Financial Accounting For Dummies

Your plain-English guide to navigating a financial accounting course

With easy-to-understand explanations and real-life examples, Financial Accounting For Dummies provides you with the basic concepts, terminology, and methods to interpret, analyze, and evaluate business financial statements. Whether you're a student taking an introductory course or a business owner who needs a financial accounting initiation, this hands-on, friendly guide can help.

• Financial Accounting 101 — get acquainted with the world of financial accounting, from the responsibilities of financial accountants to the coursework, certifications, and career options available

• Book it — discover the process behind financial accounting, which starts with booking a company's accounting transactions using journal entries and ledgers

• It's a balancing act — get the lowdown on the different parts of a balance sheet (assets, liabilities, and equity) and how together they illustrate a company's financial position

• Search for profit (or loss) — navigate an income statement to study a company's revenue, expenses, gains, and losses

• Follow the cash — find out what the statement of cash flows tells you about how a business uses its money

Open the book and find:

• The purpose of financial accounting

• Ethical responsibilities of financial accountants

• What financial statements tell you about a company

• Regulatory issues and agencies you need to know

• Accounting methods and concepts

• How to investigate income and cash flow

• Different ways to analyze financial statements

• The job (and income) outlook for financial accountants

Learn to:

• Determine what each line of a financial statement tells you

• Identify the various accounting concepts and methods that companies can employ

• Recognize how investors and creditors use financial reports to make decisions