PowerPoint – Lesson 1
Exercises – Lesson 1
Introduction to GAAP
Accounting Standard Setting Process
Financial Accounting Standards Board (FASB)
Emerging Issues Task Force (EITF)
Financial Accounting Foundation (FAF)
Accounting Standards Codification (ASC)
International Accounting Standards Board (IASB)
FASB vs. IASB
FASB Conceptual Framework
SEC Acts of 1933 and 1934
Sarbanes-Oxley Act (SOX)
Public Company Accounting Oversight Board (PCAOB)
Board of Directors
Audit Committee
The 4 Types of Audit Opinions
Going Concern
Internal Auditor vs External Auditor
The Role of an Analyst
Sell-side Analyst vs Buy-side Analyst
PowerPoint – Lesson 2
Exercises – Lesson 2
The Basic Accounting Equation
Assets
Liabilities
Stockholders’ Equity
Introduction to the Balance Sheet
Example of a Balance Sheet
Income Statement Overview: Part 1
Revenue
Expenses
Gains and Losses
Earnings
Sales vs. Profit
Single-step Income Statement
Connection between BS & IS
How the Income Statement and Balance Sheet are Connected
Cash Flow from Operating Activities vs Net Income
Retained Earnings
Retained Earnings vs. Net Income
Retained Earnings Example
Things that affect Retained Earnings
T-Account for Retained Earnings
Retained Earnings Formula
Restrictions of Retained Earnings
The Statement of Retained Earnings
The Statement of Stockholders’ Equity
PowerPoint – Lesson 3
Exercises – Lesson 3
The Accounting Cycle
Debits and Credits
Double Entry Accounting
Journal Entry Format
Recording a Journal Entry
Practice with Journal Entries
Journal Entry for Goods Sold on Credit
Journal Entry to Record a Sale
Journal Entry for Accounts Payable
Journal Entry for Supplies
T accounts
Preparing a Trial Balance
PowerPoint – Lesson 4
Exercises – Lesson 4
Cash vs Accrual Accounting
5 Steps of Revenue Recognition (ASU 2014-09)
Introduction to Adjusting Journal Entries (AJE’s)
Prepayment AJE’s
Accrual AJE’s
Nominal vs. Real Accounts
Closing Entries
Post-closing Trial Balance
Reversing a Journal Entry
PowerPoint – Lesson 5
Exercises – Lesson 5
Current Assets
Short-term Investments
Noncurrent Assets
Long-term Investments
Current Liabilities
Long-term Liabilities
Classified Balance Sheet
Classified Balance Sheet Example
Comparative Balance Sheet
Prepaid Expenses
Prepaid Rent
Prepaid Insurance
Journal Entry for Prepaid Insurance
Usefulness of the Balance Sheet
Limitations of the Balance Sheet
Balance Sheet vs. Income Statement
Can Stockholders’ Equity be Negative?
PowerPoint – Lesson 6
Exercises – Lesson 6
Gross Sales vs. Net Sales
Sales Discounts
Sales Returns and Allowances
Journal Entry for Sales Returns
Irregular Items
Discontinued Operations
Intraperiod Tax Allocation
Restructuring Charges
Multi-step Income Statement, part 1
Multi-step Income Statement, part 2
Multi-step Income Statement Example
Income Statement Overview: Part 2
Purpose of the Income Statement
Limitations of the Income Statement
Calculating Gross Profit (aka Gross Margin)
Comprehensive Income
Other Comprehensive Income (OCI)
Types of OCI
The Statement of Other Comprehensive Income
Accumulated OCI
Earnings Quality
Earnings Management
PowerPoint – Lesson 7
Exercises – Lesson 7
Cash and Cash Equivalents
How to Account for Petty Cash
PowerPoint – Lesson 8
Exercises – Lesson 8
Receivables
Accounts Receivable
Percentage-of-Sales Method for Estimating Bad Debts
Journal Entry for a Bad Debt Recovery
Collecting Accounts Receivable Already Written Off
Aging Method for Estimating Uncollectible Accounts
Current Expected Credit Loss
Why Receivables Might Grow Faster than Sales
PowerPoint – Lesson 9
Exercises – Lesson 9
Inventory Defined
Perpetual Inventory
Periodic Inventory
Periodic vs Perpetual Inventory
Average Cost Inventory Method
Average Cost Periodic Inventory Method
Average Cost Perpetual Inventory Method
FIFO Inventory Method
FIFO Periodic Inventory Method
FIFO Perpetual Inventory Method
LIFO Inventory Method
LIFO Periodic Inventory Method
LIFO Perpetual Inventory Method
LIFO Liquidation
Dollar Value LIFO
LIFO Reserve (LIFO Effect)
Advantages of LIFO
Disadvantages of LIFO
FIFO vs LIFO vs Weighted Average Cost
Retail Inventory Method
Calculating Net Realizable Value of Inventory
Lower of Cost or Market Rule for Valuing Inventory
Lower of Cost or Market Rule Example
Lower of Cost or Net Realizable Value
Inventory Writedown Journal Entry
Inventory Writedown Allowance Method
Recording Inventory at Net Realizable Value
Inventory: IFRS vs. U.S. GAAP
PowerPoint – Lesson 10
Exercises – Lesson 10
Property, Plant, and Equipment Defined
Capital Expenditures vs Operating Costs
Capitalization of PP&E Acquisition Costs
Capitalization of PP&E Subsequent Costs
Depreciation
Straight Line Depreciation Method
Double Declining Balance Depreciation Method
Straight-line vs Double-declining Balance Method
Sum of the Years’ Digits
Units of Production Depreciation Method
Journal Entry for Depreciation
Depreciation Expense vs. Accumulated Depreciation
Depreciation Change in Useful Life
Fixed Asset Disposal
Fixed Asset Retirement
Impairment of PP&E
Nonmonetary Exchange
Nonmonetary Exchange that Lacks Commercial Substance
Nonmonetary Exchange with a Loss
Depletion
PowerPoint – Lesson 11
Exercises – Lesson 11
Intangible Assets
Goodwill in Accounting, Defined and Explained
How to Calculate Goodwill for Amazon’s Acquisition of Ring
Goodwill Impairment Single Step Test ASU 2017-04
Accounting for Cryptocurrency
PowerPoint – Lesson 12
Exercises – Lesson 12
Accounting for Investments (Equity and Debt Securities)
Amortized Cost of a Held to Maturity Investment
Held-to-Maturity Debt Securities
Debt Securities- Trading
Available-for-Sale Debt Securities
Unrealized Gains and Losses on Available for Sale Debt Investments
Selling an Available for Sale Investment
Impairment of Available-for-Sale Securities
Investments in Equity Securities
Equity Investments at Cost: The Practicability Exception
Fair Value Method for Equity Investments
Fair Value Hierarchy (Level 1, Level 2, Level 3)
The Fair Value Option for Financial Instruments
Equity Method of Accounting for Investments
Equity Method vs. Fair Value Method
PowerPoint – Lesson 13
Exercises – Lesson 13
Accounts Payable
What is the Difference between Receivables and Payables?
