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Rapid Finance
Rapid Finance
Financial Statement Elements• Definition of Assets, Liabilities and Equity• Assets and Liabilities can be long term,  shor...
Accounting Equation• Assets = Liabilities + Owners’ Equity• Owners’ Equity = Contributed Capital +  Retained Earnings.• Re...
Accounting Process•   Start a telephone company with $10,000•   I buy furniture, buy cables and telephone boxes•   Sell th...
Accrual Process Of Accounting• Unearned Revenue, cash comes first, a liability is  created.• Accrued Revenue, cash comes l...
Financial Statements in Security Analysis • Considerable Judgment Is Involved • Misrepresentation               Rapid Fina...
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Cfa FRA #2 Financial Statement Mechanics

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http://www.mbaglue.com/cfa/financial-reporting-mechanics-fra-2-cfa-level-1/ for details about this.

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Cfa FRA #2 Financial Statement Mechanics

  1. 1. Rapid Finance
  2. 2. Rapid Finance
  3. 3. Financial Statement Elements• Definition of Assets, Liabilities and Equity• Assets and Liabilities can be long term, short term.• Equity has contributed capital, retained earnings, treasury shares etc. Rapid Finance
  4. 4. Accounting Equation• Assets = Liabilities + Owners’ Equity• Owners’ Equity = Contributed Capital + Retained Earnings.• Retained Earning = Beginning Retained Earning + Net Income earned – Dividend• Assets = liabilities + Contributed Capital + Beginning Retained Earning + Net Income earned – Dividend Rapid Finance
  5. 5. Accounting Process• Start a telephone company with $10,000• I buy furniture, buy cables and telephone boxes• Sell the inventory• The Year Ends• Check Article For More Details Rapid Finance
  6. 6. Accrual Process Of Accounting• Unearned Revenue, cash comes first, a liability is created.• Accrued Revenue, cash comes later, an asset is created.• Prepaid Expense, cash paid first, an asset is created.• Accrued Expense, cash comes later, a liability is created. Rapid Finance
  7. 7. Financial Statements in Security Analysis • Considerable Judgment Is Involved • Misrepresentation Rapid Finance
  8. 8. By Rapid Finance Rapid Finance

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