UNIT 6- ACCOUNTING

The process of recording, summarizing, and analyzing a company’s financial transactions and reporting them in financial documents.

• FINANCIAL ACCOUNTING

• MANAGERIAL ACCOUNTING

• GAAP

• REVENUE

The process of analyzing financial information to be able to make managerial decisions.

• MANAGERIAL ACCOUNTING

• GAAP

• EXPENSES

• CPA

The money that a company has coming in.  This can be through sales, licensing, patents, and royalties.

• REVENUE

• EQUITY

• PROFIT

• LIABILITIES

The money that a company has going out.  This can be through basic spending, payroll, rent, utilities, taxes, etc.

• EXPENSES

• REVENUE

• PROFIT

• ACCOUNTING

Revenue - Expenses=

• PROFIT

• EXPENSES

• LIABILITIES

• CPA

Everything that an organization owns, such as buildings, equipment, skilled labor, etc.

• Assets

• Liabilities

• Equity

• Worth

Assets - Liabilities

(What a company is worth)

• EQUITY

• PROFIT

• REVENUE

• EXPENSES

Anything or debts a company owes.  These typically come from a mortgage for a building, paying off equipment over time, money owed to suppliers, or credit cards.

• LIABILITIES

• WITHDRAWALS

• PAYMENTS

• BANK TRANSACTIONS

This is a variable expense that is associated with the cost of the products or services sold.

• COGS

• CPA

• RAM

• GAAP

A set of accounting principles followed by most US businesses that allows allows them to measure a company’s financial health.

• GAAP

• CREDIT

• INTEREST RATES

• CPA