Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics
Format: PDF / Kindle (mobi) / ePub
Accounting for Non-Accountants is the perfect accounting guide for anyone who has never taken an accounting class, and has no idea what a balance sheet, income statement, or statement of cash flow is.
Dr. Wayne Label covers it all, in a style that's easy to understand and apply. This guide will help you get your accounting system up and running and your business needs satisfied.
Topics covered include:
-- Income Statements
-- Statements of Cash Flow
-- Balance Sheets
-- Assets & Liabilities
-- Double-Entry Bookkeeping
-- Debits & Credits
-- Audits & Auditors
-- And everything else beginners need to know
For entrepreneurs or anyone who needs to brush up on accounting fast, this book is an essential resource for the businessperson's shelf.
Sheet of Solana Beach Bicycle Company (figure 3.2). The Total Liabilities of the business are equal to $23,000. As with the Assets, the Liabilities list represents both short-term and long-term items. Again, similar to the list of Assets, the Short-Term Liabilities will be paid off in a period not to exceed one year. The Long-Term Liabilities will remain as debt to the company for longer than one year. With this or any long-term debt, a portion of it becomes due and payable each year. Thus, most
corporation to issue stock dividends, it must have enough authorized stock that has not been issued. If it does not, the corporation will have to apply for the issuing of more stock from the secretary of state in the state in which the corporation is incorporated. A company may split its stock for several reasons. One reason is that a stock split increases the number of shares on the market, which may mean that, in time, more people will own a part of the company. It is desirable to have more
the Inventory cannot be sold, or that prices must be reduced. A low turnover figure may also indicate that as of the Balance Sheet date too much cash has been invested in Inventory items. In a grocery store you would expect to see an Inventory turnover of one to two days because the Inventory is perishable. In a fur coat boutique, on the other hand, you would expect this ratio to be one or two months since fur coats are bought much less frequently and in much smaller quantities than foodstuffs.
is, why you and other people in business need to understand accounting, what businesses use accounting for, and what the basic financial statements used in these businesses are. In chapter 2 you will learn about principles accountants use in the United States and worldwide on a regular basis. GLOSSARY Accounting: The process of recording, classifying, and summarizing economic events through the preparation of financial statements such as the Balance Sheet, the Income Statement, and the
increasing the stockholders’ investment. For example, say that Company A, whose Assets total $100,000, Liabilities total $10,000, and Stockholders’ Equity totals $90,000, expects a Net Income next year of $9,000. This represents a return on investment of 10 percent. Now assume that management is considering the purchase of $40,000 worth of Assets. These Assets will produce additional annual Net Income (before Interest Expense) of $4,000. The company has two choices: it can borrow the $40,000 at