Table of Contents
Introduction 7
Chapter 1 The Business of Accounting 9
Who Uses Accounting Information? 10
Accounting is More than Numbers 15
Ancient Accounting 22
Modern Accounting 28
Accounting Rules 32
Generally Accepted Accounting Principles 36
Tracking and Measuring Success 43
How Accountants Can Help You 47
Chapter 2 Who's Who in Accounting 54
CPAS are Licensed 55
The AICPA 60
Bookkeeping Versus Accounting 65
Entertainment Accountants 69
Forensic Accountants 74
Anti-Money Laundering Specialists 78
CFOS Steer Corporations 82
Tax Accountants 86
Environmental Accountants 91
Choosing the Right Professional 94
Chapter 3 Setting the Framework 99
Accounting Starts with Accounts 100
How the Accounts Connect 103
Debits and Credits 107
What Counts as a Transaction 112
The Accounting Cycle 117
Accounting and Organization 124
Chapter 4 Assets, Liabilities, and Equity 129
The Accounting Equation 130
What are Assets? 133
Breaking Down Asset Categories 137
A Closer Look at Current Assets 143
The Importance of Cash 149
A Closer Look at Fixed Assets 152
Current Liabilities 158
Long-Term Liabilities 162
Equity 165
Chapter 5 Revenues, Costs, and Expenses 169
Revenues 170
Cash Versus Credit 175
The Cost-Inventory Connection 179
Expenses 185
Depreciation 192
People and Payroll 197
Earning Profits, But Out of Cash 203
Chapter 6 Financial Statements 206
The Statement of Profit and Loss 207
The Balance Sheet 212
The Statement of Cash Flows 216
What Financial Statements Tell You 220
Financial Statements Flow into Tax Returns 227
How These Statements Interconnect 230
Chapter 7 Accounting Moves Forward 234
The Big Accounting Firms 235
Scandals in the Accounting World 238
Big Changes in the Industry 242
Accounting Software 246
Accounting Apps 256
Accounting in the Cloud 260
Tomorrow's Accounting 263
Index 267
