ANDREA CAROLINA GONZALEZ RINCON

GESTION FINANCIERA Y DE TESORERIA

FICHA: 1197981

VOCABULARY
1. FINANCIAL STATEMENTS: is a formal record of the financial activities and
position of a business, person, or other entity. Relevant financial information
is presented in a structured manner and in a form easy to understand.

2. DEPRECIATION: is an accounting method of allocating the cost of a tangible

asset over its useful life. Businesses depreciate long-term assets for both tax
and accounting purposes.

3. MANAGERIAL ACCOUNTING: is the process of identifying, measuring,

analyzing, interpreting and communicating information for the pursuit of an
organization's goals.

4. ACCOUNTING RECORDS: are all of the documentation and books involved

in the preparation of financial statements or records relevant to audits and
financial reviews. Accounting records include records of assets and liabilities,
monetary transactions, ledgers, journals, and any supporting documents
such as checks and invoices.

5. ASSET: is something that an entity has acquired or purchased, and that has
money value (its cost, book value, market value, or residual value). An asset
can be something physical, such as cash, machinery, inventory, land and
building.

6. LIABILITY is defined as the future sacrifices of economic benefits that the

entity is obliged to make to other entities as a result of past transactions or
other past events, the settlement of which may result in the transfer or use of
assets, provision of services or other yielding of economic benefits in the
future.

7. TURNOVER: is an accounting term that calculates how quickly a business

collects cash from accounts receivable or how fast the company sells its
inventory. In the investment industry, turnover represents the percentage of
a portfolio that is sold in a particular month or year.

8. TAXES: are generally an involuntary fee levied on individuals or corporations

that is enforced by a government entity, whether local, regional or national in
order to finance government activities. In economics, taxes fall on whomever
pays the burden of the tax, whether this is the entity being taxed, like a
business, or the end consumers of the business's goods.
9. AUDIT: is an objective examination and evaluation of the financial statements
of an organization to make sure that the records are a fair and accurate
representation of the transactions they claim to represent. It can be done
internally by employees of the organization, or externally by an outside firm.

10. ACCOUNTING is the systematic and comprehensive recording of financial

transactions pertaining to a business, and it also refers to the process of
summarizing, analyzing and reporting these transactions to oversight
agencies and tax collection entities.

11. TREASURY: is the area of a company in which it manages the actions related
to the operations of monetary flows. It basically includes the management of
the cash and the various banking operations. Accounting records such
execution. For example, human resources perform the calculation of salaries
to be paid; treasury is responsible for ensuring that there is sufficient money
available to pay the salaries on the due date, and to give payment orders;
accounting and recording of movements.

12. CASH FLOW: are the inflows and outflows of cash or cash, in a given period.
Cash flow is the net accumulation of liquid assets in a given period and,
therefore, is an important indicator of the liquidity of a company.

13. CREDIT: is a financial transaction in which a person (the creditor) makes a

loan for a certain amount of money to another person (the debtor) and in
which the latter, the debtor, undertakes to return the amount requested of the
payment of accrued interest, insurance and associated costs if any) in the
time or term defined according to the conditions established for said loan.

14. INTEREST RATE: it is the cost that has a credit or the profitability of the
savings. It is a term that, therefore, allows to describe to the profit, utility,
value or the gain of a certain thing or activity.

15. RETURN ON EQUITY (ROE): is the amount of net income returned as a

percentage of shareholders equity. Return on equity measures a
corporation's profitability by revealing how much profit a company generates
with the money shareholders have invested.

16. INVESTMENTS: are equity investments in certain activities that may be

commercial or civil, in order to achieve economic performance. Anyone who
has some money can invest and look for this, to obtain greater profits in the
long run.
17. CAPITAL: is the set of resources, goods and values available to satisfy a
need or carry out a defined activity and generate a particular economic
benefit or profit, is closely related to the behavior of the people involved in
this aspect. It is often considered as part of the labor force. Also credit, since
it implies an economic benefit in the form of interest, is considered a form of
capital (financial capital)

18. KARDEX: is a document, card or register used to maintain control of the

merchandise when using the method of permanence in inventories, with this
record we can control the entries and exits of the goods and know the stocks
of all the items that the company for sale.

19. FINANCIAL INDICATOR: is a relation between figures extracted from the

financial statements and other accounting reports of a company with the
purpose of objectively reflecting the behavior of the same. It reflects,
numerically, the behavior or performance of an entire organization or one of
its parts. When compared to some reference level, the analysis of these
indicators may be indicating some deviation on which corrective or preventive
actions may be taken depending on the case.

20. INVENTORY: is a detailed, orderly and valued relationship of the elements

that make up the assets of a company or person at a given time.

21. LIQUIDITY: The ability of a person, company or bank to meet its financial
obligations.

22. INDEBTEDNESS INDICATOR: it is a financial reference whose objective is

to evaluate the degree and the modality of participation of the creditors of a
company in its pecuniary provision. It is a matter of specifying the risks
incurred by such creditors and the owners of the company as well as the
convenience or inconvenience of a certain debtor level of the firm.

23. DISCOUNT is a reduction or decrease in the price of an object or service.

Thus, the discount is presented as a benefit to the buyer, but for this it is not
necessary for the seller to lose part of the silver that has invested in buying
said product for sale or that the discounted price is below its fees for their
services rendered.

24. COST: is the economic expense that represents the manufacture of a product
or the provision of a service. In determining the cost of production, the retail
price of the good can be established.

25. PRICE: is the amount of money that society must give in exchange for a good
or service. It is also the amount of money allocated to a product or service,
or the sum of the values that the buyers exchange for the benefits of having
or using or enjoying a good or a service.