{"product_id":"crash-course-in-accounting-and-financial-statement-analysis-isbn-9780470047019","title":"Crash Course in Accounting and Financial Statement Analysis","description":"Seamlessly bridging academic accounting with real-life applications, \u003ci\u003eCrash Course in Accounting and Financial Statement Analysis, Second Edition\u003c\/i\u003e is the perfect guide to a complete understanding of accounting and financial statement analysis for those with no prior accounting background and those who seek a refresher. \u003cp\u003eAbout the Authors viii\u003c\/p\u003e \u003cp\u003ePreface x\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Accounting 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Accounting? 1\u003c\/p\u003e \u003cp\u003eWhy Is Accounting Important? 2\u003c\/p\u003e \u003cp\u003eMaking Corporate Decisions 2\u003c\/p\u003e \u003cp\u003eMaking Investment Decisions 2\u003c\/p\u003e \u003cp\u003eAccounting Facilitates Corporate and Investment Decisions 2\u003c\/p\u003e \u003cp\u003eWho Uses Accounting? 2\u003c\/p\u003e \u003cp\u003eU.S. Accounting Regulations 2\u003c\/p\u003e \u003cp\u003eGenerally Accepted Accounting Principles 2\u003c\/p\u003e \u003cp\u003eOverview of the Securities and Exchange Commission 3\u003c\/p\u003e \u003cp\u003eOverview of the Financial Accounting Standards Board 4\u003c\/p\u003e \u003cp\u003eInternational Accounting Regulations 4\u003c\/p\u003e \u003cp\u003eConvergence of U.S. GAAP and IFRS 6\u003c\/p\u003e \u003cp\u003eSummary 6\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Basic Accounting Principles 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAssumptions 11\u003c\/p\u003e \u003cp\u003eAssumption 1: Accounting Entity 12\u003c\/p\u003e \u003cp\u003eAssumption 2: Going Concern 13\u003c\/p\u003e \u003cp\u003eAssumption 3: Measurement and Units of Measure 13\u003c\/p\u003e \u003cp\u003eAssumption 4: Periodicity 14\u003c\/p\u003e \u003cp\u003eWrap-up: Assumptions 15\u003c\/p\u003e \u003cp\u003ePrinciples 18\u003c\/p\u003e \u003cp\u003ePrinciple 1: Historical Cost 18\u003c\/p\u003e \u003cp\u003ePrinciples 2 and 3: Accrual Basis 18\u003c\/p\u003e \u003cp\u003ePrinciple 4: Full Disclosure 21\u003c\/p\u003e \u003cp\u003eWrap-up: Principles 21\u003c\/p\u003e \u003cp\u003eConstraints 24\u003c\/p\u003e \u003cp\u003eConstraint 1: Estimates and Judgments 24\u003c\/p\u003e \u003cp\u003eConstraint 2: Materiality 24\u003c\/p\u003e \u003cp\u003eConstraint 3: Consistency 24\u003c\/p\u003e \u003cp\u003eConstraint 4: Conservatism 24\u003c\/p\u003e \u003cp\u003eSummary 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Financial Reporting 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Reporting Overview 29\u003c\/p\u003e \u003cp\u003eFinding Financial Reports 30\u003c\/p\u003e \u003cp\u003eForm 10-K (Annual Filing) 30\u003c\/p\u003e \u003cp\u003eWhy Is the 10-K Important? 30\u003c\/p\u003e \u003cp\u003eForm 10-Q (Quarterly Filing) 30\u003c\/p\u003e \u003cp\u003eOther Important Filings 31\u003c\/p\u003e \u003cp\u003eForm 8-K 31\u003c\/p\u003e \u003cp\u003eForm S-1 31\u003c\/p\u003e \u003cp\u003eForm 14A 31\u003c\/p\u003e \u003cp\u003eForm 20-F 31\u003c\/p\u003e \u003cp\u003eSummary 32\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Reading the Annual Report 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 35\u003c\/p\u003e \u003cp\u003eLetter to Stockholders 36\u003c\/p\u003e \u003cp\u003eFinancial Highlights 38\u003c\/p\u003e \u003cp\u003eManagement’s Discussion and Analysis 38\u003c\/p\u003e \u003cp\u003eFinancial