Basic Accounting

Ingeniería en Gestión Empresarial

Unity #2

students:
Karla Antunez
Jahaciel Espinosa
Maribel Hernandez
Daniela Martínez
Evelyn Macias
Susana Zamorano
Teacher: MIREYA MERCADO MENDEZ
2° Sabatino

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 INDEX
INTRODUCTION .................................................................................................................. 3
BASIC ACCOUNTING .......................................................................................................... 4
FUNCTIONS ..................................................................................................................... 4
OBJECTIVE OF THE ACCOUNTING ................................................................................... 4
CONCEPTS ...................................................................................................................... 5
ACCOUNTING PROCESS.................................................................................................... 6
Account ............................................................................................................................. 6
a) Asset Accounts ....................................................................................................... 6
b) Liability Accounts .................................................................................................... 6
c) Result Accounts ...................................................................................................... 6
Names of the accounts ...................................................................................................... 6
What is an asset? ................................................................................................................. 7
What is a liability? ................................................................................................................. 8
The balance .......................................................................................................................... 8
CONCLUSIONS.................................................................................................................... 9

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INTRODUCTION

As a small introduction, we mentioned that Accounting in its different applications is a

basic tool for the correct management of business. Nowadays accounting systems are
the main part of a company because it allows knowing the financial situation,
information with which it is possible to determine what will be the next step in our
business.

The efficient use of the different accounting applications reveals at any time what
investments we can make, what investment we have made and when we are making or
losing with the aforementioned investments.
Nowadays, accounting applied in a professional or empirical way is one of the
fundamental pillars applicable in our finances.

With this essay I intend to summarize in a practical way, the basic applications of
accounting, hoping it can be used as a reference manual easy to understand and
representative of what I call the heart of the art of counting. There are different
references in this material in terms of history, notable people in accounting and quick
examples of application

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BASIC ACCOUNTING

THE ACCOUNTING is an auxiliary technique of the Economy, whose purpose is to support

the processes in the Administration of a company in order to provide efficiency. The
information that is delivered serves the Executives to guide Decision Making with
respect to the future of the organization. It is the art of registering, classifying and
synthesizing in a meaningful way, expressing them in money, the acts and operations
that have, even partially, financial characteristics and interpreting their results.

FUNCTIONS

Historical: manifested by the chronological record of economic events that appear in

the life of the company
Statistics: it is the reflection of economic facts in quantities that give a real vision of
how the situation of the economic company is affected: it studies the process that is
followed to obtain the product. Financial: analyzes the obtaining of resources, to face
the commitments of the company
Fiscal: it is to know how it affects the fiscal dispositions, to know all the existing taxes
Legal: know the articles of the commercial code, labor code and other laws that may
affect the company so that the accounting legally reflects the content of the activity

OBJECTIVE OF THE ACCOUNTING

• Provide a numerical image of what actually happens in the life and activity of the
company,
know the Heritage and its modifications.
• Provide a base in figures to guide management actions in their decision making.
• Provide the justification for the correct management of the company's resources.

To be able to register operations, some counters use the T accounts or also called the
major schemes.

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CONCEPTS

a) The debit entries recorded in the account are called charges.

b) The entries registered to the credit of the account are called installments.

c) The sum of the charges is called: debits

d) The sum of the subscriptions is called: credits

e) The difference between debits and credits is called balance.

f) When the debits are greater, it is called debit balance.

g) When the credits are greater, it is called credit balance

h) When debits and credits are equal, it is said that the account is settled

CLIENTES

Must or charge Haber or credit

Debtor Creditor
movement movement

Debtor balance Balance creditor

Bill paid off

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ACCOUNTING PROCESS

The accounting information that a company presents is elaborated through what we

callac counting proces.The accounting process is the cycle through which the
transactions of a company are registered and summarized for obtaining the Financial
Statements.

Account

Is the minimum unit of record used to post. It is the place where the increases or
decreases of each game are recorded, caused by the movements that originate in a
transaction. These accounts can be Active, Passive, and Result.

a) Asset Accounts

When they increase, they are loaded,

When they decrease, they are credited.

b) Liability Accounts

When they decrease they are loaded

When they increase, they are paid.

c) Result Accounts

When there are losses, they are charged

When there are profits, they are paid.

Names of the accounts

The accounts or sub accounts (divisions) of an account used by different companies
may vary, depending on the business, however, there are items defined by the Mexican
Institute of Public Accountants for an adequate presentation of the financial
statements.

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This process consists of the following steps:

1. Record transactions in the general journal.

2. Pass the information from the general journal to the general general.
3. Obtain the decomposition balance.
4. Register adjustment seats.
5. Obtain the adjusted test balance.
6. Formulate Financial Statements.
7. Make the seats open.
8. Obtain the check balance after closing.

What is an asset?

An asset is a good that the company owns and that can

be converted into money or other equivalent liquid
means.
Classification of assets
The assets that a company owns are classified according
to their liquidity, that is, the ease with which that asset
can be converted into money. Therefore, they are divided
into:
Fixed asset. Are the assets used in the business and not acquired for sale purposes,
such as machinery and real estate
Current assets. They are assets that are expected to be used in a period less than a
year, such as stocks.
Asset accounts, both current and fixed, are included in the balance sheet.Active =
Liability + Capital

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What is a liability?

The liability consists of the debts that the

company owns, included in the balance
sheet, and includes the current obligations
of the company that originate in past
financial transactions.
Classification of liabilities

The accounting liability is classified according to its enforceability over time, that is,
how long it takes for these obligations to expire. The liabilities of divide in
Long term: expires in a period exceeding one year.
Short term: expires in a period of less than one year.

The balance

The balance sheet is the financial statement of a company at a certain time. In order to
reflect this statement, the balance sheet shows the assets (what the organization has),
the liabilities (their debts) and the difference between them (the net worth).

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CONCLUSIONS

In conclusion we have that accounting is a very useful and important tool that any
company should take into account
Accounting is based on the need to have accurate, timely and complete financial
information, with documents and records that demonstrate the processes performed by
an entity and the results obtained that reflect its financial situation.

Any organization that performs a permanent or occasional activity, for its operation
requires controlling the operations it carries out, the changes that have occurred in its
assets, its obligations and its patrimony, so that the results of the administrative and
financial management can be informed and interpreted. . Many accounting scholars
coincide in pointing out that Accounting is an economic science, which has strong
relations with the law since it must adapt to compliance with the legal norms that
govern countries and public and private institutions.