ACC 105 - Financial Accounting

3 Credit Hours

This course is designed to provide a conceptual introduction to financial accounting topics for business and accounting majors. Emphasis in the course is placed on using financial accounting information for decision making. Accounting theory of all commonly used accounts such as cash, investments, receivables, inventory, fixed assets, payables, bonds, and stocks are studied, as are accounting systems and controls, financial statement preparation, and analysis. Students will be introduced to the accounting cycle through computerized software.

Prerequisite(s): IFT 110 (or concurrently), COM 050 or COM 051 or ESL 050. Strongly recommended: BUS 110

Semesters Offered: All

RATIONALE OF COURSE

Students need to become familiar with financial accounting information and reports in order to make financial decisions. Emphasis is placed on developing an understanding of generally accepted accounting principles and the financial statements used to evaluate the results of operations and the financial position of the various forms of business.

COURSE COMPETENCIES

Understand the environment of financial accounting.
Prepare general-purpose financial statements.
Record business transactions in the accounting records.
Understand the differences between cash-basis and accrual-basis accounting.
Understand the limitations of financial reporting.
Understand the accounting implications related to accounts receivable.
Recognize differences between the various inventory cost flows.
Understand issues related to revenue recognition and the control of cash.
Comprehend issues related to asset capitalization and depreciation.
Understand the issues related to the issuance of bonds and other long-term debt.
Differentiate the various types of stock.
Describe the different classifications for investment securities.
Describe the usefulness of the statement of cash flows.
Perform financial statement analysis.
Communicate results of financial accounting issues and analysis in a clear, concise written for manner.