Book Description

By focusing on three elemental themes--economic factors, measurement issues, and decision-making perspective--Jamie Pratt's book provides an enlightening coverage of financial accounting from an economic perspective, at once tightening the conceptual framework while enriching the essential contextual relevance of principles every business manager needs to understand. ... Read more

Reviews (4)

Not even an answer key to the exercises
The book is easy to understand, but there should be a solutions manual, or at least an answer key to the exercises. It has been very difficult for me to "learn the mechanics" and "apply the concepts" at the end of each chapter. The pace of the course allows the teacher to solve only 2 or 3 exercises in class, and the book certainly does not make selfstudy easy. Needless to say, that you can't learn financial accounting just by reading. To makes things even worse, a study guide, which does not refer to the same exercises in the book, is out of print.

Confusing
The text is very confusing.

Very helpful.
Here is one of the best ratings for this book: most of my fellow MBA students are pathalogical whiners. Even they found this book to be very helpful.

I have a background in technical education and it looks to me like Jamie Pratt knows how to educate his students.

i can not believe i have to wait 4-6 weeks for this book!
what is the point of being an on line bookstore when you cant get me this book under 4-6 weeks? i can wait 4-6 weeks at barnes and nobel. ... Read more

Book Description

Building on the flexible and balanced approach that has made this text a market leader, the new edition of Financial Accounting provides a strong real-world emphasis, integrates performance measurement, and emphasizes technology. New features motivate critical thinking, analysis, and decision-making.

Financial Accounting remains the most accurate text on the market, with accuracy reviewers checking every line and working through every exercise, problem, and case in the text and supplements.

• New! "Stop and Think" questions for each learning objective motivate students to read actively. These critical-thinking questions—each of which is accompanied by a short answer—can also be used as a review device or as the basis for class discussions.
• New! The Supplement at the end of Chapter 1 now includes Walgreens company financial statements immediately following the most recent Toys 'R' Us Annual Report.
• New! Chapter-ending "Comparison Cases" require students to use the Walgreens and Toys 'R' Us financial statements to review information as a professional analyst would. Students must calculate various ratios and do a comparative analysis of the two companies based on their results.
• New! The popular "Focus on Business" boxes, which relate accounting to the real world of business, have been updated and redesigned, and more than 35 of the features are new to this edition.
• New! Each learning objective includes a list of end-of-chapter "Related Text Assignments" so students can identify the questions, exercises, problems, and cases that are associated with particular learning objectives.
• New! The new edition features three new video cases, bringing the total number of video cases to six. The videos are available on both the Student CD-ROM and the HM ClassPrep CD-ROM for instructors.
• New! The instructors' web site now features a collection of 16 new essays—one for each chapter—that discuss current events and issues. Essay topics include the Enron crisis, the nature and importance of goodwill, and the controversy surrounding accounting for stock options. These essays can be used as exam questions or extra credit assignments. Each essay comes with two sets of questions—one set that students can answer by reading the essay, and a second set that requires students to do additional research. Suggested answers are provided for both sets of questions.
• New! Bridge Tutorial CD-ROM for students emphasizes accounting transactions, provides a review of the debit/credit mechanism, and provides a foundation for the preparation of financial statements. The CD-ROM features 50 pre- and post-test activities on accounting concepts, designed to test students' basic understanding of the accounting cycle. Key concept tutorials provide reinforcement and practice for students. Interactive "Review and Reinforce" questions with rejoinders provide feedback on right and wrong answers. The tutorial also includes demonstration problems with voice-over narrations and a built-in glossary with on-screen pop-up definitions.
• New! Premium Blackboard and WebCT CD-ROMs include course material and information, course documents, chapter overviews, learning objectives, chapter and lecture outline, key points, key terms with definitions, PowerPoint files, Excel and Word documents, chapter summaries, assignments, and Web links. The CD-ROMs also contain self-test questions from the student Study Guide, ACE self-quizzes, interactive exercises, web exercises, discussion questions, real-world examples, cross-disciplinary features, visuals, and more.

Reviews (6)

Fin accounting for dummies
This is an excellent introductory textbook.

Good Introduction to Accounting
I started out with practically no knowledge of accounting - this book did a very impressive job of introducing me to the various concepts. I can now read and understand the financial statements put out by the companies. Our professor used this book very extensively - he would talk about a topic and then point out the page numbers where the authors had written about that topic.
This is a pretty good reference too - I have refered to the book many times when I see certain accounting terms used in the press. The authors have kept the explanation very concise and have inserted examples that capture the essence of the explanation.
I found the book to be very expensive though.

Pretty darn good, but a bit overwhelming for the beginner.
I used this book for my Financial Accounting I course I took this past Spring working towards my Bachelors degree. This was in the first accounting course and I really didn't know too much about accounting beforehand. While the book overall is a good text and full of helpful information and examples, the first chapter or two were totally useless because they approached accounting pragmatically and tried to cover too many fundamentals too soon. Accounting is not an easy subject and theres no easy way to get started with it. However, my professor (who had used the book before) skipped over the first couple chapters and taught us the fundamentals using her own method which did work very well and then the rest of the book made more sense. At times it seems the book might cover a topic or circumstance in only one or two sentences and then will have a problem or two that deal more extensively with that short concept. The only reason I could think they did this was to stimulate creativity and learning and force the student to figure out how to mold the various principles to fit a particular "new" situation rather than just have you memorize some rules. Some might not like this method...

Excellent but not for the beginner
I used this Textbook in my MBA Financial Accounting course at DePaul Unversity in Chicago, IL.I had very little knowledge of the topic before I took this class.

This book is well written, well organized, and is not too wordy.Because of the depth of this book and its brevity, every sentence is important and I found I had to reread chapters about three times before I really understood the material.

I did notice a few minor typos in the chapter exercises, but for the most part I found it extremely accurate.

