Owners' Equity and Earnings per Share

• Distinguish between paid-in and earned capital.
• Record journal entries related to common, preferred, and treasury stock.
• Record journal entries related to the various types of dividends.
• Calculate basic and diluted earnings per share (EPS).
• Evaluate the various accounting treatments for stock compensation.

Investments

• Distinguish between debt and equity investments.
• Classify securities as available-for-sale, held-to-maturity, or trading.
• Determine when to use the fair value and equity methods of accounting for investments.
• Prepare journal entries for investments using the fair value and the equity method.
• Distinguish between traditional and derivative financial instruments.

Accounting for Income Taxes

• Differentiate between temporary and permanent differences.
• Calculate current and deferred tax assets and liabilities.

Accounting for Pensions and Post-Retirement Benefits

• Differentiate between a defined contribution and a benefit plan.
• Determine the components of pension expense.
• Calculate pension liability and expense.

Accounting Changes and Error Analysis

• Prepare journal entries associated with changes in accounting principles, reporting entities, and estimates.
• Prepare journal entries associated with changes due to errors.