By Anthony Rice
This is often the hot version of the bestselling advisor to realizing and utilizing company money owed and accounting ideas, written in a manner that even the financially frightened beginner can simply take up. Accounting is mostly considered as a hugely technical and complicated topic. even if, debts are literally in accordance with uncomplicated rules. it is not corporation money owed which are advanced, it is all too usually the best way that they're defined. during this easy and simple learn booklet, the writer courses you thru all of the significant accounting options. detect the way to grasp corporation bills, comprehend stability sheets, revenue and loss debts and funds stream platforms. learn how to examine and computer screen your company's monetary functionality. bills Demystified is the definitive, ordinary advisor to the basic ideas of accounting that no supervisor probably want to be with no. during this fifth version of the vintage debts Demystified, Anthony Rice makes accounting astonishingly uncomplicated and pain-free.
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Additional info for Accounts Demystified, Fifth Edition: The Astonishingly Simple Guide to Accounting
How would you feel about her? I’d be down to the jewellers in a flash, although I have the feeling you’re going to tell me that would be a mistake. I’m afraid so. Let me give you some more information about Sarah. Most of her money is tied up in a ‘trust’ set up for her by her wealthy grandparents. All the interest on this money is kept in the trust as well. Although Sarah is the beneficiary of the trust and therefore owns all the assets in it, she is not allowed access to them for another ten years.
Notice two things: The two bars remain the same height. Sarah, as the shareholder, has not been made richer or poorer by this transaction – she still has a claim over £10,000 worth of the company’s assets. 3 Before Sarah could start business, she needed a car to visit potential customers and deliver stock. This car cost SBL £9,000. Since Sarah paid for the car in cash, the cash box must go down by £9,000. At the same time, SBL has acquired assets worth exactly £9,000. Hence, the company’s total assets have not changed and the assets bar remains the same height.
For example: When a company stops trading, it can be very hard to persuade debtors to pay. Fixed assets may not have the same value to anyone else as they do to the company. e. that it is not about to cease trading. Let’s now recap quickly before going on to look at the P&L and cash flow statement. Summary The balance sheet shows a company’s financial position at any given moment. Every transaction a company makes will affect its financial position and must therefore be recorded on the balance sheet.
Accounts Demystified, Fifth Edition: The Astonishingly Simple Guide to Accounting by Anthony Rice