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Accounting - Coggle Diagram
Accounting
Bookkeeping Accounting
Fundamentals
Accounting Equation
Assets = Liability + Equity
Accrual Concept
Avoiding false-skewed months.
Record transaction when
it occurred, not when the money
is transferred.
Depreciation
Record transaction for
the length of its usefulness.
Account Types
Asset
Increase = Debit
Decrease = Credit
Liability
Increase = Credit
Decrease = Debit
Owner's Equity
Increase = Credit
Decrease = Debit
Retained Earnings
How much money left from
operations in a single period
after paying cost + dividends
Revenue
Increase = Credit
Decrease = Debit
Temporary, tied to a single period
Expenses
Increase = Debit
Decrease = Credit
Temporary, tied to a single period
Net Income
The result of Retained Earnings, does not
get calculated on Bookkeeping process, but
on the P/L consolidation sheet.
Used for
Chart of Accounts
Categorizing transactions
Grouping transactions into cost structures.
Financials Accounting
Managerial Accounting