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Accounting - Coggle Diagram
Accounting
Financial Accounting
Accurate financial statements
Income Statement
Revenues-expenses=net income
Balance Sheet
Assets= Liabilities+ Owner's Equity
Statement of Cash Flows
Operating cash flow+ Investing cash flow+ Finance cash flow=net cash flow
Elements
Assets
Liabilities
Equity
Revenues
Expenses
GAAP/IFRS
Sets regulations to prevent fraudulent behavior and help potential investors and stakeholders.
Managerial Accounting
Cost Accounting: comes from Managerial Accounting
Budget preparation and analyzing profitability
Helps determine the production and control costs.
Focuses on past and present information.
Supply chain
Expenses
Actual costs
fixed or variable costs
Decision making are made by managers.
Managers look at financial statements, as well as other factors pertaining to his or her company's operations to improve efficiency and profitability.
Focuses on future information.
Raw Materials, Work-in-progress, Finished Goods
Makes Cost of Goods Sold (COGS)
When sold, COGS makes revenue and increases profitability for a company.
