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| Corporations: Retained Earnings and the Income Statement | |
| Identify the issues related to evaluating the quality of a company's earnings | |
| Calculate earnings per share and a price/earnings ratio | |
| Define and explain prior period adjustments and comprehensive income | |
| Account for stock dividends and stock splits | |
| Prepare a statement of stockholders' equity | |
| Evaluate the effects of stock splits, stock and cash dividends, treasury stock transactions, and the acquisition of assets on a corporation's financial statements and performance measures | |
| Long-term Liabilities | |
| Explain the purpose and use of using long-term liabilities to finance investment in long-term assets | |
| Evaluate financial leverage using different measures | |
| Calculate payments, debt reduction and interest expense for installment notes and mortgages | |
| Record transactions involving installment notes and mortgages | |
| Describe the major characteristics of bonds payable. Utilize various sources to identify types, prices and credit ratings of various types of bonds | |
| Record transactions for the issuance of bonds at face value, at a discount, and at a premium | |
| Record transactions for the recording of bond interest expense using the straight-line method | |
| Record transactions for the retirement of bonds and the conversion of bonds into stock | |
| The Statement of Cash Flows | |
| Describe the statement of cash flows, and define cash and cash equivalents | |
| Calculate cash flows from operations using the indirect method | |
| Calculate cash flows from investing and from financing activities | |
| Prepare a statement of cash flows in good format | |
| Interpret and use the statement of cash flows to analyze management decisions | |
| Calculate free cash flow | |
| Financial Statement Analysis | |
| Describe and discuss the objectives and standards of financial statement analysis | |
| Describe the sources of information for financial statement analysis, including benchmarking and industry averages | |
| Apply horizontal, vertical and trend analysis to financial statements | |
| Evaluate the liquidity, leverage, solvency and profitability of a corporation | |
| Introduction to Management Accounting | |
| Describe the need for management accounting information in a competitive business environment | |
| Distinguish between financial and management accounting, · | |
| Distinguish between merchandising and manufacturing operations | |
| Describe and define management accounting cost terms | |
| Develop income statements and balance sheets for a manufacturer | |
| Prepare schedules of Cost of Goods Manufactured and Cost of Goods Sold | |
| Job Order Costing | |
| Explain the flows of costs through the manufacturing process | |
| Identify manufacturing costs, including labor, materials, and overhead | |
| Differentiate between product and period costs | |
| Differentiate between direct costs and indirect costs | |
| Define cost allocation and explain the overhead allocation process | |
| Prepare management accounting reports summarizing job costs | |
| Evaluate operating performance using job-costing information | |
| Process Costing | |
| Compare and contrast Job Order Costing and Process Costing | |
| Explain the flow of costs and work-in-process inventory in a process costing system | |
| Define equivalent units in terms of process costing information and inventories | |
| Prepare management accounting reports summarizing and reconciling process costs | |
| Evaluate operating performance using process costing information | |
| Activity-Based Costing and Other Cost Management Tools | |
| Explain why indirect costs are allocated | |
| Describe how indirect costs are allocated using a single overhead rate | |
| Describe the limitations of using a single rate to allocate indirect costs | |
| Describe how indirect costs can be classified into multiple cost pools | |
| Describe how indirect costs are allocated using multiple overhead rates | |
| Evaluate operating performance using activity-based costing information | |
| Cost-Profit-Volume Analysis | |
| Distinguish between variable costs and fixed costs | |
| Explain the effects of activity changes on total and per-unit costs | |
| Describe and use different methods to estimate variable and fixed costs | |
| Use a cost formula to predict costs at a new level of activity | |
| Describe effects of change in cost, price and volume on contribution margin and net income | |
| Use Cost-Volume-Profit Analysis to predict and evaluate operating performance | |
| Short-term Business Decisions and Differential Analysis | |
| Distinguish between relevant and irrelevant costs for decision-making | |
| Compute the optimal price for a product or service | |
| Evaluate decisions to retain or drop product lines and organizational segments | |
| Evaluate decisions to make or buy a product, or whether to accept a special order | |
| Evaluate decisions to determine the appropriate use of resources | |
| Capital Investment Decisions | |
| Distinguish between short-term and long-term investment decisions | |
| Define capital budgeting and capital investment decisions | |
| Use the payback method and the accounting rate of return method to evaluate capital investment projects | |
| Describe the time value of money | |
| Use internal rate of return and net present value methods to evaluate capital investment projects | |
| Budgeting | |
| Define budgeting, and explain the differences between planning and control | |
| Explain the master budget interrelationships | |
| Prepare budgets for sales, production, direct materials, overhead, selling and administration, and a cash budget | |
| Prepare a budgeted income statement and balance sheet | |
| Define responsibility accounting and responsibility centers | |
| Flexible Budgets and Standard Costs | |
| Describe flexible budgets and explain differences between flexible and static budgets | |
| Demonstrate impact of changes in volume on budgets | |
| Define standard costs and how standards are derived | |
| Compute direct materials price and quantity variances | |
| Compute direct labor rate and efficiency variances | |
| Compute manufacturing overhead spending and quantity variances, · Develop performance reports using flexible budgets and variances from standards | |
| Evaluate operating performance using performance reports | |
| Performance Management and Evaluation | |
| Describe performance measurement and the issues that affect measurement of performance | |
| Prepare performance reports for various types of responsibility centers | |
| Use profit margin, return on investment and other measures to evaluate performance of responsibility centers | |
| Use the balanced scorecard to develop performance measures that are consistent with organizational goals | |
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