Using Accounting Information

1. Part 1. Financial Reporting and Concepts
2. Special Reporting Situation
   1. Corrections of Errors
   2. Discontinued operations
   3. Extraordinary Items
   4. Changes in Accounting Methods
   5. Other Comprehensive Income
   6. Recap
   7. Ebit and Ebitda
   8. Return on Assets
3. Earnings per Share, Price Earnings Ratios, Book Value per Share and Dividend Rates
   1. Basic EPS
   2. Diluted EPS
   3. Subdividing APS Amounts
   4. Price Earnings Ratio
   5. Book Value per Share
   6. Calculating Book Value per Share
   7. Dividend Rates and Payout Ratios
   8. Return on Equity
4. Objectives of Financial Reporting
   1. Objectives
5. Qualitative Character-Istics of Accounting
   1. Understand-Ability
   2. Threshold Issues
   3. Other Concepts
6. The Development of Gap
   1. The Audit Function
   2. The Development of Gap
   3. The 1929 Stock Crash and Great Depressions
   4. The Securities and Exchange Commissions
   5. The Fasb and its Predecessors
   6. A More Recent Crisis of Reporting Confidence
   7. Sarbanes-Oxley
7. Key Assumptions
   1. Entity Assumption
   2. Going-Concern Assumption
   3. Periodicity Assumption
   4. Monetary Unit Assumption
   5. Stable Currency Assumption
   6. What do you Think?
8. Global Accounting Issues
   1. Issues in International Trade
   2. Global Subsidiaries
   3. Global Trading Transactions
9. Part 2. Financial Analysis and the Statement of Cash Flows
10. Financial Statement Analysis
    1. Comprehensive Illustration
    2. Balance Sheet
    3. Income Statement
    4. Statement of Retained Earnings
    5. Ratios for Emerson Corporation as of December 31, 20x5
    6. Trend Analysis
11. Cash Flow and the Cash Flow Statement
    1. The Statement of Cash Flow
    2. Cash and Cash Equivalents
12. Operating, Investing and Financing Activities
    1. Investing Activities
    2. Financing Activities
13. Noncash Investing and Financing Activities
14. Direct Approach to the statement of Cash Flows
    1. Methods to Prepare a Statement of Cash Flows
    2. Operating Activities
    3. Investing Activities
    4. Financing Activities
    5. Cash Flow Recap
    6. Noncash Investing/Financing Activities
    7. Reconciliation of Income to Operating Cash Flows
15. Indirect Approach to Presenting Operating Activities
16. Using a Worksheet to Prepare a Statement of Cash Flow

Explain how accounting information can be used in special reporting situations like error corrections and discontinued operations. Analyze the different ways of calculating and interpreting earnings per share (EPS) and price earnings ratios for financial decision-making. Describe the objectives of financial reporting, including providing information useful for investment and credit decisions. Evaluate the role of qualitative characteristics in making accounting information understandable and reliable. Discuss the development and importance of generally accepted accounting principles (GAAP) in financial reporting and auditing.