# Finance & Accounting Advanced

https://hienglishquiz.com/vocabulary/professional-specialized-c1-finance-and-accounting-vocab

- CEFR: C1 (Advanced)
- Theme: Professional & Specialized
- Words: 20
- Premium: no
- Locked: no

Advanced finance vocabulary for lending and investment, including escrow, collateral, underwriting and the hedging and gearing that shape a company's risk.

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## Word list

* **escrow** /ɛˈskroʊ/: Money or documents held by a third party until the conditions of a deal are met. — “The deposit is held in **escrow** until the house sale completes.”
* **collateral** /kəˈlætərəl/: Property or another asset that a borrower offers to guarantee a loan. — “The bank accepted the warehouse as **collateral** for the loan.”
* **underwriting** /ˈʌndərˈraɪtɪŋ/: The process of assessing and accepting financial risk, often for a loan or insurance policy. — “The bank's **underwriting** team reviewed the loan application.”
* **reconciliation** /ˌrɛkənˌsɪliˈeɪʃən/: The process of checking that two sets of financial records match each other. — “The **reconciliation** revealed a small error in last month's accounts.”
* **factoring** /ˈfæktərɪŋ/: The practice of selling unpaid invoices to a third party at a discount, in exchange for immediate cash. — “The small business used **factoring** to cover costs while waiting for customers to pay.”
* **indemnity** /ˌɪnˈdɛmnəti/: A promise to compensate someone for a loss or damage they might suffer. — “The contract included an **indemnity** clause in case of delays.”
* **disbursement** /dɪsˈbɜrsmənt/: A payment made from a fund, especially for a specific purpose. — “The final **disbursement** of the loan was released last week.”
* **covenant** /ˈkʌvənənt/: A condition in a loan agreement that the borrower must follow. — “Breaking the loan **covenant** allowed the bank to demand repayment.”
* **capital gains**: The profit made from selling an asset for more than it originally cost. — “She paid tax on the **capital gains** from selling her shares.”
* **goodwill** /ˈɡʊˈdwɪl/: The extra value of a business beyond its physical assets, based on its reputation. — “The buyer paid a premium for the company's strong **goodwill**.”
* **deferred revenue**: Money received for something not yet delivered. — “**Deferred revenue** made the quarter look far better than it was.”
* **contingent liability**: A possible debt that depends on a future event. — “The **contingent liability** was disclosed in a footnote.”
* **cost of capital**: What it costs a company to raise the money it uses. — “Nothing clears the **cost of capital** at that interest rate.”
* **gearing** /ˈɡɪrɪŋ/: The ratio of borrowed money to a company's own funds. — “**Gearing** of four to one made the bank nervous.”
* **free cash flow**: The cash left after paying for operations and equipment. — “**Free cash flow** turned negative for the first time in a decade.”
* **materiality** /məˌtɪriˈælɪti/: Whether an amount is large enough to affect a decision. — “**Materiality** was set at one per cent of turnover.”
* **hedging** /ˈhɛdʒɪŋ/: Reducing risk by taking an offsetting position. — “**Hedging** the currency cost them the gain and saved the year.”
* **intangible asset**: Something valuable that has no physical form. — “Most of the price was for one **intangible asset**.”
* **clawback**: The right to take back money already paid. — “The **clawback** clause was invoked for the first time that year.”
* **ring-fence**: To set money aside so it cannot be spent on anything else. — “They agreed to **ring-fence** the maintenance budget entirely.”

## Related

- Vocabulary library: https://hienglishquiz.com/vocabulary
- Section guide: https://hienglishquiz.com/vocabulary/llms.txt