Self-Study
30
Overview
Accounting
There are no prerequisites.

Course Description

The Accountants' Guidebook provides the accountant with detailed information about the three responsibilities of accountancy - recordation, classification, and reporting. In addition, the course describes a variety of management and analysis tasks with which the accountant is typically charged. The course is intended to improve the performance of accountants by increasing their knowledge of the practical operational details of accounting, as well as the accounting standards to which they are subjected.



Instructor

Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).



Course Specifics

Accounting
Jun 14, 2017
There are no prerequisites.
SS1133379
583
None


Compliance Information

103220
Qualifies for CA Fraud: No


Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • List the core tasks of accountancy.
  • Name the focus of managerial accounting.
  • Cite who is responsible for reconstructing damaged financial records, managerial accounting, and three-way matching.
  • Specify a type of accounting not governed by any accounting framework.
  • Identify where managerial accounting primarily does its reporting.
  • Choose an item that is not a customer-oriented responsibility of accounting.
  • Cite when a division bookkeeper is most likely to be used.

Chapter 2

  • Cite the item that is generally listed first on a chart of accounts.
  • Cite how many digits are required for accounts in a business that does not break out departmental results and that tracks expenses by department.
  • List an item that should not be a mega-account when a minimum number of expense accounts are used and one that would be charged to the business operations mega-account.
  • Name what about accounting information is defined by the chart of accounts.
  • Specify the section of the chart of accounts where the allowance for doubtful accounts is.
  • State a consequence of the proliferation of accounts and reducing the number of accounts.

Chapter 3

  • Identify an example of a subsidiary ledger and when one is used.
  • Define an unbalanced journal entry and a purchase ledger.
  • List an account balance that is included in the post-closing trial balance.
  • Name the first step in a procedure production.
  • Cite a characteristic of the adjusted trial balance and from where its line items are derived.
  • State the purpose of the extended trial balance.

Chapter 4

  • Specify when a business should create a procedure.
  • Identify a situation where a flowchart is helpful.
  • Cite a piece of information that every new release of procedures should inform recipients about.
  • Name the best procedure layout option.
  • Choose an item that is not normally included in a credit review.
  • Cite another use for a sales order and an item received from shipping by the billing clerk.
  • State why immediate cash application is important.

Chapter 5

  • Identify a situation where there is no need to create a reserve for an impaired loan.
  • Specify when a delinquency fee should be recognized by a lender.
  • Cite what a lead lender should do in a loan syndication where repayments are being collected.
  • List a characteristic of a lender that takes on the role of an investor.
  • Identify when the presence of a simple lending arrangement is more likely.
  • Cite when loan origination fees should be recognized and what should be done when a loan is still in process.
  • Specify how a property whose possession has been taken by a foreclosing creditor should be recorded.

Chapter 6

  • Identify a factor affecting holding gain or loss.
  • Define the intent of a holding a trading security.
  • Specify how to account for held-to-maturity investments.
  • Cite what should be done when transferring a security from held-to-maturity to available-for-sale and when recognizing an impairment loss on an equity security.
  • Name a characteristic of a general allowance for unidentified impairments to securities.
  • Choose an item that shouldn't be in a related disclosure for a security with a temporary impairment.
  • State the impact of dividends on the equity method.
  • Specify treatment when an investor's share of an investee's losses exceeds the carrying amount of the investment.

Chapter 7

  • Cite a characteristic of the FIFO method and the LIFO method.
  • Define a cost pool.
  • Calculate the cost of goods sold and estimated ending inventory.
  • Specify what should be recorded upon the sale of goods on credit to a customer under the perpetual inventory system.

Chapter 8

  • Define the capitalization limit, useful life, and depletion.
  • Name a type of depreciation that is not an accelerated type.
  • Cite when to recognize an impairment loss when using GAAP.
  • Specify how to value fixed assets acquired in a business combination.
  • Calculate the depreciation percentage of the depreciable asset balance in the first year of the five-year calculation period under the double declining balance method.
  • Identify the only situation in which land may be depreciated.

Chapter 9

  • Define a goodwill impairment.
  • Identify the steps in assessing goodwill impairment.
  • Specify a consequence of recognizing a goodwill impairment.
  • Cite the trigger percentage for additional testing in the goodwill impairment process.
  • Choose proper treatment when a reporting unit is disposed of.
  • Identify when or how often impairment testing should be conducted and the stage of internal-use software development that can be capitalized.
  • Name a cost of developing a website that can be charge to expense as opposed to being capitalized.

