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Introduction to Accounting
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Introduction to Accounting

Third Edition

Other Titles in:
Introductory Accounting

January 2002 | 560 pages | SAGE Publications Ltd
The fully revised and updated Third Edition of this textbook provides an accessible introduction to accounting for students coming to the subject for the first time. It embraces the basic techniques and underlying theoretical concepts in accounting and shows how these are applied in various circumstances.

This New Edition incorporates major changes which improve and update the previous edition. It can be easily used by students working on their own, as well as in a classroom environment.

It provides:

- Fully illustrated & worked examples

- Student Activities

- End of chapter questions, many of which have been taken from major accounting examination bodies.

-The solutions to all activities are given at the end of each chapter, and answers to the end of chapter questions are also supplied.

Introduction to Accounting is an essential textbook for undergraduate accounting students. It is designed to meet the needs of both the non-specialist and those intending to specialise in accounting at undergraduate and also postgraduate levels. The Solutions Manual will be available via the SAGE website.

 
THE FRAMEWORK OF ACCOUNTING
The Accounting Process

 
Suppliers of Accounting Information

 
Financial Accounting and Management Accounting Compared

 
External Users of Accounting Information

 
Principal Accounting Statements

 
 
THE BALANCE SHEET
The Entity Concept

 
Classification of Assets and Sources of Finance

 
The Accounting Equation: A Further Illustration

 
Raising Further Finance

 
The Investment Decision

 
Business Development

 
The Trading Cycle

 
Reporting Changes in Owner's Capital

 
Assets = Capital + Liabilities

 
Valuation of Assets

 
 
PROFIT CALCULATED AS THE INCREASE IN CAPITAL
Profitable Activity

 
Profit and Changes In Gross Assets

 
Balance Sheet Presentation: Vertical Format

 
Profits, Losses and Changes In Net Assets

 
Profit Measured By Capital Changes

 
Capital Injections and Withdrawals

 
 
THE PREPARATION OF ACCOUNTS FROM CASH OR INCOMPLETE RECORDS
Accounting Systems and Information Requirements

 
The Matching Concept

 
Gross Profit and Net Profit

 
The Problem of Periodic Profit Calculation

 
The Identification of Revenue: The Realization Concept

 
Matching Expenditure With Revenue: The Benefit Principle

 
The Preparation of Accounts From Cash Records: A Worked Example

 
Clubs and Societies

 
 
THE DOUBLE ENTRY SYSTEM I
The Inital Recording of Transactions

 
Introduction

 
Cash Flows

 
Flows Of Goods And Services

 
 
THE DOUBLE ENTRY SYSTEM II
Ledger Accounts and the Trial Balance

 
Introduction

 
The Interlocking Effect of Transactions

 
Ledger Accounts

 
Books of Prime Entry

 
Control Accounts For Debtors and Creditors

 
The Trial Balance

 
Computerized Accounting Systems

 
Advantages of Double Entry

 
 
THE DOUBLE ENTRY SYSTEM III
Periodic Accounting Reports

 
Periodic Accounts

 
Adjustments To The Trial Balance

 
Stocks (Inventories)

 
Depreciation

 
Disposal of Fixed Assets

 
Prepayments and Accruals

 
Bad Debts

 
The Adjusted Trial Balance

 
 
ASSET VALUATION, PROFIT MEASUREMENT AND THE UNDERLYING ACCOUNTING CONCEPTS
Asset Valuation and Profit Measurement

 
Tangible Fixed Assets

 
Intangible Fixed Assets

 
Stock Valuation Methods

 
Accounting Concepts

 
 
PARTNERSHIPS
Introduction

 
The Partnership Agreement

 
The Creation of A Partnership

 
The Division of Profit

 
Capital and Current Accounts

 
Changes in Membership

 
Change in Profit-Sharing Ratio

 
Dissolution of Partnerships

 
 
COMPANY ACCOUNTS
Formation of Registered Companies

 
The Annual Report

 
Other Sources of Information

 
Share Capital

 
Share Premium Account

 
Share Forfeiture

 
The Rights Issue

 
Loan Capital and Debentures

 
The Appropriation Account

 
Revaluation Reserve

 
Redemption of Debentures

 
Bonus (Capitalization, Scrip) Issue of Shares

 
Reporting Financial Performance (FRS 3)

 
Groups of Companies

 
Goodwill and Intangible Assets (FRS 10)

 
Research and Development (SSAP 13)

 
Limitations of Company Accounts

 
 
INTERPRETATION OF ACCOUNTS
The Cash Flow Statement

 
Introduction

 
Format

 
Statement Construction

 
Some Complexities of The Cash Flow Statement

 
Interpretation using The Cash Flow Statement

 
 
INTERPRETATION OF ACCOUNTS
Ratio Analysis

 
The Need for Profit and Cash

 
Principles of Ratio Analysis

 
Classification of Accounting Ratios

 
Return on Capital Employed

 
Profit Ratios

 
Solvency Ratios

 
Asset Turnover Ratios

 
Relationship Between Accounting Ratios

 
Gearing (or Leverage)

 
Cash Flow Statement Ratios

 
Limitations of Accounting Ratios

 
Linking Together Cash Flow Analysis and Ratio Analysis

 
 
DECISION-MAKING
Introduction

 
Cost Behaviour

 
Total Costing and Overhead Recovery Rates

 
Investment Appraisal

 
Forecast Results

 
 
STANDARD COSTING AND BUDGETARY CONTROL
Introduction

 
Budgetary Control

 
Preparation of Budgets

 
Standard Costing

 
Calculation of Variances

 
 
End of chapter questions (After each chapter)
 
Solutions to activities (After each chapter)

`Introduction to Accounting has already stood the test of time, and this new and improved third edition will ensure that it remains one of the best, if not the "best ever" introductory textbooks on accounting'- Michael Sherer, University of Essex

`I think the book admirably achieves the authors' objective of providing an introduction to accounting which embraces both the basic techniques and the underlying theoretical concepts'- Accounting and Business Research

`…an excellent book which should be compulsory reading for all first year students on accounting degree courses'- Association of Banking Teachers Bulletin


Well organized and structured publication.
Uses an accessible language facilitating the understanding of theory and practice.
Integrates fundamental concepts showing a necessary caution in interpreting the results obtained.
It is useful for a diverse set of users connected to the academic and professional field.
I think that will be a good reference to recommend to students of the course in question and in other related to the management, accounting and finance

Mr Francisco Ferraz
DGE - Manegement and Economic, IPL - Instituto Politécnico de Leiria
December 17, 2014

Good course content

Dr Scott Foster
Department of HRM, Liverpool John Moores University
November 26, 2013

A good introductory book perhaps for foundation level.

Dr Chahid Fourali
London Metropolitan Business School, London Metropolitan Uni (City Campus)
March 2, 2013

I have put this on the book list for students who like a resource book to look at it is well structured and clear.

Miss Ruth Bryan
NVQ, YH Training Services
May 15, 2012

no companion homepage, no slides, no exercises or other accompanying material

I called your customer support to make sure that these materials are really not existing; the person I reached promised to check this and to call me back; no further call received

Mrs Andrea Waeckerle
Business Administration, SRH Hochschule Berlin
November 8, 2011

Sample Materials & Chapters

PDF file of Chapter 1

PDF file of Solutions Manual

PDF file of Chapter 2


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ISBN: 9780761970385
£42.99

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ISBN: 9780761970378
£138.00

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