October 20, 2020

7 Best Financial Accounting Textbooks

Best Book for Financial Accounting

Only the Best Financial Accounting Textbooks can satisfy your thirst for knowledge in academic purposes or other queries. So, how do you choose a book that will fill up the most of your thirst? The book that will cover topics of your curriculum and academic syllabus we think that is the right book for Financial Accounting for you. In this review article, you will get clear details of seven best Financial Accounting textbooks and the information why books are by far some of the best-selling on the market. They are in-depth & helpful in the field of financial accounting you can collect right now from Amazon.com!

Best Book for Financial Accounting

Reviews are on the basis of the highest average customer rating, price, quality, authors profile, available in paperback in fact here. Look at the details in order to find your essential book. Keep in mind that don’t judge a book by its cover. Concentrate on the content and topics inside the book before shopping.

Book Name & Author Image Rating Price

Financial Accounting 2020 Edition

Larry M. Walther

4.6 See on Amazon

Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports

Thomas Ittelson

4.6 See on Amazon

Accounting Made Simple: Accounting Explained in 100 Pages or Less

Mike Piper

4.4 See on Amazon

Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

Stig Brodersen & Preston Pysh

4.7 See on Amazon

Accounting All-in-One For Dummies, with Online Practice

Kenneth W. Boyd

4.3 See on Amazon

Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports

Howard Schilit, Jeremy Perler, & Yoni Engelhart

4.6 See on Amazon

An Easy Introduction to Financial Accounting: A Self-Study Guide

4.0 See on Amazon

1. Financial Accounting 2020 Edition

This book covers a wide range of financial accounting issues relating to the accounting and reporting cycle, current assets, long-term assets, debt, equity, and cash flows, etc.

It addresses introductory accounting courses that are foundational for all accountants and business people. Financial Accounting 2020 has a writing approach that is a careful blend of concepts and practice. The book consists of four detailed chapters. For example:

Chapter One: Welcome to the World of Accounting

In this chapter, the writer addresses the Accounting Information, Accounting Profession, and Careers. The Accounting Equation, how Transactions Impact the Accounting Equation, the Four Core Financial Statements, etc.

Chapter Two: Information Processing

Accounts, Debits, and Credits, the Journal. General Ledger, Trial Balance, Computerized Processing Systems, T-accounts.

Chapter Three: Income Measurement

“Measurement Triggering” transactions and events, the Periodicity Assumption, Basic Elements of Revenue Recognition, the Adjusting Process and Related Entries, Accrual versus Cash-Basis Accounting.

Chapter Four: Preparing Financial Statements

The Accounting Cycle, and Closing Process, Reversing Entries, Classified Balanced Sheets, Business Liquidity, and the Operating Cycle.

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2. Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports

In fact, for non-financial managers, stock-market investors, undergraduate business and MBA students, lawyers, lenders, entrepreneurs, and more Financial Statements is a perfect introduction to financial accounting.

In most cases, start-up finance and accounting books fail because they are written “by accountants for accountants or the authors “dumb down” ideas until they are virtually useless. The financial statements conclusively show that all this accounting and financial-reporting stuff is not rocket science and you can understand it!

The author shows carefully to non-financial directors clearly and simply how balances, income statements, and cash flow statements work together to provide a “snapshot” of a company’s financial health. Each concept is explained with a basic, straightforward transaction example. Through this book, you’ll be able to see exactly how each transaction affects the three key financial statements of the enterprise.

Moreover, This best-seller book is a lesson in vocabulary. Because it explains how-

Sales and revenue mean the same thing.

Profitsearnings, and income mean the same thing.

Now, revenue and income do not mean the same thing.

Costs are different from expenses.

Expenses are different from expenditures.

Sales are different from orders but are the same as shipments.

Profits are different from cash. Solvency is different from profitability.

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3. Accounting Made Simple: Accounting Explained in 100 Pages or Less

Accounting Made Simple explains in a simple and fluent language the following most essential concepts for accounting.

Accounting Equation and why it’s so significant.

How to read and prepare financial statements.

How to calculate and interpret several different financial ratios.

Concepts and assumptions behind Generally Accepted Accounting Principles.

Preparing journal entries with debits and credits.

Cash method vs. Accrual method.

Inventory and Cost of Goods Sold.

How to calculate depreciation and Amortization expenses.

If you are not sure what these concepts mean, this book is most probably for you. Each chapter concludes with a “general overview” of the main points of the chapter. Using these overviews, you can skim the whole book in minutes before discovering your favorite chapter. Whenever Piper mentioned a concept he didn’t explain yet, he mentioned you in the chapter where that concept is explained, so that you would never lose the thread.

