Resources for Accountants

How to Detect Earnings Management [Video]
►
Categories
Resources for Accountants

How to Detect Earnings Management [Video]

Companies sometimes manipulate the financial statements, whether through earnings management or outright fraud. Here are some ways to determine whether a company has manipulated its financial statements: (1) ratio analysis (2) trend analysis (3) industry comparison (4) review critical estimates or assumptions (5) look for changes in accounting methods or estimates (6) look for changes in credit policy (7) look for large deviations between net income and operating cash flow (8) look for an inventory build-up (9) check for abnormally high shipments/sales right before the end of the period (10) compare sales figures to sales/shipment data from a third party (11) examine one-time charges (12) look for reversals of charges from prior periods (13) note whether the company is "lending" money to customers to buy its product (14) identify whether routine costs are being capitalized (15) identify off-balance sheet arrangements (16) identify related-party transactions Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspiras mission is to make a high-quality business education accessible to all people. SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS * http://eepurl.com/dIaa5z LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ CONNECT WITH EDSPIRA * Website: https://www.edspira.com * Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira * Facebook group: https://www.facebook.com/groups/561316587899818// * Reddit: https://www.reddit.com/r/edspira * LinkedIn: https://www.linkedin.com/company/edspira CONNECT WITH MICHAEL * Website: http://www.MichaelMcLaughlin.com * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin * Facebook: https://www.facebook.com/prof.michael.mclaughlin * Snapchat: https://www.snapchat.com/add/prof_mclaughlin *Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin *TikTok: https://www.tiktok.com/@prof_mclaughlin

How Companies Manipulate Cash Flow [Video]
►
Categories
Resources for Accountants

How Companies Manipulate Cash Flow [Video]

While we usually think of companies manipulating earnings, they can also manipulate cash flow. In particular, companies have an incentive to manipulate operating cash flow. Companies achieve this by: (1) shifting cash inflows from the investing or financing section to the operating section of the statement of cash flows (2) shifting cash outflows from the operating section to the investing or financing section of the statement of cash flows (3) boosting operating cash flow with one-time activities Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspiras mission is to make a high-quality business education accessible to all people. SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS * http://eepurl.com/dIaa5z LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ CONNECT WITH EDSPIRA * Website: https://www.edspira.com * Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira * Facebook group: https://www.facebook.com/groups/561316587899818// * Reddit: https://www.reddit.com/r/edspira * LinkedIn: https://www.linkedin.com/company/edspira CONNECT WITH MICHAEL * Website: http://www.MichaelMcLaughlin.com * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin * Facebook: https://www.facebook.com/prof.michael.mclaughlin * Snapchat: https://www.snapchat.com/add/prof_mclaughlin *Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin *TikTok: https://www.tiktok.com/@prof_mclaughlin

Edspira Update – Summer 2021 [Video]
►
Categories
Resources for Accountants

Edspira Update – Summer 2021 [Video]

— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

  • Tags
FIFO vs. LIFO vs. Weighted Average Cost [Video]
►
Categories
Resources for Accountants

FIFO vs. LIFO vs. Weighted Average Cost [Video]

A retailer’s cost of goods sold (and ending balance of inventory) are affected by whether the company uses FIFO, LIFO, or weighted-average cost to value its inventory. In periods of rising prices, LIFO results in the highest cost of goods sold and thus the lowest net income. FIFO would result in the lowest cost of goods sold and highest net income, whereas the weighted-average cost method would result in a cost of goods sold that is in between the figures obtained by using LIFO and FIFO.In periods declining prices, we would see the opposite: LIFO results in the lowest cost of goods sold and highest net income, whereas FIFO results in the highest cost of goods sold and lowest net income.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

  • Tags
Introduction to Leasing [Video]
►
Categories
Resources for Accountants

Introduction to Leasing [Video]

The most common way businesses acquired equipment and software in 2018 was through leasing, which financed 24% of purchases (2019 Equipment Leasing & Finance Industry Horizon Report). The leasing market is large, with 50 countries responsible for $1.36 trillion in leasing volume in 2019 (White Clarke Group, Global Leasing Report, 2021).So what is a lease? IFRS 16 states that a lease is present if a contract, “conveys the right to control the use of an identified asset for a period of time in exchange for consideration.” Leasing is thus a form of financing.The lessor in a lease agreement is the entity granting the right to use the property.The lessee in a lease agreement is the entity receiving the right to use the property.Thus, if a CPA firm pays a monthly fee to rent the 5th floor of an office building from its owner, the CPA firm is the lessee and the owner of the office building is the lessor.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

  • Tags
The 3 Types of Lessors [Video]
►
Categories
Resources for Accountants

The 3 Types of Lessors [Video]

When it comes to lease agreements, the 3 types of lessors are:(1) banks (2) captive leasing companies(3) independentsMany large banks have subsidiaries that structure leasing arrangements. Banks have an advantage in arranging leases because banks have access to low-cost funds from depositors.Captive leasing companies (often called “captives” for short) are subsidiaries of a manufacturer or a dealer. For example, Boeing has a subsidiary called Boeing Capital that arranges leases for customers who would like to lease aircraft from the parent company. The advantage captives have over banks is that a captive leasing company has access to the customer at the point of sale. If you’re thinking of leasing an airplane from Boeing, for example, the Boeing salesperson can have someone from Boeing Capital arrange the lease for you. Captive leasing companies sometimes offer more favorable lease terms than a bank because they are trying to help the parent company sells its products or services.There are also independent leasing companies that focus entirely on making lease arrangements, but these companies have a declining market share. — Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin

  • Tags