Financial Accounting Summary - 13804 Words

Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet, income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits, credits, transaction journal entries, adjusting entries, closing entries, t-accounts, trial balances and financial statements) 4 Balance sheet 6 How are assets and liabilities valued on the balance sheet? 6 What are the components of stockholders’ equity section? 6 How is US GAAP different†¦show more content†¦32 Stockholders’ Equity 33 What is c/s and APIC? What is par value? 33 What is Retained Earnings? What is Accumulated Deficit? 33 What is Treasury Stock? How does the purchase and resale of treasury stock get recorded? On the B/S? On the Income Statement? On the Statement of Cash flows? 33 Why do companies repurchase their shares? 34 What is â€Å"Other Comprehensive Income†? 34 What is preferred stock? 35 How does dividend get recorded? 35 What is a cumulative preferred stock? What is a convertible preferred stock? 35 What is a convertible debt security? How does it get recorded on the financials? 35 Acquiring marketable securities and companies (MA accounting) 37 What are the cost method, equity method, and consolidation? 37 How do you treat dividends received in the equity method? 40 What is minority interest? Where does it show up on the company’s financials? 40 What is the treatment for MA transactions? 41 What is goodwill? How is it treated in the US and outside of the US? 41 Effect of accounting transactions on the statement of cash flows 42 Ratio Analysis 45 What are ratios? What should you understand about ratios? 45 What are the major ratios? 45 What is the DuPont equation? What information does it provide? 45 What are common size income statements and common size balance sheets? 45 How do you identify industries based on the ratios? 45 Financial Statement Basics Understanding of the 3 financial statements – (balance sheet,Show MoreRelatedBridging The Great Divide : The Merger Of The Financial Accounting Standards Board1626 Words   |  7 PagesBridging the Great Divide: The Merger of the Financial Accounting Standards Board and the International Accounting Standards Board As the 21st continues, the economy becomes more entrenched in globalization. A toy store business in America may have multiple suppliers from China; or an American motorcycle manufacturing business may export internationally to Europe, Australia, and Asia. 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