Comprehensive Financial Accounting Roadmap

A Complete Guide to Mastering Financial Accounting from Foundations to Advanced Topics

14 Phases
80+ Topics
40+ Weeks
0

Foundation & Prerequisites

2-4 weeks

Basic Business Concepts

  • Business entities (sole proprietorship, partnership, corporation, LLC)
  • Business cycles and operations
  • Stakeholders and their information needs
  • Economic vs accounting perspective
  • Business ethics and corporate governance

Mathematical Foundation

  • Basic arithmetic and percentages
  • Ratios and proportions
  • Time value of money concepts
  • Simple and compound interest
  • Present value and future value calculations

Introduction to Accounting

  • Definition and scope of accounting
  • Accounting as information system
  • Users of accounting information (internal vs external)
  • Branches of accounting (financial, managerial, tax, auditing)
  • Accounting profession and career paths
  • Regulatory environment overview
1

Fundamental Accounting Concepts

4-6 weeks

Accounting Equation and Double-Entry System

  • Assets = Liabilities + Equity (fundamental equation)
  • Expanded accounting equation
  • Types of accounts (assets, liabilities, equity, revenue, expenses)
  • Account classification
  • Normal balances for each account type
  • Double-entry bookkeeping principles
  • Debit and credit rules
  • T-accounts and their application

Generally Accepted Accounting Principles (GAAP)

  • Historical cost principle
  • Revenue recognition principle
  • Matching principle
  • Full disclosure principle
  • Materiality principle
  • Consistency principle
  • Conservatism principle
  • Going concern assumption
  • Economic entity assumption
  • Monetary unit assumption
  • Periodicity assumption

International Financial Reporting Standards (IFRS)

  • IFRS vs GAAP comparison
  • Conceptual framework
  • Qualitative characteristics of financial information
  • Recognition and measurement principles
  • Global convergence efforts
  • Key differences in major standards

The Accounting Cycle

  • Analyzing and recording transactions
  • Journalizing (general journal entries)
  • Posting to ledger accounts
  • Preparing unadjusted trial balance
  • Recording adjusting entries
  • Preparing adjusted trial balance
  • Preparing financial statements
  • Recording closing entries
  • Preparing post-closing trial balance
  • Reversing entries (optional)
2

Transaction Analysis & Recording

6-8 weeks

Chart of Accounts

  • Designing chart of accounts
  • Account numbering systems
  • Account classification structure
  • Customization for different industries
  • Subsidiary ledgers vs general ledger

Journals and Journalizing

  • General journal format and entries
  • Special journals (sales, purchases, cash receipts, cash disbursements)
  • Compound journal entries
  • Correcting entries
  • Journal entry documentation
  • Source documents (invoices, receipts, checks, etc.)

Ledgers and Posting

  • General ledger structure
  • Subsidiary ledgers (accounts receivable, accounts payable, inventory)
  • Three-column account format
  • Four-column account format
  • Posting process and cross-referencing
  • Account reconciliation

Trial Balance

  • Purpose and preparation
  • Unadjusted trial balance
  • Detecting and correcting errors
  • Limitations of trial balance
  • Transposition and slide errors
3

Adjusting Entries & Worksheet

4-6 weeks

Accrual Accounting

  • Cash basis vs accrual basis
  • Revenue recognition under accrual accounting
  • Expense recognition under accrual accounting
  • Timing differences

Types of Adjusting Entries

  • Prepaid expenses (deferred expenses)
  • Unearned revenues (deferred revenues)
  • Accrued expenses
  • Accrued revenues
  • Depreciation adjustments
  • Bad debt adjustments
  • Inventory adjustments

Specific Adjusting Entry Categories

  • Depreciation of fixed assets
  • Amortization of intangible assets
  • Depletion of natural resources
  • Allowance for doubtful accounts
  • Inventory write-downs
  • Prepaid insurance adjustments
  • Interest accruals
  • Salary and wage accruals
  • Tax accruals

Worksheet Preparation

  • Worksheet format (10-column, 12-column)
  • Trial balance columns
  • Adjustments columns
  • Adjusted trial balance columns
  • Income statement columns
  • Balance sheet columns
  • Using worksheets for financial statement preparation
4

Financial Statements

6-8 weeks

Income Statement (Statement of Comprehensive Income)

