دانلود کتاب Accounting For Canadians For Dummies

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Title Page
Copyright Page
Table of Contents
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1 Opening the Books on Accounting
Chapter 1 Accounting in Today’s Economy
Knowing That Accounting Is Not Just for Accountants
Affecting both insiders and outsiders
Overcoming the stereotypes of accountants
Relating accounting to your personal financial life
Looking for Accounting in All the Right Places
Understanding Accounting’s Two Primary Roles
Taking a Peek Behind the Scenes
Focusing on Transactions
Separating basic types of transactions
Knowing who’s on the other side of transactions
Recording events
Taking the Pulse of a Business: Financial Statements
Meeting the balance sheet (statement of financial position)
Reporting profit and loss, and cash flows
Recognizing management’s role
Chapter 2 Introducing Financial Statements
Setting the Stage for Financial Statements
Understanding the income statement
Presenting the components of the income statement
Income statement pointers
Figuring out the balance sheet
Presenting the components of the balance sheet
Balance sheet pointers
Checking out the statement of cash flows
Presenting the components of the statement of cash flows
Statement of cash flows pointers
Digging into the statement of changes in shareholders’ equity
Gleaning Key Information from Financial Statements
How’s profit performance?
Is there enough cash?
Can you trust the financial statement numbers?
Why no (or limited) cash distribution from profit?
Complying with Accounting and Financial Reporting Standards
Recognizing Canadian and international standards
Getting to know the Canadian, U.S., and international standard setters
Going worldwide
Noting a divide between public and private companies
Following (and bending) the rules
Chapter 3 Bookkeeping and Accounting Systems
Separating the Duties of Bookkeepers and Accountants
Pedalling Through the Bookkeeping Cycle
Getting to the end of the period
Finishing up for the period
Managing the Bookkeeping and Accounting System
Categorize your financial information: The chart of accounts
Standardize source document forms and data-entry procedures
Hire competent, trained personnel
Complete the process with end-of-period procedures
Leave good audit trails
Look out for unusual events and developments
Design truly useful reports for managers
Enforce strong internal controls
Double-Entry Accounting
Juggling the Books to Conceal Embezzlement and Fraud
Chapter 4 Accounting in the Digital Age
Noting a Few Foundational Accounting Concepts Related to Technology
Using Accounting Software in the Cloud and on the Ground
Controlling and Protecting Money Flows in the Electronic Age
Processing payroll
Controlling bank accounts
Surveying bank forms of electronic payments
Checking out non-bank forms of electronic payments
Using enhanced accounting controls
Managing the Accounting Function in the On-Demand World
Source documentation
Data rooms
Financial reporting
Flash reports and KPIs
Accounting and financial analysis tools
Chapter 5 Deciding the Legal Structure for a Business
Recognizing the Legal Roots of Business Entities
Studying the Sources of Business Capital
Tapping two sources of owners’ equity
Leveraging equity capital with debt
Incorporating a Business
Issuing shares
Offering different classes of shares
Determining the market value of shares
Keeping alert for dilution of share value
Recognizing conflicts between shareholders and managers
Creating a Partnership
Going It Alone: Sole Proprietorships
Choosing the Best Structure for Income Tax
Part 2 Exploring Financial Statements
Chapter 6 Reporting Profit or Loss in the Income Statement
Presenting a Typical Income Statement
Looking at businesses that sell products
Looking at businesses that sell services
Taking Care of Housekeeping Details
Knowing Your Job: Asking Questions!
