Best Selling Basic Accounting Book: Accounting Made Simple

Perhaps you meet with accountants regularly or very occasionally when you needed a financial report, solving your tax issues. You place your requirements and may want the feedback immediately but you may not have the idea about their work load. Fact is they are busy to fulfill your requirements and they work year round.

Accountants help to to business people how to conceive the goals, how to make plan to achieve them and what would be their actions.

However, to do their work accountants also needed some books that may enhance their idea, help to produce a quality reports. We would like to list here some books that are considered as the amazon best selling books.

Accounting Made Simple – By Mike Piper,CPA

“Accounting Made Simple” is Written by Mike Piper, a Certified Public Accountant (CPA). As a Certified Accountant, he knew how to write a book that may help to the students as well as the accounts professionals of the company. The presentation of this book is very simple to understand.

Accounting Made Simple has two parts consisting of 14 chapters. This book is very practically presented that may help to the accounting background and non-accounting background people.

Below are the list of Contents that may help you to decide to collect this books:

PART – 01 : Financial Statements

Chapter Ref.Contents

1. Accounting EquationAlways true, no exception
Owners’ is just a plug
My asset is your liability
2. Balance SheetIt’s a snapshot
Assets
Liabilities
Equity
Current Assets and Liabilities Vs.
Long-term Assets and Liabilities
Two Period Balance Sheet
3. Income StatementShows period of time rather than point in time
Gross Profit & Cost of Goods sold
Operating Income vs net income
4. Statement of Retained EarningsBridge between financial statements
Dividends are not an expenses!
Retained earnings : not the same as cash
5. Cash Flow StatementAs opposed to income statement
Cash flow from operating activities
cash flow from investing activities
Cash flow from financing activities
6. Financial RatiosLiquidity Ratios
Profitability Ratios
Financial Leverage Ratios
Asset Turnover Ratios

PART – 2: Generally Accepted Accounting Principles (GAAP)

7. What is GAAP?Who has to follow GAAP?
8. Debits & CreditsDouble entry system
The General Ledger
T-Accounts
The Trial Balance
9. Cash vs AccrualCash Method
Accrual Method
Prepaid Expenses
Unearned Revenue
10. The Accounting Closing ProcessClosing Journal Entries
11. Other GAAP Concepts & AssumptionsHistorical Cost
Materiality
Money Unit Assumption
Entity Assumption
Matching Principle
12. Depreciation of Fixed AssetsStraight Line Depreciation
Accumulated Depreciation
Salvage Value
Gain or loss on sale
Other Depreciation Methods
Expenses immaterial purchases
13. Amortization of Intangible AssetsWhat are intangible assets
Straight Line Amortization
Legal Life vs Expected useful life
14. Inventory & COGSPerpetual Method
Period Method
Calculating Cost of Goods Sold
FIFO vs. LIFO
Average Cost Method