Chapter 8 Objectives:1. distinguish tangible from intangible assets2. account for the purchase and sale of long-lived assets3. calculate and record depreciation expense under various depreciation methods4. describe accounting treatment of Research & Development expenditures5. account for intangible assets6. explain how Goodwill arises and how it is accounted forChapter 9 Objectives:1. identify and account for current liabilities2. account for contingent liabilities (e.g., warrantees or lawsuits)3. account for interest-bearing liabilities, both short-term (e.g., notes payable) and long-term (e.g., bonds)4. create a bond amortization table5. discuss the analysis of a company’s liabilitiesChapter 10 Objectives:1. identify and account for leases2. describe and interpret pension accounting3. describe and interpret income tax accountingChapter 11 Objectives: 1. describe the characteristics of debt and that of equity2. explain and account for stock issuance and repurchase (Treasury Stock)3. explain stock dividends and stock splits4. discuss Other Comprehensive Income items5. describe basic and diluted EPSChapter 12 Objectives: 1. explain why companies purchase the debt and equity securities of other companies2. identify the three levels of influence with respect to financial investments3. explain the concepts of Fair Value and the Fair Value Hierarchy4. explain the account treatment for investments in debt securities as either Trading or Available-for-Sale Securities5. explain the accounting treatment for equity securities (Fair Value through Net Income)6. explain the accounting treatment for long-term investments in equity securities under the Equity MethodManagerial Accounting Objectives:1. discuss the general uses of accounting and who uses it2. distinguish between costs and expenses, total and per unit costs, direct and indirect costs, fixed and variable costs, product costs and period costs3. define cost object, opportunity cost, sunk cost, operating leverage, and relevant rangeChapter 15 Objectives:1. distinguish and prepare contribution (variable, direct) income statements and functional (full absorption) income statements, including reconciling the difference in operating profit2. discuss and calculate Contribution Margin (in total and per unit) and differentiate from Gross Margin3. use the CVP model to calculate Break Even point and other information including Marginof Safety4. apply Operating Leverage Ratio to assess opportunities for profit and the risk of lossChapter 16 Objectives: 1. Identify relevant revenues and costs2. Use relevant information to make various short-term decisions (e.g., special order, outsourcing, and product mix)Chapter 23 Objectives:1. describe the advantages and disadvantages of decentralization2. discuss criteria for useful performance measures3. explain transfer pricing and assess alternative transfer pricing schemes4. identify the four perspectives of a Balanced Scorecard and various measures likely to be used in each perspectiveChapter 24 Objectives:1. Describe the Capital Budgeting process2. Identify a project’s cash flows and compute its NPV, IRR, and Payback PeriodBasic Financial Accounting DefinitionsBalance SheetAsset – something that has future economicbenefit.Liability – a future economic sacrifice arising from a present obligation.Equity – the ownership interest. Includes contributed capital (stock) and earned capital (retained earnings).All the accounts on the balance sheet can be thought of as “real” accounts – they are not closed at the end of the accounting period.Income StatementRevenue (Sale) – inflow from delivering goods, rendering services, or performing other activities that constitute the entity’s ongoing major operations.Expense – outflow or the using up of an asset in an effort to generate revenues for an entity.Gain – inflow caused by a transaction that is not part of the entity’s ongoing major operations.Loss – outflow not in an effort to generate revenues (i.e., not part of the ongoing major operations).All the accounts on the income statement can be thought of as “nominal” accounts – they are closed at the end of the accounting period and start over at zero.OtherCapitalize – account for an expenditure as an asset on the balance sheet (Note: may become an expense of a future period, e.g., Inventory becomes Cost of Goods Sold when sold and Equipment gets depreciated).Expense (verb) – account for an expenditure as an expense onthe income statement.Note: All expenditures must either be capitalized or expensed.Recognize – record a transaction in the financial accounting records (i.e., prepare a journal entry).Disclose– prepare a footnote to the financial statements to further explain the numbers on the financial statements.Financial Leverage – the extent to which a firm has debt on its balance