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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
£40.99

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ISBN: 9780761970378
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