Introduction to Accounting
2nd Edition
Published on 28. March 1995
Book
Paperback/Softback
480 pages
978-1-85396-278-3 (ISBN)
Description
This book is an introduction to accounting for students coming to the subject for the first time. It introduces the basic techniques of accounting, explaining why they are used and how they are applied.
The authors believe the ability to prepare and interpret accounting information requires a combination of theoretical understanding and technical expertise. A full range of chapter-end questions, half of which have solutions provided, enables students to reinforce their technical skills and test their understanding.
This new edition has been updated and revised; and includes a statement of learning objectives for each chapter. Chapter 10 deals with recent developments in the regulation of company accounts; and provides students with an
appreciation of the nature and purpose of group accounts. There is a new chapter on the Cash Flow Statement, reflecting FRS 1; and Chapter 14 on decision- making now covers material on total costing and overhead recovery rates, including reference to activity-based costing. There is a new chapter on the nature and operation of standard costing and budgetary control systems.
It is accessible both to readers with a technical background, and also to those with less such experience, thanks to an extensive glossary. It is a valuable resource and includes information on available products.
The authors believe the ability to prepare and interpret accounting information requires a combination of theoretical understanding and technical expertise. A full range of chapter-end questions, half of which have solutions provided, enables students to reinforce their technical skills and test their understanding.
This new edition has been updated and revised; and includes a statement of learning objectives for each chapter. Chapter 10 deals with recent developments in the regulation of company accounts; and provides students with an
appreciation of the nature and purpose of group accounts. There is a new chapter on the Cash Flow Statement, reflecting FRS 1; and Chapter 14 on decision- making now covers material on total costing and overhead recovery rates, including reference to activity-based costing. There is a new chapter on the nature and operation of standard costing and budgetary control systems.
It is accessible both to readers with a technical background, and also to those with less such experience, thanks to an extensive glossary. It is a valuable resource and includes information on available products.
More details
Edition
2nd Revised edition
Language
English
Place of publication
London
United Kingdom
Target group
College/higher education
Edition type
Revised edition
Weight
800 gr
ISBN-13
978-1-85396-278-3 (9781853962783)
Copyright in bibliographic data is held by Nielsen Book Services Limited or its licensors: all rights reserved.
Schweitzer Classification
Other editions
New editions
Pru Marriott | J. R. Edwards | Howard J. Mellett
Introduction to Accounting
Book
01/2002
3rd Edition
SAGE Publications Inc
€166.70
Shipment within 15-20 days
Content
The Framework of Accounting
The Accounting Process
Suppliers of Accounting Information
Financial Accounting and Management Accounting Compared
External Users of Accounting Information
Principal Accounting Statements
The Balance Sheet
The Entity Concept
Reporting Capital in the Balance Sheet
Raising Further Finance
The Investment Decision
Business Development
The Trading Cycle
Reporting Changes in Owner's Capital
Assets = Capital + Liabilities
A Further Illustration
Classification of Assets and Sources of Finance
Valuation of Assets
Questions
Profit Calculated as the Increase in Capital
Profitable Activity
Profit and Changes in Gross Assets
Balance Sheet Presentation
Vertical Format
Profits, Losses and Changes in Net Assets
Profit Measured by Capital Changes
Capital Injections and Withdrawals
Questions
The Preparation of Accounts from Cash Records
Accounting Systems and Information Requirements
The Matching Concept
Profit = Revenue - Expenditure
Gross Profit and Net Profit
The Problem of Periodic Profit Calculation
The Identification of Revenue
The Realization Concept
Matching Expenditure with Revenue
The Benefit Principle
The Preparation of Accounts from Cash Records
A Worked Example
Clubs and Societies
Questions
The Double Entry System I: The Initial Record of Transactions
Introduction
Cash Flows
Flows of Goods and Services
Questions
The Double Entry System II: Ledger Accounts and the Trial Balance
introduction
The Interlocking Effect of Transactions
Ledger Accounts
Books of Prime Entry
Control Accounts for Debtors and Creditors
The Trial Balance
Computerized Accounting Systems
Advantages of Double Entry
Questions
The Double Entry System III: Periodic Accounting Reports
Periodic Accounts
Adjustments to the Trial Balance
Stocks (Inventories)
Depreciation
Disposal of Fixed Assets
Prepayments and Accruals
Bad Debts
The Adjusted Trial Balance
Questions
Asset Valuation, Profit Measurement and the Underlying Accounting Concepts
Asset Valuation and Profit Measurement
Tangible Fixed Assets
Intangible Fixed Assets
Stock Valuation Methods
Accounting Concepts
Questions
Partnerships
Introduction
The Partnership of Agreement
The Creation of a Partnership
The Division of Profit
