Accounting and Finance: An Introduction

Höfundar: Eddie McLaney; Peter Atrill (Útgáfa: 12)
Accounting and Finance: An Introduction

Kaup valmöguleikar

“A contemporary, user-friendly textbook that stands out for its practical coverage of complex topics and its accessible, step-by-step format – allowing students of specialised and non-specialised courses to understand the essence of each topic. The chapters contain special 'Real World' sections, useful examples and exercises, and excerpts from real companies' annual reports and financial statements.

The book integrates the use of AI and critical review questions. A valuable resource for teaching and learning. ” Professor Nadia Gulko, PFHEA, University of Lincoln, UK Gain a complete grounding in Accounting and Finance and develop the skills to work with financial information in the business environment. Accounting and Finance: An Introduction, 12th edition by Eddie McLaney and Peter Atrill is the ideal introduction to the subject, providing you with the knowledge you need to make informed, successful business decisions.

This bestselling book is for students taking finance or accounting related modules on undergraduate and MBA courses, covering Financial Accounting, Management Accounting, and Financial Management in one text. With its approachable style and easy-to-understand language, this edition helps you learn to use financial information step by step as you work through the chapters, explaining both the theory and practice of accounting and finance.

Pair this text with MyLab Accounting MyLab Accounting is the teaching and learning resource available to support this title. It combines trusted author content with quizzes and assessments, and support for self-study. The MyLab for this book includes adaptive learning content for every chapter and over 1800 auto-graded questions for students to attempt. MyLab Accounting is not included with this title.

Nánar um bókina

Útgefandi
Pearson International Content
ISBN
9781292756714
Print ISBN
9781292756752
Format
ePub
Útgáfa
12
Höfundar
Eddie McLaney; Peter Atrill
Tungumál
English
Útgefið
2026-07-06
Prent takmörkun á líftíma
100
Prent takmörkun
2
Afritunar takmörkun
2

Kaflar

  • Welcome
  • Cover
  • Half title
  • Mission statement
  • Title page
  • Copyright page
  • Preface
  • Preface
  • What we’ve updated in this edition
  • A note to lecturers and tutors
  • Chapter 1: Introduction to accounting and finance
  • Chapter 1: Introduction to accounting and finance
  • What is accounting?
  • What is accounting?
  • Who are the users of accounting information?
  • Who are the users of accounting information?
  • The conflicting interests of users
  • The conflicting interests of users
  • How useful is accounting information?
  • How useful is accounting information?
  • Evidence on the usefulness of accounting
  • Providing a service
  • Providing a service
  • Further qualities
  • Further qualities
  • Weighing up the costs and benefits
  • Weighing up the costs and benefits
  • Accounting as an information system
  • Accounting as an information system
  • Management accounting and financial accounting
  • Management accounting and financial accounting
  • The changing face of accounting
  • The changing face of accounting
  • What is finance?
  • What is finance?
  • The role of AI in accounting and finance
  • The role of AI in accounting and finance
  • Scope of this text
  • Scope of this text
  • Why do I need to know anything about accounting and finance?
  • Why do I need to know anything about accounting and finance?
  • The business environment
  • The business environment
  • Succeeding in a competitive environment
  • Succeeding in a competitive environment
  • What kinds of business ownership exist?
  • What kinds of business ownership exist?
  • Sole proprietorship
  • Partnership
  • Limited company
  • How are businesses organised?
  • How are businesses organised?
  • How are businesses managed?
  • How are businesses managed?
