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ACCOUNTING & ACCOUNTING PRINCIPLES
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Table of Contents:
ACCOUNTING & ACCOUNTING PRINCIPLES
Dual Aspect of Transactions
Rules of Debit and Credit
Steps in Accounting Cycle
Preparing Balance Sheet from Trial Balance
Business transactions
Adjusting Entry to record Expenses on Fixed Assets
Preparing Financial Statements
Closing entries in Accounting Cycle
Income Statement
Balance Sheet
Cash Flow Statement
Preparing Cash Flows
Additional Information (AI)
Cash flow from Operating Activities
Operating Activities’ portion of cash flow statement
Cash flow from financing Activities
Notes to Financial Statements
Charging Costs of Inventory to Income Statement
First-in-First - out (FIFO), Last-in-First-Out (LIFO)
Depreciation Accounting Policies
Accelerated-Depreciation method
Auditor’s Report, Opinion, Certificate
Management Discussion & Analyses (MD&A)
TYPES OF BUSINESS ORGANIZATIONS
Incorporation of business
Authorized Share Capital, Issued Share Capital
Book Values of equity, share
SUMMARY
SUMMARY
Analysis of income statement and balance sheet:
COMMON –SIZE AND INDEX ANALYSIS
ANALYSIS BY RATIOS
ACTIVITY RATIOS
Liquidity of Receivables
LEVERAGE, DEBT RATIOS
PROFITABILITY RATIOS
Analysis by Preferred Stockholders
Efficiency of operating cycle, process
STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 1
STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET 2
BALANCE SHEET AND INCOME STATEMENT RATIOS
Financial Consultation Case Study
ANALYSIS OF BALANCE SHEET & INCOME STATEMENT
SUMMARY OF FINDGINS