Vocabulary Words

Lesson 2Accounting and Finance

Accrue

• Verb• To accumulate, collect, or build up

• The interest on Maria’s savings will accrue regularly.

Allocate

• Verb• To designate, set apart, or budget

• The school board will allocate the funds for a new gymnasium.

Annuity

• Noun• A yearly payment of an allowance or income

• The retired couple lived comfortably on an annuity.

Budgetary

• Adjective• Pertaining to a financial or spending plan

• Budgetary restrictions forced the city to close a small school

Currency

• Noun• The medium of exchange; money

• The franc is the currency of France, Belgium, and Switzerland.

Default

• Noun• A failure to pay

• The shop was forced to close because of a default on its monthly payments.

Denomination

• Noun• A class or unit that is named for its size or

value

• When Lin cashed a check, the teller asked him in what denomination he would like his money.

Divert

• Verb• To deflect or sidetrack

• Anita asked her employer to divert part of her income into a retirement account.

Exempt

• Adjective• Not subject to; excused

• The land owned by the university is exempt from taxation.

Exorbitant

• Adjective• Excessive; extravagant

• I would live there, but the rent is exorbitant.

Financier

• Noun• One who is involved with and expert in large-

scale money matters

• The art museum received a generous contribution from a wealthy financier.

Increment

• Noun• An increase in size or number

• Each increment on the graph represented ten thousand dollars in sales.

Insolvency

• Noun• A state of being bankrupt; penniless

• The company’s insolvency caused it to go out of business.

Liability

• Noun• An obligation; debt; handicap

• The applicant’s lack of a college degree was seen as a liability by prospective employers.

Monetary

• Adjective• Financial; pertaining to money

• The city’s monetary problems were the reason many workers were laid off.

Recession

• Noun• Temporary decline in economic activity during

a period of prosperity

• An increase in oil prices brought on a severe recession in the 1970s.

Reimburse

• Verb• To pay back

• Luis borrowed money from his parents, but he will reimburse them as soon as he gets a job.

Substantial

• Adjective• Sizable; considerable

• The department store experienced a substantial increase in sales over the same period last year.

Tangible

• Adjective• Concrete; real

• The couple’s wealth was all on paper; they had no tangible assests.

Treasury

• Noun• A place where money is kept; amount of

money on hand

• The cost of putting on the dance depleted the student council’s treasury.