Chapter 10

  • Cite when a stock dividend happens.
  • List a reason to buy back shares.
  • Define treasury stock account, a stock split, and arrearage.
  • Name a common trigger for a reduction in the number of stockholders.
  • Name a characteristic of the transfer of assets into a separate legal entity.
  • Identify when a reverse spinoff occurs.

Chapter 11

  • Name a consequence of a seller retaining a security interest in sold goods.
  • List a characteristic of a bill-and-hold transaction and the right-of-return concept.
  • Identify a characteristic of the installment method.
  • Cite when you can recognize revenue from a barter arrangement and when the milestone method is used.
  • Choose an indicator of being able to record revenue at its gross amount.
  • Specify how to record billing of out-of-pocket expenses to a customer.

Chapter 12

  • Identify a characteristic of the chart of accounts.
  • Cite why wages are accrued.
  • List a permissible way to record a commission expense.
  • Name a reason a company with few hourly staff might avoid wage accrual.
  • Specify when a bonus expense should not be accrued.
  • Cite why the accrued benefits journal entry is not commonly used.
  • Identify how to classify an employee advance and a use of a stock subscription plan.

Chapter 13

  • Specify proper accounting when stock is issued to an employee.
  • Define the reload feature and implicit service period.
  • List a characteristic of stock with a highly volatile price.
  • Name a consequence of a stock option expiring unused.
  • Cite an assumption of the lattice pricing model for stock options.
  • Identify when a stock-based compensation arrangement is likely to be classified as a liability.
  • Choose when an employee share purchase plan is not considered compensatory.

Chapter 14

  • Name a use for an excess tax credit.
  • Identify a step that wouldn't be involved in deriving a tax position.
  • Specify a location you wouldn't allocate income taxes to.
  • List the types of temporary tax differences.
  • Define a deferred tax asset.
  • List a characteristic of the applicable tax rate and the presentation of deferred taxes.
  • Cite the tax rate that should be applied to ordinary income in an interim period.

Chapter 15

  • List a step in the acquisition method.
  • Cite a consequence when a contingent consideration is paid in equity.
  • Calculate goodwill when there is not a noncontrolling interest.
  • Specify when a step acquisition has occurred.
  • Name something involved in provisional accounting for a business combination.
  • List an example of an intangible asset in an acquisition to which a value can be attached.
  • Identify the common use of a reverse acquisition and the acquisition of specific assets.

Chapter 16

  • Define functional currency and name what the likely functional currency is when the financing of a foreign operation is provided by the parent company.
  • Cite an unnecessary step when performing financial statement translation.
  • Specify how to translate assets when translating financial statements into the reporting currency.
  • Identify how to initially record a payment to a supplier in a foreign currency.
  • Specify when no gain or loss is recognized on a foreign currency transaction.
  • Name the exchange rate to be applied when intra-entity profits are eliminated in a consolidation.
  • Cite an action to be performed when an entity operates in a hyperinflationary economy.

Chapter 17

  • Name a criterion for identifying a capital lease and what a lessee must account for under such a lease.
  • Specify the type of lessors that use a direct financing lease.
  • Cite the length over which a lessee may recognize a lease incentive.
  • Define a capital lease and a fiscal funding clause.
  • Choose proper treatment when depreciating leasehold improvements.
  • Identify a characteristic of a sale-leaseback transaction.

Chapter 18

  • Choose an example of a change in accounting estimate.
  • Specify an action that would not be useful in correcting an error in previous financial statements.
  • Identify a situation where you would adjust the financial statements of prior interim periods of the current fiscal year.
  • Cite when to change an accounting principle and the type of change that requires retrospective application to prior accounting periods and when an accounting error is sufficiently material to report.
  • Choose a step that is not part of retrospective application and when retrospective application is not considered possible.

Chapter 19

  • State why generating customer invoices is an essential part of the closing process and why you want to eliminate intercompany transactions.
  • Cite the basis for accruing a tax liability.
  • Specify a situation where a reserve should not be created.
  • Name the key issue in consolidation of division results and a delayed closing step.
  • Identify why you must close subsidiary ledgers when closing the books.
  • Define a net operating loss carryforward.

