Understanding Company Structure, Accounting, and Tourism in Panama

Understanding Company Structure and Accounting Principles

A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. An accounting cycle is a set of steps applied in the accounting of a company. The general ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owner's equity, revenues, and expenses.

Elements of a Company

• Merchant
• Worker
• Technology
• Provider

Principles and Ethics Code of an Accountant

Accountants must adhere to a strict code of ethics, including:

• Integrity: The accountant must be upright in all their acts. It is not allowed to make any act that could discredit their profession.
• Discretion: All the information managed by accountants must be kept in strict privacy. This information cannot be spread to anybody; it must be private and reserved.
• Objectivity: When the accountant produces information, it must be objective, based on real facts, and there must be evidence.

Steps in the Accounting Cycle

• Collect and analyze transactions
• Record transactions in the journal
• Post to the general ledger
• Prepare an unadjusted trial balance
• Prepare adjusting entries
• Prepare an adjusted trial balance
• Prepare financial statements
• Close the accounts

Types of Accounting

Commercial Accounting

Applied in companies dedicated to buying and selling goods, it registers all business operations.

Cost Accounting

A specialization of accounting that is applied in manufacturing companies that make products and transform raw materials into final products.

Financial Statements

Balance Sheet

A snapshot of a company's financial position, including:

• Assets
• Liabilities
• Owner's Equity

Income Statement Accounts

• Operating revenues
• Operating expenses
• Non-operating revenues and gains
• Non-operating expenses and losses

Tourism and Hotel Management in Panama

Tourism in Panama

In 1994, Panama established the most modern and comprehensive law designed to promote tourism in Latin America and the Caribbean.

Hotel Management

The operations cycle in hotel management is very short. Restaurants receive materials every day; they are received in the morning, processed the same day, and finally sold that same day. Compared with industrial and commercial companies, there is a long period of time from the moment you buy raw materials until you receive them.