Universidad Autónoma de Nuevo León

Facultad de Contaduría Publica y Administración

Comprensión de textos en ingles

Integrantes:
Almaraz Rodríguez Valeria 1980362
Ocañas González Andrea Nereyda 1821545
Ramos Castillos Heber Alan 1962278
Cavazos Belmares David 1981655
Sánchez Rodríguez Irving 1653085
Chávez Mendoza Valeria Michelle 1955029
Índice
Accounting
Introducción

In this dcument we will see what accounting is, we will see its antecedents and how its
origin could have been. It is known that accounting today is very useful but we will try to
show the true importance in the present, we will also seek to show the importance it had in
its beginnings and why it became necessary to keep an accounting control, whether
monetary or of some kind of inventory.
Also something that we can say about our knowledge previously acquired during our
semesters already completed, is that in accounting there are different accounts that are used
for different purposes, there are liabilities and assets, different types of each one that are
used for very different things or with different purposes. very specific. We also find that in
accounting not only monetary control is kept, we can also account for an inventory of
materials, inventory of merchandise for sale, whether it is kilos, meters, liters, etc. Enjoy it.
Article 1- Objectives of Accounting

Every activity that a business firm does must be done for a reason and accounting is no
exception. Accounting helps the company achieve a myriad of objectives. Here is the list of
objectives that accounting helps the company to obtain.
Permanent Record
Any business firm needs a permanent record of the transactions that it indulges in. These
records could be required for internal purpose, for taxation purpose or for any other
purpose. Accounting serves this function. Whenever the organization commits any resource
of monetary value either within the firm or outside the firm, a record is made. This
permanent record is held on for years and can be retrieved as and when need be.
Measurement of Outcome
A business firm may indulge in numerous transactions
every day. It may make profit in some of these
transactions while it may make losses in some other
transactions. However, the effect of all these
transactions needs to be aggregated over a period of
time. There must be daily, weekly and monthly reports
which provides information to the organization about
how well it is performing its activities. Accounting
serves this purpose by providing periodic financial statements which help the firm adjust
their operations accordingly.
Creditworthiness
Firms need resources for their functioning. They do not have any capital stock at hand and
need to obtain them from investors. Investors will give money to the firm only if they have
reasonable assurance that the firm will be able to generate enough profit. Past accounting
records help a great deal in proving this. All kinds of investors from banks to shareholders
ask for past accounting details before they trust the management with their money.

Efficient Use of Resources

Firms can also conduct useful internal analysis with the help of accounting data.
Accounting records tell the firm what resources were committed to what activity and what
time. These records also summarize the return that was obtained from these activities.
Management can then analyze past behavior and draw lessons about how they could have
performed better and used resources more efficiently.
Projections
Accounting helps management and investors look forward. Costs and revenue growths can
be projected after substantial data has been accumulated. The assumption made is that the
company is likely to behave exactly as it has done in the past. Thus, analysts can make
reasonable assumptions about the future based on the past record.

Glossary
Transactions (transacciones): Deal or agreement by which two parties reach a commercial
agreement, generally of sale.
Investors (inversionistas): That invests an amount of money to make a profit.
Accounting records (Registros contables): It is the entry of information on the movements
of resources in the accounting books, in such a way as to keep a log of each operation
carried out. Each movement is recorded in two accounts, showing the use and origin of the
resources.
Extract (extraer): In the case of roots, find out those of a given quantity.
Management (gerencia): Person or group of persons who are in charge of directing,
managing or administering a society, company or other entity.
Projections (proyecciones): It is a forecast of various economic variables that are based on a
macroeconomic analysis based on statistical information from the real, fiscal, balance of
payments and international sectors.
Analysis (análisis): It is a deep study of a subject, object or situation in order to know its
foundations, its bases and reasons for its emergence, creation or original causes.
Business (empresa): Is an organization or institution dedicated to activities that seek
economic or commercial benefit.
Accounting (contabilidad): It consists of the continuous and systematic collection,
recording and interpretation of certain information. In detail, accounting is a system that
allows processing data relating to all business transactions and obligations expressed in
financial terms in a company.
Organization (organización): It is an association of people who relate to each other and use
resources of various kinds in order to achieve certain objectives or goals.
Opinion:
As an opinion of this article, as a team we think that accounting is a very nice field of study
because it is useful for many things especially to understand financial movements that
companies do. We understand that accounting is currently very important for organizations,
since accounting is very important to manage economic operations such as income,
expenses, sales and profits, it is very important to have a strict control over these elements.
If accounting is done correctly in a company it is very helpful and offers many advantages,
such as defining the selling costs of what you are selling, analyzing and interpreting
financial statements, keeping track of all your suppliers and customers, defining production
and administration costs, it could also help us to determine if our company needs financing
either short or long term to help us grow or to cover expenses such as wages and salaries. In
general, accounting has many objectives to fulfill for a company and if done properly it
benefits us both economically and legally.
Bibliografía
Prachi Juneja. (2021). What is Accounting? - Meaning and Important Concepts. 2022, de
Management Study Guide Content Team Sitio web:
https://www.managementstudyguide.com/accounting-history.htm
Articule 2- History of Accounting

One can never really understand a subject, unless they know where it came from.
Therefore, a short history of the subject of accounting may be of interest to students of
accounting. Here is a very brief history of how accounting evolved:

Single Entry Accounting System

Accounting is as old as financial transactions themselves. As soon as credit was invented,
humans began to use accounting to simplify their lives. As expected, the oldest system of
accounting used single entry accounting. This is the most intuitive form of accounting but
is also incomplete. Records have been found on clay tablets in ancient Mesopotamia that
show the existence of single entry accounting in that time.

