User:Jukeboksi/BBA studies/Accounting: Difference between revisions
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::The principles of accountancy are applied to business entities in three divisions of practical art, named | ::The principles of accountancy are applied to business entities in three divisions of practical art, named | ||
::# '''accounting''' ([[w:fi:laskentatoimi]] ) which is classically split to ( [[w:Financial accountancy|financial]] and [[w:Managerial accounting|managerial]] accounting ) | ::# '''accounting''' ( [[w:fi:laskentatoimi]] ) which is classically split to ( [[w:Financial accountancy|financial]] and [[w:Managerial accounting|managerial]] accounting ) | ||
::#'''[[w:bookkeeping|bookkeeping]]''' ( [[w:fi:kirjanpito]] ) and | ::#'''[[w:bookkeeping|bookkeeping]]''' ( [[w:fi:kirjanpito]] ) and | ||
::#'''[[w:auditing|auditing]]''' ( [[w:fi:auditointi]], mahd. [[w:fi:tilintarkastus]] ). ( Wikipedia ) | ::#'''[[w:auditing|auditing]]''' ( [[w:fi:auditointi]], mahd. [[w:fi:tilintarkastus]] ). ( Wikipedia ) | ||
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==== Double-entry bookkeeping, credit and debit ==== | ==== Double-entry bookkeeping, credit and debit ==== | ||
: In '''[[w:double-entry bookkeeping]]''' a minimum of '''2 [[w:ledger]] accounts''' are touched, one '''[[w:debit]]ed''' and another '''[[w:credit]]ed''' with every action recorded. | : 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]] ) | ||
==== Balances and flow statements ==== | ==== Balances and flow statements ==== | ||
( [[w:fi:XYZ]] ) | |||
:*For every '''[[w:fiscal year|fiscal year]]''' a business must produce a '''[[w:annual report]]''' which contains ( in [[w:Finland]] ) | :*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 annual '''[[w:financial statement]]''' ( [[w:fi:Tilinpäätös]] ) which contains naturally | ||
:*** the '''[[w:balance sheet]]''' ( main document of accounts, [[w:fi:tase]] ) | :*** the '''[[w:balance sheet]]''' ( main document of accounts, [[w:fi:tase]] ) | ||
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::<tt>Mnemonic:</tt> ''"The [[w:income statement]] describes the income possibilities of the [[w:entrepreneur]] with 100% of shares <u>not</u> the income of the business, that's called the [[w:top line]] and is only small part of the whole thing."'' | ::<tt>Mnemonic:</tt> ''"The [[w:income statement]] describes the income possibilities of the [[w:entrepreneur]] with 100% of shares <u>not</u> the income of the business, that's called the [[w:top line]] and is only small part of the whole thing."'' | ||
::An '''''[[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 [[w: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 [[w:net income]] (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). It displays the revenues recognized for a | ::An '''''[[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 [[w: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 [[w:net income]] (the result after all revenues and expenses have been accounted for, also known as Net Profit or the "bottom line"). It displays the revenues recognized for a specific period, and the [[w:cost]] and [[w:expense]]s charged against these revenues, including [[w:write-off]]s (e.g., [[w:depreciation]] and [[w:amortization]] of various [[w:asset]]s) and [[w:tax]]es. The purpose of the income statement is to show [[w:Management|managers]] and [[w:investor]]s whether the company made or lost money during the period being reported. ( Wikipedia ) | ||
<tt>Formula for income statement</tt> | <tt>Formula for income statement</tt> | ||