Sunday, August 31, 2008

Chapter 4 Completing the Accounting Cycle

Pacioli's portrait, a painting by Jacopo de' B...Image via Wikipedia

What is a classified balance sheet?
A classified balance sheet groups the accounts into significant groups. Assets are classified into (1) current assets (2) long-term investments (3) plant property and equipment (4) intangible assets. Long-term liabilities are classified into current and long-term liabilities.

What are the four steps for closing entries?
The four steps for closing the books are (1) close the revenues to the income summary (2) close the expenses to the income summary (3) close the income summary to the capital account, and (4) close the Drawing account to the capital account.

What are current assets?
Current assets are assets that may be converted into cash within a one year period.

What are current liabilities?
Current liabilities are liabilities that must be paid within a one year period.

What type of account is the Income Summary?
The Income Summary is an owner’s equity account that is set up for a very period of time so that we may transfer the net income to the capital account.

What are Intangible Assets?
Intangible assets are assets that have no physical substance; yet, they have value and are carried in the balance sheet.

What do we mean by Liquidity?
Liquidity means having sufficient amount of cash to pay bills.

What are Permanent or Real accounts?
Permanent accounts are accounts that are never closed. They include assets, liabilities, and the capital account.

What is a post-closing trial balance?
It is a trial balance that is prepared after the closing entries have been posted.

How do you find Owner’s Equity?
We find owner’s equity by subtracting liabilities from assets.

What are Temporary or Nominal accounts?
Temporary accounts are accounts that must be closed at the end of an accounting period. They include Revenues, Expenses, and the Drawing account.

What is a Worksheet?
It is a working paper that shows the trial balance amounts, the adjustments, the income statement and the balance sheet. It isn’t a permanent record, since accountants have the option to use it or not.

What are the standard classifications of a classified balance sheet?
Assets are subdivided into: Current Assets, Long Term Investment, Property Plant and Equipment, and Intangible Assets. Liabilities are subdivided into: Current liabilities and Long Term liabilities.

What are long-term investments?
When a company has excess cash—that is, more that it needs for operations—this cash is used to buy stocks, bonds, certificates of deposit, commercial paper, or other investments. Generally, long-term investments may not be cashed in before a year.

What are the two forms in which a Balance Sheet may be presented?
The balance sheet may be presented in two forms: Account form and Report form.

Ch1 Accounting in Action

Ch2 Recording Process

Ch3 Adjusting the Accounts

Ch4 Completing the Accounting Cycle

Ch5 Merchandising Operations

Ch6 Inventories

Ch7 Accounting Information Systems

Ch8 Internal Control and Cash

Ch9 Accounting for Receivables

Ch10 PP&E, Natural Resources, and Intangible Assets

Ch11 Current Liabilities and Payroll

Ch12 Partnerships

Ch13 Corporations

Ch14 Corporations:Dividends, RE

Ch15 Long Term Liabilities

Ch16 Investment

Ch17 Statement of Cash Flows

Ch18 Financial Statement Analysis

Plato and Accounting

Price/Earnings Ratio

Plant Assets

Luca Pacioli and DaVinci

The secrets of 'no-doze' prose:
Mary Duffy's Sentence Openers

Tuesday, August 12, 2008

Epilogue to Mary Duffy's Writing Guide: Writing Con Brio

They have been at a great feast of languages and stol’n the scraps.
Love’s Labour’s Lost, Shakespeare

The longing not to die, the hunger for personal immortality, the effort by which we strive to persevere in our own being, this is the emotional basis for all knowledge and the intimate point of departure for all human philosophy.
The Tragic Sense of Life, Unamuno

You have now reached the end of this Book. After reading and studying the preceding chapters you should be able to write riveting prose.

When Nietzsche proclaimed, “Only as an aesthetic phenomenon is existence and the world forever justified,” he assigned representation —in particular language with all its tropes and components— the supreme value of being aesthetic.

