Exercise 4

A glossary in English must be built with the name of each of the balance accounts studied in the course
without definitions.
A glossary must also be built with definitions in English of each of the indicators studied in the course.

 Balance

 Current active

 Cash and Banks

 Temporary Investments

 Commercial debtors

 Inventory

 Taxes, Contributions, Pre-Payments

 Other Debtors

 CURRENT ACTIVE

 Fixed Asset

 Fixed assets

 Intangibles (Net)

 Deferred assets

 Valuations

 Total, LP Assets

 FULL, ACTIVE

 Current Liabilities
 Financial obligations

 Suppliers

 CP Accounts Payable

 Taxes to pay

 Laboral obligations

 Other Short-Term Liabilities

 Total, Current Liabilities

 Long-term liabilities

 Accounts Payable LP

 Other LP Liabilities

 Long term passives

 FULL, PASSIVE

 Heritage

 Capital

 Valuation Surplus

 Other reserves

 Heritage Revaluation

 Earnings for the Year

 Retained earnings

 Total, Net Worth

 Total, LIABILITIES and EQUITY

 Total, Liabilities and Equity

  Statement of income

 Operating profit

 Sales

 cost of sale

 Gross profit

 General and Administration Expenses

 Selling expenses

 Operational utility

 Non-Operating/Financial Expenses

 Total Non-Operating Income

 Financial expenses

 Other Non-Operating Expenses

 Total Non-Operating Expenses

 Earnings Before Taxes

 Taxes and Others

 Income tax

 Net profit

 Net profit

FINANCIAL RATIOS

 Liquidity ratios
All the data used to calculate them come from the balance sheet, specifically from

current assets and current liabilities, the most liquid items on the balance sheet.

Working capital ratio

The Working Capital, is what remains to the company after settling its immediate debts,

it is the difference between the Current Assets minus Current Liabilities; the money

available to the company to be able to operate on a daily basis.

Management ratios

The financial ratios of management or activity serve to detect the effectiveness and

efficiency in the management of the company. That is, how the company's management

policies related to cash sales, total sales, collections and inventory management worked.

Debt ratio

The debt ratio evaluates the proportion of external financing that a company has

compared to its assets. In other words, it is a mathematical ratio that represents the total

percentage of debt that a business has in relation to its own resources.