Accounting Concepts (CTBA020 - SIGACTB)

Assets

Current Assets

Permanent Assets

Long-term Assets

Tree Register

Ledger Account

Expenses

Rights

Obligations

Equity

Equity, the object of Accounting, is a set of assets, rights and liabilities expressed in a determined currency and pertaining to a person and/or company.

Assets

Assets are items capable of satisfying human needs and subject to economic assessment. They can be classified as:

• Material (Tangible) - meant for use (computers, tables, etc.), exchange (goods, money, etc) and consumption (cleaning material, etc.)
• Immaterial (Intangible) - brands and patents, improvements, etc.

Rights

All values the company has to receive from third parties (Trade Notes Receivable, Rent, etc.)

Obligations

All values the company has to pay to third parties (Trade Notes Payable, Salaries, Taxes, etc.)

Balance Sheet

This reflects the company's financial position. Law nr. 6,404/76, in article 178, establishes that, in Balance Sheet, accounts shall be classified into the following groups:

Assets (Goods and Rights)

• Short term Assets
• Long-term Realizable Assets
• Permanent Assets, divided into Investments, Fixed Assets and Deferred Assets.

Liabilities (Obligations)

• Current Liabilities
• Long-term Liabilities

Current Liabilities

Long-term Liabilities

Deferred Income

Net Equity

• Share Capital
• Capital Reserves
• Revaluation Reserves
• Accrued Profit or Loss Reserves.

Incomes

Deferred Income

Accounting Equation

Account Balance

It is the difference between total of debit values and total of credit values posted in the account.

This balance is debit when total of debit values is greater than total  of credit values posted in the same account. On the other hand, balance is credit when total of credit values posted is greater than debit values posted in the same account.