Deconstructing Profit
Revenue and expense effects on assets and liabilities
Folding profit into retained earnings
Pinpointing the Assets and Liabilities Used to Record Revenue and Expenses
Making sales: Accounts receivable and deferred revenue
Selling products: Inventory
Prepaying operating costs: Prepaid expenses
Understanding fixed assets: Depreciation expense
Figuring unpaid expenses: Accounts payable, accrued expenses payable, and income taxes payable
Reporting Gains and Losses
Unusual gains and losses
Discontinued operations
Statement of Retained Earnings
Closing Comments
Chapter 7 Reporting Financial Condition on the Balance Sheet
Expanding the Accounting Equation
Presenting a Proper Balance Sheet
Doing an initial reading of the balance sheet
Kicking balance sheets out into the real world
Internal balance sheets
External balance sheets
Judging liquidity and solvency
Current assets and liabilities
Current and quick ratio
Understanding That Transactions Drive the Balance Sheet
Sizing Up Assets and Liabilities
Sales revenue and accounts receivable
Cost of goods sold expense and inventory
Fixed assets and depreciation expense
Operating expenses and their balance sheet accounts
Intangible assets, goodwill, and amortization expense
Debt and interest expense
Income tax expense and income tax payable
Net income and cash dividends (if any)
Financing a Business: Sources of Cash and Capital
Recognizing the Hodgepodge of Values Reported in a Balance Sheet
Chapter 8 Reporting Cash Flows
Meeting the Statement of Cash Flows
Presenting the direct method
Opting for the indirect method
Explaining the Variance between Cash Flow and Net Income
Accounts receivable change
Inventory change
Prepaid expenses change
Depreciation: Real but non-cash expense
Changes in operating liabilities
Putting the cash flow pieces together
Sailing Through the Rest of the Statement of Cash Flows
Understanding investing activities
Looking at financing activities
Being an Active Reader
Trying to Pin Down Free Cash Flow
Chapter 9 Choosing Accounting Methods
Reporting Changes in Shareholders’ Equity
Recognizing Reasons for Accounting Differences
Looking at a More Conservative Version of the Company’s Income Statement
Presenting an alternative income statement
Spotting significant differences
Explaining the Differences
Accounts receivable and sales revenue
Inventory and cost of goods sold expense
Fixed assets and depreciation expense
Accrued expenses payable, income tax payable, and expenses
Wrapping things up
Calculating Cost of Goods Sold Expense and Inventory Cost
The FIFO (first-in, first-out) method
The average cost method
The specific identification method
Recording Inventory Losses under the Lower of Cost and Net Realizable Value (LC&NRV) Rule
Appreciating Depreciation Methods
Scanning the Revenue and Expense Horizon
Part 3 Understanding Financial Reports, Financial Statements, and Financial Information
Chapter 10 Producing Financial Reports
Quickly Reviewing the Theory of Financial Reporting
Starting with financial statements
Keeping in mind the reasons for financial reports
Recognizing Management’s Role
Keeping Current with Financial Accounting and Reporting Standards
Making Sure Disclosure Is Adequate
Notes: Nettlesome but needed
Other disclosures in financial reports
Putting a Spin on the Numbers (Short of Cooking the Books)
Window dressing: Pumping up ending cash balance and cash flow
Smoothing the rough edges off year-to-year profit fluctuations
The pressure on public companies
Compensatory effects
Management discretion in the timing of revenue and expenses
Comparing Public and Private Companies
Reports from publicly owned companies
Reports from private businesses
Dealing with Information Overload
Browsing based on your interests
Recognizing condensed versions
Using other sources of business information
Chapter 11 Deciphering a Financial Report
Knowing the Rules of the Game
Making Savvy Investment Choices
Managing investments alone or using a third party
Finding and understanding information sources
Contrasting Reading Financial Reports of Private Versus Public Businesses
Understanding the Role of MDORs and MD&As
Frolicking through the Notes
Checking Out the Auditor’s Report
Why audits?
What’s in an auditor’s report?
