Essay About Primary Purpose Of The Statement Of Cash Flows.Know And Topiccash Flow Statement

Cash Flow Statement
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Final Exam prep focus list-acct 1b by topicCash Flow Statement:Understand the primary purpose of the statement of cash flows.Know 3 categories of cash flow statement and meaning /significances of each categories,     Operating Activities, Investing Activities, and Financing Activities.Be able to compute cash provided (generated) and cash used for each of major activities in all 3 cash flow categories.Be able to prepare a partial cash flow statement in BOTH Direct and Indirect methods of preparing cash flow statement.Conceptual understanding of Increase or decrease of net cash provided/used by each of activities.General understanding of “non cash investing and financing activities” and its disclosure requirement on a financial statement.How do the following transactions impact on cash flow:sale of common stock.purchase of equipment.sale of land.issuance of long-term debt.inflows from revenue.inflows from sale of equipment.outflows for income taxes.outflows for wages.decrease in short-term notes payable.depreciation expense.decrease in inventory.loss on sale of equipment.LT Debt, Bonds, Note: Understand advantages and disadvantages of issuing Stocks vs. Bonds in an organization, in other words, “Equity financing” vs. “Debt financing” options to an organization, its’ ups and downs.  What are “bonds” to a corporation? What are bonds to an investor? What types of bonds are available in our country? What do they mean: convertible bonds, term bonds, serial bonds, callable bonds, debenture bonds?Conceptual understanding of “Discounting” bonds issuance vs. “Premium” bonds issuance, what are those “discounts” and “premium” amounts meant to the bond issuer and bondholders?Accounting Journal entries at the Inception of bonds issuance in BOTH issuing bonds with discounts and with premiums.Accounting Journal entries at periodic interest payments and amortizations of bond premium and bond discount over the life of the debt.Notes Payable, such as mortgage loan, vs. bondsCorporation equity financing chapters:Journal entries issuing shares for cash, issuing shares for services provided to the corporation.Component of SHE (Shareholders’ Equity Statement)How those 3 distinctively different corporate financing transactions are differing from each other: one, CASH dividend, two, STOCK dividend, and the third, stock SPLITS.Be able to calculate EPS (yes, that is Earning Per Share)Good conceptual and mechanical understanding of RETAINED Earnings account in a typical corporate financial statement.Compute Retained Earnings account balance whether it’s beginning balance or it’s ending balance, how those balances show on SHE.Treasury shares what are those and how those are shown on a SHE.Issuing shares at what valuation base in finance and accounting world?  Fair market value, Cost, present value, or other values?Number of shares: outstanding, authorized, issued, treasury shares. How to tally up each.Effect of the declaration of a cash dividend by the corporation board of directors.        Financial statement analysis:Return of Assets, Return on Equity, how those two ratios are interrelated?Receivable and inventory turnover ratios, what do they indicate to a corporation?Solvency ratios, what are they?Basic horizontal and vertical analysis method, basics.Operating (fixed) assets (PP&E) and Contingent Liabilities:Intangible assets, what are they and how they show on a typical financial statement of a corporation? Patent, copy rights, trademarks, brandsGoodwill? Who?  How they are valued and recorded on a financial statement.Different depreciation methodologies: straight line depreciation, declining balance, units of production depreciation methods; should be able to compute the depreciation amount and journal entries using each of those methods. Research and Development costs to a corporation, how do they get treated in financial reporting?Contingent Liabilities, what are the rules on US GAAP, i.e. pending litigation, warranty, etc. Depletion, Amortization, Depreciation, are these 3 words are the same or how are they different from each other?Warranty cost, pending litigations, how those economic events are treated and shown on a financial report?Partnership:Partnership structure basics, what are the differences between corporations vs. a partnership in terms of financial statement?Investment:Equity method vs. cost method of accounting for LT investment.3 classifications of reporting investment.