This is a difficult subject and this book covers much material.Each chapter must be read carefully.To fully understand the material, I highly encourage doing the exercises in the back of each chapter.Houghton Mifflin has the answer keys in Excel files on their web site, but you need a password to get it.

I can understand the person who found this book confusing.I don't think this book is great for somebody new to the subject. But after getting your feet wet in the subject, this is an excellent text.

This book will make a wonderful reference for years to come.In fact, my father, a small business owner wants my copy.

Accounting book thats confusing
I realize that this is an accounting book, but I feel it is very hard to follow.Someone without a knowledge of accounting could get very confused just by reading the first chapter.I could heve thought of many other things I would rather have spent $$.. on.There are better books out there. ... Read more

Book Description

Finally, a resourceful and unique primer on financial statements that uses a creative and different approach to explain every kind of financial report a small business owner or manager needs to succeed. Through an unique visual approach, this book leads users to a clear understanding of how business scores are kept and how to interpret the results.From balance sheets, cash flow statements and income statements, learn how to understand the basic elements that will pave the way to achieving financial success. ... Read more

Reviews (16)

Financial Statements for Dummies!
I've been buying from Amazon.com for at least 5 years but this is my first review. I am 3/4 of the way through Ittelson's book and I want to write this review while my enthusiasm is still burning white hot.

Ittelson has a gift that few experts have. He anticipates all my newbie/beginner stupid questions. Here I am on page 169 wondering why paying payroll taxes doesn't show up on the Income Statement. Sure enough, right after I've wondered to myself why there is no transaction on the Income Statement, I see his note explaining that these payroll tax expenses were put on the Income Statement when the goods were shipped, "not when the actual payment is made."

As soon as the little voice in my head asks, "But why did they do it *this* way?" Ittelson gives me the answer.

I give Ittelson a lot of credit for this. After you've studied something for years, as he clearly has, it's often almost impossible to see the subject with the eyes of a beginner. Believe me, I'm a teacher, I know how difficult it can be.

The first part of the book examines the three basic statements line-by-line: Income Statement, Cash Flow Statement, and Balance Sheet.

The largest part of the book sounds incredibly dry and dull. Each even-numbered page displays all three financial statements: Income Statement, Cash Flow Statement, and Balance Sheet. The odd-numbered page explains a business transation: paying payroll taxes, for example. The transaction's impact on the three financial statements is displayed on the even-numbered page.

Believe it or not, Ittelson makes it interesting to read about these business transactions. He creates a narrative about starting a business and running it. Along the way, he offers a few humorous pearls of business wisdom. This is dry, technical stuff but he makes it entertaining without ever sacrificing explanatory precision.

This is a great book for anyone who feels they need to sharpen their skills with financial statements. I've read short descriptions of financial statements before but it never sank in. What's great about Ittelson's book is that first he gives very clear definitions of key terms and then he takes you step-by-step through each business transaction and how it is reflected on the financial statements.

I wish I had read this book more than 10 years ago when I first started in the business world. I assume that you learn this stuff if you have an MBA. But I didn't. This gives one a solid grounding in the brass tacks of the business world.

This book has been of enormous value to me. It is an essential reference for anyone who needs to understand what business finances are about.

An excellent book for those who wish to start finance
After having read many financial textbooks, I think this book is amazing. The author did an excellent and remarkable work. To begin with, he took in very serious consideration his audience, which is people with poor knowledge in finance. Thus, his book is very easy-to-read and its content very explicit. Every single financial term is clarified with a layman's language. Moreover, for every single term, there is a very understandable example. Likewise, in every page there is a sheet explaining all the transactions. I strongly believe that this book is a masterpiece for non financial managers.

Perfect for budding entrepreneurs!
I would like to thank the author for writing such an insightful and intuitive book on accounting. I highly recommend it to budding entrepreneurs who want to quickly understand financial statements.

GREAT TO UNDERSTAND CONCEPTS OF BALANCE SHEET & INCOME STM
This was a great book which I could finsih in one day. I am a person with a non finance background and now I can explain to any person what a balance sheet and Income stmt mean.

To the author,
I have found one error in the book. While explaining the stockholder equity in page 41. It should be Q + R = S. Whereas in the book it is Q - R = S

Otherwise the book is faboulous for any reader.

The Best Book on Financial Statements, Period!
Wow, what a great book! I am a technical professional enrolled in a graduate business degree program, and until now the plethora of financial and accounting terminology and rules has been bewildering for me. That is no longer true after buying this book. I have primarily used it as a reference book, and without fail any explanation I have needed has been easy to find, clear and concise.

I am no longer in the financially confused majority, largely thanks to this book. The author's education is in biochemistry (as is my undergraduate education), and because he originally came from the hard sciences where clarity and accuracy are valued above all else he was better able to be clear and easy to understand in comparison to many business school authors who seem to thrive on jargon and platitudes.

This is a great book to have on the reference shelf. If you are involved with business finance or investment analysis it is simply the best book available on the subject and should be considered indispensable! ... Read more

Book Description

Praise for Financial Statement Analysis
A Practitioner’s Guide
Third Edition

"This is an illuminating and insightful tour of financial statements, how they can be used to inform, how they can be used to mislead, and how they can be used to analyze the financial health of a company."
–Professor Jay O. Light
Harvard Business School

"Financial Statement Analysis should be required reading for anyone who puts a dime to work in the securities markets or recommends that others do the same."
–Jack L. Rivkin
Executive Vice President (retired)
Citigroup Investments

"Fridson and Alvarez provide a valuable practical guide for understanding, interpreting, and critically assessing financial reports put out by firms.Their discussion of profits–‘quality of earnings’–is particularly insightful given the recent spate of reporting problems encountered by firms.I highly recommend their book to anyone interested in getting behind the numbers as a means of predicting future profits and stock prices."
–Paul Brown
Chair–Department of Accounting
Leonard N. Stern School of Business, NYU

"Let this book assist in financial awareness and transparency and higher standards of reporting, and accountability to all stakeholders."
–Patricia A. Small
Treasurer Emeritus, University of California
Partner, KCM Investment Advisors

"This book is a polished gem covering the analysis of financial statements. It is thorough, skeptical and extremely practical in its review."
–Daniel J. Fuss
Vice Chairman
Loomis, Sayles & Company, LP ... Read more

Reviews (9)

excellent analyst-level text
in all likelihood, average investors will not get much out of this book, as average investors don't pore over 10-ks, annual reports and conduct industry analysis prior to investing (which they should!). but for those above average investors who do (read: intelligent investors, per ben graham), this book is an excellent read.

