universidad autonoma de nuevo leon.

facultad de contaduria publica y

administracion.

comprension de textos en ingles.

Moses Duke Melvin.

Jorge Carlos Anguiano Lopez.

pia 3ª oportunidad.

fecha de entrega: 2 de marzo del 2023.

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 index.
• introduction general.
• basic structure of accounting.
1. Introduction article 1.
1.1. Article 1 (basic postulats).
2. Introduction article 2.
2.1. Article 2 (private NIF).
1.2. Opinion article 1
2.2. Opinion article 2
• Financial statement analysis.
3. introduction article 1
3.1. Article 1 (objectives of the analysis).
4. introduction article 2
4.1. Article 2 (user of financial statement).
3.2. Opinion article 1.
4.2. Opinion article 2.
• investments
5. introduction article 1
5.1. Article 1 (money market).
6. introduction article 2.
6.1. Article 2(capital market).
5.2. Opinion article 2.
6.2. Opinion article 2.
• General conlusion.
• glossary.
• bibliography.

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 Introduction General.

In any organization, the fundamental concepts of accounting are essential to

establish the correspondence between the administrative management and the
financial and accounting information of a company.
These concepts are related to the company and its object, whether it is taken for
granted legal conditions or by its activity. This is how initially it seeks to establish
the existing relationship between company, market and accounting under a
regulatory framework that regulates and indicates the principles that govern
accounting, for finally be able to conclude with the accounting process that each
company must follow in inside and that tells you what activities you must develop
to achieve the goal of the process: to generate accounting and financial information.
This information must be produced from a legal regulatory framework in force and
applicable to the sector economy in which the company develops its activity.
It is also worth specifying that a company must keep records of all its transactions,
not only to meet legal requirements, to determine how the business is going and
maintain reliable accounting and financial information and thus, among reasons,
to make present and future decisions that allow you to guarantee your sustainability
in the market.

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 title: basic structure of accounting

introduction (article 1).

An accounting information system follows a basic model and a well-designed
information system, offering thus control, compatibility, flexibility and an
acceptable cost / benefit ratio.
The accounting system of any company, regardless of the accounting system that
I used, must be executed three basic steps using related to financial activities; data
must be recorded, classified and summarize; however, the accounting process
involves communication to those who are interested and the interpretation of
accounting information to assist in making business decisions.
financial reporting standards replaced generally accepted accounting principles we
can now call them basic postulates.

article 1
basic postulates

The 8 basic principles are:

1. Economic Substance.
The economic substance must prevail in the delimitation and operation of the
accounting information system, as well as in the accounting recognition of
transactions, internal transformations and other events that affect an entity.

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2. Economic entity.
The economic entity is that identifiable
unit that carries out economic activities,
constituted by combinations of human,
material and financial resources,
conducted and administered by a single
control center that makes decisions.
3. Going Business.
The economic entity is presumed to be in permanent existence, within an unlimited
time horizon, unless proven otherwise, so the figures in the accounting information
system represent values systematically obtained, based on the NIF.
4. Accounting accrual.
The effects derived from the transactions carried out by the economic entity with
other entities, internal transformations and other events
5. Association of Costs and Expenses with Income.
The costs and expenses of an entity must be identified with the income they
generate, in the same period, regardless of the date they are incurred.
6. Valuation.
The financial effects derived from
transactions, internal
transformations and other events.
7. Economic Duality.
The financial structure of an
economic entity is made up of the
resources it has available to
achieve its goals and the sources to
obtain said resources, whether their own or others.
8. Consistency.

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Given the existence of similar operations in an entity, the same similar accounting
treatment must correspond.

introduction (article 2).

The NIF comprise a set of general concepts and particular rules that regulate the
preparation and presentation of the information contained in the financial
statements and that are generally accepted in a place and on a certain date.

article 2
private NIF
The private NIFs establish the parameters related to the valuation or the price,
along with the presentation and disclosure of the transactions. Likewise, the actions
that generate a change in the financial entity and that are subject to being recorded
in the accounting information, must also be established and verified by the
individual NIFs.
The NIF have been replacing the accounting principles and have also been
approved in the International Accounting Standards. Indeed, in the structure of
accounting theories, NIFs represent enormous importance. It should be noted that
they are the ones that structure all accounting theory and define the conditions for
an accounting system to operate. In turn, they regulate all the issuances of financial
statements, which facilitates the processes of preparation of the financial
information of an entity. Thus, confusions that can generate errors in the readings
are avoided.

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 opinion (article 1).
The Basic Postulates of Accounting, are fundamental elements of the Accounting
System or Accounting Information System, having an impact on the identification,
analysis, interpretation, capture, processing and recognition of transformations,
transactions and other events that affect the economic entity and technically
support the registration of operations, the synthesis of information, the preparation
and presentation of financial statements; based on its reasoning, proven efficiency,
support in specialized legislation and application of various regulations, in order
to standardize methods, procedures and accounting practices.

opinion (article2).
The importance of the NIF lies in the fact that they structure the accounting theory,
establishing the limits and operating conditions of the accounting information
system. They serve as a regulatory framework for the issuance of financial
statements, making the process of preparation and presentation of financial
information on economic entities more efficient.

title: financial statement analysis.

