The Accounting Game: Basic Accounting Fresh from the Lemonade Stand
"Fantastic Learning Tool...Don't let this book title fool you. It is not an oversimplification of accounting and financial principles. It is, however, a serious and very effective examination of a very small but progressively complex business. There are not many books available on the market that make a complex and dry subject understandable and even fun. This book successfully does just that."
The Clearest Explanation Ever of the Key Accounting Basics
The world of accounting can be intimidating. Whether you're a manager, business owner or aspiring entrepreneur, you've likely found yourself needing to know basic accounting...but baffled by complicated accounting books. What if learning accounting could be as simple and fun as running a child's lemonade stand? It can.
The Accounting Game presents financial information in a format so simple and so unlike a common accounting textbook, you may forget you're learning key skills that will help you get ahead! Using the world of a child's lemonade stand to teach the basics of managing your finances, this book makes a dry subject fun and understandable. As you run your stand, you'll begin to understand and apply financial terms and concepts like assets, liabilities, earnings, inventory and notes payable, plus:
--Interactive format gives you hands-on experience
--Color-coded charts and worksheets help you remember key terms
--Step-by-step process takes you from novice to expert with ease
--Fun story format speeds retention of essential concepts
--Designed to apply what you learn to the real world
The revolutionary approach of The Accounting Game takes the difficult subjects of accounting and business finance and makes them something you can easily learn, understand, remember and use!
"The game approach makes the subject matter most understandable. I highly recommend it to anyone frightened by either numbers or accountants."
-John Hernandis, Director of Corporate Communications, American Greetings
Real businesspeople borrow money from a real bank. After breakfast, you put on clean clothes and brush your hair. Then you get Mom or Dad to drive you to your neighborhood bank. You show the banker your financial statements. The banker is dressed in a really nice suit that is incapable of attracting even a speck of dust. Meanwhile, while clean, you’re dressed in sneakers, jeans, and a T-shirt that says KIDS RULE!! As you sit in a chair that’s too big, you have to remind yourself to stop
repeat. “We left our money at home,” they explain. “But we’re good for it, we promise!” Since they’re friends, you let them buy their lemonade on credit. By the end of the afternoon, your arm is about to fall off from pouring so much lemonade. But it’s all worth it when you total up your sales. 60 glasses for 50 cents each 40 glasses cash and 20 glasses on account What’s your total sales? Thirty dollars. Twenty dollars Cash. Ten dollars on Account. Let’s review what happened here. Did
back show up on the Income Statement? Yes, interest. Interest expense for how much? $2.00 Is the Cash Statement affected? Yes, because cash went out. Now, $27 went out. We didn’t borrow, but we paid back the bank $25 for what? The principal. So, on the next Cash Statement, record the pay back—$25 of the principal on borrow/payback (Bring forward the numbers from page 109.) In addition, put minus $2 on the Expenses Paid line. Okay. We want to introduce one more thing before closing out this
parents gave you. You even spent your own hard-earned money, on something that you promised yourself you’d keep forever. But now, you’re home. And—guess what?!—you have to go back to school in a couple of weeks. Summer’s almost over. Time to shake out the mental cobwebs and get ready for reading, writing, and math! In fact, with school just around the corner, you decide to quit the lemonade business, at least for this summer. Yes, sad to say, it’s time to close up shop, pay our bills, and
Hopefully, you came out with a Unit Cost of twenty cents. (Divide $12.00 by 60 glasses.) You now know that it costs you twenty cents to produce one glass of lemonade. Not just a glass of ordinary lemonade, but, in your humble opinion, the world’s best glass of lemonade. Then you ask yourself, “What will people pay for a glass of the world’s best lemonade?” You certainly need to charge more than it cost you, otherwise you won’t stay in business for long. But how much more? You ask around. You