Finance & Accounting Facts: Video Series

Purchase order requests refer to the purchasing process used by companies to authorize and place orders with vendors or for a variety of office needs. Ensure that only valid purchases are made with a company account by using well-organized purchase orders with information from a certified public accountant in this free video on purchase orders.

Key financial ratios that are used frequently include the gross margin ratio, return on equity ratio and return on assets ratio. Put financial ratios in context for a business by comparing different time periods and business forecasts with advice from a certified public accountant in this free video on accounting ratios.

When choosing between an enrolled agent and a CPA, consider using a CPA for external audits and enrolled agents for tax assistance. Make sure an enrolled agent or CPA is experienced in the type of taxes that you require with tips from a certified public accountant in this free video on accounting.

Preparing closing entries requires closing out an accounting period with a list of recurring finance information, such as accrual for salaries, fixed assets, depreciation and amortization. Keep a list of recurring closing entries for each quarter with advice from a certified public accountant in this free video on accounting.

Understanding bank financial statements requires looking at the different categories for loans, interest bearing deposits, federal funds sold, security agreements and gross profit margins. Find out how a bank financial statement will be very similar to a regular business financial statement with information from a certified public accountant in this free video on finances.

Preparing consolidated financial statements requires gathering information on income, cash flow and shareholder's equity from all different subsidiaries of a business. Eliminate inter-company profits to avoid inflating financial statements with insight from a certified public accountant in this free video on accounting.

The requirements for taking the CPA exam will vary from state to state, but they generally include having a certain number of education credits in accounting or business studies. Contact the state board of accountancy to find out specific requirements for the CPA exam with advice from a certified public accountant in this free video on accounting.

Format an income statement by including the revenues, cost of sales, other income, other expenses and income tax provisions. Disclose the net income of a company to public shareholders with advice from a certified public accountant in this free video on accounting.

Assets are classified as economic resources that can be current or non-current, while liabilities are classified as economic obligations. Determine the assets and liabilities of a company by looking at the balance sheet with information from a certified public accountant in this free video on accounting.

Accounting careers can include public accounting as an external auditor, governmental accounting, accounting for a commercial entity or working in financial analysis. Consider getting into tax fields as an accountant with insight from a certified public accountant in this free video on accounting.

Analyzing financial statements requires looking at several common finance ratios, such as gross margin ratio, operating margin and profit margin. Find out how to determine each accounting ratio in a financial statement with information from a certified public accountant in this free video on accounting.

Specialized fields of accounting include fund accounting, working with external financial statements, operational accounting, tax accounting or budget preparation. Decide whether to work in the public, private, commercial or governmental fields of accounting with help from a certified public accountant in this free video on accounting careers.

The role of an internal auditor is to look over the internal financial controls of a particular company. Internal auditors are often certified by the Institute of Internal Auditors. Find out how companies on the New York Stock Exchange have listed information on whether they do internal auditing with information from a certified public accountant in this free video on auditing.

Calculate gross margin percentage by taking the gross margin dollars and dividing by the sales. Get profit margin percentage by dividing the net income by sales. Learn how important context is when it comes to margin percentages with information from a certified public accountant in this free video on margin percentages.

Internal controls in finance include control environment, risk assessment, control activities and control related to information and communication. Monitor internal controls for a business over a period of time with insight from a certified public accountant in this free video on finance.

To calculate sales for a company, take the number of units sold and multiply it by the price of the items. Learn about deferred revenue, which is often used in the software industry, with information from a certified public accountant in this free video on finance.

Becoming a CPA, or certified public accountant, requires meeting education requirements, passing the CPA exam and fulfilling work requirements in audits and liability accounting. Check individual state requirements for becoming a CPA with advice from a certified public accountant in this free video on accounting careers.

Fill out a financial statement by listing assets from home value, investments and monthly income, and then listing information on liabilities and debts. Calculate net worth in a financial statement with help from a certified public accountant in this free video on financial statements.

Owner's equity is defined at the residual that is left after liabilities have been subtracted from total assets. It often includes items such as common stock, preferred stock and treasury stock. Show changes in owner's equity with a statement of change using tips from a certified public accountant in this free video on accounting.

Calculate CAPM, or capital asset pricing model, by taking the risk-free rate of a security and multiplying it by the risk premium. Figure out the average risk for a security by using the CAPM with information from a certified public accountant in this free video on accounting.

Calculating the cost of goods sold requires taking beginning inventory, adding purchases and subtracting the ending inventory. Determine the costs that actually go into building inventory with information from a certified public accountant in this free video on finance.

Read a balance sheet by looking at the assets, liabilities, shareholder's equity and major categories. Find out how a company is performing financially by looking at a balance sheet with instructions from a certified public accountant in this free video on accounting.

Different types of accounting include governmental accounting, non-profit accounting, public accounting, operational accounting and tax accounting. Focus on different areas of accounting in public or private industries with advice from a certified public accountant in this free video on accounting.

To evaluate a cash flow statement, look at the net income figure, determine the cash expenses, understand how excess funds are utilized, and find out about how cash is being used for financing activities. Add and subtract subtotals together on a cash flow statement with help from a certified public accountant in this free video on cash flow statements.

Format a cash flow statement by starting with the net income, showing the cash provided for operating activities, subtracting cash used for investing, and subtotaling all items. Calculate the net value for a company by using a cash flow statement with information from a certified public accountant in this free video on accounting.