Accounting: Information for Business Decisions Accounting: Information for Business Decisions

Description

Accounting Information for Business Decisions shows you how theory applies to contemporary real-world scenarios. The text leads you through the business cycle and how accounting information informs decision-making. You will learn how to base decisions on two kinds of accounting information ' managerial and financial. Follow a retail coffee business in the Cafe Revive case study to learn about applying accounting issues in the real world. Cover Half title page Title page Imprint page Brief contents Contents Guide to the text Guide to the online resources Preface About the authors Acknowledgements Chapter 1: Introduction to business accounting and the role of professional skills 1.1 Factors affecting the complexity of a changing business environment 1.2 Business enterprise categories 1.3 Business structures 1.4 The accounting system 1.5 Ethics in business and accounting 1.6 The accountant in a changing society Study tools Chapter 2: Developing a business plan: Cost–volume–profit analysis 2.1 Planning in a new business 2.2 Cost–volume–profit (CVP) planning 2.3 Using CVP analysis 2.4 Other planning issues and effects Study tools Appendix: CVP analysis for cups of coffee Chapter 3: Developing a business plan: Applied budgeting 3.1 Why budget? 3.2 Operating cycles 3.3 The budget as a framework for planning 3.4 Using the master budget in evaluating the business’s performance Study tools Chapter 4: The accounting system: Concepts and applications 4.1 Financial accounting information and decision making 4.2 Basic concepts and terms used in accounting 4.3 Components of the accounting equation 4.4 Accounting for transactions to start a business 4.5 Expanding the accounting equation 4.6 Recording daily operations 4.7 End-of-period adjustments Study tools Chapter 5: Recording, storing and reporting accounting information 5.1 Accounts 5.2 Accounting cycle 5.3 Recording (journalising) transactions 5.4 Posting from journals to the accounts 5.5 Trial balance 5.6 Preparing adjusting entries 5.7 Adjusted trial balance 5.8 Preparing the financial statements 5.9 Preparation of closing entries 5.10 Modifications for companies 5.11 Other journal entries Study tools Chapter 6: Internal control: Managing and reporting working capital 6.1 Working capital 6.2 Cash 6.3 Accounts receivable 6.4 Inventory 6.5 Accounts payable Study tools Chapter 7: The income statement: Components and applications 7.1 Why the income statement is important 7.2 Measuring financial performance: The income statement 7.3 Defining and classifying revenues/income 7.4 Defining and classifying expenses 7.5 Evaluating the income statement using ratios 7.6 Linking profit to owner’s equity and closing the accounts Study tools Appendix: Calculating the cost and the amount of inventory Chapter 8: The balance sheet: Components and applications 8.1 Why the balance sheet is important 8.2 The accounting equation and the balance sheet 8.3 Using the balance sheet figures for evaluation 8.4 Evaluating financial flexibility 8.5 Limitations of the income statement and the balance sheet 8.6 Business activity statements (BAS) Study tools Chapter 9: The cash flow statement: Components and applications 9.1 Understand the importance of the cash flow statements to organisations and users 9.2 Identify the types of transactions that generate cash inflows and outflows 9.3 The organisation of the cash flow statement 9.4 Construct cash flow statements based on the direct method 9.5 Analysis of the cash flow statement 9.6 Calculate the relevant cash flow ratios Study tools Appendix: Indirect method for reporting cash flows from operating activities Chapter 10: Sustainable and profitable business practices 10.1 Corporate social responsibility (CSR) 10.2 The triple bottom line 10.3 Triple-bottom-line accounting: Practical measures 10.4 Environmental project appraisal 10.5 Social accounting 10.6 Sustainability as a business strategy Study tools Chapter 11: Short-term planning decisions 11.1 Relevant costs and revenues 11.2 Other cost (and revenue) concepts for short-term decisions 11.3 Calculating short-term decisions 11.4 Non-financial issues in decision making Study tools Chapter 1 2: Capital expenditure decisions 12.1 Capital expenditure decisions 12.2 Making a capital expenditure decision 12.3 Net present value (NPV) method 12.4 Alternative methods for evaluating capital expenditure proposals 12.5 Selecting alternative proposals for investment Study tools Glossary Index