Dictionary of Accounting Terms Barron''''s Business Guides_3 doc

a specific piece of equipment fixed budget budget which refers to a specific level of business, i.e., a sales turnover which pro-duces a specific level of profit fixed capital fixed capi

fittings 98

‘…last fiscal year the chain reported a

116% jump in earnings’ [Barron’s]

fittings

fittings /fitiŋz/ plural noun items which

are sold with a property but are not

perma-nently fixed, e.g carpets or shelves 쒁

fix-tures

fixed assets

fixed assets /fikst sets/ plural noun

property or machinery which a company

owns and uses, but which the company does

not buy or sell as part of its regular trade,

including the company’s investments in

shares of other companies

fixed asset turnover

fixed asset turnover /fikst set

tnəυvə/ noun a measure of how efficient

a company’s property and equipment is in

generating revenue

fixed asset unit

fixed asset unit /fikst set junit/

noun a single item of the fixed assets of a

company, e.g a specific piece of equipment

fixed budget

budget which refers to a specific level of

business, i.e., a sales turnover which

pro-duces a specific level of profit

fixed capital

fixed capital /fikst kpit(ə)l/ noun

capital in the form of buildings and

machin-ery

fixed charge

charge over a particular asset or property

fixed costs

fixed costs /fikst kɒsts/ plural noun

business costs which do not change with the

quantity of the product made

fixed deduction

fixed deduction /fikst di|dkʃən/ noun

a deduction agreed by the Inland Revenue

and a group of employees, such as a trade

union, which covers general expenditure on

clothes or tools used in the course of

employment

fixed deposit

fixed deposit /fikst di|pɒzit/ noun a

deposit which pays a stated interest over a

set period

fixed exchange rate

fixed exchange rate /fikst iks|

reit/ noun a rate of exchange of one

cur-rency against another which cannot

fluctu-ate, and can only be changed by devaluation

or revaluation

fixed expenses

fixed expenses /fikst ik|spensiz/

plu-ral noun expenses which do not vary with

different levels of production, e.g rent, staff

salaries and insurance

fixed income

fixed income /fikst inkm/ noun

income which does not change from year to

year, as from an annuity

fixed-interest

fixed-interest /fikst intrəst/ adjective

having an interest rate which does not vary

fixed-interest investments

fixed-interest investments /fikst

intrəst investmənts/ plural noun

invest-ments producing a level of interest whichdoes not change

fixed-interest securities

fixed-interest securities /fikst

intrəst si|kjυəritiz/ plural noun securities

such as government bonds which produce alevel of interest which does not changefixed-price

fixed-price /fikst prais/ adjective

hav-ing a price which cannot be changedfixed-price agreement

fixed-price agreement /fikst prais ə|

rimənt/ noun an agreement where a

company provides a service or a product at aprice which stays the same for the wholeperiod of the agreement

fixed rate

fixed rate /fikst reit/ noun a rate, e.g an

exchange rate, which does not changefixed rate loan

fixed rate loan /fikst reit ləυn/ noun a

loan on which the rate of interest stays thesame for the duration of the loan

fixed scale of charges

fixed scale of charges /fikst skeil əv

/ noun a set of charges that do not

vary according to individual circumstancesbut are applied consistently in all cases of aparticular kind

fixed yield

fixed yield /fikst jild/ noun a

percent-age return which does not changefixtures

fixtures /fikstʃəz/ plural noun items in a

property which are permanently attached to

it, e.g sinks and lavatoriesfixtures and fittings

fixtures and fittings /fikstʃəz ən

fitiŋz/ plural noun objects in a property

which are sold with the property, both thosewhich cannot be removed and those whichcan Abbreviation f & f.

flash report

flash report /flʃ ri|pɔt/ noun an

interim financial report produced before thefull accounts have been drawn up, and used

to identify or resolve potential problemsflat

flat /flt/ adjective 1 used to describe

mar-ket prices which do not fall or rise, because

of low demand 쑗 The market was flat today

2. not changing in response to different ditions 쑗 a flat rate

con-‘…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’ [Sunday

Times]

flat rate

flat rate /flt reit/ noun a charge which

always stays the same 쑗 a flat-rate increase

each quarter.

flat tax

flat tax /flt tks/ noun a tax levied at

one fixed rate whatever an individual’sincome

99 forecast

flat yield

flat yield /flt jild/ noun an interest rate

as a percentage of the price paid for

fixed-interest stock

flex

flex /fleks/ verb to adjust figures in order to

reflect changes in circumstances since the

original figures were produced 쑗 flexing a

budget

flexibility

flexibility /fleksi|biliti/ noun the ability

to be easily changed 쑗 There is no flexibility

in the company’s pricing policy.

‘…they calculate interest on their

‘flexi-ble’ mortgage on an annual basis rather

than daily Charging annual interest makes

a nonsense of the whole idea of flexibility

which is supposed to help you pay off your

mortgage more quickly’ [Financial Times]

flexible

flexible /fleksib(ə)l/ adjective possible to

alter or change 쑗 We try to be flexible where

company has adopted a flexible pricing

pol-icy.

flexible budget

noun a budget which changes in response to

changes in sales turnover or output

flight of capital

flight of capital /flait əv kpit(ə)l/

noun a rapid movement of capital out of one

country because of lack of confidence in that

country’s economic future

flight to quality

flight to quality /flait tə kwɒliti/ noun

a tendency of investors to buy safe blue-chip

securities when the economic outlook is

uncertain

float

float /fləυt/ noun 1 cash taken from a

cen-tral supply and used for running expenses 쑗

the process of starting a new company by

selling shares in it on the Stock Exchange 쑗

The float of the new company was a

currency to settle at its own exchange rate,

without any government intervention 4. the

period between the presentation of a cheque

as payment and the actual payment to the

payee, or the financial advantage provided

by this period to the drawer of a cheque 쐽

verb to let a currency settle at its own

exchange rate on the international markets

and not be fixed 쑗 The government has let

decided to float the pound.

