|Student Learning Outcomes -|
- Explain financial accounting terminology, concepts, principles, and frameworks.
- Perform related calculations and demonstrate the ability to use methods and /or procedures to solve financial accounting problems.
|Description - |
|Continuation of ACTG 1A focusing on accounting as an information system, examining why it is important and how it is used by investors, creditors, and others to make decisions. Long-term assets, short- and long-term liabilities, equity valuation, revenue and expense recognition, statement of cash flows, financial statement analysis, internal controls, and ethics.|
|Course Objectives - |
|The student will be able to: |
- Identify types of long-term assets.
- Identify the costs associated with each category of plant assets.
- Identify issues relating to long-term asset acquisition, use, depreciation, amortization, depletion, and disposal.
- Distinguish between capital and revenue expenditures.
- Explain ethical issues related to plant assets
- Explain the valuation and reporting of current liabilities, estimated liabilities, and other contingencies.
- Explain issues related to payroll, its records, and payroll-related transactions.
- Identify and illustrate issues relating to long-term liabilities, including issuance, valuation, and retirement of debt.
- Identify issues relating to stockholders' equity, including issuance, repurchase of capital stock, and dividends.
- Explain the importance of operating, investing and financing activities reported in the Statement of Cash Flows.
- Interpret company activity, profitability, liquidity and solvency through selection and application of appropriate financial analysis tools.
|Special Facilities and/or Equipment - |
|Access to PC lab and Excel software. When taught as an online distance learning section, students and faculty need ongoing and continuous Internet and Email access. |
|Course Content (Body of knowledge) - |
- Long-term assets
- plant assets and their related expenses
- measuring the cost of plant assets
- capital expenditures and revenue expenditures
- depreciation methods
- asset impairments
- disposing plant assets
- natural resources
- depletion of natural resources
- intangible assets
- amortization of intangible assets
- research and development
- ethical issues in accounting for plant assets
- Current liabilities
- accounts payable
- short-term notes payable
- sales tax payable
- current segment of long-term notes payable
- accrued liabilities
- unearned revenue
- contingent liabilities
- remote liabilities
- accounting for payroll, gross pay, and net pay
- payroll withholding
- payroll records
- internal control over payroll
- Long-term liabilities
- long-term notes payable and mortgage payable
- bonds payable
- types of bonds
- bond prices
- present value of money
- present value of one payment or receipt
- present value of annuity
- present value of bonds payable
- interest expense on bonds using straight-line method
- premium and discount bond and their related amortization
- reporting liabilities on the balance sheet
- Stockholders' equity and reporting requirements
- classes of stocks
- issuing common and preferred stock
- paid-in capital
- retained earnings
- cash dividends
- market value, liquidation value, and book value of stock
- income taxes by corporations
- stock dividends, stock splits, and treasury stock
- retirement of stock
- restriction on retained earnings
- corporate income statement
- continuing operations
- discontinue operations and extraordinary items
- earnings per share
- reporting comprehensive income
- Measuring cash flow
- operating activities
- direct method
- indirect method
- investing activities
- financing activities
- noncash investing and financing activities
- free cash flow
- Financial statements and statement analysis
- horizontal and vertical analysis
- trend analysis
- common size analysis
- using ratios to make decisions
- profitability ratios
- liquidity ratios
- using ratios to make decisions
- red flags in financial statement analyses
|Methods of Evaluation - |
|The student will demonstrate proficiency by: |
- Class participation.
- Problem-Solving Assignments
- Assignments requiring the use of general ledger software, spreadsheet, word-processor, and presentation applications such as Quickbooks, MS Excel, MS Word, and MS Powerpoint, respectively
- Team projects
- Research assignments
- Case study analyses
- Oral and/or Written Presentations
|Representative Text(s) - |
|Horngren,Harrison Jr. & Oliver Accounting. 10th ed. Upper Saddle River, New Jersey: Pearson Publishing, 2014. |
Pasewark, William R. Understanding Corporate Annual Reports. 7th ed. Burr Ridge, Illinois: Irwin McGraw-Hill, 2010.
|Disciplines - |
|Method of Instruction - |
|Lecture, Discussion, Oral presentations, Electronic discussions/chat, group work, Excel and homework assignments. |
|Lab Content - |
|Not applicable. |
|Types and/or Examples of Required Reading, Writing and Outside of Class Assignments - |
- Reading of corporate annual reports
- Written Research Paper and/or Project
- Written Presentation
- Reading of internet articles and writing on accounting topics or accounting-related current events and/or careers