ACC 231 - Intermediate Accounting I

Credits: 4
Lecture Hours: 4
Lab Hours: 0
Practicum Hours: 0
Work Experience: 0
Course Type: Open

Emphasis on theory, standards and principles and the “why” of accounting. The framework goes beyond the procedural level to the conceptual level. Topics include preparation of income statements, balance sheets and related footnotes. Applicable FASB pronouncements are presented.
Prerequisite: Successful completion of ACC 132 with a grade of “C” or above
Competencies

Explain the development of accounting standards in conjunction with the changing international environment of financial accounting
1. Define accounting
2. Analyze internaional accounting’s essential characteristics
3. Identify the major financial statements and other means of financial reporting
4. Describe the environment of financial accounting
5. Describe the international enviroment of financial accounting
6. Justify the need for accounting standards
7. Justify the need for international accounting standards
8. Appraise the international and national policy-setting bodies and the standard-setting process
9. Summarize the impact of user groups on the standard-setting process
10. Assess issues related to ethics and financial accounting
11. Summarize the impact of international and national user groups on the standaed setting process
Interpret the conceptual framework underlying financial accounting
1. Evaluate the usefulness of an international conceptual framework
2. Describe the FASB’s process in constructing a conceptual framework
3. Explain the procedures of the international accounting standards board (IASB)
4. Identify the qualitative characteristics of accounting information
5. Review the objectives of international financial resporting
6. Justify the basic assumptions of accounting
7. Explain the application of the basic principles of accounting
8. Assess the impact that constraints have on reporting accounting information
Demonstrate basic accounting procedures
1. Relate basic accounting terminology
2. Explain double entry rules
3. List steps in the accounting cycle
4. Record transactions in journals
5. Explain the posting process to controlling and subsidiary ledgers
6. Prepare a trial balance
7. Give the reasons for adjusting entries
8. Explain how inventory accounts are adjusted at year-end
9. Demonstrate closing entries
10. Distinguish adjusting entries that may be reversed
11. Prepare a work sheet
12. Contrast cash-basis accounting with accrual accounting
13. Outline the purpose of subsidiary ledgers
14. Design an accounting system
Support statements of incomes and retained earnings
1. Appraise the uses and limitations of an income statement
2. Contrast the capital maintenance and transaction approach
3. Prepare a single-step income statement
4. Produce a multiple-step income statement
5. Illustrate how irregular items are reported
6. Measure intraperiod tax allocation
7. Report earnings per share information appropriately
8. Develop a statement of retained earnings
9. Compile prior period adjustments
10. Measure comprehensive income
11. Account for discontinued operations
Assess balance sheets and statements of cash flow
1. Appraise the uses and limitations of a balance sheet
2. Organize the major classifications of the balance sheet
3. Generate a classified balance sheet using the report and account forms
4. Identify balance sheet information requiring supplemental disclosure
5. Relate major disclosure techniques for the balance sheet
6. Defend the purpose of the statement of cash flows
7. Develop the content of the statement of cash flows
8. Prepare a statement of cash flows
Defend the statement of cash flows
1. Describe the evolution and purpose of the statement of cash flows
2. Identify the major classifications of cash flows
3. Differentiate between net income and net cash flows from operating activities
4. Contrast the direct and indirect methods of calculating operating cash flow
5. Discriminate between net cash flows from investing and financing activities
6. Prepare a statement of cash flows
7. Describe sources of information for a statement of cash flows
8. Identify special problems in preparing a statement of cash flows
Measure the time value of money
1. Judge accounting topics where time value of money is used
2. Distinguish between simple and compound interest
3. Use appropriate compound interest tables
4. Identify variables fundamental to solving interest problems
5. Solve future and present value of 1 problems
6. Solve future amount of ordinary and annuity due problems
7. Solve present value of ordinary and annuity due problems
8. Discriminate among an ordinary annuity, annuities due and a deferred annuities
Assess cash and receivables
1. Identify and distinguish cash items
2. Illustrate common techniques employed to control cash
3. Indicate how cash and related items are reported
4. Define receivables and identify the different types of receivables
5. Explain accounting issues related to accounts receivable
6. Distinguish between interest bearing and noninterest bearing notes receivable
7. Demonstrate the accounting procedures for factoring notes receivable
8. Reconcile bank balances and book balances
Evaluate inventories
1. Categorize major classifications of inventory
2. Discriminate between the periodic and perpetual inventory systems
3. Calculate the effects of inventory errors on the financial statements
4. Assemble the items that should be included as inventory cost
5. Contrast product costs and period costs
6. Describe the flow assumptions used in accounting for inventories
7. Compare the flow assumptions used in accounting for inventories
8. Demonstrate the effect of LIFO liquidations
9. Outline the dollar-value LIFO method
10. Contrast the major advantages and disadvantages of LIFO
11. Assess the reasons why a given inventory method is selected
12. Explain the lower of cost or market value
13. Apply the lower of cost or market rule.
14. Assess inventories valued at net realizable value
15. Judge when the relative sales value method is used to value inventories
16. Identify when inventories are valued at standard costs
17. Justify accounting issues related to purchase commitments
18. Determine ending inventory by applying the gross profit method
19. Determine ending inventory by applying the conventional retail method
20. Determine ending inventory by the LIFO retail method
Account for long-term assets
1. Point out the major characteristics of property, plant and equipment
2. Calculate the costs included in the initial valuation of long-term assets
3. Assess the accounting problems associated with overhead application
4. Appraise the accounting problems associated with interest capitalization
5. Relate the various means of acquiring and valuing plant assets
6. Demonstrate the accounting treatment for costs subsequently to acquisition
7. Illustrate the accounting treatment for the disposal of long-term assets
Allocate the costs of long-term assets
1. Defend the concept of depreciation
2. Identify the factors involved in the depreciation process
3. Compare different methods of depreciation
4. Explain special depreciation methods
5. Support the selection of different depreciation methods
6. Describe income tax methods of depreciation
7. Discuss the accounting issues related to asset impairment
8. Illustrate financial statement disclosures for property, plant and equipment
9. Assess the accounting procedures for depletion of natural resources
10. Demonstrate financial statement disclosures for natural resources
Discriminate among intangible assets
1. Relate the characteristics of intangible assets
2. Explain the procedure for valuing and amortizing intangible assets
3. Identify the types of specifically identifiable intangible assets
4. Outline the conceptual issues related to goodwill
5. Demonstrate the accounting procedures for valuing and recording good will
6. Point out the conceptual issues related to research and development costs
7. Describe the accounting procedures for research and development costs