricing model /�praisiŋ �mɒd(ə)l/ nouna computerised system for calculating aprice, based on costs, anticipated margins,etc.pricing policypricing policy /�praisiŋ �pɒlisi/ noun acompany’s policy in giving prices to itsproducts � Our pricing policy aims at pro-ducing a 35% gross margin.primary commoditiesprimary commodities /�praiməri kə|

�mɒditiz/ plural noun farm produce grownin large quantities, e.g. corn, rice or cottonprimary industryprimary industry /�praiməri �indəstri/noun an industry dealing with basic rawmaterials such as coal, wood, or farm pro-duceprimeprime /praim/ adjective 1. most important2. basic � noun same as prime rateprime billsprime bills /�praim �bilz/ plural noun billsof exchange which do not involve any riskprime costprime cost /�praim �kɒst/ noun the costinvolved in producing a product, excludingoverheadsprime rateprime rate /�praim reit/ noun US the bestrate of interest at which a bank lends to itscustomers. Also called primeprime sitesprime sites /�praim �saits/ plural nounthe most valuable commercial sites, i.e. inmain shopping streets. Compare secondarysitesprimingpriming /�praimiŋ/ noun � pump priming

principalprincipal /�prinsip(ə)l/ noun 1. a personor company that is represented by an agent �The agent has come to London to see hisprincipals. 2. a person acting for him or her-self, such as a marketmaker buying securi-ties on his or her own account 3. moneyinvested or borrowed on which interest ispaid � to repay principal and interest � Wetry to repay part of principal each month.(NOTE: Do not confuse with principle.) �adjective most important � The principalshareholders asked for a meeting. � Thecountry’s principal products are paper andwood. � The company’s principal asset is itsdesign staff.

‘…the company was set up with fundstotalling NorKr 145m with the principalaim of making capital gains on the second-hand market’ [Lloyd’s List]

prior charge percentageprior charge percentage /�praiə�tʃɑ�d pə|�sentid / noun same as prioritypercentageprioritypriority /prai|�ɒriti/ noun � to have prior-ity over or to take priority over somethingto be more important than something �Reducing overheads takes priority overincreasing turnover. � Debenture holdershave priority over ordinary shareholders.priority percentagepriority percentage /prai |�ɒriti pə |

�sentid / noun the proportion of a busi-ness’s net profit that is paid in interest topreference shareholders and holders of debtcapital. Also called prior charge percent-ageprior period adjustmentprior period adjustment /�praiə�piəriəd ə|�d �stmənt/ noun a change inthe revenue or expenses for a previousaccounting period, introduced in order tocorrect an error or to apply a new accountingpolicyprior year adjustmentsprior year adjustments /�praiə jiər ə |

�d �stmənts/ plural noun adjustmentsmade to accounts for previous years,because of changes in accounting policies orbecause of errorsprivateprivate /�praivət/ adjective belonging to asingle person or to individual people, not toa company or the state � a letter marked‘private and confidential’ a letter whichmust not be opened by anyone other than theperson it is addressed to � to sell (a house)by private treaty to sell (a house) to anotherperson not by auctionprivate bankprivate bank /�praivət �b�ŋk/ noun 1. abank that is owned by a single person or alimited number of private shareholders 2. abank that provides banking facilities to highnet worth individuals. � private banking

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173 producerprivate bankingprivate banking /�praivət �b�ŋkiŋ/noun a service offered by certain financialinstitutions to high net worth individuals. Inaddition to standard banking services, it willtypically include portfolio management andadvisory services on taxation, includingestate planning.private companyprivate company /�praivət �k�mp(ə)ni/noun a registered company whose shares arenot offered for sale to the publicprivate debtprivate debt /�praivət �det/ noun moneyowed by individuals and organisations otherthan governmentsprivate enterpriseprivate enterprise /�praivət �entəpraiz/noun businesses that are owned privately,not nationalised � The project is completelyfunded by private enterprise.private incomeprivate income /�praivət �ink�m/ nounincome from dividends, interest or rentwhich is not part of a salaryprivate investorprivate investor /�praivət in|�vestə/noun an ordinary person with money toinvestprivate limited companyprivate limited company /�praivət�limitid �k�mp(ə)ni/ noun 1. a companywith a small number of shareholders, whoseshares are not traded on the Stock Exchange2. a subsidiary company whose shares arenot listed on the Stock Exchange, whilethose of its parent company are � abbrevia-tion Pty Ltdprivately held companyprivately held company /�praivətliheld �k�mp(ə)ni/ noun US company con-trolled by a few shareholders or its directors.Also called closed corporationprivate ownershipprivate ownership /�praivət �əυnəʃip/noun a situation in which a company isowned by private shareholdersprivate placementprivate placement /�praivət�pleismənt/ noun the sale of securities forthe purpose of investment, not for resaleprivate placingprivate placing /�praivət �pleisiŋ/, pri-vate placement /�praivət �pleismənt/noun the act of placing a new issue of shareswith a group of selected financial institu-tionsprivate practiceprivate practice /�praivət �pr�ktis/noun accounting services offered to clients,as opposed to accounting work carried outas an employee of a companyprivate propertyprivate property /�praivət �prɒpəti/noun property which belongs to a privateperson, not to the publicprivate sectorprivate sector /�praivət �sektə/ nounone of the parts of the economy of a country,which itself is made up of the corporate sec-tor (firms owned by private shareholders),the personal sector (individuals and their

income and expenditure), and the financialsector (banks and other institutions dealingin money) � The expansion is completelyfunded by the private sector. � Salaries inthe private sector have increased faster thanin the public sector.

