Mind map
Accounting Concepts
Map content
Accounting Concepts
Capital- funds that you need to start a business
- - Borrowed Capital, money loaned. e.g. Bank - Own Capital, personal possessions used in a business.
Assets- everything that belongs to a business
- E.g.- freezer, fryer, cars, tables, cutlery, ovens. After you have all the items you price them all and this is only when you sell a business so you add the amount to the selling price.
- Fixed assets- possessions that do not change for more than 1 year, e.g. land and building, vehicles, equipment
- Current assets- possessions that change during the course of a year, e.g. trading inventory, bank account, petty cash, debtors control, fixed deposit
Liabilities- debt that a business or person has to pay
- Long-term- debts paid over more than 12 months
- Current- debts paid within 1 year
- Long-term- debts paid over more than 12 months