Discovering fraud, or not
Chapter 12 Analyzing Financial Information with Ratios
Understanding the Importance of Using Ratios to Digest Financial Statements
Improving Your Knowledge of Financial Language
Starting with Sample Company Financial Statements
Benchmark Financial Ratios: Financial Strength and Solvency
Current ratio
Net working capital
Acid test ratio (aka quick ratio)
Debt-to-equity ratio
Debt-to-tangible net equity
Benchmark Financial Ratios: Financial Performance
Return on sales (ROS)
Return on equity (ROE)
Return on assets (ROA)
Earnings per share (EPS), basic and fully diluted
Price/earnings (P/E) ratio
Debt service coverage ratio
Making Time for Additional Ratios (If Needed)
Chapter 13 Generating Internal Financial Information for Management Use
Building on the Foundation of External Financial Statements
Seeking out problems and opportunities
Avoiding information overload
Distinguishing Internal and External Financial Statements
Format
Detail
Confidentiality
Timeliness
Completeness
Gathering Financial Position Information
Cash
Accounts receivable
Inventory
Fixed assets less accumulated depreciation
Intangible assets
Accounts payable
Accrued expenses payable
Income tax payable
Interest-bearing debt
Owners’ equity
Culling Profit Information
Presenting an income statement for managers
Calculating cash flow on the back of an envelope
Managing operating cash flows
Scrutinizing sales revenue and expenses
Avoiding Rookie Mistakes
Chapter 14 Applying Tricks and Treats to Engineer Financial Results
Knowing What Financial Engineering Is Not
Defining What Financial Engineering Is
Identifying Commonly Used “Tricks of the Trade” outside the realm of GAAP
EBITDA and addbacks
Sales revenue recognition
Pro forma operating results
Manufacturing Imaginary Profits (and, Yes, Losses)
Reviewing examples of “manufacturing” profits
Keeping critical points in mind
Looking Out for Particular Trends and Terminology
Part 4 Leveraging Accounting in Managing a Business
Chapter 15 Analyzing Profit
Helping Managers: The Fourth Pillar of Accounting
Branching out in the field of management accounting
Following the organizational structure
Centering on profit centres
Internal Profit Reporting
Designing internal profit (P&L) reports
Reporting operating expenses
Reporting operating expenses on object of expenditure basis
Separating operating expenses further on their behaviour basis
Looking at Strategic Profit Analysis
Presenting a profit analysis template
Separating variable and fixed expenses
Variable expenses
Fixed expenses
Stopping at operating earnings
Focusing on margin — the catalyst of profit
Using the template to explain profit
Taking a Closer Look at the Lines in the Profit Template
Sales revenue
Cost of goods sold
Variable operating expenses
Fixed expenses
Using the Profit Template for Decision-Making Analysis
Tucking Away Some Valuable Lessons
Recognize the leverage effect caused by fixed operating expenses
Don’t underestimate the effect of small changes in sales price
Know your options for improving profit
Chapter 16 Accounting for Costs
Looking Down the Road to the Destination of Costs
Are Costs Really That Important?
Becoming More Familiar with Costs
Direct versus indirect costs
Fixed versus variable costs
Relevant versus irrelevant costs
Actual, projected, and standard costs
Product versus period costs
Assembling the Product Cost of Manufacturers
Minding manufacturing costs
Classifying costs properly
Calculating product cost
Examining fixed manufacturing costs and production capacity
The burden rate
Idle capacity
The effects of increasing inventory
Puffing Profit by Excessive Production
Shifting fixed manufacturing costs to the future
Cranking up production output
Being careful when production output is out of kilter with sales volume
Chapter 17 Preparing Forecasts, Projections, and Budgets
Focusing on Key Forecasting Concepts
Putting Forecasting in Its Place
Planning reasons for forecasting
Control reasons for forecasting
Exploring Forecasting
Initial forecasting for a new business
Initial forecasting for an existing business
Gathering reliable data
Involving key team members
Ensuring consistency and completeness
Considering timing and presentation
Projections as financial models
Increasing the Power of Your Forecasts
Using the SWOT
Checking top down or bottom up
Exploring “what if”?
Rolling forecasts
Seeing a Financial Forecast in Action
The income statement
The balance sheet
The statement of cash flows
Revisiting the Value of Forecasts
Part 5 The Part of Tens
Chapter 18 Ten Tips for Managers
Reach Breakeven and Then Rake in Profit
Set Sales Prices Right
Don’t Confuse Profit and Cash Flow
Call the Shots on Accounting Policies
Prepare Accurate Forecasts and Projections
Demand the Accounting Information You Want
Tap into Your CPA’s Expertise
Critically Review Your Controls over Employee Dishonesty and Fraud
Lend a Hand in Preparing Your Financial Reports
Speak about Your Financial Statements as a Pro
Chapter 19 Ten Tips for Reading a Financial Report
Get in the Right Frame of Mind
Decide What to Read
Improve Your Accounting Savvy
Judge Profit Performance
Test Earnings per Share (EPS) Against Change in the Bottom Line
Tackle Unusual Gains and Losses
Check Cash Flow from Profit
Look for Signs of Financial Distress
Recognize the Possibility of Restatement and Fraud
Remember the Limits of Financial Reports
Index
EULA