floating

floating /fləυtiŋ/ adjective not fixed 쑗

‘…in a world of floating exchange rates

the dollar is strong because of capital

inflows rather than weak because of the

nation’s trade deficit’ [Duns Business

Month]

floating capital

floating capital /fləυtiŋ kpit(ə)l/

noun the portion of capital invested in rent assets, as distinct from that invested infixed assets or capital assets

cur-floating charge

charge linked to any of the company’s assets

in a category, but not to any specific itemfloating rate

floating rate /fləυtiŋ reit/ noun 1 same

as variable rate 2. an exchange rate for acurrency, which can vary according to mar-ket demand, and is not fixed by the govern-ment

floating-rate notes

floating-rate notes /fləυtiŋ reit

nəυts/ plural noun Eurocurrency loans

arranged by a bank which are not at a fixedrate of interest Abbreviation FRNs

floor

floor /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 쑗

The government will impose a floor on wages to protect the poor.

floor price

floor price /flɔ prais/ noun the lowest

price, a price which cannot go any lowerfloor space

floor space /flɔ speis/ noun an area of

floor in an office or warehouse 쑗 We have

3,500 square metres of floor space to let.

flop

flop /flɒp/ noun a failure, or something

which has not been successful 쑗 The new

model was a flop.

flow chart

flow chart /fləυ tʃɑt/, flow diagram

/fləυ daiərm/ noun a chart which

shows the arrangement of work processes in

a seriesfluctuate

fluctuate /flktʃueit/ verb to move up

and down 쑗 Prices fluctuated between £1.10

on the foreign exchange markets.

fluctuation

fluctuation /flktʃu|eiʃ(ə)n/ noun an up

and down movement 쑗 the fluctuations of

rate

FOB

FOB, f.o.b abbreviation free on boardfolio

folio /fəυliəυ/ noun a page with a number,

especially two facing pages in an accountbook which have the same number 쐽 verb to

put a number on a pageforced sale

forced sale /fɔst seil/ noun a sale

which takes place because a court orders it

or because it is the only way to avoid a cial crisis

finan-force majeure

force majeure /fɔs m| / noun

something which happens which is out ofthe control of the parties who have signed acontract, e.g a strike, war, or stormforecast

forecast /fɔkɑst/ noun a description or

calculation of what will probably happen in

forecast dividend 100

the future 쑗 The chairman did not believe

the sales director’s forecast of higher

turno-ver.

forecast dividend

forecast dividend /fɔkɑst dividend/

noun a dividend which a company expects

to pay at the end of the current year Also

called prospective dividend

forecaster

forecaster /fɔkɑstə/ noun a person

who says what he or she thinks will happen

in the future

forecasting

forecasting /fɔkɑstiŋ/ noun the

proc-ess of calculating what will probably happen

in the future 쑗 Manpower planning will

depend on forecasting the future levels of

production.

foreclose

foreclose /fɔ|kləυz/ verb to sell a

prop-erty because the owner cannot repay money

which he or she has borrowed, using the

property as security 쑗 to foreclose on a

foreign banks /fɒrin bŋks/ plural

noun banks from other countries which have

branches in a country

foreign branch

foreign branch /fɒrin brɑntʃ/ noun a

branch of a company in another country The

accounts of foreign branches may cause

problems because of varying exchange

rates

foreign company

foreign company /fɒrin kmp(ə)ni/

noun a company that is registered in a

for-eign country

foreign currency

foreign currency /fɒrin krənsi/ noun

money of another country

foreign currency account

foreign currency account /fɒrin

krənsi ə|kaυnt/ noun a bank account in

the currency of another country, e.g a dollar

account in a UK bank

foreign currency reserves

foreign currency reserves /fɒrin

krənsi ri|zvz/ plural noun foreign

money held by a government to support its

own currency and pay its debts Also called

foreign exchange reserves, international

reserves

‘…the treasury says it needs the cash to

rebuild its foreign reserves which have

fallen from $19 billion when the

govern-ment took office to $7 billion in August’

[Economist]

foreign earnings

foreign earnings /fɒrin niŋz/ plural

noun earnings received from employment in

a foreign country

foreign entity

foreign entity /fɒrin entiti/ noun a

per-son or incorporated company based in a

for-eign country

foreign exchange

foreign exchange /fɒrin iks| /

noun 1. the business of exchanging the

money of one country for that of another 2.

foreign currencies

‘…the dollar recovered a little lost ground

on the foreign exchanges yesterday’

[Financial Times]

foreign exchange broker

foreign exchange broker /fɒrin iks|

/, foreign exchange dealer /fɒrin iks| / noun a

person who deals on the foreign exchangemarket

foreign exchange dealing

foreign exchange dealing /fɒrin iks|

/ noun the business of

buy-ing and sellbuy-ing foreign currenciesforeign exchange market

foreign exchange market /fɒrin iks|

/ noun 1 a market where

people buy and sell foreign currencies 쑗 She

dealings in foreign currencies 쑗 Foreign

exchange markets were very active after the dollar devalued.

