Essential Accountancy Terms: A2 Level Guide

1 📚 The World of Essential Accountancy Terms

Every business needs to know about money. Sarah works in an office where she helps companies with their money. She uses a ledger to write down all the money that comes in and goes out. When a company sells things, they get revenue. After they pay their expenses, they can see their profit.

Sarah makes a balance sheet every month. This shows what the company owns (assets) and what it owes (liabilities). She sends invoices to customers who need to pay. She also helps with tax papers and checks the payroll for workers’ pay.

Terms Used:
– ledger: Book for writing money information
– revenue: Money from selling things
– expenses: Money the business must pay
– profit: Money left after paying expenses
– balance sheet: Paper showing money owned and owed
– assets: Things the business owns
– liabilities: Money the business must pay
– invoice: Paper asking for payment
– tax: Money paid to the government
– payroll: List of worker payments

2 💬 The Lexical Divide

When people know the right words for money and business, they can work better together. Using correct business words helps everyone understand clearly. Let’s see how this works:

Part A: Divided by Lexis
Tom: Can you tell me about the company’s money?
Sarah: Well, we got some money from selling things, then we paid for stuff, and we have some things we own…

Part B: United by Lexis
Tom: Can you explain our financial position?
Sarah: Yes, our revenue is $50,000, and after expenses, our profit is $15,000. The balance sheet shows our assets are worth $100,000.

3 🎯 Building Your Repertoire

Money Coming In:
– revenue: Money from sales
– dividend: Money paid to business owners

Money Going Out:
– expenses: Costs for running the business
– depreciation: When things lose value over time

Checking Money:
– audit: Looking at all money records
– budget: Plan for future money

Communication Moment:
‘We need to check the budget before we buy new computers.’

Common Mistake: Don’t say ‘money we got’ – say revenue.

4 🚀 Quick Wins for Real Conversations

Useful Phrases:
1. ‘Let’s check the balance sheet‘
2. ‘We need to pay our expenses‘
3. ‘The audit is next week’

Mini-Dialogue:
Sarah: Did you see the new invoice?
Tom: Yes, I’ll add it to the ledger.

Conversation Starter: What expenses does your business have?