Principles of Financial Accounting (3e)

The breadth and depth of coverage means Principles of Financial Accounting is suitable for undergraduate, postgraduate and HND/C students taking an introductory course or module in financial accounting.

Principles of Financial Accounting

provides a comprehensive grounding in the main techniques and underlying concepts involved in the preparation and analysis of accounting statements and their application to various forms of business organisation.

Reorganised into a new structure which reflects modern accounting thinking, the new edition of Principles of Financial Accounting encourages students to interact with the material presented and places an even greater emphasis on interpreting and analysing accounting statements. Written for students with the aim of helping them understand the principles of financial accounting, this book develops ideas progressively, step by step, in an exceptionally clear style, and is extensively illustrated through comprehensive worked examples and self check questions.

How to use this text
The nature of accounting
PART 1 PREPARING FINANCIAL STATEMENTS – THE BASICS
The accounting equation: balance sheets and profit and loss accounts
The extended accounting equation: debits and credits
Accounting systems and financial statements: the basics
Accrual accounting
Fixed assets and depreciation
Bad and doubtful debts and control accounts
Cost of goods sold
Preparation of financial statements
PART 2 PREPARATION OF FINANCIAL STATEMENTS
Partnership accounts
Limited company accounts
Consolidated accounts: an introduction
PART 3 SPECIAL TOPICS IN ACCOUNTING
Incomplete records
Accounts of clubs, societies and associations
Branch accounts
Computerised accounting
Auditing: an introduction
PART 4 ANALYSING AND UNDERSTANDING FINANCIAL STATEMENTS
Limitations of the conventional accounting model
Financial reporting in countries other than the uk
Cash flow statements
Analysis of financial statements 1
Analysis of financial statements 2
APPENDICES
Further reading
Glossary
Solutions to checkpoint questions
Solutions to selected exercises
Index

• Greater emphasis on the analysis, interpretation and understanding of financial statements.
• Greater prominence given to the limitations of the accounting model.
• Expanded coverage of accrual accounting.
• New chapter summarising the preparation of financial statements.
• New chapter on computerised accounting,
• Expanded coverage of the accounts of charities
• New chapter on auditing, including the audit effects of computerised accounting.
• New section on the recognition of profit.
• Additional, updated material on the sources of regulation
• New Section on partnership accounts, consolidated accounts and limited companies.
• New material on Limited Liability Partnerships Act 2000

• Open, easy to read style
• Balances a practical and relevant approach with a sound theoretical foundation.
• Checkpoint questions throughout the book allow the reader to check understanding.
• End-of-chapter review questions and exercises are provided.
• Definitions are included for each key term with a glossary for easy reference.