Accounting For Dummies, 4th edition by John A., CPA Tracy

By John A., CPA Tracy

Study the fundamentals of useful accounting simply and painlessly with Accounting For Dummies, 4th version, which positive aspects new info on accounting tools and criteria to maintain you modern. With this advisor, you could keep away from accounting fraud, reduce confusion, maximize earnings, and make feel of accounting fundamentals with this plain-English advisor on your accountant’s language. know the way to control stock, document source of revenue and charges for public or inner most businesses, evaluation revenue margins, examine enterprise strengths and weaknesses, and deal with budgets for a greater base line.

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The increase is added to the cash balance at the start of the year to get the cash balance at the end of the year, which is $1 million. I should make one point clear here: The $150,000 increase in cash during the year (in this example) is never referred to as a cash flow bottom line, or any such thing. The term “bottom line” is strictly reserved for the last line of the income statement, which reports net income — the final profit after all expenses are deducted. I could tell you that the statement of cash flows is relatively straightforward and easy to understand, but that would be a lie.

We are not privy to the day-to-day details of a business or organization. We have to rely on financial reports from the entity to know what’s going on. Therefore, we need to have a good grip on the financial statements included in the financial reports. For all practical purposes, financial reports are the only source of financial information we get directly from a business or other organization. By the way, the employees of a business — even though they obviously have a stake in the success of the business — do not necessarily receive its financial reports.

For example, I have a CPA certificate in Colorado, but I’m on inactive status because I have retired and do not offer my services to the public. 27 28 Part I: Opening the Books on Accounting To become a CPA, you go to college, graduate with an accounting major in a five-year program (in most states), and pass the national, computer-based CPA exam. You also must satisfy professional employment experience; this requirement varies from state to state but generally is one or two years. After satisfying the education, exam, and experience requirements, you get a CPA certificate to hang on your wall.

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