Financial English #2 | Términos #Inglés Financiero

How would you explain the following financial terms? ¿Cómo explicarías los siguientes términos de vocabulario financiero en inglés?

Aging
Amortize
Appreciation
Assets
Audit

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Aging | a process where accounts receivable are sorted out by age (typically current, 30 to 60 days old, 60 to 120 days old, and so on.) Aging permits collection efforts to focus on accounts that are long overdue.

Amortize | to charge a regular portion of an expenditure over a fixed period of time. For example if something cost $100 and is to be amortized over ten years, the financial reports will show an expense of $10 per year for ten years. If the cost were not amortized, the entire $100 would show up on the financial report as an expense in the year the expenditure was made. (See entries on Expenditure and Expense.)

Appreciation | an increase in value. If a machine cost $1,000 last year and is now worth $1,200, it has appreciated in value by 600€ (The opposite of depreciation.)

Assets | things of value owned by a business. An asset may be a physical property such as a building, or an object such as a stock certificate, or it may be a right, such as the right to use a patented process. Current Assets are those assets that can be expected to turn into cash within a year or less. Current assets include cash, marketable securities, accounts receivable, and inventory. Fixed Assets cannot be quickly turned into cash without interfering with business operations. Fixed assets include land, buildings, machinery, equipment, furniture, and long‐term investments. Intangible Assets are items such as patents, copyrights, trademarks, licenses, franchises, and other kinds of rights or things of value to a company, which are not physical objects. These assets may be the most important ones a company owns. Often they do not appear on financial reports.

Audit | a careful review of financial records to verify their accuracy.

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