An Introduction to Business Accounting for Managers
- 3rd Edition - January 1, 1980
- Imprint: Pergamon
- Author: W. C. F. Hartley
- Language: English
- Paperback ISBN:9 7 8 - 0 - 0 8 - 0 2 4 0 6 2 - 6
- eBook ISBN:9 7 8 - 1 - 4 8 3 1 - 3 6 6 4 - 6
An Introduction to Business Accounting for Managers, Third Edition reviews developments in the business accounting arena, including the crystallization of accounting thought on how… Read more
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Request a sales quoteAn Introduction to Business Accounting for Managers, Third Edition reviews developments in the business accounting arena, including the crystallization of accounting thought on how to deal with escalating rates of inflation, culminating in the proposals for Current Cost Accounting; the acute cash crisis, itself an offshoot of inflation, faced by many companies in the mid-1970s leading to a greater need for awareness and control of cash flow; the specter of several major company collapses and scandals leading to a growing demand for accounting standards; and the growing use of value added within accounting and reporting systems. This book is comprised of 17 chapters and begins with a discussion on the use and abuse of accounting, with emphasis on financial accounting and cost accounting, management's use of accounting, and the reliability of accounting service. The reader is then introduced to the principles of bookkeeping, marginal costing, and corporate taxation; accounting concepts and accounting standards; preparation of balance sheet and ascertainment of a company's profit or loss and financial position; and annual accounts of a limited company. A comparison of profit and cash flow is also presented, and the use of accounting as an aid to management planning and control is explained. This monograph will be a valuable resource for accountants and business and financial managers.
Preface to the Third Edition
Preface to the Second Edition
Preface to the First Edition
1 Use and Abuse of Accounting
The Profit Motive
Twin Fields of Accounting
Financial Accounting
Cost Accounting
Management's Use of Accounting
Accounting: A Service with Limitations
The Reliability of the Accounting Service
2 Development and Principles of Book-Keeping
Brief History of Accounting
Double-Entry Book-Keeping
The Account
Cash and Credit Transactions
Classification of Accounts
Books of Account
Balance on an Account
Balancing the Books
3 Ascertainment of Profit or Loss and Financial Position
Cost of Goods Sold
Relevance of Income and Expenditure
Profit and Loss Account
Capital Account
Profit Belongs to the Owner
Balance Sheet
Preparation of Balance Sheet
Balance Sheet Grouping
Fundamental Observations on the Balance Sheet
Relationship of Balance Sheet with Profit and Loss Account
Accounting Period
4 Accounting Concepts and Accounting Standards
What is Profit?
Accounting Concepts
Accounting Conventions
Capital and Revenue Expenditure
Depreciation of Fixed Assets
Methods of Depreciation
Valuation of Current Assets
Goodwill
Valuation of Goodwill
Balance Sheet Story
Scope for Opinion
Accounting Standards
5 the Limited Company
Legal Status
Memorandum and Articles of Association
Public and Private Companies
Share Capital
Classes of Share
Preference Shares
Ordinary Shares
Debentures
Board of Directors
6 Annual Accounts of a Limited Company
Treatment of Capital
Treatment of Profit
Appropriation to Reserve
Dividends
Tax Appropriation
Specimen Annual Accounts
Vertical Presentation
7 Value Added
What is Value Added?
Significance for National Economy
Significance for Productivity Measurement
Use within Incentive Schemes
Significance in Financial Reporting
Practical Problems
8 Profit vs. Cash Flow
Profit is an Opinion...
...But Cash Flow is a Fact
Profit vs. Cash
Measurement of Cash Flow
Cash Flow from Operations
Statement of Source and Application of Funds
9 Impact of Inflation on Accounting Information
Impact of Inflation on Profit
Impact of Inflation on Cash Flow
Rate of Inflation
Inflation and Financial Performance
Monetary Items
History of Accounting for Inflation
Current Cost Accounting (CCA)
Where are We Now?
10 Published Financial Information
Legal Requirements
Other Pressures
The Corporate Report
The Published Report and Accounts Booklet
Consolidated Accounts
Consolidated Accounts with Minority Interests
Presentation of Financial Information to Employees
11 Interpretation of Annual Accounts
First Principles
Points of View
Non-Financial Considerations
What to Look for
Principles of Profitability Analysis
Profitability Ratios
Liquidity Ratios
Overtrading
Sources and Uses of Funds
Capital Structure
Dividend Ratios
Share Valuation
Bonus Shares (Scrip Issue)
Desirable Ratios
Typical Products Ltd. Review
12 Structured Use of Financial Ratios
Interrelationship between Ratios
Pyramid Presentation
Variations on the Theme
Shareholder Satisfaction
Diagnosis; Planning; Control
13 Principles of Absorption Cost Accounting
Deficiency of Annual Accounts
Profit on a Job
Direct Expense
Indirect Expense
Analysis of Overhead
Absorption of Production Overhead
Cost Rates
Production Overhead Allocation
Cost of Production
Absorption of Administration Overhead
Absorption Of Selling Overhead
Absorption of Distribution Overhead
Total Absorbed Cost
14 Principles of Marginal Costing
Accurate Cost?
Accurate Profit?
Under-Absorption of Overhead
Reconciliation of Profit
Fixed and Variable Expenses
Significance of Volume
The Argument for Marginal Costing
Use of Marginal Costing
Dangers of Marginal Costing
Benefits of Costing
15 Accounting as an Aid to Management Planning and Control
Need for Planning and Control
Budgeting
Co-ordination of Budgets
Sequence of Short-term Budgets
The Master Budget
Budgetary Control
Effective Control
Project Planning
Break-Even Analysis
The Break-Even Chart
Some Other Techniques
Exclusiveness of Accounting Information
16 Data Processing
History of Data Processing Machines
Adding-Calculating Machines
Keyboard Accounting Machines
Receipt Analysis Machines
Punched-Card Equipment
Computers
What to Mechanize
Related Developments
Why Mechanize?
Dangers of Mechanization
17 Principles of Corporate Taxation
Tax Legislation
Administration
Corporation Tax
Assessable Profits
Capital Allowances
Stock Appreciation Relief
Tax Losses
Payment of Corporation Tax
Advance Corporation Tax (ACT)
Deferred Taxation
Taxation and Management Decisions
Conclusion
Appendix A Summary of Provisions of Companies Acts 1948 and 1981 re Disclosure in Published Accounts of Limited Companies
Appendix B Extracts from the Published Accounts Booklet of Typical Products Ltd
Appendix C Extracts from the Published Accounts Booklet of John Waddington Ltd. for the Year Ended 2nd April 1978
Index
- Edition: 3
- Published: January 1, 1980
- No. of pages (eBook): 236
- Imprint: Pergamon
- Language: English
- Paperback ISBN: 9780080240626
- eBook ISBN: 9781483136646
WH
W. C. F. Hartley
Affiliations and expertise
Financial Training Consultant, Ilkley, UKRead An Introduction to Business Accounting for Managers on ScienceDirect