Accounting What the Numbers Mean 11Th Edition by David Marshall, Wayne Mcmanus, Daniel Viele
Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. The numbers in accounting are used to communicate this financial information. This book, “Accounting What the Numbers Mean 11th Edition”, provides an introduction to the use of accounting numbers and their interpretation.
It covers basic topics such as financial statements, debits and credits, journal entries, and cash flow. In addition, it discusses more advanced topics such as ratios, inventory valuation methods, and capital budgeting.
If you’re looking for a comprehensive and easy-to-understand guide to accounting, look no further than Accounting: What the Numbers Mean, 11th Edition. This textbook covers everything from the basics of financial statements to more complex topics like managerial accounting and taxation. Written by experienced educators David Marshall, Wayne McManus, and Daniel Viele, this book will give you a strong foundation in all things accounting.
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What are the Most Important Accounting Principles
There are a number of important accounting principles which underline the way in which financial statements are prepared. These include:
1) The historical cost principle – this requires that assets and liabilities be recorded at their original purchase price.
This ensures that financial statements give a true and fair view of an entity’s financial position.
2) The accruals principle – this dictates that income and expenses should be recognised when they are earned or incurred, regardless of when they are actually paid. This is important in ensuring that all relevant information is reflected in the financial statements.
3) The matching principle – this requires that expenses should be matched with the corresponding revenue in order to give a true picture of profitability. This is particularly important in businesses with long production cycles where revenue may be received long after the costs have been incurred.
4) The prudence principle – this requires that caution should be exercised when estimating future incomes and expenditures, erring on the side of conservatism.
This ensures that financial statements do not overstate profits or underestimate future liabilities.
Conclusion
In “Accounting: What the Numbers Mean,” 11th edition, authors David Marshall, Wayne McManus and Daniel Viele provide readers with a clear and concise introduction to financial accounting. The text is designed to help readers understand how businesses use accounting information to make decisions. In addition, the authors help readers develop strong critical-thinking skills by providing real-world examples and exercises throughout the text.
