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FUNDAMENTALS OF ACCOUNTING - Coggle Diagram
FUNDAMENTALS OF ACCOUNTING
INTRODUCTION
HISTORY
cradle
luca bartolome de pacioli
summa de arithmetical
douhble-entry
french
industrial
19th cent. (beginning in europe and america)
present
NATURE
service activity
art
means and not an end
process
deals with financial transactions and info
info system
FUNCTION
to provide quantitative info
meeting legal req
assess the effectiveness of the business' operation
protects business asset
helps to picture the business performance in financial terms
BRANCHES
financial
management
cost
government
education
research
auditing
tax
USERS OF FINANCIAL INFO
INTERNAL
EXTERNAL
FORMS OF BUSINESS ORG
sole/single proprietorship
partnership
cooperatives
corporation
TYPES OF BUSINESS ORG
service
manufacturing
merchandising
CONCEPTS AND PRINCIPLES
entity
going conern
materiality
objectivity
unit of measure
full disclosure
accrual
matching
period
conservatism
dual-effect
cost
consistency
revenue recognition
ACCOUNTING EQUATION
A = L + OE
TYPES OF MAJOR ACCOUNT
assets
current
noncurrent
liabilities
current
noncurrent
expenses
revenue
owner's equity
capital
drawing
BOOK OF ACCOUNTS
ledger
subsidiary ledger
general
journal
general
special
purchase
sales
cash disbursement
cash receipts