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10101244 Financial Accounting
Course Information
Description
Introduction to generally accepted accounting principles for measurement and recording business transactions to prepare basic financial statements. These statements will be analyzed and interpreted along with other financial data utilizing traditional methods to develop a sound basis for business decisions. 
Total Credits
4
Prior Learning Assessment
  • Exam-National (CLEP)

Course Competencies (Course Outcomes)
  1. Analyze financial transactions
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Identify business accounting transactions
    Identify accurate accounts and abbreviations
    Classify accounts as Assets, Liabilities, Owners' Equity, Revenue or Expense correctly
    Explain how debits and credits increase or decrease the accounts

  2. Record transaction in general journal
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Prepare a journal entry in proper form
    Prepare accurate journal entries
    Use accurate dollar amounts

  3. Record transactions in the ledgers
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Post journal entries into the ledger accounts
    Prepare an accurate unadjusted trial balance neatly and in good form

  4. Prepare adjusting entries
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Explain why adjusting entries are necessary to provide accurate financial statements
    Convert cash expenses or revenues into the proper accrual basis amount
    Record the proper entry for an expense initially charged to a prepaid asset account
    Record the proper entry for a revenue initially recorded as an unearned revenue
    Identify and record unrecorded/accrued revenues and expenses
    Record depreciation of plant and equipment accurately
    Identify and record reversing entries accurately

  5. Prepare closing entries
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Identify temporary accounts correctly
    Journalize the closing entries correctly
    Post the entries to the ledgers correctly
    Prepare an accurate post-closing Trial Balance neatly and in good form

  6. Prepare an Income Statement
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Prepare the Income Statement neatly and in good form
    Prepare a single-step Income Statement correctly
    Prepare a multi-step Income Statement correctly

  7. Prepare a Statement of Owners' Equity
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Prepare the Statement of Owners' Equity neatly and in good form
    Prepare a Statement of Owners' Equity correctly

  8. Prepare a classified balance sheet
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Prepare the balance sheet neatly and in good form
    Prepare a balance sheet correctly

  9. Record merchandising activities
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Explain the difference between a periodic and perpetual inventory system
    Prepare accurate journal entries for the purchase and sale of merchandise inventory using both the periodic and perpetual methods
    Compute purchase and sales discounts
    Prepare the closing entries for a merchandising company

  10. Apply the major inventory valuation methods
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Explain the difference between the major inventory valuation methods and the impact on cost flows including FIFO, LIFO, & Weighted Average for both perpetual and periodic inventory system
    Apply both the retail inventory and gross profit methods to estimate inventory

  11. Apply internal controls to cash
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Describe the major internal controls relating to cash and their importance
    Record petty cash transactions
    Prepare a neat and accurate Bank Reconciliation Statement
    Use Gross and Net methods of recording merchandise purchase transactions

  12. Record accounts receivable transactions
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Apply the allowance method to account for Accounts Receivable
    Estimate uncollectible amount using methods based on Sales and Accounts Receivable
    Prepare accurate journal entries to account for bad debts

  13. Record notes receivable transactions
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Record receipt of and payment on notes receivable
    Compute and record the accrual of interest
    Record the honoring and dishonoring of a note receivable

  14. Record depreciation
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Explain the difference between the major depreciation methods
    Compare and analyze depreciation for different methods
    Apply the cost principle to compute the cost of plant assets
    Differentiate between ordinary repairs, betterments, and extraordinary repairs

  15. Record the purchase and disposal of plant assets and equipment
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Compute the cost basis of the asset
    Record asset disposal through discarding, selling, or exchanging an asset
    Use proper journal entry form
    Show all computations clearly

  16. Record current and long-term liabilities
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Record an interest-bearing note
    Record the interest and payment of an interest-bearing note
    Compute and record employee payroll expenses and liabilities
    Compute and record employee payroll deductions and liabilities
    Journalize warranty transactions
    Summarize when to account for contingent liabilities

  17. Record bond and long-term notes payable transactions
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Explain the differences between bonds and stocks
    Use basic bond terms
    Record the issuance of bonds at par, at a premium and at a discount
    Calculate bond amortization using straight line and the effective interest method
    Record bond interest expense
    Record the retirement of bonds
    Record interest expense for installment notes assuming equal principal payments and equal payments

  18. Record corporation ownership transactions
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Describe the characteristics of a corporation
    Use basic corporation equity terms
    Record the issuance of common and preferred stock at par and in excess of par
    Calculate the distribution of dividends to common and preferred stockholders
    Use common dividend terms
    Record cash and stock dividends
    Record treasury stock transactions
    Compute book value per share

  19. Prepare a Statement of Cash Flows
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Differentiate between cash flows from operating, financing and investing activities
    Describe the format of the Statement of Cash Flows
    Prepare a Statement of Cash Flows using the direct and indirect methods

  20. Analyze financial statements
    Assessment Strategies
    Exam with at least 70% correct, homework assignments and/or projects
    Criteria
    Describe the purpose of financial analysis
    Calculate and interpret common ratios used in analysis
    Prepare vertical and horizontal analysis