2/3 of the book deals w/ alterting the investor to some of the areas where company mgmt can play games w/ the #s in order to goose the stock price. the examples were helpful, but the insights were not exactly earth shattering for experienced investors.

however, the last 1/3 of the book, on forecasts & security analysis, is worth the price of the book. in 100pgs, you get an MBA-level text on security / credit / financial statement analysis, complete w/ ratio definitions, caveats(!), and applicability. excellent stuff for the beginning or experienced analyst, and i will doubtless refer to the last 1/3 time and again.

Reads well
This book is for someone that wants an overview style book. It reads as a novel, or loose conversation would be read. Not a textbook style (dry) book.

Make sure you get the real book 1st
I ordered this book without getting the first book that goes along with it. Make certain you do, this is just a workbook.

Focus is on developing insight
According to the author's introduction, the goal of "Financial Statement Analysis" is to "acquaint readers who have already acquired basic accounting skills with the complications that arise in applying textbook-derived knowledge to the real world of extending credit and investing in securities." It succeeds admirably in this purpose. By using case studies drawn from real world situations that illustrate how even a basic analysis can reveal problems before it's too late, the book is a cogent, topical, and valuable reference for any user of financial statements.

Part 1 sets the stage by positing the adversarial nature of financial accounting. Unlike the textbook approach, in which rational companies disclose audited statements in order to convey impartial data about their financial condition, "Financial Statement Analysis" begins with the proposition that the producers of financial statements have motives other than those suggested by traditional texts. Although you would find few people who would argue against this proposition today, it is still valuable to be reminded of the potential agency issues facing corporate officers and auditors.

Part 2 provides an intoduction to the financial statements, devoting a chapter to each. The main emphasis here is on helping the analyst develop judgement. For example, the balance sheet chapter provides insights into problems that arise from the difficulty of assigning a value to an asset, while the income statement chapter details the many pitfalls of pro-forma earnings. Throughout, the authors note critical issues to consider that go beyond the numbers.

Part 3 discusses the thorny problem of profits. Beginning with the simple formulation that "profit = revenue - costs," the authors discuss the myriad of complexities that arise in distinguishing real, economic profits from accounting profits. The first chapter discusses various tools used to manipulate the revenue recognition process; diverse examples include a software company, a lay-away program at a major retailer, and memberships at a health club. The next chapter discusses expense recognition using a similar framework. Perhaps the most interesting chapter in this section discusses the role of auditors. In light of the Enron fiasco, which post-dates this book's publication, the discussion is prescient and will no doubt need to be expanded in future editions!

Part 4 ties the previous sections together to illustrate how to use your new found scepticism to make forecasts. The first chapter provides a step-by-step illustration of how combine an existing set of statements with your assumptions about the future to produce your own forecasts. Each projected statement (income, cash flow, and balance sheet) is accompanied by a line-by-line description of relevant issues (economic, historic, etc...) to consider. The chapter also discusses how to construct a sensitivity analysis under varying assumptions. Unlike the previous chapters, this one provides a detailed explanation of how to actually go through the process, and was particularly appreciated by this reader. The other chapters in the section focus on the computation of the various ratios used in credit and equity analysis. Importantly, however, they move beyond the mechanics by providing the reader with insight into how to use, interpret, and recast the ratios under varying assumptions. As stated at the outset, the focus remains on helping the reader develop insight.

Finally, the book contains a useful glossary that provides definitions and examples for many economic, financial, and accounting terms and concepts.

One caveat, however. If your accounting skills are weak or rusty (like mine), you might might find the lack of more step-by-step examples and problem sets frustrating. In this case, you might consider supplementing the book with a more traditional textbook. (In the author's defense, they state in the introduction that accounting is assumed, so it's not really fair to fault them for this). Overall, however, the book is a very useful tool.

Recommend Purchase!
This book by Martin Fridson, stands out for the real-world flavor it brings to the subject of Financial Statement Analysis. The book talks about the motivations of financial statement issuers (not necessarily clarity and accurate representation of financial condition), and urges readers to not blindly trust financial statements but look between the lines. Agreed, such an outlook can be built up only through constant practice and experience, but this book helps the reader get a head-start. ... Read more

Book Description

Techniques to uncover and avoid accounting frauds and scamsInflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud. It presents tools that anyone who is potentially affected by misleading business valuations­­from investors and lenders to managers and auditors­­can use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers. ... Read more

Reviews (22)

Great measures for making better company evaluations
The management teams of publicly traded corporations have many obligations to the owners (who are the shareholders) of the company. Two of those obligations involve financial statements. First is to report an accurate picture of the financial state of the firm - which argues for conservative accounting. Second is to maximize the share price - which argues for more aggressive accounting because higher reported earnings tend to produce higher share prices. These contrary pressures create differnt outcomes in different firms and investors need to be aware at what is happening at their firm.

This wonderfully informative book shows us how to understand financial reporting so we can determine if a given company is using conservative, aggressive, or even fraudulent accounting. I found it fun to read about the cases of shenanigans and how they were perpetrated and exposed. I also found it informative to learn about the gradations of shenanigans from aggressive reporting to outright fraud.

