Please enable JavaScript.
Coggle requires JavaScript to display documents.
3.4 Final Accounts (Purpose of accounts to different stakeholders (The…
3.4 Final Accounts
Purpose of accounts to different stakeholders
The government
Suppliers
Employees
Managers
Shareholders
Customers
Competitors
Financiers
The local community
Liabilities
Long-term liabilities
Current liabilities
Working capital = total current assets - total current liabilities
Total assets less current liabilities = (fixed assets + current assets) - current liabilities
Total assets less current liabilities = fixed assets + working capital
Equity
Share capital
Retained proft
Equity = share capital + retained proft
Net assets = equity
Intangible assets
Copyright laws
Patents
Goodwill
Trademarks
Assets
Fixed assets
Current assets
Net assets = (total assets less current liabilities) - long-term liabilities
The main fnal accounts
The profit and loss account
The trading account
Gross proft = sales revenue - cost of sales
Cost of sales = opening stock + purchases - closing stock
The proft and loss account
Net proft before interest and tax = gross proft - expense
Net proft before tax = net proft before interest and tax - interest
Net proft after interest and tax = net proft before tax - corporation tax
The appropriation account
Retained proft = net proft after interest and tax - dividends
The balance sheet