‘…in the private sector the total number ofnew house starts was 3 per cent higher thanin the corresponding period last year,while public sector starts were 23 per centlower’ [Financial Times]

private treatyprivate treaty /�praivət �tri�ti/ noun anagreement between individual personsprobabilityprobability /�prɒbə|�biliti/ noun the likeli-hood that something will happen, expressedmathematicallyprobability distributionprobability distribution /�prɒbə|�biləti�distribju�ʃ(ə)n/ noun a mathematical for-mula that shows the probability for eachvalue of a variable in a statistical studyprobateprobate /�prəυbeit/ noun legal acceptancethat a document, especially a will, is valid �the executor was granted probate orobtained a grant of probate the executorwas told officially that the will was validprocedural auditprocedural audit /prə|�si�d ərəl �ɔ�dit/noun the process of evaluating all policies,controls and other procedures of a businessprocedureprocedure /prə|�si�d ə/ noun a way inwhich something is done � The inquiryfound that the company had not followed theapproved procedures.

‘…this was a serious breach of discipli-nary procedure and the dismissal wasunfair’ [Personnel Management]

proceedsproceeds /�prəυsi�dz/ plural noun moneyreceived from selling somethingprocessprocess /�prəυses/ verb to deal withsomething in the usual routine way � It usu-ally takes at least two weeks to process aninsurance claim. � Orders are processed inour warehouse.process costingprocess costing /�prəυses �kɒstiŋ/noun a method of costing something whichis manufactured from a series of continuousprocesses, where the total costs of thoseprocesses are divided by the number of unitsproducedprocess cost reportprocess cost report /�prəυses kɒst ri|

�pɔ�t/ noun a set of schedules that managersuse to track costs in a process costing systemprocessingprocessing /�prəυsesiŋ/ noun the act ofsorting information � the processing ofinformation or of statistics by a computerproducerproducer /prə|�dju�sə/ noun same as sup-plier � a country which is a producer ofhigh-quality watches � The company is amajor car producer.

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producers’ price index 174producers’ price indexproducers’ price index /prə|�dju�sə�prais �indeks/ noun US a measure of theannual increase in the prices of goods andservices charged by producers which is usedto indicate the rate of inflation in the USeconomy. Abbreviation PPIproductproduct /�prɒd�kt/ noun 1. somethingwhich is made or manufactured 2. a manu-factured item for saleproduct advertisingproduct advertising /�prɒd�kt��dvətaiziŋ/ noun the advertising of a par-ticular named product, not the companywhich makes itproduct analysisproduct analysis /�prɒd�kt ə|�n�ləsis/noun an examination of each separate prod-uct in a company’s range to find out why itsells, who buys it, etc.product costproduct cost /�prɒd�kt kɒst/ noun thetotal cost of goods produced but not yet soldproduct costing systemproduct costing system /�prɒd�kt�kɒstiŋ �sistəm/ noun a set of proceduresthat provides information on unit costproduct designproduct design /�prɒd�kt di |�zain/ nounthe design of consumer productsproduct developmentproduct development /�prɒd�kt di|

�veləpmənt/ noun the process of improvingan existing product line to meet the needs ofthe marketproductionproduction /prə|�d�kʃən/ noun 1. the actof showing something 2. the work of makingor manufacturing goods for sale � We arehoping to speed up production by installingnew machinery. � Higher production isrewarded with higher pay.production budgetproduction budget /prə|�d�kʃən�b�d it/ noun a plan of the level of manu-facturing required to satisfy budgeted salesand inventory expectationsproduction costproduction cost /prə|�d�kʃən kɒst/noun the cost of making a productproduction departmentproduction department /prə|�d�kʃəndi|�pɑ�tmənt/ noun the section of a com-pany which deals with the making of thecompany’s productsproduction lineproduction line /prə|�d�kʃən lain/ nouna system of making a product, where eachitem such as a car moves slowly through thefactory with new sections added to it as itgoes along � He works on the productionline. � She is a production-line employee.production managerproduction manager /prə|�d�kʃən�m�nid ə/ noun the person in charge of theproduction departmentproduction overheadproduction overhead /prə|�d�kʃən�əυvəhed/ noun the indirect costs of pro-duction which are absorbed into the cost ofgoods produced. Also called factory over-head

production targetproduction target /prə|�d�kʃən �tɑ��it/noun the number of units a business isexpected to produceproduction unitproduction unit /prə|�d�kʃən �ju�nit/noun a separate small group of employeesproducing a productproduction yield varianceproduction yield variance /prə|

�d�kʃən ji�ld �veəriəns/ noun a discrep-ancy between expected levels of productiv-ity and actual levels, for a given amount ofinputproductive capitalproductive capital /prə|�d�ktiv�k�pit(ə)l/ noun capital which is invested togive interestproductivityproductivity /�prɒd�k|�tiviti/ noun therate of output per employee, or per item ofequipment, in a business � Bonus paymentsare linked to productivity. � The company isaiming to increase productivity. � Produc-tivity has fallen or risen since the companywas taken over.

