About the author Preface Acknowledgements PrologueIntroductionPart 1: The Basics of accounting 1 The balance sheet and the fundamental principle assets, liabilities and balance sheetsSarah's 'personal' balance sheets. The balance sheet of a company. The balance sheet chart summary 2. Creating a Balance SheetProcedure for creating a balance sheetSBL's balance sheetThe different forms of balance sheetBasic concepts of accounting Summary 3. The profit & loss account and cash flow statement. The profit & loss account. The cash flow statement'Definitive' vs. 'descriptive statements Summary 4. Creating the profit & loss account and cash flow statement Creating the profit & loss account Creating the cash flow statement Summary. 5. Accounting in practice More essential concepts Setting up your software Accounting in a simple worldAccounting in the real world" Proving" your balance sheet summary Part 2: Interpretation and analysis of accounts 6. Wingate's Annual report Different types of accounts. The reports Assets Liabilities Shareholders' equity. The P&L and cash flow statement 7. Financial Analysis: an introduction. The ultimate goal. The two components of a company. The general approach to financial analysisWingate's highlights Summary8 Analysis of the enterprise. Return on capital employed. The components of ROCEWhere do we go from here? Expense ratiosCapital ratiosSummary 9. Analysis of the funding structure. The funding structure ratiosLenders' perspective GearingShare holders' perspective Liquidity Summary 10. Valuation of companies Book value vs. market value Valuation techniques Summary. Part 3: Listed company accounts11 Listed company accounts: The primary statementsTerminology and jargon Accounting standards fair value vs. historical cost Summary 12. Interpretation of Listco's accounts Intangible assets Groups of companies accounting for subsidiaries accounting for associates and joint ventures Property, plant and equipment Capital / FundingEquityDebtFinancial instrumentsForeign currencies Hedging Pensions Corporation tax share buybacks / Treasury Share-based payments Earnings per share Conclusion Glossary Appendix 1: Wingate Foods' accounts Appendix 2: Listco's accounts Index.

The bestselling and astonishingly simple guide to the fundamental principles of accounting, written specifically for those without a financial background. Simple, easily absorbed and clearly explained, this book will guide you through all the major accounting concepts. You will learn how to master company accounts, understand balance sheets, profit and loss accounts, and cash flow systems and how to analyse and monitor your company's financial performance.