This document defines key accounting and financial terms including: accounting, which is responsible for ordering a company's financial operations; assets, which are everything a company owns that has monetary value; and liabilities, which are all debts that a company has or acquires. It also defines accounting concepts like debits, which record everything that enters a company, and expenditures, which is money used for non-investment purposes. Finally, it briefly defines common business entities like companies, merchants, and societies.

1. GLOSSARY ACCOUNTING PRINCIPLES
1. Accounting: Is a method that is responsible for ordering the financial
operations of an organization.
2. Accountspayable:Money
tradepayables.
duetosuppliers.
Alsocalledpayables
and
3. Accredit: Is to record all expenses to make the company.
4. Advance:A loan, usually short-term (i.e. onetothreeyears), takingtheform of
anoverdraftto a companyor individual.
5. Assets: A termindicatingeverything a companyownswhich has a
monetaryvaluelistedonthe balance sheet (cash funds, credit balances,
supplies, equipment and facilities, etc.). Assets can be financialassets (such
as bills), fixedassets (equipment) and intangible assets (goodwill, patent).
6. Balance: Anaccountingtermindicatingthedifferencebetweenthe
allcredititems and that of alldebititems.
total
of
7. Bill forcolection: A bill of exchangepresentedto a bankforcollection (and
notfordiscounting).
Oncollectionthecountervalue
of
thebilliscreditedtotheaccount of theclient.
8. Company: The company is an organization dedicated to the pursuit of
economic purposes or activities.
9. Contributions: Are all the goods offered to the society to which it belongs.
10. Cost: It is the economic cost that represents the manufacture of a product
or a service.
11. Debit:Is cause everythingthatentersthecompany.
12. Expenditure: Isthe use of themoneyforpurposesthat are notthose of
investment.
13. Heritage:Heritage is the result of subtracting all assets less liabilities.

2. 14. Inventories:Are theraw material thatallowstodeveloptheeconomicactivity of
thecompany.
15. Liabilities: Are alldebtsthat has oracquiresthecompany.
16. Merchant: A merchantis a legal entitythatcarriesoutcommercialoperations.
17. Retention in the source:Is the early collection of the tax to the revenue and
it is obtained multiplying the base by 3.5 %.
18. Society: A societyistheunion of twoor more peoplethattheyprovide a goodfor
a profit.
19. VAT: Is the Value Added Tax, and is generated by the movements of buying
and selling.
20. Ware: Isthegoodthatisbeingexchangedfor marketing orotherfunctions.