Everything on a balance sheet
is classified as an asset,
liability, or owners equity.
Accounting Concept Map
General Accounting Terms
Invest
In finance, investing is money spent
with the expectation of achieving a
profit or material result in the futurre.
Net Worth
In finance, net worth is described
as the total wealth of an individual,
company, or household.
Expenses
Subtopic
In finance, an expense is a cost of
operations that a company incurs
to generate its revenue.
Debt
In finance, debt is an amount
owed for funds borrowed.
In finance, a loan is when money is given
to another party in exchange for repayment
of the loan plus interest. (Does not have to
have interest)
Capital
In finance, capital is typically cash or liquid
assets being held or obtained for expendatures.
Accounting
Source Document
A source document is an original copy of
a document that contains the details
of a business transaction.
Certified Public Accountant
Trusted financial advisor
that helps individuals,
businesses, and orgs.
A Certified Public Accountant
is the title of a qualified
accountant in numerous
countries.
Ms. Vather's Husband :)
Professional Accountant
Wears boring clothing :)
A person who has expertise in
the fieldof accountancy.
Accounting Roles
Accountant Clerk
Accountant clerks are limited to
bookkeeping and other basic
admiinistrative tasks.
A high level of education
is not required for an
accountant clerk to have.
A high school diploma
will suffice.
Similarities
Both roles have to have
strong communication
skills because they may
deal with customers with
little to no background in
the accounting process.
Both roles have to be
very strong with numeracy
skills because they use
them daily.
Both of these roles
participate in the
accounting cycle.
Accountant
Unlike an accountant clerk, there is a wide range
of sub fields an accountant can be.
Auditing
An accountant may choose
to specialize in any of these
fields or more.
Taxation
Management
Accounting
In order to become a Certified Public Accountant,
the highest level of accounting in the USA, you
must have your bachelor's of accounting, 30 hours
of extra studying, pass 4 exams in 18 months, and
amass two years of accounting work experiance.
Businesses
Types of Businesses
Non-Profit Organization
Manufacturing Business
Merchandising Business
Service Business
An example of a service
business that is also a
corporation would be
TD Bank.
Levels of Business
Any type of business can
also be any level of business.
Corporation
A corporation is a legal business that is
seperate from its owners.
Partnership
A type of enterprise owned
by a pair of people.
Sole Proprietorship
Usually these business are smaller
and more local businesses.
A type of enterprise owned
by a single individual.
Balance Sheets
A balance sheet is a summary of the financial balances
of an individual or organization. On a balance sheet you
can see things like assets, liabilities, and owners equity.
Owners Equity
Liabilities
Accounts Payable
Money owed to a person or comapny.
Mortgage
Very similar.
Similar to a loan but
usually used for larger
purchases like land or
buildings.
Loan
The lending of money to your
business from a bank.
Classified Balance Sheet
Two very similar
concepts
A classified balance sheet is similar to a
balance sheet, but it keeps out certain
topics like current assets and liabilities,
long term assets and liabilities, and others.
Assets
On a balance sheet, the assets
are put in order of liquidity with
most liquifiable on the top.
Supplies
Any supplies that the business owns.
Equipment
Any equipment that the business owns.
Cash
Accounts Receivable
Accounts receivable refers to any money
that is owed to a person or company.
