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UNIVERSIDAD CENTRAL .

BASIC FINANCIAL ACCOUNTING CONCEPTS

accounting concepts

Asset: Anything having commercial value, exchange owned by an individual or entity.

Accounting Principles: These are a set of general rules and standards that guide book to develop criteria regarding the measurement of assets and economic information and economic elements of an entity

Ad-value: "According to value." It applies to tariff rates or rates based on a percentage of the invoice value rather than its weight or quantity.

Accounting Cycle: The period of time that records all transactions in a company ocurrren either monthly, quarterly, half yearly or annually, the most used is the year.

Advance: Advance Receipts or disbursements made before the expenditure is recognized as performed.

Action: A unit of capital or name of the holder and indicating ownership of a company.

Accreditation: Register a credit by accounting seat.

Account: Record of all transactions and the date of each one of them affecting a particular phase of a company. Is expressed in the form of debits and credits measured in monetary terms and showing balance act if it exists.

Accounts payable: Liabilities represented the amount owed by an individual or company to a creditor for the purchase of goods or services, based on a current account or short-term credit.

Accounts receivable: The owed to a company by sales of merchandise, based on a system of accounts.

Assistant Mayor: This is where you record the subsidiary accounts.

Appropriation: The transfer of possession of goods of its owner, called principal or consignor, another person, called the broker or agent, who becomes an agent of that for the purpose of selling the goods.

Audit: A management function whose purpose is to analyze and assess, on the wings view any corrective actions, internal control organizations to ensure the integrity of its assets, the accuracy of their information and maintain the effectiveness of their systems management.

Accounting: A system adapted to classify economic events occurring in a business. So that, becomes a central axis to perform the various procedures leading to the maximization of economic performance involves constitute a particular company.

Bearer shares: Capital stock of a corporation (or society) generally an economic partnership represented by certificates or bearer securities.

Balance Sheet: State of the financial situation of any economic unit, which displayed at any given time the asset, at cost, the cost of precious or other value.

Balance: The state that reflects the status of the assets of an entity at a given time. The balance is divided by three economic concepts, the Assets, Liabilities and Equity, each developed in groups of accounts that represent the different assets.
 

Budget: The estimated expenditure and income for a certain period, usually one year. Enables enterprises, governments, private organizations and families to set priorities and assess achievement of its objectives.

Bank Reconciliation: State that shows the difference between the balance of an account held by a bank and the respective account books according to the customer's bank.

Buy: Act by which an operator takes the domain of a property (or receives a service) against payment of a fee.

Closing entry: Journal Entry made at the end of an accounting period to close all accounts of income, expenses and other accounts of the period.

Common stock: Class of shares of a corporation or partnership (anonymously) that after considering the rights of the business class, where no limitation or preference on their participation in the distribution of surplus earnings of a company or the final distribution of its assets.

Current liabilities: This consists of the debts and liabilities payable by the company short term or within a period not exceeding approximately one year from the balance sheet date are usually paid with current assets.

Chart of Accounts: Contains all accounts estimated to be necessary when installing an accounting system. Should contain sufficient flexibility to incorporate the accounts in the future be added to the system.

Cost: The value assigned by an entity to obtain goods or services. All costs are costs but not all costs are expenses.

Cumulative preferred stock: is one where the dividends are not paid in any year will accrue in the future. Before any dividend can be paid to common shareholders, the entire balance of drag must be paid first to preferred stock.

Credit: Part of a registered seat on the right side of greater account daily. Purchases or sales accompanied by a promise to pay later than the date they are made.

Contingent liabilities: It is, in accounting, a possible obligation that arises from past events and whose existence may be the result, with some degree of uncertainty of a future event or which is not recorded on the books for not forcing the company to divest resources or may not be capable of quantification at that time.
 

Company: Company or board of several people linked by a common goal especially for commercial and industrial purposes.

Company sole owner: That where the owner provides the capital of the same thereby acquiring all the rights of business and all its obligations.

