Japanese Business Glossary

株式併合 (kabushiki heigo) refers to a "reverse stock split" or "reverse share split" in Japanese. This is a corporate action in which a company reduces the number of its outstanding shares by merging multiple existing shares into a smaller number of new shares.

For example, in a 1-for-2 reverse stock split, shareholders would receive one new share for every two shares they previously held. While the total number of shares decreases, the overall value of the shares remains the same, resulting in an increase in the share price.

Companies might undertake kabushiki heigo to increase the stock price, meet stock exchange listing requirements, or reduce the number of shareholders.

元帳 (gencho) refers to the "general ledger" in accounting. It is a comprehensive record-keeping book that contains all the financial transactions of a company, organized by accounts. The general ledger is a central component of the accounting system and includes detailed information on assets, liabilities, equity, revenues, and expenses.

Entries in the gencho are derived from subsidiary ledgers and journals, ensuring that all financial data is accurately tracked and reported. Maintaining an accurate and up-to-date gencho is essential for preparing financial statements, conducting audits, and managing the financial health of a business.

破産宣告 (hasan senkoku) refers to a "bankruptcy declaration" or "bankruptcy adjudication" in Japanese. It is a legal process whereby a court formally declares an individual or business insolvent, meaning they are unable to pay their debts.

The process of hasan senkoku involves the court determining that the debtor's financial situation is beyond recovery and officially recognizing their bankruptcy status. Once declared bankrupt, the debtor's assets are typically liquidated to repay creditors to the extent possible. This declaration also provides legal protection to the debtor from further collection efforts by creditors.

売上債権 (uriage saiken) refers to "accounts receivable" or "sales receivables" in Japanese. It represents the money that a business is owed by its customers for goods or services that have been delivered or provided but not yet paid for.

In accounting, uriage saiken is recorded as an asset on the balance sheet because it is expected to be converted into cash in the future. Managing accounts receivable is essential for maintaining cash flow and ensuring that the business can meet its financial obligations.

売り上げ (uriage) refers to sales or revenue in a business context. It represents the total income generated from the sale of goods or services over a specific period, typically measured in monetary terms. 売り上げ is a crucial indicator of a company's performance and financial health, reflecting the effectiveness of its sales strategies, market demand, and overall business operations.

Monitoring uriage helps businesses assess their growth, identify trends, and make informed decisions about production, marketing, and expansion. It is often analyzed in conjunction with other financial metrics, such as profit margins and expenses, to provide a comprehensive view of the company's economic status.

事業主借 (jigyounushi-kari) refers to "owner's loan" or "owner's borrowing" in a business context. This term is used in the accounting of small businesses or sole proprietorships to indicate the funds that the business owner has borrowed from the business. It represents the amount of money taken out of the business for personal use or to cover personal expenses, which the owner intends to repay at a later date.

In accounting, jigyounushi-kari is recorded as a liability on the balance sheet, reflecting the obligation of the owner to return the borrowed funds to the business. This practice helps keep the business finances separate from the owner's personal finances, ensuring clear and accurate financial reporting. Managing jigyounushi-kari is important for maintaining transparency and accountability in the financial operations of a business, allowing for better tracking of cash flow and financial health.