Ch 2: Financial Valuation, Recognition & Measurement

About This Chapter

Demonstrate whether you understand financial valuation, recognition, and measurement by reviewing the learning materials of this chapter. You can identify the extent of your knowledge with these accounting concepts by going through each lesson and answering the connected lesson quizzes.

Financial Valuation, Recognition & Measurement - Chapter Summary

In this chapter, you'll get to go over all of the concepts related to financial valuation, recognition, and measurement strategies. Our instructors provide insight on various accounting approaches, mathematical formulas, and standard methodologies. Each lesson addresses a specific topic, giving you a step-by-step overview full of definitions, keywords, and examples. After you complete the chapter, you should be prepared to do the following:

  • Point out examples of asset approach valuation
  • Review stock purchases accounting and the steps for issuing a stock
  • Offer examples of dividend payments and cash dividends
  • Show the accounting formula and methods for treasury stock
  • Determine the difficulties in measuring equities, liabilities, and assets
  • Establish the process and principles of revenue recognition
  • Outline approaches to income measurement
  • Evaluate IFRS as compared to GAAP

Some of the lessons available in this and other chapters are in the form of short articles. These lessons read like expertly crafted notes, but livelier and with well-thought-out examples. You can clearly see the major concepts for each lesson, as they are indicated by the larger headers. Words that are set off in bold or italics are usually vocabulary words, definitions, or key concepts. Visual aids, such as pictures, graphics, and formulas, further demonstrate these accounting concepts.

At the end of each lesson is a short lesson summary. If you feel you are familiar with these topics and you just need a quick recap, sometimes skipping down to the lesson summary is a good way to start out each lesson. After all, if you know the information, the lesson summaries will hit on all the key vocab words and concepts that you should already understand. If anything in the lesson summaries isn't familiar, you can always scroll up to re-examine the lesson materials.

7 Lessons in Chapter 2: Financial Valuation, Recognition & Measurement
Test your knowledge with a 30-question chapter practice test
Issuing a Stock & Accounting for Stock Repurchases

1. Issuing a Stock & Accounting for Stock Repurchases

Corporations need money to help fund large purchases, like equipment and machinery, and to help with ongoing operations. In this lesson, you will learn about stock issuance and repurchases.

Cash Dividends & Dividend Payment

2. Cash Dividends & Dividend Payment

When a company decides to pay a dividend to shareholders, they first have to decide what type of dividend to pay. In this lesson, we'll examine the most common types of dividends and look at the timeline for cash dividend payments.

Treasury Stock: Definition, Accounting Method & Formula

3. Treasury Stock: Definition, Accounting Method & Formula

Treasury stock is a very special category of stock within the business world. Read this informative lesson to find out exactly what treasury stock is and how business managers and executives use it within their companies.

Challenges in Measuring Assets, Liabilities & Equities

4. Challenges in Measuring Assets, Liabilities & Equities

While it's pretty easy to figure out what is an asset and what is a liability, it is quite a bit harder to determine just how much each is worth. In this lesson, we look at the challenges of measurement in accounting.

What is Revenue Recognition? - Principles, Process & Examples

5. What is Revenue Recognition? - Principles, Process & Examples

Did you know that when it comes to reporting revenue in the accounting records of a company, there is a certain time that it needs to be done? In this lesson, we are going to discuss the timing of revenue reporting and the Revenue Recognition Concept.

Income Measurement: Definition & Approaches

6. Income Measurement: Definition & Approaches

How much income is truly available? Is income defined by gross or net amounts? Or by some other measure? There are four approaches to accounting for income. This lesson will define income measurement and explain the four approaches.

Differences Between GAAP & IFRS

7. Differences Between GAAP & IFRS

We live in an interconnected world, and doing business globally has become nearly commonplace. This impacts financial reporting and accounting standards. In this lesson, we'll cover differences between the US and International standards.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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