Corporations: Same as CxA membership number can not be less than seven. This type of company disappears with the death of a partner but retains the characteristics of business up immediately recovering their status with the integration of the beneficiary of the shares. In this the partners are not fully known by the public.
 

Cash Flow Statement: This shows the changes wrought in cash: operating activities, investing and financing of a company or business.

Cost of sales: The cost incurred for placing a well or to provide a service. Is the value that are incurred in producing or buying property being sold.

CIF: international terms of trade that serves to reflect a condition of sale that includes the price of the goods, the freight and insurance.

Creditors: The accounting for acquisitions are practiced simultaneously in the Journal of Shopping in the accounts of suppliers and their bank balances, and payments made to creditors are settled in the Journal of Building Expenses and simultaneously in this account is in the spoils under a regime similar to the account debtors.

Credit Note: This is the proof that a company sends their client to client, in order to inform accreditation in your account with a value determined by the concept shown on the same note. Some cases that used the credit note can be for: breakdown of products sold, rebates or price reductions, rebates or discounts, or correct errors in billing for excess. The credit note decreasing debt or the balance of the respective account.
 

Double-entry bookkeeping:is the basis of the standard system used by businesses and other organizations to keep track of financial transactions. Its premise is that financial conditions and results of operations of a business (or other organization) are fully represented by variables, named accounts, each of which reflects a particular aspect of the business as monetary value

Deferred charges: Deferred charge, expense paid in advance.

Document: Anything printed or described in which it is hoped to record or prove something.

Debit Note: This is a proof that a company sends to its client, which notifies you been charged or debited to your account a certain amount or value, the concept shown on the same note. This paper increases the value of the debt or account balance, either by an error in billing, interest for late payment, or any other circumstance which means increasing the account balance.
 

Document long-term receivables: comprises the accounts that will become effective in a distant future, that is for a term exceeding one year. Includes, among other loans and obligations of other entities

Debit: This refers to money that is the property of the client, who have it change in a bank account instead of credit, where money used is given.

Dividend: The payment made by a company to its owners, either in cash or shares. Company managers meet regularly to decide whether to pay dividends or not and to determine the amount and form of such payment.
 

Deposits in Transit: Those deposits are usually sent at the end of the month and they are not accredited in the bank so they will be loaded onto the company's books but not in a state of mind of the month.

Fixed liabilities: All the debts that are due within the subsequent fiscal periods (eg mortgages, bonds outstanding)

Financial Accounting: It mainly deals with the financial statements for use by those who provide funds to the entity and other persons who may have vested interests in the financial operations of the firm, company or organization.

Fixed Assets: The long cycle for the amount of production rather than for resale. Includes plant equipment and intangible assets.

FOB: Closing that establishes international maritime trade to the seller the following duties: pay for transportation to the ship and its cargo of goods, and the risks that arise until the goods are placed aboard the vessel in date and place agreed.

Freight: The freight prices, which may be provided by both a month in an amount proportional to the weight, volume or number of goods in transit or by a fixed amount.
 

Fit: They record that is made with the aim of bringing real value to the balance of the accounts that suffer depreciation and amortization as well as changes during an accounting period.
 

General Journal: It's where daily records all transactions of a business.
 

Gross Profit: Gross profit is considered the aggregate amount paid in each monthly period, without deduction for any amount from any source the decrease.

Heritage: The set of assets and liabilities of a person considered as a universal law, one legal unit. Heritage is a universal receiver, which is unchanged by the modifications to its content.

Inventory: Raw materials and materials, supplies or supplies, finished products and manufacturing processes and in-stock merchandise in transit, in trust or held by third parties entered.

Income: Cash or cash equivalent that is earned or received as a departure from the sale of goods and services.

Intangible asset: an asset is an identifiable non-monetary asset without physical substance held for use in the production or supply of goods or services, for rental to others, or for functions related to administration of the entity.

        

 

Liabilities: The funds to be a bank. The biggest liability for a bank are the deposits of their customers.

