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Robert Rachlin - Accounting and Financial Fundamentals for NonFinancial Executives

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Finance and accounting are the backbone of any organization. Yet plenty of executives and businesspeople are befuddled and intimidated by number crunching. Now theres a complete, concise, non-technical guide to grasping all the essentials of accounting -- and directly applying financial data. Readers will learn how to: * pinpoint the most profitable products or sales regions * figure the rate of return from a capital investment * make internal management reports more useful * understand and prepare a statement of cash flows Its straightforward approach will appeal to all managers and executives who need a practical, comprehensible lesson in using financial analysis to set key business goals, measure results, and make smart decisions.

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title Accounting and Financial Fundamentals for Nonfinancial Executives - photo 1

title:Accounting and Financial Fundamentals for Nonfinancial Executives
author:Rachlin, Robert.; Sweeny, Allen.
publisher:AMACOM Books
isbn10 | asin:0814479286
print isbn13:9780814479285
ebook isbn13:9780585025933
language:English
subjectAccounting.
publication date:1996
lcc:HF5635.R114 1996eb
ddc:657/.024/658
subject:Accounting.
ACCOUNTING AND FINANCIAL FUNDAMENTALS FOR NONFINANCIAL EXECUTIVES
2nd Edition
Robert Rachlin & Allen Sweeny
amacom
American Management Association
New York Atlanta Boston Chicago Kansas City San Francisco Washington, D. C.
Brussels Mexico City Tokyo Toronto
This book is available at a special
discount when ordered in bulk quantities.
For information, contact Special Sales Department,
AMACOM, a division of American Management Association,
1601 Broadway, New York, NY 10019.

This publication is designed to provide accurate and authoritative
information in regard to the subject matter covered. It is sold with
the understanding that the publisher is not engaged in rendering
legal, accounting, or other professional service. If legal advice or
other expert assistance is required, the services of a competent
professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Rachlin, Robert, 1937
Accounting and financial fundamentals for nonfinancial executives
/ Robert Rachlin & Allen Sweeny.-2nd ed.
p. cm.
Rev. ed. of: Accounting fundamentals for nonfinancial executives /
Allen Sweeny. 1972.
Includes index.
ISBN 0-8144-7928-6
1. Accounting. I. Sweeny, Allen. II. Sweeny, Allen.
Accounting fundamentals for nonfinancial executives.
HF5635.R114 1996
657'024'658-dc20Picture 2Picture 3Picture 4Picture 5 95-45925
Picture 6Picture 7Picture 8Picture 9Picture 10Picture 11CIP
Portions of this book are revised versions of chapters originally published as Accounting Fundamentals for Nonfinancial Executives by Allen Sweeny.
1996 Robert Rachlin and H. W. Allen Sweeny.
1972 American Management Association, Inc.
All rights reserved. Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.
Printing number
10 9 8 7 6 5
To
Brian, Matthew, and Jeremy
and
to
Donna
Page vii
Contents
Preface
ix
1 The Dual Aspect Principle
1
2 The Accrual Concept
13
3 Other Basic Concepts
23
The Money Measurement Principle. The Business Entity Principle. The Going Concern Principle. The Cost Concept. The Realization Principle.
4 Accounting Conventions
30
The Convention of Consistency. The Convention of Conservatism. The Convention of Materiality.
5 Financial Photography: Balance Sheets and Income Statements
34
The Balance Sheet. The Income Statement. Sales.
6 Special Accounting Problems
46
Fixed Assets. Inventory Accounting. Accounts Receivable.
7 The Basic Accounting Process
64
Basic Rules of the Accounting Process. Filing Systems. Steps of the Accounting Process.
8 Manufacturing and Merchandising Cost Essentials
87
Merchandising vs. Manufacturing. Manufacturing Cost Systems.
9 Other Basic Cost Concepts and Their Applications
105
Types of Costs. Other Cost Concepts. The Contribution Concept. Other Applications of the Contribution Concept.
10 Fundamentals of Investment Analysis: Evaluating New Investments-Some Basic Considerations
119
The Payback Method. The Accounting Method.
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