1. Welcome to Financial Accounting
2. Terms and Concepts

  • Overview of Financial Reports: Balance Sheet
  • Income Statement
  • Statement of Cash Flows 
  • Introduction to Concepts: Entity
  • Money Measurement
  • Going Concern
  • Consistency
  • Materiality 
  • Quality Attributes: Relevance and Reliability 
  • Accrual Accounting: Accrual vs. Cash-basis 
  • GAAP
3. The Balance Sheet

  • Assets, Liabilities, Owner’s Equity, and the Accounting Equation 
  • Concepts: Dual Aspect
  • Historical Cost 
  • Recording Transactions 
  • Ratios: Current Ratio
  • Total Debt to Equity Ratio
4. Income Statement

  • Link to Balance Sheet: Retained Earnings
  • Dividends 
  • Concepts: Realization
  • Matching
  • Conservatism 
  • Recording Transactions: Cash and Credit Sales
  • Expenses: Cost of Goods Sold; Salaries; Rent and Utilities; Depreciation and Amortization; Interest and Taxes 
  • Ratios: Gross Margin Percentage
  • Return on Sales Percentage
5. Accounting Records

  • Double-entry Accounting 
  • Journal Entries and the Ledger: Debits and Credits
  • T-Accounts 
  • Adjusting and Closing Entries 
  • Preparing the Balance Sheet and Income Statement
6. The Statement of Cash Flows

  • Direct Method vs. Indirect Method 
  • Cash Flows from Operating, Investing, and Financing Activities 
  • Net Income and Operating Cash Flows 
  • Relation to the Balance Sheet 
  • Interpretation 
  • Analysis of Indirect Statement
7. Revenue and Receivables

  • Unredeemed Gift Certificate
  • Deferred Revenue
  • Redeeming Certificates
  • Bad Debts
  • Refunds
  • Prompt Payment Discounts
  • Adjusting Allowances: Month’s End
  • Bad Debt Ratio
8. Inventories and Cost of Sales

  • Bought Merchandise Flow
  • Merchandise and COGS
  • Jam Production
  • Costs
  • Product Costs
  • Inventory Accounts
  • Raw Materials
  • Work-in-Process
  • Finished Goods
  • Tracking Inventory
  • Cost of Goods Sold
  • Price Change
  • Inventory Valuation
  • Flow Assumptions
  • Cost vs. Physical Flows
  • FIFO
  • LIFO
  • Inventory Write-down
  • Inventory Ratios: Turnover and Days Inventory
9. Depreciation and Non-Current Assets

  • Acquisition Cost
  • Asset Usage
  • Depreciation
  • Accumulated Depreciation
  • Straight-line and Accelerated Methods
  • IFRS Allowed Alternative
  • Improvements and Repairs
  • Asset Sales
  • Intangibles
  • Capitalizing
  • Accounting and Amortization
  • Ratio: Turnover by Industry
10. Liabilities and Financing Costs

  • Executory Contracts
  • Zero Coupon Debt
  • Future Value
  • Present Value
  • Semi-annual Compounding
  • Loan Value
  • Leases: Capital Lease and Operating Lease
  • Contingent Liabilities
  • Debt Ratings
11. Investments & Investment Income

  • Investment Motivations
  • Control
  • Marketable Securities: Intent, Hold-to-Maturity, Trading, and Available-for-Sale
  • Business Acquisitions: Purchase Price, Net Assets Fair Value, Goodwill, Recording Acquisition, Income Effects
12. Deferred Taxes and Tax Expense

  • Management Challenges
  • Tax vs. Financial Reporting
  • Tax Expense vs. Taxes Due
  • Deferred Tax Accruals
  • Deferred Tax Liabilities
  • Deferred Tax Assets
  • Current and Deferred Tax Expense
13. Owner’s Equity

  • Management Challenges
  • Common Stock
  • Preferred Stock
  • Stock Repurchases
  • Dividends
  • Stock Splits
  • Stock Options
  • Comprehensive Income
  • Equity Ratios: ROE Drivers