Professional Documents
Culture Documents
Accounting
What is 'Accounting'
Double Entry
Types of Accounts
The terms "debit" and "credit" in bookkeeping and accounting simply denote an
increase or decrease to the balance of a referenced business account. Using
"debit" and "credit" to record increases or decreases of account balances
conforms with the underlying occurrence in business transactions. The exchange
of financial interests involving two or more business accounts inevitably leads to
increases and/or decreases among those accounts. Rules in bookkeeping and
accounting dictate that a debit to the accounts of assets, expenses or losses and
a credit to the accounts of liabilities, equities, revenue or gains both increase the
balance of each of those accounts. A debit decreases the account balance for
liabilities, equities, revenue or gains, and a credit decreases the asset, expense
or loss account balances.
Double Entry
The fundamental concept of double entry derives from the use of debit and credit
to record business transactions. The total debits always equal the total credits.
Customarily, in bookkeeping and accounting, the asset, expense and loss
accounts are listed on the left side of a bookkeeping sheet, and the liability,
equity, revenue and gain accounts are listed on the right side, with the two sides
maintaining the same total balance. A debit to one or more accounts must be
accompanied by a credit to at least one account, equally increasing or decreasing
the balance on each side. Other times, a debit to either side is balanced out by
an equal credit to the same side.
Chart Of Accounts
A listing of each account a company owns, along with the account type
and account balance, shown in the order the accounts appear in the
company’s financial statements. “Chart of accounts” is the official accounting
term for the display of this information, which includes both balance-sheet
accounts and income-statement accounts. The chart of accounts shows assets,
liabilities, equity, revenues and expenses, all in one place and broken down into
subcategories. Each chart in the list is assigned a multidigit number to help
identify the account type (e.g. all asset accounts might start with the number 1).
For a small corporation, the chart of accounts might include a checking account,
savings account, petty cash balance, accounts receivable, undeposited funds,
inventory assets, prepaid insurance, vehicles, buildings, stockholders’ equity, the
company credit card, accounts payable, payroll liabilities and more. Even a small
company could have dozens of accounts in its chart of accounts. The larger and
more complex the company, the larger and more complex the chart of accounts
will be, but accounting software makes it easy to categorize accounting entries
correctly and maintain an accurate and organized chart of accounts.
Here is a way to think about the chart of accounts as it relates to your own
finances that might help you better understand how it relates to a business. Say
you have a checking account, a savings account and a certificate of deposit
(CD) at the same bank. When you log in to your account online, you’ll typically go
to an overview page that shows the balance in each account. Similarly, if you use
an online program that helps you manage all your accounts in one place,
like Mint or Personal Capital, what you’re looking at is basically the same thing
as a company’s chart of accounts. You can see all your assets and liabilities, like
your checking account, savings account, certificates of deposit, credit
cardaccounts, student loans, auto loans and anything else, all on one page.
Account Statement
General Ledger
Another important financial report is the income statement. The income statement
formula is (revenue – expenses = net income, or profit). This formula must also
stay in balance so that the financial statements are accurate. It is possible for a
transaction to impact both the balance sheet and the income statement. For
example, assume that a company bills a client for $500 and posts a $500 debit
(increase) to accounts receivable and a $500 credit (increase) to revenue. Debits
and credits both increase by $500, and the totals stay in balance.
Accountant
An accountant is a professional person who performs accounting functions such
as audits or financial statement analysis. Accountants can either be employed
with an accounting firm, a large company with an internal accounting department,
or can set up an individual practice. Accountants are given certifications by
national professional associations, after meeting state-specific requirements,
although non-qualified persons can still work under other accountants, or
independently.
Accountants must abide by the ethical standards and guiding principals of the
region where they practice such as IFRS or GAAP. The most common
accounting designations are Chartered Accountants (CA), Certified Management
Accountants (CMA), and Certified General Accountants (CGA). Other
Designations include Certified Internal Auditor (CIA), Public Accountant (PA),
and Certified Public Accountant (CPA). A Certified Internal Auditor doesn't have
to receive any license in order to practice, and neither do Certified Management
Accountants.
