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9- Why is the FISCO interested in financial information?

You need financial information as a basis for calculating taxes, or corroboration of

their exact payment. Furthermore, to verify that there is no evasion or money
laundering, if this exists they must pay for it.

10- List seven indirect users of financial information.

Investors, lenders, employees, financiers, clients, the general public, suppliers,

chambers of commerce.

11- Outline the basic theory of financial accounting.

12- Point out that it should be understood by basic concepts of

financial accounting.

They are the result of the interrelation of the environment with the accounting
process. These concepts are the foundation of the accounting principles generally
accepted today and also serve as a basis for the development of other principles
also derived from environmental characteristics, those adopted by accounting
experts in the country are: Going business, economic measurement , period,
Measurement in terms of money, Accumulation, Accrual, Prices, Estimates,
Relative importance, Substance rather than form, and financial statements.

13- Write an example of the basic concept of financial accounting called

accounting entity.
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The Salvadoran entity, ADEXA, SA incurred the expense for the acquisition of a
vehicle, of which the entity will only have to give it the necessary use to be able to
use it, in transporting personnel, in which the shareholders will not have rights over
said vehicle.

14- What is the circumstance that causes the basic concept of financial
accounting called a going concern to disappear?

When an entity is interrupted by extraordinary events, which impact the objective of

remaining in operation for the company over time, proceeding to the dissolution
and liquidation process.

15- Identify two basic concepts of financial accounting that identify and
delimit the economic entity.

Accounting entity: It is a basic concept of financial accounting that is responsible

for identifying and delimiting the economic entity.

Prices: Financial accounting is measured based on the exchange prices of

economic resources and economic obligations. There are multiple concepts of the
expression exchange prices; In such a way that it is necessary to decide on prices
that are relevant to its uses.

16- Write three basic concepts of financial accounting that quantify the
company's operations.

Historical value: known as the historical cost of assets, it is the amount of cash or
cash equivalents paid, or the fair value of the consideration given to acquire the
asset at the time of its acquisition. For liabilities, the historical cost is the amount of
cash or cash equivalents received or the fair value of non-monetary assets
received in exchange for the obligation at the time it is incurred, or in some
circumstances (e.g. For example, income taxes), the amounts of cash or cash
equivalents expected to be paid to settle the liability in the ordinary course of
business. Amortized historical cost is the historical cost of an asset or liability plus
or minus the portion of its historical cost previously recognized as an expense or
income.

Fair value: is the amount for which an asset can be exchanged, or a liability
cancelled, between an interested and duly informed buyer and seller, who carry out
a transaction under conditions of mutual independence.

Accrual basis: It means that Income is considered in the period in which it is

earned (regardless of when it is collected), and Expenses are considered when it is
contracted for something (regardless of its payment). In accordance with the
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accrual basis of accounting, items will be recognized as assets, liabilities, equity,

income or expenses when they satisfy the definitions and recognition criteria for
those items.