Introduction to Accounting for Non-specialists

Introductory Accounting for Non-Specialists is aimed at a single-semester module in accounting and finance. The text provides a first-level look at financial and managerial accounting and basic finance for non-specialist students. The approach is to achieve a balance between the technical aspects and underlying concepts. The book is aimed at users of accounting information. Students (as future users of accounting information) need to understand the basic ideas and assumptions that lie behind the numbers. The book is pedagogically well developed and includes learning objectives, tasks, examples, case studies, diagrams, summaries, review questions and exam questions. Answers are provided to the majority of the review and exam questions at the back of the book.

Table of Contents:
1 Introduction Definitions. Accounting as a study. Initial ideas about accounting and values. 2 Accounting in context ? focus on the product Products and product costs. Cost behaviour. CVP analysis. Prices and costs. 3 Using accounting for managers? decisions Decisions and information. Relevant cash flows and opportunity costs. Contribution and ranking decisions. Product viability. Allocation of fixed costs. Uncertainty in decision-making. Goals and decisions. 4 The quadrant ? a framework for accounting reports Financial views of the business. The quadrant. Balance sheets and profit & loss accounts introduced. 5 The financial reporting framework ? the rules of the game Users of accounting statements. The concepts which underpin accounting reports. 6 A deeper understanding of financial statements A closer look at profit calculations. Cost of goods sold and stock values. Cash-based expenses and adjustments. Depreciation. 7 Published accounts ? a broader perspective The content and regulation of published accounting reports. Self-regulation in the profession. 8 Cash flow Cash flow cycles. Cash flow statements. 9 The interpretation of accounting statements Evaluation of accounting statements. Ratio analysis. Profitability, liquidity, gearing and investment ratios. Working capital management and the costs of cash. 10 Accounting for the future ? financial planning through budgets Financial predictions. Budget statements. The budget process. Master budgets and detailed budget statements. Value and limitations of budgets. 11 Capital investment appraisal Internal rate of return. Accounting rate of return. Net present value and the time value of money 12 The accounting profession ? some current concerns Professional groups and ethical guidelines. Issues of self-regulation. The Cadbury Report. Whistleblowing. Inflation accounting. Concerns about managerial accounting. Answers to Review Questions Answers to Exam Questions Glossary