closing entries. F*18.Accrual basis accounting. F*19.Purpose of reversing entries. F*20.Adjusted trial balance. MULTIPLE CHOICE—Conceptual AnswerNo.Description d21.Purpose of an accounting system. d22.Necessity of accounting records. d23.Purpose of an accounting system. d24.Book of original entry. d25.Purpose of trial balance. d26.Identification of a real account. b27.Identification of a temporary account. a28.Temporary vs. permanent accounts.
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Chapter 1 1. What is finance * Finance is the study of the flow of money * Borrowing and lending * Financial institutions-the middle man * Financial instruments and markets 2. Fields and jobs in finance * Money and capital market * Markets and institutions that provide short and long term capital: investment banks, banks, mutual funds, insurance companies, stockbrokers * Regulators: Fed, SEC (security and exchange commission) * Investments * Security analysis
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Basic Accounting Concepts and Business Structures Different types of businesses use different accounting methods, small businesses tend to use the cash-basis of accounting, whereas the accrual method is a requirement for large business with revenue more than 5 million. Uniformity of accounting information is important when making decisions for or about a business. A hierarchy of sources provides structure for the generally accepted accounting principles (GAAP). Along with the hierarchy of sources
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Financial Statements, Segments, & Interim Reporting 74 XI. Partnership Accounting 77 XII. Inventory 80 XIII. Investments 86 XIV. Leases 88 XV. Current Assets & Liabilities 92 XVI. Not-For-Profit Accounting 94 XVII. Pensions 100 XVIII. Statement of Cash Flows 102 XIX. Stockholders’ Equity 104 2 The N.I.N.J.A. Framework NAIL THE CONCEPTS Watch your CPA Review videos first – before working any assigned homework questions. The CPA Review industry says to watch a section of CPA Review video
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1. 2. 3. 4. 5. 6. 7. 8. 9. Accounting Identity Time Value of Money Risk vs Reward Diversification Leverage Cash vs Accrual Cash & Free Cash Flow Sunk Costs Opportunity Costs A. B. C. D. E. F. G. H. I. J. K. Agency Conflicts Capital Structure Cost of Capital - WACC Market Efficiency Arbitrage – No Free Lunch NPV vs IRR Relevant Costs CAPM Hedging Inflation Taxes Financing Growth and Expansion 1. Assets = Liabilities All resources are owed to someone: they belong to someone. 2
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accounting concepts and business structures. These basic accounting concepts include but are not limited to the Generally Accepted Accounting Principles, the qualities of effective accounting information, and the differences between accrual based accounting and cash based accounting. The different types of business structure are also an important concept in understanding the basics of accounting. Generally Accepted Accounting Principles: Sources and Hierarchy The stock market crash of 1929, which
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principal. Within the healthcare setting financial statements must be audited by CPAs which makes GAAP relevant in healthcare. The most important GAAP concepts are: 1. Entity concept 2. Going-concern concept 3. Matching principle and cash versus accrual accounting 4. Cost principal 5. Objective evidence 6. Materiality 7. Consistency 8. Full disclosure Entity Concept The entity concept is the organization or person that is the focus of the financial statements. As it
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FINANCIAL DUE-DILIGENCE August 26, 2010 26 ♣ Nitin Arora II Associate Director II Corporate Catalyst India www.cci.in Financial Due Diligence (FDD) Financial Due Diligence is a reasonable level of enquiry into the financial affairs having a material impact on the prospects of the business A FDD review may not only look at the historical financial performance of a business but will generally consider the forecast financial performance also The objective is to ensure that prospective
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medical office is to have a structured financial statement and a team of accountants to audit the establishment. The generally accepted accounting principles that are reviewed include entity concept, going-concern concept, matching principle and cash vs. accrual accounting, the cost principle, objective evidence, materiality, consistency, and full disclosure. The “certified professional accountants are required to indicate whether an audited set of financial statements is in compliance with generally
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o Include a brief description of each principle and the intention behind the principle. o Relate each principle to health care. Entity concept - The entity is the person or organization that is the focus of attention. A large medical center that includes a hospital, nursing school, medical school, and long-term care facility is an entity. Accounting records may be kept for that entity as a whole. However, the hospital, nursing school, medical school, and long-term care facility that make
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