SRJC Course Outlines

5/25/2024 1:15:37 AMBAD 1 Course Outline as of Fall 2001

Changed Course

Discipline and Nbr:  BAD 1Title:  FINANCIAL ACCTING  
Full Title:  Financial Accounting
Last Reviewed:2/11/2019

UnitsCourse Hours per Week Nbr of WeeksCourse Hours Total
Maximum4.00Lecture Scheduled4.0017.5 max.Lecture Scheduled70.00
Minimum4.00Lab Scheduled06 min.Lab Scheduled0
 Contact DHR0 Contact DHR0
 Contact Total4.00 Contact Total70.00
 Non-contact DHR0 Non-contact DHR Total0

 Total Out of Class Hours:  140.00Total Student Learning Hours: 210.00 

Title 5 Category:  AA Degree Applicable
Grading:  Grade or P/NP
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 

Catalog Description:
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This course introduces the student to the role of accounting in processing and reporting the effects of economic transactions.  It examines financial accounting from both the user and preparer perspectives.  It teaches how information is processed and reported by the accounting information system as well as how the reports are used by investors and creditors in making decisions.  The economic transactions are also analyzed by type of business activity: operating, investing, or financing and their impact on cash flows and profitability for both service and merchandising concerns. The ability to perform basic spreadsheet functions is highly recommended.


Recommended Preparation:
Eligibility for ENGL 100 or ESL 100, BAD 10.

Limits on Enrollment:

Schedule of Classes Information
Description: Untitled document
This course is an introduction to the preparation &  use of financial information in making investing and credit decisions.  The ability to perform basic spreadsheet functions is highly recommended.
(Grade or P/NP)

Recommended:Eligibility for ENGL 100 or ESL 100, BAD 10.
Limits on Enrollment:
Transfer Credit:CSU;UC.
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP


Associate Degree:Effective:Inactive:
CSU GE:Transfer Area Effective:Inactive:
IGETC:Transfer Area Effective:Inactive:
CSU Transfer:TransferableEffective:Fall 1981Inactive:
UC Transfer:TransferableEffective:Fall 1981Inactive:
 CID Descriptor: ACCT 110 Financial Accounting SRJC Equivalent Course(s): BAD1

Certificate/Major Applicable: Both Certificate and Major Applicable


Outcomes and Objectives:
At the conclusion of this course, the student should be able to:
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These objectives comply with the California Core Competency Model
developed by the Calif. Society of Certified Public Accountants' Committee
on Accounting Education.
This course will prepare the transfer degree and certificate students
for business or accounting programs.  Upon completion of the course the
student will be able to:
1.  explain how accounting  meets the information needs of investors,
   creditors, managers, regulatory agencies, and taxing authorities.
2.  explain the principles, procedures, and concepts underlying the
   primary financial statements.
3.  explain the uses and limitations of financial statements and related
   information disclosed in the annual report of Securities and Exchange
   Commission's reports in making decisions.
4.  explain how an accounting system is designed to meet the needs of
   specific businesses; and how to input transactions, process this input
   and prepare and interpret the financial statements.
5.  process the economic transactions for both a service and merchandising
   concern from the source document through the closing process.
6.  analyze the difference in accounting methods allowed under generally
   accepted accounting principles in the accounting for various assets,
   liabilities and equity transactions.
7.  classify the types of business transactions as being operating,
   investing or financing activities.
8.  compare the difference between accrual based measurements and cash
   flows from activities.
9.  demonstrate analytical, interpersonal, and communication skills in
   solving problems.

