Accountancy For Retail Traders

Author : United States; Federal Trade Commission
Publisher : Forgotten Books
ISBN 13 : 9781330292587
Total Pages : 23 pages
Book Rating : 4.2/5 (925 download)

DOWNLOAD NOW!

Download or read book A System of Accounts for Retail Merchants written by United States; Federal Trade Commission and published by Forgotten Books. This book was released on 2015-06-13 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from A System of Accounts for Retail Merchants: July 15, 1916 There is a tendency among retail merchants to conduct their businesses without an adequate system for determining their costs. This condition carries with it various undesirable results. In the first place, the merchant is unable to price his goods intelligently and conduct his business upon sound business principles. In the second place, he is unable, when seeking credit, to produce a correct statement of his financial condition which would enable a banker to extend to him the full credit to which he is entitled. He thereby limits the possible expansion of his business. There are several forces at work which compel the retail merchant, if successful, to keep books, and the better and more comprehensive his methods the greater chance he has of being successful. The first of these forces is, of course, competition, which at times compels him to make close prices. The second, and one of vital importance, is the attitude of the banks regarding the granting of credit. Banks are paying more and more attention to the accounting methods used by the merchant to whom they extend credit. They are willing to give larger loans and very often more liberal terms to the merchant who keeps his books in a way that enables him to show the bank at any time just how his business is progressing. A merchant who can show progress will undoubtedly receive more consideration with the same amount of assets than one who can not. Even if he is successful but can not show it because of his bookkeeping methods the bank will not consider him a desirable credit risk. Another very important point to which the bank gives consideration is whether the prospective borrower is making proper provisions for depreciation on stock, buildings, and fixtures, and his books should be so arranged as to show the amount of these provisions. No merchant can be said to be managing his business properly unless adequate provision is made for depreciation. The system of accounts outlined in this bulletin has been devised to meet the requirements of retail merchants. The aim has been to devise the least involved system which will give the information essential to successful management. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.