Study the following definitions and examples.

1.      accounting n., the recording and gathering of financial information for a company

a.     Good accounting is needed in all businesses.

b.     Accounting for expenses is time-consuming.

2.      accumulate v., to gather; to collect

a.     They have accumulated more than enough information.

b.     The bills started to accumulate after the secretary quit.

3.      asset n., something of value

a.     The company's assets are worth millions of dollars.

b.     A sophisticated accounting system is an asset to a company.

4.      audit n., a formal examination of financial records; v., to examine the financial records of a company

a.      No one looks forward to an audit by the government.

b.      The independent accountants audited the company's books.

5.      budget n., a list of probable expenses and income for a given period; v., to plan for expenses

a.     The department head was pleased that she received a 10 percent increase in her budget.

b.     The company will have to budget more money for this department next year.

6.      build up v., to increase over time

a.      The firm has built up a solid reputation for itself.

b.      Be careful, your inventory of parts is building up.

7.      client n., a customer

a.     We must provide excellent services for our clients, otherwise we will lose them to our competition.

b.     Maintaining close contact with clients keeps the account managers aware of changing needs.

8.      debt n., something owed, as in money or goods

a.       The company has been very careful and is slowly digging itself out of debt.

b.       The banks are worried about your increasing debt.

9.      outstanding adj., still due; not paid or settled

a.     That client still has several outstanding bills.

b.     Clients with outstanding bills will not receive further service until the bills are paid.

10.      profitably adv., advantageously

a.      The company used its accountant's advice profitably.

b.      We invested in the stock market profitably.

11.      reconcile v., to make consistent

a.     The client uses his bank statements to reconcile his accounts.

b.     The accountant found the error when she reconciled the account.

12.      turnover n., the number of times a product is sold and replaced or an employee leaves and another employee is hired

a.     We have to add another production shift to keep up with the high turnover rate.

b.     The overseas branch has much lower employee turnover than does domestic operations.