Read e-book online Accounting for Non-Accountants: A Manual for Managers and PDF

By Graham Mott

ISBN-10: 0749452641

ISBN-13: 9780749452643

This up-to-date variation of the best-selling instruction manual ''Accounting for Non-Accountants'' presents the precise advent to the fundamentals of accounting and company finance. It takes you thru accounting and monetary strategies and phrases in an easy-to-follow type. absolutely revised to incorporate info at the most up-to-date accounting criteria and adjustments in taxation legislation, it introduces innovations in a manner meant to assist non-financial scholars, in addition to managers from agencies of all sizes. it truly is divided into 3 major sections: annual debts, administration accounting and fiscal administration, and comprises examples and inquiries to try your knowing. ''Accounting for Non-Accountants'' is already established as an introductory textual content for company and administration scholars on numerous classes, and it is still crucial analyzing for a person wishing to actually comprehend accounting ideas and perform.

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Extra info for Accounting for Non-Accountants: A Manual for Managers and Students

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Format 2 requires more detail on the face of the profit and loss account, but these extra details are contained in supplementary notes to Format 1, so in reality there is little difference between them. Formats 1 and 2 use a vertical form of presentation while the rarely seen Formats 3 and 4 use a horizontal presentation that reflects double entry bookkeeping. The Financial Reporting Standard (FRS No 3) issued in 1992 and entitled Reporting Financial Performance aims to make the profit and loss account statement more reliable an indicator of financial performance and less vulnerable to creative accounting.

Here we have an example of the dual aspects of recording which explains why a balance sheet must always balance. DUAL ASPECTS OF RECORDING Another way of expressing the dual aspect of a balance sheet is by the equation: Assets = Liabilities 41 42 The annual accounts This balance sheet equation can best be understood by showing a few simple examples of how a balance sheet will look after transactions that affect either assets or liabilities, or both at the same time. Example 1 Joe Bloggs starts up a business and pays £1,000 into a newly opened business bank account.

The balance sheet will show the cash balance at the period end but will not easily disclose the multitude of ways in which it was achieved. Compiling a cash flow statement is quite a technical job and some training plus inside information is needed to complete the task. Nevertheless, the bulk of the items can be identified from an examination of the other two accounting statements for both the current and previous years. However, managers are interested in how to read the statement, not how to compile one, so we shall concentrate on its interpretation.

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Accounting for Non-Accountants: A Manual for Managers and Students by Graham Mott

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