‘…though there has been productivitygrowth, the absolute productivity gapbetween many British firms and their for-eign rivals remains’ [Sunday Times]

productivity agreementproductivity agreement /�prɒd�k|

�tiviti ə|��ri�mənt/ noun an agreement topay a productivity bonusproductivity bonusproductivity bonus /�prɒd�k|�tiviti�bəυnəs/ noun an extra payment made toemployees because of increased productionper employeeproductivity driveproductivity drive /�prɒd�k|�tivitidraiv/ noun an extra effort to increase pro-ductivityproduct life cycleproduct life cycle /�prɒd�kt �laif�saik(ə)l/ noun stages in the life of a productin terms of sales and profitability, from itslaunch to its decline � Growth is the firststage in the product life cycle. � Themachine has reached a point in its productlife cycle where we should be thinking abouta replacement for it.product managementproduct management /�prɒd�kt�m�nid mənt/ noun the process of over-seeing the making and selling of a product asan independent itemproduct mixproduct mix /�prɒd�kt miks/ noun therange of different products which a com-pany has for saleproduct mix decisionsproduct mix decisions /�prɒd�kt miksdi|�si (ə)nz/ plural noun decisions aboutwhich products or services to concentrate onin order to maximise total profitsproduct unit costproduct unit cost /�prɒd�kt �ju�nit�kɒst/ noun the cost of manufacturing a sin-gle unit of product

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175 profit-related bonusprofessionprofession /prə|�feʃ(ə)n/ noun 1. an occu-pation for which official qualifications areneeded and which is often made a lifelongcareer � The managing director is anaccountant by profession. � HR manage-ment is now more widely recognised as aprofession. 2. a group of specialised workers� the accounting profession � the legal pro-fession

‘…one of the key advantages of anaccountancy qualification is its worldwidemarketability. Other professions are not solucky: lawyers, for example, are muchmore limited in where they can work’[Accountancy]

professionalprofessional /prə|�feʃ(ə)nəl/ adjectivereferring to one of the professions � Theaccountant sent in his bill for professionalservices. � We had to ask our lawyer forprofessional advice on the contract. � pro-fessional man, professional woman a manor woman who works in one of the profes-sions such as a lawyer, doctor or accountantprofessional feesprofessional fees /prə|�feʃ(ə)nəl �fi�z/plural noun fees paid to lawyers, account-ants, architects, etc.profitprofit /�prɒfit/ noun money gained from asale which is more than the money spent onmaking the item sold or on providing theservice offered � to take your profit to sellshares at a higher price than was paid forthem, and so realise the profit, rather than tokeep them as an investment � to make aprofit to have more money as a result of adealprofitabilityprofitability /�prɒfitə|�biliti/ noun 1. theability to make a profit � We doubt the prof-itability of the project. 2. the amount ofprofit made as a percentage of costsprofitability indexprofitability index /�prɒfitə|�biliti�indeks/ noun a figure that is the currentestimated final value of an investmentdivided by the amount of the original invest-mentprofitableprofitable /�prɒfitəb(ə)l/ adjective mak-ing a profit � She runs a very profitableemployment agency.profitablyprofitably /�prɒfitəbli/ adverb making aprofit � The aim of every company must beto trade profitably.profit after taxprofit after tax /�prɒfit ɑ�ftə �t�ks/noun same as net profitprofit and loss accountprofit and loss account /�prɒfit ənd�lɒs �steitmənt/ noun the accounts for acompany showing expenditure and incomeover a period of time, usually one calendaryear, balanced to show a final profit or loss.

Also called consolidated profit and lossaccount, P&L statementprofit before interest and tax

profit before interest and tax /�prɒfitbi |�fɔ� �intrəst ən �t�ks/ noun operatingprofit shown before deducting interest onborrowings and tax due to the Inland Reve-nue. Abbreviation PBITprofit before tax

profit before tax /�prɒfit bifɔ� �t�ks/noun same as pretax profitprofit centre

profit centre /�prɒfit �sentə/ noun a per-son, unit or department within an organisa-tion which is considered separately for thepurposes of calculating a profit � We countthe kitchen equipment division as a singleprofit centre.profit distribution

profit distribution /�prɒfit�distribju�ʃ(ə)n/ noun the allocation ofprofits to different recipients such as share-holders and owners, or for different pur-poses such as research or investmentprofiteer

profiteer /�prɒfi |�tiə/ noun a person whomakes too much profit, especially whengoods are rationed or in short supplyprofiteering

profiteering /�prɒfi|�tiəriŋ/ noun thepractice of making too much profitprofit from ordinary activities

profit from ordinary activities /�prɒfitfrəm �ɔ�d(ə)n(ə)ri �k|�tivitiz/ noun profitsearned in the normal course of business, asopposed to profits from extraordinarysources such as windfall paymentsprofit-making

profit-making /�prɒfit �meikiŋ/ adjec-tive making a profit, or operated with the pri-mary objective of making a profit � Thewhole project was expected to be profit-mak-ing by 2001 but it still hasn’t broken even. �It is hoped to make it into a profit-makingconcern.profit margin

profit margin /�prɒfit �mɑ�d in/ nounthe percentage difference between salesincome and the cost of salesprofit maximisation

profit maximisation /�prɒfit�m�ksimaizeiʃ(ə)n/ noun the notion thatthe aim of a business is to maximise profitsprofit on ordinary activities before tax

profit on ordinary activities beforetax /�prɒfit ɒn �ɔ�d(ə)n(ə)ri �k|�tivitiz bi|