It seems to me that most people who want to put their hard earned savings into equity investments would do well to educate themselves at least a little to the potential pitfalls that occur when a management team is willing to break their trust with investors. It has been pointed out by others that many folks put more time and analysis into buying a refrigerator or a lawnmower than in their retirement investments. When you think about it that way, the misplaced priorities of some investors become clear.

Dr. Schilit has a lively writing style that keeps things from bogging down. This book isn't a hard read and can help the average investor understand more about what companies can and have done to basically phony up what they report to investors. Much of it is NOT illegal, but aggressive corporate behavior and reporting has too often led to disaster for investors. If you can clearly see which companies use aggressive accounting and which are conservative, you can better decide if you want to take on the risk associated with the aggressive accounting and the management style it represents. Maybe it is worth it, maybe it isn't, but at least you can decide for yourself rather than being in the dark.

The author takes us through seven shenanigans that show up over and over again and more than two-dozen techniques that have been used to accomplish them. Many of the examples included are from well-known companies you may be doing business with today. He also has some helpful information on how to do vertical and horizontal analysis of financial statements in order to find the early warning signs that something might be amiss. The book culminates in an extended analysis of the financials of a famous case of Shenanigans: Miniscribe - the late maker of hard drives.

And if you don't know anything about reading financial statements, there is a very helpful appendix giving you the basics of reading them and what they can and cannot help you see.

Dr. Schilit also provides a list of online resources (only one of which is his own) that can help you do research on potential investments. He also provides key phrases (indicating danger) to search for in annual reports.

No, this book will not make you a forensic accountant. But, yes, you will be more informed after having read it and that will help you make more informed decisions. Of course you can still make bad investment decisions, but they will likely have somewhat more reasoning behind them and maybe you can make fewer of them.

I personally agree with the author that being aware of aggressive accounting practices is a kind of early warning system for the more serious problems that follow on all too often and always at shareholder expense. This book is worth the investment of your dollars and time in order to avoid the kinds of losses associated with companies that choose to misrepresent their actual financial condition to their shareholders. Note the headlines recently about Royal Dutch Shell Oil and its accounting reserves and earnings.

The book does have a couple of minor typos, but they don't change the story much. They are usually easy to see and to adjust for in your reading of the example at hand. Yes, it would have been nice to not have them and I hope they catch them in a future printing. There is also a very useful index.

Overall, a valuable book and a very fine job!

It seems as if the positive reviews on this book are being given negative votes out of disagreement with liking the book rather than the review itself. I would be happy to receive emails from those of you who dislike the book so I can understand why.

Useful framework for analysis
This book was updated on the heels of the WCOM and ENE scandals. There are many interesting techniques available for the researcher here. It requires a meticulous person to properly apply these techniques. However, the average person with a limited number of holdings might do very well with applying these techniques to their portfolio. See the table of contents for a listing of the 7 "financial shenanigans".

Some of the items on Schilit's governance wish list are dealt with by the Sarbanes-Oxley legislation. This will do away with much of management's self-dealing and sleight of hand when presenting pro forma earnings. Some of the "shenanigans" have been dealt with FASB promulgations so there are less of an issue.

Schilit is too harsh on the FASB over the failure to expense stock based compensation the first time it was considered. The forces that oppose the FASB n that issue generated a considerable political threat to FASB's existence in Washington. FASB backed down was preserved and we are all the better for it. FASB is addressing this issue in an exposure draft and it appears likely that it will move forward this time despite the same forces trotting out the same vacuous arguments a second time. Schilit should have given better context with his critique of the FASB.

I remember seeing a piece in Grant's interest rate observer (a newsletter) about a presentation by Trevor Harris (an accounting expert employed by a bulge bracket firm). The article stated that hedge fund managers treated Harris like a rock star, because they needed to learn how to analyze the names in their portfolios better. Harris was simply presenting topics much like are found in this book.

In this book you will learn about many of the manipulations that have been used in the past by companies. Schilit uses the "case" method of teaching. The examples almost all have a real life demonstration of how the trick manifested itself.

At times, the book reads like an advertisement for Schilit's CFRA subscription service. There are 13 such references in the index. I guess this is to be expected, but is still a distraction in an otherwise fine book.

An easy to read accounting book? Ye gods, it's true!
This accounting book covers everything we wished we learned in our introductory accounting class, namely "How do we know if the managers are lying to us?"

In a very easy to read format, the book groups accounting tricks into seven major accounting shennanigans and then cross-references them to a variety of accounting scandals. In the end, you're left with a deeper understanding of the major ways people can manipulate financial statements for their own game.

A surprising interesting book given how dull most accounting texts are. It practically reads itself.

Packed With Knowledge!
Author Howard Schilit writes in surprisingly plain English, and provides the reader with a toolkit to determine what's so rotten in Denmark - or on Wall Street. You don't have to be an experienced reader of financial reports to learn a lot from this book. Schilit offers more than theory; he provides specific examples and case studies. Learn about the manager who reduced future expenses by purchasing $12 million worth of advance postage metering at the end of the year. Find out how "Chainsaw Al" Dunlop drove up the price of Sunbeam stock by creating a $35 million reserve, all while laying off 11,000 employees. Learn the inside story of how Enron became the poster child for corporate wrongdoing. We highly recommends this book to independent investors, and anyone else who needs to understand how unethical execs cook the books. It may not save you from losing a bundle, but at least you won't feel like you're in a battle of wits and devoid of weaponry.