foreign exchange reserves

foreign exchange reserves /fɒrin iks|

zvz/ plural noun same as eign currency reserves

for-foreign exchange transfer

foreign exchange transfer /fɒrin iks|

/ noun the sending of

money from one country to anotherforeign income

foreign income /fɒrin inkm/ noun

income derived from sources in a foreigncountry

foreign investments

foreign investments /fɒrin in|

vestmənts/ plural noun money invested in

other countriesforeign money order

foreign money order /fɒrin mni

ɔdə/ noun a money order in a foreign

cur-rency which is payable to someone living in

a foreign countryforeign tax credit

foreign tax credit /fɒrin tks kredit/

noun a tax advantage that applies in the case

of taxes paid to or in another countryforeign trade

foreign trade /fɒrin treid/ noun a trade

with other countriesforensic

forensic /fə|rensik/ adjective referring to

the courts or to the law in generalforensic accounting

forensic accounting /fə|rensik ə|

kaυntiŋ/ noun the scrutinisation of an

entity’s past financial activities in order todiscover whether illegal practices have beenused at any time

forensic partner

forensic partner /fə|rensik pɑtnə/

noun a partner in an accountancy firm whodeals with litigation

foreseeable loss

foreseeable loss /fɔ|siəb(ə)l lɒs/

noun a loss which is expected to occur ing a long-term contract

dur-forfaiting

forfaiting /fɔfitiŋ/ noun the action of

providing finance for exporters, where anagent or forfaiter accepts a bill of exchange

101 fraction

from an overseas customer; he or she buys

the bill at a discount, and collects the

pay-ments from the customer in due course

forfeit

forfeit /fɔfit/ verb to have something

taken away as a punishment 왍 to forfeit

shares to be forced to give back shares if

money called up is not paid on time

forfeit clause

forfeit clause /fɔfit klɔz/ noun a

clause in a contract which says that goods or

a deposit will be taken away if the contract

form /fɔm/ noun 1 왍 form of words

words correctly laid out for a legal document

왍 receipt in due form a correctly written

receipt 2. an official printed paper with

blank spaces which have to be filled in with

information 쑗 a pad of order forms 쑗 You

The reps carry pads of order forms.

formal

formal /fɔm(ə)l/ adjective clearly and

legally written 쑗 to make a formal

the formal inspection by the government

inspector.

formal documents

dɒkjυmənts/ plural noun documents

giv-ing full details of a takeover bid

formality

formality /fɔ|mliti/ noun something

which has to be done to obey the law

form letter

form letter /fɔm letə/ noun a letter

which can be sent without any change to

several correspondents, e.g a letter chasing

payment

forward

forward /fɔwəd/ adjective in advance or

to be paid at a later date

forward accounting

forward accounting /fɔwəd ə|

kaυntiŋ/ noun the practice of using

accounting procedures to forecast a

busi-ness’s future performance

forwardation

forwardation /fɔwəd|eiʃ(ə)n/ noun a

situation in which the cash price is lower

than the forward price (NOTE: The opposite

is backwardation.)

forward contract

forward contract /fɔwəd kɒntrkt/

noun a one-off agreement to buy currency,

shares or commodities for delivery at a later

date at a specific price

forward cover

forward cover /fɔwəd kvə/ noun an

arrangement to cover the risks on a forward

contract

forward delivery

forward delivery /fɔwəd di|liv(ə)ri/

noun a delivery at some date in the future

which has been agreed between the buyer

and seller

forward exchange rate

forward exchange rate /fɔwəd iks|

/ noun a rate for purchase of

foreign currency at a fixed price for delivery

at a later date 쑗 What are the forward rates

forward financial statement

forward financial statement /fɔwədfai|nnʃ(ə)l steitmənt/ noun an estimate

of a company’s future financial positionforwarding agent

noun a person or company which arrangesshipping and customs documents

forward integration

forward integration /fɔwəd intə|

reiʃ(ə)n/ noun a process of expansion in

which a company becomes its own tor or takes over a company in the same line

distribu-of business as itself 쑗 Forward integration

will give the company greater control over

brought the company closer to its consumers and has made it aware of their buying hab-

forward market /fɔwəd mɑkit/ noun

a market for purchasing foreign currency, oil

or commodities for delivery at a later dateforward price

forward price /fɔwəd prais/ noun a

price of goods which are to be delivered inthe future

forward rate

forward rate /fɔwəd reit/ noun same as

forward exchange rate

forward sales

forward sales /fɔwəd seilz/ plural noun

sales of shares, commodities or foreignexchange for delivery at a later dateforwards spreading

sprediŋ/ noun the act of spreading lump

sum income over several years in the futureforward trading

forward trading /fɔwəd treidiŋ/ noun

the activity of buying or selling ties for delivery at a later date

commodi-founder

founder /faυndə/ noun a person who

starts a company

401 plan

401(k) plan /fɔ əυ wn kei pln/ noun

US 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 quarter

fourth quarter /fɔθ kwɔtə/ noun a

period of three months from 1st October tothe end of the year

fraction

fraction /frkʃən/ noun a very small

amount 쑗 Only a fraction of the new share

issue was subscribed.

franc /frŋk/ noun 1 a former unit of

cur-rency in France and Belgium 쑗 French

in Switzerland and several other currencies

쑗 It costs twenty-five Swiss francs.

franchise

franchise /frntʃaiz/ noun a licence to

trade using a brand name and paying a

roy-alty for it 쑗 He’s bought a printing franchise

or a pizza franchise 쐽 verb to sell licences

for people to trade using a brand name and

paying a royalty 쑗 His sandwich bar was so

successful that he decided to franchise it.

