Accounting Concepts Overview
Learning Accounting Concepts is a must if you want to become a Financial Analyst or an Investment Banker. Here you will find awesome resources on Accounting covering topics like Balance Sheet (Assets, Liabilities and Shareholder's Equity), Income Statement and Cash Flow Statement. The topics covered here are not only cover basics accounting concepts but also go deep into advanced accounting as used by most financial analysts.
If you are new to accounting, then do go through the case study on accounting which will help you learn the basics of accounting in less than 1 hour.
WHAT YOU'LL LEARN IN THIS ACCOUNTING CONCEPT?
Here we discuss what is accounting, principles of accounting including the matching principle and conservatism principle, differences between cash basis and accrual accounting, differences between fiscal year and calendar year, differences between IFRS vs US GAAP, Fiscal vs Calendar Year and more.
20 RESOURCES ON ACCOUTING CONCEPTS
WHAT YOU'LL LEARN IN BOOKEEPING ACCOUNTING CONCEPT?
Bookeeping is recording day to day financial transactions of the business in a structured format so that it can be easily accessed and analyzed. Here we discuss what is debit and credit, journals and ledgers, trial balance, reconciliation of books, petty cash, debit note vs credit note etc.
WHAT YOU'LL LEARN IN BALANCE SHEET ACCOUNTING CONCEPT?
Balance Sheet is the snapshot of the company that provides details of its sources of funds and uses of funds at a given point in time. Here we discuss the accounting equation, assets, liabilities, bank vs company balance sheet, trial balance vs balance sheet, debt vs equity financing, revenue vs capital reserve etc.
17 RESOURCES ON BALANCE SHEET ACCOUNTING CONCEPT
WHAT YOU'LL LEARN IN ASSETS
Assets are divided into two parts - current assets and long term assets. It consists of company's property, plant and equipment, cash and cash equivalents, inventory, finished goods, accounts receivables and more. Here we discuss the differences between LIFO and FIFO inventory valuations, tangible and intangible assets, list of cash and cash equivalents, marketable securities, prepaid expenses and more
24 RESOURCES IN ASSETS ACCOUNTING CONCEPTS
WHAT YOU'LL LEARN IN LIABILITIES
Liabilities are also divided into two parts - current liabilities and long term liabilities. Current liabilities include accounts payable, accrued liabilities, notes payable, deferred expenses, unearned revenues and current portion of long term debt. Long-Term liabilities include the long term debt of the company. Additionally, we discuss here about financial lease vs operating lease, off balance sheet financing, accounting for derivatives and convertibles, minority interest etc.
21 RESOURCES IN LIABILITIES ACCOUNTING CONCEPTS
WHAT YOU'LL LEARN IN SHAREHOLDER'S EQUITY
Shareholders Equity is the capital contribution made by the shareholders of the company. It consists of common stock, additional paid-in capital, preferred stock, treasury stock, other comprehensive income and retained earnings. Here we also discuss how to calculate net worth of the company, what are preferred shares, share buybacks and accelerated buybacks, contingent shares, dilutive vs anti-dilutive securities and more.
31 RESOURCES IN SHAREHOLDERS ACCOUNTING CONCEPTS
- Shareholders Equity Statement
- Negative Shareholders Equity
- Par Value of Stock
- Share Capital
- Outstanding Shares (Definition, Formula) | Stocks Outstanding
- Additional Paid-in Capital on Balance Sheet
- Retained Earnings (Formula, Examples)
- How to Calculate Net Worth of a Company
- Owners Equity
- Preferred Shares
- Weighted average Shares average outstanding
WHAT YOU'LL LEARN IN INCOME STATEMENT ACCOUNTING CONCEPTS
Income Statement provides details of how the revenue of the company is relative to its expenses. Income Statement details the sales, as well as all types of expenses, includes selling, general and admin expenses, depreciation expenses, tax expenses, interest expense and more. Here we also discuss nonrecurring items, EBITDA, EBIT, Types of depreciation, capitalization vs expensing, net operating losses, tax shied, accounting profit vs economic profit and more.
43 RESOURCES IN THIS ACCOUNTING CONCEPT
- Income Statement | Top Examples | Template | Format | Analysis
- Cost of Goods Sold
- Direct Costs
- Indirect Costs
- Non Recurring Items
- EBIT vs EBITDA
- Depreciation - Formula
- EBITDA vs Operating Income
- Straight Line Depreciation Method
- Amortization of Intangible Assets
- Unrealized Gains (Losses)
- Non Cash Expense
- Share based compensation
- Restructuring Cost
- Extraordinary Items
- Double Taxation
- Net Operating Loss (NOL)
- Tax Shield
- Sundry Expenses
- Interest vs Dividend
- EBITDA vs Net Income
- EBIT vs Net Income
- EBIT vs Operating Income
- Accounting Profit vs Economic Profit
- Income Tax vs Payroll Tax
- Tax credits vs Tax deductions
- Gross Income vs Net Income
- Profit vs Revenue
- Revenue vs Earnings
- Revenue vs Income
- Profit vs Income
- Revenue vs Sales
- Capitalization vs Expensing
- Income Statement vs Balance Sheet
- Statement of Comprehensive Income
- FOB Destination
- Explicit Cost
- Implicit Cost
- Direct cost vs Indirect Cost
- Nopat vs Net Income
- Marginal Costing vs Absorption Costing
Cash Flow Statement
WHAT YOU'LL LEARN
Cash flow statement provides the overall flow of cash in the company during a particular year. It consists of cash flow from operations, cash flow from financing and cash flow from investments. Other topics we discuss here are direct vs indirect cash flows, differences between cash flow statement and fund flow statement.
WHAT YOU'LL LEARN
If you want to make a career in accounting, then this is the resource you must look at diligently. We discuss the top accounting interview questions along with tips and tricks to crack accounting interviews. Here we also discuss accounting careers like Financial Accounting, Management Accounting, Cost Accounting, Forensic Accounting, Bookkeeping and Auditing.
WHAT YOU'LL LEARN
Here we provide you with the list of top reference books on Accounting, finance for non finance, CPA Study Guide, Managemement Accounting, Auditing and Bookkeeping.
WHAT YOU'LL LEARN
Budgeting is a process of finding out the expected performance of the company through detailed projections of the financial results and operations of the business. This section covers what is budgeting and its key differences from forecasting