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Introduction to accounting
AccountingA system of recording financial transactions in the form of financial statements.
Companies use it to:
- Bill clients
- Keep track of asstes and liabilities
- Determine profitability
- Track the flow cash
3 Remarkable concepts:
Assets: something valuable belonging to a person or organization such as cash, properties, investment or inventory. - an item with economical value now or in the future.

Liabilities: the responsibility of a person, business, or organization to pay or give up something of value. - a financial obligation that must be repaid.

Equities: the value of a company. -ownership of assets.

- *BONUS: **
Prepaid expense: future expenses that have been paid in advance.Accounts receivable: is the balance of money due to a firm for goods or services delivered or used but not yet paid.Accounts payable: is an account that represents a company’s obligation to pay off a short-term debt to its creditors or suppliers.Notes payable: represents the amounts that remain to be paid.Accrued expenses: is an accounting term that refers to an expense that is recognized on the books before it has been paid.Deferred revenue: is a liability on a company’s balance sheet that represents a prepayment by its customers for goods or services that have yet to be delivered.Common stock: are shares of ownership in a corporation that afford their holders voting rights.Retained earnings: is the amount of net income left over for the business after it has paid out dividends to its shareholdersShares: are units of equity ownership interest in a corporation that exist as a financial asset providing for an equal distribution.

Assets, liability and equity



Equity, revenue accounts and expense recognition


Module 2 vocabulary: financial statements
Balance sheet:
a report on assets, liabilities, and equities for a period of time.
Income statement:
reports the profits and losses for a period of time.
Shareholder’s equity:
the book value of a company.
Notes to financial statement:
add helpful details to financial statements.
Statement of cash flows:
reports on the movement of cash in operating, investing and financing.
Balance sheet

Income statement

Statement of shareholders equity


Module 3 vocabulary: business organizations
Sole proprietorship:
a business owned by one person.
Partnership:
a business owned by two or more people.
Corporation:
a legal entity separate from the person who owns it.
Forms of business ownership





Business bank account

Invoicing software

Accounting templates


<h1>Module 4 - corporate finance</h1>
Module 4 vocabulary: corporate finance
Debt analysis:
compares the difference between a monthly income and the amount needed to pay off debt.
Metric analysis:
a tool used to compare and track the performance of a corporation.
Derivatives:
a securitized contract between two or more parties whose value is dependent upon one or more underlying assets.
Corporate finance



Raise money selling equity or debt



Metrics analysis




Debt analytics



Derivatives




Cost of capital





Curso de Inglés para Finanzas (2020)