‘…many new types of franchised

busi-nesses will join the ranks of the giant

chains of fast-food restaurants, hotels and

motels and rental car agencies’

[Franchis-ing Opportunities]

franchisee

franchisee /frntʃai|zi/ noun a person

who runs a franchise

franchiser

franchiser /frntʃaizə/ noun a person

who licenses a franchise

franchising

franchising /frntʃaiziŋ/ noun the act

of selling a licence to trade as a franchise 쑗

She runs her sandwich chain as a

franchis-ing operation.

franco

franco /frŋkəυ/ adverb free

franked

franked /frŋkd/ adjective on which tax

has already been paid

fraud

fraud /frɔd/ noun the act of making

money by making people believe something

which is not true 쑗 He got possession of the

frauds relating to foreign currency.

fraudulent

fraudulent /frɔdjυlənt/ adjective not

honest, or aiming to cheat people 쑗 a

fraud-ulent transaction

fraudulently

fraudulently /frɔdjυləntli/ adverb not

honestly 쑗 goods imported fraudulently

fraudulent misrepresentation

fraudulent misrepresentation

/frɔdjυlənt mis|reprizen|teiʃ(ə)n/ noun

the act of making a false statement with the

intention of tricking a customer

fraudulent trading

fraudulent trading /frɔdjυlənt

treidiŋ/ noun the process of carrying on

the business of a company, knowing that the

company is insolvent

FRB

FRB abbreviation 1 Federal Reserve Bank

2. Federal Reserve Board

free

free /fri/ adjective, adverb 1 not costing

any money 쑗 I have been given a free ticket

with no tax having to be paid 쑗 Interest is

to be paid 쑗 to import wine free of duty 쐽

verb to make something available or easy 쑗

The government’s decision has freed lions of pounds for investment.

mil-‘American business as a whole is ingly free from heavy dependence on man-

increas-ufacturing’ [Sunday Times]

free cash flow

free cash flow /fri kʃ fləυ/ noun the

level of cash flow after the deduction ofinterest payments, tax payments, dividendsand ongoing capital expenditure

free competition

free competition /fri kɒmpə|tiʃ(ə)n/

noun the fact of being free to compete out government interference

with-free currency

free currency /fri krənsi/ noun a

cur-rency which is allowed by the government to

be bought and sold without restrictionfree enterprise

free enterprise /fri entəpraiz/ noun a

system of business free from governmentinterference

freeholder

freeholder /frihəυldə/ noun a person

who owns a freehold propertyfreehold property

freehold property /frihəυld prɒpəti/

noun property which the owner holds forever and on which no rent is paid

free issue

free issue /fri iʃu/ noun same as

bonus issue

free market

free market /fri mɑkit/ noun a market

in which there is no government control ofsupply and demand, and the rights of indi-viduals and organisations to physical andintellectual property are upheld

free market economy

free market economy /fri mɑkit i|

kɒnəmi/ noun an economic system where

the government does not interfere in ness activity in any way

busi-free on board

free on board /fri ɒn bɔd/ 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 place

free reserves

free reserves /fri ri|zvz/ plural noun

the part of a bank’s reserves which are abovethe statutory level and so can be used for var-ious purposes as the bank wishes

free-standing additional voluntary contribution

free-standing additional voluntary contribution /fri stndiŋ ə|diʃ(ə)nəl

vɒlənt(ə)ri kɒntri|bjuʃ(ə)n/ noun a

payment made by an individual into an pendent pension fund to supplement anoccupational pension scheme The antici-pated benefits from the two schemestogether must be less than the maximum

inde-103 full

permitted under the rules laid down by the

Inland Revenue Abbreviation FSAVC

free trade

free trade /fri treid/ noun a system

where goods can go from one country to

another without any restrictions

free trade area

free trade area /fri treid eəriə/ noun

a group of countries practising free trade

free trader

free trader /fri treidə/ noun a person

who is in favour of free trade

free trade zone

free trade zone /fri treid zəυn/ noun

an area where there are no customs duties

freeze

freeze /friz/ noun 왍 a freeze on wages

and prices period when wages and prices

are not allowed to be increased 쐽 verb to

keep something such as money or costs at

their present level and not allow them to rise

쑗 to freeze wages and prices 쑗 to freeze

have frozen expenditure at last year’s level.

(NOTE: freezing – froze – frozen)

freight

freight /freit/ noun the cost of transporting

goods by air, sea, or land 쑗 At an auction,

the buyer pays the freight.

freightage

freightage / / noun the cost of

transporting goods

freight costs

freight costs /freit kɒsts/ plural noun

money paid to transport goods

freight forward

freight forward /freit fɔwəd/ noun a

deal where the customer pays for

transport-ing the goods

friendly society

friendly society /frendli sə|saiəti/

noun a group of people who pay regular

sub-scriptions which are used to help members

of the group when they are ill or in financial

difficulties

fringe benefit

extra item given by a company to employees

in addition to a salary, e.g company cars or

private health insurance 쑗 The fringe

company recreation facilities is one of the

fringe benefits of the job.

FRNs

FRNs abbreviation floating-rate notes

front

front /frnt/ noun 왍 money up front

pay-ment in advance 쑗 They are asking for

£10,000 up front before they will consider

before he could clinch the deal.

front-end

front-end /frnt end/ adjective referring

to the start of an investment or insurance

front-end loaded

front-end loaded /frnt end laυdid/

adjective used to describe an insurance or

investment scheme in which most of the

management charges are incurred in the first

year of the investment or insurance, and are

not spread out over the whole period

Com-pare back-end loaded

front-end loading

front-end loading /frnt end ləυdiŋ/

noun the practice of deducting commissionand administrative costs relating to aninvestment or insurance plan from the earlypayments the customer makes

frozen

frozen /frəυz(ə)n/ adjective not allowed

to be changed or used 쑗 Wages have been

frozen at last year’s rates.

frozen account

frozen account /frəυz(ə)n ə|kaυnt/

noun a bank account where the money not be moved or used because of a courtorder

can-frozen assets

frozen assets /frəυz(ə)n sets/ plural noun a company’s assets which by law can-not be sold because someone has a claimagainst them

frozen credits

frozen credits /frəυz(ə)n kreditz/ ral noun credits in an account which cannot

plu-be movedFRRP

FRRP abbreviation Financial Reporting

Review PanelFRSs

FRSs abbreviation Financial Reporting

Standardsfrustrate

frustrate /fr|streit/ verb to prevent

something, especially the terms of a tract, being fulfilled

con-FSA

FSA abbreviation Financial ServicesAuthority

FSAVC

FSAVC abbreviation free-standing

addi-tional voluntary contributionFT

FT abbreviation Financial Times

FTASI

FTASI abbreviation FTSE Actuaries Share

IndicesFTSE 100

FTSE 100 /fυtsi wn hndrəd/ noun an

index based on the prices of one hundredleading companies (this is the main Londonindex)