Liabilities: Some person who expires before one year. Includes vendors, public finance, social security and bank creditors or more short term.

Long-term liabilities: Includes obligations payable within a period exceeding one year, about as long as the balance sheet date.

Major General: This is where the accounts are registered controls.

Managerial accounting: is primarily responsible for the accumulation and analysis of relevant information for internal use by managers in planning, control and decision making.
 

 Note receivable in the short term: It consists of obligations that are expected to expire in less than a year and are necessary to sustain much of the company's assets as cash, accounts receivable and inventories.

Net profit: The gross income minus all deductions listed above except tax allowance, special deductions and family responsibilities.

 

Note: It is the basic and central to the accounting and payment services. The accounts represent the classification of all business transactions that have a company or business.
 

Nominal accounts: These are also called profit or loss, are those that are responsible for registering the corporate purpose of the company. Nominal accounts are comprised of revenues, expenses, sales costs and production costs.

Non-cumulative preference shares: These do not entitle the holder to receive dividends eventually approved, but states that the issuer pays only the current before paying dividends to ordinary shareholders.

 Notes Receivable: Accounts receivable are documented through letters, notes or other documents, native from business operations.

Note payable, are those that has the promise to pay unconditionally to a specified date, a certain amount of money

Or current assets: Assets of a company that can reasonably be expected to be converted into cash sold or consumed during the normal operating cycle.

Petty Cash: Fund a certain amount of funds which are extracted for petty expenses. This system is commonly used in business.

Preferred stock: Class of shares is entitled to priority over common shareholders in the profits of a company and often also on the assets in liquidation.

Promissory Note: This represents a promise to pay a sum of money on a stipulated future date.

Private Enterprise: The set of business activities of individuals.

 Public Enterprises: The created and sustained by the government.

 

Payroll: A manual accounting system consisting of a list of names of each of the individuals in an office must receive assets.
 

Real accounts: These are include the assets, liabilities and liquid capital of a negotiation, and as an integral part of the balance sheet are called balance sheet accounts.

Repayment: System of a future obligation settle gradually, by a capital account or by providing money to cover the debt. Gradual reduction of debt through periodic payments equal to the amount sufficient to pay current interest and liquidate the debt at maturity.

Shareholder: The legal owner of one or more shares of capital stock (or stock) of a company.

Sales: Transfer of the literalness of goods or property or the commitment to service in exchange for a current or future cash payments.

Statement: Balance sheet, an income statement (or outcomes), a state fund or any state aid or other financial data reporting derived from accounting records.

Single Entry Accounting: A set of annotations that are not based on a rule. It considers the spot and forward transactions. The first was recorded as cash inflows or outflows and second charged or correspondent account that is the amount of debtor or creditor.

Storage: It is a financial transaction whereby a financial institution in exchange for the maintenance of certain fixed monetary resources a period of time, reports a fixed or variable financial returns in the form of cash or in kind.
 

Subsidiary accounts: those that are not listed individually in the ledger, but auxiliary books and records must be 'controlled' by one or more collective accounts.

Statement: It is the one that represents the results of a business or company during an accounting period. This is considered a dynamic state in fact cover more than one date.

Stock company: Company organized as a separate legal entity authorized by a state where the property is divided into transferable shares of capital.

State capital: which is reflected in changes (increase-decrease) in equity of a business or enterprise.



 

Special Journal: These as well as general daily when used by the company must be formalized by a competent authority. These journals are used to facilitate the accounting records on companies that use manual accounting system.

Society person: These are content with a minimum of three and maximum of six people. These participants provide both capital and labor can be created with the same legal requirements that CxA and SA

Tax: It is a kind of tax (usually monetary obligations to the creditor tax) governed by public law.

Tangible Assets: Some assets of a company that has a physical presence or the material.

 Trial Balance: List or extract or total balances of debits and credits of all accounts in more than is to determine the debits equal the credits accents and set a basic outline for your status Financial.






By: Camilo Banguero

 

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