By John A., CPA Tracy
Study the fundamentals of useful accounting simply and painlessly with Accounting For Dummies, 4th variation, which gains new details on accounting tools and criteria to maintain you brand new. With this advisor, you could stay away from accounting fraud, reduce confusion, maximize earnings, and make experience of accounting fundamentals with this plain-English advisor in your accountant’s language. know the way to control stock, record source of revenue and costs for public or deepest businesses, evaluation revenue margins, research enterprise strengths and weaknesses, and deal with budgets for a greater final analysis.
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Additional info for Accounting For Dummies, 4th edition
However, this book is directed to users of accounting information. I focus on the end products of accounting, particularly financial statements, and not how information is accumulated. When buying a new car, you’re interested in the finished product, not details of the manufacturing process that produced it. Overcoming the stereotypes of accountants I recently saw a cartoon in which the young son of clowns is standing in a circus tent and is dressed as a clown, but he is holding a business briefcase.
Let me point out another reason you should know accounting basics — I call it the defensive reason. A lot of people out there in the cold, cruel financial world may take advantage of you, not necessarily by illegal means but by withholding key information and by diverting your attention from unfavorable aspects of certain financial decisions. These unscrupulous characters treat you as a lamb waiting to be fleeced. The best defense against such tactics is to know some accounting, which can help you ask the right questions and understand the financial points that con artists don’t want you to know.
From its accounting records, a business prepares its financial statements, its tax returns, and the reports to its managers. In financial reports to investors and lenders, a business must obey authoritative accounting and financial reporting standards. If not, its financial reports would be misleading and possibly fraudulent, which could have dire consequences. Bookkeeping — the record-keeping part of accounting — must be done well to ensure that the financial information of a business is timely, complete, accurate, and reliable — especially the numbers reported in its financial statements and tax returns.