Accounting for Non-Accountants

190 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 191

192 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 193

194 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 195

196 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 197

198 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 199

200 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 201

202 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 203

204 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 205

206 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 207

208 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 209

210 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 211

212 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 213

214 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 215

216 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 217

218 Accounting for Non-Accountants

Appendix B: Financial Statements—Station Casinos, Inc. 219

220 Accounting for Non-Accountants

Index

A

accounting equation, 25, 29, 42, 54, 56–58, 60, 77, 79, 81, 82, 88
accounts payable, 26, 28, 35, 39, 40, 42, 46, 48, 68, 71, 86, 91, 97, 156
accounts receivable, 27, 34, 41, 43, 48, 49, 52, 57, 59, 61, 67, 68, 70, 71, 86,

89, 90–92, 97, 98, 127, 133, 134, 155
Accrual Basis of Accounting, 61
American Accounting Association, 160, 172
American Institute of Certified Public Accountants (AICPA), 7, 11, 14, 21,

164
assets, 19, 26–43, 105, 128, 145

contra-asset, 59, 61, 90, 92, 98
current, 32, 128–131
intangible, 32, 33, 42
long-term, 16, 32, 36, 39, 43, 88, 92, 150
short-term, 32, 39, 43, 128
audit, 160–169
adverse, 166, 167, 168
compliance, 168
independent, 167
operational, 169
qualified, 166, 169
unqualified, 163–166, 169
auditor, 5, 15, 160–169
governmental, 163, 168
internal, 162, 163, 169

222 Accounting for Non-Accountants

B

balance sheet, 8, 11, 15, 17, 19–43, 46, 49, 54, 56, 57, 59, 60, 61, 62, 66–69,
80, 87, 88, 90, 92, 106, 110, 111, 113–117, 120, 122, 123, 128, 132, 134,
154, 155

bookkeeping, 5, 77, 86
budget, 150–158

advantages, 150, 151
capital, 154, 158
cash, 155–157
master, 151, 152, 158
sales, 152, 153

C

capital stock, 104, 122
common, 104–106, 109–112, 114, 122
dividends, 107, 108, 111, 113, 117, 119, 123
cash, 107, 108, 111, 117, 122
stock, 107, 108, 111–115
preferred, 104–106, 110, 111, 122, 123
selling, 109, 110
split, 108, 109, 115, 123

Cash Basis of Accounting, 61
Certified Public Accountants, 7, 11, 14, 21, 160–162, 165, 166, 168, 169,

172, 173, 221
corporation, 4, 9, 10, 11, 16, 18, 22, 27, 98, 101–123, 139, 142, 143, 147,

148, 162, 175
cost of goods sold, 47, 50, 53–56, 58, 61, 62, 80, 86, 91, 93–97, 127, 131,

132, 134, 142, 152–154
credit, 52, 61, 70, 76–87, 91, 93–100, 119, 126, 127, 130, 131, 133, 134,

138, 168
current ratio, 126–128, 134, 135

Index 223

D

debit, 76–87, 91, 93–100, 119

dividend payout ratio, 139, 146, 147

E

earning per share (EPS), 143, 147
expense, 8, 17, 20–23, 43, 46–63, 67, 69, 70, 77, 78, 80–83, 86, 88–94,

96–99, 113, 139, 141, 142, 144, 145, 148, 150, 152–158
accumulated depreciation, 92
bad debt, 47, 50, 52, 61, 90, 91, 93
depreciation, 92, 99
insurance, 92
interest, 92, 93

F

Financial Accounting Standards Board (FASB), 7, 11, 14, 22
financial statement, 1, 3–5, 7–12, 14–24, 29, 42, 46–63, 66, 67, 73, 87, 90,

93, 99, 100, 106, 111, 121, 126–148, 160, 161, 163, 164–169, 175, 177,
179, 181, 183, 185, 187, 189, 191, 193, 195, 197, 199, 201, 203, 205,
209, 211, 213, 215, 217

conservatism, 20, 21
Entity Concept, 18, 22
footnotes, 15, 17, 22, 137, 147
Going Concern Principle, 18, 19, 22
Historical Cost Principle, 22
Materiality Principle, 20, 22
obtainable, 15, 18, 22
quantifiable, 17
Realizable Value Principle, 23
Recognition Principle, 23
relevant, 15, 23
reliable, 15, 16, 23
short-term ratios, 126, 127

224 Accounting for Non-Accountants

Stable-Monetary-Unit Concept, 23
sufficient, 15
understandable, 15, 17, 23
verifiable, 16, 24

G

general journal, 75–82, 84, 93, 98–100, 112, 119
adjusting, 87–90, 98
closing, 93–99

general ledger, 75, 82, 85–87, 90, 99, 100
Generally Accepted Accounting Principles (GAAP), 7, 11, 14, 15, 48, 66,

