ACC 201 Introduction to Financial Accounting (3)

Course Prefix
ACC
Course Number
201

Course Title

Introduction to Financial Accounting

Credit Hours

3

Teaser

Introduction to financial accounting and methods used to record and report financial information to decision makers external to the firm. Use and limitations of financial reports. Pre: sophomore standing.

Body

Subjects

  • Meaning of accounting
  • Users and uses of accounting
  • Ethics
  • Brief history of accounting
  • Careers in accounting
  • Key items in the conceptual framework
  • Objectives of financial accounting
  • Principles used in international accounting
  • GAAP and the foundation of accounting
  • Accounting equation
  • Accounting cycle, manual and computerized
  • Detailed studies of balance sheet accounts and presentation
  • Financial statement preparation and analysis
  • Accounting for merchandising operations
  • Internal control, strengths and limitations
  • Financial statement analysis: horizontal, vertical, ratios

After completing ACC 201/250, students will:

  • Understand that accounting is the language of business and the role of accounting information in making economic decisions.
  • Understand the general purpose of financial statements and how the business community uses them.
  • Know key terms, principles (such as historic cost, full disclosure, etc) and definitions used widely in accounting.
  • Understand the steps in the accounting cycle.
  • Know how to prepare simple journal entries, adjusting entries, and closing entries; understand how each journal entry effects the financial statements.
  • Know how to apply the accounting cycle for a merchandising company.
  • Understand what constitutes a financial asset such as receivables and how to explain their valuation in the balance sheet.
  • Know how to prepare a bank reconciliation.
  • Know the general internal control principles and specific cash controls.
  • Understand the importance of calculating accurate inventory and cost of good sold values.
  • Know how to apply periodic FIFO, LIFO, Weighted Average and Specific Identification methods to valuing ending inventory and cost of goods sold.
  • Understand how to determine the cost of operating assets and to record the related depreciation and amortization using straight-line and units of production methods.
  • Understand what constitutes a liability and how to separate liabilities into current and long-term components for reporting purposes.
  • Understand owners? equity and how it is reported for businesses such as corporations.
  • Know how to adjust retained earnings, and understand the purpose of the accumulated other comprehensive income account.
  • Know how to create a simple income statement, statement of owners? equity and balance sheet from a narrative of transactions.
  • Understand the purpose, usefulness and preparation of the cash flow statement.
  • Be familiar with some of the basic ratios used in financial statement analysis.