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Accounting For Dummies, 6th Edition

John A. Tracy

ISBN: 978-1-119-24568-1 June 2016 416 Pages


Open the books on accounting with this friendly guide

Want to make sense of accounting basics but don't know where to begin? This new edition of Accounting For Dummies helps you speak your accountant's language with ease—minimizing confusion as you maximize profits. Written in plain English, it quickly gets you up to speed on how to manage inventory, report income and expenses for private or public companies, evaluate profit margins, analyze business strengths and weaknesses, manage budgets for a better bottom line, and so much more.

Whether you're a small business owner, a manager with budget responsibilities, or just want to understand your 401(k) statements, this friendly guide helps you get a handle on all those columns of numbers—without losing your cool. From tips for getting the most out of reading a financial report to ways to analyze and manage profit—and everything in between—it gives you the jargon-free introduction to accounting you need to make sense of those numbers.

  • Get the scoop on accounting basics and standards
  • Read and understand financial statements with ease
  • Report income and expenses for public or private sectors
  • Create great financials and boost your bottom line

If the thought of accounting gives you anxiety, you're in luck! Accounting For Dummies is your no-nonsense ticket to success!

Introduction 1

Part 1: Opening the Books on Accounting 5

CHAPTER 1: Accounting Spoken Here 7

CHAPTER 2: Introducing Financial Statements 29

CHAPTER 3: Keeping the Books and Guarding the Family Jewels 53

CHAPTER 4: Knowing the Accounting Entity 77

Part 2: Exploring Financial Statements 101

CHAPTER 5: Reporting Profit or Loss in the Income Statement 103

CHAPTER 6: Reporting Financial Condition in the Balance Sheet 129

CHAPTER 7: Reporting Cash Sources and Uses in the Statement of Cash Flows .153

CHAPTER 8: Financial Accounting Issues 171

Part 3: Reading Financial Reports 191

CHAPTER 9: Getting a Financial Report Ready for Release 193

CHAPTER 10: Reading a Financial Report 215

CHAPTER 11: Inside Information for Managers Only 241

Part 4: Accounting in Managing a Business 261

CHAPTER 12: Analyzing Profit 263

CHAPTER 13: Accounting for Costs 285

CHAPTER 14: Budgeting 307

Part 5: The Part of Tens 327

CHAPTER 15: Ten Tips for Managers 329

CHAPTER 16: Ten Tips for Reading a Financial Report 339

Appendix: Glossary: Slashing through the

Accounting Jargon Jungle 349

Index 365