Financial Accounting

1. Financial Statements
   1. Core Components
      1. Income Statement
         1. Revenue Recognition
            1. Timing of revenue recognition
            2. Criteria for revenue recognition
            3. Impact of revenue recognition on financial performance
         2. Expense Matching Principle
            1. Purpose of matching expenses to revenues
            2. Methods of expense matching
         3. Key Profit Measures
            1. Gross Profit
               1. Definition and calculation
               2. Importance in analyzing cost of goods sold
            2. Operating Profit
               1. Inclusion of operating expenses
               2. Role in evaluating core business performance
            3. Net Profit
               1. Final profitability measure
               2. Reconciliation with cash flows
      2. Balance Sheet
         1. Assets
            1. Current Assets
               1. Cash and cash equivalents
               2. Accounts receivable
                  1. Aging of receivables
                  2. Allowance for doubtful accounts
               3. Inventory
            2. Non-current Assets
               1. Property, plant, and equipment
               2. Depreciation and amortization
               3. Intangible assets
                  1. Goodwill and impairment testing
         2. Liabilities
            1. Current Liabilities
               1. Accounts payable
               2. Short-term debts
            2. Long-term Liabilities
               1. Bonds payable
               2. Long-term lease obligations
               3. Deferred tax liabilities
         3. Equity
            1. Share Capital
               1. Common shares and preferred shares
               2. Par value and additional paid-in capital
            2. Retained Earnings
               1. Impact of dividends
               2. Historical profitability
               3. Retained earnings statement
      3. Cash Flow Statement
         1. Operating Activities
            1. Net income adjustments
            2. Changes in working capital
         2. Investing Activities
            1. Capital expenditures
            2. Sale of long-term assets
         3. Financing Activities
            1. Issuance of stock
            2. Repayment of long-term debt
            3. Dividend payments
   2. Additional Components
      1. Statement of Changes in Equity
         1. Changes in share capital
         2. Retained earnings adjustments
         3. Comprehensive income
      2. Notes to Financial Statements
         1. Summary of significant accounting policies
         2. Detailed breakdown of financial statement items
         3. Contingencies and commitments
         4. Subsequent events
         5. Related party transactions
   3. Regulatory and Compliance Aspects
      1. Importance of adherence to accounting standards
      2. Auditor's role in verifying accuracy
      3. Disclosure requirements and transparency
   4. Presentation and Format
      1. Multi-step and single-step income statements
      2. Classified and unclassified balance sheets
      3. Direct and indirect methods for cash flow statements
   5. Usefulness and Limitations
      1. Ability to provide insight into financial health
      2. Limitations in predicting future performance
      3. Dependency on estimations and judgments
   6. Recent Trends and Developments
      1. Integration of sustainability and ESG reporting
      2. Impact of digital currencies on financial statements
      3. Shift towards real-time financial reporting