Chapter 20

  • Name a presentation method that can help you see income statement abnormalities.
  • Define the purpose of the comparative balance sheet and the statement of retained earnings.
  • Define an income statement with several sub-totals and the contribution margin income statement.
  • Specify a good source document for compiling financial statements by hand.
  • Identify the formula that a balance sheet must match.
  • State when an asset would be classified as current on the balance sheet.

Chapter 21

  • Cite how to treat contingencies under the integral view.
  • Define the segment test for profit or loss.
  • Specify the proper action when a segment no longer qualifies but did in the past and will in the future.
  • State an assumption about reported interim period results under the integral view and a piece of guidance of the integral view.
  • List a characteristic of interim reporting under the discrete view and of a chief operation decision maker.
  • Identify guidance from the segment test for revenue.
  • Name a document that requires approval of a majority of the board of directors.

Chapter 22

  • State the purpose of responsibility reporting.
  • List an item that is not important for properly managing margin reports.
  • Cite a limitation of variance analysis.
  • Name a common line item in a flash report.
  • Define the variance where volume variance relates to the use of direct labor.
  • Calculate selling price variance.
  • Specify a possible cause of an unfavorable sales volume variance.

Chapter 23

  • Cite the importance of the value date.
  • Define a lockbox network.
  • Identify the kind of information required by automatic cash application.
  • Define the mechanism that keeps cash application from delaying daily bank deposits.
  • List an advantage of a bank lockbox and an alternative to using it.
  • Specify a characteristic of remote deposit capture.
  • Name something not accomplished through an online payment app.

Chapter 24

  • List an advantage of converting a receivable into a promissory note.
  • Specify the purpose of the COD roll.
  • Name a way to reduce the cost of using attorney letters.
  • Define the grace period in collections.
  • Identify what A-B testing helps to design.
  • Cite a characteristic of a postdated check.
  • Specify when the promissory note approach and filing in small claims court are best used in collections.

Chapter 25

  • Define a payroll cycle.
  • Identify when employees are paid in a biweekly payroll system and in a semimonthly payroll system and a key difference between the two systems.
  • Name a timekeeping solution for an hourly employee who nearly always works 40 hours a week.
  • Choose an action that will not help protect the confidentiality of payroll information.

Chapter 26

  • List a result of an increase in the number of versions of a product.
  • Cite a characteristic of the direct materials roll-up method.
  • Name an expense that isn't usually found in the R&D budget.
  • State why it is necessary to have several budget iterations.
  • Specify an effect of switching from a material requirements planning system to a just-in-time system.
  • Calculate direct material purchases.
  • Cite when the crewing method is used in the budgeting process.
  • Name the budget that contains treasury and that contains charitable contributions.

Chapter 27

  • State whey net present value is not useful in capital budgeting analysis.
  • List a reason that net present value or constraint analysis can be legitimately bypassed.
  • Specify when to consider outsourcing to avoid a fixed asset investment.
  • Name the primary focus of constraint analysis and the intent of a post-installation review.
  • Define throughput.
  • Cite why the payback method may be useful in capital budgeting analysis.

Chapter 28

  • Cite a non-operational transaction that isn't included in the core earnings ratio.
  • Specify the best possible DSO measurement.
  • Identify when sales backlog ratio is most useful.
  • Name a way to ensure measurement consistency.
  • Cite a characteristic of calculating profit per person and a figure used in calculating deflated sales growth.
  • Identify an item that can be eliminated from net profits when calculating core earnings ratio and one that can be eliminated from the current assets portion of a quick ratio.
  • List the two alternative versions of margin of safety.
  • Choose the interest coverage ratio that would trigger a sale of equity holdings.
  • Name a measurement that does not roll up into return on equity.
  • List the two items compared in days sale outstanding.
  • State what is meant by a collection effectiveness index of 100%.
  • Name two considerations when figuring the customer turnover measurement.
  • Identify a situation in which a high cost-per-square-foot location might be acceptable.

Chapter 29

  • Identify an operational cost object.
  • Name a cost that should not be included in an employee cost object analysis and one that should not be in a product cost analysis.
  • Cite a factor in creating a high-cost cost object.
  • Specify when to assign a cost to a cost object and a cost that should not be assigned to a specific customer cost object.
  • List an action for managers when the cost of acquiring new customers is high.
  • Choose a cost that is included in the analysis of a product line that is not considered in the analysis of a product.