Unearned Revenue
Contingent Liabilities
How to Record Salary Payable
Accounting for Warranty Expense
Warranty Liability – Expected Cash Flow Approach
Accounting for Gift Cards
Accounting for Premiums and Coupons
Asset Retirement Obligation
The Operating Cycle
Cash Conversion Cycle
Payroll Accounting
PowerPoint – Lesson 14
Exercises – Lesson 14
Types of Bonds
Debt Covenants
Calculating the Issue Price of a Bond (Annual Interest Payments)
Calculating the Issue Price of a Bond (Semiannual Interest Payments)
Calculating the Issue Price of a Bond (Quarterly Interest Payments)
Determining the Carrying Value of Bonds
Bonds Issued at Par
Amortizing a Bond Discount
Amortizing a Bond Premium
Journal Entries for Note Issued at Face Value
Zero Interest Bearing Note Example
Bonds Issued between Interest Dates
Early Retirement of Bonds
Fair Value Option for Bonds Payable
How to Account for an Installment Note
PowerPoint – Lesson 15
Exercises – Lesson 15
Capital Stock (Common Stock and Preferred Stock)
Additional Paid in Capital
Common Stock
Common Stock vs. Additional Paid-in Capital
No-par vs Par Stock
Preferred Stock
Treasury Stock
Journal Entry for Stock Issuance
Explaining Dividends
Liquidating Dividend
Journal Entry for Dividends
How to Calculate the Dividend Yield
Stock Split
Stock Dividend vs Stock Split
Why Firms Buy Back their own Stock
How to Retire Treasury Shares
How to Account for Stock Retirement
Earnings per Share (EPS) Explained
How to Calculate EPS
How to Calculate EPS for Amazon
Basic Earnings Per Share Calculation Example
How to Use Earnings per Share
Earnings per Share vs Net Income
How Stock Repurchases Affect Earnings per Share
Market Capitalization
PowerPoint – Lesson 16
Exercises – Lesson 16
Purpose of the Statement of Cash Flows (SCF)
Indirect Method of SCF
Cash Flow from Operations
Cash Flow from Investing
Cash Flow from Financing Activities
SCF: Disposal of Fixed Assets
SCF: How to Calculate Dividends
SCF: Accounting for Equity Method Investment
Statement of Cash Flows Formula
Where to find CapEx on the Statement of Cash Flows
Direct vs. Indirect Method
PowerPoint – Appendix A
Time Value of Money
Explaining Effective Annual Rate of Interest
Calculating Effective Annual Rate of Interest
Future Value of a Single Amount
Present Value of a Single Cash Flow
Future Value of an Annuity
Present Value of an Annuity
Future Value of an Annuity Due
Future Value of a Growing Annuity
Present Value of a Perpetuity
Present Value of a Growing Perpetuity
ROA (Return on Assets)
Net Profit Margin
Asset Turnover
Decomposing ROA (Return on Assets)
Gross Profit Margin Ratio
Current Ratio
Quick Ratio (Acid Test Ratio)
Current Cash Debt Coverage Ratio
Cash Debt Coverage Ratio
Net Working Capital
Inventory Turnover
Debt to Equity Ratio
Dividend Payout Ratio
Market to Book Ratio
How to Determine Price to Book Ratio
Book to Market Ratio
Price to Book Ratio vs Book to Market Ratio
Altman Z Score
Accounts Receivable Turnover Ratio
Days Sales Outstanding
Accounts Payable Turnover Ratio
Days Payable Outstanding
Days to Sell Inventory
Price-Earnings (P/E) Ratio
Book Value per Share
Tangible Book Value per Share
Cash Flow to Capital Expenditures Ratio
Operating Cash Flow Ratio
Fixed Asset Turnover Ratio
Debt Ratio
Cash Ratio
Times Interest Earned (Interest Coverage Ratio)
The Equity Multiplier
How to Calculate Sales Growth
Direct Method of SCF
Cash Received from Customers
Cash Paid to Suppliers
Cash Paid to Employees
Cash Paid for Interest
Cash Paid for Income Taxes