Accounting Foundations

Introduction

• The importance of accounting
• What you should know

1. What Is Accounting?

• The four flavors of accounting
• Bookkeeping
• Financial accounting
• Managerial accounting
• Income taxes

2. Financial Accounting: Balance Sheet

• Who uses financial statements?
• The accounting equation
• Assets
• Liabilities
• Equity
• Balance sheet example: Walmart assets
• Balance sheet example: Walmart 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 revenues
• Income statement example: Walmart 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
• Break-even analysis: Computations
• Break-even 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. Income 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