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Corporate Accounting & Financial Management - Coggle Diagram
Corporate Accounting & Financial Management
[LEFT] 1. Financial Statements & Structure
is reported through -> Balance Sheet (Health at a specific date)
comprises -> 1. Asset
is defined as -> Def: Value owned generating economic benefits
illustrated by -> Ex: $15k office servers
comprises -> 2. Liability
is defined as -> Def: Financial debts or legal obligations owed
illustrated by -> Ex: $50k bank loan
comprises -> 3. Equity
is defined as -> Def: Net worth (Assets minus Liabilities)
illustrated by -> Ex: $100k Assets - $40k Liab = $60k Equity
measures performance via -> Income Statement (Net results over a period)
tracks inflow via -> 6. Revenue / Income
is defined as -> Def: Gross earnings from sales or services
illustrated by -> Ex: $20k monthly subscription sales
tracks outflow via -> 7. Expense
is defined as -> Def: Operational costs to run the business
illustrated by -> Ex: $2k monthly electric & internet bill
results in net gain when Rev > Exp -> 8. Profit
is defined as -> Def: Net financial gain remaining
illustrated by -> Ex: $50k Rev - $30k Exp = $20k Profit
results in deficit when Exp > Rev -> 9. Loss
is defined as -> Def: Financial deficit incurred
illustrated by -> Ex: $15k Exp - $10k Rev = $5k Loss
[TOP/CENTER] 2. Transactions & Business Documents
captures daily activity in -> 10. Transaction
is defined as -> Def: Commercial exchange affecting financial position
illustrated by -> Ex: Buying raw materials for $1,200 cash
is recorded initially as -> 13. Journal Entry
is defined as -> Def: First chronological system entry
illustrated by -> Ex: Entry on March 5 for $500 office supplies
applies left-side entry -> 14. Debit
is defined as -> Def: Left-side entry (increases Assets & Expenses)
illustrated by -> Ex: Debit $1k to Equipment Account
applies right-side entry -> 15. Credit
is defined as -> Def: Right-side entry (increases Liabilities & Revenue)
illustrated by -> Ex: Credit $1k to Cash Account
is categorized under -> 11. Account
is defined as -> Def: Individual record tracking similar items
illustrated by -> Ex: Main Cash Account
is aggregated into -> 12. Ledger
is defined as -> Def: Master book balancing all accounts
illustrated by -> Ex: End-of-month General Ledger check
is supported by source documents -> Source Documents
requests payment via -> 16. Invoice
is defined as -> Def: Commercial document requesting payment
illustrated by -> Ex: $3k design bill due in 30 days
proves payment via -> 17. Receipt
is defined as -> Def: Proof of completed payment
illustrated by -> Ex: Customer receipt for $45 headset
[RIGHT] 3. Costs, Taxes & Financial Management
manages direct production via -> 18. Cost
is defined as -> Def: Direct outlay required to produce goods/services
illustrated by -> Ex: $25 direct material to build a chair
handles legal obligations via -> 19. Tax
is defined as -> Def: Mandatory government charge on income/sales
illustrated by -> Ex: Annual corporate income tax
includes sales tax like -> 20. VAT (Value Added Tax)
is defined as -> Def: Sales tax added at each stage of supply chain
illustrated by -> Ex: $100 item + 19% VAT = $119 final price
plans future performance with -> 21. Budget
is defined as -> Def: Plan projecting future revenue and expenses
illustrated by -> Ex: $10k advertising budget for Q3
monitors cash movement with -> 22. Cash Flow
is defined as -> Def: Real-time movement of physical cash in and out
illustrated by -> Ex: Negative flow due to delayed client payments
processes salaries through -> 23. Payroll
is defined as -> Def: Record and distribution of employee salaries
illustrated by -> Ex: Monthly salary payout on the 25th
accounts for debt cost via -> 24. Interest
is defined as -> Def: Financial cost of borrowing or yield earned
illustrated by -> Ex: $200 monthly interest on business credit
is verified for compliance by -> 25. Audit
is defined as -> Def: Independent verification of accounting records
illustrated by -> Ex: External firm verifying company books
authorizes payout using -> 26. Voucher
is defined as -> Def: Internal payment support document authorizing cash payout
illustrated by -> Ex: Accounts payable voucher approving vendor invoice