Packed with Knowledge!
Author Howard Schilit writes in surprisingly plain English, and provides the reader with a toolkit to determine what's so rotten in Denmark - or on Wall Street. You don't have to be an experienced reader of financial reports to learn a lot from this book. Schilit offers more than theory; he provides specific examples and case studies. Learn about the manager who reduced future expenses by purchasing $12 million worth of advance postage metering at the end of the year. Find out how "Chainsaw Al" Dunlop drove up the price of Sunbeam stock by creating a $35 million reserve, all while laying off 11,000 employees. Learn the inside story of how Enron became the poster child for corporate wrongdoing. We highly recommends this book to independent investors, and anyone else who needs to understand how unethical execs cook the books. It may not save you from losing a bundle, but at least you won't feel like you're in a battle of wits and devoid of weaponry. ... Read more

Book Description

This successful textbook is highly regarded, especially in programs that want a solid, comprehensive text for students who sit for the CPA exam.The book is loosely organized into five sections which allow for flexibility in sequencing the topics. Many of the topics are illustrated by examples using a continuous case involving a fictitious company called Peerless Products Corporation and its subsidiary, Special Foods, Inc. ... Read more

Reviews (2)

Could Have Been Better
I liked this textbook because it is nice and clean and uncluttered inside, however I think that the content could have been better. I had trouble with the first chapter having to do with business combinations in that every time a journal entry was recorded, I had no idea whether the author was referring to the common stock of the purchasing company or the common stock of the selling company. After a while, I finally figured it out, but I thought the problem could have been avoided by being more clear. There are many more examples that I have like this one. I may be being picky about the book seeing as how I took this course via independent study, so I did not have the ability to ask an instructor specific questions. I just think that the authors could have done a better job being more clear on many things. In the end, I did end up getting a A in the course!

Good value for the money
I have used this book in conjunction with Gleim's CPA review books in preparation for FARE section of the CPA exam. Excellent supplement especially if you look for technical aspects of purchase/pooling accounting. The chapters on consolidation are truly outstanding. Very thorough and comprehensive. The only drawback as with many other textbooks is the lack of answer keys at the end of the chapter. Overall, I would definitely recommend getting it. ... Read more

Book Description

Successful methodology for identifying earnings-related reporting indiscretions

Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices.

Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. ... Read more

Book Description

This widely respected financial accounting text captures the predominant market share among graduate, MBA, and higher-level undergraduate programs. With great clarity, it presents both the basic concepts underlying financial statements and the terminology and methods that allow students to interpret, analyze, and evaluate actual corporate financial statements. ... Read more

Book Description

Praise for The Financial Numbers Game

"So much for the notion ‘those who can, do–those who can’t, teach.’ Mulford and Comiskey function successfully both as college professors and real-world financial mercenaries. These guys know their balance sheets. The Financial Numbers Game should serve as a survival manual for both serious individual investors and industry pros who study and act upon the interpretation of financial statements. This unique blend of battle-earned scholarship and quality writing is a must-read/must-have reference for serious financial statement analysis."
––Bob Acker, Editor/Publisher, The Acker Letter

"Wall Street’s unforgiving attention to quarterly earnings presents ever increasing pressure on CFOs to manage earnings and expectations. The Financial Numbers Game provides a clear explanation of the ways in which management can stretch, bend, and break accounting rules to reach the desired bottom line. This arms the serious investor or financial analyst with the healthy skepticism required to drive beyond reported results to a clear understanding of a firm’s true performance."
––Mark Hurley, Managing Director, Training and Development,
Global Corporate and Investment Banking, Bank of America

"After reading The Financial Numbers Game, I feel as though I’ve taken a master’s level course in financial statement analysis. Mulford and Comiskey’s latest book should be required reading for anyone who is serious about fundamentally analyzing stocks."
––Harry Domash, San Francisco Chronicle investing columnist and investment newsletter publisher ... Read more

Reviews (17)

Perfect timing
Definitely the best resource out in the market to help you learn everything you need to know about financial statement analysis and creative accounting pratices. With all the accounting upheaval Enron has caused, this book has perfect timing for anyone who is involved in the 'numbers game' of the accounting world.

Whoa! Excellent book to explain creative accounting ...
So what is a shareholder to believe? The analysts? The accountants? FASB? SEC? Who has our best interest at heart? And who can you trust anymore? Caveat Emptor. Buyer beware... I began a search to find the best book I could to educate me on corporate creative accounting and this is it. EZ to understand. You don't need to know debits and credits. I know what to look for now when I study 10k's. It's all in this book. Timely. Published just as Enron broke. Lots of companies mentioned, which I won't mention here. You just might be shocked at what you find out. Chapters include 'How the Game is Played', 'Misreported Assets and Liabilities', 'Getting Creative with the Income Statement, 'Earnings Management', 'Problems with Cash Flow Reporting', and many more. Complete with exhibits, charts, footnotes. EZ read. Have to go now and re-evaluate my favorite corporate annual reports!

Highly Recommended!
A special note in the preface of this book explains that it went to press just as the Enron story was beginning to break. Three of its chapters provide almost all the information anyone would have needed to spot the problems at Enron, not to mention at the other big corporations whose scandals made recent headlines. Spotting fraud isn't that hard. The authors provide a very useful toolkit that even a novice investor can use. Some of their coverage of the regulatory apparatus will no doubt have to be changed in future editions, as the regulations themselves keep changing, but this enlightening introduction to the nitty-gritty of skeptical financial statement analysis will have enduring utility. It's written by accountants, so it gets a bit plodding in spots, but their anecdotes relieve the tedium and their information is invaluable. We recommend this reality check for every investor's bookshelf, as well as every employee's and every financial reporter's. Anyone who depends on corporate performance or who uses corporate financial statements should read it.

you are not likely to learn anything knew from this book
This book is not likely to tell you anything that you don't know already from reading the newspapers. The authors wrote in the introduction that it requires advanced knowledge of finance and accounting to comprehend the material. Nothing like that. A couple of basic accounting courses are all you need to read it. It is redundant. It didn't tell me anything new although if I were a sophomore in college then maybe I would have learned something. Don't expect to get any insight into the financial numbers game. It is a little more than a basic review of current accounting issues. If you read business publications from time to time then you are already well familiar with everything the book has to say.

