Financial Accounting Tutorials
Accounting and double-entry bookkeeping; financial and managerial accounting; basic financial statements (income statement, statement of cash flows, statement of changes in owners' equity and balance sheet); permanent (real) and temporary (nominal) accounts; four types of accounting transactions.
Accruals and accrual accounting; accounts receivable and salary payable; interest receivable, interest revenue, interest payable, and interest expense.
Deferrals and accounting allocation; unearned revenue and revenue recognition; historical cost, book (carrying) value of fixed asset, depreciation expense; prepayments (prepaid expenses).
T-account, debit, credit, and account balance; double entry bookkeeping system; general journals, ledgers, posting process; closing entries.
Cost of goods available for sale, cost of goods sold (COGS), gross margin, inventory; selling and administrative expenses; multi-step income statement and single-step income statement.
Accounts receivable, notes receivable, and notes payable; allowance for bad debt, bad debt expense, and net realizable value; direct write off method; warranties; interest-bearing notes, discount notes.
Lower of cost or market (LCM) rule; inventory cost flow methods (specific identification, first in first out (FIFO), last in first out (LIFO), weighted average); cost flow and physical flow of inventory.
Property, plan and equipment and depreciation; intangible assets and amortization; natural resources and depletion; historical cost.
Managerial Accounting Tutorials
Cost drivers; variable, fixed, step variable and mixed costs; relevant range; methods to estimate total product costs: high-low method, scatter-graph, and least-squares regression.
Cost-volume-profit (CVP) analysis; equation technique and contribution margin technique; break-even point and sales for desired income; graphical interpretation of CVP analysis; margin of safety and limitations of CVP analysis.
Manufacturing (direct materials, direct labor, factory overhead) and non-manufacturing costs; product and period costs; raw materials, work-in-process and finished goods; cost of goods manufactured and cost of goods sold; cost accounting cycle.
Activity-based costing (ABC), volume-based traditional costing; job costing, process costing; actual costing, normal costing, standard costing; steps of ABC; advantages and disadvantages of ABC.
Financial statement analysis; ratios for companies’ financial health and operating results; ratios for companies’ liquidity and working capital utilization.
Setting cost standards; direct materials variances: price and efficiency variance; direct labor variances: price and efficiency variance; journal entries.
Overhead variances: variable overhead spending and efficiency variances, fixed overhead spending and production volume variances; journal entries.
Time value of money, present value and future value of single amounts and annuities, ordinary annuity, annuity due, time value of money tables and formulas.
Financial statement analysis; ratios used to analyze companies’ abilities to generate profit and to meet long-term obligations, as well as the percentage of debts in a company’s capital structure; ratios that measure and explain companies’ profitability and coverage.
Budgeting is a critical part of a company’s planning process. In this tutorial, we will discuss why budgeting is important and then go over different kinds of budgets a manufacturing company might produce. Finally, we will show how information from the individual budgets are brought together to produce budgeted financial statements.