repaso examen i cont ingles

8/13/2019 Repaso Examen I CONT Ingles

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Repaso examen I CONT

Accounting – an information system that provides reports to users about the economics

activities and condition of a business.

Business – is an organization in which basic resources (inputs), such as materials andlabors, are assembled and processed to provide goods or services (outputs) to customers.

Types of businesses

Service Businesses - provide services rather than products to customers. Examples:

Delta Air Lines (transportation services), The Walt Disney Company (entertainment

services).

Merchandising Businesses – sell products they purchase from other businesses to

customers. Examples: Wal-Mart (general merchandise), Amazon.com (Internet

books, music, videos). Manufacturing businesses – change basic inputs into products that are sold to

customers. Examples: Ford Motor Co. (cars, trucks, vans), Dell Inc. (personal

computers).

Role of Accounting in Business

Identify users.

Assess user’s information needs.

Design the accounting information system

Record economic data about business activities and events. Prepare accounting reports for users.

Users of accounting information:

Internal users – include managers and employees. The area of accounting that

provides internal users with information is called management accounting. The

objective of management accounting is to provide relevant and timely information

for managers’ and employees’ decision-making needs. Oftentimes, such information

is sensitive and is not distributed outside the business. Ex: information about

customers, prices, and plans to expand the business. Managerial accountants

employed by a business are employed in the private accounting.

External users – include investors, creditors, customers and the government. The

area of accounting that provides external users with information is called financial

accounting. The objective of financial accounting is to provide relevant and timely

information for the decision-making needs of users outside of the business. Ex:

general-purpose financial statements.



Ethics – moral principles that guide the conduct of individuals.

Sarbanes-Oxley Act of 2002 (SOX) – as a result of accounting and business frauds,

Congress passed new laws to monitor the behavior of accounting and business. SOX

established a new oversight body for the accounting profession called the Public Company

Accounting Oversight Board. In addition, SOX established standards for independence,corporate responsibility, and disclosure.

GAAP – Generally Accepted Accounting Principles. Generally accepted guidelines for the

preparation of financial statements.

FASB – Financial Accounting Standard Board. The authoritative body that has the primary

responsibility for developing GAAP.

SEC – Securities and Exchange Commissions. An agency of the US government that has

authority over the accounting and financial disclosures for companies whose shares of

ownership (stock) are trade and sold to the public.

IFRS – International Financial Reporting Standards. Generally accepted accounting

principles adopted for many countries outside of the United States. The organization that

issues the IFRS is the International Accounting Standards Board (IASB).

Principios y supuestos de la contabilidad

Revenue Recognition Principle – the accounting concept that supports reporting revenues

when the services are provided to customers.

Cost Principle – amounts are initially recorded in the accounting records at their cost or purchase price.

Matching principle – this concept is applied by matching the expenses incurred during a

period with the revenue that those expenses generated.

Full disclosure principle – a una empresa se le requiere que reporte más allá de los estados

financieros que puedan impactar las decisiones de los usuarios.

Business Entity Assumption – limits the economic data in accounting system to data

related directly to the activities of the business. In other words, the business is viewed as an

entity separate from its owners, creditors, or other businesses.

Time period assumption – presume que la vida de la empresa puede ser dividida en

periodos (meses, trimestres, años…).



Accounting Ecuation: Assets = Liabilities + Owner’s Equity

Assets – Liabilities = Owner’s Equity

Assets – the resources owned by a business. Ex: cash, land, accounts receivable, buildings,

equipment, insurances.

Liabilities – the rights of creditors that represents debts of the business. Ex: accounts

payable, notes payable.

Owner’s Equity – the rights of the owners of the business.

Business transaction – an economic event or condition that directly changes an entity

financial condition or its results of operations.

TYPES OF TRANSACTIONS AFFECTING OWNER’S EQUITY:

+ - + -

Owner’s

investments

Owner’s

withdrawals

Revenues Expenses

Financial Statements – financial reports that summarize the effects of events on a

business.

Income statement – a summary of the revenues and expenses for a specific period of time,

such as a month or a year.

Statement of Owner’s Equity – a summary of the changes in owner’s equity that have

occurred during specific period of time, such as a month or a year.

Balance Sheet- a list of the assets, liabilities and owner’s equity as of a specific date,

usually at the close of the last day of a month or a year.

Statement of cash flows – a summary of the cash receipts and cash payments for a specific

period of time, such as a month or a year.



Nombre de la compañía

Income Statement

For the Month Ended,

Revenues

Consulting Revenue 300

Rental Revenue 500Total Revenues 800

Expenses

Wages Expense 200

Supplies Expense 100

Total expense 300

Net Income 500


Statement of Owner’s Equity

For the Month Ended,

_____, Capital, empezando el mes $$

Investment $$

Drawings -$$

Net income / net loss $$

_____, Capital, terminando el mes 200


Balance Sheet

Fin de mes

Assets Liabilities

Cash $ Accounts payable $

Supplies $ Owner’s Equity

Land ____, capital $

Total assets $ Total liab + OE $

CAPITULO 2

Account – an accounting form that is used to record the increases and decreases in each

financial statement item.

Ledger – a group of accounts for a business.

Chart of accounts – a list of the accounts in the ledger.

T account – simplest form of an account. Tool to understand the effects of the transactions.

Double-entry accounting system – a system of accounting for recording transactions,

based on recording increases and decreases in accounts so that debits equal credits.



Normal balance of an account – can be either a debit or a credit depending on whether

increases in the account are recorded ad debits or credits.

Assets + -

Liabilities - +

Ingresos - +

Capital - +

Expenses + -

Drawings + -

Journal – the initial record in which the effects of a transaction are recorded.

Trial balance – a summary listing of the titles and balances of accounts in the ledger.


Trial Balance

Fecha especifica

Assets $

Liabilities $

Capital $

Drawings $

Revenues $

Expenses $

Total $ = $

repaso examen i cont ingles

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