Corporate Finance PowerPoint presentation. In this presentation, we’re going to continue on discussing the income statement. Get ready, it’s time to take your chance with corporate finance income statement continued. Remember that as we think about the financial statements, we can break them out into basically two objectives that an investor might have the investor would want to know two general things one, where does the company stand at a point in time with their approximate value as of a point in time? And two? What is the likelihood of their performance in the future? What how well, will they do in the future? How can we predict how well they will do, we’re going to base it on past performance. So the point in time statement is going to be the balance sheet. So remember, if you’re looking at financial statements, for the year ended, say, December 31, the balance sheet will be as of a point in time and therefore as of December 31, it will not be a range. Whereas if you’re looking at a time frame, meaning the beginning to the end of the period, so if you’re looking for financial statements for the period ended, or the year ended, December 31, then the income statement, the primary timing statement, will be represented, it’ll say January through December or for the year ended December 31.
Hello in this presentation we will discuss the income statement objectives. At the end of this presentation, we will be able to describe what an income statement is list the parts of the income statement and explain the reasons for an income statement. First, we’ll start off with a question we’ll which will explain the timing of the income statement or introduce us to an explanation of the timing of the income statement? And that is the question of asking somebody, how much do you make when we work through if we were to ask somebody how much they make? They would mentally make some type of assumption in order to answer that question, or they would ask you the question if they chose to answer at all. The question, What do you mean? Do you mean per month? Do you mean per year? Do you mean per week? And this is going to be something that needs to be answered in order to answer the question.
Advanced financial accounting PowerPoint presentation. In this presentation we’re going to take a look at an overview of the transfer of long term assets and services. In other words transfers between related entities. If we’re thinking about a consolidation process then transfers that we will have to deal with with the consolidation process with consolidating or eliminating journal entries, you’re ready to account with advanced financial accounts. intercompany transactions need to be removed in the consolidation process.
Advanced financial accounting PowerPoint presentation. In this presentation we will take a look at interim financial reporting or rules get ready to account with advanced financial accounting. Interim financial reporting rules started off with interim report. So interim reports they will cover a time period of less than a single year. So when we’re thinking about the interim reports, when we’re thinking about interim information, we have the year in information when we think about financial statements, we often what pops into most people’s head most of the time are going to be for the year ended financial statements income statement covering January through December balance sheet covering the year end. If it’s a fiscal year calendar year in interim, then we’re going to be talking about the financial statements at some interim period typically quarterly, quarterly meaning first, second, third quarter and then you got the yearly information for the fourth quarter. Therefore, the interim reports they will cover a time period of less than a single year. The goal is to provide timely information about the company’s options. Throughout the year, so obviously more information is nice. We want timely information for the decision makers, we got the year end reports, it would be nice if we have the quarterly reports, which we have now, to give us more timely information as the year goes by. quarterly reports are required to be published for publicly held companies. So if you’re a publicly held company, that company’s stock is being traded on stock exchanges and whatnot, then people need current information. The market needs current information. Therefore, it’s a requirement to have the quarterly reporting for that timely information. The quarterly reports can generally be thought of as smaller versions of the annual report. So when we think about the annual reporting, what’s going to be included in it, the quarterly reports is, as you would kind of expect, right a smaller version of that as we’re doing the reporting for a timeframe that’s going to be less than the entire year. Here some type of interim reporting requirements form q 10 q or form 10 q sec s quarterly report.
Advanced financial accounting PowerPoint presentation. In this presentation, we will give an overview of segment reporting, get ready to account with advanced financial accounting, overview segment reporting. So when we think about segment reporting, we’re thinking about a company breaking that company into the segments. And when we think about the segments, two questions we want to consider are what is a segment? How does one qualify or how does a segment qualify as a segment and once qualifying for a segment, then what are going to be the financial reporting that needs to be done for the segment? So three characteristics of an operating segment, the component units, business activities, generate revenue and incur expenses. So the component unit that unit you can think about like a separate unit incurs revenue and has expenses including any revenue or expenses in transactions with other business units of the company? So we’re including the transactions if you’re thinking about it as a different segment, a different unit? You’re thinking okay, they have revenue and expenses with In the revenue worth, we’re also including any revenue or expenses, in transactions with other business units of the company. So you’re kind of thinking about a segment as being somewhat autonomous in and of itself here, and therefore having its own basically revenue and expenses, although it can be connected to other segments, the component units, operating results are regularly reviewed by the entities Chief Operating mark, operating decision maker.
Hello in this lecture, we’re going to talk about the closing process step three of the four step closing process, which will include the close of the income summary to the capital account. Remember that our objective is to close out all the temporary accounts, which are all the accounts below capital, including drawers, and the income statement accounts of revenue and expenses. So we want the adjusted trial balance to be converted to the post, post closing trial balance, which means that everything from capital on down will be zero. The way we do that is the four steps and that includes step one we did in a prior video closeout income to the income summary. Step two was to close out expenses to the income summary. Step three is what we’re going to do now close out the income summary now having net income in it to the capital account, then we’re finally going to close out the draws to the capital account.
Hello in this lecture, we’re going to talk about the closing process. Step two of the four step process being closing the expense accounts to the income summary. Remember that the goal of the closing process is to close out the temporary accounts that would include the drawers as well as all the income statement accounts, including revenue and expenses to the capital account. So we want our adjusted trial balance to thing we used to make our financial statements to look like the post closing trial balance with all the zeros from the capital accounts down. How do we do that? Last time we did the first step step one, which was to close out income to the income summary. This time we’re going to close out expenses to the income summary. Next time we’re going to close out the income summary to the capital account. And finally closeout draws to the capital account.
Hello, in this lecture, we’re going to talk about the closing process step one of the step four process. Last time, we talked about the objectives of the closing process, which in essence was to close out the temporary accounts, all the accounts from the draws, and the revenue and expenses on down to zero. Putting that balance into the capital account, we talked about how we were going to do that, we’re going to do a four step process, including closeout, the income to the income summary, and then close out the expenses to the income summary. And then we’re going to close out the entire income summary to the capital account. And finally closeout draws to the capital account. We’re going to start off with step one of those four step processes. In order to do this. We are adding this new account you’ve probably been wondering, income summary account, what is that? Where did it come from? Why is it there? The income summary can be called a clearing account, meaning it’s going to start at zero and it’s going to end at zero right when we’re done with this four step process which we’re going to do basically at the same point. Time.
Hello in this lecture we’re going to talk about the objectives of the closing process the closing process will happen after the financial statements have been created. So we will have done the journal entries where we will have compiled those journal entries into a trial balance, and then we will have made the financial statements. And then as of the end of the period in this case, we’re going to say as of December, when we move into the next time period, January, what we need to do is close out some of the temporary accounts those accounts including the income statement and the draws account so that we can start the new period from start in a similar way as if we were trying to see how many miles we could drive say in a month. If we wanted to Vince in December, and then see how many miles we’re going to drive in January of next year.
Hello in this lecture we will discuss the accounting building blocks and the double entry accounting system. At the end of this we will be able to define and describe the double entry accounting system, write down the accounting equation and define each individual part of it, define and describe debits and credits, define a balance sheet and list its parts define an income statement list its parts and explain the relationship between the balance sheet and the income statement. Okay, so starting off every business and accounting software uses the double entry accounting system. So the double entry accounting system, it’s kind of like the math behind the calculator, every software is going to use it. In order to understand what the system is doing, we need to understand the double entry accounting system.