10101121Accounting 3 - Intermediate
Course Information
Description
This intermediate-level course builds on the material covered in the Accounting Principles -1 and -2 courses. It expands on earlier coverage of both the income statement and balance sheet. Revenue recognition concepts and methods are covered. Emphasis is also placed on each classification of asset. This emphasis includes in-depth coverage of cash, receivables and inventory. Coverage also includes operational asset acquisition, depreciation, and disposal. Present value concepts are studied and applied. Excel spreadsheet software is used in this course.
Total Credits
4
Course Competencies
  1. Analyze the environment and theoretical structure of financial accounting
    Assessment Strategies
    Exam
    Criteria
    Differentiate between cash and accrual accounting systems
    Describe the historical perspective of generally accepted accounting standards (GAAP)
    Apply the basic GAAP assumptions and principles throughout projects
    You meet a minimum of 70% on the exam

  2. Prepare general journal entries, T accounts, and worksheets
    Assessment Strategies
    Exam
    Criteria
    General journal entries, adjusting entries, and closing entries are prepared in good form
    Prepare and properly use reversing entries
    Prepare and use T accounts
    Convert information from a cash based accounting system to an accrual accounting system
    You meet a minimum of 70% on the exam

  3. Prepare the classified balance sheet and required financial disclosures
    Assessment Strategies
    Exam
    Criteria
    Assets and liabilities are classified accurately
    Classified balance sheet is prepared in good form
    Financial disclosures related to: significant accounting events, subsequent events, and noteworthy events and transactions and prepared accurately
    Explain the components and purpose of the Management Discussion and Analysis disclosure
    Explain the components and purpose Auditor's Report disclosure, including the different types of audit opinions
    Prepare liquidity and financing ratios
    You meet a minimum of 70% on the exam

  4. Prepare income statements
    Assessment Strategies
    Exam
    Criteria
    Multi-step income statements are prepared in good form
    Properly report discontinued operations
    Properly report extraordinary items
    Properly prepare and report earnings per share disclosures
    You meet a minimum of 70% on the exam

  5. Record revenue using the appropriate, most effective recognition method
    Assessment Strategies
    Exam
    Criteria
    Allocate a contract's transaction price to multiple performance obligations
    Record contracts under variable considerations
    Record revenue using the percentage of completion method
    Record revenue using the completed contract method
    Calculate activity and profitability ratios
    You meet a minimum of 70% on the exam

  6. Use time value of money calculations
    Assessment Strategies
    Exam
    Criteria
    Calculate present values
    Calculate future values
    Calculate present and future values of annuities
    Calculate the present value of a deferred annuity
    You meet a minimum of 70% on the exam

  7. Properly account for cash and receivables
    Assessment Strategies
    Exam
    Criteria
    Describe internal control procedures related to cash
    Explain how to book bad debt expense and how to write off accounts using the direct write-off and allowance methods
    Prepare the initial entries to book both interest bearing and non-interest bearing Notes Receivable
    Prepare the entries to accrue interest on both interest bearing and non-interest bearing Notes Receivable
    Prepare the entries related to assigning accounts
    Prepare the entries related to factoring accounts receivable both with and without recourse
    You meet a minimum of 70% on the exam

  8. Use various inventory methods
    Assessment Strategies
    Exam
    Criteria
    Prepare the entries related to booking purchases using both the gross and net method
    Record inventory movements using both perpetual and periodic systems
    Record inventory movements using both the gross and net method
    Record inventory movements using specific identification, FIFO, LIFO and weighted average methods
    Record inventory movements using the dollar value LIFO method
    You meet a minimum of 70% on the exam

  9. Use other inventory valuation methods
    Assessment Strategies
    Exam
    Criteria
    Adjust inventory using the lower of cost or market methods and lower of cost of net realizable value
    Adjust inventory using the gross profit estimation method
    Adjust inventory using the retail estimation method
    You meet a minimum of 70% on the exam

  10. Book the acquisition and disposal of operational assets
    Assessment Strategies
    Exam
    Criteria
    Properly classify operational assets
    Identify what is to be capitalized and what is to be expensed related to acquisition
    Complete entries related to lump sum purchases
    Complete entries related to noncash acquisitions of operational assets
    Complete entries related to asset dispositions, including scrapping, selling, and trade-ins
    Complete entries related to capitalizing interest

  11. Record the utilization and impairment of assets
    Assessment Strategies
    Exam
    Criteria
    Calculate and prepare depreciation entries using the straight-line method, declining balance, units of production, and sum of the years digits
    Prepare partial year depreciation entries
    Prepare intangible asset amortization entries
    Calculate and prepare natural resource depletion entries
    Calculate and prepare entries related to a change in estimate or deprecation method
    Prepare the entries related to subsequent expenditures related to capital assets
    You meet a minimum of 70% on the exam