‘…the benchmark FTSE 100 index ended

the session up 94.3 points’ [Times]

FTSE Actuaries Share Indices

FTSE 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

쒁 Financial Times

full

full /fυl/ adjective 1 with as much inside it

as possible 쑗 The train was full of

When the disk is full, don’t forget to make a

every-thing

‘…a tax-free lump sum can be taken partly

in lieu of a full pension’ [Investors

Chron-icle]

full cost recovery 104

full cost recovery

full cost recovery /fυl kɒst ri|kvəri/

noun the practice by which organisations

such as charities seek enough funding to

cover all their costs, including overheads

Abbreviation FCR

full cover

full cover /fυl kvə/ noun insurance

cover against a wide range of risks

full employment

full employment /fυl im|plɔimənt/

noun a situation where all the people who

can work have jobs

full price

full price /fυl prais/ noun a price with no

discount 쑗 She bought a full-price ticket.

full production costs

full production costs /fυl prə|dkʃən

kɒsts/ plural noun all the costs of

manufac-turing a product, including both fixed and

variable costs

full rate

full rate /fυl reit/ noun the standard

charge for a service, with no special

dis-counts applied

full repairing lease

full repairing lease /fυl ri|peəriŋ lis/

noun a lease where the tenant has to pay for

all repairs to the property

full-service banking

full-service banking /fυl svis

bŋkiŋ/ noun banking that offers a whole

range of services including mortgages,

loans, pensions, etc

full-time

full-time /fυl taim/ adjective, adverb

working all the usual working time, i.e

about eight hours a day, five days a week 쑗

She’s in time work or She works

is one of our full-time staff.

fully diluted earnings per share

fully diluted earnings per share /fυli

dai|lutid niŋz pə ʃeə/, fully diluted

EPS /fυli dailutid i pi es/ plural noun

earnings per share calculated over the whole

number of shares assuming that convertible

shares have been converted to ordinary

shares

fully paid-up capital

fully paid-up capital /fυli peid p

kpit(ə)l/ noun all money paid for the

issued capital shares

function

function /fŋkʃən/ noun a mathematical

formula, where a result is dependent upon

several other numbers

functional accounting

functional accounting /fŋkʃən(ə)l ə|

kaυntiŋ/ noun a form of accounting that

classifies accountancy items according to

the function they perform in an organisation

functional budget

functional budget /fŋkʃən(ə)l

/ noun a budget relating to a specific

function such as marketing or personnel

functional reporting of expenses

functional reporting of expenses

/fŋkʃən(ə)l ri|pɔtiŋ əv ik|spensiz/

noun the element of functional accounting

that deals with expenses

function cost

function cost /fŋkʃən kɒst/ noun the

category of item for which costs are incurredfund

fund /fnd/ noun 1 money set aside for a

special purpose 2. money invested in aninvestment trust as part of a unit trust, orgiven to a financial adviser to invest onbehalf of a client 쒁 funds 쐽 verb to provide

money for a purpose 쑗 The company does

not have enough resources to fund its sion programme.

expan-‘…the S&L funded all borrowers’ opment costs, including accrued interest’

devel-[Barrons]

fund accounting

fund accounting /fnd 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 made

fundamental analysis

fundamental analysis /fndəment(ə)l

ə|nləsis/ noun an assessment of how the

external and internal influences on a pany’s activities should affect investmentdecisions

com-fundamental assumptions

fundamental assumptions

/fndəment(ə)l ə|smpʃ(ə)ns/ plural noun the basic assumptions on which thepreparation of accounts depends (NOTE:These assumptions are: that the company

is 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 issues

fundamental issues /fndəment(ə)l

iʃuz/ plural noun matters relating to a

company’s profits or assetsfundamental research

fundamental research

/fndəment(ə)l ri|stʃ/, fundamental analysis /fndəment(ə)l ə|nləsis/ noun

an examination of the basic factors whichaffect a market

funded /fndid/ adjective backed by

long-term loans 쑗 long-term funded capital

funded scheme

funded scheme /fndid skim/ noun a

pension scheme where money is invested insecurities to create a fund from which thepension is later paid

funding

funding /fndiŋ/ noun 1 money for

spending 쑗 The bank is providing the

changing a short-term debt into a long-term

105 FYA

loan 쑗 The capital expenditure programme

requires long-term funding.

fund management

/ noun the business of

deal-ing with the investment of sums of money on

behalf of clients

funds

funds /fndz/ plural noun 1 money which

is available for spending 쑗 The company has

no funds to pay for the research programme.

쒁 non-sufficient funds왍 to convert funds

to your own use to use someone else’s

money for yourself 2.왍 the Funds

govern-ment stocks and securities 쒁 Federal

Funds

‘…small innovative companies have been

hampered for lack of funds’ [Sunday

Times]

‘…the company was set up with funds

totalling NorKr 145m’ [Lloyd’s List]

funds flow

funds flow /fndz fləυ/ noun 왍

budg-eted funds flow statement a plan of

antici-pated incoming funds and the use to which

they will be put 왍 funds flow method of

budgeting preparing a budget of funds flow,

as opposed to a budget of expenditure 왍

funds flow statement a statement which

shows the amount of funds (cash and

work-ing capital) which have come into a business

during the last financial period, the sources

of these funds, and the use made of the funds

(see FRS1, formerly SSAP10)

fungibility

fungibility / |biliti/ noun a

meas-ure of how easily an asset can be exchangedfor something similar

fungible

fungible / / adjective

refer-ring to a security which can be exchangedfor another of the same type

funny money

funny money /fni mni/ noun an

unu-sual type of financial instrument created by

a companyfuture delivery

future delivery /fjutʃə di|liv(ə)ri/

noun delivery at a later datefutures

futures /fjutʃəz/ plural noun shares,

cur-rency or commodities that are bought or soldfor now for delivery at a later date 쑗 Gold

rose 5% on the commodity futures market yesterday.