  • The quest for wealth creation
  • The quest for wealth creation
  • Meeting the needs of other stakeholders
  • Meeting the needs of other stakeholders
  • Wealth creation over the longer term
  • Balancing risk and return
  • Balancing risk and return
  • Accounting for ethics
  • Accounting for ethics
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Part 1: Financial accounting
  • Part 1: Financial accounting
  • Chapter 2: Measuring and reporting financial position
  • Chapter 2: Measuring and reporting financial position
  • The major financial statements – an overview
  • The major financial statements – an overview
  • The statement of financial position
  • The statement of financial position
  • Assets
  • Claims
  • The effect of trading transactions
  • The effect of trading transactions
  • Classifying assets
  • Classifying assets
  • Current assets
  • Non-current assets
  • Classifying claims
  • Classifying claims
  • Current liabilities
  • Non-current liabilities
  • Statement layouts
  • Statement layouts
  • Capturing a moment in time
  • Capturing a moment in time
  • The role of accounting conventions
  • The role of accounting conventions
  • Business entity convention
  • Historic cost convention
  • Prudence convention
  • Going concern convention
  • Dual aspect convention
  • Money measurement
  • Money measurement
  • Goodwill and brands
  • Human resources
  • Monetary stability
  • Valuing assets
  • Valuing assets
  • Non-current assets
  • Non-current assets with finite lives
  • Non-current assets with indefinite useful lives
  • Fair values
  • The impairment of non-current assets
  • Inventories
  • Meeting user needs
  • Meeting user needs
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Reference
  • Reference
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 3: Measuring and reporting financial performance
  • Chapter 3: Introduction to Measuring and reporting financial performance
  • The income statement
  • The income statement
  • Different roles
  • Different roles
  • Income statement layout
  • Income statement layout
  • Gross profit
  • Operating profit
  • Profit for the period
  • Further issues
  • Further issues
  • Cost of sales
  • Classifying expenses
  • Recognising revenue
  • Recognising revenue
  • Revenue recognition and cash receipts
  • Recognising revenue over time
  • Recognising expenses
  • Recognising expenses
  • When the expense for the period is more than the cash paid during the period
  • When the amount paid during the period is more than the full expense for the period
  • Profit, cash and accruals accounting
  • Depreciation
  • Depreciation
  • Calculating the depreciation expense
  • Depreciation method
  • Selecting a depreciation method
  • Impairment and depreciation
  • Depreciation and asset replacement
  • Depreciation and judgement
  • Costing inventories
  • Costing inventories
  • Inventories – some further issues
  • Trade receivables problems
  • Trade receivables problems
  • Doubtful debts
  • Uses and usefulness of the income statement
  • Uses and usefulness of the income statement
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 4: Accounting for limited companies (1)
  • Chapter 4: Introduction to Accounting for limited companies (1)
  • The main features of limited companies
  • The main features of limited companies
  • Perpetual life
  • Limited liability
  • Legal safeguards
  • Public and private companies
  • Taxation
  • The role of the Stock Exchange
  • Managing a company
  • Managing a company
  • Financing limited companies
  • Financing limited companies
  • The basic division
  • Share capital
  • Reserves
  • Bonus shares
  • Share capital jargon
  • Borrowings
  • Borrowings
  • Raising share capital
  • Raising share capital
  • Withdrawing equity
  • Withdrawing equity
  • The main financial statements
  • The main financial statements
  • The income statement
  • The statement of financial position
  • Accounting for groups of companies
  • Accounting for groups of companies
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 5: Accounting for limited companies (2)
  • Chapter 5: Introduction to Accounting for limited companies (2)
  • The directors’ duty to account
  • The directors’ duty to account
  • The need for accounting rules
  • The need for accounting rules
  • Sources of accounting rules
  • Sources of accounting rules
  • International Accounting Standards Board
  • Other sources of accounting rules
  • The need for a conceptual framework
  • The need for a conceptual framework
  • The IASB framework
  • The IASB framework
  • Criticisms of the framework
  • The auditors’ role
  • The auditors’ role
  • The framework of annual financial reports
  • The framework of annual financial reports
  • Presenting the financial statements
  • Presenting the financial statements
  • Fair representation
  • Statement of financial position
  • Statement of comprehensive income
  • Statement of changes in equity
  • Statement of cash flows
  • Notes
  • General points
  • Segmental financial reports
  • Segmental financial reports
  • Segmental reporting rules
  • Segmental disclosure
  • Segmental reporting problems
  • Management commentary
  • Management commentary
  • Directors’ report
  • Directors’ report
  • Criticisms of the directors’ report
  • Strategic report
  • Strategic report
  • Narrative reports and the auditors’ duty
  • Narrative reports and the auditors’ duty
  • Corporate governance
  • Corporate governance
  • Strengthening the framework of rules
  • The UK Corporate Governance Code
  • The UK Corporate Governance Code
  • Creative accounting
  • Creative accounting
  • Creative accounting methods
  • Creative accounting methods (continued)
  • Checking for creative accounting
  • Creative accounting and economic growth
  • Sustainability reporting
  • Sustainability reporting
  • The Corporate Sustainability Reporting Directive
  • International Sustainability Standards Board
  • Sustainability reports in practice
  • Is sustainability reporting worthwhile?