160, 161, 163, 166, 167
Generally Accepted Auditing Standards (GAAS), 160, 164
Governmental Accounting Standards Board (GASB), 163
gross profit, 47, 53–56, 58, 61, 62, 152–154

H

historical cost, 29, 42

I

income statement, 8, 11, 17, 20, 21, 46–63, 66, 67, 69, 70, 79, 80, 93, 97,
111, 120, 134, 148–150, 154, 155
Accrual Concept, 48
interest, 52

income taxes, 47, 48, 52, 62, 144, 145
Internal Revenue Service (IRS), 7, 12, 66, 163
inventory turnover ratio, 127, 131, 132, 134

L

liabilities, 26–43, 128, 145
current, 128–130

Index 225

long-term, 33
short-term, 33, 39, 128

N

net income, 8, 20, 46, 47, 49, 50–62, 67–71, 90, 94, 98, 99, 107, 138–141,
143–148, 154, 155

O

owner’s equity, 26, 28–30, 33, 35–43, 46, 54, 56, 57, 58, 60, 77–84, 88, 98,
99, 106, 139, 140

owner’s investment, 26, 28, 33, 35–37, 39, 40, 46, 69, 78, 79, 84–86, 91, 97,
106, 140

P

P/E ratio, 143, 146, 148
partnership, 9, 10, 12, 103, 139, 148, 162
proprietorship, 9, 10, 12, 27, 98, 102, 103, 121, 139, 148
Public Company Accounting Oversight Board (PCAOB), 160, 169

Q

quality of earnings, 137, 138
quick ratio, 126–129, 135

R

retained earnings, 8, 11, 26, 28, 33–35, 41, 43, 54, 56–59, 66, 72, 80, 86, 87,
91, 93, 94, 96–98, 106, 107, 111–123, 139

return on investment (ROI), 137, 139, 142, 148
revenue, 5, 7, 8, 12, 23, 27, 46–63, 67, 69, 70, 78, 80, 82, 83, 86, 91, 94, 96,

98, 99, 131, 150, 152, 154, 163, 168

226 Accounting for Non-Accountants

S

Sarbanes-Oxley Act of 2002, 160
Securities and Exchange Commission (SEC), 7, 14, 23, 164
statement of cash flows, 8, 11, 60, 62, 66–73

financing activities, 72, 73
investing activities, 71–73
operating activities, 69–71, 73
statement of retained earnings, 8
Statements on Auditing Standards (SASs), 160
stockholders’ equity, 111–120, 139, 148

T

treasury stock, 101, 115–121, 123
trial balance, 85–87, 90–92, 96–98, 100

W

working capital, 102, 125–127, 129–131, 135

About the Author

Dr. Wayne A. Label, CPA, MBA, PhD, was born and
raised in San Francisco. He completed his undergrad-
uate work in accounting at the University of
California, Berkeley and then went on to the
University of California, Los Angeles where he
received his MBA and a PhD in accounting. He is a
Certified Public Accountant in the state of Texas.
He has taught at several universities in the United States and abroad.
He was the Director of the School of Accountancy at the University of
Hawaii and chairman of the accounting department at the University of
Nevada, Las Vegas. Dr. Label also taught for the Harvard Institute of
International Development where he helped to start the Master’s Degree
Program in Auditing in La Paz, Bolivia. He received a Ford Foundation
grant to aid the beginning of an MBA program at the Catholic University in
Rio de Janeiro, Brazil. He has also taught accounting courses in Peru, Chile,
Mexico, and Germany.
Dr. Label has published three books on accounting, and over thirty arti-
cles in professional journals. He is currently teaching online courses for the
University of Maryland University College and UCLA. Dr. Label has also
given seminars in accounting and international business in numerous loca-
tions throughout the United States, as well as in Latin America, Europe, and
Asia.
Dr. Label divides his time between Puerto Vallarta, Mexico, and San
Diego, California.
You can learn more about Dr. Label at his website: www.waynelabel.com.
He can be contacted at [email protected].







A quick, compact and
easy-to-understand

resource for non-accountants.

Accounting for Non-Accountants is the must-have accounting guide
for all of us who have never taken an accounting class, are mystified by
accounting jargon and have no clue about balance sheets, income statements
or statements of cash flow.

Dr. Wayne Label covers it all in a style that’s easy to comprehend and apply,
so you can understand the accounting systems that will help your growing
business succeed.

Ł Understanding bookkeeping Ł Managing budgets

basics Ł Audits and auditors

Ł Balance sheets Ł Double-entry accounting
Ł Statements of cash flow
Ł Assets and liabilities Ł Accounting ratios
Ł Income statements
Ł And everything else

you need to know

For entrepreneurs or anyone who needs to

brush up on accounting fast, this book will have

you up and running in no time.

Fast, effective and easy to understand.

Dr. Wayne Label, CPA, MBA,
Ph.D., is a Certified Public
Accountant in the state of
Texas. He has taught at several
universities in the United
States and abroad. Dr. Label
has published three books on
accounting and over 30 articles
in professional journals.