1st Week

Question 1

What is accounting and what’s the purpose of it?

Answer 1

Accounting is the language of business
Purpose: To paint a clear picture of a company’s operational performance over a specified period of time, as well as summarize its assets, liabilities and equity at a point in time

Question 2

Financial accounting vs. Managerial accounting

Answer 2

FA: What does it own / owe? How much does it gain / lose?
How much cash does it have?
How much is it worth?

MA:What does product A cost? Which is more profitable?
- Products, divisions, etc. Who is accountable for… ?

Question 3

Accounting Standards Spain

Answer 3

Spanish General Accounting Standards SGAS

Question 4

BALANCE SHEET

Answer 4

What does the company own / owe? (financial situation)

Question 5

INCOME STATEMENT

Answer 5

How much profit / loss does it make? (Economic situation)

Question 6

CASH FLOW STATEMENT

Answer 6

How much cash does it have / use? (Cash flow)