Statements 40\u003c\/p\u003e \u003cp\u003eIncome Statement 40\u003c\/p\u003e \u003cp\u003eBalance Sheet 41\u003c\/p\u003e \u003cp\u003eCash Flow Statement 41\u003c\/p\u003e \u003cp\u003eNotes to Consolidated Statements 41\u003c\/p\u003e \u003cp\u003eReport of Management’s Responsibilities 43\u003c\/p\u003e \u003cp\u003eCertification of Financial Statements 46\u003c\/p\u003e \u003cp\u003eRisk Factors 48\u003c\/p\u003e \u003cp\u003eLegal Proceedings 48\u003c\/p\u003e \u003cp\u003eReport of Independent Auditors 49\u003c\/p\u003e \u003cp\u003eDirectors and Officers 52\u003c\/p\u003e \u003cp\u003eSummary 54\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Income Statement 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is the Income Statement? 55\u003c\/p\u003e \u003cp\u003eWhy Is It Important? 57\u003c\/p\u003e \u003cp\u003eRevenues 57\u003c\/p\u003e \u003cp\u003eNot All Income Is Revenue 58\u003c\/p\u003e \u003cp\u003eBad Debt Expense 61\u003c\/p\u003e \u003cp\u003eWhat Is Bad Debt Expense? 61\u003c\/p\u003e \u003cp\u003eRevenue Recognition: To Recognize and When? 61\u003c\/p\u003e \u003cp\u003eRevenue Recognition: Long-Term Projects 62\u003c\/p\u003e \u003cp\u003eExpense Recognition and Accrual Basis of Accounting 65\u003c\/p\u003e \u003cp\u003eBasic Principles Revisited: Accrual Basis of Accounting and Matching Principle 65\u003c\/p\u003e \u003cp\u003ePutting It All Together: The Accrual Basis of Accounting 65\u003c\/p\u003e \u003cp\u003eWhy Use Accrual Accounting? 65\u003c\/p\u003e \u003cp\u003eAccrual versus Cash Accounting: What’s the Difference? 66\u003c\/p\u003e \u003cp\u003eRevenue Manipulation 67\u003c\/p\u003e \u003cp\u003eCost of Goods Sold 70\u003c\/p\u003e \u003cp\u003eCOGS Do Not Include Administrative Costs 70\u003c\/p\u003e \u003cp\u003eGross Profit 73\u003c\/p\u003e \u003cp\u003eSelling, General and Administrative 75\u003c\/p\u003e \u003cp\u003eResearch and Development 77\u003c\/p\u003e \u003cp\u003eStock Options Expense 77\u003c\/p\u003e \u003cp\u003eDepreciation Expense 80\u003c\/p\u003e \u003cp\u003eDepreciation Is a “Phantom” Noncash Expense 82\u003c\/p\u003e \u003cp\u003eStraight-Line Depreciation Method 83\u003c\/p\u003e \u003cp\u003eAccelerated Depreciation Methods 86\u003c\/p\u003e \u003cp\u003eDepreciation Methods Compared 92\u003c\/p\u003e \u003cp\u003eAmortization 92\u003c\/p\u003e \u003cp\u003eAmortization Is a “Noncash” Expense (Like Depreciation) 93\u003c\/p\u003e \u003cp\u003eWhat Is the Difference between Depreciation and Amortization? 93\u003c\/p\u003e \u003cp\u003eSummary 96\u003c\/p\u003e \u003cp\u003eGoodwill 96\u003c\/p\u003e \u003cp\u003eGoodwill Not Amortized after 2001 96\u003c\/p\u003e \u003cp\u003eInterest Expense 97\u003c\/p\u003e \u003cp\u003eInterest Income 99\u003c\/p\u003e \u003cp\u003eOther Nonoperating Income 99\u003c\/p\u003e \u003cp\u003eIncome Tax Expense 99\u003c\/p\u003e \u003cp\u003eEquity Income in Affiliates 100\u003c\/p\u003e \u003cp\u003eMinority Interest 102\u003c\/p\u003e \u003cp\u003eNet Income 104\u003c\/p\u003e \u003cp\u003eShares Outstanding 104\u003c\/p\u003e \u003cp\u003eRepresentation of Shares Outstanding in the Income Statement 104\u003c\/p\u003e \u003cp\u003eCommon Dividends 108\u003c\/p\u003e \u003cp\u003ePreferred Dividends 108\u003c\/p\u003e \u003cp\u003eEarnings per Share 108\u003c\/p\u003e \u003cp\u003eNonrecurring Items 110\u003c\/p\u003e \u003cp\u003eUnusual or Infrequent Items 110\u003c\/p\u003e \u003cp\u003eDiscontinued Operations 112\u003c\/p\u003e \u003cp\u003eExtraordinary Items 