Financial Accounting

Course Number: ACCTING 2010
Course Name: Financial Accounting (Online)
Course Description:    Introduction to accounting concepts and procedures including the accounting cycle, assets, liabilities, and financial statements. Develops the ability to use accounting information for decision making.
Prerequisites:    None
Level: Undergraduate
Credits: 3
Format: Online  (This course is also offered in print.)
Program: Bachelor of Science in Business Administration
Bachelor of Science in Criminal Justice

Registration Instructions

NOTE: The information below is representative of the course and is subject to change.  The specific details of the course will be available in the Desire2Learn course instance for the course in which a student registers.

Additional Information

Learning Outcomes
Upon completion of this course, you should be able to

  • Understand how financial accounting information is used to help make decisions.
  • Describe the content and purpose of each of the financial statements, and discuss the users and uses of financial information.
  • Understand and use the basic accounting equation, and the rules of debit and credit.
  • Understand generally accepted accounting principles.
  • Use ratios and other tools to analyze companies.
  • Use the accounting information system, including preparing journal entries, adjusting entries, and closing entries.
  • Account for assets and current liabilities.
  • Apply the basic assumptions and principles of financial accounting.
  • Understand the importance of cash flow to a business and prepare a statement of cash flows.
Unit Descriptions
Course Organization and Assignment Descriptions

Unit 1: Introduction to Financial AccountingGrading Information
Overview
In general, the study of accounting is crucial for business people, because accounting is the language of business. To a large extent, most of the information that is used in the business world consists of accounting information, which is necessary for informed decision making. Accounting information directs the attention of decision makers to problems and opportunities, provides the input necessary to make business decisions concerning those problems and opportunities, and then provides feedback on the success or failure of those decisions.

Financial accounting provides information to external decision makers, such as investors and creditors. Unit 1 will introduce you to financial accounting and the basic financial accounting information system.

Outcomes
Upon completion of this unit, you should be able to

  • Understand how financial accounting information is used to help make decisions.
  • Describe the content and purpose of each of the financial statements, including a classified balance sheet, and discuss the users and uses of financial information.
  • Explain the meaning of assets, liabilities, and stockholders' equity, and understand and use the basic accounting equation.
  • Understand generally accepted accounting principles.
  • Use ratios and other tools to analyze companies.
  • Analyze the effect of business transactions on the basic accounting equation.
  • Explain accounts, debits, and credits.
  • Prepare journal entries.
  • Explain what a journal and a ledger are, and post journal entries to the ledger.
  • Explain the purposes of a trial balance.
  • Differentiate between the cash basis and accrual basis of accounting.
  • Prepare all types of adjusting entries.
  • Explain the purposes of and prepare closing entries.

Unit 2: Merchandising Operations and Inventory
Overview
As discussed in Unit 1, the study of accounting is crucial for business people because accounting is the language of business. Much of the information that is used in the business world consists of accounting information, which is necessary for informed decision making. Accounting information directs the attention of decision makers to problems and opportunities, provides the input necessary to make business decisions concerning those problems and opportunities, and then provides feedback on the success or failure of those decisions. Unit 1 introduced us to the basics of financial accounting, which provides information to external decision makers, such as investors and creditors. Unit 1 looked at these basics though the perspective of companies that sell only services, since accounting for service firms is easier.

Unit 2 starts out by looking at accounting issues unique to merchandising firms. Throughout the rest of Unit 2 (and the rest of the course), we look at the specific financial statement elements in more detail, such as inventory and cost of goods sold (Chapter 6).

Outcomes
Upon completion of this unit, you should be able to

  • Explain the difference between a service company and a merchandising company.
  • Prepare all journal entries for a merchandising firm using a perpetual system.
  • Prepare a single-step and multiple-step income statement.
  • Evaluate profitability.
  • Determine inventory quantities.
  • Use the LIFO, FIFO, and Average Cost methods to determine cost of goods sold and inventory.
  • Explain the advantages, disadvantages, and effects of the inventory cost flow assumptions.
  • Compute and interpret inventory ratios.

