Intermediate Accounting 2: a QuickStudy Digital Reference Guide

By Michael P Griffin

Essentials of the college level Intermediate Accounting 2 course expertly written in our time-tested condensed format that is proven to support students, their studies, grades and even their professional life after graduation. Our experienced author, professor and consultant Michael Griffin, MBA, CMA, CFM, ChFC has outdone himself providing the clearest organization of concepts streamlined to offer facts, equations, examples and explanations in this digital guide offering incredible value for quality course and professional support that you will not find anywhere else. Any business professional that deals with top-level management of multifaceted companies would also find this to be a great reference for facets they may not deal with on a daily basis, but that they are expected to understand regarding operations and strategy, again at an unbeatable value.
Digital guide includes:

• Investments
• Current Payables
• Income Tax Accounting
• Long-Term Liabilities
• Asset Retirement Obligations
• Leases
• Pensions
• Contingencies
• Equity
• Statement of Cash Flows

• Language: English
• Publisher: BarCharts, Inc.
• Release date: Jul 1, 2019
• ISBN: 9781423243311

Book preview

title

Intermediate Accounting Coverage

Intermediate accounting is typically covered in two separate courses: Intermediate Accounting I and Intermediate Accounting II. This QuickStudy guide covers Intermediate II content. Intermediate I content (also covered in a QuickStudy guide) covers the following accounting concepts, some of which are prerequisite to the understanding of Intermediate Accounting II concepts:

Investments

Classification of investments: Debt securities (bonds and notes) and equity securities (common and preferred stocks):

Debt securities: Debt instrument that can be bought or sold between two parties and has basic terms defined, such as the amount borrowed (principal), interest rate, and maturity date.

Equity securities: An ownership interest in an entity or a right to acquire such an interest.

These are recorded at cost and measured at fair values when quoted market prices are available.

If quoted market prices do not exist, equity securities are reported at cost until sold.

When the investing company lacks significant influence over the operating and financial policies of the investee, the investments are recorded using three categories:

Held-to-Maturity Securities

These securities have a specified date that they mature and on that date the principal (face value) is paid to investors.

Usually, interest is paid to the investor periodically during the life of the security.

Premium: If the interest rate (stated rate) paid by the debt security is higher than the prevailing market rate on similar risk debt securities, the debt instrument will be sold for a value greater than its face value.

EX: A company buys a bond with a face value of $1,000,000 for