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 6: Measuring and reporting cash flows
  • Chapter 6: Introduction to Measuring and reporting cash flows
  • Why is cash so important?
  • Why is cash so important?
  • Why is a separate statement of cash flows needed?
  • Why is a separate statement of cash flows needed?
  • The relationship between the major financial statements
  • The relationship between the major financial statements
  • The main features of the statement of cash flows
  • The main features of the statement of cash flows
  • The layout of the statement of cash flows
  • The layout of the statement of cash flows
  • Cash flows from operating activities
  • Cash flows from investing activities
  • Cash flows from financing activities
  • Net increase or decrease in cash and cash equivalents
  • The normal direction of cash flows
  • The normal direction of cash flows
  • Preparing the statement of cash flows
  • Preparing the statement of cash flows
  • Assessing performance using cash flows from operating activities
  • Deriving the other areas of the statement of cash flows
  • Changes in liabilities from financing activities
  • Changes in liabilities from financing activities
  • What does the statement of cash flows tell us?
  • What does the statement of cash flows tell us?
  • Problems with IAS 7
  • Problems with IAS 7
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Reference
  • Reference
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 7: Analysing and interpreting financial statements
  • Chapter 7: Introduction to Analysing and interpreting financial statements
  • Financial ratios
  • Financial ratios
  • Financial ratio classifications
  • Financial ratio classifications
  • The need for comparison
  • The need for comparison
  • Past periods
  • Similar businesses
  • Planned performance
  • Calculating the ratios
  • Calculating the ratios
  • A brief overview
  • A brief overview
  • Profitability
  • Profitability
  • Return on ordinary shareholders’ funds
  • Return on capital employed
  • Operating profit margin
  • Gross profit margin
  • Efficiency
  • Efficiency
  • Average inventories turnover period
  • Average settlement period for trade receivables
  • Average settlement period for trade payables
  • Sales revenue to capital employed
  • Sales revenue per employee
  • Relationship between profitability and efficiency
  • Relationship between profitability and efficiency
  • Liquidity
  • Liquidity
  • Current ratio
  • Acid test ratio
  • Cash generated from operations to maturing obligations ratio
  • Financial gearing
  • Financial gearing
  • Gearing ratio
  • Interest cover ratio
  • Investment ratios
  • Investment ratios
  • Dividend payout ratio
  • Dividend yield ratio
  • Earnings per share
  • Cash generated from operations per share
  • Price/earnings ratio
  • Financial ratios and the problem of overtrading
  • Financial ratios and the problem of overtrading
  • Trend analysis
  • Trend analysis
  • Predicting financial failure
  • Predicting financial failure
  • Using single ratios
  • Using combinations of ratios
  • Z-score models
  • Limitations of ratio analysis
  • Limitations of ratio analysis
  • Quality of financial statements
  • Inflation
  • Over-reliance on ratios
  • The basis for comparison
  • Statement of financial position ratios
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Part 2: Management accounting
  • Part 2: Management accounting
  • Chapter 8: Making management decisions
  • Chapter 8: Introduction to Making management decisions
  • Cost–benefit analysis
  • Cost–benefit analysis
  • What is meant by ‘cost’?
  • What is meant by ‘cost’?