When Polonius asked Hamlet, “What do you read, my Lord?” the prince answered: “Words—words.” But scrupulous writers must give more than just words for the public to read; they must arrange words in a manner that depict pathos, violence, and the rage and range of all human emotions.

Grammar, syntax, and rhetoric are but the tools of writing or the aesthetic phenomenon. “Language is the house of being,” Martin Heidegger proclaimed, and by that he meant that humans would never be homeless for they carry their homes within—which is their soul!

It is with words that we capture empirical reality. It is with words that we represent not only that empirical reality, but also that magical reality that is fiction. But none of this can be achieved if the writing lacks the variety, the rhythm, the suspense, and tension that the concepts we have studied provide.

How do you make a doughnut? You begin with a hole … likewise with writing.

There’s a certain emptiness, a void out there in the phenomenal world that only you —the writer who has felt that vacuum— can fill up, and do it with heart and mind.
What we ask is that the writer be daring, that the writer be different, or eccentric if you will.

By looking at reality with skepticism, new ideas will form, just as when Johannes Kepler discovered that planetary bodies moved in elliptical orbits as opposed to the conventional wisdom of circularity. That eccentricity paved the way for Galileo, Newton, and Einstein.

Writers must fill up the gaps and omissions—by means of their artistry—with effective, moving language. To do this writers should avoid the trap that normal speech sets: the pattern Subject-Verb-Complement, for an endless chain of this type of sentence is a recipe for disaster.

Roland Barthes in The Rustle of Language speaks of specialized realms: “on one side, Science, Reason, Fact; on the other, Art, Sensibility, Impression.” The truth is that humans own the sea of language into which the writer dives, floats, swims, or flounders, with both reason and art. With sweet voice and art the writer can create, inform, entertain, and enchant, just as Homer made the Sirens beguile Ulysses—and us.

And just as Calypso tempted Ulysses with knowledge, writers should also tempt readers not only with plain, ordinary knowledge—of the flora, fauna, and artifacts of this universe—but also with wisdom, with the unusual, with probing of the extraordinary.

Whether for good or evil, whether fact or fable, writers leave their wisdom in books and in the ultimate analysis, books are the repository of mankind’s knowledge.
It is my fervent desire that you, dear reader, study this humble guide and use some of the techniques. And that this should be done with care and love of language, with the same passion that Scott Fitzgerald, Harper Lee, Norman Mailer, John Updike, Scott Peck, Michiko Kakutani and other masters show in their craft, with God within (entheos)—with the ideals of beauty that Saint Thomas Aquinas and The Greeks favored, lest we say:

They have been at a great feast of languages and stol’n the scraps.

Every time I walk in front of Carnegie Hall, in my meanderings, I chuckle when I think of the answer a New Yorker gives to a tourister’s question,

“How do you get to Carnegie Hall?
“Practice, practice, practice.”

Novelist Mario Vargas Llosa in Letters to a Young Novelist writes:
… no one can teach anyone else to create; at most, we may be taught to read and write. The rest we must teach ourselves, stumbling, falling, and picking ourselves up over and over again.

We are all born with the power to see the world in full color and splendor. We don’t learn that; what we can learn is to stimulate this mysterious power and translate it into words—we can do it! It takes imitation and practice.

Imitate and practice the lessons of the great masters as we’ve highlighted in this book. With that experience behind you, the force of your own style will emerge.
Now it is up to you to satisfy the urge to write, to create, and so outdistance the ‘state of nature’ Hobbesian world—where no arts, letters, or science exist—I mention in the opening chapter. Writing requires that you read, writing requires that you think, but above all writing requires that you write.

“All men by nature desire to know,” thus Aristotle begins his Metaphysica. Your readers desire to know what you have to say. Write and fulfill their desire. You have a soul, a mind, and a heart full of ideas and feelings.

So write you must. To make a good omelet you need fresh ingredients, but more than anything else: you need to crack the eggs.
So, get cracking.

Mary Duffy's Writing Guide

Back to main page

Sunday, August 10, 2008

Jason Lezak: Gold for the Unsung Hero

To believe that Americans love celebrities for their rough individualism is a myth: Americans love the underdog and the unsung hero.

