Accounting and Finance Verbs: Part 2
Introduction
Accounting and finance have a lot to do with buying, selling, borrowing, and lending. In other words, The main function accounting is recording and keeping track of business transactions. On the other hand, Finance makes sure than company resources are well spent and expenses are under control. In short, it suggests the best balance between the elements of the accounting equation (refer to Finance and Accounting: An Introduction.). The following verbs explain actions taken in relation to financial processes.
| afford | borrow | buy | credit | finance | grant a loan | invest | lease | lend | owe | sell |
Afford
Example: Lotus Ltd. can afford to buy its office building next year. The building is now leased.
Borrow
Example: Lawrence Beckett borrowed a part of his money to create his business. He paid the money he owed his friend in 10 months.
Buy
Example: Foreign investors offered to buy %15 of the company. Lawrence and Jack refused to sell.
Credit
Example: Recent expenses will be credited to this year’s profit and loss account.
Finance
Example: The company is now able to finance its own research and development projects.
Grant a loan
Example: Last year HSBC granted a low interest loan to Lotus Ltd. Lotus is going to pay back the loan in 3 years.
Lease
Example: Lotus Ltd. has leased its office building for 4 years. The lease will expire next June. Fortunately, it will be able to buy its building.
Lend
Example: The bank has agreed to lend more money to Lotus Ltd. The bank load will be used to fund its new project in Greece.
Owe
Example: A manufacturing company owes Lotus five million euros. It hasn’t repaid its debt yet.
Sell
Example: Jack plans to sell spare parts to manufacturing companies in Greece.
Conclusion
The above accounting and finance verbs are very common in Business English. They enable people to speak about their company finances and financial decisions. Using these verbs, a businessperson can paint a picture of how the business obtains and spends its money. A smart businessperson knows how to make sound financial decisions, and how to talk about them.
