By John A. Tracy

ISBN-10: 0470246006

ISBN-13: 9780470246009

Research the fundamentals of sensible accounting simply and painlessly with Accounting For Dummies, 4th Edition, which beneficial properties new details on accounting equipment and criteria to maintain you brand new. With this consultant, you could steer clear of accounting fraud, reduce confusion, maximize gains, and make experience of accounting fundamentals with this plain-English advisor for your accountant’s language. know the way to regulate stock, file source of revenue and charges for public or inner most businesses, overview revenue margins, research company strengths and weaknesses, and deal with budgets for a greater final analysis.

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9 10 Accounting For Dummies, 4th Edition Part I Opening the Books on Accounting A In this part . . ccounting is essential in the worlds of business, investing, finance, and taxes. In this part, you find out why. Accountants are the “information gatekeepers” in the economy. Without accounting, a business couldn’t function, wouldn’t know whether it’s making a profit, and would be ignorant of its financial situation. Accounting is equally vital in managing the business affairs of not-forprofit and governmental entities.

But have you ever seen a company’s accounting department in action? Folks may not think much about these back-office activities, but they would sure notice if those activities didn’t get done. ” 19 20 Part I: Opening the Books on Accounting Typically, the accounting department is responsible for the following: ߜ Payroll: The total wages and salaries earned by every employee every pay period, which are called gross wages or gross earnings, have to be calculated. Based on detailed private information in personnel files and earnings-to-date information, the correct amounts of income tax, social security tax, and several other deductions from gross wages have to be determined.

Accountants are very good at one thing: They want to see both sides of financial transactions: the give and take. Accountants know better than anyone that, as economists are fond of saying, there’s no such thing as a free lunch. If you walked down a busy street in Chicago, New York, or Los Angeles, I doubt that you could pick out the accountants. I have no idea whether accountants have higher or lower divorce rates than others, whether they go to church more frequently, whether most are Republicans or Democrats, or if they generally sleep well at night.

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