Years from now Jason Lezak will be remembered as the unsung hero of the Beijing Olympics. Like Philoctetes--the Greek hero who killed Paris-- Lezak destroyed the French celebrity and record holder Alain Bernard. Given that Bernard had been taunting the American team by declaring to the press that they (the French team) would "smash" the Americans, Jason's victory tastes even sweeter.

Ian Fleming's Goldfinger said of gold: "I love its color, its brilliance, its divine heaviness."

Well, divine heaviness indeed, for Jason Lezak has joined the ranks of American Olympic Gods--the noble unsung heroes.

Wednesday, August 6, 2008

Works Cited in Mary Duffy's Writing Guide

Works Cited in Mary Duffy’s Writing Guide

Allen, Woody. Mere Anarchy. New York: Random House, 2007.
Aristotle. Poetics and Rhetoric. New York: Barnes and Noble Classics, 2005.
Auchincloss, Louis. Writers and Personality. Columbia: University of North Carolina Press, 2005.
Augustine. The Confessions of Saint Augustine. Trans. John K. Ryan. New York: Doubleday, 1960.
Austen, Jane. Pride and Prejudice. Kent: Hachette Partworks Ltd. and C.I.L., 2001.
Austen, Jane. Sense and Sensibility. New York: Barnes and Noble Books, 2003.

