Below you’ll find a handful of accounting terms with their definitions and translations into Polish. Also try to do the task to test yourself.
accelerated depreciation method – przyspieszona metoda amortyzacji
A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use, followed by a gradually declining amount of depreciation.
account payable – zobowiązanie
The liability created by a purchase on account.
accounts receivable turnover – rotacja należności
The relationship between net sales and accounts receivable, computed by dividing the net sales by the average net accounts receivable; measures how frequently during the year the accounts receivable are being converted to cash.
accrual basis of accounting – zasada memoriałowa
Under this basis of accounting, revenues and expenses are reported in the income statement in the period in which they are earned or incurred.
activity-based costing (ABC) – rachunek kosztów działań
A cost allocation method that identifies activities causing the incurrence of costs and allocates these costs to products (or other cost objects), based on activity drivers (bases).
adjusting entries – zapisy korygujące
The journal entries that bring the accounts up to date at the end of the accounting period.
administrative expenses (general expenses) – koszty administracyjne
Expenses incurred in the administration or general operations of the business.
aging the receivables – wiekowanie należności
The process of analyzing the accounts receivable and classifying them according to various age groupings, with the due date being the base point for determining age.
amortization – amortyzacja wartości niematerialnych i prawnych
The periodic transfer of the cost of an intangible asset to expense.
TASK
Fill in the gaps with the accounting terms listed above:
- In accounting/accountancy, ……………………………….. are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.
- Toll Brothers had an ……………………………………………………….. of 15.6 providing an average days’ sales in accounts receivable of 23.4 days.
- For example, the elimination of one product would not eliminate the overhead or even direct labour cost assigned to it. …………………………………………………. better identifies product costing in the long run, but may not be too helpful in day-to-day decision-making.
- One-off items included $13.4 million in ………………………………………. of old plant.
- The buyer (i.e. the issuer) should treat the invoice as an ……………………………………, and the seller should treat it as an account receivable.
- EBITDA stands for earnings before interest, taxes, depreciation and ………………………………….
- Selling, general and ………………………………………… fell 9.2 percent to $3.94 billion.
- …………………………………………… used by most businesses requires revenue to be recognized when it is earned and expenses to be recognized when the related benefit is received. Revenues may actually be received during a later period, while expenses may be paid during an earlier or later period
- The company is ……………………………………. on a monthly basis to ensure accuracy of their accounts receivable.
KEY
1. adjusting entries 2. accounts receivable turnover 3. Activity-based costing (ABC) 4. accelerated depreciation 5. account payable 6. Amortization 7. administrative expenses 8. The accrual basis of accounting 9. aging the receivables
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