Accounting Foundations

Introduction

• The importance of accounting

1. What Is Accounting?

• What are the four flavors of accounting?
• Bookkeeping
• Financial accounting
• Managerial accounting
• Income taxes

2. Financial Accounting: Balance Sheet

• Who uses financial statements?
• The accounting equation
• Accounting equation: Assets
• Accounting equation: Liabilities
• Accounting equation: Equity
• Balance sheet example: Walmart's assets
• Balance sheet example: Walmart's liabilities and equity
• Limitations of the balance sheet

3. Financial Accounting: Income Statement and Cash Flow

• The balance sheet and the income statement
• Overview of the income statement
• Earnings per share
• Income statement example: Walmart's revenues
• Income statement example: Walmart's expenses
• Overview of the cash flow statement
• Cash flow example
• Summary of financial reporting

4. Managerial Accounting

• DuPont and managerial accounting
• A closer look at managerial accounting
• Product costing: Materials and labor
• Product costing: Overhead
• Breakeven analysis: Computations
• Breakeven analysis: Interpretation and use
• Budgets: Realistic benchmarks
• Budgets: Solving problems in advance
• Performance evaluation example: Drilling contest
• Performance evaluation example: Optometrist
• Performance evaluation example: Stice Boys

5. Understanding Taxes

• The history of income taxes
• Tax brackets
• Average and marginal tax rates
• Tax deductions and credits
• Capital gains vs. ordinary income
• Income tax summary

Conclusion

• Conclusion