Accountants can have more than one designation and may preform multiple types
of accounting duties. The type of educational background and designation that
an individual has will determine their professional duties. Accountants have
bachelor’s degrees, and they have to get a certificate which can take up to a year
to obtain depending on the type of certification being pursued and in which state.
In the U.S., requirements for accountants can acquire these certificates and
licenses vary from state to state. The one requirement that is uniform in every
state is the passing of the Uniform Certified Public Accountant Examination, an
exam that is written and graded by the national organization the American
Institute of Certified Public Accountants.
Legal Requirements
History
After the start of the Great Depression and the formation of the Securities and
Exchange Commission (SEC), the agency required all publicly traded companies
to issue reports written by accredited accountants. Since the turn of the 19th
century and the reforms put in place the Great Depression, accountants are a
ubiquitous and large part of any business.
Capital Account
A capital account shows the net change in physical or financial asset ownership
for a nation and, together with the current account, constitutes a nation's balance
of payments. The capital account includes foreign direct investment (FDI),
portfolio and other investments, plus changes in the reserve account. A capital
account may also refer to an account showing the net worth of a business at a
specific point in time.
A nation’s capital account summarizes the country’s overall economic status. The
markets closely monitor the capital account because it shows the overall direction
of the country’s economy and provides buy and sell signals for various industries
or portfolio strategies.
A country’s balance of trade is part of its balance of payments. For example, the
balance of payments in the United States is composed of three subaccounts: the
current account, the capital account and the financial account. Each has its own
types of inflows and outflows.
In a sole proprietorship, one capital account begins with the owner’s original
investment and increases for each year’s earnings minus each year’s
withdrawals. The drawing account, which is a contra account, has a debit balance
equal to the amount of business assets the owner withdraws during the current
accounting year for personal use. At each accounting year’s end, the drawing
account is closed by transferring its debit balance to the capital account. The total
of the balances in the capital accounts must equal the reported total of the
company’s assets minus its liabilitie
Accounting Standar
The first accounting standards were developed in the 1930s. They were
established for public entities and included in multiple securities acts that followed
the Great Depression. The initial regulations established were included in
the Securities Act of 1933 and the Securities Exchange Act of 1934. These
technical pronouncements have ensured transparency in reporting and set the
boundaries for financial reporting measures.
Overseeing Bodies
The American Institute of Certified Public Accountants (AICPA) developed,
managed and enacted the first set of accounting standards. In 1973, these
responsibilities were given to the Financial Accounting Standards Board
(FASB). As of May 2016, the Financial Accounting Standards Board still
maintains regulation and administration on accounting standards.
Various Standards/Principles
Generally Accepted Accounting Principles are heavily used among public and
private entities in the United States. The rest of the world primarily uses
International Financial Reporting Standards (IFRS). These standards are
required to be used for multinational entities. Accounting standards have also
been established by the Governmental Accounting Standards Board (GASB) for
accounting principles for all state and local governments.
N° COGNADO ESPAÑOL FALSO ESPAÑOL PALABRA CON LA
COGNADO QUE ME ENGAÑO
1 PROCESSES PROCESOS RECORDING GRABACION RECORDAR
2 USE UTILIZAR PAGE PAGINA PAGAR
3 INFORMATION INFORMACIÓN RECORDED GRABADO RECORDAR
4 PRODUCT PRODUCTO GRADED CALIFICADO GRADO
5 DETERMINE DETERMINAR PLACE LUGAR PLAZA
6 ECONOMIC ECONOMICO
7 OPERATIONS OPERACIONES
8 SERIES SERIE
9 PERIOD PERIODO
10 COMBINATION COMBINACION
11 COLLECTION COLECCIÓN
12 DEPARTMENTS DEPARTAMENTOS
13 VARIOUS VARIOS
14 BASIC BASICO
15 NUMBER NUMERO