Familiarise yourself with essential accounting and finance principles for business decision-making, and connect your learning with relevant examples from real world businesses
Accounting and Finance for Non-Specialists 12th Edition by Peter Atrill and Eddie McLaney is a highly accessible introduction to the subject. It equips you with a solid foundation in the principles and practice of accounting and finance, thereby laying the groundwork necessary to make successful business decisions in your future career.
Covering financial accounting, management accounting and financial management in a single text, you will discover what the major financial statements contain and why they are useful. You will also gain an appreciation of the key roles that accounting and finance play in business decision-making. This easy-to-follow textbook examines widely-used accounting techniques, considers important international financial standards and contains a range of relevant, real-world examples, many of which are new to this edition. Activities and exercises frequently appear throughout the book and provide opportunities to engage with the issues raised. Instructors, pair this text with MyLab Accounting MyLab™ is the teaching and learning platform that allows instructors to reach every student with powerful self-study material and assessments. By combining trusted author content with digital tools and a flexible platform, MyLab personalises the learning experience and improves results for each student.
If you would like to purchase both the physical text and MyLab Accounting search for: 9781292334745 Accounting and Finance for Non-Specialists 12th Edition with MyLab Accounting Package consists of: - 9781292334691 Accounting and Finance for Non-Specialists 12th Edition
- 9781292334707 Accounting and Finance for Non-Specialists 12th Edition MyLab Accounting
- 9781292334684 Accounting and Finance for Non-Specialists 12th Edition Pearson eText
Pearson, the world’s learning company.
NOTE: Before purchasing, check with your instructor to confirm the correct ISBN. Several versions of the MyLab™ platform exist for each title, and registrations are not transferable. To register for and use MyLab Accounting, you may also need a Course ID, which your instructor will provide.
Used books, rentals, and purchases made outside of Pearson: If purchasing or renting from companies other than Pearson, the access codes for the MyLab platform may not be included, may be incorrect, or may be previously redeemed. Check with the seller before completing your purchase.
Author(s): Peter Atrill, Eddie McLaney
Edition: 12
Publisher: Pearson
Year: 2021
Language: English
Pages: 527
City: Harlow
Front Cover
Half Title
Tilte Page
Copyright Page
Brief contents
Contents
Preface
1 Introduction to accounting and finance
Introduction
What are accounting and finance?
Who are the users of accounting information?
Providing a service
Weighing up the costs and benefits
Accounting as an information system
Management accounting and financial accounting
Scope of this book
The changing face of accounting
Accounting for ethics
Why do I need to know anything about accounting and finance?
The quest for wealth creation
Meeting the needs of other stakeholders
Wealth creation over the long term
Balancing risk and return
Summary
Key terms
References
Further reading
Critical review questions
Part One FINANCIAL ACCOUNTING
2 Measuring and reporting financial position
Introduction
The major financial statements – an overview
The statement of financial position
The effect of trading transactions
Classifying assets
Classifying claims
Statement layouts
Capturing a moment in time
The role of accounting conventions
Money measurement
Valuing assets
Meeting user needs
Summary
Key terms
Reference
Further reading
Critical review questions
Exercises
3 Measuring and reporting financial performance
Introduction
The income statement
Different roles
Income statement layout
Further issues
Recognising revenue
Recognising expenses
Depreciation
Costing inventories
Trade receivables problems
Uses and usefulness of the income statement
Summary
Key terms
Further reading
Critical review questions
Exercises
4 Accounting for limited companies
Introduction
The main features of limited companies
The role of the Stock Exchange
Managing a company
The UK Corporate Governance Code
Financing limited companies
Borrowings
Withdrawing equity
The main financial statements
Dividends
Additional financial statements
The directors' duty to account
The need for accounting rules
Sources of accounting rules
The auditors' role
Management commentary
Creative accounting
Summary
Key terms
Further reading
Critical review questions
Exercises
5 Measuring and reporting cash flows
Introduction
Why is cash so important?
The statement of cash flows and its relation to the other financial statements
The relationship between the financial statements
The main features of the statement of cash flows
A definition of cash and cash equivalents
The layout of the statement of cash flows
The normal direction of cash flows
Preparing the statement of cash flows
What does the statement of cash flows tell us?
Summary
Key terms
Further reading
Critical review questions
Exercises
6 Analysing and interpreting financial statements
Introduction
Financial ratios
Financial ratio classifications
The need for comparison
Calculating the ratios
A brief overview
Profitability
Efficiency
Relationship between profitability and efficiency
Liquidity
Financial gearing
Investment ratios
Trend analysis
Using ratios to predict financial failure
Limitations of ratio analysis
Summary
Key terms
Further reading
Critical review questions
Exercises
Part Two MANAGEMENT ACCOUNTING
7 The relevance and behaviour of costs
Introduction
What is meant by 'cost'?
Relevant costs: opportunity and outlay costs
Cost behaviour
Fixed cost
Variable cost
Semi-fixed (semi-variable) cost
Finding the break-even point
Contribution
Margin of safety
Operating gearing and its effect on operating profit
Weaknesses of break-even analysis
Using contribution to make decisions: marginal analysis
Summary
Key terms
Further reading
Critical review questions
Exercises
8 Full costing
Introduction
What is full costing?
Why do managers want to know the full cost?
Single-product businesses
Multi-product businesses
Overheads as service renderers
Activity-based costing
Using full (absorption) cost information
Summary
Key terms
Further reading
Critical review questions
Exercises
9 Budgeting
Introduction
How budgets link with strategic plans and objectives
Time horizon of plans and budgets
How budgets help managers
Budgets and forecasts
Limiting factors
How budgets link to one another
Using budgets in practice
Preparing budgets
Non-financial measures in budgeting
Budgeting for control
Measuring variances from budget
Making budgetary control effective
Behavioural issues
The use of variance analysis
Summary
Key terms
Further reading
Critical review questions
Exercises
Part Three FINANCE
10 Making capital investment decisions
Introduction
The nature of investment decisions
Investment appraisal methods
Accounting rate of return (ARR)
Payback period (PP)
Net present value (NPV)
Why NPV is better
Internal rate of return (IRR)
Some practical points
Investment appraisal in practice
Investment appraisal and strategic planning
Summary
Key terms
Reference
Further reading
Critical review questions
Exercises
11 Financing a business
Introduction
The main objective of financing policy
Sources of finance
Internal sources of finance
Internal sources of long-term finance
Internal sources of short-term finance
External sources of finance
External sources of long-term finance
Forms of borrowing
External sources of short-term finance
Long-term versus short-term borrowing
Gearing and the financing decision
Raising long-term finance
Share issues
The role of the Stock Exchange
The Alternative Investment Market
Providing long-term finance for the small business
Islamic finance
Summary
Keyterms
References
Further reading
Critical review questions
Exercises
12 Managing working capital
Introduction
What is working capital?
The scale of working capital
Managing inventories
Managing trade receivables
Managing cash
Managing trade payables
Managing working capital
Summary
Key terms
Further reading
Critical review questions
Exercises
Appendix A: Glossary of key terms
Appendix B: Solutions to self-assessment questions
Appendix C: Solutions to critical review questions
Appendix D: Solutions to selected exercises
Appendix E: Present value table
Index
Acknowledgments
Back Cover
