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Function and Accounting descarga - Coggle Diagram
Function and Accounting 
The Accounting Cycle
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The accounting cycle comprises all the activities necessary to provide management with the quantified information it needs to plan, control and report the financial position.
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The Utility
In economic terms, we say that someone derives "Utility" from a good or service when the person prefers that this good or service exists or that it does not exist; or when comparing two services or states, that he prefers one to the other (Pierce, 1988).
To begin with, it refers to an assessment made by the person who enjoys (or suffers) a given service or state.
Contribution analysis involves the use of a number of analytical techniques to determine and evaluate the effects on the units.
Changes in sales volume (i.e., units sold), sales prices, fixed costs and variable prices.
Company Classification
A sole proprietorship: is a corporate business owned by one person. They are the most common forms of business organization because they are very easy to start. A sole proprietorship provides an excellent model for demonstrating accounting principles because it is the simplest form of business organization.
The partnership agreement: Partnership accounting is the same as that of a sole proprietorship, except that it maintains separate capital and withdrawal accounts for each of the partners. A distinguishing feature of partnership accounting is that the net income of the firm is divided among the partners in a manner provided for in the partnership agreement.
Formation of a corporation or joint stock company: A corporation is created under the constitution of a document issued by the state. Once the constitutional document has been approved by the entity in charge, the shareholders of the new company meet in turn and elect the directors and other employees of the company.
Cooperatives: a cooperative is a group of people with some economic, physical needs in common that comes together for the purpose of providing service as a means and the community around them. It should always aspire to develop as a strong and efficient enterprise. The importance of cooperatives lies in the fact that through the application of a true cooperative system with all its rules, norms, procedures and established principles, it will unquestionably be a tool for economic, social and intellectual development.
Costing Reports
The worksheet and adjusting entries: Once the worksheet and financial statements have been completed, the adjusting entries must be recorded in the general journal and then transferred to the general ledger.
The worksheet and closing entries: The worksheet, in addition to being used to record adjusting entries, is also used as a source of information for closing entries, which serve to cancel the balances of income and expense accounts. When closing these accounts, their balances are transferred to another account and they are settled (zero balance).
Justification of closing entries: Income and expense accounts are cancelled and closed at the end of each accounting period, transferring their balances to a summary bridge account entitled "Profit and loss", where the balances are summarized. The amounts in the profit and loss account, which reflect the net profit or loss for the period, are transferred to the owner's capital account.
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