Mastering Financial Accounting Essentials

Mastering Financial Accounting Essentials is a text for people who need to use accounting information in their everyday jobs. They need to be able to understand the language and the law in order to talk to accountants and clients in an intellectual manner. Part One of the book uses an extended scenario to present the basics of financial accounting. McCrary creates a new business from scratch. By the end of the scenario (and the end of Part 1), readers will have reinvented double-entry book keeping. Along the way, readers can delve as deeply as they wish to learn more about inventory valuation methods (for example, LIFO verse FIFO) and the timing of erosion of the productive assets (for example, straight line depreciation verses double declining balance). As before, McCrary will emphasize a general understanding of the process and the reports. Part Two will use financial statements. Using the extended scenario above, McCrary shows how internal managers calculate ratios and trends to evaluate business efficiency. McCrary shows how bankers will review the statements to determine solvency.