Companies must report both net income and comprehensive income and reconcile the difference between the two. The following items are part of comprehensive income:
Changes in the market value of securities available for sale (described in Chapter 12).
Chapter 13 - Statement of cash flows. After studying this chapter, you should be able to: Classify cash flow statement items as part of net cash flows from operating, investing, and financing activities; report and interpret cash flows from operating activities using the indirect method; analyze and interpret the quality of income ratio;...
Chapter 14 - Partnerships: Formation and operation. After completing this unit, you should be able to: Discuss the advantages and disadvantages of the partnership versus the corporate form of business; describe the purpose of the articles of partnership and list specific items that should be included in this agreement; prepare the journal entry to record the initial capital investment made by a partner;...
Chapter 12 - Income and changes in retained earnings. Upon completion of this lesson, the successful participant will be able to: Describe how discontinued operations, extraordinary items, and accounting changes are presented in the income statement; compute earnings per share; distinguish between basic and diluted earnings per share;...
Chapter 12 - Financial statement analysis. In this chapter, you will learn: Perform vertical analysis, perform horizontal analysis, use ratios to analyze a company’s risk, use ratios to analyze a company’s profitability, distinguish persistent earnings from one-time items, explain quality of earnings and distinguish between conservative and aggressive accounting practices.
Following are three separate transactions that pertain to prepaid items. Evaluate each item and prepare the journal entries that would be needed for the initial recording and subsequent end-of-20X3 adjusting entry. Assume the company uses the balance sheet approach, and the initial recording is to an asset account. The company has a calendar year-end and does not make any adjusting entries prior to December 31.
Chapter 12 - Financial statement analysis. After studying this chapter, you should be able to: Understand the concept of earning power and indicate how irregular items are presented, discuss the need for comparative analysis and identify the tools of financial statement analysis, explain and apply horizontal analysis, explain and apply vertical analysis,...
Chapter 12 - Statement of cash flows. To make informed investment and credit decisions, financial statement users need information to help them assess the amounts, timing, and uncertainty of a company’s prospective cash flows. This chapter explains more about the items reported on the statement of cash flows and describes a more practical way to prepare the statement than analyzing every entry in the Cash account.
This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies was issued by the International Accounting Standards Committee in December 1993. It replaced IAS 8 Unusual and Prior Period Items and Changes in Accounting Policies (issued in February 1978).
Lecture Principles of financial accounting (2/e) - Chapter 6: Inventories and cost of sales. After completing this chapter you should be able to: Identify the items making up merchandise inventory, identify the costs of merchandise inventory.
Chapter 13 - Accounting for corporations. After completing this chapter you should be able to: Identify characteristics of corporations and their organization, explain characteristics of, and distribute dividends between, ordinary and preference shares, explain the items reported in comprehensive income and equity,...
In this chapter, the learning objectives are: Cash-basis versus accrual income measurement, revenue recognition under accrual accounting, the matching principle and recognizing expenses under accrual accounting, the difference between product and period costs, income statement format and classification, distinctions of special items on the income statement,...
Chapter 12 - Statement of cash flows. After studying this chapter, you should be able to: Classify cash flow statement items as part of net cash flows from operating, investing, and financing activities; report and interpret cash flows from operating activities using the indirect method; analyze and interpret the quality of income ratio.
Chapter 5 - Reporting and analyzing inventories. After studying this chapter you will be able to: Identify the items making up merchandise inventory, identify the costs of merchandise inventory, analyze the effects of inventory methods for both financial and tax reporting, analyze the effects of inventory errors on current and future financial statements, assess inventory management using both inventory turnover and days’ sales in inventory.
Chapter 11: Reporting and analyzing equity. After completing this unit, you should be able to: Identify characteristics of corporations and their organization; explain characteristics of, and distribute dividends between, common and preferred stock; explain the items reported in retained earnings; compute earnings per share and describe its use; compute price-earnings ratio and describe its use in analysis;...
This term refers to a deceptive commercial practice of advertising a
low-priced item to attract customers, then telling them that the product
is out of stock and persuading them to buy a more expensive article.
"This store is famous for its bait and switch tactics."
You have something you want to sell on the Internet. Maybe it's a book, or a CD or
a piece of software you wrote. You are in luck. The time has never been better.
Internet shopping has become a mainstream activity. Increasing numbers of people
are willing to open the wallet to purchase items or services over the Net.
"But," you say, "How do I collect the money from the customer?"
Good question. There are several methods of collecting monies from online sales.
Many online merchants offer 2-3 choices of payment methods so customers will
The basis of all business is buying and selling goods or services or a combination
of the two. The word product is these days used for both goods and services.
A television is a product and a particular type of insurance scheme may be
described by the provider as a product. For the purposes of this Report the word
product will be used in the former sense. Products are designed and produced
and sold to customers as end items in themselves.
The world suffers no shortage of accounting texts. The
many I’ve read over the past 25 years have helped me audit,
prepare, use, and explain corporate financial statements.
Missing in this lettered journey has been a work that
provides context for accounting’s six divisive issues: inflation,
volatility, intangibles, debt, options, and earnings. A brief history
of accounting can fill this void.
Students and practitioners study textbooks designed to explain
the how’s of accounting.
Independent, private-sector organization whose trustees appoint the
members, provide funds, and exercise general oversight of the
Financial Accounting Standards Board (FASB), Governmental
Accounting Standards Board (GASB), and their respective advisory
Official promulgations by the Financial Accounting Standards Board
and, if not superseded, part of generally accepted accounting principles.