Financial Accounting Essentials You Always Wanted to Know: 5th Edition

1. Accounting Systems

1.1 Financial Accounting Systems

1.2 Need for Financial Accounting Systems

1.3 Financial Statements

1.4 Purpose of Financial Statements

1.5 Financial Accounting Standards

Solved Examples

Practice Exercise

Chapter Summary

2. The Accounting Cycle

2.1 Measuring Economic Activities

2.2 Increasing and Decreasing Accounts

Solved Examples

Practice Exercises

Discussion questions

Chapter Summary

3. End of Period Accounting Cycle

3.1 Cash vs. Accrual Accounting

3.2 Accruing Revenues and Incurring Expenses

3.3 Financial Statement Reporting

Solved Examples

Practice Exercises

Discussion questions

Chapter Summary

4. Overview of Financial Statements

4.1 Balance Sheet

4.2 Income Statement

4.3 Statement of Cash Flows

4.4 Notes to the Financial Statements

4.5 Miscellaneous Accounting Concepts and Conventions Solved
Examples

Practice Exercise

Chapter Summary

5. The Balance Sheet

5.1 Current Assets

5.2 Long-term Assets

5.3 Current Liabilities

5.4 Long-term Liabilities

5.5 Stockholders’ Equity

5.6 Transaction Analysis and Balance Sheet Creation

Case Study

Solved Examples

Practice Exercise

Chapter Summary

6. The Income Statement

6.1 Measures of Income

6.2 Types of Revenues

6.3 Types of Expenses

6.4 Earnings per Share (EPS) and Diluted EPS

6.5 Revenue Recognition

6.6 Expense Recognition

6.7 Expanded Accounting Equation

6.8 Transaction Analysis and Income Statement Creation

Case Study

Solved Examples

Practice Exercise

Chapter Summary

7. The Statement of Cash Flows

7.1 Categories of Cash Flow Activities

7.2 Cash Flow Pattern

7.3 Cash Flow Statement Preparation

Case Study

Solved Examples

Practice Exercise

Chapter Summary

Glossary

Kalpesh Ashar is a management consultant and corporate trainer holding an MBA (Dean’s Award Winner) from SPJIMR, one of Asia’s top business schools, and an Engineering degree with honors in Electronics. He has over 24 years of experience in large organizations and start-ups in Asia, USA, and Europe. Kalpesh has worked in several project management roles, like Senior Project Manager, Delivery Manager, and Program Manager. He is passionate about writing on management subjects. His techno-business background gives him a unique position to write on management topics that are easy to understand for non-MBA graduates. His books are authored in a simple to understand manner without unnecessary use of management jargons.

Vibrant Publishers is focused on presenting the best texts for learning about technology and business as well as books for test preparation. Categories include programming, operating systems and other texts focused on IT. In addition, a series of books helps professionals in their own disciplines learn the business skills needed in their professional growth.

Vibrant Publishers has a standardized test preparation series covering the GMAT, GRE and SAT, providing ample study and practice material in a simple and well organized format, helping students get closer to their dream universities.

The Self-Learning Management Series is designed to help students, new managers, career switchers, and entrepreneurs learn essential management lessons and covers every aspect of business, from HR to Finance to Marketing to Operations across any and every industry. Each book includes basic fundamentals, important concepts, and standard and well-known principles as well as practical ways of application of the subject matter.

This book contains charts, graphics, tables, summary notes and examples related to each chapter and is very informative. It also contains a glossary at the end of the book for students to comprehend the subjects covered. The systematic organization of accounting principles will help students conquer financial accounting.
-- Jangho Gil, Assistant Professor of Accounting,  Monmouth University

If you are interested in learning about accounting and how to analyze a financial statement, this is a great book to start with. Accounting is an essential skill if you intend to go into business. By doing so, you are protecting yourself against unethical or bad accountants. This book has good insights and gets to the point.
-- Xihui Chen, Assistant Professor of Accounting and Finance, Heriot-Watt University

I enjoyed reading Financial Accounting Essentials and I feel that for an overview of the subject matter, this book was well-written. I liked how the book walked the readers through the concepts of accounting.
-- Dr Cheryl A Moore , Mercyhurst University, Assistant Professor of Accounting

If you've ever looked at a set of accounts and wondered what you were looking at, this is the book for you. The concepts are explained in clear language and even after half a century of involvement with accounts and accounting principles I still had a few lightbulb moments. Recommended.
-- Sue Magee for The Bookbag

1. Content is more of a refresher book rather than essential
2. lack of practical orientation
3.no cases to justify the topic
4. modern accounting terminology is missing
-- Prof. Dharini Raje Sisodia
Assistant Professor-Finance
Ph.D.(Pursuing),MBA

As an accountant, I find it interesting to read books that are geared towards non-accountants. This book was right on the money in terms of explaining various topics related to accounting. It has an easy-to-read format so that you can skim through to get to a specific topic as needed. I highly recommend this book to any non-accountant business person as it will save you time and confusion in the long run.
-- Julia Gibson
Reviewer
Net Galley

Regardless of what position you hold in the accounting profession, having a good reference text that will teach you what you need to know and get your questions answered is important. This is an excellent and easy-to-understand text about financial accounting.
-- Mike Michelsen
Freelance Writer
Media Professional
(net galley)

I felt this book would be useful for me in helping my learners understand the basics of Financial Accounting. This publication exceeds one's expectations. The language is clear and the concepts are succintly broken down for comprehension. The topics are well laid out with a natural progression from one topic to another. I recommend this book to any student or learner interested in the concepts of financial accounting.
-- Carol Elizabeth
Goodreads/ Amazon/ Twitter
Reviewer
( net galley)

I enjoyed reading Financial Accounting Essentials and I feel that for an overview of the subject matter, this book was well-written. I liked how the book walked the readers through the concepts of accounting.
-- Dr Cheryl A Moore
Mercyhurst University
Assistant Professor of Accounting

Of course, the content of this book is basic and condensed. But that is already in the title: 'essentials'.
For students and freshmen, it is a exercise book. For seasoned managers it is a book, to have at hand-reach. Of course we know it all, but we tend to forget... At such moments, a book as this one is more than helpfull.
-- ericschmitz
Librarything Reviewer

I really enjoyed reading this Book. Full of helpful facts. Guides you in the right direction. I am definitely going to read the prior editions. Its simple and easy to understand. I highly recommend this book. Accounting made easy to understand. 5 star review.
-- joselovesgod
Librarything Reviewer

Straightforward answers to questions like:

- When analyzing Financial Statement, how to conduct Ratio Analysis und Common Sizing?
- Ho to estimate Cash Flows and calculate their Net Present Values?
- What are the levers that can optimize Working Capital?
- What is the optimal Capital Structure?

Only the numerous graphically displayed balances are presented unhelpfully in the Kindle version. In print, however, the book is definitely recommended!
-- viennamax
Librarything Reviewer

'Vibrant Publishers' Accounting and Finance books are invaluable resources for students and faculty alike. They empower students to deepen their knowledge and understanding, providing a clear path to academic success.'
-- Hem Chandra Bhatt
Assistant Professor,
P. N. G. Govt. P. G. College Ramnagar

Online Resources

Instructor Resources