Read Understanding Business Accounting For Dummies, 2nd Edition Online
Authors: Colin Barrow,John A. Tracy
Tags: #Finance, #Business
Understanding Business Accounting For Dummies, 2nd Edition
BOOK: Understanding Business Accounting For Dummies, 2nd Edition
7.86Mb size Format: txt, pdf, ePub
ads
- Introduction
- About This Book
- Conventions Used in Financial Reports
- Some Assumptions
- How This Book Is Organised
- Part I: Accounting Basics
- Part II: Getting a Grip on Financial Statements
- Part III: Accounting in Managing a Business
- Part IV: Financial Reports in the Outside World
- Part V: The Part of Tens
- Part VI: Appendixes
- Icons Used in This Book
- Where to Go from Here
- Part I
- Chapter 1: Introducing Accounting to Non-Accountants
- Accounting Everywhere You Look
- The Basic Elements of Accounting
- Accounting and Financial Reporting Standards
- The importance of GAAP and evolving accounting standards
- Why the GAAP rules are important
- Income tax and accounting rules
- Flexibility in accounting standards
- Enforcing Accounting Rules
- The Accounting Department: What Goes On in the Back Office
- Focusing on Business Transactions and Other Financial Events
- Taking a Closer Look at Financial Statements
- Accounting as a Career
- Chapter 2: Bookkeeping 101: From Shoe Boxes to Computers
- Bookkeeping versus Accounting
- Pedalling through the Bookkeeping Cycle
- Managing the Bookkeeping and Accounting System
- Categorise your financial information: The chart of accounts
- Standardise source document forms and procedures
- Don't be penny-wise and pound-foolish: The need for competent, trained personnel
- Protect the family jewels: Internal controls
- Keep the scale in balance with double-entry accounting
- Check your figures: End-of-period procedures checklist
- Keep good records: Happy audit trails to you!
- Look out for unusual events and developments
- Design truly useful accounting reports for managers
- Double-Entry Accounting for Non-Accountants
- The two-sided nature of a business entity and its activities
- Recording transactions using debits and credits
- Juggling the Books to Conceal Embezzlement and Fraud
- Chapter 3: Taxes, Taxes, and More Taxes
- Taxing Wages and Property
- Putting the government on the payroll: Employer taxes
- Taxing everything you can put your hands on: Property taxes
- 'Cause I'm the Tax Man: Value Added Tax
- Taxing Your Bottom Line: Company Taxes
- Chapter 4: Accounting and Your Personal Finances
- The Accounting Vice You Can't Escape
- The Ins and Outs of Figuring Interest and Return on Investment (ROI)
- An Accounting Template for Retirement Planning
- Part II
- Chapter 5: Profit Mechanics
- Swooping Profit into One Basic Equation
- Measuring the Financial Effects of Profit-Making Activities
- Exploring the Profit-Making Process One Step at a Time
- Making sales on credit
- Depreciation expense
- Unpaid expenses
- Prepaid expenses
- Stock (or Inventory) and cost of goods sold expense
- So Where's Your Hard-Earned Profit?
- Reporting Profit to Managers and Investors: The Profit and Loss Account
- Chapter 6: The Balance Sheet from the Profit and Loss Account Viewpoint
- Coupling the Profit and Loss Account with the Balance Sheet
- Sizing Up Assets and Liabilities
- Sales revenue and debtors
- Cost of goods sold expense and stock
- SA&G expenses and the four balance sheet accounts that are connected with the expenses
- Fixed assets and depreciation expense
- Debt and interest expense
- Income tax expense
- The bottom line: net profit (net income) and cash dividends (if any)
- Financing a Business: Owners' Equity and Debt
- Reporting Financial Condition: The Classified Balance Sheet
- Costs and Other Balance Sheet Values
- Growing Up
- Chapter 7: Cash Flows and the Cash Flow Statement
- The Three Types of Cash Flow
- Setting the Stage: Changes in Balance Sheet Accounts
- Getting at the Cash Increase from Profit
- Presenting the Cash Flow Statement
- Sailing through the Rest of the Cash Flow Statement
- Free Cash Flow: What on Earth Does That Mean?
