Accounting for Non-Accountants

Contents   Acknowledgments Introduction Chapter 1: Introducing Accounting and Financial Statements What Is Accounting? Who Uses Accounting Information? Financial Statements How Different Business Entities Present Accounting Information Chapter 2: Generally Accepted Accounting Principles Who Are the SEC, AICPA, FASB, and IASB? (or What Is This, Alphabet Soup?) What Are Generally Accepted Accounting Principles (GAAP)? What Are the Differences Between U.S. Accounting Standards and International Standards? Chapter 3: The Balance Sheet and Its Components Understanding the Balance Sheet The Accounting Equation Components of the Balance Sheet Transactions behind the Balance Sheet Chapter 4: The Income Statement Understanding the Income Statement The Income Statement Illustrated Transactions That Affect the Income Statement Business Transactions Chapter 5: Preparing and Using a Statement of Cash Flows What Is a Statement of Cash Flows? Cash and Cash Equivalents The Statement of Cash Flows Illustrated Chapter 6: The Corporation The Corporation Defined What Is Capital Stock? Cash Dividends, Stock Dividends, and Stock Splits Incorporating Solana Beach Bicycle Company What Is Treasury Stock? Chapter 7: Double-Entry Accounting The General Journal The General Ledger Trial Balance Adjusting Journal Entries Closing Journal Entries Chapter 8: Using Financial Statements for Short-Term Analysis Using Short-Term Ratios Current and Quick Ratios Working Capital Composition of Assets Inventory Turnover Ratio Average Collection Period Chapter 9: Using Financial Statements for Long-Term Analysis Quality of Earnings Rate of Return on Investment Sales-Based Ratios or Percentages Earnings Data Long-Term Debt Position Dividend Data Footnotes Chapter 10: Budgeting for Your Business What Is a Budget? Planning and Control Advantages of Budgeting Master Budget Sales Budget Capital Budget Budgeted Income Statement Cash Budget Chapter 11: Audits and Auditors What Is an Audit? Types of Auditors The Standard Audit Opinion Illustrated 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 Fraud Defined What Causes Fraud How Fraud Is Committed Why Do Employees Steal? What Can You Do to Prevent Fraud in Your Organization? What If My Business Is Too Small to Hire Additional Employees or Consultants? Ethics Appendix A: Internet for Accountants What Resources Are Available for Accountants? Appendix B: Frequently Asked Questions Appendix C: Financial Statements: The Coca-Cola Company A Note to My Readers About the Author