113\u003c\/p\u003e \u003cp\u003eAccounting Changes 114\u003c\/p\u003e \u003cp\u003eEarnings before Interest, Taxes, Depreciation, and Amortization 117\u003c\/p\u003e \u003cp\u003eEBITDA: Popular Measure of a Company’s Financial Performance 118\u003c\/p\u003e \u003cp\u003eEBITDA Has Several Shortcomings 119\u003c\/p\u003e \u003cp\u003eEBIT 122\u003c\/p\u003e \u003cp\u003eSummary 123\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Balance Sheet 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 129\u003c\/p\u003e \u003cp\u003eAssets Represent the Company’s Resources 131\u003c\/p\u003e \u003cp\u003eLiabilities and Shareholders’ Equity Represent the Company’s Sources of Funds (i.e., How It Pays for Assets) 134\u003c\/p\u003e \u003cp\u003eLemonade Stand and the Accounting Equation 137\u003c\/p\u003e \u003cp\u003eBalance Sheet 137\u003c\/p\u003e \u003cp\u003eDouble-Entry Accounting 138\u003c\/p\u003e \u003cp\u003eWhy Is Double-Entry Accounting Important? 143\u003c\/p\u003e \u003cp\u003eIncome Statement Revisited: Links to Balance Sheet 143\u003c\/p\u003e \u003cp\u003eRetained Earnings: The Link Between Balance Sheet and Income Statement 144\u003c\/p\u003e \u003cp\u003eImpact of Revenues on the Balance Sheet 145\u003c\/p\u003e \u003cp\u003eImpact of COGS on the Balance Sheet 145\u003c\/p\u003e \u003cp\u003eImpact of SG\u0026amp;A on the Balance Sheet 146\u003c\/p\u003e \u003cp\u003eImpact of Depreciation on the Balance Sheet 146\u003c\/p\u003e \u003cp\u003eImpact of Interest Expense on the Balance Sheet 146\u003c\/p\u003e \u003cp\u003eImpact of Tax Expense on the Balance Sheet 146\u003c\/p\u003e \u003cp\u003eTotal Impact of the Year on the Balance Sheet 147\u003c\/p\u003e \u003cp\u003eSummary 148\u003c\/p\u003e \u003cp\u003eOrder of Liquidity 149\u003c\/p\u003e \u003cp\u003eCurrent versus Noncurrent Assets 149\u003c\/p\u003e \u003cp\u003eCurrent versus Long-Term Liabilities 149\u003c\/p\u003e \u003cp\u003eAssets 153\u003c\/p\u003e \u003cp\u003eInventories 157\u003c\/p\u003e \u003cp\u003eLIFO Reserve: The Link between FIFO and LIFO Inventory Methods 164\u003c\/p\u003e \u003cp\u003eWriting Down Inventories 164\u003c\/p\u003e \u003cp\u003eDeferred Taxes 164\u003c\/p\u003e \u003cp\u003ePP\u0026amp;E, Net of Depreciation 169\u003c\/p\u003e \u003cp\u003eReconciliation of PP\u0026amp;E 170\u003c\/p\u003e \u003cp\u003eFixed Asset Impairments 175\u003c\/p\u003e \u003cp\u003eFixed Asset Retirement and Disposal 176\u003c\/p\u003e \u003cp\u003eIntercompany Investments 177\u003c\/p\u003e \u003cp\u003eConsolidation 179\u003c\/p\u003e \u003cp\u003eIntangible Assets 179\u003c\/p\u003e \u003cp\u003eGoodwill 181\u003c\/p\u003e \u003cp\u003eSummary: Intangible Assets and Goodwill 184\u003c\/p\u003e \u003cp\u003eSummary: Assets 186\u003c\/p\u003e \u003cp\u003eLiabilities 190\u003c\/p\u003e \u003cp\u003eOther Typical Current Liabilities 192\u003c\/p\u003e \u003cp\u003eDebt 193\u003c\/p\u003e \u003cp\u003eShort-Term Debt versus Long-Term Debt 193\u003c\/p\u003e \u003cp\u003eCapital Leases 194\u003c\/p\u003e \u003cp\u003eOperating Leases 194\u003c\/p\u003e \u003cp\u003eDeferred Taxes 195\u003c\/p\u003e \u003cp\u003eSummary: Deferred Taxes 197\u003c\/p\u003e \u003cp\u003ePensions 198\u003c\/p\u003e \u003cp\u003eDefined Benefit Plan 202\u003c\/p\u003e \u003cp\u003eMinority Interest 205\u003c\/p\u003e \u003cp\u003eSummary: Liabilities 209\u003c\/p\u003e \u003cp\u003eShareholders’ Equity 212\u003c\/p\u003e \u003cp\u003eIntroduction 213\u003c\/p\u003e \u003cp\u003eCommon Stock 214\u003c\/p\u003e \u003cp\u003eAdditional Paid-In Capital 214\u003c\/p\u003e \u003cp\u003ePreferred Stock 215\u003c\/p\u003e \u003cp\u003eTreasury Stock 216\u003c\/p\u003e \u003cp\u003eRetained Earnings 217\u003c\/p\u003e \u003cp\u003eSummary: Shareholders’ Equity 219\u003c\/p\u003e \u003cp\u003eSummary 222\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Cash Flow Statement 223\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 223\u003c\/p\u003e \u003cp\u003eCash Flow Statement to the Rescue! 