Chapter 14 Long-Term Liabilities
d. does not
is tax deductible
Equity (e.g., issuing stock)
a. does not require dividend payments
ACC 327 Ch 16 Dilutive Securities and Earnings per Share
1. Describe the accounting for the issuance, conversion, and retirement of convertible securities.
2. Explain the accounting for convertible preferred stock.
3. Contrast the accounting f
ACC 327 Ch 17 Investments
1. Identify the three categories of debt securities and describe the accounting and reporting
treatment for each category.
2. Understand the procedures for discount and premium amortization on bond investments.
ACC 327 Ch 18 Revenue Recognition
1. Understand revenue recognition issues.
2. Identify the five steps in the revenue recognition process.
3. Identify the contract with customers.
4. Identify the separate performance obligations in the contrac
ACC 327 Ch 20 Accounting for Pensions and Postretirement Benefits
1. Distinguish between accounting for the employer's pension plan and accounting for the pension fund.
2. Identify types of pension plans and their characteristics.
3. Explain a
ACC 327 Ch 21 Accounting For Leases
1. Explain the nature, economic substance, and advantages of lease transactions.
2. Describe the accounting criteria and procedures for capitalized leases by the lessee.
3. Contrast the operating and capital
ACC 327 Ch 15 Stockholders Equity
1. Discuss the characteristics of the corporate form of organization.
2. Identify the key components of stockholders equity.
3. Explain the accounting procedure for issuing shares of stock.
4. Describe the acc
FinanceCo lent $8 million to Corbin Construction on January 1, 2016, to construct a playground. Corbin
Chapter 15 Stockholders' Equity
1. The two broad categories of owners' equity are
a. Paid-in (contributed) capital - equity arising from contributions by
b. Earned capital - equity arising from past earnings retained in the
company; retained e
CH 16 - DILUTED SECURITIES AND EARNINGS PER SHARE
ISSUE: as straight debt (issue bonds)
Cash ($10,000,000 X .99)
Discount on Bonds Payable
CONVERSION: Book Value Approach (Remove bonds and prem/
CHAPTER 17- INVESTMENTS
HELD-TO-MATURITY SECURITIES- accounted for at amortized cost; (Effective Interest method for
Interest Revenue); Current or Non-current asset, depending on maturity date (pay cash for investment, receive
cash as interest revenue)
CHAPTER 18 - REVENUE RECOGNITION
REVENUE RECOGNITION PRINCIPLE- revenue is recognized when it is (1) realized or realizable and (2)
Revenue recognized at the point of sale:
1. Sales with buyback agreement - NOT A SALE, BORROWING MONEY.
a. No sale
CH. 11 DEPRECIATION
Depreciation allocates the cost of tangible assets to expense in a systematic and rational manner to those
periods expected to benefit from the use of the asset.
Factors Involved in the Depreciation Process
1. determining the depreciat
PUBLIC PENSION PLAN
supported by a governmental unit
PRIVATE PENSION PLAN-
sponsored by a business
ERISA- Employee Retirement Income Security Act- federal law that governs private pension plans
CONTRIBUTORY PENSION PLANpension fund
CHAPTER 21 LEASES
LEASE-contract b/w lessor and lessee
Lessor- owns the property.
Lessee- uses the property for
ADVANTAGES OF LEASING:
1. Less capital outlay upfront
2. Protection against obsolescence
3. Tax advantages for leasing land
CHAPTER 22 ACCOUNTING CHANGES AND ERROR ANALYSIS
CHANGES IN ACCOUNTING PRINCIPLE- change from one GAAP to another GAAP
1. Change in principle is considered appropriate only when the company demonstrates that the
principle is preferable to the existing one
CHAPTER 23- STATEMENT OF CASH FLOWS
*FROM CHAPTER 5 (PAST NOTES)
STATEMENT OF CASH FLOWS (during a period)
PRIMARY PURPOSE- provides relevant information about the cash receipts and cash payments of an enterprise. (Where did the cash
come from, what was c
ACC 327 Ch 14 Long-Term Liabilities
1. Describe the formal procedures associated with issuing long-term debt.
2. Identify various types of bond issues.
3. Describe the accounting valuation for bonds at date of issuance.
4. Apply the methods of