10101122Accounting 4--Intermediate
Course Information
Description
Emphasizes analysis of financial statements. Generally accepted accounting principles are applied in the preparation, analysis and interpretation of financial statements. Particular emphasis is applied to valuation of current and long-term liabilities and stockholders’ equity, and earnings per share. Special topics included are deferred income taxes, long-term investments, and leases. Further consideration is applied to errors and their correction, and statements of cash flow. Comparison and analysis is also made between GAAP and international standards (IFRS).
Total Credits
4
Course Competencies
  1. Record investments
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Determine the proper classification for various types of investments
    Record the purchase, realized income, and the unrealized gain or loss from transactions in trading securities
    Record the purchase, realized income, and the unrealized gain or loss from transactions in securities available for sale
    Record the purchase, the investor's share of invested's net income or loss, dividends received, and amortization of goodwill, and additional depreciation using the equity method
    You meet a minimum of 70% on the exam

  2. Explain the classification of liabilities
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Determine the essential characteristics that must be met for an amount to be considered a liability
    Differentiate between a current and a noncurrent liability
    You meet a minimum of 70% on the exam

  3. Record general liabilities
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Record routine current liability transactions
    Compute the present value and record a noninterest-bearing note
    Record typical accrued liabilities including interest payable, payroll payable, accrued paid absence time, etc.
    You meet a minimum of 70% on the exam

  4. Record contingent liabilities
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Identify what should be recorded given a list of typical contingent liabilities
    Record the provision for warranty costs properly
    You meet a minimum of 70% on the exam

  5. Record long-term bonds
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Justify issuing long-term bonds rather than stock
    Differentiate the market rate of interest from the stated rate of interest
    Compute the price of a bond using a business calculator
    Prepare a bond amortization schedule
    Record the sale of the bond and routing interest accrual and payments
    Record the reacquisition of a bond, including any gain or loss on the transaction
    You meet a minimum of 70% on the exam

  6. Record the provision for income taxes
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Record the provision for income taxes with the intraperiod tax allocation
    Record the provision for income taxes with the interperiod tax allocation
    Computations are accurate
    You meet a minimum of 70% on the exam

  7. Record a net operating loss
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Explain the purpose for the net operating loss carryback and carryforward
    Compute the correct loss to be carried back to previous periods and the remaining loss to be carried forward to future periods
    Record the tax benefit of the operating loss in the loss year
    Record the tax benefit of the operating loss carryforward in subsequent periods
    Prepare the bottom section of the income statement for the loss year
    You meet a minimum of 70% on the exam

  8. Record a lease
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Justify leasing rather than buying an operating asset
    Identify the four criteria that indicate a capital lease
    Record an operating lease
    Prepare a lease amortization schedule for a capital lease
    Prepare the journal entries to record a direct financing type of capital lease on both lessee's and lessor's books
    Prepare the journal entries to record a sales type of capital lease on both lessee's and lessor's books
    You meet a minimum of 70% on the exam

  9. Record a sale-leaseback
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Explain the basic reason for a corporation selling an asset and subsequently leasing back
    Justify deferral of a gain or loss on sale-leaseback
    Record a sale-leaseback on both lessee and lessor books, and properly amortize the gain on sale-leaseback
    You meet a minimum of 70% on the exam

  10. Record provision for pensions
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Differentiate a defined benefit pension plan from a defined contribution pension plan
    Compute and record the pension expense, the appropriate prepaid or accrued pension costs, and the funding of the plan
    You meet a minimum of 70% on the exam

  11. Record basic corporate equity transactions
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Explain the principal objective in accounting for corporate capital
    Record the sale of common stock for cash
    Record common stock for services, assets, or other noncash consideration
    Justify the purchase of treasury stock
    Record the purchase and sale of treasury stock
    Record the retirement of common stock whether held in the treasury or not

  12. Record dividends
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Explain why a corporation issues dividends
    Record a cash or a mixed cash and property dividend including adjusting the property to fair market value
    Justify the issuance of a stock dividend
    Compute and record a small stock dividend
    Explain the purpose for a stock split
    Record a retained earnings appropriation
    You meet a minimum of 70% on the exam

  13. Record a stock option plan
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Explain the purpose for executive stock options
    Compute the total compensation to be recorded on the measurement date
    Record the journal entry to record the option on the grant date, amortization of the compensation expense, and the exercise of the stock option
    You meet a minimum of 70% on the exam

  14. Compute earnings per share
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Compute simple EPS
    Compute primary EPS
    Present EPS on the income statement for net income before extraordinary items, for extraordinary items, and for net income
    You meet a minimum of 70% on the exam

  15. Prepare a complex statement of cash flows
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Justify the necessity for a statement of cash flows
    Explain how the direct or indirect format affect the preparation of the cash from operations only
    Prepare a statement of cash flows on a direct basis including the required reconciliation between accrual basis net income and cash from operations
    Prepare a statement of cash flows on an indirect basis including supplement disclosure for interest and taxes paid
    You meet a minimum of 70% on the exam

  16. Record accounting changes
    Assessment Strategies
    Written Product and/or Exam
    Criteria
    Justify the necessity for changing previously published financial statements
    Record a basic change in accounting principle
    Record a change in accounting estimate
    Record the correction in the current period of a material error made in a current period of a material error made in a prior period
    Prepare an income statement that includes a change in principle, change in estimate, and the correction of an error
    Compute pro forma net income and earnings per share
    You meet a minimum of 70% on the exam

  17. Utilize a financial calculator
    Assessment Strategies
    Skill Demonstration
    Criteria
    Compute the issue price of a bond
    Amortize a bond
    Compute the monthly/yearly payment of a long term liability
    Complete a loan amortization schedule
    Compute the present value of the minimum lease payments
    Prepare a lease amortization schedule using both an annuity due payment schedule and an ordinary annuity payment schedule
    Calculate the value of a capitalized lease and the lease payable