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Vocabulary · 38 words

TOEIC Vocabulary: Finance and budgeting (38 Words with Examples)

Budget reports, expense policies, bank notices and conversations with the accounting department are frequent in Parts 3, 4 and 7.

Free extract from the Noto Tracks TOEIC course

Word	Part of speech	Meaning	Example
budget	noun / verb	a plan for spending money	The marketing budget was cut by 10%.
allocate	verb	to give money or resources for a purpose	We allocated $5,000 for staff training.
expenditure	noun	money spent	Expenditures on travel rose last quarter.
revenue	noun	money a company earns from sales	Online revenue doubled this year.
profit margin	noun phrase	the percentage of sales that is profit	Our profit margin on accessories is high.
quarterly	adjective / adverb	every three months	The quarterly report is due on April 10.
fiscal year	noun phrase	a company's twelve-month accounting period	Our fiscal year begins in July.
audit	noun / verb	an official check of financial records	An external firm will audit our accounts.
reimburse	verb	to pay back money someone spent	Taxi fares will be reimbursed with a receipt.
deposit	noun / verb	(to put) money into an account	Salaries are deposited on the 25th.
withdraw	verb	to take money out of an account	You can withdraw cash at any branch.
balance	noun	the amount in an account or still owed	The remaining balance is due on delivery.
statement	noun	a record of account activity	Your monthly statement is available online.
estimate	noun / verb	(to give) an approximate calculation	The estimate for the repairs is $1,200.
overdue	adjective	not paid by the due date	This invoice is now thirty days overdue.
funding	noun	money provided for a project	The lab received funding from the city.
accountant	noun	a person who keeps or checks financial records	Our accountant will review the expense reports before the end of the quarter.
dividend	noun	a share of profits paid to shareholders	The board voted to raise the annual dividend after a strong year of sales.
stockbroker	noun	a person who buys and sells shares for clients	Mr. Patel asked his stockbroker whether he should sell his energy shares.
deduction	noun	an amount taken away from a total	Travel costs for client visits may qualify as a tax deduction.
transaction	noun	a payment or exchange of money	Every transaction over $500 must be approved by a department manager.
bankruptcy	noun	the state of being unable to pay debts	The furniture chain filed for bankruptcy after several years of falling sales.
recession	noun	a period when the economy shrinks	Many firms reduced their advertising budgets during the recession.
downturn	noun	a decline in business or economic activity	Despite the downturn in tourism, the hotel kept all of its staff.
fluctuate	verb	to change up and down frequently	Fuel prices fluctuate so much that our shipping costs are hard to predict.
payable	adjective	that must be paid	The consulting fee is payable within thirty days of receiving the invoice.
rebate	noun	money returned after a purchase	Customers who buy the printer this month can claim a $50 rebate.
teller	noun	a bank employee who handles cash for customers	The teller counted the deposit twice before issuing a receipt.
debit	noun	money taken out of a bank account	The monthly software fee appears as a debit on our business account statement.
incur	verb	to become responsible for a cost	Employees who incur expenses while traveling should keep all their receipts.
costly	adjective	expensive	Replacing the entire computer system would be too costly this year.
spreadsheet	noun	a computer table for numbers and calculations	Please update the budget spreadsheet with last month's actual figures by Friday.
subsidize	verb	to pay part of the cost of something	The company will subsidize gym memberships for all full-time employees.
economize	verb	to spend less money; to save	To economize, the department now holds most training sessions online.
overhead	noun	regular business costs such as rent and electricity	Moving to a smaller office reduced our monthly overhead considerably.
portfolio	noun	a collection of investments owned by a person or firm	The fund manager added more bonds to the portfolio to lower its risk.
calculation	noun	the process or result of working out numbers	According to the finance team's calculations, the project will break even in two years.
insufficient	adjective	not enough	The payment was declined because of insufficient funds in the account.

Collocations: stay within budget · go over budget · submit an expense report · cut costs · generate revenue.

Read: "Employees will be paid back for meals during business trips."

Answer: "Some travel expenses are reimbursable." — paid back = reimbursed; meals during business trips = travel expenses.

Extra words from the TOEIC Service List (TSL 1.2) by Browne, Culligan & Phillips, newgeneralservicelist.com. Meanings and example sentences by Noto. This word list is shared under CC BY-SA 4.0.

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