Table of Contents

Chapter 1 – The Role of the Accountant

Learning Objectives

Introduction

The Accountancy Concept

Financial and Managerial Accounting

Types of Accountants

Responsibilities of the Accounting Department

Customer-oriented Responsibilities

Supplier-oriented Responsibilities

Employee-oriented Responsibilities

Financial Statements

Analysis

Organizational Structure of the Accounting Department

Summary

Chapter 1 Review Questions

Chapter 2 – The Chart of Accounts

Learning Objectives

Introduction

Overview of the Chart of Accounts

Assets

Liabilities

Stockholders’ Equity

Revenue

Expenses

The Three-Digit Chart of Accounts

The Five-Digit Chart of Accounts

The Seven-Digit Chart of Accounts

Chart of Accounts Reduction

Alphanumeric Account Coding

Summary

Chapter 2 Review Questions

Chapter 3 – The General Ledger and Trial Balance

Learning Objectives

Introduction

The Ledger Concept

General Ledger Overview

The Accounts Receivable Ledger

The Purchase Ledger

Overview of the Trial Balance

The Trial Balance Format

The Extended Trial Balance

Trial Balance Error Correction

The Post-Closing Trial Balance

Evaluation of the Trial Balance

Summary

Chapter 3 Review Questions

Chapter 4 – Accounting Procedures

Learning Objectives

Introduction

The Nature of a Procedure

The Need for Procedures

The Number of Procedures to Develop

The Mechanics of Procedure Production

Procedure Production Steps

Formatting Steps

Procedure Design Tips

Dissemination of Procedures

Procedural Updates

Enforcement of Procedures

“Carrot” Activities

“Stick” Activities

Deviations from Procedures

Presented Procedures

The Credit Examination Procedure (Manual System)

The Shipping Procedure (Manual System)

The Billing Procedure

The Check Receipts Processing Procedure

The Purchasing Procedure

The Supplier Invoice Processing Procedure (Manual System)

