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.