Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics Book

Acknowledgements xi

Introduction xiii

Chapter 1 Introducing Accounting and Financial Statements 1

• What Is Accounting?

• Who Uses Accounting Information?

• Financial Statements

• How Different Business Entities Present Accounting Information

Chapter 2 Generally Accepted Accounting Principles 11

• Who Are the SEC, AICPA, FASB, and IASB?

• Generally Accepted Accounting Principles (GAAP)

Chapter 3 The Balance Sheet and Its Components 25

• Understanding the Balance Sheet

• The Accounting Equation

• The Components of the Balance Sheet

• The Transactions Behind the Balance Sheet

Chapter 4 The Income Statement 45

• Understanding the Income Statement

• The Income Statement Illustrated

• Transactions That Affect the Income Statement

Chapter 5 Preparing and Using a Statement of Cash Flows 65

• What Is a Statement of Cash Flows?

• Cash and Cash Equivalents

• The Statement of Cash Flows Illustrated

Chapter 6 The Corporation 75

• The Corporation Defined

• What Is Capital Stock?

• Dividends and Splits

• Incorporating Solana Beach Bicycle Company

• What Is Treasury Stock?

Chapter 7 Double-Entry Accounting 97

• The General Journal

• The General Ledger

• Adjusting Journal Entries

• Closing Journal Entries

Chapter 8 Using Financial Statements for Short-Term Analysis 125

• Using Short-Term Ratios

• Current and Quick Ratios

• Working Capital

• Composition of Assets

Chapter 9 Using Financial Statements for Long-Term Analysis 137

• Quality of Earnings

• Rate of Return onInvestment

• Sales-Based Ratios or Percentages

• Earnings Data

• Long-Term Debt Position

• Dividend Data

• Footnotes

Chapter 10 Budgeting for Your Business 149

• What Is a Budget?

• Planning and Control

• Advantages of Budgeting

• The Master Budget

• Sales Budget

• Capital Budget

• Budgeted Income Statement

• The Cash Budget

Chapter 11 Audits and Auditors 159

• What Is an Audit?

• Types of Auditors

• The Standard Audit Opinion Illustrated

• The Parts of the Report

• Other Types of Audit Reports

• Why Audits Are Useful to You

• Other Services Provided by Auditors

Chapter 12 Fraud and Ethics 175

• Fraud Defined

• What Causes Fraud

• How Fraud is Committed

• Ethics

Appendix A Internet for Accountants 183

Appendix B Frequently Asked Questions 189

Appendix C Financial Statements-The Coca-Cola Company 195

Index 211

About The Author 226