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Accounting Demystified

Book Description

Accounting is truly the language of business. Success or failure is measured in dollars, but in order to make good decisions, you need to understand how finances drive business realities and become fluent in the essential elements of the accounting process. ACCOUNTING DEMYSTIFIED tells you all you need to know about the numbers that drive business. The book uses examples of typical business situations to demonstrate basic financial concepts, including:

* The accounting process

* Financial statements

* Making entries

* Accounts payable and accounts receivable

* Cashflow statements

* Fixed and intangible assets

* Inventory

* Liabilities

* Adjusting and closing entries

* Prepaid expenses

* Preparing a bank reconciliation

* Accounting information systems

* Stockholders equity

* Ratio analysis

ACCOUNTING DEMYSTIFIED transforms a complex and potentially intimidating subject into something anyone can easily comprehend. This useful resource helps you understand the basics of accounting and gives you access to an essential part of any business equation. For new students of accounting, entry-level accounting professionals, and business professionals whose own work relates directly to the numbers on the ledger, a basic understanding of core accounting functions and documents is critical. Accounting Demystified provides a simple and straightforward description of universal elements of the accounting process, plus accessible tutorials in creating, interpreting, and using financial statements. Haber's clear language will let readers:

* understand accounting basics

* find errors quickly

* prepare accurate financial statements

* analyze financial documents

* determine the financial health of a business

* prepare a financial prospectus for potential investors and lenders

From the classroom to the back room to the board room, Accounting Demystified serves as a valuable primer on the basics of accounting and the purposes they serve.

Table of Contents

  1. Copyright
  2. Acknowledgments
  3. Introduction
  4. Financial Statements
    1. Income Statement
    2. Statement of Retained Earnings
    3. Balance Sheet
    4. Summary
  5. The Accounting Process
    1. Journalize
    2. The Accounting Equation
    3. Post
    4. Trial Balance
    5. Finding Errors
    6. Rest of the Process
    7. Summary
  6. Making the Entries
    1. Analogies to Personal Life
    2. Some Examples
    3. Summary
  7. Assets
  8. Cash
    1. Petty Cash
    2. Bank Reconciliation
  9. Accounts Receivable
    1. Control Account/Subsidiary Ledger
    2. Bad Debts
  10. Inventory
    1. Specific Identification
    2. First-In, First-Out
    3. Last-In, First-Out
    4. Weighted Average
    5. Things to Keep in Mind
  11. Prepaid Expenses
  12. Other Receivables
    1. Loan Term
    2. Interest
    3. Entries
  13. Fixed Assets
    1. Land
    2. Land Improvements
    3. Leasehold Improvements
    4. Buildings
    5. Equipment and Machinery
    6. Furniture
    7. Fixtures
    8. Vehicles
    9. Depreciation
    10. Retirement
    11. Asset Sale
  14. Intangible Assets
  15. Liabilities
    1. Unearned Revenue
    2. Accrued Expenses
  16. Accounts Payable
  17. Other Payables
    1. Interest Payable
    2. Rent Payable
    3. Taxes Payable
    4. Salaries Payable
    5. Payroll Taxes Payable
  18. Stockholders’ Equity
    1. Types of Stock
    2. Common Stock
    3. Recording the Issuance
    4. Treasury Stock
    5. Dividends
  19. Merchandising Companies
    1. Perpetual Inventory System
    2. Periodic Inventory System
    3. Discounts for Early Payment
    4. Side-by-Side Comparison of the Periodic and Perpetual Systems
  20. Adjusting and Closing Entries
    1. Payroll Accrual
    2. Reversing Entries
    3. Interest Expense
    4. Unearned Revenue
    5. Prepaid Expenses
    6. Closing Entry
  21. Specialized Journals
    1. Cash Receipts Journal
    2. Cash Disbursements Journal
    3. Purchases Journal
    4. Sales Journal
    5. Payroll Journal
  22. Statement of Cash Flows
    1. Direct Method
    2. Indirect Method
  23. Ratio Analysis
    1. Horizontal and Vertical Analysis
    2. Ratio Analysis
    3. Summary
  24. Glossary
  25. Index