  • Single-step income statement format
  • Multi-step income statement format
  • Revenue section
  • Cost of goods sold section
  • Gross profit calculation
  • Operating expenses (selling and administrative)
  • Operating income calculation
  • Non-operating items (other revenues and expenses)
  • Income before taxes
  • Income tax expense
  • Net income calculation
  • Earnings per share (basic and diluted)
  • Comprehensive income components
  • Other comprehensive income items

Statement of Retained Earnings (Statement of Changes in Equity)

  • Beginning retained earnings balance
  • Prior period adjustments
  • Net income addition
  • Dividends declaration and payment
  • Stock dividends and stock splits
  • Ending retained earnings balance
  • Comprehensive statement of stockholders' equity
  • Treasury stock transactions
  • Additional paid-in capital changes

Balance Sheet (Statement of Financial Position)

  • Account form vs report form
  • Classified balance sheet structure
  • Current assets classification and ordering
  • Long-term investments
  • Property, plant, and equipment
  • Intangible assets
  • Other assets
  • Current liabilities classification
  • Long-term liabilities
  • Stockholders' equity section (common stock, preferred stock, retained earnings)
  • Working capital calculation
  • Liquidity presentation

Statement of Cash Flows

  • Operating activities (direct and indirect method)
  • Investing activities
  • Financing activities
  • Non-cash investing and financing activities
  • Cash and cash equivalents definition
  • Free cash flow calculation
  • Reconciliation of net income to cash from operations

Notes to Financial Statements

  • Summary of significant accounting policies
  • Detailed disclosures for major accounts
  • Contingent liabilities
  • Subsequent events
  • Related party transactions
  • Segment reporting
  • Fair value measurements
  • Going concern disclosures
5

Current Assets Accounting

6-8 weeks

Cash and Cash Equivalents

  • Components of cash
  • Cash management principles
  • Petty cash systems and imprest system
  • Bank reconciliation process
  • Outstanding checks
  • Deposits in transit
  • Bank errors vs book errors
  • NSF checks handling
  • Electronic funds transfers
  • Cash controls and internal controls over cash
  • Compensating balances
  • Restricted cash

Accounts Receivable

  • Recognition of accounts receivable
  • Trade discounts vs cash discounts
  • Sales returns and allowances
  • Credit terms (2/10, n/30, etc.)
  • Gross method vs net method for recording discounts
  • Factoring receivables
  • Pledging receivables
  • Assigning receivables
  • Credit card sales
  • Debit card sales

Bad Debts and Allowance Method

  • Direct write-off method
  • Allowance method
  • Percentage of sales approach
  • Percentage of receivables approach
  • Aging of accounts receivable method
  • Writing off uncollectible accounts
  • Recovery of accounts previously written off
  • Impact on financial statements

Notes Receivable

  • Promissory notes basics
  • Interest-bearing notes
  • Non-interest-bearing notes
  • Discounting notes receivable
  • Dishonored notes
  • Accruing interest on notes
  • Recording note transactions

Inventory - Perpetual System

  • Perpetual inventory system mechanics
  • Recording purchases and purchase returns
  • Purchase discounts
  • Freight costs (FOB shipping point vs FOB destination)
  • Recording sales and cost of goods sold
  • Sales returns impact on inventory
  • Inventory subsidiary ledger

Inventory - Periodic System

  • Periodic inventory system mechanics
  • Purchases account
  • Purchase returns and allowances account
  • Purchase discounts account
  • Freight-in account
  • Calculating cost of goods sold
  • Physical inventory count
  • Closing inventory accounts

Inventory Costing Methods

  • Specific identification method
  • First-In, First-Out (FIFO)
  • Last-In, First-Out (LIFO)
  • Weighted average method
  • Moving average method
  • Comparison of methods under different economic conditions
  • LIFO reserve and LIFO liquidation
  • Impact on financial statements and taxes
  • Lower of cost or market (LCM) rule
  • Lower of cost or net realizable value (LCNRV)

Inventory Estimation Methods

  • Gross profit method
  • Retail inventory method (conventional, FIFO, LIFO, average)
  • Dollar-value LIFO retail method

Short-term Investments

  • Classification of investments
  • Trading securities
  • Available-for-sale securities
  • Held-to-maturity securities
  • Equity method investments
  • Fair value adjustments
  • Unrealized gains and losses
  • Dividend and interest income recognition
6

