Daily English vocabulary words for Bank and Finances
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Vocabulary |
Definition |
Example |
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Accounting / Accountancy Accounting department |
Accounting refers to the skill or activity of keeping records of the money a person or organization earns and spends while the accounting department is the section of an organization that is responsible in the doing the same. |
Sharon studied accounting in college so she would be able to structure and organize the accounting department of her own company. |
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An approval |
Refers to acceptance |
His application for an education loan was approved by the bank however, his medical policy wasn’t approved by the insurance company. |
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Assets |
Assets can be referred to resources with economic value owned by an individual or entity, with the expectation that these will generate future benefit. |
The company has assets worth a 2 million which in turn enables it to keep its employees happy. |
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Liabilities |
Liabilities are referred to a legal obligation that binds an individual or entity to transfer economic benefits such as money, goods or services to another individual or entity over time. |
The franchise has liabilities worth 1 million which it would have to recover within the next two years. |
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A broker |
a person who buys and sells foreign currency, shares in companies, etc., for other people |
I called my broker for advice about investing in the stock market. |
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The balance |
Refers to the closing amount generated by the company at the end of each day’s operations |
The company’s closing balance is consistent showing a positive growth. |
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A bank statement |
a record of the money put deposited and withdrawn from a bank account |
I need to check my bank statement to verify if all transactions have been taken into consideration. |
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Bankruptcy to go bankruptcy / to go bust ( US ) |
a situation in which a business or a person becomes bankrupt meaning loses all his money and assets. |
As a result of recession, the company had to terminate employees otherwise it would have been forced into bankruptcy. |
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To close down |
the process of ending the operations of a business, system, industry, etc. either temporarily or permanently |
The partial government close-down is now in a record 20th day. |
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To file for bankruptcy |
It is referred to a legal way of proclaiming that you are unable to pay your bills/debts. |
In United States companies are obliged to file for bankruptcy if they are not able to pay their debts. |
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A benefit |
Refers to desirable and measurable outcome or result from an investment or action. |
The company benefited more from investing its shares in real estate. |
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A bid |
Refers to an offer of a particular amount of money for something that is up for sale |
I made a bid of $150 for the painting. |
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The bottom line |
the final line in the accounts of a company or organization, stating the total profit or loss that has been made |
How will the rise in interest rates affect our bottom line? |
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Charity / Charities ( pluriel ) |
a system of offering money, food, or any kind of help to those who are in need or to any organization that has the purpose of providing money or helping in this way. |
Proceeds from the sale of these cards will go to (= be given to) local charities. UNICEF is an international charity. |
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The core market |
The primary area on which a company was founded on is referred to as a core market. |
Samsung’s core market is smartphones but they are also into developing other sectors as perceived business opportunities arise. |
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Franchising agreement |
It is a legally binding agreement which outlines the franchisor’s terms and conditions for the franchisee. In other words, in a franchising agreement, a franchisor grants the franchisee the right to use the franchisor’s system and proprietary marks to operate a franchised business. |
With the help of its franchising agreement, companies like KFC & Pizza Hut can have franchise outlets around the world. |
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Change |
Refers to the difference between the current price and the previous day’s settlement price. |
The company decided to slash its prices. There is a difference of 50 euros from the price for which the product was sold yesterday. |
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Cost effective |
Refers to value for money |
It wouldn’t be cost-effective to turn my hobby into my profession. |
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A currency |
the official money that is used in a country for exchange of goods and services. |
Get some currency converted to cover incidentals like the taxi fare, hotel charges etc during your travel. |
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A deposit |
Refers to putting money into your bank account. |
Yesterday, I deposited 100 euros to my back account. |
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To dissolve a company |
means to officially or formally close the business or the operations of a company |
The first step to dissolve a company is for the owners to create a resolution to dissolve. |
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An estimate |
Refers to a guess or a rough indication or calculation of the cost, size, value, etc. of something |
Government sources estimate a long-term 50 percent increase in rail fares. |
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A figure |
the symbol for a number or an amount expressed in numbers |
Can you read this figure? Is it a three digit or an eight digit number? |
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Funds |
Refers to an investment / money for a specific purpose |
I’m short of/low on funds at the moment. |
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Growth |
Growth refers to the progress made by an individual or a company and is directly proportional to profits. |