The Check Payment Issuance Procedure

Summary

Chapter 4 Review Questions

Chapter 5 – Accounting for Receivables

Learning Objectives

Introduction

Accounting for Billings

Accounting for Sales Taxes

The Allowance for Doubtful Accounts

Notes Receivable

Acquisition, Development, and Construction Arrangements

Nonrefundable Fees and Other Costs

Loans and Debt Securities Acquired with Deteriorated Credit Quality

Troubled Debt Restructurings by Creditors

Receivables Presentation

Receivables Disclosures

Summary

Chapter 5 Review Questions

Chapter 6 – Accounting for Investments

Learning Objectives

Introduction

Overview of Investments – Debt and Equity Securities

Accounting for Investments

Impairment of Investments

Restricted Stock

Dividend and Interest Income

The Equity Method

Investment Disclosures

Summary

Chapter 6 Review Questions

Chapter 7 – Accounting for Inventory

Learning Objectives

Introduction

Overview of Inventory

The Periodic Inventory System

The Perpetual Inventory System

Inventory Costing

The First In, First Out Method

The Last In, First Out Method

The Weighted Average Method

Standard Costing

The Retail Inventory Method

The Gross Profit Method

Overhead Allocation

The Lower of Cost or Market Rule

Work in Process Accounting

Accounting for Obsolete Inventory

Consignment Accounting

Goods in Transit

Inventory Disclosures

Summary

Chapter 7 Review Questions

Chapter 8 – Accounting for Property, Plant, and Equipment

Learning Objectives

Introduction

Overview of Fixed Assets

Initial Fixed Asset Recognition

Fixed Assets Acquired through a Business Combination

Nonmonetary Exchanges

Depreciation and Amortization

Straight-Line Method

Sum-of-the-Years’ Digits Method

Double-Declining Balance Method

Depletion Method

Units of Production Method

Land Depreciation

Land Improvement Depreciation

Depreciation Accounting Entries

Fixed Asset Impairment

Fixed Asset Disposal

Assets Held for Sale

Abandoned Assets

Idle Assets

Fixed Asset Disposal Accounting

Fixed Asset Disclosures

General Fixed Asset Disclosures

Change in Estimate Disclosures

Intangible Asset Disclosures

Summary

Chapter 8 Review Questions

Chapter 9 – Accounting for Intangibles

Learning Objectives

Introduction

Goodwill

General Intangibles Other than Goodwill

Internal-Use Software

Website Development Costs

Intangibles Disclosures

Summary

Chapter 9 Review Questions

Chapter 10 – Accounting for Equity

Learning Objectives

Introduction

Overview of Equity

Stock Dividends and Stock Splits

Stock Dividend

Stock Split

Treasury Stock

Purchase of Treasury Stock

Resale of Treasury Stock

Cost Method

Constructive Retirement Method

Equity-Based Payments to Non-Employees

Initial Recognition

Spinoffs and Reverse Spinoffs

Equity Disclosures

Rights and Privileges

Preferred Stock

Contingently Convertible Securities

Redeemable Securities

Treasury Stock

Changes in Shareholders’ Equity

Equity-Based Payments to Non-Employees

Summary

Chapter 10 Review Questions

Chapter 11 – Revenue Recognition

Learning Objectives

Introduction

Overview of Revenue Recognition

Public Company Revenue Recognition

The Installment Method

The Cost Recovery Method

The Right of Return

Extended Warranty Revenue

Advertising Barter Transactions

Management Fees

Revenue Recognition for Multiple-Element Arrangements

The Milestone Method

Construction-Type and Production-Type Contracts

Elements of Revenue

Elements of Cost

Back Charges

Provisions for Losses

Percentage of Completion Method

Completed Contract Method

Summary

Gains and Losses

Principal Agent Considerations

Gross or Net Considerations

Shipping and Handling Charges

Expense Reimbursements

Customer Payments and Incentives

Accounting by the Supplier

Accounting by the Customer

Accounting by Service Providers for Payments to Equipment Producers or Resellers

Presentation of Consideration Paid by Suppliers (Supplier Viewpoint)

Presentation of Consideration Paid by Suppliers (Customer Viewpoint)