Long-Term Assets

8-10 weeks

Property, Plant, and Equipment - Acquisition

  • Historical cost principle application
  • Land acquisition costs
  • Building acquisition and construction costs
  • Equipment acquisition costs
  • Lump-sum purchases (basket purchase allocation)
  • Self-constructed assets
  • Capitalized interest during construction
  • Assets acquired through exchange
  • Assets acquired through donation
  • Deferred payment contracts

Depreciation Methods

  • Straight-line depreciation
  • Units-of-production method
  • Declining balance method (double-declining balance)
  • Sum-of-the-years'-digits method
  • Partial year depreciation
  • Depreciation for tax purposes (MACRS)
  • Group and composite depreciation
  • Component depreciation under IFRS
  • Revision of depreciation estimates
  • Impairment considerations

Expenditures After Acquisition

  • Revenue expenditures vs capital expenditures
  • Additions to plant assets
  • Improvements and replacements
  • Extraordinary repairs
  • Ordinary repairs and maintenance
  • Impact on depreciation calculations

Disposal of Plant Assets

  • Sale of plant assets
  • Retirement of plant assets
  • Exchange of plant assets (commercial substance)
  • Exchange without commercial substance
  • Involuntary conversions
  • Gains and losses on disposal

Natural Resources

  • Acquisition costs for natural resources
  • Exploration and development costs
  • Depletion calculation and methods
  • Units-of-production depletion
  • Depreciation of equipment used in extraction
  • Restoration and reclamation costs
  • Asset retirement obligations

Intangible Assets

  • Characteristics of intangible assets
  • Identifiable vs unidentifiable intangibles
  • Patents acquisition and amortization
  • Copyrights
  • Trademarks and trade names
  • Franchises and licenses
  • Customer lists and databases
  • Research and development costs
  • Software development costs
  • Start-up costs
  • Internally developed intangibles vs purchased
  • Finite-life vs indefinite-life intangibles
  • Amortization methods
  • Impairment testing for intangibles

Goodwill

  • Goodwill recognition in business combinations
  • Measuring goodwill
  • Negative goodwill (bargain purchase)
  • Goodwill impairment testing
  • Reporting unit concept
  • Non-amortization of goodwill

Asset Impairment

  • Indicators of impairment
  • Impairment testing process
  • Recoverable amount determination
  • Recognition of impairment losses
  • Reversal of impairment losses (IFRS vs GAAP)
  • Cash-generating units
  • Goodwill impairment
7

Current Liabilities

4-6 weeks

Accounts Payable and Accrued Liabilities

  • Trade accounts payable
  • Recording purchase transactions
  • Purchase discounts (gross vs net method)
  • Accrued expenses (salaries, interest, taxes)
  • Unearned revenues
  • Sales taxes payable
  • Payroll taxes payable
  • Income taxes payable
  • Property taxes

Short-term Notes Payable

  • Interest-bearing notes
  • Non-interest-bearing notes
  • Notes issued for cash
  • Notes issued for goods or services
  • Interest calculation and accrual
  • Note renewals

Payroll Accounting

  • Gross pay calculation
  • Employee withholdings (federal income tax, state income tax, FICA)
  • Net pay calculation
  • Employer payroll taxes (FICA, FUTA, SUTA)
  • Recording payroll transactions
  • Payroll register and employee earnings records
  • Payment of withholdings and employer taxes
  • Vacation and sick leave accruals
  • Bonus and commission calculations

Current Portion of Long-term Debt

  • Classification as current liability
  • Reclassification from long-term to current
  • Scheduled principal payments
  • Presentation on balance sheet

Contingent Liabilities

  • Probable and estimable contingencies
  • Reasonably possible contingencies
  • Remote contingencies
  • Product warranties and guarantees
  • Litigation contingencies
  • Environmental liabilities
  • Self-insurance
  • Disclosure requirements
8

Long-Term Liabilities

6-8 weeks

Bonds Payable - Basics

  • Bond characteristics and terminology
  • Face value, stated rate, market rate
  • Bond indenture and covenants
  • Secured vs unsecured bonds
  • Term bonds vs serial bonds
  • Registered vs bearer bonds
  • Callable and convertible bonds
  • Bond pricing principles

