This course, presented by Technical Accounting, focuses on the principles of expense classification in accordance with the U.S. Generally Accepted Accounting Principles (GAAP) and Alphabet’s application of these principles to ensure consistency. It is geared toward Googlers in Accounting and Finance. Topics in this course include:
- How expenses are classified at Alphabet
- The flow of Alphabet’s income statement
- The financial reporting risks stemming from the incorrect classification of expenses
- The cost allocation process for the purpose of external reporting
Successful completion of this course will result in up to 1.5 CPE credits for CPAs.
Note: Google provides this course content, and Illumeo is the CPE credit provider.
Prerequisites
No advance preparation or prerequisites are required for this course.
Learning Objective
- Identify the nature and purpose of the key expense classification types:
- Cost of Revenues
- Research & Development (R&D) Costs
- Sales & Marketing Costs
- General & Administrative Costs
- Recognize the process Alphabet follows to achieve proper expense classification for external reporting purposes (i.e., the external allocation process)
- Recognize when and how to escalate to Corporate Accounting and/or Tech Accounting
Last updated/reviewed: March 10, 2024
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Google Finance Academy
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INTRODUCTION AND OVERVIEW
- Introduction 0:46
- Financial Reporting Overview 4:47
- Impact of Incorrect Classification 1:06
- Cost of Revenues 11:40
- Research & Development 10:46
- Sales & Marketing 2:52
- General & Administrative 5:20
- REVIEW QUESTIONS quiz
- The Expense Classification Allocations Process 19:36
- Escalation Process and Q & A 8:50
- Summary 0:24
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: Expense Classification and Cost Allocation Accounting PDF
- Expense Classification and Cost Allocation Accounting Glossary PDF
REVIEW AND TEST
- FINAL EXAM exam
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