ACCT105 Financial Accounting (Formerly Principles of Accounting I)

Department of Business Studies: Accounting

1. Course Number and Title

   ACCT105 Financial Accounting (Formerly Principles of Accounting I)

2. Number of Credits

   4 credits

3. Minimum Number of Instructional Minutes Per Semester

   3000

4. Prerequisites

   Reading Placement Test score Level 3 or ACCT103 (C or better)

   Corequisites

   None

5. Other Pertinent Information

   None

6. Catalog Course Description

   This course provides an introduction to the objectives, principles, assumptions and concepts of financial accounting. It focuses on procedures and practices from the accounting cycle through financial statement presentation with an emphasis on recognizing, valuing, reporting, and disclosing assets, liabilities, and equity. This course presumes no previous accounting knowledge.

7. Required Course Content and Direction

   1. Learning Goals:

      1. Course
      Students will
      1. demonstrate an understanding of corporate governance, generally accepted accounting principles and the accounting cycle;
      2. analyze , record, and report business transactions using the accounting equation and the general journal/general ledger system;
      3. use general ledger account information to prepare trial balances and the various financial statements;
      4. examine and explain how transactions relating to the recognition, valuation, and disposal of assets, liabilities, and stockholders' equity affect the various financial statements; and
      5. prepare financial statement analysis to evaluate the financial performance of a company
      
      
      2. Core (if applicable)
      This course is not included in the Core.

   2. Planned Sequence of Topics and/or Learning Activities:

      1. describe a chart of accounts and its use in the accounting process
      2. record business events using the accounting equation
      3. make year-end adjustments to recognize accrued and deferred revenues and expenses
      4. discuss the primary components of corporate governance
      5. record and report on inventory transactions using a perpetual and periodic inventory system
      6. explain how gains and losses differ from revenues and expenses
      7. compare and contrast single and multi-step income statements
      8. determine the amount of net sales and net purchases (discounts, returns, and allowances)
      9. determine the amount of cost of goods sold and ending inventory using the FIFO, LIFO, weighted average, and specific identification cost flow methods
      10. apply the lower- of- cost- or- market rule to inventory valuation
      11. use the gross margin method to estimate ending inventory
      12. identify the key elements of a strong system of internal control and special internal controls for cash
      13. prepare a bank reconciliation
      14. explain the use of a petty cash fund
      15. explain the allowance method of accounting for uncollectible accounts and how the method affects financial statements
      16. estimate uncollectible accounts expense using the percent of revenue method and the percent of receivables method
      17. show how the direct write- off method of accounting for uncollectible accounts affects financial statements
      18. account for notes receivable, notes payable and accrued interest
      19. explain how accounting for credit card sales affects financial statements
      20. determine how to record the acquisition and the allocation of costs of long- term operational assets
      21. determine book value and explain how gains and losses on disposals of long- term operational assets affect financial statements
      22. show how revising estimates and continuing expenditures for operational assets affect financial statements
      23. explain how expense recognition for natural resources (depletion) and intangible assets (amortization) affects financial statements
      24. illustrate how warranty obligations affect financial statements
      25. determine payroll taxes and explain how they affect financial statements
      26. describe bond features and show how the issuance of bonds effect financial statements
      27. use the straight-line and effective interest methods to amortize bond discounts and premiums
      28. identify the primary characteristics of sole proprietorships, partnerships, and corporations
      29. explain different types of capital stock and show how the stock affects financial statements
      30. explain how dividends, stock splits, stock dividends, and appropriations affect financial statements
      31. prepare a financial statement analysis including horizontal and vertical analyses and ratios to assess a company's liquidity, solvency, management's effectiveness, and a company's position in the stock market
      32. record transactions using the general journal format and show their effect on financial statements
      33. identify and prepare 1) an unadjusted trial balance, 2) an adjusted trial balance, and 3) a post-closing trial balance and explain how they are used to prepare financial statements
      34. use general ledger account information to prepare and interpret the balance sheet, income statement, statement of changes in owners' equity, and the statement of cash flow (indirect and direct methods)

   3. Assessment Methods for Core Learning Goals:

      1. Course
      The assessment of course learning goals may be based on discussions, homework, quizzes, exams, assignments, papers, performance based tasks and projects, and/or instructor evaluation.
      
      
      2. Core (if applicable)
      This course is not included in the Core.

   4. Reference, Resource, or Learning Materials to be used by Students:

      See course format for required textbook and any related materials.

8. Teaching Methods Employed

   Section VIII is not being used in new and revised syllabi as of 12/10/08.

Review/Approval Date -3/99; Revised 12/2011; Revised 5/2012