‘…cocoa futures plummeted in November

to their lowest levels in seven years’

[Busi-ness in Africa]

futures contract

futures contract /fjutʃəz kɒntrkt/

noun a contract for the purchase of modities for delivery at a date in the futurefutures exchange

com-futures exchange /fjutʃəz iks|

/ noun a commodity market which

only deals in futuresfuture value

future value /fjutʃə vlju/ noun the

value to which a sum of money will increase

if invested for a certain period of time atsome rate of interest Abbreviation FV

gain /ein/ noun 1 an increase, or the act

of becoming larger 2. an increase in profit,

price, or value 쑗 Oil shares showed gains on

company which is not from the company’s

usual trading 쐽 verb 1 to get or to obtain 쑗

She gained some useful experience working

buy more than 50% of the shares so that you

can direct the business 2. to rise in value 쑗

The dollar gained six points on the foreign

exchange markets.

galloping inflation

galloping inflation /ləpiŋ in|

fleiʃ(ə)n/ noun very rapid inflation which

is almost impossible to reduce

gap analysis

gap analysis /p ə|nləsis/ noun

analysis of a market to try to find a particular

area that is not at present being satisfied 쑗

Gap analysis showed that there was a whole

area of the market we were not exploiting.

gap financing

gap financing /p fainnsiŋ/ noun

the process of arranging extra loans such as

a bridging loan to cover a purchase not

cov-ered by an existing loan

garnishee

garnishee /ɑni|ʃi/ noun a person who

owes money to a creditor and is ordered by

a court to pay that money to a creditor of the

creditor, and not to the creditor himself

garnishee order

garnishee order /ɑni|ʃi ɔdə/ noun

a court order, making a garnishee pay money

not to the debtor, but to a third party

gearing /iəriŋ/ noun 1 the ratio of

cap-ital borrowed by a company at a fixed rate of

interest to the company’s total capital Also

called leverage 2. the act of borrowing

money at fixed interest which is then used to

produce more money than the interest paid

gearing ratio

gearing ratio /iəriŋ reiʃiəυ/ noun any

ratio that compares equity to borrowinggeneral audit

the process of examining all the books andaccounts of a company

general average

/ noun a process by which the

cost of lost goods is shared by all parties to

an insurance policy, such as in cases wheresome goods have been lost in an attempt tosave the rest of the cargo

general balance sheet

general balance sheet /

bləns ʃit/ noun the standard form of

balance sheet used by non-commercialorganisations such as charities and govern-ment departments

General Commissioners

General Commissioners /

kə|miʃ(ə)nəz/ plural noun a body of unpaid

individuals appointed by the Lord lor in England, Wales and Northern Ireland,and the Secretary of State for Scotland inScotland, to hear appeals on tax mattersgeneral damages

/ plural noun damages awarded

by court to compensate for a loss which not be calculated, such as an injurygeneral expenses

spensiz/ plural noun minor expenses of

various kinds incurred in the running of abusiness

general fund

unit trust with investments in a variety ofstocks

general insurance

ʃυərəns/ noun insurance relating to various

potential losses, e.g theft or damage, butexcluding life insurance

general ledger

a book which records a company’s incomeand expenditure in general

general lien

right 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 쒁 banker’s lien

107 gold reserves

Generally Accepted Accounting Principles

Generally Accepted Accounting

kaυntiŋ prinsip(ə)lz/ plural noun US a

summary of best practice in respect of the

form and content of financial statements and

auditor’s reports, and of accounting policies

and disclosures adopted for the preparation

of financial information GAAP does not

have any statutory or regulatory authority in

the United Kingdom, unlike in a number of

other countries where the term is in use,

such as the United States, Canada

Abbrevi-ation GAAP

generally accepted auditing standards

generally accepted auditing

stndədz/ plural noun guidelines that are

designed to inform the work of auditors and

set out the auditor’s responsibilities

noun a meeting of all the shareholders of a

company or of all the members of a society

general partner

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 if

the company’s assets are not sufficient to

discharge its debts

general partnership

pɑtnəʃip/ noun the relationship of a

gen-eral partner to his or her company

general undertaking

ndə|teikiŋ/ noun an undertaking signed

by the directors of a company applying for a

Stock Exchange listing, promising to work

within the regulations of the Stock

Exchange

gift aid

gift aid /ift eid/ noun payment above

some limit made to a registered charity,

meaning that the charity is able to reclaim

the basic rate tax which you have paid on the

gift

gift inter vivos

gift inter vivos /ift intə vivəυs/ noun

a gift given to another living person

Abbre-viation GIV

gift tax

gift tax /ift tks/ noun a tax on gifts.

