Financial Reporting Mechanics
About the Lecture
The lecture Financial Reporting Mechanics by Edu Pristine is from the course Archiv - Financial Reporting and Analysis. It contains the following chapters:
- Accounts and Financials Statement Elements
- Basic and expanded forms of accounting equation
- Double entry accounting
- Accruals and other adjustments
- Relationships among financial statements
- Flow of information in an accounting system
Author of lecture Financial Reporting Mechanics
Edu Pristine
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Excerpts from the accompanying material
... statement elements and accounts, and classify accounts into the financial ...
... bad debts "When a transaction happens it is first recorded in its rel ated account For example - wages, postage, stationary etc" Contra accounts are used for entries ...
... elements of financial statements which are: Assets Liabilities Owners equity Revenue ...
... Current Assets Cash and cash equivalents Accounts receivable ...
... Property, plant, and equipment Intangible assets Investment in affiliate Deferred tax ...
... Current Liabilities Accounts payable & trade payables Short-Term notes payable Unearned revenue Income taxes payable " ...
... foreign currency translation of subsidiary Minimum pension liability adjustments Unrealized gains and losses ...
... Selling, general and administrative expenses (SG&A)Advertising, management ...
... Losses Decreases in assets ...
... equity securities. This activity is most likely to be described as ...
... Corp is a bank, doing investments ...
... equity securities. This activity is most likely to be described as ...
... Corp is a bank, doing investments ...
... " Which of the following is most incorrect ? A. Contra accounts are used to make up for part of the val ue of another account. B. The major elements of financial statements are classifie ...
... capital + Retained earnings Assets = liabilities + owners' equity ...
... Beginning retained earnings + Net profits during the year dividends " Net profits can be broken into: Net profits = Revenue Expenses " Expanded accounting equation: Assets = liabilities + contributed ...
... = Beginning retained earnings + Net profits during the year - Closing Retained Earning ...
... earnings; Closing Retained earnings = Beginning retained earning s + Net profits during the year dividends hence dividend = Beginning retained earnings + Net profits during the year ...
... (if expenses is incurred on credit) Imp B) An expenses incurred must be balanced by either
... balance sheet, it either affects another a sset account or a liability account " When an asset is increased/decreased and it affects the P&L (salary), it affects equity. ...
... Purchase furniture for $1,000 cash Furniture (an asset) increases by $1,000 Cash (an asset) decreases by $1,000. ...
... (an asset) increases by $1,000 Notes (liability) increases by $1,000
... Pay $1000 for salary in cash Salary (expenses) reduces net income, leading to low equity and lowerliabilities by ...
... increase by $1000 and Creditors will decrease by $1000 B. Purchase account will increase by $1000 and creditors will increase by $1000 C.Purchase account will increase by $1000 and equity will decrease by ...
... associated expense will increase with associated ...
... on 1st day of next month, how this transaction will be reported ...
... the year end, it would report this as ...
... holding these investments while preparing BS, how this will be adjusted in books? A. Adjust valuation by decreasing assets value and decreasing equity B. Adjust valuation by decreasing assets value and increasing equity C.No ...
... equity. " Valuation adjustment requires assets to be valued at its market value and hence investments should be ....
... "other comprehensive income." Usually assets are recorded at historical costs But accounting standards require certain assets to be recorded at current cost . These requires updating assets values to ...
... an amount of $1000 for flights booking in next month. This amount will most likely be reported ...
... booked today, it will report this as ...
... the results of the accounting process in ...
... footnotes properly. To have better understanding of actual results, an analyst needs: To understand accounting policies, estimates, assumptions and ...
... financial statements which is prepared by the management of the company itself ". An analyst does not have access to ...
... security analysis. A. Financial statements B. Management discussion ...
... analyst has doesn't get access to ...