Bond Issuance

  • Bonds issued at par
  • Bonds issued at discount
  • Bonds issued at premium
  • Determining bond price (present value calculations)
  • Recording bond issuance transactions
  • Bond issue costs treatment

Bond Interest and Amortization

  • Straight-line amortization method
  • Effective interest method (preferred method)
  • Amortization of bond discount
  • Amortization of bond premium
  • Interest expense calculation
  • Accruing bond interest at year-end
  • Amortization schedules

Bond Retirement

  • Retirement at maturity
  • Retirement before maturity
  • Callable bonds redemption
  • Gains and losses on bond retirement
  • Convertible bonds conversion
  • Induced conversions

Long-term Notes Payable

  • Installment notes
  • Mortgage notes payable
  • Amortization schedules for installment notes
  • Interest and principal allocation
  • Current vs long-term portion classification

Lease Accounting (Lessee Perspective)

  • Operating leases
  • Finance leases (capital leases)
  • Classification criteria
  • Initial recognition and measurement
  • Right-of-use asset
  • Lease liability
  • Subsequent measurement
  • Lease modifications
  • Short-term lease exemption
  • Low-value asset exemption
  • Presentation and disclosure

Lease Accounting (Lessor Perspective)

  • Operating lease accounting
  • Sales-type lease
  • Direct financing lease
  • Classification and recognition
  • Lease receivable
  • Unearned interest revenue
  • Residual value considerations

Pension and Post-retirement Benefits

  • Defined contribution plans
  • Defined benefit plans
  • Pension expense components
  • Service cost
  • Interest cost
  • Expected return on plan assets
  • Amortization of prior service cost
  • Amortization of actuarial gains/losses
  • Projected benefit obligation (PBO)
  • Plan assets
  • Funded status recognition
  • Other post-employment benefits (OPEB)

Deferred Tax Liabilities

  • Temporary differences vs permanent differences
  • Future taxable amounts
  • Deferred tax liability recognition
  • Measurement of deferred taxes
  • Changes in tax rates
  • Presentation on balance sheet
9

Stockholders' Equity

6-8 weeks

Corporate Form and Stock Basics

  • Characteristics of corporations
  • Advantages and disadvantages
  • Corporate charter and bylaws
  • Authorized, issued, and outstanding shares
  • Par value vs no-par value stock
  • Stated value stock
  • Common stock characteristics
  • Preferred stock characteristics (cumulative, participating, convertible, callable)

Stock Issuance

  • Issuing par value stock for cash
  • Issuing no-par stock for cash
  • Issuing stock for non-cash assets or services
  • Stock subscriptions
  • Stock issue costs
  • Additional paid-in capital

Treasury Stock

  • Reasons for acquiring treasury stock
  • Cost method for treasury stock
  • Par value method for treasury stock
  • Reissuance of treasury stock above cost
  • Reissuance of treasury stock below cost
  • Retirement of treasury stock
  • Presentation on balance sheet

Dividends

  • Cash dividends declaration and payment
  • Important dividend dates (declaration, record, payment)
  • Property dividends
  • Scrip dividends
  • Liquidating dividends
  • Dividend preferences for preferred stock
  • Dividends in arrears
  • Participating preferred stock dividends

Stock Dividends and Stock Splits

  • Small stock dividends (< 20-25%)
  • Large stock dividends (> 20-25%)
  • Recording stock dividend transactions
  • Stock splits
  • Reverse stock splits
  • Effects on par value and shares outstanding
  • Effects on stockholders' equity accounts

Retained Earnings

  • Appropriations of retained earnings
  • Restrictions on retained earnings
  • Prior period adjustments
  • Correction of errors
  • Statement of retained earnings presentation

Accumulated Other Comprehensive Income

  • Components of other comprehensive income
  • Foreign currency translation adjustments
  • Unrealized gains/losses on available-for-sale securities
  • Pension liability adjustments
  • Effective portion of cash flow hedges
  • Presentation in stockholders' equity

Earnings Per Share (EPS)

  • Simple capital structure
  • Basic EPS calculation
  • Weighted average shares outstanding
  • Complex capital structure
  • Diluted EPS calculation
  • Potentially dilutive securities
  • Stock options and warrants (treasury stock method)
  • Convertible securities (if-converted method)
  • Antidilutive securities
  • EPS presentation requirements
10