�fɔ� �t�ks/ noun same as pretax profitprofit planning

profit planning /�prɒfit �pl�niŋ/ nounthe process of developing a plan that out-lines revenue and expenses for a givenperiodprofit-related

profit-related /�prɒfit ri|�leitid/ adjectivelinked to profitprofit-related bonus

profit-related bonus /�prɒfit ri|�leitid�bəυnəs/ noun a bonus paid which is relatedto the amount of profit a company makes

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profit-related pay 176profit-related payprofit-related pay /�prɒfit ri|�leitid �pei/noun pay including bonuses which is linkedto profitprofit retained for the yearprofit retained for the year /�prɒfit ri|

�teinid fə ðə �jiə/ noun same as retainedearningsprofit-sharingprofit-sharing /�prɒfit �ʃeəriŋ/ noun 1.an arrangement whereby employees get ashare of the profits of the company theywork for � The company runs a profit-shar-ing scheme. 2. the practice of dividing prof-its among employeesprofit squeezeprofit squeeze /�prɒfit skwi�z/ noun astrict control of the amount of profits whichcompanies can pay out as dividendprofit-takingprofit-taking /�prɒfit �teikiŋ/ noun theact of selling investments to realise theprofit, rather than keeping them � Shareprices fell under continued profit-taking.

‘…some profit-taking was seen yesterdayas investors continued to lack fresh incen-tives to renew buying activity’ [FinancialTimes]

profit varianceprofit variance /�prɒfit �veəriəns/ nouna discrepancy between actual profit andbudgeted profitprofit-volume chartprofit-volume chart /�prɒfit �vɒlju�m�tʃɑ�t/ noun a chart that shows how profitvaries with changes in volume of productionprofit warningprofit warning noun an announcedincome level for a company that is signifi-cantly lower than that forecast by analystspro formapro forma /�prəυ �fɔ�mə/ verb to issue apro forma invoice � Can you pro forma thisorder?pro-forma financial statementpro-forma financial statement /prəυ�fɔ�mə fai |�n�nʃəl �steitmənt/ noun a pro-jection showing a business’s financial state-ments after the completion of a plannedtransactionpro forma invoicepro forma invoice /�prəυ �fɔ�mə�invɔis/, pro forma /�prəυ �fɔ�mə/ noun aninvoice sent to a buyer before the goods aresent, so that payment can be made or so thatgoods can be sent to a consignee who is notthe buyer � They sent us a pro formainvoice. � We only supply that account onpro forma.programme evaluation and review techniqueprogramme evaluation and reviewtechnique /�prəυ�r�m iv�lju |�eiʃ(ə)nən ri|�vju� tek |�ni�k/ noun a way of planningand controlling a large project, concentrat-ing on scheduling and completion on time.Abbreviation PERTprogressprogress noun /�prəυ�res/ the movementof work towards completion � to report onthe progress of the work or of the negotia-tions � verb /prəυ|��res/ to move forward,

to go ahead � The contract is progressingthrough various departments.progressiveprogressive /prə|��resiv/ adjective mov-ing forward in stagesprogressive taxprogressive tax /prə|��resiv t�ks/ nouna tax with a rate that increases as incomeincreasesprogressive taxationprogressive taxation /prə|��resiv t�k |

�seiʃ(ə)n/ noun a taxation system where taxlevels increase as the income is higher. Alsocalled graduated taxationprohibitiveprohibitive /prəυ|�hibitiv/ adjective witha price so high that you cannot afford to payit � The cost of redesigning the product isprohibitive.projectproject /�prɒd ekt/ noun 1. a plan � Shehas drawn up a project for developing newmarkets in Europe. 2. a particular job ofwork which follows a plan � We are justcompleting an engineering project in NorthAfrica. � The company will start work onthe project next month.project accountingproject accounting /�prɒd ekt ə|

�kaυntiŋ/ noun the form of accounting inwhich financial reports are produced inorder to track costs on individual projectsproject costingproject costing /�prɒd ekt �kɒstiŋ/noun a system used for collecting informa-tion on the costs of a specific business activ-ity or projectprojectedprojected /prə|�d ektid/ adjectiveplanned or expectedproject financeproject finance /�prɒd ekt �fain�ns/noun money raised for a specific undertak-ing, usually a construction or developmentprojectprojectionprojection /prə|�d ekʃən/ noun a forecastof something which will happen in thefuture � Projection of profits for the nextthree years. � The sales manager was askedto draw up sales projections for the nextthree years.project planningproject planning /�prɒd ekt �pl�niŋ/noun the process of making decisions aboutmajor, long-term capital investmentspromisepromise /�prɒmis/ noun an act of sayingthat you will do something � verb to say thatyou will do something � They promised topay the last instalment next week.promissory notepromissory note /�prɒmisəri �nəυt/noun a document stating that someonepromises to pay an amount of money on aspecific datepromotepromote /prə|�məυt/ verb 1. to give some-one a more important job or to move some-one to a higher grade � He was promotedfrom salesman to sales manager. 2. to adver-tise a product

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177 protestpromotionpromotion /prə|�məυʃ(ə)n/ noun the factof being moved up to a more important job� I ruined my chances of promotion when Iargued with the managing director. � Thejob offers good promotion chances or pro-motion prospects.

