Accounting DeMYSTiFieD by Leita Hart

By Leita Hart

Accounting info and guidance you could take to the bank!

You won't comprehend the very first thing approximately debits, credit, and funds ratios now—but when you are performed with this publication, you may juggle earnings and losses along with your eyes closed and skim any stability sheet like it is a stable novel.

Accounting DeMySTiFieD, moment variation, is a curriculum-based, self-teaching advisor that makes studying accounting more straightforward than 1-2-3. With graphs, plain-English motives, and real-life examples, it starts off with the fundamentals—such as simple monetary phrases, stability sheets, and funds stream statements—and eases you into the extra advanced stuff, like adjusting entries, double access bookkeeping, revenue ratios, and liquidity.

Completely up to date and revised to hide finance phrases, theories, and top practices, Accounting DeMySTiFieD teaches you the fine details of accounting very quickly at all.

This speedy and simple consultant features:

  • A whole assessment of...

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Example text

I see cash in two categories: day-to-day cash and rainy-day cash. Rainy-day cash is sort of like your reserve in case of emergency or in case of some cool business opportunity. Some organizations may have millions, even billions of dollars of rainy-day cash. On the balance sheet, the cash balance will be enormous. This does not mean that such companies need this much money to operate on a day-to-day basis. The cash they may need working for them every day may be minimal. So, a true calculation of working capital should take out rainy-day cash and look only at the cash needed to operate on a regular basis and the resources tied up in receivables, inventory, and payables.

The cash they may need working for them every day may be minimal. So, a true calculation of working capital should take out rainy-day cash and look only at the cash needed to operate on a regular basis and the resources tied up in receivables, inventory, and payables. If day-to-day cash needs are minimal, if receivables and inventory are minimal, and if payables are maximized, then working capital will be as small as possible. A small working capital balance is one key indication of a lean, mean operation.

A cash-flow statement 4. Income statement, profit and loss statement, the P&L, and the earnings statement are all different names for which of the following statements? A. Earnings statement B. The general ledger C. Balance sheet D. Cash-flow statement 5. FASB started requiring this financial statement after the savings and loan crisis of the 1980s. A. Earnings statement B. Profit and loss statement C. Balance sheet D. Cash-flow statement 6. The three key financial statements are _____. A. unorganized lists of accounting data B.

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