ACC 131 - Principles of Accounting I

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

1. Explain the role of accounting in business
   1. Identify the users and uses of accounting
   2. Understand why ethics is a fundamental business concept
   3. Explain generally accepted accounting principles and the cost principle
   4. Explain the monetary unit assumption and the economic entity assumption
   5. State the accounting equation, and define assets, liabilities, and owner’s equity
   6. Analyze the effects of business transactions on the accounting equation
2. Analyze transactions
   1. Explain what an account is and how it helps in the recording process
   2. Define debits and credits and explain their use in recording business transactions
   3. Identify the basic steps in the recording process
   4. Prepare journal entries
   5. Apply the posting process to the ledger
   6. Explain what posting is and how it helps in the recording process
   7. Prepare a trial balance and explain its purposes
3. Explain the relationship of the matching concept of accrual accounting
   1. Define the time period assumption
   2. Explain the accrual basis of accounting
   3. Identify the reasons for adjusting entries
   4. Classify the major types of adjusting entries
   5. Prepare adjusting entries
   6. Describe the nature and purpose of an adjusted trial balance
4. Interpret the accounting cycle
   1. Explain the process of closing the books
   2. Journalize and post closing entries
   3. Describe the content and purpose of a post-closing trial balance
   4. State the required steps in the accounting cycle
   5. Explain the approaches to preparing correcting entries
   6. Identify the sections of a classified balance sheet
5. Distinguish between the accounts for a merchandising company and a service company
   1. Identify the differences between service and merchandising companies
   2. Record purchases under a perpetual inventory system
   3. Journalize sales revenues under a perpetual inventory system
   4. Follow the steps in the accounting cycle for a merchandising company
   5. Distinguish between a multiple-step and a single-step income statement
   6. Explain the computation and importance of gross profit
   7. Determine cost of goods sold under a perpetual system
6. Account for inventory according to generally accepted accounting principles
   1. Describe the steps in determining inventory quantities
   2. Clarify the accounting for inventories and apply the inventory cost flow methods
   3. Explain the financial effects of the inventory cost flow assumptions
   4. Explain the lower-of-cost-or-market basis of accounting for inventories
   5. Indicate the effects of inventory errors on the financial statements
   6. Compute and interpret the inventory turnover ratio
   7. Discuss the inventory valuation changes from GAAP to IFRS
7. Assess the importance of internal control
   1. Define internal control
   2. Identify the principles of internal control
   3. Explain the applications of internal control principles to cash receipts
   4. Apply internal control principles to cash disbursements
   5. Describe the operation of a petty cash fund
   6. Indicate the control features of a bank account
   7. Prepare a bank reconciliation
   8. Explain the reporting of cash
8. Demonstrate accounting for accounts receivable under accrual accounting principles
   1. Identify the different types of receivables
   2. Explain how companies recognize accounts receivable
   3. Distinguish between the methods and bases companies use to value accounts receivable
   4. Describe the entries to record the disposition of accounts receivable
   5. Compute the maturity date of and interest on notes receivable
   6. Explain how companies recognize notes receivable
   7. Account for the valuation of notes receivable
   8. Prepare the entries to record the disposition of notes receivable
   9. Explain the statement presentation and analysis of receivables
9. Account for long-term assets
   1. Describe how the cost principle applies to plant assets
   2. Explain the concept of depreciation
   3. Compute periodic depreciation using different methods
   4. Describe the procedure for revising periodic depreciation
   5. Distinguish between revenue and capital expenditures
   6. Prepare the entries for revenue and capital expenditures
   7. Account for the disposal of a plant asset
   8. Compute periodic depletion of natural resources
   9. Analyze the basic issues related to accounting for intangible assets
   10. Report plant assets, natural resources, and intangible assets according to GAAP
   11. Compare the reporting of long-term assets under GAAP to IFRS
10. Account for liabilities
    1. Explain a current liability
    2. Identify the major types of current liabilities
    3. Describe the accounting for notes payable
    4. Explain the accounting for other current liabilities
    5. Explain the financial statement presentation and analysis of current liabilities
    6. Describe the accounting and disclosure requirements for contingent liabilities under GAAP versus IFRS
11. Identify the major characteristics of a corporation
    1. Define corporation
    2. Differentiate between paid-in capital/contributed capital and retained earnings
    3. Record the issuance of common stock
    4. Explain the accounting for treasury stock
    5. Differentiate preferred stock from common stock
    6. Prepare a stockholders? equity section
    7. Compute book value per share
12. Interpret the effect of business transactions for a corporation
    1. Journalize the entries for dividends
    2. Identify the items reported in a retained earnings statement
    3. Prepare a comprehensive stockholders? equity section
    4. Analyze the stockholders? equity section of a balance sheet
    5. Describe the form and content of corporate income statements
    6. Calculate earnings per share