Concepts:

Current assets

Definition:

Examples:

Long-term assets

Definition:

Examples:

Intangible assets

Definition:

Examples:

Contra-assets

Definition:

Examples:

Balance sheet

Types of accounts included:

Example balance sheet date:

Income statement

Types of accounts included:

Example income statement date:

When is revenue recognized?

When are expenses recognized?

Expense examples:

Auditing

Whats the point?

Who is responsible for the financial statements?

FIFO vs. LIFO impact on inventory/COGS/profits/taxes if inventory costs are rising:

Net book value (long-term assets):

Cash flows

Operating cash flow examples:

Investing cash flow examples:

Financing cash flow examples:

Non-cash transaction examples:

Formulas:

Accounting equation

Basic:

Expanded version with elements of equity broken out:

Retained earnings

Current ratio

Gross profit

Operating income

Net income (a.k.a. profit a.k.a. earnings)

Profit margin

Working capital

Treasury stock

Journal Entries:

Purchasing assets, in cash / on credit

Paying bills

Receiving cash from customers

Unearned revenue

Prepaid assets

Expenses (resource consumption)

Bad debt expense

Depreciation expense

Dividends

Issuing stock, with or without par value

Buying treasury stock

Calculations:

Bad debt expense aging method, percentage of credit sales method

Lower of cost or net realizable value

FIFO COGS

LIFO COGS

Straight-line depreciation expense

Double-declining balance depreciation expense

Gain/loss on sale

Net cash flow from financing activities