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Vocabulary Words Lesson 2 Accounting 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.
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