It is hard to understand business and executive decisions if you do not speak the language of finance accounting. Without an understanding of finance, good people are left in the dark as unfortunately companies keep score via the balance sheet and income statement more than customer satisfaction and personal innovation.
MBAs and other have to wade through financial accounting texts as they have the time and focus to work through the blur of terms and assumptions. Pick up this book and you will not only understand how financial accounting works, but also how it influences business decisions.
The `dummies' genre is always a misnomer as people who seek out these books are not dummies - it takes a smart person to know that they need to learn. I learned the hard way with a four and a half inch book on Financial Accounting. I could have learned more, faster and understood it if this book was around 20 years ago.
Recommended for anyone who wants to understand what accounting is, the language it uses, the rules behind it and finally how it shapes and influences business decisions. Every person needs this basic knowledge to understand what is really going on and why companies do some things that do not seem to make sense.
The book is written from the perspective of someone who needs to understand financial accounting rather than someone who needs to create/maintain financial accounts.
The writing is clear, understandable and builds on itself, starting with a few accounting terms and incorporating new ones as the reader builds familiarity with the subject area.
The chapters are short and focused, explaining the concept first and then illustrating it via a financial statement, so you know what you are reading.
The book asks provocative questions and then answers them, rather than being a dry recitation of financial accounting rules and processes. An example is the question "Do service companies have inventory?" something someone would ask but that would not be readily answered in a discussion of inventory accounting practices.
Like any large and complex subject there are some things that are simplified or omitted. Breaking things down into small chapters helps make the concepts more readable but they will not make you a financial accounting expert. That is ok, as understanding what financial accounting is will put you ahead of about 95%+ of the people you will meet.
You cannot understand business without understanding the fundamentals of marketing, production, finance and financial accounting. This book is a great accelerator for building that last part of knowledge.