‘…finding the right promotion to appeal tochildren is no easy task’ [Marketing]‘…you have to study the profiles and peo-ple involved very carefully and tailor thepromotion to fill those needs’ [MarketingWeek]

promptprompt /prɒmpt/ adjective rapid or doneimmediately � We got very prompt serviceat the complaints desk. � Thank you for yourprompt reply to my letter.proofproof /pru�f/ noun evidence which showsthat something is true-proof-proof /pru�f/ suffix protected from thenegative effect of something � an inflation-proof pensionpropertyproperty /�prɒpəti/ noun 1. land andbuildings � Property taxes are higher in theinner city. � They are assessing damage toproperty or property damage after the storm.� The commercial property market is boom-ing. 2. a building � We have several proper-ties for sale in the centre of the town.property bondproperty bond /�prɒpəti bɒnd/ noun aninvestment in a fund invested in propertiesor in property companiesproperty companyproperty company /�prɒpəti�k�mp(ə)ni/ noun a company which buysbuildings to lease themproportionproportion /prə|�pɔ�ʃ(ə)n/ noun a part of atotal � A proportion of the pre-tax profit isset aside for contingencies. � Only a smallproportion of our sales comes from retailshops.proportionalproportional /prə|�pɔ�ʃ(ə)nəl/ adjectiveincreasing or decreasing at the same rate assomething else � The increase in profit isproportional to the reduction in overheads.proportionallyproportionally /prə|�pɔ�ʃ(ə)nəli/ adverbin a way that is proportionalproportional taxationproportional taxation /prə|�pɔ�ʃ(ə)nəlt�k|�seiʃ(ə)n/ noun a tax system in whichthe tax collected is in constant proportion tothe income being taxed, i.e. as income risesso tax rises proportionatelyproprietaryproprietary /prə|�praiət(ə)ri/ noun,adjective a product, e.g. a medicine which ismade and owned by a companyproprietary companyproprietary company /prə|�praiət(ə)ri�k�mp(ə)ni/ noun US a company formed toinvest in stock of other companies so as tocontrol them. Abbreviation pty

proprietary drugproprietary drug /prə|�praiət(ə)ri �dr��/noun a drug which is made by a particularcompany and marketed under a brand nameproprietorproprietor /prə|�praiətə/ noun the ownerof a business, especially in the hospitalityindustry � She is the proprietor of a hotel ora hotel proprietor. � The restaurant has anew proprietor.proprietors’ interestproprietors’ interest /prə|�praiətəz�intrəst/ noun the amount which the ownersof a business have invested in the businesspro ratapro rata /�prəυ �rɑ�tə/ adjective, adverb ata rate which varies according to the size orimportance of something � When part of theshipment was destroyed we received a prorata payment. � The full-time pay is £800 aweek and the part-timers are paid pro rata.prospectprospect /�prɒspekt/ noun a chance orpossibility that something will happen in thefuture � her job prospects are good she isvery likely to find a jobprospectiveprospective /prə|�spektiv/ adjective pos-sibly happening in the futureprospective dividendprospective dividend /prə|�spektiv�dividend/ noun same as forecast divi-dendprospective P/E ratioprospective P/E ratio /prə|�spektiv �pi��i� �reiʃiəυ/ noun a P/E ratio expected in thefuture on the basis of forecast dividendsprospectsprospects /�prɒspekts/ plural noun thepossibilities for the futureprospectusprospectus /prə|�spektəs/ noun a docu-ment which gives information to attract buy-ers or customers � The restaurant has peo-ple handing out prospectuses in the street.

‘…when the prospectus emerges, existingshareholders and any prospective newinvestors can find out more by calling thefree share information line; they will besent a leaflet. Non-shareholders who regis-ter in this way will receive a prospectuswhen it is published; existing shareholderswill be sent one automatically’ [FinancialTimes]

protectionismprotectionism /prə|�tekʃəniz(ə)m/ nounthe practice of protecting producers in thehome country against foreign competitorsby banning or taxing imports or by imposingimport quotasprotective tariffprotective tariff /prə|�tektiv �t�rif/noun a tariff which tries to ban imports tostop them competing with local productspro tempro tem /�prəυ �tem/ adverb temporarily,for a timeprotestprotest /�prəυtest/ noun an official docu-ment which proves that a bill of exchangehas not been paid

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provide 178provideprovide /prə|�vaid/ verb 1. to give or sup-ply something 2. to put money aside inaccounts to cover expenditure or loss in thefuture � £25,000 is provided against baddebts.providentprovident /�prɒvid(ə)nt/ adjective pro-viding benefits in case of illness, old age orother cases of need � a provident fund � aprovident societyprovider of capitalprovider of capital /prə|�vaidər əv�k�pit(ə)l/ noun a person or companywhich provides capital to a business, usuallyby being a shareholderprovisionprovision /prə |�vi (ə)n/ noun an amountof money put aside in accounts for antici-pated expenditure where the timing oramount of expenditure is uncertain, often fordoubtful debts � The bank has made a £2mprovision for bad debts or a $5bn provisionagainst Third World loans.

