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(PDF) Accounting made simple pdf | ronny romanus - www.tumblr.com
WELCOME, LET THE FUN BEGIN! Get e-Books "Accounting Made Simple" on Pdf, ePub, Tuebl, Mobi and Audiobook for www.tumblr.com are more than 1 Million Books that have been enjoyed by people from all over the world. Always update books hourly, if not looking, search in the book search column. Enjoy % FREE. Aug 26, · Download FileFor a financial student accounting is a compulsory subject to learn and have a full command over its concepts and methods. The first thing that comes in accounting is double entry system means you have to record both the aspects of the transaction. There are other very important concepts which you have to learn/5. Accounting Explained in Pages or Less - Accounting Made Simple by Mike Piper. Accounting Made Simple () provides a brief introduction to the fundamentals of accounting, illustrating how to read the most important financial statements and draw a conclusion about the numbers. Start your free Blinkist trial to get unlimited access to.
Accounting made simple mike piper pdf free download
To browse Academia. Skip to main content. Log In Sign Up. Accounting made simple pdf. Ronny Romanus. The author will make his best effort to keep the information current and accurate; however, given the ever-changing nature of industry regulations, no guarantee can be made as to the accuracy of the information contained within. Thank you. Your Feedback is Appreciated. If you find the book helpful, please let me know! You can reach me at: mike accounting made simple mike piper pdf free download. Net Income 4.
Statement of Retained Earnings Bridge between financial statements Dividends are not an expense! Retained Earnings: Not the same as cash 5.
Cash Flow Statement As opposed to income statement Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities 6. What is GAAP? Who has to follow GAAP?
Cash vs. Accrual Cash method Accrual method Prepaid expenses Unearned revenue Depreciation of Fixed Assets Straight-line depreciation Accumulated Depreciation Salvage value Gain or loss on sale Other depreciation methods Expensing immaterial purchases Amortization of Intangible Assets What are intangible assets? Straight-line amortization Legal life vs. The only way to pack a topic such as accounting into just pages is to be as brief as possible. In other words, the goal is not to turn you into an expert.
Now, having made that little disclaimer, I should state that I do think this book will help you achieve a decent understanding of the most important accounting concepts, accounting made simple mike piper pdf free download.
So What Exactly Is Accounting? That said, all those professors are right. At its most fundamental level, accounting is the system of tracking the income, expenses, assets, and debts of a business.
A discussion of the most important financial statements used in accounting: How to read each one, as well as what lessons you can draw from each. Assets: All of the property owned by the company. Liabilities: All of the debts that the company currently has outstanding to lenders. My Asset is Your Liability One concept that can trip up accounting novices is the idea that a liability for one person is, in fact, an asset for somebody else.
For example, if you take out a loan with your bank, the loan is clearly a liability for you. From the perspective of your bank, however, the loan is an asset. Similarly, the balance in your savings or checking account is, of course, an asset to you. For the bank, however, the balance is a liability. It is, quite simply, a formal presentation of the Accounting Equation. Have a look at the example of a basic balance sheet on the following page. Assets Cash and Cash Equivalents: Balances in checking and savings accounts, as well as any investments that will mature within 3 months or less.
Accounts Receivable: Amounts due from customers for goods or services that have already been delivered. Property, Plant, and Equipment: Assets that cannot readily be converted into cash—things such as computers, manufacturing equipment, vehicles, furniture, etc.
Liabilities Accounts Payable: Amounts due to suppliers for goods or services that have already been received.
Notes Payable: Contractual obligations due to lenders e. Retained Earnings: The sum of all net income over the life of the business that has not been distributed to owners in the form of a dividend.
It will be explained in more detail in Chapter 4, which discusses the Statement of Retained Earnings. Current vs. Long-Term Often, the assets and liabilities on a balance sheet will be broken down into current assets or liabilities and long-term assets or liabilities.
Current assets are those that are expected to be converted into cash within 12 months or less, accounting made simple mike piper pdf free download. Typical current assets include Accounts Receivable, Cash, accounting made simple mike piper pdf free download, and Inventory.
