Introduction to Accounting for Finance

Contents

• Part 1: The Basics
  Fundamentals of accounting: balance sheet, income statement, credits and debits, the links between income statement and balance sheet
• Part 2: Accounting for Financial Analysis
  The accounting concepts analysts must understand about the balance sheet, income statement and cash flow statement
• Part 3: Ratio Analysis
  Using accounting skiulls in financial analysis. Ratio analysis, profitability, capital efficiency, and financial management

Features

• Links: How the different parts of the financial statements relate to each other.
• The cash flow statement demystified. Step-by-step analysis of the cash flow statement, how it's built, and how to cross-check it against the balance sheet.
• Extra exercises to reinforce the hardest concepts: credits and debits and the cash flow statement
• Account and ratio drivers
• Pull-out supplement with answers to exercises Coca-Cola's financial statements, used in many of the exercises.

Design

• Learn by doing
• Hands-on exercises reinforce each concept
• Periodic tests show you how you're doing
• A workbook, not a dry textbook
• Realistic
• Packed with real-life situations and exercises based on real companies
• Focuses on the key concepts financial analysts need to know
• Builds a strong accounting foundation

• Part 1: The basics
• Introduction
• The balance sheet
1. The parts of a balance sheet
• Assets: The resource side of the balance sheet
• The funding side of the balance sheet
• Resources must equal funding
2. Building a simple balance sheet
• Close the deal #1 
3. Divisions within a balance sheet
• Close the deal #2
4. Introducing Ben and Jerry's
• Close the deal #3
• The income statement
1. Overview
2. Revenue
3. Expenses
4. Journal entries on the income statement
• Close the deal #4
• Links
• Net income and retained earnings
• Revenue and current assets
• COGS and inventories
• Interest and the balance sheet
• Checkout test
• Part 2: Accounting for financial analysts
• About Part 2
• The balance sheet
1. Current assets
• Cash and cash equivalents
• Account receivable
• Inventories
• Prepaid expenses
• Prepaid expenses and the income statement
• Other current assets
2. Current liabilities
• Accounts payable
• Accrued expenses
• Accrued expenses and the income statement
3. Working capital
• Operating working capital
• Close the deal #5
4. Debt
• Short-term debt
• Long-term debt
5. Tangible long-term assets
• Fixed assets (PP&E)
• Depreciation
6. Intangible long-term assets
• Goodwill
• Amortization
• Other intangible assets
7. Investments: more intangibles
• Close the deal #6
8. Other long-term liabilities
9. Equity
• Common stock and APIC
• Treasury stock
• Retained earnings
• Other equity accounts
• Close the deal #7
• Income statement review
1. Revenue, COGS and SG&A
• Cost of goods sold (COGS) recap
• SG&A recap
• Interest income and interest expense
• Other income statement accounts
• Earnings before interest and taxes (EBIT)
2. Taxes
• Deferred tax liability
• Deferred tax asset
• Close the deal #8
• The cash flow statement
• Cash from operating activities
• Cash from investing activities
• Cash from financing activities
• Close the deal #9
• Checkout test
• Part 3: Ratio analysis
1. Introduction to ratios
2. Profitability
3. Capital efficiency
4. Financial Management
• Close the deal #10
• Billion dollar deal: Tests and summarizes everything you've learned
• Appendices
• Appendix A: Debits and credits
• Appendix B: Cash flow statement
• Coca-Cola's annual report
• Answers

This is an effective introduction to accounting for finance managers. It lives up to its title, and adds some practical tips as well (even if some of them are dubious from a legal perspective). Also part of Financial Business Box.