Few concepts in FRPA

1. Accounting equation
2. Expense vs expenditure
3. Revenue recognition
4. Depreciation vs amortisation
5. Impairment , diminution and NRV
6. Revaluation
7. Current asset vs fixed assets
8. Capitalisation of expenses
9. Lease – finance lease / operating lease
10. EPS – basic vs diluted
11. P/E
12. Market capitalisation
13. Profit vs cash
14. Provision vs contingent liability vs accrual
15. Retained profit
16. Reserves – categories
17. Sundry debtor vs bills receivable, bad debt, provision, good debt
18. Working capital – gross vs net, operating cycle
19. RoI vs RoE
20. Quick ratio, current ratio, CCC
21. Dupont analysis
22. Profit as liability and loss as an asset
23. Fund in fund flow
24. Cash flow vs fund flow
25. Cash flow – operating, investing and financing
26. Bonus shares – what happens in balance sheet
27. Rights issue, buyback, stock split, reverse split
28. Deferred tax – asset/liability
29. Various concepts/principles – going concern, materiality, realisation, matching etc.
30. Capital and revenue expenditure, capital and revenue receipt – treatment in books of
accounts
31. Goodwill
32. Minority interest
33. Deferred revenue expenditure
34. Deferred tax
35. Golden rules of accounting
36. Capital maintenance concepts
37. Liquidity vs sonvency
38. Common shares, preference shares - characteristics
39. Adjustments in final accounts
40. Sources and uses of funds
41. Cross and non-cross transactions
42. Classification into balance sheet / income statement
43. Net current assets
44. Profit Appropriation
45. COGS
46. Convertibles
47. Differential voting rights
48. Share warrant
49. Residual value
50. Fair value
51. Net block vs gross block
52. Gross profit vs operating profit vs net profit
53. Book value, networth
54. Substance over form
55. Pledge, hypothecation, collateral
56. Pari passu charge
57. Capital employed
58. Operating cycle vs cash cycle
59. Window dressing, earnings management, fraud
60. Book building
61. Business risk vs financial risk
62. Cash discount vs trade discount
63. Convertibles vs warrants
64. Debentures vs binds
65. Leverage – operating, financial leverage
66. Factoring vs forfeiting
67. Securitisarion
68. Treasury stock
69. Underwriting
70. Earnings management
71. Big bath
72. Cookie jar reserves
73. Fraud
74. Forensic accounting
75. Fraud triangle
76. Benford’s law
77. Corporate governance