NAMES: Laura Maria Carranza Cabra / Sergio David Trujillo Franco

CASE STUDY

Describe the role of an accountant.

The accountants, mainly, must have the ability to determine the general statistics of the economic and
financial operation of the company, for example, if sales decrease or use, how cash flow is affected, among
others. Likewise, through data and statistics they investigate the performance of a business for subsequent
decision making.

Explain why ethical standards are so important for accountants.

The professional code of ethics is important for the public accountant since it is intended to serve as a
professional conduit, that is, it links the rules that the professional must follow to carry out a healthy work
process. It must be guided in its professional practice by promoting the conditions that must be followed
for economic progress as well as social and integral well-being.

Analyze how an income statement allows a judgment of the profitability of a company? How could
a Balance Sheet further help that judgment?

Through an income statement you can determine the profitability of a company taking into account the
expenses that are generated during a period, from there you can draw correct conclusions about the fall or
increase in expenses or income, or in sales and costs of sales, For its part, the balance sheet helps by
identifying how each of the transactions carried out by a company is financed, taking into account
everything that belongs to the company, from accounts payable (liabilities) to what belongs to the
company and can be convert into money (Assets) and its equity.

Evaluate the extent to which an accountant can help managers and directors to formulate a business
strategy.

Meters are an important part of the selection process for a business strategy. They use financial and non-
financial data to evaluate the performance of a business in the current market. This enables them to valuate
and forecast future goals. This means that accountants simply give positive aspects to a business in
financial matters such as the viability of the proposal. For the managers and directors, these data given by
the accountant will be very important due to the great professional competence that is presented nowadays
and they can decide if they take or leave the idea to look for a better alternative.