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.
Internal controls, internal control frameworks, COSO, segregation of duties, controls over financial reporting, control environment, control activities, information and communication, monitoring, information technology controls, application controls, financial fraud.
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.