Layaway Sales Arrangements

Nonrefundable Up-Front Fee Arrangements

Consignment Arrangements

Contingent Rental Income

Revenue Recognition Disclosures

Private Company Disclosures

Public Company Disclosures

Summary

Chapter 11 Review Questions

Chapter 12 – Accounting for Payroll

Learning Objectives

Introduction

The Chart of Accounts

Types of Payroll Journal Entries

Primary Payroll Journal Entry

Accrued Wages

Accrued Bonuses

Accrued Commissions

Benefit Payments

Accrued Benefits

Stock Subscriptions

Manual Paycheck Entry

Employee Advances

Accrued Vacation Pay

Tax Deposits

Payroll Information in the Financial Statements - Wages

Payroll Information in the Financial Statements – Payroll Taxes

Summary

Chapter 12 Review Questions

Chapter 13 – Accounting for Stock-Based Compensation

Learning Objectives

Introduction

Overview of Stock Compensation

The Volatility Concept

Fair Value Calculation Alternatives

Awards Classified as Equity

Award Measurement Problems

Contingent Features

Award Modifications

Income Tax Effects

Awards Classified as Liabilities

Employee Share Purchase Plans

Stock-Based Compensation Disclosures

Summary

Chapter 13 Review Questions

Chapter 14 – Accounting for Income Taxes

Learning Objectives

Introduction

Overview of Income Taxes

Accounting for Income Taxes

Tax Positions

Deferred Tax Expense

Applicable Tax Rate

Interest and Penalties

Intraperiod Tax Allocation

Taxes Related to Undistributed Earnings

Interim Reporting

Income Taxes Presentation

Income Taxes Disclosure

Balance Sheet

Income Statement

Other

Summary

Chapter 14 Review Questions

Chapter 15 – Accounting for Business Combinations

Learning Objectives

Introduction

Overview of Business Combinations

Identifiable Assets and Liabilities, and Noncontrolling Interests

Goodwill or Gain from Bargain Purchase

Goodwill Calculation

Bargain Purchase

Reverse Acquisitions

Related Issues

Acquisition of Assets

Transactions between Entities under Control of Same Parent

Pushdown Accounting

Income Taxes

Business Combination Disclosures

General Disclosures

Identifiable Assets and Liabilities, and any Noncontrolling Interest

Goodwill or Gain from Bargain Purchase

Reverse Acquisitions

Transactions between Entities under Control of Same Parent

Income Taxes

Summary

Chapter 15 Review Questions

Chapter 16 – Foreign Currency Matters

Learning Objectives

Introduction

Foreign Currency Transactions

Financial Statement Translation

Determination of Functional Currency

Translation of Financial Statements

Use of Average Exchange Rates

Hyperinflationary Effects

Derecognition of a Foreign Entity Investment

Foreign Currency Disclosures

Summary

Chapter 16 Review Questions

Chapter 17 – Accounting for Leases

Learning Objectives

Introduction

Overview of Leases

Capital Lease Criteria

Lease Classification by Lessor

Accounting for Leasehold Improvements

Special Lease Terms

Operating Leases

Operating Lease Treatment by Lessee

Operating Lease Treatment by Lessor

Capital Leases

Capital Lease Treatment by Lessee

Capital Lease Treatment of Sublease by Lessee

Capital Lease Treatment by Lessor (Sales-Type Lease)

Capital Lease Treatment by Lessor (Direct Financing Lease)

Capital Lease Treatment by Lessor (Leveraged Lease)

Capital Lease Treatment by Lessor (Broadly Applicable)