‘…landlords can create short lets of dwell-ings which will be free from the normalsecurity of tenure provisions’ [Times]

provisionalprovisional /prə|�vi (ə)n(ə)l/ adjectivetemporary, not final or permanent � Thesales department has been asked to make aprovisional forecast of sales. � The provi-sional budget has been drawn up for eachdepartment.provisionallyprovisionally /prə|�vi (ə)nəli/ adverb notfinally � The contract has been acceptedprovisionally.provisionsprovisions /prə|�vi (ə)nz/ plural nounmoney put aside in accounts for anticipatedexpenditure where the timing or amount ofexpenditure is uncertain. If the expenditureis not certain to occur at all, then the moneyset aside is called a ‘contingent liability’.proxyproxy /�prɒksi/ noun 1. a document whichgives someone the power to act on behalf ofsomeone else � to sign by proxy 2. a personwho acts on behalf of someone else � Sheasked the chairman to act as proxy for her.proxy formproxy form /�prɒksi fɔ�m/, proxy card/�prɒksi kɑ�d/ noun a form that sharehold-ers receive with their invitations to attend anAGM, and that they fill in if they want toappoint a proxy to vote for them on a resolu-tionproxy statementproxy statement /�prɒksi �steitmənt/noun a document, filed with the SEC, out-lining executive pay packages, option grantsand other perks, and also giving details ofdealings by executives in shares of the com-panyproxy voteproxy vote /�prɒksi vəυt/ noun a votemade on behalf of someone who is not

present � The proxy votes were all in favourof the board’s recommendation.PRTPRT abbreviation petroleum revenue taxprudenceprudence /�pru�dəns/ noun an accountingapproach that, in cases where there are alter-native procedures or values, favours choos-ing the one that results in a lower profit, alower asset value and a higher liability valueprudentprudent /�pru�dənt/ adjective careful, nottaking any risksprudential ratioprudential ratio /pru|�denʃ(ə)l �reiʃiəυ/noun a ratio of capital to assets which a bankfeels it is prudent to have, according to EUregulationsPSBRPSBR abbreviation Public Sector Borrow-ing RequirementPtyPty abbreviation proprietary companyPty LtdPty Ltd abbreviation private limited com-panypublicpublic /�p�blik/ adjective 1. referring to allthe people in general 2. referring to the gov-ernment or the statePublic Accounts CommitteePublic Accounts Committee /�p�blikə|�kaυnts kə |�miti/ noun a committee of theHouse of Commons which examines thespending of each department and ministrypublic companypublic company /�p�blik �k�mp(ə)ni/noun same as public limited companypublic debtpublic debt /�p�blik �det/ noun themoney that a government or a set of govern-ments owespublic depositspublic deposits /�p�blik di |�pɒzits/ plu-ral noun in the United Kingdom, the govern-ment’s credit monies held at the Bank ofEnglandpublic expenditurepublic expenditure /�p�blik ik |

�spenditʃə/ noun money spent by the localor central governmentpublic financepublic finance /�p�blik �fain�ns/ nounthe raising of money by governments bytaxes or borrowing, and the spending of itpublic fundspublic funds /�p�blik �f�ndz/ pluralnoun government money available forexpenditurepublicity budgetpublicity budget /p�|�blisiti �b�d it/noun money allowed for expenditure onpublicitypublic limited companypublic limited company /�p�blik�limitid �k�mp(ə)ni/ noun a companywhose shares can be bought on the StockExchange. Abbreviation Plc, PLC, plc.Also called public companypublicly held companypublicly held company /�p�blikli held�k�mp(ə)ni/ noun US a company controlledby a few shareholders or its directors, butwhich is quoted on the Stock Exchange andwhich allows the public to hold a few shares

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179 pyramid sellingpublic offeringpublic offering /�p�blik �ɒf(ə)riŋ/ nounan offering of new shares in a corporationfor sale to the public as a way of launchingthe corporation on the Stock Exchangepublic ownershippublic ownership /�p�blik �əυnəʃip/noun a situation in which the governmentowns a business, i.e. where an industry isnationalisedpublic placingpublic placing /�p�blik �pleisiŋ/, publicplacement /�p�blik �pleismənt/ noun anact of offering a new issue of shares toinvesting institutions, though not to privateinvestors in generalpublic sectorpublic sector /�p�blik �sektə/ nounnationalised industries and services � areport on wage rises in the public sector oron public-sector wage settlements Alsocalled government sectorPublic Sector Borrowing RequirementPublic Sector Borrowing Require-ment /�p�blik �sektə �bɒrəυiŋ ri|

�kwaiəmənt/ noun the amount of moneywhich a government has to borrow to pay forits own spending. Abbreviation PSBRpublic spendingpublic spending /�p�blik �spendiŋ/noun spending by the government or bylocal authoritiesPublic TrusteePublic Trustee /�p�blik �tr�|�sti�/ nounan official who is appointed as a trustee of anindividual’s propertypublished accountspublished accounts /�p�bliʃit ə|

�kaυnts/ plural noun the accounts of a com-pany which have been prepared and auditedand then must be published by sending to theshareholders and other interested partiespump primingpump priming /�p�mp �praimiŋ/ noungovernment investment in new projectswhich it hopes will benefit the economypurchase bookpurchase book /�p��tʃis bυk/ noun abook in which purchases are recordedpurchase daybookpurchase daybook /�p��tʃis �deibυk/,purchases daybook /�p��tʃisiz �deibυk/noun a book which records the purchasesmade each daypurchase invoicepurchase invoice /�p��tʃis �invɔis/noun an invoice received by a purchaserfrom a sellerpurchase ledgerpurchase ledger /�p��tʃis �led ə/ nouna book in which purchases are recordedpurchase orderpurchase order /�p��tʃis �ɔ�də/ noun anofficial order made out by a purchasingdepartment for goods which a companywants to buy � We cannot supply you with-out a purchase order number.purchase order lead timepurchase order lead time /�p��tʃis�ɔ�də �li�d �taim/ noun the interval betweenthe placing of an order for raw materials orparts and their being delivered

purchase pricepurchase price /�p��tʃis prais/ noun aprice paid for somethingpurchase requisitionpurchase requisition /�p��tʃis �rekwi|

