TOEIC Vocabulary - accounting & finance
In this article, you will learn about TOEIC vocabulary words related to accounting & finance topic. A good command of English vocabulary is extremely important in scoring well on all sections of the TOEIC. We strongly recommend that you study these vocabulary words to prepare for the TOEIC exam. While studying vocabulary words, you should write the words in a notebook, say the words and sentences many times, and try to create your own setences using the words.
accountant
/əˈkaʊn.t̬ənt/ play_circle_filledAn accountant is a person whose job is to keep, inspect, and analyze financial accounts.
- She has been an accountant all her working life.
- Do I need to be good at math to be an accountant?
- Her accountant was good at exploiting tax loopholes.
- His accountant had been cooking the books for years.
W: Have you heard? Jeremy got fired for stealing from the company. I can't believe it. He seems such a nice guy. M: Yeah, he'd been cooking the books for years. |
- As an accountant, my job is to prepare tax returns for the clients and find ways to reduce the company's expenses.
accounting
/əˈkaʊn.t̬ɪŋ/ play_circle_filledAccounting is the process or work of keeping financial accounts.
- I recently started a small business on the side, and I really need some advice on accounting.
- I am considering a career in accounting.
- I have an undergraduate degree in accounting and finance.
- My brother is an auditor for a big accounting firm.
- Our priority is the modernization and upgrade of the accounting system.
- Small business owners benefit from accounting software because it helps them track accounts receivable and accounts payable. As a result, small business owners will have a clear understanding of their profitability.
- Advances in information technology have affected traditional accounting methods and practices. The most significant impact IT has made on accounting is the ability of companies to use computerized systems to track and record financial transactions.
Good morning, Mr. Wallace. It's Mia calling from the accounting team. I received your reimbursement request for the office supplies you bought. Just one problem. You filled out the form correctly, but you forgot to attach the store receipt. I'm afraid I can't issue you any money until the receipt is submitted. |
bankrupt
/ˈbæŋ.krʌpt/ play_circle_filledPeople or organizations that go bankrupt do not have enough money to pay their debts.
- The recession has led to many small businesses going bankrupt.
- The business went bankrupt after investing an enormous amount on a product that failed to sell.
- We will go bankrupt if we keep piling up debts.
- The recession has led to the bankruptcy of many small businesses.
- On June 1, 2009, General Motors filed for bankruptcy in New York, with $82 billion in assets and $173 billion in liabilities. It was the third-largest in U.S. history and the largest ever in U.S. manufacturing.
- After losing money for three years, the company declared bankruptcy.
- The company went through several ownership changes before declaring bankruptcy in 2015.
debt
/det/ play_circle_filledDebt is something that is owed, such as money, goods, or services (Noun). The following phrases are often used: (1) Run up debts (2) Get into debt (3) Be in debt (4) Get out of debt (5) Be in debt to + someone (6) Pay off debts
- The company has run up huge debts. They will soon go bankrupt.
- Our company was in debt a couple of years ago but is now turning a profit.
- Our company is deep in debt.
- Our company is in debt to the bank.
- I am in debt to the bank for my car loan.
- He got into debt after he lost his job.
- He's been working three jobs in an attempt to get out of debt.
- Nearly 50 percent of Americans are falling deeper into debt because of rising inflation. Cars, college, houses, and medical care have become steadily more costly, but incomes have been largely stagnant for two decades.
- With inflation hitting a 40-year high in June, many young adults and families with young children expect to add to their debt in the next six months in order to make ends meet.
overheads
/ˈəʊvəhedz/ play_circle_filledOverhead (US) or overheads (UK) = the regular and necessary costs, such as rent, heat, electricity, and telephone, involved in operating a business (Noun)
- Many businesses are moving out of New York because the overheads there are so high.
- Their offices are in London so the overheads are very high.
Overhead costs = overhead expenses (Compound noun)
- One way of increasing profit margins is to cut overhead costs.
- Companies should review overhead costs regularly to determine how to increase profitability. If business becomes quiet, cutting back on overhead usually becomes the easiest way to reduce expenses.