Sale-Leaseback Transactions

Sale-Leaseback Treatment by Lessee

Sale-Leaseback Treatment by Lessor

Lease Disclosures

Lessee Disclosures

Lessor Disclosures

Summary

Chapter 17 Review Questions

Chapter 18 – Accounting Changes and Error Corrections

Learning Objectives

Introduction

Changes in Accounting Principle

Changes in Accounting Estimate

Changes in Reporting Entity

Correction of an Error in Previously Issued Financial Statements

Corrections Related to Prior Interim Periods

The Materiality of an Error

Accounting Changes and Error Corrections Disclosures

Change in Accounting Principle

Change in Accounting Estimate

Change in Reporting Entity

Error Corrections

Historical Summaries

Summary

Chapter 18 Review Questions

Chapter 19 – Closing the Books

Learning Objectives

Introduction

Prior Steps: Update Reserves

Core Steps: Issue Customer Invoices

Core Steps: Value Inventory

Core Steps: Calculate Depreciation

Core Steps: Create Accruals

Core Steps: Consolidate Division Results

Core Steps: Eliminate Intercompany Transactions

Core Steps: Review Journal Entries

Core Steps: Reconcile Accounts

Core Steps: Close Subsidiary Ledgers

Core Steps: Create Financial Statements

Core Steps: Review Financial Statements

Core Steps: Accrue Tax Liabilities

Core Steps: Close the Month

Core Steps: Add Disclosures

Core Steps: Write Cover Letter

Core Steps: Issue Financial Statements

Delayed Steps: Issue Customer Invoices

Delayed Steps: Closing Metrics

Delayed Steps: Document Future Closing Changes

Delayed Steps: Update Closing Procedures

Summary

Chapter 19 Review Questions

Chapter 20 – The Financial Statements

Learning Objectives

Introduction

The Income Statement

Income Statement Overview

The Single-Step Income Statement

The Multi-Step Income Statement

The Condensed Income Statement

The Contribution Margin Income Statement

The Multi-Period Income Statement

How to Construct the Income Statement

The Balance Sheet

Overview of the Balance Sheet

The Common Size Balance Sheet

The Comparative Balance Sheet

How to Construct the Balance Sheet

The Statement of Cash Flows

Overview of the Statement of Cash Flows

The Direct Method

The Indirect Method

How to Prepare the Statement of Cash Flows

The Statement of Retained Earnings

Overview of the Statement of Retained Earnings

How to Prepare the Statement of Retained Earnings

Summary

Chapter 20 Review Questions

Chapter 21 – Public Company Financial Reporting

Learning Objectives

Introduction

Interim Reporting

The Integral View

The Discrete View

Comparison of the Integral and Discrete Views

Interim Reporting Issues

Segment Reporting

Primary Segment Reporting Issues

The Segment Report

Earnings per Share

Basic Earnings per Share

Diluted Earnings per Share

Presentation of Earnings per Share

The Public Company Closing Process

The Form 10-Q

The Form 10-K

Summary

Chapter 21 Review Questions

Chapter 22 – Management Reports

Learning Objectives

Introduction

The Duration of a Report

Responsibility Reporting

The Flash Report

Expense Reporting

Margin Reporting

Variance Reporting

The Purchase Price Variance

Material Yield Variance

Labor Rate Variance

Labor Efficiency Variance

Variable Overhead Spending Variance

Variable Overhead Efficiency Variance

Fixed Overhead Spending Variance

Selling Price Variance

Sales Volume Variance

Problems with Variance Analysis

Which Variances to Report

How to Report Variances

Summary

Chapter 22 Review Questions

Chapter 23 – Cash Receipts Management

Learning Objectives

Introduction

Check Receipts

Check Receipt Improvements

The Bank Lockbox

Automatic Cash Application

Mailstop Number

Remote Deposit Capture

Cash Receipts

Cash Receipts Improvements

Credit Card Receipts

Credit Card Receipt Improvements

Enter Information in Online Form Immediately

Online Payment Apps

Debit Cards

Summary

Chapter 23 Review Questions

Chapter 24 – Collection Tactics

Learning Objectives

Introduction

Overview of Collection Tactics

Collection Tactics

Courtesy Calls

Grace Period Reduction

Dunning Letters

Check Payment by Fax or email

Pay Undisputed Line Items

Confirm Payment Date

Take Back Merchandise

Hold Orders

ACH Debits

Split Payments

Interest and Penalties

Promissory Note

Salesperson Assistance

COD Roll

Barter

Arbitration

Attorney Letters

Final Demand Letter

Issue Small Claims Court Complaint

The Collection Reputation

Credit Repayments

The Collection Call

Preparation

Scheduling

Phone Skills

Escalation

Documentation

Collect in Person

Summary

Chapter 24 Review Questions

Chapter 25 – Payroll Management

Learning Objectives

Introduction

Payroll Cycle Duration

Streamlined Timekeeping

Electronic Payments

Employee Self-Service

Manager Self-Service

Transaction Error Analysis

Staff Training Program

The Payroll Calendar

Information Confidentiality

Summary

Chapter 25 Review Questions

Chapter 26 – Budgeting

Learning Objectives

Introduction

The System of Budgets

The Reasons for Budget Iterations

Overview of the Revenue Budget

The Ending Finished Goods Inventory Budget

The Production Budget

Production Budgeting for Multiple Products

The Direct Materials Budget (Roll-Up Method)

The Direct Materials Budget (Historical Method)

The Direct Labor Budget

The Manufacturing Overhead Budget

The Sales and Marketing Budget

Diminishing Returns Analysis

The Research and Development Budget

The Administration Budget

The Compensation Budget

The Budgeted Income Statement

The Budgeted Balance Sheet

Accounts Receivable

Inventory

Fixed Assets

Accounts Payable

Additional Estimation Elements

The Cash Line Item

The Financing Budget

The Compiled Balance Sheet

Summary

Chapter 26 Review Questions

Chapter 27 – Capital Budgeting

Learning Objectives

Introduction

Overview of Capital Budgeting

Bottleneck Analysis

Net Present Value Analysis

The Payback Method

Capital Budget Proposal Analysis

The Outsourcing Decision

The Capital Budgeting Application Form

The Post Installation Review

The Lease versus Buy Decision

Summary

Chapter 27 Review Questions

Chapter 28 – Business Ratios

Learning Objectives

Introduction

What to Measure

Measurement Consistency

Measurement Timing

Deflated Sales Growth

Sales per Person

Deflated Profit Growth

Profit per Person

Core Earnings Ratio

Breakeven Point

Margin of Safety

Current Ratio

Quick Ratio

Working Capital Productivity

Debt to Equity Ratio

Interest Coverage Ratio

Cost per Square Foot

Occupancy Cost Ratio

Return on Equity

Days Sales Outstanding

Best Possible DSO

Collection Effectiveness Index

Inventory Turnover

Sales Productivity

Sales Backlog Ratio

Customer Turnover

Summary

Chapter 28 Review Questions

Chapter 29 – Cost Object Analysis

Learning Objectives

Introduction

Factors in Cost Object Analysis

The Assignability of Costs

The Customer Cost Object

Customer Acquisition Costs

Customer Lifetime Value

The Employee Cost Object

The Product Cost Object

The Product Line Cost Object

The Sales Channel Cost Object

Cost Object Termination Issues

Which Cost Objects to Track

Summary

Chapter 29 Review Questions

Review Question Answers and Rationales

Glossary

Index

Final Examination

Answer Sheet

Course Evaluation

 

 



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