Equations – red
Definition – Gold
Important but not a definition - orange
Accounting module – week 12
Main types of business – Sole proprietor, Unlimited Liability
Partnership,
Company with limited liability:
(Plc – Large, quoted on stock exchange) E.g., Tesco, HSBC Limited Liability
(Ltd – smaller, privately owned) E.g., Wilko, Clarks
Owner's equity is essentially the owner's rights to the assets of the business.
It's what's left over for the owner after you've subtracted all the liabilities
from the assets.
If you look at your company's balance sheet, it follows a basic accounting
equation:
Assets – Liabilities = Owner's Equity
Accounting – is an information system that provides information to decision
makers.
Income statement: calculates the profit or loss of a company.
(Investor and bank etc. would look at income statement to see profit or loss of
a company).
Financial position: how much money the company has (assets) and how much
it owes (liabilities). Balance sheet.
Definition – Gold
Important but not a definition - orange
Accounting module – week 12
Main types of business – Sole proprietor, Unlimited Liability
Partnership,
Company with limited liability:
(Plc – Large, quoted on stock exchange) E.g., Tesco, HSBC Limited Liability
(Ltd – smaller, privately owned) E.g., Wilko, Clarks
Owner's equity is essentially the owner's rights to the assets of the business.
It's what's left over for the owner after you've subtracted all the liabilities
from the assets.
If you look at your company's balance sheet, it follows a basic accounting
equation:
Assets – Liabilities = Owner's Equity
Accounting – is an information system that provides information to decision
makers.
Income statement: calculates the profit or loss of a company.
(Investor and bank etc. would look at income statement to see profit or loss of
a company).
Financial position: how much money the company has (assets) and how much
it owes (liabilities). Balance sheet.