This book is divided into two main sections. Part One: Financial Statements, and Part Two: General Accepted Accounting Principles (GAAP). 

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4. Warren Buffett Accounting Book: Reading Financial Statements for Value Investing

This book has great popularity who read it because it teaches effectively:

Two methods for calculating the intrinsic value of a company.

What is a discount rate and how does it work.

Detailed instructions on how to read an income statement, Balance sheet, and cash flow statement.

How to calculate important ratios to properly value any business.

From a beginner’s perspective, this book will provide you with the essential knowledge needed to build skills in the subject. Some of the best things about the book are the easy-to-read, fun to understand examples and it also outlines the mathematics behind various calculations.

Maybe the best thing about this book is the author’s online forum that anyone can use. In their forums, there is a wide range of authors, along with other investors, that can help with reading and raising questions.

For more experienced investors,  this book will provide you with a great overview and a quick reference if you want to see something faster.

If you want to understand the basics of accounting, this is the book for you. If you already know current assets that generate revenue in 12 months or less, you do not need to buy the book.

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5. Accounting All-in-One For Dummies, with Online Practice

In All-in-One Accounting for Dummies, you will benefit from the cream-of-crop content of several previously published books. The niche you want to conquer in the wonderful world of accounting will help you thrive. You will get free access to a quiz for each section of the online book. It deeply discusses the following topics.

Setting Up Your Accounting System.

Recording Accounting Transactions.

Adjusting and Closing Entries.

Preparing Income Statements and Balance Sheets.

Reporting on Your Financial Statements.

Planning and Budgeting for Your Business.

Making Savvy Business Decisions.

Handling Cash and Making Purchase Decisions.

Auditing and Detecting Financial Fraud.

If you’re a student studying the application of accounting theories or a professional looking for a valuable desktop reference you can trust, this book covers it all.

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6. Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports

The bestselling classic from the “Sherlock Holmes of Accounting”―updated to reflect the key case studies and most important lessons from the past quarter-century.
 
This Financial Shenanigans classic guide focuses on the most shocking frauds and financial reporting criminals in the past twenty-five years and gives investors the tools they need to identify:
Corporate cultures that incentivize dishonest practices.
The latest tricks companies use to exaggerate revenue and earnings.
Secret techniques devised by management to manipulate cash flow as easily as earnings.
Companies that use misleading metrics to fool investors about their financial performance.
How companies use acquisitions to hide deterioration in their underlying business.

The authors Howard Schilit, Jeremy Perler, and Yoni Engelhart subdivide their comprehensive examination of financial shenanigans into four parts:

1. Earnings manipulation shenanigans.

2. Cash flow shenanigans.

3. Key metrics shenanigans.

4. Acquisition accounting shenanigans.

The overall message is that investors should assume that the urge to exaggerate the positive and hide the negative will never disappear. And where temptations are present, shenanigans are often followed.

For this reason, investors are strongly encouraged to apply the ten principles of forensic mentality to detect accounting fraud and fraud in financial statements.

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7. An Easy Introduction to Financial Accounting: A Self-Study Guide

An Easy Introduction to Financial Accounting: A Self-Study Guide is a self-study guide for anyone who wants to teach themselves basic financial accounting. In fact, this book is based on a course by the same author that has been successfully completed by thousands of students worldwide. It explains the concepts in simple language with illustrative examples, provides review questions and quizzes after each chapter and section, and there are two full-length practice tests at the end of the book. This book compares and contrasts US GAAP and IFRS for each topic covered in the book.

This book asks questions to the reader throughout the text, and at the end of the sections, there is an answer key to check if you have received it. This approach is more effective in understanding accounting concepts than any other. The book is a workbook and something that you will keep and mention again.

It will take you from knowing nothing to a fully competent person who is capable of understanding, analyzing, and making financial statements. Therefore, definitely, this is one of the Best Financial Accounting Textbooks in real.

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Financial Accounting Key Takeaways

Financial accounting plays a key role in monitoring all financial transactions of a business. It is a process in which companies record and report pieces of financial information that go in and out of their business activities that allow companies to understand the health of both managers and outside investors and analysts and make informed decisions.

Financial accounting encompasses rules and procedures for providing financial information about an organization. Individuals who acquire the appropriate level of knowledge of financial accounting can use this information to make decisions based on the perceived financial health and outlook of the organization. Such decisions may include assessing employment prospects, financing, providing credit, and buying or selling proprietary shares.

However, financial accounting does not fully address issues of an internal nature, such as whether an organization should buy or lease equipment or increase the level of salary increase. Information is generated to guide such internal decisions in accordance with the managerial accounting rules and procedures introduced in other books and courses.


7 Best Accounting Books for Beginners

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