Balance Sheet: Reporting Stockholders Equity - v16 (Course Id 2826)

• Who is this course for?
  This course is designed for CPAs, accountants, and anyone needing Continuing Professional Education (CPE) with a basic understanding of accounting concepts.
• What is this course about or what problem does this course solve?
  This course focuses on the proper reporting of stockholders’ equity on the balance sheet, covering equity transactions like stock, dividends, warrants, and specialized topics such as earnings per share and market value ratios.
• Where can the knowledge from this course be used?
  The knowledge from this course can be applied in preparing and analyzing financial statements, particularly in accurately presenting equity and evaluating a company’s financial health.
• Why is this course important to a CPA or Accountant?
  This course is important because it strengthens the ability to correctly account for and report stockholders’ equity, which is essential for determining a company’s net worth and ensuring accurate financial reporting.
• When is this course relevant or timely?
  This course is relevant when preparing balance sheets, handling equity-related transactions, or analyzing financial performance using equity and market value ratios.
• How is a course like this consumed or used?
  This is a QAS self-study text-based course that is completed independently, followed by a final exam that must be passed with a minimum score of 70% to earn CPE credit.

Stockholders' equity represents the owners’ residual claim of assets after liabilities have been settled, indicating a company's overall financial health and stability. Proper reporting of equity components is critical for determining a company's net worth. This course covers the basics of stockholders' equity, exploring key equity transactions, such as stock, dividends, and warrants. It also addresses specialized stockholder equity topics, including quasi-reorganizations, earnings per share (EPS), appropriated retained earnings, and market value ratios. Numerous examples are provided to demonstrate practical application. 

NASBA QAS - Text - NASBA Registry - 2826

Course Learning Objectives

1. Identify core concepts for presenting equity on the balance sheet
2. Recognize accounting treatment for capital stock transactions
3. Identify how different dividends affect a company's financial position
4. Recognize the impact of stock splits and subscription pledges on equity accounts
5. Identify purposes of quasi-reorganization and appropriated retained earnings
6. Identify and apply ratios used to measure a company’s market strength

Chapter 1:    Financial Reporting Basics

Role of Financial Reporting

Financial Statement Elements

Assets

Liabilities

Equity

Investments by and Distributions to Owners

Revenues, Expenses, Gains, and Losses

Financial Statements Overview

Core Financial Statements

Interconnections of Financial Statements

Balance Sheet Overview

Account Classifications

Equity Section Accounts

Review Questions – Section 1

Chapter 2:    Accounting for Stockholders’ Equity

Capital Stock vs. Treasury Stock

Capital Stock

Treasury Stock

Common vs. Preferred Stock

Overview

Common Stock

Preferred Stock

Review Questions – Section 2

Detachable vs. Nondetachable Warrant

Detachable Stock Warrants

Nondetachable Stock Warrants

Dividends

Overview

Cash Dividend

Stock Dividend

Property Dividend

Liquidating Dividend

Scrip Dividend

Stock Splits

Stock Subscription

Review Questions – Section 3

Chapter 3:    Special Topics

Quasi-Reorganization

Appropriated Retained Earnings

Restricted Stock

Presentation and Disclosure

Earnings Per Share

Overview

Basic EPS

Diluted EPS

Market Value Ratios

Price-Earnings Ratio

Book Value Per Share

Price-Book Value Ratio

Price-Sales Ratio

Dividend-Related Ratios

Price to Cash Flow Ratio

Review Questions – Section 4

Glossary