ACCOUNTS DEMYSTIFIED PDF
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Using a single fixed salt also means that every user who inputs the same password will have the same hash unless the password hash is also dependent on the username. This makes it easier to attack multiple users by cracking only one hash. Short salt If a salt is too short, it will be easy for an attacker to create a rainbow table consisting of every possible salt appended to every likely password. Using a long salt ensures that a rainbow table for a database would be prohibitively large.
Rice A. Accounts Demystified: The Astonishingly Simple Guide to Accounting
Without a salt, an attacker could compute hash attempt , and then check whether that hash appears anywhere in the file.
The likelihood of a match, i. If salts are present, then the attacker would have to compute hash salt[a], attempt , compare against entry A, then hash salt[b], attempt , compare against entry B, and so on. This defeats "reusing" hashes in attempts to crack multiple passwords. Salts also combat the use of hash tables and rainbow tables for cracking passwords.
For a password file without salts, an attacker can go through each entry and look up the hashed password in the hash table or rainbow table. If the look-up is considerably faster than the hash function which it often is , this will considerably speed up cracking the file.
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However, if the password file is salted, then the hash table or rainbow table would have to contain "salt. If the salt is long enough and sufficiently random, this is very unlikely. Unsalted passwords chosen by humans tend to be vulnerable to dictionary attacks since they have to be both short and meaningful enough to be memorized.
Even a small dictionary or its hashed equivalent, a hash table is significant help cracking the most commonly used passwords. Since salts do not have to be memorized by humans they can make the size of the rainbow table required for a successful attack prohibitively large without placing a burden on the users.
More technically, salts protect against hash tables and rainbow tables as they, in effect, extend the length and potentially the complexity of the password. If the rainbow tables do not have passwords matching the length e. If found, one will have to remove the salt from the password before it can be used. The modern shadow password system, in which password hashes and other security data are stored in a non-public file, somewhat mitigates these concerns.
However, they remain relevant in multi-server installations which use centralized password management systems to push passwords or password hashes to multiple systems. We could easily draw up statements to show how other balance sheet items changed, if we wanted to.
Look, for example, at the balance sheet on page If you look at Note 9 on page , you will see that it consists of a table, the bottom right-hand corner of which shows these two figures.
This table is merely a descriptive statement of how and why the fixed assets figure has changed over the last year. All of this presumably explains why you insisted on starting with the balance sheet.
As I said earlier, the balance sheet is the fundamental principle of accounting put into practice. In fact, if you really understand a balance sheet and double entry, everything else about accounting suddenly becomes very simple. If you ever find yourself confused about how to account for a transaction, the first thing you should do is look at the impact on the balance sheet.
It also tells you how the company came by those net assets.
It tells you how and why the retained profit item on the balance sheet changed over the course of the last year. These nine entries are shown in Table 4.
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Against each entry I have put the amount by which it affected retained profit. Entries that decrease retained profit are in brackets. The list in Table 4. What could be simpler than that? On the one hand, it is too detailed. Most companies have hundreds or thousands of transactions in a year. It would be totally impracticable to list them all and very few people would have the time or inclination to read such a list anyway.
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What we do, therefore, is to group the transactions into a few simple categories to present a summary picture. What it does not show is how much stock SBL had to sell to make that profit.
The impact on retained profit would be exactly the same. Gross profit is the amount by which the sales of products affect the retained profit. By operating expenses we mean any expenses related to the operations of the company which are not already included in cost of goods sold. We exclude anything to do with the funding of the company.
Thus interest, tax and dividends, which all depend on the way the company is funded, are non-operating items. Then some of that profit is distributed to the shareholders as a dividend; the dividend is nothing to do with the profit or loss of the company.
You are per cent correct and it is very misleading, particularly for newcomers to accounting. As it happens, the Accounting Standards Board recently decided to address this issue in a different way.
I will come back to it later when we talk about Wingate. These are shown in Table 4. Four of these entries increased the amount of cash the company had; the other seven shown in brackets again decreased the cash balance. The statement in Table 4. This is your cash flow statement. Table 4. Again, we can improve the situation by grouping the entries under six different headings, as shown in Table 4. Hence there is no impact on cash. Drawing up a cash flow statement under these headings does make it easier to understand quickly where the cash in the business has come from and gone to.
The operating activities section, however, is normally written in a different way.
To understand this, we have to consider the relationship between profit and cash flow. You would then set up your stall on the pavement and sell the flowers for cash to any passing customers.
Now consider a completely different situation. On Tuesday a friend asks you to make an urgent phone call for him. You use up all the units on the card.
Accounts Demystified PDF eBook, 6th Edition
Your cash flow, however, is zero, because you neither paid out nor received any cash. Similarly, with most businesses, profit and cash flow are not the same in any particular year or month, etc.
Similarly, with businesses, total profit and total cash flow will be the same in the long run. The difference between them is just a matter of timing. These observations form the basis of a different cash flow statement.Designed to let you learn at your own pace, it explains all the rules for preparing and reporting accounting information to parties outside an organization. Benefits[ edit ] Digital dashboards allow managers to monitor the contribution of the various departments in their organization.
This is not a coincidence. The salt is eight characters, the hash is 86 characters, and the password length is unlimited.
Then check your answers against my list [Table 5. The question, of course, is whether these are the right parameters to be looking at. This money is gone for ever.
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