Short introduction to accounting

Cover -- Short Introduction to Accounting -- Short Introduction to Accounting -- Title -- Copyright -- Contents -- Figures -- Tables -- Introduction -- Accounting: a subject widely important yet not widely understood -- Why is accounting important? -- Financial decision making -- Performance measurement -- 'Language of business' -- Why is accounting perceived to be a difficult subject? -- Financial statements are not particularly customer-oriented -- Accountants are preparers, not users -- Accounts need context -- A unique way of thinking -- All data are connected -- Accounting is subjective -- Accounting is incomplete -- Accounts provide high-level summaries -- The approach in this book -- Part I -- Cash flow statement -- Income statement -- Balance sheet -- Worked example: retail company -- .In summary -- 2 The need for financial information -- Does a bank statement capture economic activity? -- The cash flow statement -- Fundamental limitations of the cash flow statement -- Profit and accruals -- The balance sheet -- Linkages among the financial statements -- .In summary -- 3 Keeping track of economic activity -- Balance sheet -- Debits, credits, journal entries and the general ledger -- Worked example: consulting firm general ledger -- .In summary -- 4 Summary of the foundations of accounting -- Worked example: Production Company -- Production Company suggested solution -- Part II -- 5 The accounts as a lens on growth -- Cash flow statement -- Balance sheet -- Income statement -- .In summary -- 6 Measuring value creation -- Investment, growth and return on capital -- Evaluating the return on capital -- Economic profit -- .In summary -- 7 Understanding risk -- Operating lev.erage -- Implications of operating leverage -- Operating leverage: some caveats -- Financial leverage -- .In summary -- 8 Building a corporate valuation model.