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2.1 - Coggle Diagram
2.1
Accounting and Finance
Financial Accounting
Generic Reports for Owners and Lenders
Financial Performance of the Business
Subject to Regualtions and Standards
Annual, Bi-annual, Quarterly Reports
Backward-looking Reports
Includes Monetary information only
Management Accounting
Specific-purpose Reports for Managers
Specific details for a particular Decision
Not Subject to Regualtions and Standards
Report produced upon request
Forward-looking Reports
Include monetary and non-financial information
Fianancial Management
Financial Awareness and skills
Inter-disciplinary Skills
Analytical Skills
Oral and written financiial communication
Facilitate Decision-making
Recruitment Budget
Marketing Campaign and sales
Operational Budgets
Awareness of other roles
Financial Statements
(Final Accounts)
Cash Flows
Movement of Cash
Income Statement
(Profit & Loss Account)
Generated Revenues, and Wealth over a period of time
Assets = Equity + (Sales revenue - Expenses) + Liabilities
Statement of Financial Position
(Balance Sheet)
Financial position at a point of time
Assets = Equity + Profit (Or - Loss) + Liabilities
The Acounting Equation
Assets = Equity + Liabilities
Assets
(Accounting)
Current
Held for less than a year
Used on a day-to-day basis
Changing in Value
e.g Bank account, inventory, account receivables.
Non-Current
(Fixed)
Held for more than a year
Non-trading items
e.g property, vehicles, patents and trademarks
Charastarestics
Future economic benefit
Arise from a past transaction
The right to control the resource
Measurable in monetary terms
Tangible and Non-tangible
Equity
Owner Investment
Liabilities
(Company Owses)
Non-Current
Payable after more than a year
e.g bank loan, bank overdraft
Current
Amounts company owes to other people or businesses
e.g acounts payable, salaries etc...
Equity and Liabilities are also called (
Claims
against a business)
Financial Reports