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OMPILELA - ACCOUNTING - Coggle Diagram
OMPILELA - ACCOUNTING
Financial Reports
A reflection of the business activities of an entity for a said period.
Investors
Creditors
Prospective investors
Financial Statements
Balance Sheet /Statement of Financial Position
Snapshot of the state of the business (assets = liabilities + equities)
Income Statement
Records the movements of income or expenditure of a business within a financial period.
Cashflow Statement
Statement of Changes in Owner's Equity
DEFINITION
Study of the historical behaviour of money
REMINDER - Finance - future behavior of money
ACCOUNTING EQUATION
A (assets) = E (equity) + L (liabilities)
Assets - What you have that can make money for you
Equity - What you have that can make money for you THAT BELONGS TO YOU (OWNERSHIP)
Liabilities - What you have that can make money fot you THAT DOES NOT BELONG TO YOU!!!