SRJC Course Outlines

12/9/2018 3:30:33 PMBAD 1 Course Outline as of Fall 2015

Changed Course
CATALOG INFORMATION

Discipline and Nbr:  BAD 1Title:  FINANCIAL ACCOUNTING  
Full Title:  Financial Accounting
Last Reviewed:5/13/2013

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: 
Formerly: 

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. The course objectives comply with the California Core Competency Model developed by the California Society of Certified Public Accountants' Committee on Accounting Education. This course will prepare the transfer degree and/or certificate student for business or accounting programs.

Prerequisites/Corequisites:


Recommended Preparation:
Eligibility for ENGL 100 or ESL 100

Limits on Enrollment:

Schedule of Classes Information
Description: Untitled document
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. The course objectives comply with the California Core Competency Model developed by the California Society of Certified Public Accountants' Committee on Accounting Education. This course will prepare the transfer degree and/or certificate student for business or accounting programs.
(Grade or P/NP)

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

ARTICULATION, MAJOR, and CERTIFICATION INFORMATION

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

Certificate/Major Applicable: Both Certificate and Major Applicable



COURSE CONTENT

Student Learning Outcomes:
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Students will be able to:
1. Complete the steps in the accounting cycle and apply generally accepted accounting principles to determine how transactions are recorded and reported.
2. Analyze, record, summarize, and report the effects of transactions in financial accounting and interpret the accounting information for internal or external decision making purposes.
3. Use computer technology applications such as Word, Excel, and PowerPoint to complete assignments.
4. Demonstrate critical thinking skills, analytical ability, interpersonal and collaborative skills, and the ability to write business reports.

Objectives: Untitled document
Upon completion of the course students 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 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.
4. Determine the economic transactions for both a service and merchandising concern from the source document through the closing process.
5. Analyze the difference in accounting methods allowed under generally accepted accounting principles (GAAP) in the accounting for various assets, liabilities and equity transactions.
6. Categorize the types of business transactions as being operating, investing or financing activities.
7. Compare the difference between accrual based measurements and cash flows from activities.
8. List the various ratio and percentage analysis tests along with different financial statements used by people to make better economic decisions.
9. Make ethical choices displaying honesty and integrity to avoid any legal action protecting your reputation as well as the company's reputation.
10.Demonstrate analytical, interpersonal, and communication skills in solving problems.

Topics and Scope
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I. Introduction to Accounting
    A. Users of accounting information and their needs
    B. Financial statements as a means of communications for internal and external decision makers
    C. The objectives of financial reporting using GAAP accounting principles, International Financial Reporting Standards (IFRS), and the role of Financial Accounting Standards Board (FASB)
    D. The accounting profession including Certified Public Accountant (CPA) license as well as the field of auditing
    E. Importance of ethics, reputation, and legal liability in the accounting field.
    F. Develop critical thinking skills, analytical ability, interpersonal and collaborative skills, and the ability to write business reports.
II. Financial Statements Providing Information for Investing and Financing Decisions
    A. The accounting equation
    B. Preparation of financial statements
    C. Financial statement interpretation and analysis
    D. Objective of financial reporting
    E. Qualitative characteristics of accounting information
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 and 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
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
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 and equipment, natural resources, and intangibles
         1. Acquisition, depreciation and disposal of plant and equipment
         2. Subsequent costs: revenue or capital expenditure
         3. The matching principle and cost allocation
         4. Allocation versus valuation of assets
         5. Tax implications of asset dispositions
         6. Acquisition and depletion of natural resources
         7. Acquisition and amortization of intangible assets
VI. Accounting for Liabilities
    A. Current liabilities
         1. Current ratio
         2. Accounts payable turnover ratio
         3. Notes payable
         4. Time value of money
    B. Contingent liabilities
    C. Working capital
    D. Present value concepts
VII. Accounting for Long-term Liabilities
    A. Bonds
         1. Reporting payables and interest expense for sale at par, discount, and premium
         2. Debt-to-equity ratio analysis
         3. Early retirement
    B. Other long-term liabilities: leases, deferred taxes, pensions, and other post retirement benefits
    C. Balance sheet and footnote disclosures
    D. Impact on the statement of cash flows
VIII. 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 subscription
    D. Treasury stock transactions and retirement of shares
    E. Retained earnings and dividends: Types of dividends and apportionment
    F. Stock splits
    G. Valuation issues; book value versus market value
    H. Effect of stockholders' equity changes on cash flows
IX. The Statement of Cash Flows
    A. Cash vs. accrual accounting
    B. Purpose and reporting requirements for the statement of cash flows
    C. Direct and indirect methods of computing cash flows from operations
    D. Noncash investing and financing activities
    E. Preparing the statement of cash flows
    F. Use of cash flow information
X. Financial Statement Analysis
    A. Horizontal and trend analysis
    B. Vertical analysis
    C. Common-size statements
    D. Ratio analysis:
         1. Profitability analysis
         2. Liquidity analysis
         3. Solvency analysis
         4. Market tests analysis
    E. Limitations of financial statements and analysis
    F. Upholding personal ethical standards and integrity to prevent harm to firms or self when preparing confidential financial statements and reports

Assignments:
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1. Reading of text and other written material (20 to 30 pages per week)
2. Homework involving problem solving and calculational skills
3. Group case research, report, analysis, and presentation
4. 3 to 5  exams, mid-term(s) and final exam

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
10 - 30%
Group case reports
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.Problem Solving
10 - 25%
Homework problems and group case analysis
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.Skill Demonstrations
10 - 30%
Homework problems, group case assignments
Exams: All forms of formal testing, other than skill performance exams.Exams
30 - 60%
3 to 5 exams, mid-term(s) and final exam
Other: Includes any assessment tools that do not logically fit into the above categories.Other Category
5 - 10%
Participation and group case presentation


Representative Textbooks:
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Financial Accounting, by Libby, Libby and Short; Irwin McGraw-Hill Publishing, 8th Edition, copyright 2013.

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