User:Jukeboksi/BBA studies/Accounting: Difference between revisions
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===== Income statement or profit and loss statement | ===== Balance sheet ===== | ||
::To understand what's going on with a [[w:business]] in addition to having an [[w:income statement]] one must also have knowledge of where the capital is, what is it's cost and it's payoff i.e. the <u>'''''[[w:Balance sheet]]'''''</u>, then you can calculate all sorts of fun [[w:metrics]] like [[w:Return on equity]] and [[w:return on investment]] etc. | |||
In [[w:financial accounting]], a '''[[w:balance sheet]]''' or '''statement of financial position''' is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. '''[[w:Asset]]s, [[w:liability (financial accounting)|liabilities]]''' and '''[[w:ownership equity]]''' are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic [[w:financial statements]], the balance sheet is the only statement which app | |||
=== Accounting classes === | |||
=== Accounting lesson 1 Double-entry bookkeeping, credit and debit === | |||
:* '''[[w:Double-entry accounting]]''' ( or '''double-entry [[w:bookkeeping]] system''' ) is a set of rules for recording financial information in a [[w:financial accounting]] system in which <u>'''''every transaction'''''</u> or event <u>'''''changes at least two'''''</u> different nominal [[w:ledger]] <u>'''''accounts'''''</u>. ( Wikipedia ) | |||
: In '''[[w:double-entry bookkeeping]]''' ( [[w:fi:Kahdenkertainen kirjanpito]] ) a minimum of '''2 [[w:ledger]] accounts''' ( [[w:fi:Reskontra]] ) are touched, one '''[[w:debit]]ed''' and another '''[[w:credit]]ed''' with every action recorded. ( [[w:fi:Debet ja kredit]] ) ( jubo-jubo ) | |||
:* '''[[w:Financial accountancy]]''' (or '''financial accounting''') is the field of [[w:accountancy]] concerned with the preparation of [[w:financial statements]] for decision makers, such as [[w:Shareholder|stockholder]]s, [[w:vendor (supply chain)|supplier]]s, [[w:bank]]s, employees, [[w:government agencies]], owners, and other stakeholders. Financial capital maintenance can be measured in either [[w:nominal monetary units]] or [[w:units of constant purchasing power]]. ( Wikipedia ) | |||
:* '''Management accounting''' or '''[[w:managerial accounting]]''' is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. ( Wikipedia ) | |||
:* '''[[w:Income statement]]''' (also referred to as '''profit and loss statement (P&L)''', '''revenue statement''', '''statement of financial performance''', '''earnings statement''', '''operating statement''' or '''statement of operations)'''is a company's '''[[w:financial statement]]''' that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). ( Wikipedia ) | |||
==== Income statement or profit and loss statement ==== | |||
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:::== '''[[w:Net income]]''' | :::== '''[[w:Net income]]''' | ||
:* A '''[[w:Balance sheet]]''' or '''statement of financial position''' ( in [[w:financial accounting]] ) is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. [[w:Asset]]s, [[w:liability (financial accounting)|liabilities]] and [[w:ownership equity]] are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a ''"snapshot of a company's financial condition"''. ( Wikipedia ) | :* A '''[[w:Balance sheet]]''' or '''statement of financial position''' ( in [[w:financial accounting]] ) is a summary of the financial balances of a [[w:sole proprietorship]], a [[w:Partnership|business partnership]], a [[w:corporation]] or other business organization, such as an [[w:Limited liability company|LLC]] or an [[w:LLP]]. [[w:Asset]]s, [[w:liability (financial accounting)|liabilities]] and [[w:ownership equity]] are listed as of a specific date, such as the end of its [[w:financial year]]. A balance sheet is often described as a ''"snapshot of a company's financial condition"''. ( Wikipedia ) | ||
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:::::* '''[[w:Liability|Liabilities]] == [[w:Current liabilities]] + [[w:non-current liabilities]]''' | :::::* '''[[w:Liability|Liabilities]] == [[w:Current liabilities]] + [[w:non-current liabilities]]''' | ||
=== Balances and flow statements === | |||
:* '''[[w: | ( [[w:fi:XYZ]] ) | ||
:*For every '''[[w:fiscal year|fiscal year]]''' ( [[w:fi:Tilikausi]] )a business must produce a '''[[w:annual report]]''' which contains ( in [[w:Finland]] ) | |||
: | :** the annual '''[[w:financial statement]]''' ( [[w:fi:Tilinpäätös]] ) which contains naturally | ||
:*** the '''[[w:balance sheet]]''' ( main document of accounts, [[w:fi:tase]] ) | |||
:***the '''[[w:income statement]]''' ( main flow document, [[w:fi:tuloslaskelma]] ) | |||
:*** the attachments for balance sheet and income statements [[w:fi:liitteet]] | |||
:*** the [[w:statement of changes in equity]] (SOCE) | |||
:** Textform description of businesses activities ( [[w:fi:toimintakertomus]] ) | |||
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