VOCABULARY

ASSETS: An asset is an asset that the company owns and can converters in cash or cash
equivalents.

Cash: It is the liquid element owned by the company, that is, it is money. The
company uses this cash to meet its immediate obligations

Accounts Receivable: It is where increases and cuts linked to the sale of different
concepts to products or services are recorded. This account consists of bills of
exchange, credit and promissory notes in favor of the company.

Inventory: They are tangible assets that are held for sale in the ordinary course of
business or to be consumed in the production of goods or services for further
marketing.

Fixed Assets: It is an asset of a company, whether tangible or intangible, which can

not become liquid short-term and are usually necessary for the operation of the
company and not intended for sale.

Accumulated Depreciation: Is the total amount of the devaluation that took over a
business over the life of each asset. Usually, a company must record depreciation
expense each month, then the depreciation expense becomes part of accumulated
depreciation to track the total depreciation.

LIABILITIES: The liability is debt that the company has, as reflected in the balance sheet
comprises the current obligations of the company are rooted in past financial transactions.

Accounts Payable: Accounts Payable arising on the purchase of material goods

(inventories), services received, expenses incurred and acquisition of fixed assets or
investments in hiring process.

Taxes Payable: Taxes are benefits today usually money, the state and other public
entities, that they claimed, by virtue of its coercive power, in the form and amount
determined unilaterally and without special consideration in order to meet the needs
collective.

Wages Payable: It is the account where the debts incurred by the company to its
employees and should be paid in a stipulated time period is recorded.

Notes Payable: Is the account where the documents certifying transactions such as
buying real estate or equipment, goods, and other documents replace some of these

debts on open account such as letters, notes and other recorded depending on who is
this account should be separated.
STOCKHOLDERS' EQUITY: The set of produced goods used to produce other goods.
Capital in financial sense is all money that was not consumed by its owner, but has been
saved and placed in the financial market, either buying stocks, bonds, public funds, or
making deposits in depository institutions.
Common Stock: Registered common shares, representing the capital of the true
owners of society; because they are the ones with deliberative power.
Retained Earnings: The balance of this account at the time of the initial adjustment
must be compared with the balance of the account Accumulated at the same date; the
debtor is a restriction on the payment of dividends in cash and shares.
Revenue: The company receives money or born receivables in its favor, it will effective on
the dates stipulated. Income occurs when business assets increases and this increase is not
due to new members' shares.
Sales returns and allowances: The account records the value of the returned goods
or bonuses given or made by customers; increases by debit, the record is of the form.
Expenses: In an industrial, commercial or service provision business to function normally
finds it unavoidable to acquire certain goods and services such as: labor, electricity,
telephone, etc.
Cost of Goods Sold: The cost of sales is the cost incurred to sell an asset, or to
provide a service. It is the value that has been incurred to produce or purchase a
commodity to be sold.
Depreciation Expense: Depreciation expenses are periodic savings going by a
company to the end of the life of an asset, the company has a save to renew the asset
(buy one later).
Payroll Tax Expense: These taxes are business expenses and are recorded as debits
to expense account, up to this point the description of payroll taxes has been linked
to taxes that are required to pay employees and withholding on their wages.
Rent Expense: This account represents the obligation of the company to pay bills,
leases, and other equipment at the time they become due.