Block, Lawrence. Small Town. New York: HarperCollins Publishers, Inc., 2003.
Borges, Jorge Luis. Collected Fictions. Trans. Andrew Hurley. New York: Penguin Group, 1998.
Borges, Jorge Luis. Selected Non-Fictions. Trans. Esther Allen, Suzanne Jill Levine, and Eliot Weinberger. New York: Penguin Group, 2000.
Bronte, Charlotte. Jane Eyre. New York: Miramax Books/Hyperion, 1996.
Bronte, Emily. Wuthering Heights. New York: Barnes and Noble, Inc., 1993.
Cervantes, Miguel de. Don Quixote. Trans. Edith Grossman. New York: HarperCollins Publishers, Inc., 2003.
Christensen, Francis, and Bonniejean Christensen. Notes Toward a New Rhetoric. New York: Harper & Row, 1978.
Collins, Wilkie. The Moonstone. New York: Modern Library, 2001.
Coyle, Harold. More Than Courage. New York: Tom Doherty Associates, LLC., 2003.
Dickens, Charles. David Copperfield. Oxford: Oxford University Press, 1987.
Dickens, Charles. Nicholas Nickleby. New York: Penguin Books, 1978.
Dionysius of Halicarnassus. The Critical Essays. Trans. S. Usher. Vol II. Cambridge: Loeb-Harvard UP, 1985.
Erasmus, Desiderius. On Copia of Words and Ideas. Milwaukee: The Marquette University Press, 1963.
Esquivel, Laura. Like Water for Chocolate. Trans. Carol Christensen and Thomas Christensen. New York: Anchor Books, 1995.
Fahnestock, Jeanne. Rhetorical Figures in Science. New York: Oxford University Press, 1999.
Faulkner, William. The Sound and the Fury. New York: W.W. Norton & Company, 1994.
Flaubert, Gustave. Madame Bovary. New York: Barnes & Noble, Inc., 1993.
Franzen, Jonathan. The Corrections. New York: Picador USA, 2001.
Freud, Sigmund. The Basic Writings. New York: The Modern Library, 1995.
Frye, Northrop. The Anatomy of Criticism. Princeton: Princeton University Press, 2000.
Garcia Marquez, Gabriel. One Hundred Years of Solitude. Trans. Gregory Rabassa. New York: HarperCollins Publishers, 1991.
George, Elizabeth. In Pursuit of the Proper Sinner. New York: Bantam Books, 2000.
Gibbon, Edward. The Decline and Fall of the Roman Empire. New York: The Modern Library, 2005.
Goldsmith, Oliver. The Vicar of Wakefield. New York: Penguin Books, 1986.
Grafton, Sue. ‘A’ is for Alibi. Orlando: Holt, Rinehart & Winston, 1987.
Grafton, Sue. ‘B’ is for Burglar. Orlando: Holt, Rinehart & Winston, 1986.
Grafton, Sue. ‘C’ is for Corpse. New York: St. Martin’s Paperbacks, 2005.
Grafton, Sue. ‘G’ is for Gumshoe. New York: Ballantine Books, 1990.
Greenspan, Alan. The Age of Turbulence. New York: The Penguin Press, 2007.
Grisham, John. A Painted House. New York: Bantam Dell, 2003.
Guerrero, Marciano. The Poison Pill. Lincoln: iUniverse, 2006.
Halberstam, David. The Best and the Brightest. New York: The Random House Publishing Group, 1992.
Hawthorne, Nathaniel. The Blithedale Romance. New York: Penguin Books, 1983.
Hawthorne, Nathaniel. The Marble Faun. New York: Penguin Books, 1990.
James, William. Principles of Psychology. 2 vols. Rpt. New York: Dover, 1950.
King, Stephen. Cell. New York: Simon & Schuster, 2006.
King, Stephen. On Writing. New York: Pocket Books, 2002.
Lee, Harper. To Kill a Mockingbird. New York: Warner Books, 1982.
Lewis, Sinclair. Elmer Gantry. New York: Signet Classic, 1967.
Llosa Vargas, Mario. Letters to a Young Novelist. Trans. Natasha Wimmer. New York: Farrar, Straus and Giroux, 2002.
Locke, John. An Essay Concerning Human Understanding. New York: Barnes and Noble, Inc., 2004.
Lowry, Malcom. Under the Volcano. New York: HarperCollins Publishers, Inc., 1984.
McNaught, Judith. Almost Heaven. New York: Pocket Books, 1990.
Murakami, Haruki. The Wind-Up Bird Chronicle. Trans. Jay Rubin. New York: Vintage Books, 1998.
Nabokov, Vladimir. Speak, Memory. New York: Random House, Inc., 1989.
Ortega y Gasset, Jose. The Dehumanization of Art. Princeton: Princeton University Press, 1968.
Sabatini, Rafael. Captain Blood. New York: Barnes and Noble Publishing, Inc., 2004.
Salinger, J. D. The Catcher in the Rye. New York: Little, Brown and Company, 1991.
Stendhal. The Red and the Black. Trans. Lloyd C. Parks. New York: Signet Classic, 1970.
Stevenson, Robert Louis. The Strange Case of Dr. Jekyll and Mr. Hyde. New York: Barnes and Noble Books, 2004.
Stoker, Bram. Dracula. New York: Barnes and Noble Books, 2003.
Thackeray, William Makepeace. The History of Henry Esmond. New York: Walter J. Black.
Thackeray, William Makepeace. The History of Pendennis. New Century Library.
Tolstoy, Leo. Anna Karenina. New York: Barnes and Noble Publishing, Inc. 2003.
Tolstoy, Leo. War and Peace. New York: W. W. Norton & Company, 1996.
Trollope, Anthony. An Autobiography. Oxford: Oxford University Press, 1999.
Twain, Mark. A Connecticut Yankee in King Arthur’s Court. New York: Bantam Dell, 1981.
Unamuno, Miguel de. Tragic Sense of Life. Trans. J. E. Crawford Flitch. New York: Barnes and Noble Publishing, Inc., 2006.
Wharton, Edith. The Writing of Fiction. New York: Simon & Schuster, 1997.
Wollstonecraft, Mary. Mary. Oxford: Oxford University Press, 2007.
Woolf, Virginia. A Room of One’s Own. New York: Harcourt, Brace & World, Inc.,
Woolf, Virginia. Mrs. Dalloway. New York: Harcourt, Inc., 1981.
The writing techniques I employ in this article are all explained in Mary Duffy's bestseller and indispensable writing manual:


Back to main page