�ziʃ(ə)n/ noun an instruction from a depart-ment within an organisation to its purchas-ing department to buy goods or services,stating the kind and quantity required, andforming the basis of a purchase orderpurchase taxpurchase tax /�p��tʃis t�ks/ noun a taxpaid on things which are boughtpurchasing departmentpurchasing department /�p��tʃisiŋ di|

�pɑ�tmənt/ noun the section of a companywhich deals with the buying of stock, rawmaterials, equipment, etc.purchasing managerpurchasing manager /�p��tʃisiŋ�m�nid ə/ noun the head of a purchasingdepartmentpurchasing officerpurchasing officer /�p��tʃisiŋ �ɒfisə/noun a person in a company or organisationwho is responsible for buying stock, rawmaterials, equipment, etc.purchasing powerpurchasing power /�p��tʃisiŋ �paυə/noun the quantity of goods which can bebought by a particular group of people orwith a particular sum of money � the pur-chasing power of the school market � Thepurchasing power of the pound has fallenover the last five years.pure endowmentpure endowment /�pjυər in|�daυmənt/noun a monetary gift the use of which isstrictly prescribed by the donorput down phrasal verb 1. to make a deposit� to put down money on a house 2. to writean item in a ledger or an account book � toput down a figure for expensesput up phrasal verb 1. � who put up themoney for the shop? who provided the in-vestment money for the shop to start? � toput something up for sale to advertise thatsomething is for sale � When he retired hedecided to put his town flat up for sale. 2. toincrease something, to make somethinghigher � The shop has put up all its pricesby 5%.put optionput option /�pυt �ɒpʃən/ noun an optionto sell a specified number of shares at a spec-ified price within a specified period of time.Also called putPVPV abbreviation present valuepyramid sellingpyramid selling /�pirəmid �seliŋ/ nounan illegal way of selling goods or invest-ments to the public, where each selling agentpays for the franchise to sell the product orservice, and sells that right on to otheragents together with stock, so that in the endthe person who makes the most money is theoriginal franchiser, and sub-agents or inves-tors may lose all their investments

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pyramid selling 180‘…much of the population had committedtheir life savings to get-rich-quick pyramidinvestment schemes – where newcomers

pay the original investors until the moneyruns out – which inevitably collapsed’[Times]

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qualification /�kwɒlifi|�keiʃ(ə)n/ noun adocument or some other formal proof of thefact that someone has successfully com-pleted a specialised course of study or hasacquired a skill � You must have the rightqualifications for the job. � Job-hunting isdifficult if you have no qualifications.

‘…personnel management is not an activ-ity that can ever have just one set of quali-fications as a requirement for entry into it’[Personnel Management]

qualification of accounts

qualification of accounts/�kwɒlifikeiʃ(ə)n əv ə |�kaυnts/ noun sameas auditors’ qualificationqualified

qualified /�kwɒlifaid/ adjective 1. havingpassed special examinations in a subject �She is a qualified accountant. � We haveappointed a qualified designer to supervisethe decorating of the new reception area. 2.with some reservations or conditions �qualified acceptance of a contract � Theplan received qualified approval from theboard.

‘…applicants will be professionally quali-fied and ideally have a degree in Com-merce and postgraduate managementqualifications’ [Australian FinancialReview]

qualified acceptance of a bill

qualified acceptance of a bill/�kwɒlifaid ək|�septəns əv ə �bil/ noun anagreement to pay a bill of exchange pro-vided that certain conditions are metqualified accounts

qualified accounts /�kwɒlifaid ə|

�kaυnts/ plural noun accounts which havebeen noted by the auditors because they con-tain something with which the auditors donot agreequalified domestic trust

qualified domestic trust /�kwɒlifaiddə|�mestik tr�st/ noun a trust for the non-citizen spouse of a US citizen, affording taxadvantages at the time of the citizen’s deathqualified valuer

qualified valuer /�kwɒlifaid �v�ljυə/noun a person conducting a valuation whoholds a recognised and relevant professional

qualification and has recent post-qualifica-tion experience, and sufficient knowledge ofthe state of the market, with reference to thelocation and category of the tangible fixedasset being valuedqualifying distribution

qualifying distribution /�kwɒlifaiiŋ�distri|�bju�ʃ(ə)n/ noun a payment of a div-idend, or other distribution of profits, thatwas subject, in the UK, to advance corpora-tion tax before it was scrapped in 1999qualifying period

qualifying period /�kwɒlifaiiŋ �piəriəd/noun a time which has to pass before some-thing or someone qualifies for something,e.g. a grant or subsidy � There is a six-month qualifying period before you can geta grant from the local authority.qualifying shares

qualifying shares /�kwɒlifaiiŋ �ʃeəz/plural noun the number of shares you needto earn to get a bonus issue or to be a directorof the company, etc.qualitative factors

qualitative factors /�kwɒlitətiv�f�ktəz/ plural noun factors that inform abusiness decision but cannot be expressednumericallyquality assurance

quality assurance /�kwɒliti ə|�ʃυərəns/noun the procedures that a company uses toensure compliance with a quality standardquality control

quality control /�kwɒliti kən|�trəυl/noun the process of making sure that thequality of a product is goodquality costs

quality costs /�kwɒliti kɒsts/ pluralnoun costs incurred when goods producedor services delivered fail to meet qualitystandardsquango

quango /�kw�ŋ�əυ/ noun an officialbody, set up by a government to investigateor deal with a special problem (NOTE: Theplural is quangos.)quantifiable

quantifiable /�kwɒntifaiəb(ə)l/ adjectivepossible to quantify � The effect of thechange in the discount structure is not quan-tifiable.

