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
The Basic Accounting Equation
Debits and Credits
Double Entry Accounting
Journal Entry Format
Recording a Journal Entry
Practice with Journal Entries
Cash vs Accrual Accounting
T accounts
Preparing a Trial Balance
Introduction to Adjusting Journal Entries (AJE’s)
Prepayment AJE’s
Accrual AJE’s
Nominal vs. Real Accounts
Post-closing Trial Balance
Closing Entries
Reversing a Journal Entry
The Accounting Cycle
The Operating Cycle
Cash Conversion Cycle
How to Calculate Sales Growth
Sales vs. Profit
Income Statement Overview: Part 1
Revenue
Expenses
Gains and Losses
Earnings
Single-step Income Statement
Irregular Items
Discontinued Operations
Restructuring Charges
Intraperiod Tax Allocation
Multi-step Income Statement
Earnings per Share (EPS) Explained
How to Calculate EPS
How to Calculate EPS for Amazon
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
Accumulated OCI
Earnings Quality
Earnings Management
Assets
Liabilities
Stockholders’ Equity
Introduction to the Balance Sheet
Example of a Balance Sheet
Current Assets
Short-term Investments
Noncurrent Assets
Long-term Investments
Current Liabilities
Long-term Liabilities
Comparative Balance Sheet
Connection between Balance Sheet & Income Statement
Usefulness of the Balance Sheet
Limitations of the Balance Sheet
Balance Sheet vs. Income Statement
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
Cash and Cash Equivalents
Receivables
Accounts Receivable
Gross Sales vs. Net Sales
Sales Discounts
Sales Returns and Allowances
Percentage-of-Sales Method for Estimating Bad Debts
Journal Entry for Bad Debt Recovery
Collecting Accounts Receivable Already Written Off
Aging Method for Estimating Uncollectible Accounts
Why Receivables Might Grow Faster than Sales
Prepaid Expenses
Prepaid Insurance
Journal Entry for Prepaid Insurance
Prepaid Rent
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
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
Property, Plant, and Equipment Defined
Capitalization of PP&E Acquisition Costs
Capitalization of PP&E Subsequent Costs
Depreciation
Straight Line Depreciation Method
Double Declining Balance Depreciation Method
Sum of the Years’ Digits
Units of Production Depreciation Method
Journal Entry for Depreciation
Depreciation Expense vs. Accumulated Depreciation
Fixed Asset Disposal
Impairment of PP&E
Nonmonetary Exchange
Nonmonetary Exchange that Lacks Commercial Substance
Nonmonetary Exchange with a Loss
Depletion
Intangible Assets
Goodwill in Accounting, Defined and Explained
Goodwill Impairment Single Step Test ASU 2017-04
Accounts Payable
Unearned Revenue
Contingent Liabilities
Accounting for Warranty Expense
Accounting for Gift Cards
Accounting for Premiums and Coupons
Asset Retirement Obligation
Types of Bonds
Debt Covenants
Bonds Issued at Par
Amortizing a Bond Discount
Capital Stock (Common Stock and Preferred Stock)
Additional Paid in Capital
Common Stock
Common Stock vs. Additional Paid-in Capital
Preferred Stock
Treasury Stock
Explaining Dividends
Liquidating Dividend
Journal Entry for Dividends
How to Calculate the Dividend Yield
Stock Split
Why Firms Buy Back their own Stock
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
Can Stockholders’ Equity be Negative?
Diluted EPS using the If-Converted Method
Diluted EPS using the Treasury Stock Method
Diluted EPS using the Treasury Stock Method (shortcut approach)
Market Capitalization
Accounting for Investments (Equity and Debt Securities)
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
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
Available-for-Sale Equity Securities
Impairment of Available-for-Sale Securities
Investments in Equity Securities
Trading 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
Consolidated Balance Sheet
Consolidated Balance Sheet with Noncontrolling Interest
Noncontrolling Interest- Balance Sheet
Noncontrolling Interest- Income Statement
Percentage of Completion Method
Completed Contract Method
Percentage of Completion vs. Completed Contract Method
5 Steps of Revenue Recognition (ASU 2014-09)
Installment Sales Method in Accounting
Cost Recovery Method
Accounting for Bundled Services
Accounting for Franchise Fees
Book Income vs. Tax Income
Temporary Tax Differences
Permanent Tax Differences
Temporary vs. Permanent Differences
Deferred Tax Asset
Deferred Tax Liability
Income Tax Expense vs. Income Tax Payable
Net Operating Loss (NOL) Carrybacks and Carryforwards
Deferred Tax Asset Valuation Allowance
Reversing a Deferred Tax Asset Valuation Allowance
Accounting for Uncertain Tax Positions
Effective Tax Rate
Defined Benefit vs. Defined Contribution Pension Plan
Calculating Pension Expense for a Defined Contribution Plan
Calculating Pension Expense for a Defined Benefit Plan
5 Components of Pension Expense for a Defined Benefit Plan
PBO vs. ABO vs. VBO
Calculating the Projected Benefit Obligation (PBO)
Calculating the Change in Plan Assets
Prior Service Cost
Calculating Corridor Amortization
Recording Pension Expense (Journal Entry)
Calculating the Funded Status of Pension Plan
Lease Accounting Overview
The 5 Lease Classification Tests
Finance Lease (Lessee)
Operating Lease (Lessee)
Finance vs. Operating Lease (Lessee)
Sales-type Lease (Lessor)
Operating Lease (Lessor)
Sales-type vs. Operating Lease (Lessor)
Direct Financing Lease (Lessor)
Guaranteed Residual Value (Lessee)
Unguaranteed Residual Value (Lessor)
Bargain Purchase Option (Lessee)
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
Direct Method of SCF
Direct vs. Indirect Method
Cash Received from Customers (Direct Method, SCF)
Cash Paid to Suppliers (Direct Method, SCF)
Cash Paid to Employees (Direct Method, SCF)
Cash Paid for Interest (Direct Method, SCF)
Cash Paid for Income Taxes (Direct Method, SCF)
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
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
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
Introduction to Segment Reporting
Determining Reportable Segments
Example of Segment Reporting (Walmart)
Segment Reporting Disclosures
Segment Reporting: IFRS vs. U.S. GAAP
