Lecture 1 Accounting in Business and Fs overview

Statement ofFinancialPosition 2 Statement

ofcomprehensiveincome
Netincome Revenue Expenses
increasesretainedearning
OCI isequity
comprehensiveIncome NI t OCI

3 Statement of Changes in Equity

 4Statementof CashFlows

Fairvalue isthepricethatwould be received tosellanasset or paidto transfera liability

Lecture 2 Mechanism of Accounting

mustalwayswritegeneraljournal
inchronologicalorder

TrialBalance list accounts in FinancialStatementOrder Assetsliabilities stockholder's Equity

revenue expenses
Lecture3 Adjusting Accounts

Criteria forrevenuerecognition

Adjustments to Revenue

cash is received beforerevenue isearned

Unearned Revenue
AccuredRevenue cash is received afterrevenue isearned

Adjustments to Expenses

PrepaidExpenses expense is incurred after cash is paid

AccuredExpense expense is incurred before cash is paid
Lecture 4 Completing Accounting Cycle
Lecture 5 Receivables

8 Lossallowance is contra asset

normalcredit
balance
Lecture 6 Inventory
Goods on Consignment
Goods weownbutare on display forsale
at anotherplace ofbusiness

Inventory systems

needtoworkbackwards

COGS BegInventory NetPurchases EndInventory

21 Discount if paidin 10 days
Fullprice is due in 30daysfrom
dateofsale
n
Lecture7 cashandCurrentLiabilities

BankReconciliation
Lecture8 PPEandIntangibles
Lecture 9 Equity
Lecture10 FSA

Profitability Ratio
LiquidityandEfficiencyRatio

SolvencyRatio
MarketProspectsRatio

CashFlow Ratio

DupontFramework

Lecture11 SCF
 Sample format of SCF