Only gifts between husband and wife are

exempt

gilt-edged

gilt-edged / / adjective used to

describe an investment which is very safe

gilt-edged securities

kjυəritiz/ plural noun investments in

Brit-ish government stock

goal congruence /əυl kɒŋruəns/

noun a situation that leads individuals orcompanies to take actions which are in theirown best interests

go-go fund

go-go fund /əυ əυ fnd/ noun a fund

which aims to give very high returnsbecause it is invested in speculative stocksgoing concern

going concern /əυiŋ kən|sn/ noun a

company that is actively trading and making

a profitgoing concern value

going concern value /əυiŋ kən|sn

vlju/ noun the value of a company as it

continues trading as opposed to its break-upvalue

gold bullion

gold bullion /əυld bυliən/ noun bars of

goldgold card

gold card /əυld kɑd/ noun a credit card

issued to important customers, i.e., thosewith a high income, which gives certainprivileges such as a higher spending limitthan ordinary credit cards

golden handcuffs

hndkfs/ plural noun a contractual

arrangement to make sure that a valuedmember of staff stays in their job, by whichthey are offered special financial advantages

if they stay and heavy penalties if they leavegolden handshake

hndʃeik/ 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 쑗 The retiring director

received a golden handshake of £250,000.

golden parachute agreement

golden parachute agreement

/əυld(ə)n prə|ʃut ə|rimənt/ noun a

contract that gives a senior manager verygenerous monetary compensation if his orjob is lost as a result of a merger or acquisi-tion

golden share

golden share /əυld(ə)n ʃeə/ noun a

share in a privatised company which isretained by the government and carries spe-cial privileges such as the right to veto for-eign takeover bids

goldmine

goldmine /əυldmain/ noun a mine

which produces goldgold point

gold point /əυld pɔint/ noun an amount

by which a currency which is linked to goldcan vary in price

gold reserves

gold reserves /əυld ri|zvz/ plural noun the country’s store of gold kept to payinternational debts

goods 108

goods

goods /υdz/ plural noun items which can

be moved and are for sale 왍 goods received

goods which have been sent by a seller and

received by a purchaser during an

account-ing period 왍 goods received note an

inter-nal note within a company which shows the

date when goods were received, by whom

and in what quantities

‘…profit margins are lower in the

indus-tries most exposed to foreign competition

– machinery, transportation equipment

and electrical goods’ [Sunday Times]

‘…the minister wants people buying

goods ranging from washing machines to

houses to demand facts on energy costs’

[Times]

goods and chattels

tʃt(ə)lz/ plural noun movable personal

possessions

Goods and Services Tax

Goods and Services Tax /υdz ən

svisiz tks/ noun a Canadian tax on the

sale of goods or the provision of services,

similar to VAT Abbreviation GST

goodwill

goodwill /υd|wil/ noun the good

reputa-tion of a business, which can be calculated

as part of a company’s asset value, though

separate from its tangible asset value 쑗 He

paid £10,000 for the goodwill of the shop

good-will can include the trading reputation, the

patents, the trade names used, the value of

a ‘good site’, etc., and is very difficult to

establish accurately.)

go private

go private /əυ praivət/ verb to become

a private company again, by concentrating

all its shares in the hands of one or a few

shareholders and removing its stock

exchange listing

go public

go public /əυ pblik/ phrasal verb to

become a public company by placing some

of its shares for sale on the stock market so

that anyone can buy them

govern

govern /v(ə)n/ verb to rule a country 쑗

The country is governed by a group of

mili-tary leaders.

governance

governance /v(ə)nəns/ noun the

process of managing a company, especially

with respect to the soundness or otherwise

of its management

‘…the chairman has committed the

cardi-nal sin in corporate governance – he acted

against the wishes and interests of the

shareholders’ [Investors Chronicle]

‘…in two significant decisions, the

Securi-ties and Exchange Board of India today

allowed trading of shares through the

Internet and set a deadline for companies

to conform to norms for good corporate

governance’ [The Hindu]

Government Accountancy Service

Government Accountancy Service

/v(ə)nmənt ə|kaυntənsi svis/ noun

part of HM Treasury, a service whose remit

it is to ensure that best accounting practice isobserved and conducted across the whole ofthe Civil Service Abbreviation GAS

bɒndz/ plural noun bonds or other

securi-ties issued by the government on a regularbasis as a method of borrowing money forgovernment expenditure

the direct control of the government 쑗

Advertisements cannot be placed in the ernment-controlled newspapers.

gov-government economic indicators

government economic indicators

/v(ə)nmənt ikənɒmik indikeitəz/

plural noun statistics which show how thecountry’s economy is going to perform inthe short or long term

government grant

government grant /v(ə)nmənt

rɑnt/ noun a grant of money or assets

given by a central government, a local ernment or a government agency 쑗 The lab-

gov-oratory has a government grant to cover the cost of the development programme

rejυleitid/ adjective of which the affairs

are subject to government regulationgovernment sector

encouraged by the government and backed

by government money 쑗 She is working in a

government-sponsored scheme to help small businesses.

sə|pɔt/ noun a financial help given by the

government 쑗 The aircraft industry relies on

government support.

109 gross income

governor

governor /v(ə)nə/ noun 1 a person in

charge of an important institution 2 US one

of the members of the Federal Reserve

Board

grace

grace /reis/ noun a favour shown by

granting a delay 쑗 to give a creditor a

period of grace or two weeks’ grace

graduate

graduate / / noun a person who

has obtained a degree

graduated

changing in small regular stages

graduated income tax

graduated income tax /

inkm tks/ noun a tax which rises in

steps, with those having the highest income

paying the highest percentage of tax

graduated pension scheme

graduated pension scheme

pen-sion scheme where the benefit is calculated

as a percentage of the salary of each person

grand /rnd/ noun one thousand pounds

or dollars (informal) 쑗 They offered him fifty

fifty grand plus car and expenses.

grand total

grand total /rnd təυt(ə)l/ noun the

final total made by adding several subtotals

grant

grant /rɑnt/ noun money given by the

government to help pay for something 쑗 The

laboratory has a government grant to cover

The government has allocated grants

agree to give someone something 쑗 to grant

The local authority granted the company an

interest-free loan to start up the new factory.

