Please enable JavaScript.
Coggle requires JavaScript to display documents.
Accounting - Coggle Diagram
Accounting
Assumptions
the separate business entity
an accounting unit separate from its owners, creditors and managers, and their assets
time-period
the financial year or a quarter
the continuity or going concern
the current market value of assets is not important
the unit-of-measure
all financial transactions are in a single monetary unit or currency
Annual report
financial statements
the organization's financial activities
the balance sheet
all the assets and liabilities of the business
net worth of the company
income statement
revenue, expenses and the net profit or loss
a cash flow statement
a positive cash flow
can pay out dividends
a negative cash flow
cannot meet its short-term obligations
Financial accounting
preparing financial statements for shareholders and creditors
Questions
What is the company worth?
Are its shares a profitable investment?
Can it pay back all the money that it owes?
Management accounting
the use of accounting data by managers. for making plans and decisions
information helps
conduct a break-even analysis
calculate the gross margin
calculate overheads (indirect costs)
recording and summarizing an organization's transactions
reporting in the form of financial statements
Bookkeeping
the day-to-day recording of transactions