Capital and Current Accounts
Changes in Membership
Change in Profit-Sharing Ratio
Dissolution of Partnerships
Questions
Company Accounts
Formation of Registered Companies
The Annual Report
Other Sources of Information
Share Capital
Share Premium Account
Share Forfeiture
The Rights Issue
Loan Capital and Debentures
The Appropriation Account
Revaluation Reserve
Redemption of Debentures
Bonus (Capitalization, scrip) issue of shares
Groups of Companies
Limitations of company Accounts
Questions
Some Specialized Accounting Techniques
Introduction
The Manufacturing Account
Departmental Accounts
Branch Accounts
Instalment Credit
Transfer of business
Value Added Tax (VAT)
Losses of Stock and Cash
Questions
Interpretation of Accounts: The Cash Flow Statement
Introduction
Format
Statement Construction
Some Complexities of the Cash Flow Statement
Interpretation Using the Cash Flow Statement
Questions
Interpretation of Accounts:Ratio Analysis
The Need for Profit and Cash
Principles of Ratio Analysis
Classification of Accounting Ratios
Return on Capital Employed (ROCE)
Profit Ratios
Solvency Ratios
Asset Turnover Ratios
Relationship between Accounting Ratios
Gearing (or Leverage)
Cash Flow Statement Ratios
Limitations of Accounting Ratios
Linking together Cash Flow Analysis and Ratio Analysis
Questions
Decision-Making
Introduction
Cost Behaviour
Total Costing and Overhead Recovery Rates
Investment Appraisal
Forecast Results
Questions
Standard Costing and Budgetary Control
Introduction
Budgetary Control
Preparation of the Budgets
Standard Costing
Calculation of Variances
Questions
The Accounting Process
Suppliers of Accounting Information
Financial Accounting and Management Accounting Compared
External Users of Accounting Information
Principal Accounting Statements
The Balance Sheet
The Entity Concept
Reporting Capital in the Balance Sheet
Raising Further Finance
The Investment Decision
Business Development
The Trading Cycle
Reporting Changes in Owner's Capital
Assets = Capital + Liabilities
A Further Illustration
Classification of Assets and Sources of Finance
Valuation of Assets
Questions
Profit Calculated as the Increase in Capital
Profitable Activity
Profit and Changes in Gross Assets
Balance Sheet Presentation
Vertical Format
Profits, Losses and Changes in Net Assets
Profit Measured by Capital Changes
Capital Injections and Withdrawals
Questions
The Preparation of Accounts from Cash Records
Accounting Systems and Information Requirements
The Matching Concept
Profit = Revenue - Expenditure
Gross Profit and Net Profit
The Problem of Periodic Profit Calculation
The Identification of Revenue
The Realization Concept
Matching Expenditure with Revenue
The Benefit Principle
The Preparation of Accounts from Cash Records
A Worked Example
Clubs and Societies
Questions
The Double Entry System I: The Initial Record of Transactions
Introduction
Cash Flows
Flows of Goods and Services
Questions
The Double Entry System II: Ledger Accounts and the Trial Balance
introduction
The Interlocking Effect of Transactions
Ledger Accounts
Books of Prime Entry
Control Accounts for Debtors and Creditors
The Trial Balance
Computerized Accounting Systems
Advantages of Double Entry
Questions
The Double Entry System III: Periodic Accounting Reports
Periodic Accounts
Adjustments to the Trial Balance
Stocks (Inventories)
Depreciation
Disposal of Fixed Assets
Prepayments and Accruals
Bad Debts
The Adjusted Trial Balance
Questions
Asset Valuation, Profit Measurement and the Underlying Accounting Concepts
Asset Valuation and Profit Measurement
Tangible Fixed Assets
Intangible Fixed Assets
Stock Valuation Methods
Accounting Concepts
Questions
Partnerships
Introduction
The Partnership of Agreement
The Creation of a Partnership
The Division of Profit
Capital and Current Accounts
Changes in Membership
Change in Profit-Sharing Ratio
Dissolution of Partnerships
Questions
Company Accounts
Formation of Registered Companies
The Annual Report
Other Sources of Information
Share Capital
Share Premium Account
Share Forfeiture
The Rights Issue
Loan Capital and Debentures
The Appropriation Account
Revaluation Reserve
Redemption of Debentures
Bonus (Capitalization, scrip) issue of shares
Groups of Companies
Limitations of company Accounts
Questions
Some Specialized Accounting Techniques
Introduction
The Manufacturing Account
Departmental Accounts
Branch Accounts
Instalment Credit
Transfer of business
Value Added Tax (VAT)
Losses of Stock and Cash
Questions
Interpretation of Accounts: The Cash Flow Statement
Introduction
Format
Statement Construction
Some Complexities of the Cash Flow Statement
Interpretation Using the Cash Flow Statement
Questions
Interpretation of Accounts:Ratio Analysis
The Need for Profit and Cash
Principles of Ratio Analysis
Classification of Accounting Ratios
Return on Capital Employed (ROCE)
Profit Ratios
Solvency Ratios
Asset Turnover Ratios
Relationship between Accounting Ratios
Gearing (or Leverage)
Cash Flow Statement Ratios
Limitations of Accounting Ratios
Linking together Cash Flow Analysis and Ratio Analysis
Questions
Decision-Making
Introduction
Cost Behaviour
Total Costing and Overhead Recovery Rates
Investment Appraisal
Forecast Results
Questions
Standard Costing and Budgetary Control
Introduction
Budgetary Control
Preparation of the Budgets
Standard Costing
Calculation of Variances
Questions