‘…the budget grants a tax exemption for

$500,000 in capital gains’ [Toronto Star]

grantor

grantor /rɑn|tɔ/ noun a person who

grants a property to another

graph

graph /rɑf/ noun a diagram which shows

the relationship between two sets of

quanti-ties or values, each of which is represented

on an axis 쑗 A graph was used to show

sal-ary increases in relation to increases in

salaries have risen so has absenteeism.

gratis

gratis /rtis/ adverb free or not costing

anything 쑗 We got into the exhibition gratis

green card /rin kɑd/ 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 US

green currency

green currency /rin krənsi/ noun

formerly, a currency used in the EU for culating agricultural payments Each coun-try had an exchange rate fixed by the Com-mission, so there were ‘green pounds’,

cal-‘green francs’, cal-‘green marks’, etc

greenmail

greenmail /rinmeil/ noun the practice

of making a profit by buying a large number

of 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 limit

on greenmail, perhaps permitting payment

of a 20% premium on a maximum of 8%

of the stock’ [Duns Business Month]

Green Paper

Green Paper /rin peipə/ noun a report

from the British government on proposalsfor a new law to be discussed in Parliament.Compare White Paper

green pound

green pound /rin paυnd/ noun a

value for the British pound used in ing agricultural prices and subsidies in theEU

calculat-green report

green report /rin ri|pɔt/ noun a part

of a company’s annual report dealing withecological matters

grey market

grey market /rei mɑkit/ noun an

unofficial market run by dealers, where newissues of shares are bought and sold beforethey officially become available for trading

on the Stock Exchange even before the shareallocations are known

gross

gross /rəυs/ noun twelve dozen (144) 쑗

plural) 쐽 adjective total, with no deductions

쐽 adverb with no deductions 쑗 My salary is

paid gross.

‘…gross wool receipts for the selling son to end June appear likely to top $2 bil-

sea-lion’ [Australian Financial Review]

gross domestic product

gross domestic product /rəυs də|

mestik prɒdkt/ noun the annual value of

goods sold and services paid for inside acountry Abbreviation GDP

gross earnings

gross earnings /rəυs niŋz/ plural noun total earnings before tax and otherdeductions

gross income

gross income /rəυs inkm/ noun a

salary before tax is deducted

gross interest 110

gross interest

gross interest /rəυs intrəst/ noun the

interest earned on a deposit or security

before the deduction of tax 쒁 net interest

gross margin

the percentage difference between the

received price and the unit manufacturing

cost or purchase price of goods for resale

Abbreviation GM

gross margin pricing

gross margin pricing /

praisiŋ/ noun pricing that takes into

account the total production costs of a

prod-uct

gross margin ratio

gross margin ratio /

reiʃiəυ/ noun same as gross profit margin

gross national product

gross national product /rəυs

nʃ(ə)nəl prɒdkt/ noun the annual

value of goods and services in a country

including income from other countries

Abbreviation GNP

gross profit

gross profit /rəυs prɒfit/ noun a profit

calculated as sales income less the cost of

the goods sold, i.e without deducting any

other expenses

gross profit analysis

gross profit analysis /rəυs prɒfit ə|

nləsis/ noun analysis of the discrepancy

between actual profit and budgeted profit or

previous year’s profit

gross profit margin

gross profit margin /rəυs prɒfit

/ noun the percentage of each

pound of income from sales that remains

after goods sold have been paid for by the

producer or retailer

gross profit method

gross profit method /rəυs prɒfit

meθəd/ noun a method of estimating

inven-tory at the point of preparing an interim

report

gross receipts

gross receipts /rəυs ri|sits/ plural

noun the total amount of money received

before expenses are deducted

gross salary

gross salary /rəυs sləri/ noun same

as gross income

gross sales

gross sales /rəυs seilz/ plural noun

money received from sales before

deduc-tions for goods returned, special discounts,

etc 쑗 Gross sales are impressive since many

buyers seem to be ordering more than they

will eventually need.

gross turnover

gross turnover /rəυs tnəυvə/ noun

the total turnover including VAT and

dis-counts

gross yield

gross yield /rəυs jild/ noun a profit

from investments before tax is deducted

ground landlord

ground landlord /raυnd lndlɔd/

noun a person or company that owns the

freehold of a property which is then let and

sublet 쑗 Our ground landlord is an

insur-ance company.

ground rent

ground rent /raυnd rent/ noun a rent

paid by the main tenant to the ground lord

land-group

group /rup/ noun 1 several things or

people together 쑗 A group of managers has

sent a memo to the chairman complaining

were interviewed in groups of three or four,

together in the same organisation 쑗 the

group chairman or the chairman of the

group accounts

group accounts /rup ə|kaυnts/ plural noun accounts for a holding company andits subsidiaries

group balance sheet

group balance sheet /rup bləns

ʃit/ noun same as consolidated balance sheet

group depreciation

group depreciation /rup di|priʃi|

eiʃ(ə)n/ noun a way of calculating

depreci-ation for multiple assets that are similar innature and have a similar useful lifegroup financial statement

group financial statement /rup fai|

nnʃ(ə)l steitmənt/ noun same as solidated financial statement

con-group results

group results /rup ri|zlts/ plural noun the end-of-year financial statementsand accounts of a group of companiesgrowth

growth /rəυθ/ noun the fact of becoming

growth index /rəυθ indeks/ noun an

index showing the growth in a company’srevenues, earnings, dividends or other fig-ures

growth prospects

growth prospects /rəυθ prɒspekts/

plural noun potential for growth in a sharegrowth rate

growth rate /rəυθ reit/ noun the speed

at which something growsGST

GST abbreviation Goods and Services Tax

‘…because the GST is applied only to feesfor brokerage and appraisal services, thenew tax does not appreciably increase the

price of a resale home’ [Toronto Globe &

Mail]

guarantee

guarantee /rən|ti/ noun 1 a legal

document in which the producer agrees tocompensate the buyer if the product is faulty

or becomes faulty before a specific date after