  • Relevant costs and benefits
  • Relevant costs and benefits
  • Opportunity costs: further issues
  • Opportunity costs: further issues
  • Irrelevant costs: sunk costs and committed costs
  • Irrelevant costs: sunk costs and committed costs
  • Sunk cost fallacy
  • Sunk cost fallacy
  • Determining the relevant cost of labour and materials
  • Determining the relevant cost of labour and materials
  • Labour
  • Materials
  • Non-measurable costs and benefits
  • Non-measurable costs and benefits
  • Risk
  • Risk
  • Sensitivity analysis
  • Strengths and weaknesses of sensitivity analysis
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 9: Cost–volume–profit analysis
  • Chapter 9: Introduction to Cost–volume–profit analysis
  • Cost behaviour
  • Cost behaviour
  • Fixed cost
  • Fixed cost
  • Variable cost
  • Variable cost
  • Semi-fixed (semi-variable) cost
  • Semi-fixed (semi-variable) cost
  • Analysing semi-fixed (semi-variable) costs
  • Finding the break-even point
  • Finding the break-even point
  • Finding the break-even point (continued)
  • Contribution
  • Contribution
  • Contribution margin ratio
  • Margin of safety
  • Margin of safety
  • Achieving a target profit
  • Achieving a target profit
  • Operating gearing and its effect on profit
  • Operating gearing and its effect on profit
  • Profit–volume charts
  • Profit–volume charts
  • The economist’s view of the break-even chart
  • The economist’s view of the break-even chart
  • The problem of breaking even
  • The problem of breaking even
  • Weaknesses of break-even analysis
  • Weaknesses of break-even analysis
  • Using contribution to make decisions: marginal analysis
  • Using contribution to make decisions: marginal analysis
  • Pricing/assessing opportunities to enter contracts
  • The most efficient use of scarce resources
  • Make-or-buy decisions
  • Are there hidden costs?
  • Closing or continuation decisions
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 10: Full costing
  • Chapter 10: Introduction to Full costing
  • What is full costing?
  • What is full costing?
  • Why do managers want to know the full cost?
  • Why do managers want to know the full cost?
  • Single-product businesses
  • Single-product businesses
  • Process-costing problems
  • Multi-product businesses
  • Multi-product businesses
  • Direct and indirect cost
  • Job costing
  • Full costing and cost behaviour
  • The problem of indirect cost
  • Overheads as service renderers
  • Overheads as service renderers
  • Job costing: a worked example
  • Selecting a basis for charging overheads
  • Segmenting the overheads
  • Dealing with overheads on a cost centre basis
  • Dealing with overheads on a cost centre basis (continued)
  • Should we allocate overhead costs?
  • Batch costing
  • Batch costing and service providers
  • Non-manufacturing overheads
  • Full (absorption) costing and estimation errors
  • Full cost (cost-plus) pricing
  • Full cost (cost-plus) pricing
  • Price makers and price takers
  • Use of cost-plus information by price takers
  • Full (absorption) costing and relevant costs
  • Full (absorption) costing versus variable costing
  • Full (absorption) costing versus variable costing
  • Which method is better?
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Reference
  • Reference
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 11: Costing and performance evaluation in a competitive environment
  • Chapter 11: Introduction to Costing and performance evaluation in a competitive environment
  • Cost determination in the changed business environment
  • Cost determination in the changed business environment
  • Costing and pricing: the new environment
  • Cost management systems
  • Cost management systems
  • The problem of overheads
  • Taking a closer look
  • Activity-based costing
  • Activity-based costing
  • Assigning overheads
  • Identifying cost drivers
  • ABC and the traditional approach compared
  • ABC and service industries
  • Evaluating benefits and costs
  • ABC in practice
  • Managing costs over the product life cycle
  • Managing costs over the product life cycle
  • Total life-cycle costing
  • Target costing
  • Kaizen costing
  • Other approaches to managing costs in a modern environment
  • Other approaches to managing costs in a modern environment
  • Benchmarking
  • Total quality management
  • Managing quality costs
  • An alternative view
  • Non-financial measures of performance
  • Non-financial measures of performance
  • The balanced scorecard
  • Measuring shareholder value
  • Measuring shareholder value
  • The quest for shareholder value
  • The need for new measures
  • Economic value added (EVA®)
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 12: Budgeting
  • Introduction to Budgeting
  • How budgets link with strategic plans and objectives
  • How budgets link with strategic plans and objectives
  • Exercising control
  • Exercising control
  • The role of managers
  • The role of managers
  • Time horizon of plans and budgets
  • Time horizon of plans and budgets
  • Budgets and forecasts
  • Budgets and forecasts
  • Periodic and continual budgets
  • Periodic and continual budgets
  • Limiting factors
  • Limiting factors
  • How budgets link to one another
  • How budgets link to one another
  • How budgets help managers
  • How budgets help managers
  • The budget-setting process
  • The budget-setting process
  • Step 5: Prepare draft budgets for all other areas
  • Revising budgets
  • Using budgets in practice
  • Using budgets in practice
  • Incremental budgeting
  • Incremental budgeting
  • Zero-base budgeting
  • Zero-base budgeting
  • Evaluating benefits and costs
  • ZBB in practice
  • Preparing budgets
  • Preparing budgets
  • The cash budget
  • Preparing other budgets
  • Activity-based budgeting
  • Activity-based budgeting
  • Evaluating benefits and costs
  • Non-financial measures in budgeting
  • Non-financial measures in budgeting
  • Budgets and management behaviour
  • Budgets and management behaviour
  • Who needs budgets?
