3214762
Description
Mind Map by mandilmcnamara, updated more than 1 year ago
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Created by mandilmcnamara
over 9 years ago
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The accounting Equation 1
- Assets
- future benefits
- a car
- computer
- computer
- building
- a car
- measurable value
- The original price paid for it
- increases or decreases in value
- you can calculate how much the value is.
- The original price paid for it
- debtors
- good for the future
- always know that they have money somewhere
- good for the future
- future benefits
- expenses
- used up fast
- company spends $
- Donut holes
- Donut holes
- paid with credit
- liabilities go up
- liabilities go up
- paid with cash
- assets go down
- assets go down
- owners equity goes down
- used up fast
- net income
- revenues > expenses
- revenues > expenses
- net loss
- revenues < expenses
- revenues < expenses
- breaking even
- revenues = expenses
- revenues = expenses
- liabilities
- debt of business
- liabilities = debt
- liabilities = debt
- creditor
- instead of cash, they pay you in supplies
- instead of cash, they pay you in supplies
- loan
- bank loans paid, liabilities go down
- bank loans ignored, liabilities go up
- bank loans paid, liabilities go down
- debt of business
- equity
- owners share of assets
- has $60,000 but owes $40,000 so they really have $40,000
- has $60,000 but owes $40,000 so they really have $40,000
- shareholders equity
- stocks $$
- stocks $$
- owners equity = assets - liabilities
- owners share of assets
- revenues
- equals income
- sales = revenues
- reports of revenues
- yearly
- quarterly
- yearly
- equals income
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