The company has been showing a steady growth in the last six months. |
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An instalment |
Refers to one of the several parts of an amount of money owed that is to be repaid at different times until the whole sum is paid. |
For the next two years, I have to pay an instalment of 200 euros every month to a bank that had financed my higher studies. |
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An investment |
the process of putting money, effort and time into something in order to make a profit or get an advantage. |
The government wanted an inflow of foreign investment in order to create more jobs. |
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An investor |
a person who puts money into something in order to make a profit or get an advantage |
A New York investor offered to acquire the company’s shares for $13 each. |
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A remittance |
an amount of money that you send to someone back in your home country. |
She sends a small remittance home to her parents every month. |
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A loan |
an amount of money that is borrowed, often from a bank, and has to be paid back, either in one shot or in installments with an extra amount of money called interest that you have to pay as a fee for borrowing |
She’s trying to get a $50,000 loan to start her own business. |
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A merger |
an occasion when two or more companies join together to make one larger company |
She’s an attorney who advises companies about mergers and takeovers. |
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An overdraft |
an amount of money that a customer with a bank account is temporarily allowed to owe to the bank, or the agreement that allows this |
The bank offers overdraft facilities upto 300 euros. |
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To be overdrawn |
having taken more money out of your bank account than the account contained, or (of a bank account) having had more money taken from it than was originally in it |
They were overdrawn by £150, so they couldn’t write any cheques. |
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To be in the red |
If you or your bank account are in the red, you owe money to the bank. |
Jonathan was in the red for 3 years but finally he paid back all the amount to the bank. |
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Overhead ( costs ) (GB ) Overheads (US ) |
the regular and necessary costs, such as rent and heating, that are involved in operating a business |
Many businesses are moving out of New York because the overheads there are so high. |
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Profitable |
Refers to resulting in or likely to result in a profit or an advantage |
I made profitable use of my time (= used my time to get advantages or benefits), mixing with a lot of different people and practicing my Spanish. |
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Quote |
Refers to a sum fixed and that needs to be paid for doing a piece of work. |
He quoted 100 euros to get the work done. |
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A quote |
the price that a person or company says they will charge to do a piece of work |
I asked several companies to give me a quote for the building work. |
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To quote |
Refers to state a price, especially one that will be paid for doing a piece of work |
The architect has quoted £90,000 to build a patio. |
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Revenue |
the income that a government or company receives regularly |
Taxes cover most of the government’s revenue. |
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A share /a stock-option |
A stock option refers to a contract for the right to buy and sell shares at a later date or within a certain period at a particular price. Shares refer to holding small assets of a company. |
It’s like persuading people to buy stock options back immediately after the 1987 stock market crash. |
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A shareholder /a stock-holder |
Refers to a person who owns shares in a company and therefore gets part of the company’s profits and the right to vote on how the company is controlled. |
Shareholders will be voting on the proposed merger of the companies next week. |
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The Stock Exchange |
a place where shares in companies are bought and sold, or the organization of people whose job is to do this buying or selling |
They bought some shares on the London stock exchange. |
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Sustainable development |
Refers to supporting an economy via renewable resources |
Education for Sustainable Development allows every human being to acquire the knowledge, skills, attitudes and values necessary to shape a sustainable future. |
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To streamline |
Refers to structuring a process in order to avoid loop holes and improve efficiency. |
Demonetization in India recently has helped in streamlining the cash flow and break the grip of corruption and black money. |
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To subsidize |
Is to pay part of the cost of something and sell it at a lower cost. |
£50 would help to subsidize the training of an unemployed teenager. |
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To take over |
Refers to begin to have control of something |
The firm was badly in need of restructuring when she took over. |
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The turnover |
the amount of business that a company does in a period of time |
Large supermarkets have high turnovers |
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To take over a company |
Refers to taking control of a company by buying most of its shares. |
The firm has been taken over by one of its main competitors. |
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Valuables |
Refers to important assets of a company accountable for revenue. |
The company has acquired a large number of valuables in recent months worth significant revenue. |
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To withdraw money |
Refers to taking out cash from your bank account. |
I would like to withdraw a hundred pounds from my account. |
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Winding up |
Refers to the process of closing a business that is unsuccessful and has debts that it cannot manage. |
The company was ordered by the court to wind up as it was unable to pay its debts for a long time. |
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