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Chapter Quiz
What is the difference between basic earnings per share and diluted earnings per share (EPS)?...
Inventory and COGS
For a retail company, the most important expense on the income statement is cost of goods sold. H...
Deferring taxes
Corporations pay income taxes just like individuals do. It's reported as the final expense in the...
Investment securities and derivatives
It is often the case that one company will store its temporary excess cash by investing in the st...
Earnings per share
For large companies, the most commonly discussed net income number is earnings per share, affecti...
Working with leases
From 1976 through 2018, the accounting for leases was among the most deceptive accounting practic...
Long-term assets including impairment
Long-term assets such as buildings and equipment are reported in the balance sheet at their histo...
Revenue recognition
When does a sale get reported in the books? Let's use a real company example to illustrate the su...
Current financial accounting issues
Imagine a company that compensates a key employee with first, a cash salary of $80,000. Second, a...
Making the financial statements
Once all journal entries are made and organized, a year-end balance for each account can be compu...
Journal entries
Journal entries summarize the accounts involved in a transaction, whether those accounts increase...
Debits and credits
The debit and credit system can be summarized in two basic rules. Increases in assets are written...
How financial statements are made
The financial statements are the cap stone of a careful bookkeeping process. The key to properly ...
Chapter Quiz
1. When creating a statement of cash flows, where would you put the cash used to pay employee w...
The statement of cash flows
The statement of cash flows or cash flow statement is the report of the amount of cash collected ...
The income statement
The income statement contains two items, revenues and expenses. Revenues minus expenses equals ne...
The balance sheet
A balance sheet is a listing of a company's valuable resources, its assets, paired with a list of...
The financial statement
Let's define the items found in the financial statements. The first primary financial statement i...
Chapter Quiz
1. If you buy a car and pay 10 percent of the cost in cash, and take out a loan for the remain...
The accounting equation
The balance sheet is built around one of the most awesome creations of the human mind, the accoun...