Introduction to Financial Accounting
- Meaning of accounting
- Users and uses of accounting
- 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.