Statement of Cash Flows

6-8 weeks

Cash Flow Statement Fundamentals

  • Purpose and usefulness
  • Cash and cash equivalents definition
  • Classification of cash flows
  • Operating activities
  • Investing activities
  • Financing activities
  • Non-cash investing and financing activities

Operating Activities - Indirect Method

  • Starting with net income
  • Adjustments for non-cash expenses (depreciation, amortization)
  • Adjustments for gains and losses
  • Changes in current assets
  • Changes in current liabilities
  • Reconciliation format
  • Step-by-step preparation process

Operating Activities - Direct Method

  • Cash receipts from customers
  • Cash payments to suppliers
  • Cash payments for operating expenses
  • Cash payments for interest
  • Cash payments for taxes
  • Converting accrual amounts to cash amounts
  • Reconciliation to net income

Investing Activities

  • Purchase of property, plant, and equipment
  • Sale of property, plant, and equipment
  • Purchase of investments
  • Sale of investments
  • Loans made to others
  • Collection of loans
  • Acquisition of other businesses

Financing Activities

  • Issuance of stock
  • Repurchase of stock (treasury stock)
  • Borrowing cash (bonds, notes)
  • Repayment of debt
  • Payment of dividends
  • Payment of finance lease obligations

Advanced Cash Flow Topics

  • T-account method for preparation
  • Worksheet method for preparation
  • Analysis of complex transactions
  • Treatment of stock dividends and splits
  • Treatment of bond premium/discount amortization
  • Foreign currency cash flows
  • Discontinued operations impact

Cash Flow Analysis

  • Free cash flow calculation
  • Cash flow adequacy ratios
  • Quality of earnings assessment
  • Cash flow patterns analysis
  • Operating cash flow ratio
  • Cash flow to sales ratio
  • Cash return on assets
11

Financial Statement Analysis

6-8 weeks

Analysis Tools and Techniques

  • Horizontal analysis (trend analysis)
  • Vertical analysis (common-size statements)
  • Ratio analysis
  • Comparative financial statements
  • Index-number trend analysis
  • Benchmarking against industry standards

Liquidity Ratios

  • Current ratio
  • Quick ratio (acid-test ratio)
  • Cash ratio
  • Working capital calculation
  • Defensive interval ratio
  • Cash conversion cycle
  • Days sales in receivables
  • Receivables turnover ratio
  • Days sales in inventory
  • Inventory turnover ratio

Profitability Ratios

  • Gross profit margin
  • Operating profit margin
  • Net profit margin
  • Return on assets (ROA)
  • Return on equity (ROE)
  • Return on invested capital (ROIC)
  • DuPont analysis (ROE decomposition)
  • Earnings per share
  • Price-earnings ratio
  • Dividend yield
  • Payout ratio

Solvency Ratios (Long-term Stability)

  • Debt-to-assets ratio
  • Debt-to-equity ratio
  • Equity ratio
  • Times interest earned ratio
  • Fixed charge coverage ratio
  • Cash flow to debt ratio
  • Debt service coverage ratio

Efficiency Ratios (Activity Ratios)

  • Asset turnover ratio
  • Fixed asset turnover
  • Total asset turnover
  • Accounts receivable turnover
  • Inventory turnover
  • Accounts payable turnover
  • Cash conversion cycle
  • Operating cycle

Market Value Ratios

  • Price-earnings (P/E) ratio
  • Market-to-book ratio
  • Dividend yield
  • Dividend payout ratio
  • Earnings yield
  • Price-to-sales ratio
  • Enterprise value multiples

Limitations of Financial Analysis

  • Historical nature of data
  • Use of estimates and judgments
  • Accounting policy differences
  • Inflation effects
  • Non-financial factors
  • Industry variations
  • Manipulation and earnings management
12

Special Accounting Topics

8-10 weeks

Revenue Recognition (ASC 606 / IFRS 15)

  • Five-step revenue recognition model
  • Identify the contract with customer
  • Identify performance obligations
  • Determine transaction price
  • Allocate transaction price
  • Recognize revenue when performance obligation satisfied
  • Point in time vs over time recognition
  • Variable consideration
  • Significant financing component
  • Non-cash consideration
  • Principal vs agent considerations
  • Contract modifications
  • Contract costs
  • Disclosure requirements

