Critical Accounting Principles and Assumptions
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In this 3rd course of the Accounting Essentials Skill Series, participants will examine key accounting principles, correct entries for bad debts, asset value decreases, and deferred revenue, and assess the impact of misapplying the matching principle and the absence of the going concern assumption.
Certificate
1 credit or $295
Cost
1.5 - 2 Hrs.
Duration
1 hr.
Prep Time
1
Quiz
Overview
In the third webinar session, participants examine the historic cost principle, the conservatism principle, the revenue recognition principle, the matching principle, and the going concern assumption. They explore the correct accounting entries to record bad debts, decreased asset values, and deferred revenue and revenue recognition. Further, participants examine the impact on bottom line profit from failure to correctly apply the matching principle and estimate likely income statement and balance sheet values in the absence of the going concern assumption.
Who Should Attend
This Course is ideal for participants currently in or aspiring to enter the following job functions:
- C & I Lending
- CRE Lending
- Consumer Lending
- Private Banking
- Loan Review
- Special Assets
- Consumer and Retail Lending
- Credit Analysis
Prerequisites
Some familiarity with an accrual income statement and balance sheet for a commercial business, as well as completion of Sessions 1 and 2.
Objectives
By the end of the webinar session, participants will be able to:
- Explain the role and use of generally accepted accounting principles and the differences between accrual and cash accounting.
- Explain the concept, use, and relevance of the historic cost principle and identify values on the financial statements of a retail shoe store recorded via application of this principle.
- Explain the concept, use, and relevance of the conservatism principle and apply it to selected accounts on the financial statements of a real estate property management company.
- Explain the concept, use, and relevance of the revenue recognition principle and apply it to selected accounts on the financial statements of a software company.
- Explain the concept, use, and relevance of the matching principle and apply it to selected accounts on the financial statements of a manufacturing company.
- Explain the concept, use, and relevance of the going concern assumption and apply it to selected accounts on the financial statements of a manufacturing company.
Materials(access provided with registration)
- Terms and Concepts - Accounting
- Financial Statement Excerpts for Fresno Properties, LLC, Information Access, Inc., Sandover Contractors, Inc., Sierra Products, Inc., and Sweet Feet
- Exercise for the Session 3 Webinar
- Webinar Presentation Slides
- Webinar Poll Questions
- Webinar Poll Solutions
- Exercise Solutions
This is Course 3 of 4 in the Accounting Essentials Skill Series
Financial Statement Structure and Composition
Double Entry Accounting and the Accounting Equation
Critical Accounting Principles and Assumptions
Creating the Balance Sheet and Income Statement