Unit 3: Internal Control, Cash, Receivables, and Long-Lived Assets
Overview

Unit 1 introduced us to the basics of financial accounting, which provides information to external decision makers such as investors and creditors. Unit 1 looked at these basics though the perspective of companies that sell only services, since accounting for service firms is easier. Unit 2 introduced accounting issues unique to merchandising firms. Throughout the rest of Unit 2 (and the rest of the course), we look at the specific financial statement elements in more detail. In Unit 2, we studied inventory and cost of goods sold (Chapter 6).

Unit 3 continues our examination of specific financial statement elements by looking at internal control and cash (Chapter 7), accounts and notes receivable (Chapter 8), and plant assets and intangible assets (Chapter 9). All of these items are integral components of financial statements and an understanding of these items is necessary for an understanding of those statements.

Outcomes
Upon completion of this unit, you should be able to

  • Define fraud and internal control.
  • Identify the principles of internal control and explain their application.
  • Prepare a bank reconciliation and the related journal entries.
  • Explain the reporting of cash.
  • Account for the recognition and valuation of accounts receivable, including accounting for bad debts.
  • Prepare all journal entries for notes receivable.
  • Explain the financial statement presentation of receivables.
  • Use ratios to analyze receivables.
  • Account for the acceleration of the receipt of cash from receivables.
  • Account for plant assets, including determination of cost, depreciation, and disposal.
  • Use ratios to analyze plant assets.
  • Account for intangible assets.
  • Explain the financial statement presentation of plant assets and intangible assets.

Unit 4: Stockholders & Equity and Cash Flows
Overview

Unit 1 introduced us to the basics of financial accounting, which provides information to external decision makers such as investors and creditors. Unit 1 looked at these basics though the perspective of companies that sell only services, since accounting for service firms is easier. Unit 2 introduced accounting issues unique to merchandising firms. In the rest of Unit 2 and in Unit 3, we studied the specific financial statement elements in more detail.

Unit 4 continues our examination of specific financial statement elements by looking at liabilities (Chapter 10), stockholders' equity (Chapter 11), and the statement of cash flows (Chapter 12). All of these elements are integral components of financial statements, and in order to completely understand financial statements, you must have a full understanding of each of the elements.

Outcomes
Upon compltion of this unit, you should be able to

  • Account for current liabilities, including notes payable, sales taxes payable, unearned revenues, and payroll.
  • Account for the issuance of bonds payable at face value, a discount, or a premium; the related interest; and the retirement of the bonds.
  • Explain the financial statement presentation of liabilities.
  • Use ratios to analyze liabilities.
  • Discuss the major characteristics of a corporation.
  • Understand the differences between common and preferred stock and record the issuance of both types of stock.
  • Explain treasury stock and record its purchase.
  • Prepare the entries for cash dividends and understand the effects of stock dividends and splits.
  • Prepare and analyze the stockholders' equity section.
  • Discuss the usefulness of the statement of cash flows.
  • Distinguish between operating, investing, and financing activities.
  • Prepare a statement of cash flows using the indirect method.
  • Use the statement of cash flows to analyze a company.

Grading Criteria for Activities

Assignment Possible Points
Exams (2 @ 150 pts. each) 300 points
Final Project 25 points
Class Discussions ( 8 @ 5 pts. each) 40 points
Group Collaborations (3 @ 25 pts. each) 75 points
Written Assignments (12 @ 5 pts. each) 60 points
Quizzes (4 @ 25 pts. each) 100 points
Total: 600 points

*This course has proctored exams.   If you do not have a proctor on file with the Distance Learning Center, you must submit a proctor nomination form at the time you register for this course.  For proctor information visit our website.

Grading Scale:
A 91% - 100%
A- 89% - 90%
B+ 87% - 88%
B 81% - 86%
B- 79% - 80%
C+ 77% - 78%
C 71% - 76%
C- 69% - 70%
D+ 67% - 68%
D 60% - 66%
F 0% - 59%

 

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