FINANCIAL ANALYSIS: Financial analysis is the study made of the accounting information, using indicators and financial reasons. It applies to establish the modalities under which money flows move, and explain the problems and circumstances that influence

GLOSSARY UNIT 1 FINANCIAL ANALYSIS

FINANCIAL ANALYSIS: Financial analysis is the study made of the accounting information, using indicators and financial reasons. It applies to establish the modalities under which money flows move, and explain the problems and circumstances that influence them. Example; Analysis of income statement

CODEX O TABULAE: where revenue is placed in the (acceptum) column and the other column expenses (Expensum).

ADMINISTRATIVE ACCOUNTING: Also known as management or management. It is what allows strategic decisions of the Organization to achieve the objectives. It is more qualitative and supports planning. EXAMPLE: Business Services, tales such as transportation, business, professional, restaurants and Maintenance Services, management accounting used to calculate the costs of certain business functions.

FINANCIAL ACCOUNTING: Financial accounting refers to the system, recording, analysis and reporting of daily business activities of a company at a given time. According to Decree 2649 d 1993, "accounting is intended as an information guide. Example: The balance sheet and income statement

RESTATEMENT OR INFLATION ADJUSTMENT: Represents the gain or loss realized by an economic entity as a result of inflation exposure of its assets and liabilities. It is recognized by the re expressing financial statements the assets, liabilities and non-monetary assets. Example: the problem of accounting at historical cost of fixed assets undervalued deductions for depreciation and therefore artificially increased taxable earnings.

HISTORICAL COST: Registration of operations is based on historical costs (production, purchase or exchange), except to agree with other principles applying a different standard (realizable value) is justified. Corrections of fluctuations in the value of the currency do not constitute alterations to this principle, but mere adjustments to the numerary expression of the respective costs.

VALUE CREATION: identify with the generation of income or wealth by the company in a year or period of time. Example: Create value is constructed with plastic containers filled soda and replacements of traditional and modern brick houses. An effective and very economical construction system accessible to those who could not build through the traditional system

EBITDA: Financial indicator (earnings before interest, taxes, depreciation and amortization), is, the gross operating profit calculated before the deduction of financial expenses. Example: Ebitda, as all financial indicators alone are not a sufficient measure to determine whether a project is not profitable, but should be evaluated in conjunction with other indicators to assess other sensitive aspects of a project.

EQUITY: Equity between competing interests must be a constant concern in accounting, since those using accounting data can be found at the fact that their particular interests are in conflict. It follows that the financial statements must be prepared in such ways that fairly reflect the different interests at stake in a given entity. This principle, in the background is the basic postulate or fundamental principle that the rest are subordinate.

STATE OF LOOSE AND CASH: is a basic financial statement reporting the movements of cash and cash equivalents, divided into three categories: operating, investing and financing.

FUNSION FINANCIAL: is a significant tool in business management. So adequate knowledge and development in the economy of the company, which should make possible the availability of adequate liquidity, solvency accurate and financial sources that best fit the strategic approach of the company is necessary. Example: The financial function of a business is one that defines how the company money will be used. Its main objective is to obtain the best performance.

ACCOUNTING INFORMATION: Accounting information is intended to know the resources, obligations and results of operations of the company. Example: Making decisions on investment and credit. To evaluate the performance of managers of the economic entity.

INTERNATIONAL FINANCIAL REPORTING STANDARDS: are accounting technical standards adopted by the

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