Entrepreneurship and Leadership

  Assets, liabilities, equity, income, costs and expenses It is important to classify the financial accounts in order to know or to find information quicker. In every entrepreneurship there are two big groups of accounts: -       Assets, liabilities and equity: accounts that make part of the balance sheet -       Income, costs and expenses: accounts that make part of the profit and loss statement Specific denominations of the financial accounts Assets: There are divided in three types, which are current, fixed and deferred. Current assets are those goods or values that are in coin or paper in the cash account. The characteristics of current assets is that they can be converted into cash within a year. Fixed assets are those which are not bought to be sold, but they work as support for the business. For example: -       Land, buildings, machines, equipment, furniture, computers, cars, etc. Deferred assets are related to th...

 Identifying beforehand the different accounts involved in a named financial operation is very useful for understanding the balance sheet .    When the entrepreneur has timely information on the movement of the business main accounts , they are in a position to make a good financial diagnosis by correcting not only the weaknesses, but also by enhancing the strengths identified in the area of corporate finance.   A chart of accounts (COA) is a list of financial accounts set up, usually by an accountant, for an organization.  Under the systematic process of accounting, these interactions are generally classified into accounts. There are seven different types of accounts that all business transactions can be classified:     Assets     Liabilities     Equities     Revenue     Expenses     Gains     Losses What Is a Balance Sheet ? The term balance sheet refers ...