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Unformatted text preview: Fall 2009 Copyright School of Accountancy, Arizona State University Week 5 Page 1 ACC231 - Fall 2009 Week 5 Overview (September 23 - September 28) Material we cover this week Does not specifically relate to Solid Footing. Read pages 621 through middle of 626 of Chapter 12 in Cornerstones Textbook (stop at Analyzing Financial Statements with Cross Sectional and Time Series Analysis). What are we learning this week? 1. Rules and Regulatory Bodies Associated with Accounting 2. Understand 10-K and where to locate data 3. Basic Financial Statement Analysis Detail of Information you should know: 1. Rules and Regulatory Bodies Associated with Accounting a. Know the primary rules associated with accounting b. Identify the regulatory bodies c. For each regulatory body, identify what their area of responsibility is 2. Understand 10-K and where to locate data a. What is the 10K and what is purpose? b. What are components of the 10K? c. Understand where to locate data on the 10K 3. Basic Financial Statement Analysis a. Current Ratio b. Working Capital c. Net Profit Margin NOTE: You will be given the formulas for Current Ratio, Working Capital and Net Profit Margin on the exam and do not need to memorize these. For ratios, you will need to know how to locate the appropriate number on the Financial Statements, calculate the ratio, and interpret the number (know what it means, etc.) Fall 2009 Copyright School of Accountancy, Arizona State University Week 5 Page 2 WEEK 5 - TERMINOLOGY AND CONCEPTS Items are definitional in nature. We may or may not review these items in Mega but you are responsible for knowing this information for homework, quizzes and exams. Statement of Stockholders' Equity Instead of having a "Statement of Retained Earnings", some companies may prepare a "Statement of Stockholders' Equity". This statement more comprehensive than the Statement of Retained Earnings as it includes changes ALL of the Equity accounts - common stock, retained earnings and other advanced equity accounts we will learn about later in the semester. The Statement of Stockholders' Equity may also be referred to as Statement of Owners' Equity or Statement of Shareholders' Equity. Certified Public Accountants (CPAs), Public Accounting Firms and Audited F/S In the US, a person with a graduate degree in accounting (or with an undergraduate degree and a certain number of accounting classes) can take the "Uniform Certified Public Accountant Examination". After passing the exam, accountants must meet certain requirements that differ by state in order to be licensed as a CPA in that state (e.g. most states require 150-hours of undergraduate/graduate classes, a certain amount of accounting work experience, continuing education, etc). CPAs can work at a variety of places including companies (e.g. for WalMart), government agencies, not-for-profit organizations, consulting firms and Public Accounting Firms....
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This note was uploaded on 09/03/2009 for the course ACC ACC 231 taught by Professor Samuels during the Spring '09 term at ASU.
- Spring '09