My New Mind Map

1. Accounts Payable: Short-term obligations to be paid by an organization.

2. Accounts Receivable: Money owed to a company by its debtors.

3. Balance Sheet: A financial statement that reports a company's assets, liabilities, and equity at a specific point in time.

4. Current Assets: Assets that can be converted into cash within one year.

5. Equity: The residual interest in the assets of an entity after deducting liabilities.

6. Expenses: The cost of goods or services used to operate a business.

7. Fixed Assets: Long-term assets that are not expected to be converted into cash within one year

8. Trial Balance

8.1. Definition: A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns.

8.2. Examples: List of All Ledger Account Balances.

9. Audit

9.1. Definition: An official inspection of an organization's accounts, typically by an independent body.

9.2. Examples: Financial Audit, Internal Audit.

10. Liabilities

10.1. Definition: Obligations a company must settle in the future.

10.2. Examples: Loans, Accounts Payable, Mortgages.

11. Cash Flow

11.1. Definition: The net amount of cash being transferred into and out of a business.

11.2. Examples: Cash from Operating Activities, Cash from Investing Activities.

12. Net Income

12.1. Definition: The total profit of a company after all expenses have been deducted from revenue.

12.2. Examples: Total Revenue - Total Expenses.

13. Gross Profit

13.1. Definition: Revenue minus the cost of goods sold (COGS).

13.2. Examples: Sales Revenue - COGS.

14. Depreciation

14.1. Definition: The allocation of the cost of a tangible asset over its useful life.

14.2. Examples: Depreciation on Machinery, Vehicles.

15. Revenue

15.1. Definition: Income generated from normal business operations.

15.2. Examples: Sales Revenue, Service Revenue.

15.3. Sole Proprietorship: A sole proprietorship, is also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by an individual.

15.3.1. Partnership: A business organization in which two or more individuals manage and operate the business. Both owners are equally and personally liable for the debts from the business.

15.3.2. Private Limited Company: It is a type of privately held small/medium business entity, in which owner liability is limited to their shares, the firm is limited to having 200 or fewer shareholders, and shares are prohibited from being publicly traded.