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Accounting 10007 - Coggle Diagram

- - - - The Fundermental Characteristics
      - Relevence Faithful Representation (Reliability)
      - Enhancing characteristics
      - Comparability
      - Verifyiability
      - Timeless
      - Understandabillity
      - Time lag: There is a significant time delay from the end of the financial year until the information reaches users in the form of a financial report:
      - Business types sole trader, partnership, public and privaate listed companies (compinies have strict regulations to adhere to and ASIC ensures that they complay with these regulations
- - - - understanding the accounting equation, Differentiate between a business transaction, personal transaction and a business event :
        video 2 perform transaction analysis ,applay transaction ana;ysis to the accounting equation
        video 3 Introduction to the accounting cycle
        the Accounting equation A=L+QE this equation expresses the relationship between the assets of the entity and how the assets are financed (debt and/or equity)
        the equation can also be restated as Owners Equity= Assets-Liabillities
        transaction is an exchange between two or more pqarties
        -may effect the business along with customers, suppliers and other parties.
        personal transactions
        Where the transaction relates to the owner.
        
        2 more items...
        
        link to example.com
        
        2 more items...
    - - Golden Rule the accounting equation must balance after every transaction .
        The Accounting cylcye
        EFT Recepits The Source Documents
        step 2 Journal Entery,
        
        Drawbacks oF THE General Journal Entry
        It DOES WORK BUT IT NEEDS TO BE COMPLEMENTED
        
        Accrued Revenues, Accrued Expenses PrepaidRevenues,Prepaid Expenses