Accounting for Non-Accountants

David Horner

• Publisher: Kogan Page
• Year: 2017
• ISBN:
  9780749480783
• Edition: 11
• Topic: Business
• Subtopic: Contabilità
• Index: Business

Accounting for Non-Accountants provides the perfect introduction to the basics of accounting and finance. Designed for non-specialists with little or no background in accounting, it guides readers through the maze of financial terms and accounting concepts and techniques in a clear and easy-to-follow style.Now in its 11th edition, Accounting for Non-Accountants includes information on the UK GAAP accounting standards as well as an overview of current international standards, and updates including a new chapter on how competition, the financial markets and government economic policy can influence organizations. The book is structured clearly to provide in-depth understanding in three key areas: annual accounts (including income statements, balance sheets, cash flow and reporting standards); management accounting (costing, marginal costing and budgetary controls); and financial management (including the cost of capital, working capital, investment appraisal and performance analysis).With updated online resources, including additional review questions for each chapter and a multiple choice question section, Accounting for Non-Accountants is ideal for beginners and provides an excellent grounding for those taking accountancy qualifications.

07

Accounting for other business organizations

Introduction

So far we have looked at the accounting records of a very simple type of business organization – that of a sole trader. The sole trader, as the name suggests, is owned and run by one person. This owner will contribute their own capital and this will probably be supplemented with forms of borrowing. The sole trader will be the sole beneficiary of any profits that are earned. However, if this business makes a loss, they would have to cover this out of business resources (with capital falling) and might have to use personal resources to cover any unpaid debts, owing to their lack of limited liability.

In addition, we have dealt with a particular type of sole trader so far – that of a trader. The main activities of the trader will be to generate profits through the buying and selling of goods. This has kept the accounting statements of the businesses we have looked at so far simple. In this chapter will consider the business which manufactures its own output by looking at manufacturing accounts. We will also briefly examine two further types of business organization – the partnership and the not-for-profit organization.

Although the areas ...

Table of contents

• Cover
• Title Page
• Copyright
• Contents
• Introduction
• 01    Financial record keeping
• 02    Income statements
• 03    The balance sheet
• 04    Further adjustments to the income statement
• 05    Checking the double-entry system
• 06    Accounting concepts
• 07    Accounting for other business organizations
• 08    An introduction to business costing
• 09    Marginal costing and decision making
• 10    Standard costing
• 11    Budgeting
• 12    Working capital management
• 13    Capital investment appraisal
• 14    An introduction to limited companies
• 15    Published accounts of the limited company
• 16    Accounting standards
• 17    Statement of cash flows
• 18    Accounting ratios
• 19    The economic environment
• Index
• Backcover