Accounting Changes and Error Corrections

  • Changes in accounting principle
  • Changes in accounting estimate
  • Changes in reporting entity
  • Error corrections
  • Retrospective application
  • Prospective application
  • Restatement of prior periods
  • Disclosure requirements

Interim Financial Reporting

  • Discrete approach vs integral approach
  • Seasonal revenues and expenses
  • Inventory and LIFO liquidations
  • Income tax allocation
  • Discontinued operations
  • Changes in accounting principle
  • Minimum disclosure requirements

Segment Reporting

  • Operating segments identification
  • Reportable segments criteria
  • Quantitative thresholds
  • Segment information disclosures
  • Reconciliations to consolidated amounts
  • Entity-wide disclosures
  • Geographic information
  • Major customer information

Foreign Currency Transactions

  • Foreign currency transaction basics
  • Recording transactions in foreign currency
  • Foreign exchange gains and losses
  • Forward contracts as hedges
  • Foreign currency denominated receivables and payables
  • Settlement of foreign currency transactions

Consolidated Financial Statements

  • Parent-subsidiary relationships
  • Control concept
  • Consolidation process
  • Elimination entries
  • Intercompany transactions elimination
  • Non-controlling interests
  • Goodwill in consolidation
  • Equity method vs consolidation
  • Step acquisitions
  • Disposal of subsidiaries

Investments in Equity Securities

  • Fair value through profit or loss (FVTPL)
  • Fair value through other comprehensive income (FVOCI)
  • Equity method accounting
  • Significant influence criteria
  • Cost method (for non-influential investments)
  • Investor's share of investee income
  • Dividends from investee
  • Intercompany profits elimination

Derivatives and Hedging

  • Derivative instruments basics
  • Forward contracts
  • Futures contracts
  • Options contracts
  • Swaps
  • Fair value hedges
  • Cash flow hedges
  • Hedge effectiveness testing
  • Hedge accounting requirements
  • Disclosure requirements

Fair Value Measurements

  • Fair value definition
  • Fair value hierarchy (Level 1, 2, 3)
  • Valuation techniques
  • Market approach
  • Income approach
  • Cost approach
  • Principal market vs most advantageous market
  • Highest and best use
  • Disclosure requirements

Business Combinations

  • Acquisition method
  • Identifying the acquirer
  • Determining acquisition date
  • Measuring consideration transferred
  • Recognizing and measuring identifiable assets and liabilities
  • Goodwill calculation
  • Bargain purchase
  • Contingent consideration
  • Acquisition-related costs
  • Measurement period adjustments
13

Governmental & Non-Profit Accounting

6-8 weeks (Optional)

Governmental Accounting Fundamentals

  • Government accounting standards (GASB)
  • Fund accounting concept
  • Measurement focus and basis of accounting
  • Modified accrual vs accrual accounting
  • Governmental vs proprietary vs fiduciary funds

Governmental Fund Types

  • General fund
  • Special revenue funds
  • Capital projects funds
  • Debt service funds
  • Permanent funds
  • Recording budgets
  • Encumbrance accounting

Proprietary and Fiduciary Funds

  • Enterprise funds
  • Internal service funds
  • Pension trust funds
  • Investment trust funds
  • Private-purpose trust funds
  • Agency funds (custodial funds)

Government-wide Financial Statements

  • Statement of net position
  • Statement of activities
  • Reconciliation to fund financial statements
  • Infrastructure assets
  • Capital assets reporting
  • Long-term liabilities reporting

Non-Profit Accounting

  • FASB standards for non-profits
  • Net assets classification (with/without donor restrictions)
  • Contributions revenue recognition
  • Donated services and materials
  • Functional expense reporting
  • Statement of financial position
  • Statement of activities
  • Statement of cash flows
  • Statement of functional expenses
14

Advanced Topics & Specializations

8-12 weeks

Partnership Accounting

  • Formation of partnership
  • Division of partnership income
  • Financial statements for partnerships
  • Admission of a partner
  • Withdrawal of a partner
  • Liquidation of partnerships
  • Incorporation of partnerships

Bankruptcy and Reorganization

  • Voluntary vs involuntary bankruptcy
  • Chapter 7 liquidation
  • Chapter 11 reorganization
  • Statement of affairs
  • Fresh start accounting
  • Trustee accounting

