Podcast
Questions and Answers
According to Article 25 of the Code of Commerce, what is understood by the term 'empresa' (company)?
According to Article 25 of the Code of Commerce, what is understood by the term 'empresa' (company)?
- Any organized economic activity for production, transformation, or providing services. (correct)
- Any commercial activity regardless of its organization.
- A private non-profit organization.
- A collection of properties owned by an individual.
Which factor represents the financial contributions made by the owners to a company?
Which factor represents the financial contributions made by the owners to a company?
- Factor Trabajo (Labor)
- Factor Capital (Capital) (correct)
- Factor Personas (People)
- Factor Servicio (Service)
In the context of a company, what does the 'Factor Personas' primarily represent?
In the context of a company, what does the 'Factor Personas' primarily represent?
- The human talent, including owners, administrators, and workers. (correct)
- The equipment and technology used in operations.
- The raw materials used in production.
- The financial capital invested in the company.
When evaluating whether an entity will pursue a profit or social aim, what core concept related to the nature of the entity is being explored?
When evaluating whether an entity will pursue a profit or social aim, what core concept related to the nature of the entity is being explored?
What primarily differentiates entities with a 'ánimo de lucro' (for-profit motive) from those 'sin ánimo de lucro' (non-profit)?
What primarily differentiates entities with a 'ánimo de lucro' (for-profit motive) from those 'sin ánimo de lucro' (non-profit)?
What is the term used to describe earnings in non-profit entities, which are meant to be reinvested?
What is the term used to describe earnings in non-profit entities, which are meant to be reinvested?
Where are the earnings of an entity reflected in accounting terms?
Where are the earnings of an entity reflected in accounting terms?
What best describes the purpose of a 'Sistema de Información Contable' (accounting information system)?
What best describes the purpose of a 'Sistema de Información Contable' (accounting information system)?
What is the main objective of an accounting information system?
What is the main objective of an accounting information system?
Which of the following would not be considered part of the environment of the accounting information system (SIC)?
Which of the following would not be considered part of the environment of the accounting information system (SIC)?
Why is understanding the specific nature of each company important when classifying businesses in Colombia?
Why is understanding the specific nature of each company important when classifying businesses in Colombia?
Which of the following best describes an entity 'con ánimo de lucro' (for profit) according to its social purpose?
Which of the following best describes an entity 'con ánimo de lucro' (for profit) according to its social purpose?
What is the primary focus of a 'sin ánimo de lucro' (non-profit) entity's social objective?
What is the primary focus of a 'sin ánimo de lucro' (non-profit) entity's social objective?
In a Sociedad Colectiva (Collective Society), how are the members designated?
In a Sociedad Colectiva (Collective Society), how are the members designated?
What is the minimum number of partners (socios) required to form a Sociedad Limitada (Limited Liability Company)?
What is the minimum number of partners (socios) required to form a Sociedad Limitada (Limited Liability Company)?
What decree is currently utilized to classify companies by size in Colombia?
What decree is currently utilized to classify companies by size in Colombia?
According to the previous law, what metrics were used to measure the size of a company before Decree 957 of 2019?
According to the previous law, what metrics were used to measure the size of a company before Decree 957 of 2019?
What is the key metric currently used to determine the size of a company in Colombia, according to Decree 957 of 2019?
What is the key metric currently used to determine the size of a company in Colombia, according to Decree 957 of 2019?
How are the values related to company size defined in Colombia?
How are the values related to company size defined in Colombia?
To calculate a company's size based on sector, which financial data is considered?
To calculate a company's size based on sector, which financial data is considered?
Which of the following best describes 'ingresos ordinarios' (ordinary income)?
Which of the following best describes 'ingresos ordinarios' (ordinary income)?
Which of the following is the most accurate definition of ordinary income?
Which of the following is the most accurate definition of ordinary income?
A company has an annual income that exceeds the limits established for a 'Mediana' company in all sectors, according to its ordinary income. How would this company be classified by size?
A company has an annual income that exceeds the limits established for a 'Mediana' company in all sectors, according to its ordinary income. How would this company be classified by size?
According to the size standards, a manufacturing company has ordinary annual income of $20,000 UVT. How would this company be classified?
According to the size standards, a manufacturing company has ordinary annual income of $20,000 UVT. How would this company be classified?
A service company has ordinary annual income of 300,000 UVT. According to the size standards, how would this company be classified?
A service company has ordinary annual income of 300,000 UVT. According to the size standards, how would this company be classified?
Flashcards
What is a company (Article 25)?
What is a company (Article 25)?
Activity organized for production, transformation, circulation, administration/custody of goods, or service provision.
What is Factor Capital?
What is Factor Capital?
Includes capital contributions made by the owners, in money, goods, machinery, etc.
What is Factor Work?
What is Factor Work?
The work that people perform to achieve the company's goals, administration, production, sales or services
What is Factor People?
What is Factor People?
Signup and view all the flashcards
What is the goal of for-profit entities?
What is the goal of for-profit entities?
Signup and view all the flashcards
What is the goal of non-profit entities?
What is the goal of non-profit entities?
