Financial Accounting

1. Financial Accounting for Different Types of Business Entities
   1. Sole Proprietorships
      1. Characteristics of sole proprietorships
         1. Single owner structure
         2. Unlimited liability
      2. Financial accounting practices
         1. Simplified accounting rules
         2. Preparation of a single income statement and balance sheet
         3. Owner's capital account management
      3. Tax considerations
         1. Self-employment tax implications
         2. Personal tax reporting
   2. Partnerships
      1. Definition and formation
         1. Two or more owners
         2. Partnership agreement importance
      2. Partnership accounting intricacies
         1. Partner capital accounts
            1. Contribution tracking
            2. Withdrawals and distributions
            3. Interest on capital
         2. Sharing of profits and losses
            1. Equity method vs. fixed ratio sharing
            2. Impact on individual partner accounts
         3. Changes in partnership structures
            1. Admission of new partners
            2. Withdrawal or death of a partner
         4. Dissolution accounting
            1. Settlement of liabilities
            2. Capital distribution
      3. Taxation of partnerships
         1. Pass-through taxation
         2. Individual partner tax returns
   3. Corporations
      1. Characteristics of corporations
         1. Separate legal entity status
         2. Limited liability for shareholders
      2. Shareholder equity aspects
         1. Stock issuance
            1. Common vs. preferred stock
            2. Par value and additional paid-in capital
         2. Stockholders’ equity section of balance sheet
            1. Retained earnings and appropriations
            2. Treasury stock
         3. Understanding dividends
            1. Cash dividends
            2. Stock dividends
            3. Dividend declaration and payment process
      3. Corporate financial statements
         1. More comprehensive disclosure requirements
         2. Accounting for income taxes
            1. Deferred tax assets and liabilities
         3. Earnings per share (EPS) calculations
            1. Basic EPS
            2. Diluted EPS
      4. Dividend distribution practices
         1. Declaration and record dates
         2. Legal requirements and restrictions
      5. Corporate reorganizations
         1. Mergers and acquisitions
         2. Spin-offs and split-offs
   4. Not-for-Profit Organizations
      1. Financial objectives and characteristics
         1. Focus on service rather than profit
         2. Stakeholder accountability
      2. Unique accounting issues
         1. Fund accounting
            1. Unrestricted, temporarily restricted, and permanently restricted funds
         2. Revenue recognition in non-profits
            1. Grants and donations
            2. Membership dues
         3. Expense classification
            1. Program services vs. administrative expenses
      3. Financial statement preparation for non-profits
         1. Statement of financial position
         2. Statement of activities
         3. Statement of cash flows
         4. Statement of functional expenses
      4. Regulatory and tax issues
         1. Tax-exempt status considerations
         2. Form 990 requirements
         3. Compliance with donor restrictions