Prof. Maurino Bolante “Mau”
Basic Accounting Concepts
Basic Financial Reports
- for potential investors (equity / capitalization / creditors)
Basic Questions
- 5 Strategic Questions
- Can we sell?
- Sales / Revenues
- Can we produce?
- Costs (what the customer gets, you incur a cost; direct)
- Cost of Sales
- Cost of Production
- Cost of Service
- Costs (what the customer gets, you incur a cost; direct)
- Can we operate?
- Expenses
- Salaries
- Rent
- Expenses
- Can we afford?
- Is it worth it (rate of return)?
- Can we sell?
- John Gokongwei