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Classification, Debt and Equity

Discussing the concept of classification and its important role on the financial statements; Coverage of the company’s two primary forms of financing: debt and equity.

Created byLambers Inc.
BeginnerUpdated Jan 22, 2025
Classification, Debt and Equity

What You'll Learn

  • check_circleDescribe the key measurement issues addressed by the financial statements and explain how the current classification is used.
  • check_circleDefine the concept of a contingent liability and explain how contingencies are accounted for.
  • check_circleDefine what a bond is and explain how bond issuances are accounted for using the effective interest method.
  • check_circleExplain how the effective interest method is used to account for bond investments and describe how management’s intention determines how changes in bond market values are accounted for.
  • check_circleDescribe the difference between short-term and long-term (financing and operating) leases and how both kinds of leases are reflected on the financial statements of the lessee.
  • check_circleSummarize the shareholders’ equity section of the balance sheet and describe the transactions leading to each line item within that section

About This Course

This course begins by discussing the concept of classification and its important role on the financial statements, and then moves into coverage of the company’s two primary forms of financing: debt and equity. The financial statements and the footnotes of the companies featured in this course include General Motors, Volkswagen (an IFRS user), Amazon, Home Depot and Panera.

Field of Study: Finance

Course Content

2 activities • 6 videos • duration: 2h 41m

  • videocamKey Measurement Issues and the Current Classification
    Duration 15:55
  • videocamIntroduction to Liabilities and Contingenices
    Duration 29:25
  • videocamAccounting for Bond Issuances
    Duration 33:47
  • videocamBond Investments
    Duration 23:50
  • videocamLeases and Lessee Accounting
    Duration 23:08
  • videocamShareholders' Equity
    Duration 35:52
  • quizReview Questions

Your Instructors

Lambers Inc.

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star4,597 reviews

Lambers, Inc. is a leader in review courses for the EA, AFSP, and CPA exams. Lambers also offers IRS Continuing Education for Tax Preparers and CPE for CPAs. Accounting and finance professionals around the world incorporate Lambers products into their training programs.

Jamie Pratt

CPA

Jamie Pratt was the Alva L. Prickett Chair of Accounting at the Kelley School of Business at Indiana University in Bloomington, Indiana, and now holds the title of Distinguished Emeritus Professor. He received his doctorate in business from Indiana University in 1977, and has held faculty positions at the University of Washington (Seattle), the University of Zurich (Switzerland), Northwestern University and INSEAD (Fontainebleau, France), returning to Indiana in 1991. Jamie’s research interests are in financial reporting and analysis, where he has published over 30 articles in the top academic research journals (including The Accounting Review, Journal of Accounting Research, Contemporary Accounting Research, Accounting, Organizations and Society, and Issues in Accounting Education), and he has taught courses in financial reporting and analysis at every level (introductory, intermediate, advanced) in every program (undergraduate, MBA, PhD). He has received over 30 teaching awards and recognitions, and also taught executive education courses throughout the world. Research and/or teaching recognitions have also come from the following organizations: American Accounting Association, American Taxation Association, Big 4 accounting firms (KPMG and PriceWaterhouseCoopers), Indiana Society of CPAs, the Universities of Manchester (England), Kwansei Gakuin (Japan) and Kentucky, and Business Week magazine. His resume also includes two textbooks (one in its 11th edition), two computer-based interactive case platforms, a financial analysis case book, and several instructor guides that support these products.

Credit Information

Professional development requirements vary by profession, country, and regulatory body. Before enrolling, review the course details and confirm that the content, learning format, and any listed credits meet your specific requirements. You are responsible for confirming eligibility with your regulator or professional association and keeping the records required for reporting.

What Students Are Saying

4.4 out of 5
Student's Choice
5 reviews

Frequently Asked Questions

We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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