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 introduction (article 1).
The purpose of the analysis of financial statements is to analyze the financial and
economic situation of the company in order to determine, as accurately as possible,
its state of health. It is intended to apply, in the annual accounts of real companies,
the techniques and instruments of this area, in order to obtain information that is
useful for making economic decisions.

article 1.
objective of the analysis
The analysis of financial statements is the critical process aimed at evaluating the
financial position, present and past, and the results of operations of a company,
with the primary objective of establishing the best possible estimates and
predictions about future conditions and results. (Management, 2010).
The fundamental objective of a company's accounting is to provide information
about it to a broad set of potential users or recipients of said information to help
them make decisions. To fulfill this purpose, the accounting system generates
documents known as financial statements or accounting statements.

introduction (article 2).

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Users of financial statements are those who use financial statements to make
economic decisions, such as shareholders, partners, creditors, public treasury,
workers, investors who go to the stock market and authorities.
Investor users need accounting information because they are interested in knowing
the future benefits they will obtain if they acquire or keep a financial instrument or
an equity instrument.

article 2.
Users of financial statements.
Users, both creditors and suppliers, need to know if the company will have the cash
to meet short- and long-term payment commitments, and about the ability to
generate profits.
The general public, voters and their representatives, need financial information to
know the transparency with which State resources have been managed.
The user needs to know how much money the entity has, how much it owes and
how much they owe it; How much is the amount of its existence and that of its
fixed assets, which can be observed in the balance sheet.
How much has the company sold, what is the cost of sales, how much are its selling
and administrative expenses in a period, information that can be found in the
statement of profit and loss.
Information about the activity from which the cash came and what it was used for
can be found on the statement of cash flows.
Because different users have different information needs, it is necessary to prepare
financial statements for general use.

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 opinion (article 1).
Its objectives are to compare the different items of assets and liabilities in volume
and time periods. With all this we can: Analyze if the company maintains financial
equilibrium, analyze the different sources of financing and time frame used.
Diagnose and anticipate possible financial difficulties that the company could face
within a stipulated time period.

opinion (article 2).

The users of the information are very diverse and each one needs specific data to
make decisions, therefore it requires accurate and timely information on the
solvency, liquidity, operational efficiency and financial risk of the organization.
You must be selective about the information, so it is important to consider that the
financial statements of an entity include: the financial position, operating activity,
cash flows and other accounting policies.

title: investments.

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 introduction (article 1).
Money Market can be defined as the one in which Companies, Banks and
Government Entities satisfy their needs for financial resources, through the
issuance of financing instruments that can be placed directly among the Investing
Public. And on the other hand, it is the market that investors go to in search of
instruments that satisfy their investment and liquidity requirements.

article 1.
money market.
The financial system and the money market constitute the gateway for national and
foreign money. The money market is the fundamental part of the financial system
of any country, in which financial intermediaries and other entities participate by
exchanging large amounts of money.
As a result of technological advances, most of the transactions in the money
markets (including the United States) as well as in the foreign exchange markets,
are carried out by telephone or through computers. Therefore, money markets are
generally over the counter and money instruments are rarely exchanged physically,
but rather electronically.
The financial system and the money
market constitute the gateway for
national and foreign money. The
money market is the fundamental part
of the financial system of any country,
in which financial intermediaries and
other entities participate by
exchanging large amounts of money.

introduction (article 2).

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The capital market is basically the market that interrelates the supply and demand
of securities.
The capital market also known as the stock market. It is one in which, on the one
hand, they sell funds or means of financing aimed at people. And on the other hand,
or companies that require capital to continue with their operations.
These funds are characterized by having a medium and long-term maturity. In
addition, the capital market has different levels of risk.

article 2.
capital market
It has diversity in the liquidity of the financial instruments it offers. Consequently,
it is easy to buy and sell securities that serve as a money transfer instrument.
The capital market allows companies in the first place to obtain resources
efficiently for their financing. Secondly, it offers high long-term profitability, as
well as various products with different levels of risk.
There are different classifications, but the capital market, according to the
instruments listed on it, is divided into two sections:

• Stock or Variable Income Market.

• Debt Securities or Fixed Income Market.
The capital market is a set of institutions through which the supply and demand of
financing means are channeled.
Additionally, it has diversity in the liquidity of the financial instruments it offers.
Consequently, it is easy to buy and sell securities that serve as a money transfer
instrument.