Bahi-Khata System
Prior to rise of European commerce in the Medieval Ages, India was the primary center for
bustling trade and commercial activity. Although there has been no record of this fact, but
is claimed that Indian merchants had very advanced accounting systems at that time. These
systems were called the Bahi Khata system. It is rumored that the westerners designed the
double entry system based on the principles of Bahi
Khata system but once again there is no conclusive
proof.

Merchants of Venice
The birthplace of modern day accounting is Venice.
In the Medieval Ages, Venice was a center of trade
and commercial activity. Merchants had giant
businesses and they were struggling to run these corporations efficiently. It is then that
Luca Pacioli developed the double entry accounting system. There is still debate about
whether he developed it or just improved it and made it available to the merchants.
However, debate or no debate, Luca Pacioli is considered to be the “Father of Modern Day
Accounting”.
Chartered Corporations
In the era of colonialism, chartered corporations were common. The government would
approve certain companies and give them exclusive rights to trade with certain colonies.
Citizens were encouraged to invest in such companies. Shares of a few such companies had
paid rich dividends and hence it was common to invest in such companies.

However, the performance of such companies had to be reported to the shareholders on a

periodic basis. Therefore accounting systems were further developed. They were now
providing information to external shareholders apart from providing information to internal
management.

Modern Accounting
The chartered companies have long gone. The world is now a free market. But information
still needs to be provided to the external shareholders about the conduct of operations.
Accounting, therefore has been further developed and is highly regulated in most countries.

Glosary
Intuitive (intuitivo): We usually refer to the forms of immediate knowledge that do not
come from rational and conscious processes, that is, that are obtained without prior analysis
and reasoning, but are the result of certain unconscious processes that we usually call
intuition.
Credit (crédito): Credit is a loan of money that one party grants to another, with the
commitment that, in the future, the recipient will repay said loan gradually (by paying
installments) or in a single payment and with additional interest. that compensates the
lender, for all the time that he did not have that money.
Bustling (bullicioso): That causes uproar, bustle or noise. The one who has or has bustle or
is said of the restless, agitated or discouraged person who moves with an exaggerated
vividness. Mutinous, troublemaker, rebel and seditious, This word is also used as a noun.
System (sistema): Orderly set of rules and procedures that regulate the functioning of a
group or collectivity.
Colonialism (colonialismo): Political and economic system by which a foreign state
dominates and exploits a colony.
Government (gobierno): It is the main pillar of the State; the authority that directs, controls
and administers its institutions, which consists of the general political conduct or exercise
of the executive power of the State.
Performance (rendimiento): Fruit or utility of a thing in relation to what it costs, with what
it spends, with what has been invested in it, etc., or fruit of the work or effort of a person.
Merchants (comerciantes): It is the person who is usually dedicated to work that also helps
in the economy. It is also called the owner of a business establishment.
Tests (pruebas): Action of testing someone or something to know its qualities, verify its
effectiveness, know how it works or reacts, or what result it produces.
Corporations (corporaciones): Official body made up of a group of people who meet to
decide on scientific, economic, etc. matters of general interest.

Opinion:
Bibliografía
Prachi Juneja. (2021). History of Accounting. 2022, de Management Study Guide Content
Team Sitio web: https://www.managementstudyguide.com/accounting-history.htm
Article 3- Limitations of Accounting

Although accounting may be heralded as being the language of the business, it is definitely
not error free. This has been highlighted by the fact that accounting scams have occurred
one after the other for many years. In fact, even after stricter regulation and tightening of
accounting rules, accounting scams just don’t cease to stop.

As a student and practitioner of accounting, it is therefore imperative to know the

limitations of accounting. Knowledge of limitations helps to factor them in and work with
them. Here are the major limitations of accounting.

Subjective Measurement
Accountants have to attach a monetary value to every event or transaction that has taken
place within the organization. Sometimes the monetary value of the transaction is
impossible to be ascertained. Consider the case of depreciation. Accountants can at best
provide estimates of the depreciation that
should have taken place given the scale of
operations. However, these estimates are
usually way off the mark. This makes
accounting policies open to debate as well
as manipulation.

Qualitative Factors
Accountants try to attach a monetary value to everything. The things they cannot attach a
monetary value to are not accounted for! Consider the case of goodwill. Until the
organization has explicitly paid for the goodwill it purchased from another company, it
cannot account for goodwill. According to accountants, the goodwill generated by the firm
internally is worthless. We all know that this is not the case and therefore accounting is
flawed as far as goodwill is concerned.

Unstable Unit of Account

Accountants have to measure all transactions in a single unit of account. This unit of
account is usually the currency that is being used in a particular country. However, it is
common knowledge that the value of currencies is not stable. Inflation, deflation and such
other forces make currency values dynamic. When accountants express assets purchased in
last year’s rupees with the same unit as purchased by this year’s rupees, it presents a
distorted image. Many companies have low book values because their assets were
purchased a long time back during periods of no inflation.

No Information about Opportunity Cost

Accountants provide information about what has happened. However, management would
be better off if they had information about what could have happened if they used their
resources in the optimum manner. This feature is also lacking in accountancy making its
usefulness limited from the managerial point of view.

Despite its limitations, the importance of accounting is unquestionable. It is difficult to

imagine running a firm without accounting.