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Accounting System - Coggle Diagram

- - - - 1) dividends 2) stock will go up
    - - company that gives loans is "creditor"
      - principle + interest = debt
      - (assets) what you give creditor if you can't repay loan is "collateral"
      - can't repay loan is "default"
      - bad financial statements can lead harsher terms
- - - - Equity Investors
        
        Purchase a share of a stock and hope that the value of the stock increases over time to either hold or sell for a gain
      - Debt Investors
        
        "banks", the issue is that they require you to pay them back at intervals and interest, "more strict"
- - - - stock in traded on NASDAQ
    - - can also include "footnotes" Orr notes to the financial statements
      - always prepared at the end of year, but can be anytime