ACCT 150 Financial Accounting – 3 hour credits – This course introduces accounting concepts, principles, and procedures with an emphasis on financial accounting statements for corporations and accounting processes for a service and merchandise enterprise. The course focuses on elements of the balance sheet and income statement including current, plant and intangible assets, deferrals, accruals, current and long-term liabilities, and stock transactions. In addition, ethics, accounting systems and control, short and long-term securities are also studied.
LEARNING OUTCOMES:
After successfully completing the course students will be able to:
- Describe the qualities of information contained in the financial statements and distinguish between accrual basis accounting and cash basis accounting.
- Discuss the nature of business operations and list the characteristics of the three general forms of ownership structure.
- Define the elements of the financial statements.
- Prepare financial statements from a given set of transactions that include accruals and deferrals.
- List and discuss the steps in the basic accounting cycle.
- Account for long-term assets including acquisition, depreciation, and disposal of long-term assets.
- Account for inventory and payables including how to value inventory using cost flow assumptions and how to determine the effect of inventory errors on the financial statements.
- Account for sales, cash and accounts receivable including the preparation of a bank reconciliation and accounting for uncollectible accounts.
- Record and report transactions associated with long-term debt including the application of present value and future value concepts.
- Account for transactions associated with equity financing including accounting for stock issuances, treasury stock, dividends, and retained earnings.
- Analyze and prepare the statement of cash flows using both the direct and indirect methods.
- Use horizontal analysis, vertical analysis, and ratio analysis to evaluate a company’s performance.