TYPES OF ACCOUNTING:
-ACCOUNTING: Calculating all the expenses involved in producing something, including Materials, labor, and all other expenses.
-AUDITING: Calculating how much an individual or a company will have to pay to the local And national governments (and trying to reduce this to a minimum)
-BOOKKEPING: Inspecting and reporting on accounts and financial records.
-COSTACCOUNTING: preparing financial statements showing income and expenditure, Assets and liabilities.
-“CREATIVEACCOUNTING”: providing information that will allow a business to make Decisions, plant future operations and develop business strategies.
-MANAGEMENTACCOUNTING: using all available accounting procedures and tricks to disguise The true financial position of a company.
-TAXACCOUNTING: writing down the details of transactions (debits and credits)
DEBT AND EQUITY FINANCING:
BONDS: mini prestecs
Debt financing; Deuteà Bank or lending institution. No control over the company and no ownership. Difficult to get for small companies.
Equity financing: Actiu I passiu. From the sale of stock to investors. Pay no money back, more Time, no monthly payments. Gwing up ownership or a potion of your company; Consult everything with investors. Stocks.
Stocks: IPO (Initial public offering) first time Company goes public in stock market.
Principal value: Valor sense interessos.
Par value: valor total amb interessos
Stocks (equity finance) and Bonds (debt finance), the difference is the way in which they are Sold and the risk involved.