225\u003c\/p\u003e \u003cp\u003eCash Flow from Operations 228\u003c\/p\u003e \u003cp\u003eOverview 228\u003c\/p\u003e \u003cp\u003eIndirect Method 228\u003c\/p\u003e \u003cp\u003eGetting from Net Income to Cost from Operations 229\u003c\/p\u003e \u003cp\u003eDepreciation 231\u003c\/p\u003e \u003cp\u003eWorking Capital 233\u003c\/p\u003e \u003cp\u003eChanges in Accounts Receivable 235\u003c\/p\u003e \u003cp\u003eChanges in Accounts Receivable and the Lemonade Stand 235\u003c\/p\u003e \u003cp\u003eChanges in Inventories 236\u003c\/p\u003e \u003cp\u003eChanges in Inventories and the Lemonade Stand 237\u003c\/p\u003e \u003cp\u003eChanges in Accounts Payable 239\u003c\/p\u003e \u003cp\u003eAccounts Payable and the Lemonade Stand 239\u003c\/p\u003e \u003cp\u003eChanges in Other Current Assets 240\u003c\/p\u003e \u003cp\u003eChanges in Other Current Liabilities 241\u003c\/p\u003e \u003cp\u003eIncreases\/Decreases in Deferred Taxes 241\u003c\/p\u003e \u003cp\u003eSummary: Cash Flow from Operations 244\u003c\/p\u003e \u003cp\u003eCash Flow from Investing Activities 247\u003c\/p\u003e \u003cp\u003eOverview 247\u003c\/p\u003e \u003cp\u003eComponents 247\u003c\/p\u003e \u003cp\u003eCash Flow from Financing Activities 251\u003c\/p\u003e \u003cp\u003eOverview 251\u003c\/p\u003e \u003cp\u003eComponents 251\u003c\/p\u003e \u003cp\u003eHow the Cash Flow Is Linked to the Balance Sheet 255\u003c\/p\u003e \u003cp\u003eSummary 256\u003c\/p\u003e \u003cp\u003eOnline Exercise 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Financial Ratio Analysis 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 259\u003c\/p\u003e \u003cp\u003eWhat Is Financial Ratio Analysis? 259\u003c\/p\u003e \u003cp\u003eLiquidity Ratios 260\u003c\/p\u003e \u003cp\u003eCurrent Ratio 260\u003c\/p\u003e \u003cp\u003eQuick (Acid) Test 260\u003c\/p\u003e \u003cp\u003eCurrent Cash Debt Coverage Ratio 261\u003c\/p\u003e \u003cp\u003eProfitability Ratios 261\u003c\/p\u003e \u003cp\u003eGross Profit Margin 261\u003c\/p\u003e \u003cp\u003eProfit Margin on Sales 261\u003c\/p\u003e \u003cp\u003eReturn on Assets 262\u003c\/p\u003e \u003cp\u003eReturn on Equity 262\u003c\/p\u003e \u003cp\u003eEarnings per Share 262\u003c\/p\u003e \u003cp\u003ePrice-to-Earnings Ratio 262\u003c\/p\u003e \u003cp\u003ePayout Ratio 262\u003c\/p\u003e \u003cp\u003eActivity Ratios 262\u003c\/p\u003e \u003cp\u003eReceivables Turnover 263\u003c\/p\u003e \u003cp\u003eDays Sales Outstanding 263\u003c\/p\u003e \u003cp\u003eInventory Turnover 263\u003c\/p\u003e \u003cp\u003eDays Sales of Inventory 263\u003c\/p\u003e \u003cp\u003eAsset Turnover 263\u003c\/p\u003e \u003cp\u003eCoverage Ratios 263\u003c\/p\u003e \u003cp\u003eDebt to Total Assets 264\u003c\/p\u003e \u003cp\u003eTimes Interest Earned 264\u003c\/p\u003e \u003cp\u003eCash Debt Coverage Ratio 264\u003c\/p\u003e \u003cp\u003eCalculations 265\u003c\/p\u003e \u003cp\u003eAppendix 267\u003c\/p\u003e \u003cp\u003eStock Options 267\u003c\/p\u003e \u003cp\u003eStock Options Expensing 268\u003c\/p\u003e \u003cp\u003eThen 268\u003c\/p\u003e \u003cp\u003e. . . and Now 269\u003c\/p\u003e \u003cp\u003eDebt 270\u003c\/p\u003e \u003cp\u003eHow Are These Two Forms of Capital Raised? 