Estate and Trust Accounting

  • Estate accounting basics
  • Probate process
  • Charge and discharge statement
  • Principal vs income distinction
  • Trust accounting
  • Fiduciary income tax returns

Oil and Gas Accounting

  • Successful efforts method
  • Full cost method
  • Exploration and development costs
  • Production costs
  • Depletion calculations
  • Reserve recognition accounting

Software Revenue Recognition

  • Software licensing arrangements
  • Multiple element arrangements
  • Vendor-specific objective evidence (VSOE)
  • Post-contract customer support
  • SaaS revenue recognition

Construction Contracts

  • Percentage-of-completion method
  • Completed-contract method
  • Input vs output measures
  • Contract modifications
  • Loss contracts
  • Claims and change orders

Franchise Accounting

  • Initial franchise fees
  • Continuing franchise fees
  • Franchisor accounting
  • Franchisee accounting
  • Area franchise agreements
★

Major Accounting Algorithms, Techniques & Tools

Reference Section

Calculation Algorithms

Double-Entry Recording

Identify transaction → Analyze impact → Determine accounts affected → Apply debit/credit rules → Record in journal → Post to ledger

Financial Statement Preparation

Trial balance → Adjusting entries → Adjusted trial balance → Income statement → Retained earnings statement → Balance sheet → Cash flow statement

Straight-Line Depreciation

(Cost - Salvage) / Useful Life

Double-Declining Depreciation

Book Value × (2 / Useful Life)

Units-of-Production Depreciation

(Cost - Salvage) × (Units Produced / Total Units)

Bond Pricing

PV of principal + PV of interest payments using present value tables or financial calculator

Effective Interest Amortization

Interest Expense = Carrying Value × Market Rate; Amortization = Interest Paid - Interest Expense

Cash Flow (Indirect)

Net Income + Non-cash expenses - Non-cash revenues ± Changes in working capital accounts

Bad Debt Estimation

Percentage of Sales: Sales × Estimated %; Aging Method: Sum of (AR in each age category × Estimated uncollectible %)

Consolidation Elimination

Eliminate intercompany transactions → Eliminate investment account → Recognize non-controlling interest → Adjust for acquisition-date fair values

Accounting Techniques

  • Reconciliation Techniques: Bank reconciliation, Intercompany reconciliation, Account reconciliation, Cutoff procedures
  • Internal Control Techniques: Segregation of duties, Authorization procedures, Documentation and record-keeping, Physical controls, Independent checks
  • Audit Trail Techniques: Transaction coding, Cross-referencing, Batch controls, Sequence checking
  • Closing Procedures: Temporary account closing, Income summary method, Direct closing to retained earnings, Reversing entries technique
  • Cost Allocation Techniques: Direct allocation, Step-down allocation, Reciprocal allocation, Activity-based costing
  • Variance Analysis: Budget vs actual analysis, Standard costing, Flexible budgeting
  • Forecasting Techniques: Trend analysis, Regression analysis, Time series analysis, Pro forma financial statements
  • Fraud Detection Techniques: Benford's Law analysis, Ratio analysis, Trend discontinuities, Analytical procedures
★

Accounting Software & Tools

Reference Section

Enterprise Resource Planning (ERP) Systems

SAP S/4HANA Oracle NetSuite Microsoft Dynamics 365 Infor CloudSuite Workday Financial Management Epicor ERP

Small to Medium Business Accounting Software

QuickBooks Online/Desktop Xero Sage 50/100/300 FreshBooks Wave Accounting Zoho Books MYOB

Specialized Accounting Tools

BlackLine Trintech FloQast Prophix Anaplan

Spreadsheet Tools

Microsoft Excel Google Sheets VLOOKUP INDEX-MATCH SUMIFS Pivot Tables Macros and VBA

Financial Analysis Tools

Bloomberg Terminal Thomson Reuters Eikon FactSet Capital IQ PitchBook

Tax Preparation Software

Intuit ProConnect Thomson Reuters UltraTax CCH Axcess Tax Drake Tax Lacerte

Audit Software

CaseWare IDEA ACL Analytics Teammate Audit Thomson Reuters Onvio CaseWare Working Papers

Database Tools

SQL Microsoft Access Oracle Database PostgreSQL