Includes bibliographical references (page 98) and index.

Introduction : What is accounting ? -- Part 1. Financial statements : Accounting equation : Always true, no exceptions ; Owners' equity is just a plug ; My asset is your liability -- Balance sheet : It's a snapshot ; Assets ; Liabilities ; Equity ; CUrrent assets and liabilities vs. long-term assets and liabilities ; Two-period balance sheets -- Income statements : Shows period of time rather than point in time ; Gross profit and cost of goods sold ; Operating income vs. net income -- Statement of retained earnings : Bridge between financial statements ; Dividends are not an expense! ; Retained earnings: not the same as cash -- Cash flow statement : As opposed to income statement ; Cash flow from operating activities ; Cash flow from investing activities ; Cash flow from financing activities -- Financial ratios : Liquidity ratios ; Profitability ratios ; Financial leverage ratios ; Asset turnover ratios -- Part 2. Generally accepted accounting principles (GAAP) : What is GAAP? : Who has to follow GAAP? -- Debit and credits : Double-entry system ; The general ledger ; T-accounts ; The trial balance -- Cash vs. accrual : Cash method ; Accrual method ; Prepaid expenses ; Unearned revenue -- The accounting close process : Closing journal entries -- Other GAAP concepts & assumptions : Historical cost ; Materiality ; Money unit assumption ; Entity assumption ; Matching principle -- Depreciation of fixed assets : Straight-line depreciation ; Accumulated depreciation ; Salvage value ; Gain or loss on sale ; Other depreciation methods ; Expensing immaterial purchases -- Amortization of intangible assets : What are intangible assets ; Straight-line amortization ; Legal life vs. expected useful life -- Inventory & CoGS : Perpetual method ; Periodic method ; Calculating cost of goods sold ; FIFO vs. LIFO ; Average cost method -- Conclusion : The humble little journal entry.