Mind Map Of Financial Reporting

Consepts Of Financial AccountingThe Objectives Of Financial ReportingFinancial informations Usefull in making decisionsHelps to evaluate (Liquidety , Solvency and ProbabilityDiffereniate Between Changes in economic resources and calims arrising from the intity performance (incom statement) and other events & transactions (balance sheet)Understanding the return on economic resources , evaluating Depatements Management(C Level) , Predicting future return .to be usefull to external parties , Must be prepaired Under (GAAP)Users Of Financial StatementsFeatures Of Financial StatementsManagement Accounting assists mamnagement decision making , planning and control (internal users , not follow GAAPDirect UsersIndiect UsersInvestors , Suppliers , Employees , ManagementFinancial advisor & Analysts , Stock markets , Regulatory AuthoritiesInternal Users Management (C Level) , Employees External UsersInvestors , Creditors , Financial Advisors , Stock Exchanges , Regulatory AgenciesNotes & DisclosuresNotes Should not be used to correct improper PresentationFinancial Statements Includes :Statement Of Financial PosiotionIncom StatementStatement of Comprehensive IncomStatement of Changes in EquityStatement Of Cash FlowComparable With Similar InformationFor Other IntitiesFor the Same intity in another Period or DateGoing Concern AssumptionFinancial Statements RelationshipsNet incom or loss(I.S) ------> Retairn Earnings (B.S) Cash & Cash equivalents (B.S) --------> Items in (C.F)Equity (B.S) -------> Beginning of (C.I.E)Inding Inventory (B.C) -------> Calculation of COGS (I.S)Depreciation (I.S) -------> Assets (B.S)Accrual Basis of AccountingRevenue are recognized in the period in wich they were earnedExpenses are recognized in the period in wich they were incured
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