Alternative view: Big Disappointment
I ordered this book based on the positive Amazon reviews,
but it is a major disappointment. The authors belabor
the obvious. Their major points would not be a surprise to
anyone with minimal coursework in accounting, with cursory
experience looking at financial statements, or anyone who
has spent a little time watching CNBC. The redundancy
is mind-numbing. Maybe hormone crazed undergraduates need
to see the same points over and over again, but intelligent
and attentive readers shouln't have to waste their time.
Enron does not even make it into the index, nor could I
find any of their financial smoke-screens mentioned in the
text. I would never spend another dime on work by these
authors, ... ... Read more

Book Description

FINANCIAL ACCOUNTING provides a solid foundation of accounting concepts with unique features to show how users can use accounting to understand business. FINANCIAL ACCOUNTING 8e, uses the preparation of financial statements as the framework for understanding what accounting is all about. ... Read more

Reviews (8)

excellent intro book!
excellent intro book! and a great read too ;)

management accouting for steve albrecht, et al
this text hasn't included solutions manual that's big trouble for student

Missing major material
This book was required for my accounting class. It seems the have the holes of Swiss cheese though. While it probably covers the basics of Financial Accounting as well as any other book, it lacks some things that I thought would be entirely useful. For example only the odd exercises have the solutions in the back. Maybe it's just me, but I expect all since I'm in college. Furthermore, despite the copyright date of 2002, this edition contains a lot of old material. It lists Market Capitalization information about Microsoft from the spring and summer of 2000, the peak in stock prices. Also in the first chapter it speaks of accounting ethics and references a speech made in 1998 by the chairman of the SEC. It makes no mention to the scandals of Enron, WorldCom etc. (Enron declared bankruptcy on Dec. 2, 2001.) This edition appears to be just a desire by the authors to put out a new edition to limit the used book trade of the 7th edition and make more money for the authors.
If you can avoid it, do not buy this edition new.

Super Service
Very fast delivery. Book was in brand-new shape.

very good!
very good service, got the book fast and in very good condition... ... Read more

Book Description

The Fourth Edition of Financial Accounting teaches accounting from both the preparer and user perspective.To lead students to a full understanding of the impact of financial statements on business decision-making, the authors use the financial statements from Winnebago Industries throughout the chapter and end of chapter material.Porter/Norton is unique in that it also uses a competiting company to Winnebago, Monaco Coach, to do comparative financial analysis; this is reflected throughout the text and in end of chapter problems. ... Read more

Book Description

One of the few books that addresses financial and managerial accountingwithin the three major areas of the public sector—government, health,and not-for-profit—the Second Edition provides the fundamentals offinancial management for those pursuing careers within these fields. KEYTOPICS: With a unique presentation that explains the rules specific tothe public sector, this book outlines the framework for readers to accessand apply financial information more effectively. Employing an engaging anduser-friendly approach, this book clearly defines essential vocabulary,concepts, methods, and basic tools of financial management and financialanalysis that are imperative to achieving success in the field. This book is intended for financial managers and generalmanagers who are required to obtain, understand, and use accountinginformation to improve the financial results of their organizations,specifically within the areas of government or public policy and management,not-for-profit management, and health policy and management. ... Read more

Book Description

Millions of traders participating in today’s financial markets have shot interest and involvement in technical analysis to an all-time high. This updated edition of Technical Analysis from A to Z combines a detailed explanation of what technical analysis is and how it works with overviews, interpretations, calculations, and examples of over 135 technical indicators—and how they perform under actual market conditions. Enhanced with more details to make it easier to use and understand, this book reflects the latest research findings and advances. A complete summary of major indicators that can be used in any market, it covers:
• Every trading tool from the Absolute Breadth Index to the Zig Zag
• Indicators include Arms Index, Dow Theory, and Elliott Wave Theory
• Over 35 new indicators ... Read more

Reviews (29)

Good coverage in breadth but poor in depth
This is a good quick reference to many tech. indicators. It is possibily THE book that covers the most indicators. However, it does not have in-depth coverage to most of the indicators in the book. It only discusses one or at best a couple of the ways to use a particular indicator. I'd rather see thorough discussions of fewer indicators that are most popular. To that end, many online sources are better than this book. /

I must give the book credit for a very well-written and concise introduction to technical analysis--as part I in the book. It is pretty innovative to use "trader's remorse" to explain the psychological aspects of stock movement and the reason why technical analysis has merits.

Lastly, you don't really need to buy the book if you have online access. It is available online with its entirety and more--the spreadsheet formulas etc.--for free, but of course you would rarely need to understand or even take a look at the formulas behind those indicators unless you're writing software using those indicators. Do a little search on the web and you'll see what I mean.

There is nothing like this book
I own a lot of books on investing and technical analysis and can say there is nothing like this new edition from Mr. Achelis. Yes, the discussions on each indicator are brief (2 to 4 pages), but there are something like 130 indicators! And unlike the first edition (which I recall reading that it had sold almost 100,000 copies), the new edition shows the MATH behind almost all the indicators (no other book I've seen covers the calculations on so many indicators). Even if you own the first edition, this is worth the money.

From the creator of MetaStock
TA from A-Z is an excellent desk reference that describes in great detail a hundred or so different technical indicators, how they are used and also how to calculate them.

I'm not alone in liking this book. Steven Nison, Walter Bressert, John J. Murphy, William O'Neil , Martin Pring and John Bollinger all wrote glowing reviews for this book.

