Accounting & Finance

Assets is a plural noun referring to beneficial resources or valuable possessions owned by a person or organization. In finance, it denotes items of value on a balance sheet. It typically stresses the first syllable and is pronounced with a short 'a' in the first vowel and a clear final 's' sound, forming two syllables in everyday speech.

Balance (noun) refers to a stable, even distribution of weight or forces, a condition where opposing elements are in equilibrium. It can also denote a state of steadiness in movement or judgment, and the act of balancing or aligning different components for harmony. The term emphasizes proportion, symmetry, and control in physical, financial, or conceptual contexts.

Basis (noun) refers to the underlying support or foundation for something, or a reason or basis for a belief or decision. It denotes the groundwork that justifies or underpins a conclusion, plan, or argument. In usage, it can describe a methodological base, a rationale, or the set of conditions on which something is built or evaluated.

Collateral is an adjective meaning supplementary or accompanying; in finance, it describes an asset pledged to secure a loan. It conveys a secondary or supportive role, not primary, and often relates to security or protection in agreements or risk management. The term is also used in legal and policy contexts to describe information or relationships that are indirect yet relevant to a matter.

Contingency is a future event or situation that is possible but cannot be predicted with certainty. It also refers to something that depends on a certain condition or circumstance occurring. In planning or law, it denotes provisions that apply only if a specified condition arises. The term often appears in contexts like risk management, contracts, and contingency planning.

Contingent is an adjective describing something that is conditional or dependent on something else happening, often expressed as a future possibility. It can also refer to a group of people who share a common purpose and travel or act together. In formal use, it contrasts with necessity or certainty, emphasizing reliance on specific conditions or events.

Debit is a noun meaning an entry on the left-hand side of an account or a deduction from an account. In financial contexts it denotes money leaving an account, as opposed to a credit. In everyday usage it can describe a charge or fee that reduces funds. The term also appears in legal and banking phrasing.

Deferred is an adjective meaning postponed or delayed to a later time or decision. It can describe plans, decisions, or actions held back temporarily or indefinitely, often implying intentional postponement. In usage, it contrasts with urgent or immediate actions and can carry formal or regulatory connotations depending on context.

Depreciate is a verb meaning to lose value over time, or to belittle something or someone in speech or action. In finance, it refers to the gradual reduction in the recorded value of an asset. The term carries a formal register and is common in business, economics, and professional writing. It can also describe expressing lower esteem or underestimating something.

Derivative (noun) refers to something that is derived from or developed from something else, often used in mathematics, economics, or law to describe a result that follows from a source. It also denotes a product formed from another substance or source. In philosophy and science, it can describe ideas or concepts that are not original but adapted from existing material. It conveys secondary or characteristic outcomes rather than original creation.

Derivatives refers to mathematical objects that represent rates of change or linear approximations of functions in calculus, or to objects derived from a source in broader contexts. In math, a derivative describes how a function's value changes as its input changes, serving as a fundamental concept in analysis. In finance and other fields, the term extends to items whose value depends on others. plural form indicates multiple such related quantities.

Equity is a noun referring to fairness or impartiality, often in contexts of law, finance, or social policy. It can denote the value of an ownership interest in an asset or the principle that individuals should be treated fairly. In business, equity represents ownership shares, while in ethics it emphasizes just treatment and equal opportunities. It is pronounced with two syllables: E-qui-ty.

Escrow is a legal arrangement in which a third party holds and regulates funds or documents until specified conditions are met. It ensures impartiality in transactions, protecting both buyer and seller. The term also denotes the funds or documents held under such an arrangement. Essentially, escrow creates a safeguarded intermediary step in a deal.

Expenditure is the amount of money spent, typically over a particular period or for a specific purpose. It refers to outflows in financial accounting and budgeting, as opposed to income. The term is commonly used in business, government, and personal finance to describe spending, costs, and disbursements.