This unit emphasizes preparation, presentation, and analysis of key financial statements and related disclosures, including the statement of cash flows, balance sheet asset and equity sections, and notes such as Form 10-K entries. Building on foundational accounting mechanics from earlier units, students will apply reporting standards, prepare schedules (depreciation, inventory, bonds), and evaluate financial statements for accuracy, presentation, and ethical compliance in preparation for the capstone unit.
Learning Objectives
- Analyze and prepare the statement of cash flows using both direct and indirect methods, classifying operating, investing, and financing activities and reconciling cash changes with ledger balances
- Apply depreciation methods and inventory valuation techniques to compute expense, cost of goods sold, and carrying values, and prepare depreciation schedules and inventory reports
- Demonstrate preparation of journal entries and required disclosures for bonds, leases (lessor), research and development costs, and changes to stockholders’ equity, and compose explanatory notes suitable for a Form 10-K or annual report
- Evaluate financial statements and accompanying notes to identify unusual items, earnings management risks, activity and solvency measures, and ethical/reporting concerns in accordance with FASB guidance and GAAP
Curriculum
- 1 Section
- 26 Lessons
- 30 hours
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- Unit 3 — Financial Reporting and Analysis26
- 1.1Walking through the Cash Flow Sections20 mins
- 1.2Distinguishing among Depreciation Methods20 mins
- 1.3Classifying Inventory Types20 mins
- 1.4Exploring Activity Measures20 mins
- 1.5Reviewing Common Explanatory Notes20 mins
- 1.6Reading the Annual Report to Shareholders20 mins
- 1.7Crediting Research and Development Costs20 mins
- 1.8Presenting a Side-by-Side Comparison of Book and Tax Calculations20 mins
- 1.9Accounting for the Lessor20 mins
- 1.10Increasing Income with Misleading Events20 mins
- 1.11Corporate Accountant20 mins
- 1.12Accepting Financial Accounting Constraints20 mins
- 1.13Showing the Money: The Statement of Cash Flows20 mins
- 1.14Managing Cash20 mins
- 1.15Getting to Know the Financial Accounting Standards Board (FASB)20 mins
- 1.16Bringing It All Together in the Ledger20 mins
- 1.17Studying the Asset Section of the Balance Sheet20 mins
- 1.18Accounting for Bond Issuances20 mins
- 1.19Spotting Reductions to Stockholders’ Equity20 mins
- 1.20Watching Out for Unusual Income Statement Items20 mins
- 1.21Recognizing Methods for Preparing the Statement of Cash Flows20 mins
- 1.22Preparing a Depreciation Schedule20 mins
- 1.23Getting to Know Inventory Valuation Methods20 mins
- 1.24Analyzing Financial Statements20 mins
- 1.25Putting the Onus on the Preparer20 mins
- 1.26Walking through the Form 10-K20 mins
Instructor
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