Introduction to Accounting in the Graphic Company.

Abstract

Accounting is part of the company's information system that records, classifies, and summarizes processes translatable into monetary units. It does this for events that have already occurred or those expected to occur in the future.  The fact that it can only capture processes translatable into monetary units is an important limitation that should not be overlooked when using accounting.  The translation of facts into monetary units is done through the use of so-called "accounting principles."  It would be desirable for this entire process to be objective and useful (doubly).

Learning outcomes

The accounting system of a business can be defined as the procedure in place to: 1) collect; 2) classify; and 3) summarize events in the life of the company that can be expressed in monetary units.  Ultimately, accounting translates into information. Who is this information directed at? It is useful to distinguish two cases, although the boundary between them is not clearly defined:  1. Individuals or institutions outside the company who, while having a fully justified interest in knowing what happens within it, are not responsible for its management. This is the case for creditors (short-term or long-term), the tax authorities, and shareholders. In this case, the accounting information must be presented in a way that these external individuals can understand: that is, it must conform to generally accepted rules and conventions in accounting language. Accounting that serves this purpose is often referred to as "financial accounting."

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