Reed Floren

The Quintessential Reference Book
Ever wonder what all those proper names and strange looking acronyms mean when you look at the choices of technical indicators available on most web sites today?
Steven B. Achelis, founder of EQUIS and creator of MetaStock has compiled the quintessential reference book for technical analysis covering practically every indicator known to mankind. But if there is one thing to imprint onto your brain from this book, it is contained in pages covering the subject "Support and Resistance." In all my years of floor trading, I have never seen anything more valid in price trend analysis than this horizontal (support) line connecting previous tops which once surmounted becomes the floor for the next move up. Achelis calls the pullback after breakout "trader's remorse" and it is the ideal place to buy into a strong stock in a strong industry. His several graphs depicting this pattern couldn't be more precise. The pictures are worth a thousand words. Armed with only this bit of technical knowledge, an investor would improve the odds of profitability many times over by merely subjecting every potential purchase to this test pattern. I take it that because Achelis spent about 5 times as much material on this one concept as he did the other indicators, he agrees that this is truly one of the most important theories in technical analysis.
The rest of the book is devoted to short descriptions of what various indicators mean, how they area calculated, and how they are used. This is especially useful when subscribing to any of the numerous web sites that now carry dozens of indicators. Keep the book close to the computer to have it as a ready reference. I doubt if you will find more detailed information in any other source.

good reference, not much more
This makes a great reference if you want to know what x indicator is, and how it is typically interpreted. The book is often good on giving you general information on how it's calculated, but not always. I'd certainly recommend it as a reference, but don't expect to get a lot of useful actionable items from the book, it's just a reference. ... Read more

Book Description

This market-leading Payroll Accounting text/workbook illustrates the calculation of payroll, payroll taxes, and the preparation of records and reports that form the foundation of a payroll system. ... Read more

Book Description

Praise for Financial Valuation

"The book has a wealth of detail, practice tips, examples, and extra information, plus sections on business valuation situations not addressed elsewhere. A valuable addition to the literature of business valuation."
–– Shannon Pratt, CFA, FASA, MCBA
Managing Director, Willamette Management Associates
Managing Owner, Business Valuation Resources, LLC

"The book sets a fine example in technical yet readable exposition. As the text flows, it is evident [the twenty-five authors] have taken great steps toward achieving uniformity reflecting the various opinions within the profession.This goes a long way toward reinforcing proven methodologies and validating their ‘real world’ application. The well-thought-through categories–starting with Standards of Value–and legal insights with ‘tried and true’ cases reveal and attest to the depth of [the authors’] experience in business valuation and litigation consulting.
"All of the topics appeal to practitioners of all levels. Value-adding ‘ValTips’ are quite helpful in stimulating broader consideration of each subject and elevating the reader’s perspective."
–– Parnell Black, MBA, CPA, CVA
Chief Executive Officer
National Association of Certified Valuation Analysts

"This book takes the consensus of many talented appraisers and presents topics in a fashion that has not been seen before in any other valuation treatise.Many of the same old topics are presented, but this time, even I was forced to take a much closer look. This unique approach to many of these topics is a must for the well-rounded appraiser."
––Gary R. Trugman, CPA, ABV, MCBA, ASA, MVS
Trugman Valuation Associates
A Rachlin Cohen & Holtz Company

"This is a unique publication in that it brings together twenty-five nationally recognized names in the valuation industry to provide practitioners with their consensus ‘school of thought’ on many commonly encountered valuation issues. The author list includes analysts from all the valuation organizations with many current or former members of the AICPA Business Valuation Subcommittee and the AICPA BV Hall of Fame. An excellent reference source for CPAs looking for guidance from some of the top valuators in the nation."
––Thomas E. Hilton, MS, CPA/ABV, CVA
Chair, AICPA Business Valuation Subcommittee
Partner, Anders, Minkler and Diehl LLP

Coauthors: Mel Abraham, Jim Alerding, Terry Allen, Larry Cook, Mike Crain, Bob Duffy, Ed Dupke, Nancy Fannon, John Gilbert, Tom Hilton, Greg Koonsman, Eva Lang, Mike Mard, Harold Martin, Mike Mattson, Jim Hitchner, Steve Hyden, Ray Moran, Charles Phillips, Jim Rigby, Ron Seigneur, Robin Taylor, Linda Trugman, Don Wisehart, and Mark Zyla. ... Read more

Reviews (1)

Review of "Financial Valuation: Applications and Models"

Jim Hitchner, a name well-known to ABVs and other valuation practitioners, conceived the novel idea of bringing together twenty-five highly visible and well-respected valuation professionals to present the group's collective views and positions on business valuation concepts and applications. Each of the authors is a coauthor of the entire book. The authors, many of whom are ABVs and instructors for the AICPA's national business valuation educational program, include Mel Abraham, Jim Alerding, Terry Allen, Larry Cook, Mike Crain, Bob Duffy, Ed Dupke, Nancy Fannon, John Gilbert, Tom Hilton, Jim Hitchner, Steve Hyden, Greg Koonsman, Eva Lang, Mike Mard, Harold Martin, Mike Mattson, Ray Moran, Charles Phillips, Jim Rigby, Ron Seigneur, Robin Taylor, Linda Trugman, Don Wisehart, and Mark Zyla.

The result of this collective effort is "Financial Valuation" - a text that presents a compilation of "best practices" for the business appraiser.

"Financial Valuation" covers the obligatory fundamentals found in most other introductory texts. What sets this text apart from others is its focus on applications and methods. The text contains numerous practical examples and discusses alternative approaches for tackling those complex issues that are often encountered in the real world of valuation practice. This focus makes "Financial Valuation" an indispensable tool for even the most experienced appraisers. Some of the text's highlights include:

Chapter 4, Income Approach to Value, discusses the alternative income valuation methodologies and includes a detailed example of the excess cash flow (earnings) method.

Chapter 5, Cost of Capital/Rates of Return, includes a comprehensive presentation on the application of Ibbotson data for determining risk premiums in discount and capitalization
rates.

Chapter 6, Market Approach to Value, discusses alternative market valuation methodologies and presents a quantitative method for using and adjusting guideline public company multiples for size and growth differences.