- There are a substantial number of overhead costs associated with running a movie theater, including the salaries of the projectionists, concession workers, ticket sellers, ushers, managers, and maintenance crews. That is why snacks cost so much in movie theaters.
payroll
/ˈpeɪ.roʊl/ play_circle_filled1. Payroll = a list of the people employed by a company showing how much each one earns (Countable Noun)
- They cut her from their payroll.
Be on the payroll = be employeed at a company
- His company has over 3,000 employees on the payroll.
- Lucy is currently on the payroll of a small advertising agency.
2. Payroll = the total amount of money paid to the people employed by a particular company (Countable Noun)
- The company has cut its total payroll by 12% since the merger.
- The annual payroll of the college is about $ 4 million.
- The firm is growing fast with a monthly payroll of $1 million.
quarterly
/ˈkwɔːr.t̬ɚ.li/ play_circle_filledQuarterly = occurring once every quarter of a year.
Quarterly as an adjective
- A publicly-traded company is required to file financial reports on a quarterly basis.
- We haven't been meeting our quarterly sales projections.
- The company has observed a major upsurge in its value, as its quarterly revenue reports are improving significantly.
Quarterly as an adverb
- The journal was published quarterly until 2005, when it became bimonthly.
- Under the terms of the lease, the rent is payable quarterly.
audit
/ˈɑː.dɪt/ play_circle_filled1. Audit = make an official examination of the accounts of a business and produce a report (Verb)
- They audit our company's accounts each year.
- We have finished auditing our company's account. Everything seems to be correct
2. Audit = an official examination of the accounts of a business (Countable noun)
- The audit of our company's account was completed yesterday.
- We carry out a full internal audit once a year.
- We are going to conduct an audit of the accounts for the year 2019/20 tomorrow.
3. Audit = go to a class without being tested or receiving a grade at the end (Verb)
- To audit a class you need to go through the registration process. To sit-in in a class, you only need to talk to the instructor before the class starts.
- Many colleges allow auditing in their courses. But since you're paying for it, you might as well go the extra mile and get credit for your work.
auditor
/ˈɑː.də.t̬ɚ/ play_circle_filledAuditer = someone whose job is to carry out an official examination of the accounts of a business and to produce a report
- The company's accounts were checked twice over, the second time by an independent auditor.
- My brother is an auditor for a big accounting firm.
bookkeeping
/ˈbʊkˌkiː.pɪŋ/ play_circle_filledBookkeeping = the activity or occupation of keeping records of the financial affairs of a business. (Noun)
- My aunt has been doing the bookkeeping for a small company for the past fifteen years.
- As our business grows to include more customers, vendors, and employees, keeping track of finances on our own becomes more challenging. That is why we've decided to hire someone to do the bookkeeping.
- While some small business owners do their own bookkeeping, other small businesses hire a bookkeeper or employ a small accounting department with data entry clerks reporting to the bookkeeper.
- Effective bookkeeping will keep the tax affairs at ease and businesses can easily calculate the exact amount of taxes to be paid.
- During the review, auditors reviewed every bookkeeping entry over 1 million dollars from 1995 to the present.
deficit
/ˈdef.ə.sɪt/ play_circle_filledDeficit = the amount by which money spent is more than money received. (Countable Noun)
- Our company has a deficit of 3 million dollars this year.
- The government is facing a deficit of $3 billion.
- The UK's deficit in manufactured goods fell slightly in the last three months.
Trade deficit = the amount by which the cost of a country's imports exceeds the value of its exports.
- The country is running a trade deficit of $250 million.
- Spain ran a trade deficit of €4.76 billion in May of 2022.
- Due to soaring energy costs and the yen's weakness against the dollar, Japan recorded a trade deficit in April as its import price rose by 28%.
trade surplus = the amount by which the value of a country's exports exceeds the cost of its imports.
- The country is running a trade surplus of $250 million.
- Germany recorded a €7.7 billion trade surplus in June of 2022.
expenditure
/ex-pen-di-ture/ [ih0.k.s.p.eh1.n.d.ah0.ch.er0] /ɪkˈspen.də.tʃɚ/ play_circle_filledExpenditure is money spent on something. Expenditure is often used when people are talking about budgets. It is the government's job to decide what to do with tax money collected, or in other words, to determine the expenditure of public funds. The word is more than a long way of saying expense. In business, expenditure implies an investment, something that will bring value over time.