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quantitative factors 182quantitative factorsquantitative factors /�kwɒntitətiv�f�ktəz/ plural noun factors that inform abusiness decision but cannot be expressednumericallyquantity discountquantity discount /�kwɒntiti�diskaυnt/ noun a discount given to peoplewho buy large quantitiesquantum meruitquantum meruit /�kw�ntυm �meruit/phrase a Latin phrase meaning ‘as much ashas been earned’quarterquarter /�kwɔ�tə/ noun 1. one of fourequal parts (25%) � She paid only a quarterof the list price. 2. a period of three months� The instalments are payable at the end ofeach quarter.

‘…corporate profits for the first quartershowed a 4 per cent drop from last year’sfinal three months’ [Financial Times]‘…economists believe the economy ispicking up this quarter and will do betterstill in the second half of the year’ [SundayTimes]

quarter dayquarter day /�kwɔ�tə dei/ noun a day atthe end of a quarter, when rents, fees etc.should be paidquarterlyquarterly /�kwɔ�təli/ adjective, adverbhappening once every three months � Thereis a quarterly charge for electricity. � Thebank sends us a quarterly statement. � Weagreed to pay the rent quarterly or on aquarterly basis.quarterly reportquarterly report /�kwɔ�təli ri |�pɔ�t/noun the results of a corporation, producedeach quarterquartilequartile /�kwɔ�tail/ noun one of a series ofthree figures below which 25%, 50% or 75%of the total fallsquasi-quasi- /kweizai/ prefix almost or whichseems like � a quasi-official bodyquasi-loanquasi-loan /�kweizai �ləυn/ noun anagreement between two parties where oneagrees to pay the other’s debts, provided thatthe second party agrees to reimburse the firstat some later datequasi-public corporationquasi-public corporation /�kweizai�p�blik �kɔ�pə|�reiʃ(ə)n/ noun a US institu-tion which is privately owned, but whichserves a public function, such as the FederalNational Mortgage Associationqueuequeue /kju�/ noun 1. a line of people wait-ing one behind the other � to form a queueor to join a queue � Queues formed at thedoors of the bank when the news spreadabout its possible collapse. (NOTE: The USterm is line.) 2. a series of documents suchas orders or application forms which aredealt with in order � verb to form a line oneafter the other for something � When food

was rationed, people had to queue for bread.� We queued for hours to get tickets. � A listof companies queueing to be launched onthe Stock Exchange. � The candidatesqueued outside the interviewing room.quick assetquick asset /�kwik ��set/ noun an assetthat can be converted into cash relativelyquicklyquick ratioquick ratio /�kwik �reiʃiəυ/ noun same asliquidity ratioquidquid /kwid/ noun one pound Sterling(slang)quid pro quoquid pro quo /�kwid prəυ �kwəυ/ nounmoney paid or an action carried out in returnfor something � She agreed to repay theloan early, and as a quid pro quo the bankreleased the collateral.quorumquorum /�kwɔ�rəm/ noun a minimumnumber of people who have to be present ata meeting to make it validquotaquota /�kwəυtə/ noun a limited amount ofsomething which is allowed to be produced,imported, etc.

‘Canada agreed to a new duty-free quotaof 600,000 tonnes a year’ [Globe and Mail(Toronto)]

quota systemquota system /�kwəυtə �sistəm/ noun 1.a system where imports or supplies are reg-ulated by fixed maximum amounts 2. anarrangement for distribution which allowseach distributor only a specific number ofitemsquotationquotation /kwəυ|�teiʃ(ə)n/ noun an esti-mate of how much something will cost �They sent in their quotation for the job. �Our quotation was much lower than all theothers. � We accepted the lowest quotation.quotequote /kwəυt/ verb 1. to repeat words or areference number used by someone else �He quoted figures from the annual report. �She replied, quoting the number of theaccount. 2. to estimate what a cost or priceis likely to be � to quote a price for supply-ing stationery � Their prices are alwaysquoted in dollars. � He quoted me a price of£1,026. � noun an estimate of how muchsomething will cost (informal) � to givesomeone a quote for supplying computers �We have asked for quotes for refitting theshop. � Her quote was the lowest of three.quoted companyquoted company /�kwəυtid�k�mp(ə)ni/ noun a company whose sharescan be bought or sold on the Stock Exchangequoted investmentsquoted investments /�kwəυtid in |

�vestmənts/ plural noun investments whichare listed on a stock exchangequote-driven systemquote-driven system /�kwəυt�driv(ə)n �sistəm/ noun a system of work-

Accounting.fm Page 182 Tuesday, February 13, 2007 1:40 PM

Page 190: Dictionary of Accounting: Over 6,000 Terms Clearly Defined (Dictionary)

183 quoted sharesing a stock market, where marketmakersquote a price for a stock. Compare order-driven system

quoted sharesquoted shares /�kwəυtid �ʃeəz/,quoted stocks plural noun shares whichcan be bought or sold on the Stock Exchange

Accounting.fm Page 183 Tuesday, February 13, 2007 1:40 PM