ACC1162 - Financial Accounting
4 Credit Hours
Student Level:
This course is open to students on the college level in either the Freshman or Sophomore year.
Catalog Description:
ACC1162 - Financial Accounting (4 hrs.)
The study of the accounting concepts and their role in communicating financial information regarding business transactions to users. Focus is on the analysis and the principles underlying the measurement of income and financial position, and how the information may be used to evaluate company performance.
KRSN:
ACC 1010
Course Classification:
Lecture
Pre-requisites:
Students must meet one of the following: high school Accounting, 21 ACT math score or assess into College Algebra on the placement assessment.
Co-requisites:
None
Controlling Purpose:
The purpose of this course is to develop a basic understanding of accounting theory, concepts, and procedures so that the student has developed sufficient skills for immediate entry into occupational field. It will also provide a foundation for further study for the student seeking a career in accounting or business administration. Additionally, students will be able to identify and demonstrate the effects of transactions and economic events on the major financial statements related to the learner outcomes.
Core Outcomes:
The learning outcomes and competencies detailed in this course meet, or exceed the learning outcomes and competencies specified by the Kansas Core Outcomes Project for this course, as sanctioned by the Kansas Board of Regents.
Learner Outcomes:
Upon completion of the course, the student will have a working knowledge of accounting and will be able to perform present value and future value computations, prepare bank reconciliations, conduct financial statement ratio analysis.
1. Revenue and expense recognition
2. Deferred and accrued revenue and expense recognition
3. Accounting for bad debts
4. Accounting for cash including the bank reconciliation
5. Inventory costing methods including FIFO, LIFO, and weighted average
6. Property, plant, and equipment asset acquisition, repair, depreciation, and disposal
7. Bonds payable including issuance and retirement
8. Treasury stock including acquisition and resale
9. Stock dividends and stock splits
Unit Outcomes for Criterion Based Evaluation:
The following outline defines the minimum core content not including the final examination period. Instructors may add other material as time allows.
UNIT 1: Uses of Accounting Information and Financial Statements
Outcomes: Upon completion of this unit, the students will be able to define, identify, and describe the financial components of accounting within a business organization.
- Define accounting, identify business goals and activities, describe the role of accounting in making informed decisions, and explain the importance of ethical financial reporting.
- Identify the users of accounting information.
- Explain the importance of business transactions, money measure and separate entity.
- Identify the three basic forms of the business organization.
- Define financial position and state the accounting equation.
- Identify and prepare the four basic financial statements. Explain how generally accepted accounting principles (GAAP) relate to financial statements.
UNIT 2: Analyzing and Recording Business Transactions
Outcomes: Students will know the differences in financial reporting and be able to perform and explain double entry accounting as it pertains to business transactions.
- Explain how the concepts of recognition, valuation, and classification apply to business transactions and why they are important factors in ethical financial reporting.
- Explain the double-entry system and the usefulness of T accounts in analyzing business transactions.
- Analyze and record transactions and their impact on the financial statements.
- Show how the timing of transactions affects cash flows and liquidity.
- Define the chart of accounts, record transactions in the general journal, and post transactions to the ledger.
UNIT 3: Adjusting Accounts for Financial Statements
Outcomes: Upon completion of this unit, the students will be able to define net income and how various financial statements pertain to analyzing a business including preparing adjusting entries.
- Define net income and explain the assumptions underlying income measurement and their ethical application.
- Explain the importance of periodic reporting and the role of accrual accounting.
- Prepare adjusting entries for deferred and accrued revenue and expense recognition.
- Explain and prepare the classified balance sheet.
- Prepare financial statements from an adjusted trail balance.
- Describe the accounting cycle and the role of closing entries in preparation of financial statements.
UNIT 4: Accounting for Merchandising Operations
Outcomes: Upon completion of this unit, the students will be able to identify issues relating to a merchandising business including transactions using perpetual and periodic inventory systems.
- Identify and describe merchandising activities and cost flows.
- Analyze and record transactions for merchandise purchases and sales using the perpetual inventory system.
- Prepare adjustments and close accounts for a merchandising company.
- Prepare a multi-step income statement and record merchandising transactions under the perpetual inventory system and the periodic inventory system.
UNIT 5: Inventories
Outcomes: Upon completion of this unit, the students will be able to explain management decisions related to inventory accounting and how income is measured based on this information.
- Explain the management decisions related to inventory accounting, evaluation of inventory level, and the effects of inventory misstatements on income measurement.
- Define inventory cost, contrast goods flow and cost flow and explain the lower-of-cost-or-market (LCM) rule.
- Calculate inventory cost under the periodic inventory system using various cost methods including FIFO, LIFO, and weighted-average.
- Calculate inventory cost under the perpetual inventory system using various cost methods including FIFO, LIFO, and weighted-average.
- Analyze the effects of inventory errors on current and future financial statements.
- Use the retail method and gross profit method to estimate the cost of ending inventory.
UNIT 6: Cash, Fraud and Internal Control
Outcomes: Upon completion of this unit, the students will be able to indemnity issues associated with internal control as it relates to common merchandising transactions and the petty cash system.
