Financial and Accounting English: 25 words with examples
B1–C125 words
Read reports and discuss company finances with greater precision. Learn the difference between profit, cash flow and other frequently confused terms.
Where you will use it: Financial reports, bookkeeping and business discussions.
Financial and Accounting English — The word list
| Word | Meaning |
|---|---|
| asset | Something valuable owned by a person or business.“The building is a company asset.” |
| liability | A financial obligation owed to another party.“The loan is recorded as a liability.” |
| equity | The owners' residual interest after liabilities.“Equity increased during the year.” |
| revenue | Income earned from business activities.“Revenue rose in the second quarter.” |
| expense | A cost incurred in running a business.“Rent is a monthly expense.” |
| profit | The amount left after expenses are deducted from income.“The company reported a small profit.” |
| loss | The amount by which expenses exceed income.“The store made a loss last year.” |
| cash flow | Money moving into and out of a business.“Positive cash flow helps pay suppliers.” |
| balance sheet | A statement of assets, liabilities and equity.“Review the balance sheet before investing.” |
| income statement | A report of income and expenses over a period.“The income statement shows annual profit.” |
| ledger | A record of financial transactions by account.“Record the payment in the ledger.” |
| journal entry | A record of a transaction using account debits and credits.“Post the journal entry today.” |
| debit | An accounting entry on the left side of an account.“The asset account received a debit.” |
| credit | An accounting entry on the right side of an account.“The revenue account received a credit.” |
| accounts receivable | Money customers owe a business.“Accounts receivable increased this month.” |
| accounts payable | Money a business owes its suppliers.“Accounts payable are due next week.” |
| accrual | Recording income or expenses when earned or incurred.“The accrual records unpaid wages.” |
| depreciation | Allocating a tangible asset's cost over its useful life.“Annual depreciation reduces book value.” |
| amortization | Allocating an intangible asset's cost over time.“The patent has an amortization schedule.” |
| budget | A plan for income and spending.“The project is within budget.” |
| forecast | An estimate of future financial results.“Update the revenue forecast.” |
| audit | An independent examination of financial records.“The annual audit begins in May.” |
| reconciliation | Checking records agree and resolving differences.“Bank reconciliation revealed a missing entry.” |
| interest | A charge paid for borrowing money.“The loan carries fixed interest.” |
| break-even point | The sales level at which income equals total costs.“We reached the break-even point in June.” |
Useful learning tips
- Learn in small groupsTake five words at a time and review them before adding more.
- Say the examples aloudReading each sentence aloud connects spelling, sound and meaning.
- Write your own sentenceUse each word in a true sentence about your life or work.
How to study this list
Add five or six of these words a day rather than the whole list at once, keep the example sentence on the card, and review them when they come due. WordNest schedules each word across seven growing intervals — same day, then 1, 3, 7, 14, 30 and 60 days — so the list is still with you months later. Read how spaced repetition works if you want the reasoning behind those numbers.
Studying financial and accounting english pairs well with our English for Software Engineers and Business English, or browse all free English word lists.
Related guides
Questions about this list
How can I practise Financial and Accounting English?
Start with five words and say each example aloud. Then recall the word from its meaning and review it over several days.
Where can I use Financial and Accounting English?
Financial reports, bookkeeping and business discussions.
How many words are in this list?
This list contains 25 English words with definitions and example sentences. It is a starting set, not a complete syllabus.
Turn this list into flashcards
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