  • Who needs budgets?
  • Beyond conventional budgeting
  • Beyond conventional budgeting
  • The future of budgeting
  • The future of budgeting
  • The increasing role of IT
  • The increasing role of IT
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 13: Accounting for control
  • Introduction to Accounting for control
  • Budgeting for control
  • Budgeting for control
  • Budgetary control and management by exception
  • Budgetary control and management by exception
  • Feedback and feedforward control
  • Feedback and feedforward control
  • Variances from budget
  • Variances from budget
  • Flexing the budget
  • Sales volume variance
  • Sales price variance
  • Materials variances
  • Labour variances
  • Fixed overhead variance
  • Reconciling the budgeted profit with the actual profit
  • Reconciling the budgeted profit with the actual profit
  • Reasons for adverse variances
  • Reasons for adverse variances
  • Variance analysis in service industries
  • Variance analysis in service industries
  • Non-operating-profit variances
  • Non-operating-profit variances
  • Investigating variances
  • Investigating variances
  • Variance analysis in practice
  • Compensating variances
  • Compensating variances
  • Standard quantities and costs
  • Standard quantities and costs
  • Setting standards
  • Setting standards
  • Who sets the standards?
  • How is information gathered?
  • What kind of standards should be used?
  • The learning-curve effect
  • Other uses for standard costing
  • Other uses for standard costing
  • Some problems
  • Some problems
  • The new business environment
  • The new business environment
  • The ingredients for effective control
  • The ingredients for effective control
  • Behavioural issues
  • Behavioural issues
  • Failing to meet the budget
  • Budgets and management autonomy
  • Types of management control
  • Types of management control
  • Direct control
  • Indirect control
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Reference
  • Reference
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Part 3: Financial management
  • Part 3: Financial management
  • Chapter 14: Making capital investment decisions
  • Introduction to Making capital investment decisions
  • The nature of investment decisions
  • The nature of investment decisions
  • Investment appraisal methods
  • Investment appraisal methods
  • Accounting rate of return (ARR)
  • Accounting rate of return (ARR)
  • ARR and ROCE
  • Problems with ARR
  • Payback period (PP)
  • Payback period (PP)
  • Problems with PP
  • Net present value (NPV)
  • Net present value (NPV)
  • Why does time matter?
  • Interest lost
  • Risk
  • Inflation
  • What should managers do?
  • Dealing with the time value of money
  • Calculating the net present value
  • Using present value tables
  • The discount rate and the cost of capital
  • Why NPV is better
  • Internal rate of return (IRR)
  • Internal rate of return (IRR)
  • Problems with IRR
  • Some practical points
  • Some practical points
  • Investment appraisal in practice
  • Investment appraisal in practice
  • Survey evidence
  • Investment appraisal and strategic planning
  • Investment appraisal and strategic planning
  • Risk and investment
  • Risk and investment
  • The investment decision-making process
  • The investment decision-making process
  • Stage 1: Determine investment funds available
  • Stage 2: Identify profitable project opportunities
  • Stage 3: Evaluate the proposed project
  • Stage 4: Approve the project
  • Stage 5: Monitor and control the project
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 15: Financing a business
  • Introduction to Financing a business
  • The main objective of financing policy
  • The main objective of financing policy
  • Sources of finance
  • Sources of finance
  • Internal sources of finance
  • Internal sources of finance
  • Internal sources of long-term finance
  • Internal sources of long-term finance
  • Internal sources of short-term finance
  • Internal sources of short-term finance
  • Tighter credit control
  • Reducing inventories levels
  • Delaying payment to trade payables
  • Some further points
  • External sources of finance
  • External sources of finance
  • External sources of long-term finance
  • External sources of long-term finance
  • Ordinary shares
  • Preference shares
  • Borrowing
  • Comparing risk/return characteristics
  • Forms of borrowing
  • Asset leasing
  • Sale-and-leaseback arrangements
  • Hire purchase
  • Securitisation
  • External sources of short-term finance
  • External sources of short-term finance
  • Bank overdrafts
  • Debt factoring
  • Invoice discounting
  • Long-term versus short-term borrowing
  • Long-term versus short-term borrowing
  • Gearing and the financing decision
  • Gearing and the financing decision
  • Financial gearing: the traditional approach
  • A challenge to the traditional approach
  • Raising long-term finance
  • Raising long-term finance
  • Share issues
  • Share issues
  • Rights issues
  • Offers for sale and public issues
  • Setting a share price
  • Private placings
  • Bonus issues
  • The role of the Stock Exchange
  • The role of the Stock Exchange
  • Advantages of a listing
  • Disadvantages of a listing
  • De-listing
  • Stock Exchange characteristics
  • The Alternative Investment Market
  • The Alternative Investment Market
  • Providing long-term finance for the small business
  • Providing long-term finance for the small business
  • Is finance a particular problem for small businesses?
