Accounting For Dummies. John A. Tracy

Accounting For Dummies - John A. Tracy


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4: Accounting in the Digital Age Noting a Few Foundational Accounting Concepts Related to Technology Using Accounting Software in the Cloud and on the Ground Controlling and Protecting Money Flows in the Electronic Age Managing the Accounting Function in the On-Demand World Chapter 5: Recognizing the Legal and Accounting Entity Being Aware of the Legal Roots of Business Entities Going It Alone: Sole Proprietorships Differentiating Partnerships and Limited Liability Companies Incorporating a Business

      6  Part 2: Exploring Financial Statements Chapter 6: Reporting Profit or Loss in the Income Statement Presenting Typical Income Statements Taking Care of Housekeeping Details Being an Active Reader Deconstructing Profit Pinpointing the Assets and Liabilities Used to Record Revenue and Expenses Reporting Unusual Gains and Losses Watching for Misconceptions and Misleading Reports Chapter 7: Reporting Financial Condition in the Balance Sheet Expanding the Accounting Equation Presenting a Proper Balance Sheet Judging Liquidity and Solvency Understanding That Transactions Drive the Balance Sheet Sizing Up Assets and Liabilities Financing a Business: Sources of Cash and Capital Recognizing the Hodgepodge of Values Reported in a Balance Sheet Chapter 8: Reporting Cash Sources and Uses in the Statement of Cash Flows Meeting the Statement of Cash Flows Explaining the Variance between Cash Flow and Net Income Sailing through the Rest of the Statement of Cash Flows Pinning Down “Free Cash Flow” Limitations of the Statement of Cash Flows Chapter 9: Financial Accounting Issues Reporting Changes in Owners’ Equity Recognizing Reasons for Accounting Differences Looking at a More Conservative Version of the Company’s Income Statement Explaining Differences Calculating Cost of Goods Sold Expense and Inventory Cost Recording Depreciation Expense Scanning the Revenue and Expense Radar Screen Using the Statement of Cash Flows as an Audit/Sanity Test

      7  Part 3: Understanding Financial Reports, Financial Statements, and Financial Information Chapter 10: Producing Financial Reports Quickly Reviewing the Theory of Financial Reporting Recognizing Top Management’s Role Keeping Current with Financial Accounting and Reporting Standards Making Sure Disclosure Is Adequate Putting a Spin on the Numbers (Short of Cooking the Books) Comparing Public and Private Companies Dealing with Information Overload Chapter 11: Deciphering a Financial Report Knowing the Rules of the Game Making Investment Choices Contrasting Reading Financial Reports of Private Versus Public Businesses Explaining the Role of MDORs and MD&As Frolicking through the Footnotes Checking Out the Auditor’s Report Chapter 12: Analyzing Financial Information with Ratios Understanding the Importance of Using Ratios to Digest Financial Statements Improving Your Knowledge of Financial Language and Lingo Starting with Sample Company Financial Statements Benchmark Financial Ratios: Financial Strength and Solvency Benchmark Financial Ratios: Financial Performance Making Time for Additional Ratios (If Needed) Chapter 13: Generating Internal Financial Information for Management Use Building on the Foundation of the External Financial Statements Distinguishing Internal and External


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