Course Description
Financial accounting examines accounting concepts, the accounting model, measurement processes, financial statements, financial analysis, the accounting cycle, monetary and fixed assets, inventory, current and long-term liabilities and equity structures of partnerships, proprietorships and corporations.
Course Objectives
Upon completion of this course, students should be able to
- Use Excel to perform a variety of analyses
- Understand how to prepare and interpret the four basic financial statements
- Understand the importance of the accrual basis of accounting.
- Explain the accounting cycle
- Understand the basics of accounting internal control
- Account for receivables and bad debts
- Account for inventory under the four basic inventory cost flow assumptions
- Account for the acquisition, depreciation and disposition of long-term assets
- Distinguish between and account for current and long-term liabilities
- Apply the rules associated with accounting for stockholders' equity
Week 1
Lecture: Course Introduction
Lecture: Accounting Fundamentals
Outcomes
- Understand the point of accounting and who needs it
- Explore the fundamental accounting principles
- Become familiar with the accounting equation
- Examine the four basic GAAP - Generally Accepted Accounting Principles
- Consider different forms of business organization
Week 2
Lecture: Accounting Mechanics and Cycle
Lecture: Debit and Credit Drill
Lecture: Accrual Drill
Lecture: Trial Balance Preparation
Lecture: Accrual Accounting
Outcomes
- Understand the Mechanics of Accounting
- Learn the Accounting Cycle
Week 3
Lecture: Internal Control Systems
Lecture: Investments and Receivables
Lecture: Investments and Receivables - Drill
Outcomes
- Examine the internal control system
- Understand bank reconciliation and related journal entries
- Learn how to use a budget to manage cash
- Learn how to report cash on the balance sheet
Week 4
Lecture: Inventory
Lecture: Cost Flow
Outcomes
- Understand inventory and periodic and perpetual inventory systems
- Become familiar with the cost of goods sold methods
- Explore inventory costing methods and accounting principles
- Understand gross profit percent and inventory turnover concepts
- Know when and how to estimate inventory
- Examine inventory cost flow examples
- Explain perpetual system
- Identify rising price assumptions
Week 5
Lecture: Depreciation Examples
Lecture: Stocks
Lecture: Assets
Outcomes
- Understand plant assets
- Determine the cost of plant assets
- Learn depreciation methods
- Understand partial year depreciation
- Know how to change the useful life of a plant asset
- Become familiar with the disposition of a plant asset
- Explain depletion and natural resources
- Explain intangible assets and amortization
- Identify corporate form of organization
- Explain issuing stock, and purchase and sale of treasury stock
- Identify cash dividends, stock dividends, stock splits, return on assets and return on common equity
Week 6
Lecture: Liabilities
Lecture: Accounting for Current Liabilities
Outcomes
- Explain known and unknown amounts
- Identify contingent liabilities
- Understand bond accounting
- Distinguish debt from equity financing
- Explain reporting and lease liabilities
Week 7
Lecture: The Complex Income Statement
Lecture: Cash Flows and Activities
Outcomes
- Explain the complex income statement
- Identify continuing operations and discontinued operations
- Learn about changes in accounting principles
- Explore EPS
- Understand management's responsibility
- Examine the auditors' report
- Explore the statement of cash flows
- Become familiar with operating, investing and financing activities
- Identify noncash investing and financing activities
- Explain the indirect method and direct method
- Learn about reconciliation of net income to net operating cash flow
Week 8
Lecture: Analysis
Outcomes
- Understand horizontal and vertical analysis
- Identify common-size financial statements
- Learn ratios:
- Current liabilities
- Collect receivables
- Pay long-term debt
The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. November 2011