Chapter 9, Report Writing, presents a detailed valuation report with numerous comments on why certain items were included or excluded.

Chapter 12, Family Limited Partnerships, presents a detailed case study on the valuation of a Family Limited Partnership including the selection of discounts for lack of control and
lack of marketability.

Chapter 13, Court Case Issues and Review, includes synopses of over 40 tax court cases organized by major valuation areas of dispute.

Chapter 16, Valuation in the Divorce Setting, discusses the complexities of valuing ownership interests in closely held businesses for divorce purposes, including a discussion of relevant state case law, standard of value, applicability of discounts and premiums, etc.

Chapter 18, Valuation Issues in Professional Practices, provides an overview of the issues involved in valuing professional practices such as medical, law, and accounting practices.

Chapter 19, Valuation of Healthcare Entities, includes two detailed case studies: a surgery center and a hospital.

Chapter 20, Valuation of Intangible Assets, includes a detailed case study on an allocation of purchase price for a business combination under new SFAS 141.

Chapter 21, Marketing, Managing, and Making Money in a Valuation Services Group, presents practical guidance on how to operate a valuation practice.

Chapter 24, Valuation Views and Controversial Issues, presents a discussion of subjective and difficult areas of valuation in the form of a case study/report format.

The text also includes hundreds of "ValTips" which alert the reader to important and often controversial topics. The accompanying "Financial Valuation Workbook" provides a detailed case study, models, and exercises that can substantially reduce a beginner's learning curve and assist the experienced practitioner in better organizing the valuation process. The Workbook follows the valuation engagement format and is organized by standard, easily identifiable sections that allow for easy reference.

SUMMARY
"Financial Valuation" gets two enthusiastic thumbs up! ... Read more

Book Description

HARNESS THE FULL POWER OF ORACLE’S POWERFUL NEW UPGRADE

Oracle is the second largest software company in the world, second only to SAP in ERP vendors. Now, after five years, Oracle has come out with the newest release of their ERP system, version 11i. The "i" represents Oracle’s first presentation of its applications in Internet form, one in which the concept of specific forms loaded as clients or as dumb terminals is replaced by a commitment to industry standard Internet form that should be accessible by anyone, anywhere. This book explains in clear language for financial as well as IT professionals how to utilize Oracle applications to retrieve information.

Oracle E-Business Suite 11i: Implementing Core Financial Applications will walk the reader through the process of the Oracle 11i upgrade/conversion and provide a tutorial path for navigating through financials. Its step-by-step guidance shortens the implementation process by providing the menu paths of the actual package and in-depth descriptions of how to use the screens as well as explanations of such user-friendly aspects as customizing the program for individual use.

Whether your company has been a dedicated Oracle customer or is considering adopting the powerful capabilities of this latest version, Oracle E-Business Suite 11i: Implementing Core Financial Applications will help you quickly master the program and turn it into one of your business’s most powerful back-office tools. ... Read more

Reviews (3)

A good Introductory Book
This book is a good starter book; much better than Oracle Materials. It gives good Introduction to Oracle Modules GL,AR and AP with the help of screen shots. (in fact, lots of screen shots help the understanding).

Though the contents are not for an advanced user (who would use Oracle User guide then) but still for a person who has not seen Oracle Financial Applications at all, it would be a good first step.

I did not rate 5 star because
1. it did not cover 2 financial modules : Fixed Assets and Cash Management

2. A chapter on what is happening behind the screen in applications (like general concept of Oracle Tables, TRMs etc. would have helped.

3. Should have included as an appendix: Additional Sources of Information like Metalink, OTN web etc.

Hopeless!
This book is some kind of joke. And I'm the last one to laugh, 'cause I had to spend over 60$ on this one. It is full of screenshots and hardly any verbage. If there is any, it simply gives you the basic navigation instructions for 11i screens. Well, it did one good thing though, it inspired me to write a book on the subject that I have no knowledge on. Here's what I'm going to do. Get all the user manuals, tear them apart and throw the pages in the air. Which ever land on a table, simply collect them, bind them together, and viola...you have a book with a title that reads something like "Implementing some hi-tech applications...blah blah blah..." !

Very disappointing
Though there are very few books about Oracle Applications Version 11i, this is not a good reason to buy this book. One gets the feeling that it has been assembled from a set of consultant's hand outs. It is badly written and the publisher seems to have dispensed with the services of editor and proof reader. For example, diagrams 1.3 and 1.4, meant to demonstrate the difference between single organization and multi-organization structures are in fact completely identical. This doesn't give one a great deal of confidence in the accuracy of the rest of the information in the book. The section on conversion contains the sentence "Converting legacy data can be time-consuming, expensive and complex" and then in the following paragraph "If the volume is too large, convert the legacy data via a custom software conversion program. The process can be complex and time consuming". I think we got the point the first time.
It would be great if there was a good book about Oracle Applications, but this isn't it. I feel embarrassed to have spent my employer's money on it, if I had paid for it myself I would be very angry indeed. ... Read more

Book Description

How to make accounting information the enabler of organizational activities and objectives is the crux of this powerful guide. By viewing financial and managerial accounting together as functions of internal reporting (managerial) and external reporting (financial), the authors lay the foundation for thinking more innovatively and effectively about accounting user support, information technology, and solving business problems. This essential work is a must-read for accounting and information professionals. ... Read more

Book Description

Financial Accounting: A Business Process Approach attempts to bridge the gap between business and accounting. It starts out by setting the stage with a description of what a business is all about. This provides a framework in which readers can see how accounting relates to and reports on business activities. This book shows how accounting fits into business as a company is created, operated, and expanded. The traditional financial statements and the accounting equation are emphasized, but how accounting relates to business processes is at the core.This version of Reimers introduces debits and credits in Chapter 4 and then contains integrated treatment of debits and credits in all subsequent chapters. It covers merchandising and invento