270\u003c\/p\u003e \u003cp\u003eWho Issues Debt? 270\u003c\/p\u003e \u003cp\u003eLong-Term Debt 271\u003c\/p\u003e \u003cp\u003eCapital versus Operating Leases 272\u003c\/p\u003e \u003cp\u003eDirect Method 272\u003c\/p\u003e \u003cp\u003eIndex 275\u003c\/p\u003e \"I commend this book to you. It is filled with good examples, interesting information, and timely and informative mini-problems that help to coach you through the arcane subject of accounting, in an easy-to-understand way.\" (\u003ci\u003eGraziadio Business Report,\u003c\/i\u003e May 2007)   \u003cp\u003e\u003cb\u003eMATAN FELDMAN\u003c\/b\u003e is founder and CEO of Wall Street Prep, a provider of step-by-step self-study courses and customized university and corporate training seminars in financial accounting, corporate finance, financial modeling, valuation modeling, and M\u0026amp;A modeling. Before Wall Street Prep, he worked as an equity research associate at JPMorgan Chase \u0026amp; Co. and as a financial analyst in the M\u0026amp;A group at Chase Manhattan Bank. He received an MA in economics with honors from Boston University. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eARKADY LIBMAN\u003c\/b\u003e is the Managing Director of Wall Street Prep. Before Wall Street Prep, he worked as an equity research associate at Friedman, Billings, Ramsey \u0026amp; Co., Inc., and as an investment banking analyst at JPMorgan Chase \u0026amp; Co. He completed coursework at the London School of Economics and graduated with honors from Bowdoin College with a BA in economics.     \u003c\/p\u003e\u003cp\u003e\u003cb\u003eA true crash course in accounting— finally available outside of corporate training programs\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eSeamlessly bridging academic accounting with real-life applications, \u003ci\u003eCrash Course in Accounting and Financial Statement Analysis, Second Edition\u003c\/i\u003e is the perfect guide to a complete understanding of accounting and financial statement analysis for those with no prior accounting background \u003ci\u003eand\u003c\/i\u003e those who seek a refresher. \u003c\/p\u003e\u003cp\u003eWritten by accomplished investment bankers in a clear and easy-to-follow style, the \u003ci\u003eSecond Edition\u003c\/i\u003e is filled with case studies, exercises, practical applications, and real-world examples that test and reinforce concepts. \u003c\/p\u003e\u003cp\u003eWith new examples, an expansion of IFRS\/GAAP discussion, and more exercises, the \u003ci\u003eSecond Edition\u003c\/i\u003e equips novices with the necessary tools to put basic accounting and financial statement analysis skills to immediate use in their careers. \u003c\/p\u003e\u003cp\u003eEstablished by investment bankers, \u003cb\u003eWALL STREET PREP\u003c\/b\u003e is a global full-service financial training firm, providing self-study programs as well as instructor-led training and e-learning services to investment banks, financial institutions, Fortune 1000 companies, and academic institutions.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989000110309,"sku":"NP9780470047019","price":32.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470047019.jpg?v=1761782378","url":"https:\/\/k12savings.com\/es\/products\/crash-course-in-accounting-and-financial-statement-analysis-isbn-9780470047019","provider":"K12savings","version":"1.0","type":"link"}