Here are some example sentences using the word expenditure:
- There's a significant increase in military expenditure last year.
- In 2020, the total expenditure on education in Taiwan increased to around 928.4 billion New Taiwan dollars.
- The company allocated a huge part of its expenditure on its expansion project.
expense
/ex-pense/ [ih0.k.s.p.eh1.n.s] /ɪkˈspens/ play_circle_filledAn expense is a cost, but you can also use this word to mean the figurative cost of something. When you give one thing up in order to get something else, its cost or sacrifice is the expense of getting what you want. Take a look at these sentences using the word expense to represent
- Overhead expenses are what it costs to run a business, including rent, insurance, and utilities.
- Many businesses are moving out of New York because the overhead expenses there are so high.
- The company's cost-cutting program is expected to reduce expenses by $20 million next year.
- Our company will reimburse employees for travel expenses.
- I'm concerned about the project's hidden expenses.
- Our paychecks barely cover our monthly expenses.
- Their expenses were getting far ahead of their income.
- Our biggest expense this year was our Christmas holiday.
- According to the Ministry of Finance, the basic living expenses per person for 2021 are NT$192,000, which applies to deductions on individual income tax to be filed in May of 2022
The word expense is often used after the preposition “at”. For example:
- These items were imported at considerable expense.
- We were able to fix the problem at very little expense.
There are several phrases used with the word expense. Let's take a look:
- at the expense of
- at someone's expense
- go to (the) expense
The first phrase, “at the expense of” means in a way that harms (something or someone).
Here are some example sentences:
- Malls flourished at the expense of small stores downtown.
- She acquired power at the expense of friendships.
The second phrase, “at someone's expense” means paid for by someone. Take a look at the example sentences below:
- The tour is free, but all meals are at your own expense. [=you must pay for your meals]
The last phrase, “go to the expense” means to spend money on something.
Ok! Let's look at some examples:
- Why go to the expense of installing something you'll never use?
- She went to great expense to have this party.
reimburse
/ˌriː.ɪmˈbɝːs/ play_circle_filledReimburse = pay back money to someone who has spent it for you or lost it because of you
(1) Reimburse + person + for + the amount of money
(2) Reimburse + the amount of money
- The airline will reimburse me for the amount they have overcharged me.
- The airline will reimburse the airfare.
- The insurance company will reimburse you for your car damage.
When a company reimburse an employee for certain expenses, the company pays back an employee for money they spent out of their pocket for business expenses such as expenses spent on a business trip.
- Our company will reimburse employees for travel expenses.
- Our company will reimburse travel expenses.
reimbursement
/ˌriː.ɪmˈbɝːs.mənt/ play_circle_filled1. Reimbursement = the act of paying back money to someone who has spent it for you or lost it because of you, or the amount that is paid back:
- I just received reimbursement from the insurance company the day before yesterday
- Insurance companies will not provide any reimbursement before the insurance premium is paid in full.
2. Reimbursement = compensation paid by an organization for out-of-pocket expenses incurred or overpayment made by an employee
Good morning, Mr. Wallace. It's Mia calling from the accounting team. I received your reimbursement request for the office supplies you bought. Just one problem. You filled out the form correctly, but you forgot to attach the store receipt. I'm afraid I can't issue you any money until the receipt is submitted. |
More example sentences
- I want to claim reimbursement for my travel expenses.
- I want my travel expenses to be reimbursed.
- I want to be reimbursed for my travel expenses.
- I want to claim reimbursement.
- I want to file a claim for reimbursement.
TOEIC Vocabulary Exercise
Ready to test out the words we've gone over? Let's jump into a fun vocab challenge! You'll listen to English sentences and try to type them out. Think of it as a brain workout! Doing this can really help you remember the words better and boost your speaking and writing skills. Plus, it'll make you more confident in tests and everyday chats. Sounds good? Let's dive in!
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