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 opinion (article 1).
Money markets are as old as money itself. Throughout the history of all societies,
lenders have charged borrowers an interest rate, which is equal to the cost of money
per unit of time.
However, in many countries, both ancient and present, the interest rates charged
by moneylenders have been considered excessive by civil and/or religious
authorities.

opinion (article 2).

The importance of the existence of capital markets is related to the contribution
that it makes, through the process of savings and investment, to the development
of countries, particularly in the generation of employment and their economic
stability.

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 general conclusion.
Financial administration is a very complex branch of study since there is a lot of
theory that we handle in it, which leaves very little room for practice; it cannot be
denied that it provides us with a lot of knowledge since by reading we understand
and analyze the information better and it is easier to remember the concepts we
hear during classes.
The functions that a financial administrator has to develop, the studies or analyzes
that have to be carried out in order to make a good allocation of resources within
the company, we studied the reason why the debt reconversion is carried out, we
learned to identify new businesses , the reasons why companies merge or a
strategic alliance is made, we investigate the stock market analysis, we observe
what may be the market variations in terms of investments, what may be their risks
and their returns.
since the titles seen are topics that are related to this but include much more
information of which we should be aware.

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 glossary.
1. cost-benefit: Cost-benefit analysis is the process of analyzing business
decisions. When a decision is under consideration.
2. Generally accepted accounting principles: establish the theoretical basis
and fundamental guidelines that regulate the criteria followed for the
preparation of accounting statements and financial reports on the evolution
of equity and its transformations over time-
3. particular rules: It is the individual and specific application of the concepts
that make up the financial statements.
4. accounting system: An accounting system or accounting software is a
computerized program that facilitates the collection of all the company's
financial information, both the accounting data itself and the financial data.
5. financial reporting process: The process begins with the identification of
facts and causes that impact the financial, economic, social and
environmental structure of the entity and its accounting recognition, until
the approval and disclosure of the information through the preparation of
accounting reports.
6. economic decisions: in an absolute sense, it includes both the generation
and the evaluation of alternatives. Since the goal of the decision is always
the choice of some alternative, economic decision making can only take
place if alternatives have been established.
7. Financial statements: are reports that reflect the state of a company at a
given time, usually a year. They are made up of several documents in which
the financial situation of a business is reflected and collects information,
both economic and patrimonial, of the companies.

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8. shareholders: Person who owns shares in a financial, commercial or
industrial company.
9. Creditors: They are the people or businesses to whom it is owed for a
concept other than the purchase of merchandise or services.
10. value (book): of an item (whether an asset or a liability) is the net amount
that is reflected in a company's accounting after deducting, in the case of
assets, the corresponding accumulated amortization or any value correction
of it, normally due to deterioration.
11. financial instrument: it is the link between two entities that generates
benefits for both parties. Savings accounts are an example of these
instruments, since in this product the bank coincides on the one hand and
the client on the other, generating benefits for both.
12. public investor: persons who hold securities of an issuer, other than the
latter, if they do not fall into any of the following cases: They are non-
independent directors or relevant managers.
13. foreign exchange market: It is one in which purchase, and sale transactions
are carried out on currencies of different countries (currency). The foreign
exchange market is one of the main financial markets worldwide.
14. over the counter: It is one where the parties buy and sell securities or
currencies, and negotiate financial contracts, by telephone and/or computer.
15. means of financing: all the investment channels that exist, from family
investments, public (or governmental) investments or private investments.

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 bibliography.
Blanco, R. (2002). Contabilidad y Fiscalidad. Ciclo Superior de Administración y
Finanzas. Tomo 1. España: Editorial Club Universitario. Recuperado en Diciembre
de 2012: http://www.editorial-club-universitario.es/
IASB. (2010). Marco Conceptual para la Información Financiera. Fundación
IFRS.https://www.gestiopolis.com/historia-iasb-international-accounting-
standards-board/
Sinisterra, G. y Polanco, L. (2004). Contabilidad sistema de información para las
organizaciones. México: McGraw Hill.
https://www.academia.edu/43385832/Contabilidad_Sistema_de_informaci%C3%
B3n_para_las_organizaciones_Sexta_edici%C3%B3n
Chiavenato, I. (2010). Iniciación a la Organización y Técnica Comercial. (pp. 4).
Mc Graw Hill. https://www.etp.com.py/libro/iniciaci%C3%B3n-a-la-
organizaci%C3%B3n-y-t%C3%A9cnica-comercial-35425.html
Geruning, H. (2010). Estándares Internacionales de Información Financiera. (5
ed.). Banco Mundial y Mayol Ediciones S.A.
https://documents1.worldbank.org/curated/ar/814971468176332028/pdf/483340P
UB0SPAN1rds105th0ed10Spanish.pdf
Gudiño, E. y Coral, L. (2008). Contabilidad Universitaria. Bogotá, Colombia:
McGraw Hill. https://www.bibliotecadigitaldebogota.gov.co/collections/8261/

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