Chapter 14
Look at the Books
In This Chapter
• How accounting ledgers work
• Accounting for inventory
• Calculating depreciation on plant and equipment
Where do financial statements come from? What goes on behind the scenes? What does a bookkeeper do? What decisions go into accounting for various assets, liabilities, and expenses? How do these decisions affect the company’s finances?
This chapter answers these questions. It also improves your understanding of financial statements and business. And it prepares you to set up an accounting system for your company or department, or help you understand the one that’s already in place.
The Major Ledgers
When you hear someone refer to “the books,” it means the company’s journals or ledgers or “the ...
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