1.

The sense of Accounting started with some sort of record keeping has been around since
the first Hunter wanted to trade with the first gather.
Lucas Pacioli wrote the book details of calculating and reporting in the tge 15Th century,
explaining and initiating the subject of Accounting.
By the time, at the second half of 18Th century, England was the economic capital of the
world, there was happening the Industrial Revolution in which the Industry changed from
the agriculture model to the manufacturing model. At this point businessmen needed a good
understanding of the financial health of their business, and accounting was the language to
explain admistration.
There are a couple of lessons learned from 12,000 years.
● The Role of Accounting in property control;
● The Role of Accounting in private management;
● The Role of Accounting in valuation and control of equity;
● The Role of Accounting in controlling and analysing costs;
● The Role of Accounting in business management.

2. In the Income Statement it is provided the Revenues and its levels, the Expenses and its details,
and also the profit or looses of the company. In the Income Statement it is possible to evaluate the
Next Income in relation to the Revenues, and in relation to the Total Assets.
Actually, it is a evaluation of the Performance of the firm, it shows the Earned Revenues and the
Correlated Expenses. In addition, it reveals the efficiency of the company to the generation of Net
Income.

In the Balance Sheet it is provided an statics information of a company, showing and detailing its
Assets, Liabilities and Equity.
The Assets refer to the investments and application of resources. They are economic agents
controlled by an entity due transactions or pasted events, and they can generate future benefits.
The Liabilities refer to the accounts payable, that means, the amount owed to suppliers expected
to paid off.
The Equity is the wealth of the shareholders.
The Cash Flow the enters and exits of the money of the firm. The Cash does not refer to Revenues.
It is possible to analize certain situations, for example depreciation, in which the money is retained
in the Cash, but the value of the Assets is lost.

The Explanatory Notes are detailed registers. They are a supplement to the financial statements,
without them it is not possible to fully understand the financial condition of the company.
A Note is any information that would improve the user's understanding. Its mainly purposes is to
clarify and expand the information presented in financial statements, upholds company's
responsability for full disclosure of all relevant information for decision making.
Notes make up the majority of the financial statements.

The Value Added Statement is the "GDP" of the company. It is the wealth created by the business
during a particular period of time and how it is distributed among the differents stakeholders.
Stakeholders are the interest parts, that means, all physical or legal organization, profit or non-
profit, who are directly or indirectly impact by a company's actions. So, they are: employees,
directors, the government, shareholders, the entity.