Accounting for Managers

Contents
Preface
ix
1. How to Speak Accounting
1
The Three Questions
1
Visualize to Understand
2
The Accounting System
5
Accounting from the Bottom Up
6
Double Entry
7
Bookkeeping and Accounting
12
Financial Statements
15
Accounting Principles
16
The Fundamental Equations of Accounting
18
The Advantages of an Accounting System
20
A Few Important Details
20
Manager’s Checklist for Chapter 1
24
2. Concepts and Principles, Checks and Balances
26
Closing the GAAP
28
Zen Accounting
36
Checks and Balances
37
Audits 
40
Manager’s Checklist for Chapter 244
3. Financial Statements
45
The Lemonade Stand
45
Load, Wash, Rinse, Spin, Dry
47
Past as Prologue
49
The Income Statement
50
Statement of Cash Flows
53
The Balance Sheet 
57
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A Delicate Balance: The Adjusting Entries
59
Manager’s Checklist for Chapter 3 
63
4. Financial Ratios
64
What Measures Performance?
64
Liquidity Ratios
69
Activity Ratios
70
Debt Ratios
74
Profitability Ratios
75
Putting It All Together
78
Manager’s Checklist for Chapter 4
82
5. Management Accounting
83
Management Accounting—for the Future
84
Cost/Volume/Profit Analysis
89
Manager’s Checklist for Chapter 5
101