Principles of Financial Accounting

Catalog description

Three lecture. Financial accounting theory as applied to corporate form of business involving service and merchandising activities. Includes analysis and recording of business transactions and preparation of financial statements. Students will be able to: demonstrate problem solving techniques through accounting problem analysis; interpret different types of accounting statements; explain the purpose of the general ledger; prepare and explain the balance sheet, income statement, and statement of retained earnings; explain the accounting equation and the interaction of its elements; determine through t-account analysis where a transaction should be properly recorded; explain the components of an annual report and its significance to the stockholders; explain the difference between short-term and long-term assets; interpret appropriate asset “valuation” for inventory using different inventory systems; describe the methods of depreciation, identify the methods applicable to given situations; demonstrate through problem analysis the reasoning behind corporate issuance of long-term debt; calculate and apply the necessary tools and techniques for ratio analysis related to statement analysis; evaluate the statement of stockholders’ equity for purposes of comparison; explain how bonds are accounted for. Prerequisite(s): ACC 108 and MAT142 / MAT 140 or placement beyond math prerequisite