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    4 CORES IN ACCOUNTING Notes

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    Rika Nathania (Yukari)
    The document outlines the 4 core areas of accounting: book keeping, financial accounting, managerial accounting, and tax. It focuses on financial accounting, describing the income statement which is used to determine profitability and trends by recording revenues, costs of goods sold, operating expenses, depreciation, and amortization. The balance sheet equation of assets equaling liabilities plus equity is also mentioned. Finally, it lists cash flow statement as the third major financial report.

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    4 CORES IN ACCOUNTING Notes

    Uploaded by

    Rika Nathania (Yukari)
    8 views1 page
    The document outlines the 4 core areas of accounting: book keeping, financial accounting, managerial accounting, and tax. It focuses on financial accounting, describing the income statement which is used to determine profitability and trends by recording revenues, costs of goods sold, operating expenses, depreciation, and amortization. The balance sheet equation of assets equaling liabilities plus equity is also mentioned. Finally, it lists cash flow statement as the third major financial report.

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    4 CORES IN ACCOUNTING notes

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    The document outlines the 4 core areas of accounting: book keeping, financial accounting, managerial accounting, and tax. It focuses on financial accounting, describing the income statement which is used to determine profitability and trends by recording revenues, costs of goods sold, operating expenses, depreciation, and amortization. The balance sheet equation of assets equaling liabilities plus equity is also mentioned. Finally, it lists cash flow statement as the third major financial report.

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    8 views1 page

    4 CORES IN ACCOUNTING Notes

    Uploaded by

    Rika Nathania (Yukari)
    The document outlines the 4 core areas of accounting: book keeping, financial accounting, managerial accounting, and tax. It focuses on financial accounting, describing the income statement which is used to determine profitability and trends by recording revenues, costs of goods sold, operating expenses, depreciation, and amortization. The balance sheet equation of assets equaling liabilities plus equity is also mentioned. Finally, it lists cash flow statement as the third major financial report.

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    © All Rights Reserved
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    4 CORES IN ACCOUNTING

    1. BOOK KEEPING
    2. FINANCIAL ACCOUNTING
    3. MANAGERIAL ACCOUNTING
    4. TAX

    FINANCIAL ACCOUNTING
    - It is mainly used for external stakesholder to take decision (mainly to know the company situation)

    1. Income statement (Profit & Loss statement)


    USED FOR: Profitable of not and Find trends

    Recording:
    - REVENUES: to know the core profit of the company → used for company valuation
    - OTHER REVENUES: other revenues which were obtained from side business of company

    - Cost of Goods Sold: the cost to produce product we’re selling


    - Operating Cost (expenses): other cost which is not directly related to COGS or Depreciation &
    amortization

    - Depreciation: an expense (will be reduced each month) → tangible assets


    METHOD:
    - Straight Line
    - Activity based depreciation
    - Ammortization: expense for intangible assets (e.g. software, brands, goodwill). Only items that has
    infinite life (such as brand name and software) won’t be ammortized

    2. BALANCE SHEET
    ASSET = LIABILITIES + EQUITY

    3. CASH FLOW STATEMENT

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