Download An Introduction to Business Accounting for Managers by W. C. F. Hartley (Auth.) PDF

By W. C. F. Hartley (Auth.)

Now in its 5th variation, this publication dispels a lot of the mystique surrounding accounting and finance for the non-financial supervisor. it is going to permit the reader to speak extra successfully with monetary advisers and support to reinforce the standard of the monetary judgements that managers need to make. It contains such themes as accounting for inflation, the importance of money administration and regulate and the advance of accounting criteria, a lot of that have no longer been taken care of in any unmarried, contemporary, aggressive work.

This totally revised and up-to-date model comprises new fabric on operating capital and administration, accounting laws and traditional surroundings, and at the "newer" accounting strategies that experience lately been developed.

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Extra info for An Introduction to Business Accounting for Managers

Sample text

ACCOUNTING CONCEPTS A N D ACCOUNTING STANDARDS 37 T o repeat from page 3 5 : " H o w much are you willing to pay for this business—how badly d o you want i t ? " Balance Sheet Story A balance sheet can never tell us what a business is worth, because this simply is not the purpose of the balance sheet. W h a t then can it tell us? The story told by a balance sheet can be most interesting and illuminating; we shall be taking a closer look at a balance sheet in Chapter 11. However, before then it is necessary to discourse u p o n other matters.

In the case of a limited company this committee is known as the board of directors. Directors are elected by members in general meeting and the Articles normally provide for one-third of the board to retire annually by rotation, although retiring directors may stand for re-election. The board will elect one of their number to act as their chairman (who will thereby also be chairman of the company) and another, to take responsibility for day-to-day management of the company, who will be called the managing director.

Note that it is not the nature of the expenditure but the purpose for which it is incurred which determines whether it is capital or revenue expenditure. e. ACCOUNTING CONCEPTS A N D ACCOUNTING STANDARDS 31 a normal running expense; however, if that employee were engaged on, say, installing a brand-new central heating system to the factory, his wages will be capital expenditure. The reader will notice a similarity here to the rules of distinction between fixed and current assets; again it is the purpose for which expenditure is incurred, not the nature of the expenditure, which determines its definition.

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