382 entries
Accounting
The three financial statements, GAAP and IFRS, key line items, and the bridges between statements.
- Treasury Stock on the Balance Sheet Treasury stock is recorded as a contra-equity account, reducing total shareholders' equity when companies repurchase their own shares.
- Treasury Stock on the Balance Sheet Treasury stock on the balance sheet: how repurchased shares reduce equity as a contra-account, with cost and par value method differences.
- Troubled Debt Restructuring When a lender modifies a loan's terms to help a distressed borrower, triggering special accounting treatment.
- True and Fair View vs Fair Presentation The IFRS true and fair view standard versus GAAP fair presentation and the practical differences for financial statement preparers.
- Types of Audit Evidence and the Sufficiency Standard Auditors gather eight types of evidence—documents, confirmations, observation, inquiry, recalculation, inspection, analytical procedures, and reperformance—and weigh sufficiency against appropriateness.
- Unearned Revenue vs Deferred Revenue Whether unearned revenue and deferred revenue are synonymous balance-sheet liabilities or carry distinct accounting meanings.
- Units of Production Depreciation A depreciation method that matches expense to actual asset usage or output, allocating cost on a per-unit basis rather than by time.
- Variable Consideration Revenue recognition of amounts contingent on future events, discounts, returns, or bonuses, recognized only when highly probable.
- Variable Consideration Constraint Explained The rule limiting uncertain revenue inclusion in the transaction price until significant reversal is unlikely.
- Variable Consideration Constraint Under ASC 606 Understand ASC 606's constraint on variable revenue: when to limit estimated bonuses, rebates, and penalties to avoid revenue reversals.
- Variable Consideration in Revenue Recognition How to estimate and constrain variable amounts like rebates, refunds, and performance bonuses when recognizing revenue under ASC 606.
- Variable Costing Variable costing is an accounting method that assigns only variable costs to products, treating fixed overhead as a period expense.
- Variable Interest Entity An off-balance-sheet structure (usually an SPE) that a parent company controls through variable returns rather than voting shares, forcing consolidation under ASC 810.
- Variable Interest Entity Consolidation Variable interest entity consolidation rules explain when a company must consolidate an entity it doesn't legally own, using the primary beneficiary test.
- Variable vs Fixed Cost in Accounting Variable costs fluctuate with production volume; fixed costs remain constant. The distinction drives break-even analysis, contribution margin, and profit planning.
- Warranty Accounting: Assurance vs Service Type Assurance warranty vs service warranty accounting: know the difference in revenue recognition and liability treatment under IFRS and ASC 606.
- Warranty Liability Estimated obligation to service or replace products under warranty; recorded as a liability on the balance sheet.
- Weighted-Average Cost Method The inventory costing approach that assigns the average purchase price across all units available for sale to cost of goods sold.
- Weighted-Average Process Costing A process-costing method that combines beginning-inventory costs with current-period costs into one pool before dividing by equivalent units.
- What Is a Cost Object in Accounting? A cost object is any activity, product, customer, or department to which costs are assigned. Choosing the right cost object shapes allocation decisions and profitability analysis.
- What Is EBITDA on the Income Statement? EBITDA definition, calculation from income statement line items, and what it does and does not reveal about operating performance.
- Working Capital on the Balance Sheet Working capital on the balance sheet measures the liquidity available to run daily operations. Learn how it's calculated, why it matters, and what trends reveal.
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