  • Equity finance
  • Venture capital
  • Business angels
  • Crowdfunding
  • Non-equity finance
  • Evidence on small business financing
  • Islamic finance
  • Islamic finance
  • Summary
  • Summary
  • Key terms
  • Key terms
  • References
  • References
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Chapter 16: Managing working capital
  • Introduction to Managing working capital
  • What is working capital?
  • What is working capital?
  • Managing working capital
  • Managing working capital
  • The scale of working capital
  • The scale of working capital
  • Managing inventories
  • Managing inventories
  • Budgeting future demand
  • Financial ratios
  • Recording and reordering systems
  • Levels of control
  • Inventories management models
  • Managing trade receivables
  • Managing trade receivables
  • Which customers should receive credit and how much should they be offered?
  • Length of credit period
  • Cash discounts
  • Debt factoring and invoice discounting
  • Credit insurance
  • Collection policies
  • Identify the pattern of receipts
  • Reducing the risk of non-payment
  • Managing cash
  • Managing cash
  • How much cash should be held?
  • Controlling the cash balance
  • Cash budgets and managing cash
  • Operating cash cycle
  • Bank overdrafts
  • Managing trade payables
  • Managing trade payables
  • Taking advantage of cash discounts
  • Controlling trade payables
  • Managing working capital
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Critical review questions
  • Critical review questions
  • Multiple choice questions
  • Multiple choice questions
  • Exercises
  • Exercises
  • Part 4: Supplementary information
  • Part 4: Supplementary information
  • Appendix A
  • Introduction to Appendix A
  • The basics of double-entry bookkeeping
  • The basics of double-entry bookkeeping
  • Recording trading transactions
  • Recording trading transactions
  • Balancing accounts and the trial balance
  • Balancing accounts and the trial balance
  • Preparing the financial statements (final accounts)
  • Preparing the financial statements (final accounts)
  • The ledger and its division
  • The ledger and its division
  • Summary
  • Summary
  • Key terms
  • Key terms
  • Further reading
  • Further reading
  • Exercises
  • Exercises
  • Appendix B
  • Appendix B
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 7
  • Chapter 8
  • Chapter 9
  • Chapter 10
  • Chapter 11
  • Chapter 12
  • Chapter 13
  • Chapter 14
  • Chapter 15
  • Chapter 16
  • Appendix C
  • Appendix C
  • Chapter 1
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 7
  • Chapter 8
  • Chapter 9
  • Chapter 10
  • Chapter 11
  • Chapter 12
  • Chapter 13
  • Chapter 14
  • Chapter 15
  • Chapter 16
  • Appendix D
  • Appendix D
  • Chapter 1
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 7
  • Chapter 8
  • Chapter 9
  • Chapter 10
  • Chapter 11
  • Chapter 12
  • Chapter 13
  • Chapter 14
  • Chapter 15
  • Chapter 16
  • Appendix E
  • Appendix E
  • Chapter 2
  • Chapter 3
  • Chapter 4
  • Chapter 5
  • Chapter 6
  • Chapter 7
  • Chapter 8
  • Chapter 9
  • Chapter 10
  • Chapter 11
  • Chapter 12
  • Chapter 13
  • Chapter 14
  • Chapter 15
  • Chapter 16
  • Appendix A
  • Appendix F
  • Appendix F
  • Footnotes
  • Glossary