Signup and view all the flashcards
How are profits treated in for-profit vs. non-profit entities?
How are profits treated in for-profit vs. non-profit entities?
Signup and view all the flashcards
How are utilidades generated?
How are utilidades generated?
Signup and view all the flashcards
What is Accounting Information System (AIS)?
What is Accounting Information System (AIS)?
Signup and view all the flashcards
What is the objective of AIS?
What is the objective of AIS?
Signup and view all the flashcards
Why classify companies in Colombia?
Why classify companies in Colombia?
Signup and view all the flashcards
What is a for-profit company?
What is a for-profit company?
Signup and view all the flashcards
What is a non-profit company?
What is a non-profit company?
Signup and view all the flashcards
How can a company be composed?
How can a company be composed?
Signup and view all the flashcards
How are companies classified today?
How are companies classified today?
Signup and view all the flashcards
What are ordinary incomes?
What are ordinary incomes?
Signup and view all the flashcards
Study Notes
- Kevin Elias Ricardo López is a Public Accountant.
- This is lecture material for Accounting I at the Comfenalco Technological University Foundation
Concept of Business
- It is a general theoretical-practical perspective of business organizations.
Article 25 of the Colombian Commercial Code
- A company is defined as any organized economic activity for production, transformation, circulation, administration, or custody of goods, or for the provision of services
- The activity occurs through one or more commercial establishments
Factors of an Enterprise
- Capital consists of contributions from the owners, represented in money, merchandise, machinery, equipment, technology, furniture, and other assets.
- Labor includes the activities performed by individuals to achieve the enterprise's objectives, such as administration, production, sales, or service provision.
- People represents the human talent in the company, including owners, administrators, and workers.
- A key question to ask is whether the entity will pursue profit or a social purpose to work the concept of company
Entities
- For-profit entities aim to generate utilities or profits for the partners or shareholders.
- Examples of for-profit entities include corporations and simplified stock companies such as SAS.
- Non-profit entities operate to serve a social or public cause.
- The goal of entities is not to generate utilities or profits and depend on donations, subsidies, and funds to cover operating costs.
- In non-profit entities, any surplus is called an excess and must be reinvested
- If the company is for profit, its profits are considered as income which can be distributed among partners or shareholders.
How Profits Are Generated
- The profits of entities are part of income statements.
- There is an annual closing with the equity account.
- Equity account is a profit, so the result is taking the income minus costs and expenses.
- The income statements should be reviewed with the accounting information system.
The Accounting Information System Defined
- It is a set of interrelated systematic processes with special activities which requires people, resources, and data.
- It is used to manage the information generated by transactions and economic events.
Purpose of The Accounting Information System
- To produce and disclose reliable and useful accounting and financial information.
- This is so the parties responsible for administration can use it for decisions about the management of the resources and operations.
Elements Which Impact the Accounting Information System
- Political and social environment
- Technological environment
- Financial
- Personal
- SIC
- Production Environment
- Marketing
- Legal environment
- Economic Environment
Business Classification in Colombia
- Each company is a different universe
- Understanding allows for applying accounting principles.
Classification by Social Purpose
- For-profit entities aim to provide a profit or utility to their members.
- Examples include natural & legal persons, commercial companies, financial, stock market and foreign exchange institutions.
- Non-profit organizations seek to provide a specific service such as health, education, and welfare.
- Examples include foundations, associations, corporations, cooperative sector, family compensation funds, mutual investment funds, and employee funds.
Classification by Legal Structure
- Collective Society: Partners. Minimum of 2 partners
- Limited Liability Company: Partners. Minimum of 2, maximum of 25 partners.
- Limited Partnership: General and limited partners. Minimum of 1 general partner, up to 25 limited partners.
- Simplified Stock Corporation: Shareholders. Minimum of 1 shareholder.
- Corporation: Shareholders. Minimum of 5 shareholders.
- Limited Partnership: General and limited partners. Minimum of 1 partner.
Classification by Size of Companies
- Determined by Decree 957 of 2019.
- Before Decree 957, number of total workers, gross sales value, and total asset value were used by Article 2 of Law 590 of 2000 for measurement
- Now annual ordinary income is used
Size context of enterprises
- As public accountants, it is important to verify this annually.
- Ignorance of the rule does not excuse compliance.
Size According to Sector
- Figures are expressed in UVT as of 2025 value of $49,799
- Micro: Manufacturing (Up to 23,563), Services (Up to 32,988), Commerce (Up to 44,769)
- Small: Manufacturing (Between 23,563 to 204,995), Services (Between 32,988 to 131,951), Commerce (Between 44,796 to 431,196).
- Medium: Manufacturing (Between 204,995 to 1,736,565), Services (Between 131,951 to 483,034), Commerce (Between 431,196 2,160,692) Large: All sectors exceed the top figures
How the Size Gets Calculated
- Use the total ordinary income for the immediately previous year according to article 2.2.1.13.2.3 of Decree 957 of 2019.
Ordinary Income Defined
- Income from main business plus activities not considered investment or financing, following financial reporting standards.
Next Class
- Legal requirements for constituting an enterprise, natural & legal entities, concept of trader (including legal duties), and documentation.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
