Business Accounting Training
Business Accounting: Accounting for Stockholders Equity
Business Accounting: Accounting for Stockholders' Equity offers the student an overview of the information contained in a company's statement of stockholders' equity and in the
stockholders' equity portion of the balance sheet.
The program details components of stockholders' equity, stock transactions, and financial analysis ratios used to evaluate a company's long-term solvency.
Business Accounting Training on CD-ROM Course teaches you to
- Identify the components used to calculate the value of a company's stock.
- Identify components of stockholders' equity.
- Identify methods for reporting stockholders' equity.
- Calculate a company's return on common stockholders' equity ratio.
- Calculate a company's dividend yield ratio.
- Calculate a company's book value per share.
Audience: Managers or employees interested in learning the basics of accounting and accounting processes.
Total Learning Time: 2 to 4 hours
Course Contents
Unit 1: Fundamentals of Stock 0.5 - 2 hours
• Differentiate between types of stock. • Identify advantages of issuing stock instead of debt instruments. • Identify disadvantages of issuing stock instead of debt instruments.
• Identify advantages of convertible bonds. • Identify the components used to calculate the value of a company's stock. • Calculate a stock split. • Differentiate between types of dividends.
• Simulation Overview: • In this simulation, you will be meeting with Don Hamilton, one of Icon's Financial Analysts. You have been recently hired by Icon to work in the Accounting
Department, and as part of your training, for the position, Don will ask you a series of questions to evaluate your knowledge of the fundamentals of issuing stock and
the role it plays in the company's accounting.
Unit 2: Fundamentals of Stockholders' Equity 0.5 - 1 hour
• Match the equity terminology to its respective type of company. • Classify the type of business activity into which stockholders' equity falls. • Identify components of stockholders' equity.
• Identify the components of retained earnings. • Identify methods for reporting stockholders' equity. • Simulation Overview:
• In this simulation, you will be meeting with Carla Jackson as part of your continued training for your new position in Icon's Accounting Department. As Icon's
Chief Financial Officer, Carla has a great deal of knowledge about stockholders' equity, and she will be asking you some questions in order to gauge your understanding of the subject.s.
Unit 3: Fundamentals of Ratio Analysis 1 hour
• Identify the definition of solvency. • Identify the purpose of financial ratios. • Identify the equation used to calculate a company's debt-to-assets ratio.
• Calculate a company's price-earnings ratio. • Identify the purpose of the cash flow from operations to capital expenditures ratio.
• Identify the equation used to calculate a company's return on common stockholders' equity ratio. • Calculate a company's dividend payout ratio.
• Identify the purpose of the dividend yield ratio. • Calculate a company's book value per share. • Identify the equation used to calculate a company's book value per share.
• Identify the purpose of calculating a company's book value per share. • Identify the difference between calculating a company's book value per share and
calculating a company's book value per share with preferred stock. • Simulation Overview: • This is a one-person simulation in which you will be meeting with Marcus
Robinson, Icon's Accounting Supervisor. During the meeting, Marcus will take you through the fundamentals of ratio analysis in preparation for your new position in
the Accounting Department. He will ask you a series of questions about financial ratios and you will need to apply your knowledge of the various ratio calculations to successfully answer his questions.
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