GLOSARIO DE TERMINOS - GLOSSARY OF TERMS 31-1-2017

 Accounting: process of identifying, measuring, recording, and

communicating financial information about a Company`s business
activities so decision makers can make informed decisions.
 Account receivable turnover: is the ratio of net credit sales to
accounts receivables. this ratio indicates how many times in the
period credit sales have been created and collected on
 Assets: things of value owned by a business. An asset may be a
physical property such as a building, or an object such as a stock
certificate, or it may be a right, such as the right to use a patented
process.
 Current Assets: are those assets that can be expected to turn into
cash within a year or less. Current assets include cash, marketable
securities, accounts receivable, and inventory.
 Fixed Assets: cannot be quickly turned into cash without interfering
with business operations. Fixed assets include land, buildings,
machinery, equipment, furniture, and long-term investments.
 Intangible Assets: are items such as patents, copyrights, trademarks,
licenses, franchises, and other kinds of rights or things of value to a
company, which are not physical objects. These assets may be the
most important ones a company owns.
 Accounts payable: amounts owed by the company for the goods or
services it has purchased from outside suppliers
 Accounts receivable: amounts owed to the company by its
customers.
 Balance sheet -- a statement of the financial position of a company
at a single specific time (often at the close of business on the last day
of the month, quarter, or year.)
 Cash flows (24) Cash flow -- the amount of actual cash generated by
business operations, which usually differs from profits shown
 Current liabilities: consist of obligations that will be satisfied within
one year or the operating cycle, whichever is longer
 current ratio: is the ratio of current assets to current liabilities;
indicates a company`s ability to satisfy its current liabilities with its
current assets
 Expenses: are the cost of assets used or the liabilities created, in
operation of the business
 GLOSARIO DE TERMINOS - GLOSSARY OF TERMS 31-1-2017

 Financial accouting , Is one that provides information for external

stakeholders to the company
 Financial statement Financial statements, are reports provided by
the accounting, which show the financial situation of the company at
a given time
 Gross margin – gross profit: is the ratio of gross income or profit to
sales. This ratio indicates how much of every dollar of sales is left
after costs of goods sold
 Income statement : report how well a company has preformatted
its operations (revenues, expenses, and income) over a period of
time
 intangible assets: are similar to property plant and equipment in that
provide a benefit to a company over a number of years; however,
these assets lack physical substance
 Inventory turnover: is the ratio of cost of goods sold to inventory.
This ratio indicates how many time inventory is created and sold
during the period.
 Liabilities: are the obligations that the company has with third parties
 Managerial accounting: The phase of accounting concerned with
providing information to managers for use within the organization
 Net income : Net income, is what remains of income after deducting
costs and expenses
 Net profit margin : is the ratio of net income to sales, indicates how
much of each dollar of sales is left over after all expenses
 Operating cycle : is the average time that it take a company to
purchase goods, resell the goods, and collect the cash from
customers
 Operation profit margin: is the ratio of operating profit to sales. This
is a ratio that indicates how much of each dollar of sales is left over
after operating expenses
 Property, plant and equipment: represents the tangible, long-lived,
productive assets used by company in its operations to produce
revenue
 Quick ratio (acid test): is the ratio of quick assets (generally current
assets less inventory) to current liabilities; indicates a company`s
ability to satisfy current liabilities with its most liquid assets
 GLOSARIO DE TERMINOS - GLOSSARY OF TERMS 31-1-2017

 Revenue : is the increase in assets that results from the sale of

products or service
 Shareholders' equity: represents the net value of a company, or the
amount that would be returned to shareholders if all the company's
assets were liquidated and all its debts repaid Working capital
 Total debt to assets ratio: indicates the proportion of assets that are
financed with debt
 Administrative costs: All executive, organizational, and clerical costs
associated with the general management of an organization rather
than with manufacturing or selling
 Budget : A detailed plan for the future, usually expressed in formal
quantitative terms
 Conversion cost: Direct labor cost plus manufacturing overhead cost
 Cost behavior: The way in which a cost reacts to changes in the level
of activity
 Cost object: Anything for which cost data are desired. Examples of
cost objects are products, customers, jobs, and parts of the
organization such as departments or divisions.
 Cost of goods manufactured: The manufacturing costs associated
with the goods that were finished during the period.
 Direct cost: A cost that can be easily and conveniently traced to a
specified cost object.
 Direct labor: Factory labor costs that can be easily traced to
individual units of product.
 Direct materials: Materials that become an integral part of a finished
product and whose costs can be conveniently traced to it.
 Finished goods: Units of product that have been completed but not
yet sold to customers.
 Fixed cost: A cost that remains constant, in total, regardless of
changes in the level of activity within the relevant range. If a fixed
cost is expressed on a per unit basis, it varies inversely with the level
of activity.
 Indirect cost: A cost that cannot be easily and conveniently traced to
a specified cost object.
 Indirect labor: The labor costs of janitors, supervisors, materials
handlers, and other factory workers that cannot be conveniently
traced to particular products
 GLOSARIO DE TERMINOS - GLOSSARY OF TERMS 31-1-2017

 Indirect materials: Small items of material such as glue and nails that
may be an integral part of a finished product, but whose costs cannot
be easily or conveniently traced to it
 Inventoriable costs: Synonym for product costs.
 Manufacturing overhead: All manufacturing costs except direct
materials and direct labor.
 Opportunity cost: the potential benefit that is given up when one
alternative is selected over another.
 Period Costs: that are taken directly to the income statement as
expenses in the period in which they are incurred or accrued.
 Prime cost: Direct materials cost plus direct labor cost
 Product costs: All costs that are involved in acquiring or making a
product. In the case of manufactured goods, these costs consist of
direct materials, direct labor, and manufacturing overhead.
 Raw materials: Any materials that go into the final product
 Schedule of cost of goods manufactured: A schedule showing the
direct materials, direct labor, and manufacturing overhead costs
incurred during a period and the portion of those costs that are
assigned to Work in Process and Finished Goods
 Selling costs: All costs that are incurred to secure customer orders
and get the finished product or service into the hands of the
customer.
 Sunk cost: A cost that has already been incurred and that cannot be
changed by any decision made now or in the future
 Variable cost: A cost that varies, in total, in direct proportion to
changes in the level of activity.
 Work in process: Units of product that are only partially complete