- Scrutinising the Cash Flow Statement
- Chapter 8: Getting a Financial Report Ready for Prime Time
- Reviewing Vital Connections
- Statement of Changes in Owners' Equity and Comprehensive Income
- Making Sure that Disclosure Is Adequate
- Types of disclosures in financial reports
- Footnotes: Nettlesome but needed
- Other disclosures in financial reports
- Keeping It Private versus Going Public
- Nudging the Numbers
- Browsing versus Reading Financial Reports
- Part III
- Chapter 9: Managing Profit Performance
- Redesigning the External Profit and Loss Account
- Basic Model for Management Profit and Loss Account
- Travelling Two Trails to Profit
- First path to profit: Contribution margin minus fixed expenses
- Second path to profit: Excess over break-even volume contribution margin per unit
- Calculating the margin of safety
- Doing What-If Analysis
- Lower profit from lower sales - but that much lower?
- Violent profit swings due to operating leverage
- Cutting sales price, even a little, can gut profit
- Improving profit
- Cutting prices to increase sales volume: A very tricky game to play!
- Cash flow from improving profit margin versus improving sales volume
- A Final Word or Two
- Chapter 10: Business Budgeting
- The Reasons for Budgeting
- The modelling reasons for budgeting
- Planning reasons for budgeting
- Management control reasons for budgeting
- Other benefits of budgeting
- Budgeting and Management Accounting
- Budgeting in Action
- Developing your profit strategy and budgeted profit and loss account
- Budgeting cash flow from profit for the coming year
- Capital Budgeting
- Staying Flexible with Budgets
- Chapter 11: Choosing the Right Ownership Structure
- From the Top Line to the Bottom Line
- What Owners Expect for Their Money
- Companies
- Partnerships and limited partnerships
- Sole proprietorships
- Limited companies (Ltd) and public limited companies (plc)
- Choosing the Right Legal Structure for Tax Purposes
- Chapter 12: Cost Conundrums
- Previewing What's Coming Down the Road
- What Makes Cost So Important?
- Sharpening Your Sensitivity to Costs
- Direct versus indirect costs
- Fixed versus variable costs
- Breaking even
- Relevant versus irrelevant (sunk) costs
- Separating between actual, budgeted, and standard costs
- Product versus period costs
- Putting Together the Pieces of Product Cost for Manufacturers
- Minding manufacturing costs
- Allocating costs properly: Not easy!
- Calculating product cost
- Fixed manufacturing costs and production capacity
- Excessive production output for puffing up profit
- A View from the Top Regarding Costs
- Chapter 13: Choosing Accounting Methods
- Decision-Making Behind the Scenes in Profit and Loss Accounts
- Calculating Cost of Goods Sold and Cost of Stock
- Identifying Stock Losses: Net Realisable Value (NRV)
- Appreciating Depreciation Methods
- Collecting or Writing Off Bad Debts
- Reconciling Corporation Tax
- Two Final Issues to Consider
- Part IV
- Chapter 14: How Investors Read a Financial Report
- Financial Reporting by Private versus Public Businesses
- Analysing Financial Reports with Ratios
- Gross margin ratio
- Profit ratio
- Earnings per share, basic and diluted
- Price/earnings (P/E) ratio
- Dividend yield
- Book value per share
- Return on equity (ROE) ratio
- Current ratio
- Acid-test ratio
- Return on assets (ROA) ratio
- Frolicking through the Footnotes
- Checking for Ominous Skies on the Audit Report
- Finding Financial Facts
- Chapter 15: Professional Auditors and Advisers
- Why Audits?
- Who's Who in the World of Audits
- What an Auditor Does Before Giving an Opinion
- What's in an Auditor's Report
- Do Audits Always Catch Fraud?
- Auditors and GAAP
- From Audits to Advising
- Part V
- Chapter 16: Ten Ways Savvy Business Managers Use Accounting
- Make Better Profit Decisions
- Understand That a Small Sales Volume Change Has a Big Effect on Profit
- Fathom Profit and Cash Flow from Profit
- Govern Cash Flow Better
- Call the Shots on Your Management Accounting Methods
- Build Better Budgets
- Optimise Capital Structure and Financial Leverage
- Develop Better Financial Controls
- Minimise Tax
- Explain Your Financial Statements to Others
- Chapter 17: Ten Places a Business Gets Money From
BOOK: Understanding Business Accounting For Dummies, 2nd Edition
7.86Mb size Format: txt, pdf, ePub
ads
Other books
Hillerman, Tony - [Leaphorn & Chee 13] by The First Eagle (v1) [html]
Forever Family (Forever #5) by Deanna Roy
The Blood That Bonds by Christopher Buecheler
Morgan the Rogue by Lynn Granville
El viaje al amor by Eduardo Punset
Protect Me by Jennifer Culbreth
Scorched Eggs by Laura Childs
Bound by Love by Rosemary Rogers
A Kid for Two Farthings by Wolf Mankowitz
Issie and the Christmas Pony by Stacy Gregg