Sometimes, long-term assets are referred to, understandably, as non-current assets. Property, Plant, and Equipment is a long-term asset account. Current liabilities are those that will need to be paid off within 12 months or less. The most common example of a current liability is Accounts Payable. One column shows the balances as of the end of the most recent accounting period, and the adjoining column shows the balances as of the prior period-end. This is done so that a reader can see how the financial position of the company has changed over time.
For example, looking at the balance sheet on the following page we can learn a few things about the health of the company.
Overall, it appears that things are going well. The only thing that might be of concern is an increase in Accounts Receivable. An increase in Accounts Receivable could be indicative of trouble with getting clients to pay on time. Any asset that is not a current asset is a non-current a.
By default, any liability that is not a current liability is a long-term liability. This is in contrast to the balance sheet, which shows financial position at a point in time. A frequently used analogy is that the balance sheet is like a photograph, while the income statement is more akin to a video. Cost of Goods Sold CoGS is the amount that the company paid for the goods that it sold over the course of the period. All of his costs are overhead— that is, each additional return he prepares adds nothing to his total costs—so he has no Cost of Goods Sold.
His Gross Profit is simply equal to his revenues. Operating Income vs. Non-Operating Expenses are those that are unrelated to the regular operation of the business and, as a result, are unlikely to be incurred again in the following year.
A typical example of a Non-Operating Expense would be a lawsuit. The effect of this focus on Operating Income as opposed to Net Income has been to cause many companies to make efforts to classify as many expenses as possible as Non-Operating with the intention of making their Operating Income look more impressive to investors.
See example on following page. Its retained earnings statement for the year would look as follows. It takes information from the income statement, and it provides information to the accounting made simple mike piper pdf free download sheet. When first learning accounting, many people are tempted to classify dividend payments as an expense. Unlike many other cash payments, however, dividends are simply a distribution of profits as opposed to expenses, which reduce profits.
Because they are not a part of the calculation of net income, dividend payments do not show up on the income statement. Instead, they appear on the statement of retained earnings.
For instance, profits are frequently reinvested in growing the company by purchasing more inventory for sale or purchasing more equipment for production. They are a distribution of profits. Cash Flow Statement vs. Income Statement At first, it may sound as if a cash flow statement fulfills the same purpose as an income statement.
There are, however, some important differences between the two. First, there are often differences in timing between when an income or expense item is recorded and when the cash actually comes in or goes out the door.
In September, this sale would be recorded as an increase in both Sales and Accounts Receivable. And the sale would show up on a September income statement. The second major difference between the income statement and the cash flow statement is that the cash flow statement includes several types of transactions that are not included in the income statement.
The loan will not appear on the income statement, as the transaction is neither a revenue item nor an expense item. It is simply an increase of an asset Cash and a liability Notes Payable. As discussed in Chapter 4, dividends are not an expense. Therefore, the dividend will not appear on the income statement. It will, however, appear on the cash flow statement as a cash outflow.
Categories of Cash Flow On a cash flow statement such as the example on page 39 all cash inflows or outflows are separated into one of three categories: 1. Cash flow from operating activities, 2. Cash flow from investing activities, and 3. Cash accounting made simple mike piper pdf free download from financing activities. Cash Flow from Operating Activities The concept of cash flow from operating activities is quite similar to that of Operating Income. The goal is to measure the cash flow that accounting made simple mike piper pdf free download the result of activities directly related to normal business operations i.
Cash Flow from Investing Activities Cash flow from investing activities includes cash spent on—or received from—investments in financial securities stocks, bonds, etc. For accounting made simple mike piper pdf free download most part, this work is done by calculating and comparing several different ratios. Liquidity Ratios Liquidity ratios are used to determine how easily a company will be able to meet its short-term financial obligations.
Accounting Basics Explained Through a Story
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Read and Download PDF Ebook accounting made simple explained in pages or less mike piper at Online Ebook Library. Get accounting made simple explained in pages or less mike piper PDF file for free from our online library. Free PDF Download Books by Mike Piper. Find all of the following explained in Plain-English with no technical jargon: The Accounting Equation and why it's so significant How to read and prepare fina. Accounting made simple pdf.
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