TAILIEUCHUNG - Lecture Introduction to Accounting: An integrated approach: Chapter 18 - Penne Ainsworth, Dan Deines

Chapter 18 - Company performance: Owners' equity and financial position. The goals of this chapter are: Discuss the importance of the statement of owners' equity, describe the importance of balance sheet classifications, explain why internal balance sheet information may be different from external balance sheet information. | Chapter 18 Company Performance: Owners’ Equity and Financial Position Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 18- What are the Components of the Statement of Owners’ Equity? Comprehensive income Foreign currency translation adjustments Pension liability adjustments Unrealized gains/losses from available-for-sale securities (see Chapter 17 discussion) Retained earnings Net income Dividends declared Other disclosures Changes in common, preferred, and treasury stock 18- What is a Prior Period Adjustment? Correction of an error made in previous period that impacted net income Since revenue and expense accounts are closed to retained earnings, retained earnings is corrected for the error (net of tax) 18- What are the Common Asset Classifications on the Balance Sheet? Current assets Sold or consumed within one year Investments Long-term nonoperational investments Property, plant, and equity Long-term operational investments 18- Asset Classifications Continued Intangibles Long-term operational investments (legal rights) Other Deferred charges 18- What are the Common Liability Classifications on the Balance Sheet? Current liabilities Paid or discharged within on year Long-term debt Long-term obligations to creditors Other Deferred charges, pensions, etc. 18- How is Stockholders’ Equity Reported on the Balance Sheet? Contributed capital Common stock, preferred stock, and additional paid-in capital (from common, preferred, and treasury) Retained earnings Accumulated comprehensive income items Treasury stock Contra owners’ equity 18- Why are Current Costs Often used for Internal Reporting? Historical costs do not represent the current value of the asset, so determining the replacement cost or current selling price of the asset may be preferable Example: Retained earnings & balance sheet, tax rate 25%, in thousands Accounts payable, $950 Accounts receivable, $870 Accumulated depreciation, buildings,

• Kế toán - Kiểm toán
• Introduction to Accounting
• Business operating activities
• Lecture Introduction to Accounting
• Capital resource process
• Company performance
• Financial position
• Accounting information systems
• Accounting events
• Financial accounting
• Lecture Financial accounting
• Accounting information
• Management accounting
• Accounting standards
• Accounting equation
• Lecture Introduction to financial accounting
• Financial statements
• Business activities
• Financing activities
• Investing activities
• Business processes
• Lecture Introduction to cost accounting
• Introduction to cost accounting
• Traditional method
• Activity based costing
• Managerial accounting issues
• Accounting method
• Cash basis method
• Accrual method
• Survey of accounting
• Lecture Survey of accounting
• Accounting for cash
• Accounting cycle
• Managerial accounting
• Product costing
• Financial resources
• Accounting provides information
• Lecture Accounting 1
• The Accounting equation
• Operating processes
• Conversion process
• Short term decision making
• Cost volume profit model
• Strategic planning
• Balanced scorecard
• Costs of budgeting
• Human resources
• Payment process
• Evaluating conversion process activities
• Customer support process
• Revenue process
• Time value of money
• Planning investments
• Capital budgeting
• Planning equity financing
• Financial risk