Topics and Scope
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1.  I. Introduction to Accounting
      A.  Users of accounting information and their needs
      B.  Financial statements as a means of communications
      C.  The objectives of financial reporting
      D.  Types of organizations and forms of business ownership
      E.  The nature of business activity: operating, investing, and
          financing activities
      F.  The accounting profession and ethical issues
2-3 II.Financial statements and the annual report
      A.  The accounting equation
      B.  Presentation of the Income Statement, Statements of Retained
          Earnings or Stockholders' Equity, classified Balance Sheet and
          Statement of Cash Flows
      C.  Financial Statement interpretation and analysis
      D.  Understanding elements of the annual report
      E.  The Securities and Exchange Commission's reports
      F.  Objective of Financial Reporting
      G.  Qualitative characteristics of accounting information
4-5 III. Processing accounting information for service entities
      A.  External and internal transactions
      B.  The accounting equation and transactional analysis
      C.  The double-entry system and use of "T" accounts
      D.  Use of general journal & general ledger to process information
      E.  Cash versus accrual accounting and the adjustment process
      F.  The adjusting process -- why and how
      G.  The closing process -- why and how
      H.  The accounting cycle
6-7 IV. Processing accounting information for merchandising entities
      A.  Additional accounts and recording merchandising concerns
       B.  Periodic vs perpetual inventory systems
       C.  Internal control for a merchandising concern
       D.  Inventory valuation and its impact on the financial statements
       E.  Lower of Cost or Market and its effect on inventory valuation
       F.  Estimating inventory value: The gross profit method and retail
           inventory method
       G.  Effect of inventories on cash flows
8-9 V.  Accounting for Assets
       A.  Monetary assets: cash, marketable securities and receivables
           1. Valuation issues and their impact on income measurement
              cash flows
           2. Liquidity issues
       B.  Operating Assets: property, plant & Equipment, natural
           resources, and intangibles
           1. Acquisition, depreciation and disposal of plant and equip.
           2. Subsequent costs: Revenue or capital expenditure
           3. The matching principle and cost allocation
           4. Allocation vs valuation of assets
           5. Tax implications of asset dispositions
           6. Acquisition and depletion of natural resources
           7. Acquisition and amortization  of intangible assests
10-11 VI. Accounting for Liabilities
         A. Current liabilites, contingent liabilities, and the time
            value of money
            1. Recording and disclosing accounts payable, notes payable,
               currently maturing protions of long-term debt and accrued
               deferred liabilities
            2. Balance sheet and footnote disclosures
            3. Liquidity and cash flow issues
         B. Long-term liabilities
            1. Accounting for bonds
            2. Other long-term liabilities; leases, deferred taxes,
               pensions and other postretirement benefits
            3. Balance sheet and footnote disclosures
            4. Impact on the Statement of Cash flows
12-13 VII. Stockholders' Equity and Financing Operations
          A. Components of stockholders' equity; contributed capital and
             retained earnings
          B. Types of stock and their characteristics
          C. Issuance of stock for cash, noncash consideration and by
          D. Treasury stock transactions and retirement of shares
          E. Retained earnings and dividends: Types of dividends and
          F. Stock splits
          G. Valuation  issues; book value versus market value
          H. Effect of stockholders' equity changes on cash flows
14  VIII. The Statement of Cash Flows
         A. Cash versus accrual accounting reviewed
         B. Purpose and reporting requirements for the Statement of Cash
         C. Direct and indirect methods of computing cash flows from
         D. Noncash investing and financing activities
         E. Preparing the Statement of Cash Flows
         F. Use of cash flow information
15-16 IX. Financial Statement Analysis
         A. Horizontal and trend analysis
         B. Vertical analysis
         C. Common-size statements
         D. Ratio  analysis:
            1. Liquidity analysis
            2. Solvency analysis
            3. Projectability Analysis
         E. Limitations of Financial Statements & Analysis

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Will include text and other readings, written homework involving problem
solving and calculational skills, and group case research, analysis, and

Methods of Evaluation/Basis of Grade.
Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.Writing
25 - 30%
Written homework, Essay exams, GROUP CASE REPORTS
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.Problem Solving
20 - 25%
Homework problems, Exams, GROUP CASE PROBLEMS
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.Skill Demonstrations
20 - 30%
Exams: All forms of formal testing, other than skill performance exams.Exams
10 - 30%
Multiple choice, True/false, Matching items, Completion, SHORT ANSWER
Other: Includes any assessment tools that do not logically fit into the above categories.Other Category
5 - 10%

Representative Textbooks and Materials:
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Financial Accounting, Libby, Libby and Short by Irwin McGraw-Hill
Publishing, 3rd Edition, copyright 2000.

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