- Identify the management issues associated with internal control.
- Describe the components of internal control, control activities, and limitations of internal control.
- Define Cash equivalents, and explain methods of controlling cash, including bank reconciliations.
- Demonstrate the use of a simple imprest (petty cash) system.
- Identify the internal control roles of management and the auditor.
UNIT 7: Receivables
Outcomes: Upon completion of this unit, the students will be able to perform methods of controlling cash including a bank reconciliation as well as accounting for uncollectible accounts and promissory notes receivable.
- Define receivables, and explain the allowance method for valuation of receivables as an application of accrual accounting.
- Apply the Direct Write off Method for bad debts.
- Make common calculations for notes receivable.
- Show how to evaluate the level of receivables, and identify alternative means of financing receivables.
UNIT 8: Long Term Assets
Outcomes: Upon completion of this unit, the students will be able to successfully demonstrate the ability to identify and define long term assets, capital and revenue expenditures as well as issues relating to natural resources, depletion and acquiring and amortizing intangible assets.
- Identify types of long-term assets and explain management issues related to accounting for them.
- Distinguish between capital and revenue expenditures.
- Define depreciation and calculate using straight-line, production method and declining-balance.
- Identify issues related to accounting for natural resources, calculate depletion.
- Identify issues related to acquiring and amortizing intangible assets.
UNIT 9: Long Term Liabilities
Outcomes: Upon completion of this unit, the students will be able to successfully demonstrate the ability to identify management issues related to long-term debt, describe features of a bond issue and characteristics of bonds.
- Identify the management issues related to long-term debt.
- Describe the features of a bond issue and the major characteristics of bonds.
- Record bonds issued at face value and at a discount or premium.
- Use present values to determine the value of bonds.
- Amortize bond discounts and bond premiums using the straight-line and effective interest methods.
- Account for the retirement of bonds and the conversion of bonds into stock.
UNIT 10: Accounting for Corporations
Outcomes: Upon completion of this unit, the students will be able to successfully demonstrate the ability to identify management issues related to contributed capital, stockholders’ equity, preferred stock, issuance of stock for cash, other assets and treasury stock and components of a corporate income statement.
- Define the corporate form of business and its characteristics.
- Identify the components of stockholders’ equity and their characteristics.
- Account for the issuance of stock for cash and other assets.
- Account for treasury stock.
- Account for cash dividends, stock dividends and stock splits
- Calculate dividend yield and return on equity, and define stock options.
UNIT 11: Statement of Cash Flows
Outcomes: Upon completion of this unit, the students will be able to successfully demonstrate the ability to describe the principal purposes and uses of the statement of cash flows as well as analyze the statement of cash flows.
- Describe the principal purposes and uses of the statement of cash flows and identify its components.
- Analyze the statement of cash flows.
- Use the indirect method to determine cash flows from operating activities.
- Determine cash flows from investing activities and financing activities.
UNIT 12: Financial Statement Analysis
Outcomes: Upon completion of this unit, the students will be able to successfully demonstrate the ability to describe and apply issues in measuring financial performance in a variety of methods.
- Describe the objectives, standards of comparison, sources of information, and compensation issues in measuring financial performance.
- Apply horizontal analysis, trend analysis, vertical analysis, and ratio analysis to financial statements.
- Apply ratio analysis to financial statements in a comprehensive evaluation of a company’s financial performance.
Projects Required:
As assigned
Textbook:
Contact Bookstore for current textbook.
Materials/Equipment Required:
Calculator
Attendance Policy:
Students should adhere to the attendance policy outlined by the instructor in the course syllabus.
Grading Policy:
The grading policy will be outlined by the instructor in the course syllabus.
Maximum class size:
Based on classroom occupancy
Course Time Frame:
The U.S. Department of Education, Higher Learning Commission and the Kansas Board of Regents define credit hour and have specific regulations that the college must follow when developing, teaching and assessing the educational aspects of the college. A credit hour is an amount of work represented in intended learning outcomes and verified by evidence of student achievement that is an institutionally-established equivalency that reasonably approximates not less than one hour of classroom or direct faculty instruction and a minimum of two hours of out-of-class student work for approximately fifteen weeks for one semester hour of credit or an equivalent amount of work over a different amount of time. The number of semester hours of credit allowed for each distance education or blended hybrid courses shall be assigned by the college based on the amount of time needed to achieve the same course outcomes in a purely face-to-face format.
Refer to the following policies:
402.00 Academic Code of Conduct
263.00 Student Appeal of Course Grades
403.00 Student Code of Conduct
Disability Services Program:
Cowley College, in recognition of state and federal laws, will accommodate a student with a documented disability. If a student has a disability which may impact work in this class and which requires accommodations, contact the Disability Services Coordinator.
DISCLAIMER: THIS INFORMATION IS SUBJECT TO CHANGE. FOR THE OFFICIAL COURSE PROCEDURE CONTACT ACADEMIC AFFAIRS.
Revised 9/21/2023
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