Accounting for Non-Accountants, 2E: The Fast and Easy Way to by Wayne Label

By Wayne Label

A brief, Compact, and Easy-to comprehend source for Non-Accountants Accounting for Non-Accountants is the must-have advisor for we all who've by no means taken an accounting type, are mystified by way of accounting jargon, and feature no clue approximately stability sheets, source of revenue statements, or statements of money flows. no matter if you personal a company, plan on beginning one, or simply are looking to regulate your personal resources, you will discover every thing you must be aware of: how one can arrange and use monetary statements tips to deal with budgets the right way to care for audits and auditors the way to keep watch over funds flows find out how to use accounting ratios to interpret monetary statements For marketers or somebody who must rush up on accounting speedy, this booklet could have you up and working very quickly. "A convinced must-have for any enterprise owner!" —Julie A. Aydlott, CFE, writer of the fast advisor to Small enterprise Budgeting "A sensible choice for an individual who's discovering accounting tough to understand." —Dr. Richard A. Samuelson, emeritus professor of accounting, San Diego kingdom collage  

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60,000 Total Assets . . $60,000 . Liabilities: . . . . . $60,000 Total Liabilities and Owner’s Equity. . $60,000 On the Balance Sheet the cash and Owner’s Investment are increased by $60,000. , Assets = Liabilities + Owner’s Equity. Sam Purchases Land, a Building, and a Truck (Long-Term Assets) Next, on January 1, the bicycle company buys a piece of land with a building and a truck in order to operate her business. The land has a value of $10,000, the building’s value is $25,000, and the truck that will be used for pick-ups and deliveries is $8,000.

A truck used to deliver the bicycles to customers 9. Money in the personal bank account of the owner 10. M  oney paid in advance for a three-year insurance policy on the business See page 41 for answers. Short-Term Assets Assets are normally subdivided on the Balance Sheet into two categories. The first is called Short-Term Assets (or Current Assets). These items will be used or converted into cash within a period of one year or less. Long-Term Assets Long-Term Assets (also called Non-Current Assets) are not expected to be converted to cash or totally “used up” in a year or less.

25,500 Accounts Payable . . $3,000 Inventory . . . . 13,000 Current Portion of Mortgage Payable . . 1,000 Prepaid Insurance . . 1,500 Total Short-Term Assets . . . . . $40,000 Long-term: Mortgage Payable . 19,000 Total Liabilities . . $23,000 Long-Term Assets: Owner’s Equity: Truck . . . . . . $8,000 Owner’s Investment $60,000 Building . . . . . 25,000 Land . . . . . . 10,000 Total Long-Term Assets . . . . . $43,000 Total Assets . . . $83,000 Total Liabilities and Owner’s Equity .

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