Upon completion of the course, students will be able to:
1. Compute and record adjustments for a merchandising firm.
2. Prepare classified income statements and balance sheets.
3. Calculate and record adjusting, closing, and reversing entries for a merchandising firm.
4. Analyze and compare the development and use of various Generally Accepted Accounting Principles (GAAP), underlying assumptions, and modifying constraints.
5. Analyze accounts receivable; estimate and journalize uncollectible accounts under various assumptions.
6. Analyze and account for notes payable and receivable including the associated interest expense or income.
7. Compute, compare, and contrast inventory costing and valuation methods and internal controls.
8. Analyze and prepare journal entries for acquisition, depreciation/depletion and disposition of property, plant, and equipment (PP&E); account for intangible assets and impairment of PP&E.
9. Journalize entries for the issuance of par value and no-par value.
10. Illustrate the advantages and disadvantages of the corporate form of business organization.
11. Compare and contrast alternate types of corporations/business entities.
12. Complete a corporate statement of retained earnings and a balance sheet, including the following types of accounts: retained earnings, stock dividends distributable, dividends payable, and income tax payable.
13. Perform horizontal and vertical analysis based upon comparative income statement and balance sheet data.
14. Translate income statement data into trend percentages.
15. Compute, compare, and evaluate various financial ratios.
16. Prepare and analyze a Statement of Cash Flows for a corporation.
1. Adjusting Entries for a Merchandising Business
A. Adjustments for merchandise inventory
B. Adjustments for unearned revenue
C. Data for the adjustments
D. Adjusting entries
E. Accruals and deferrals
F. Reversing entries
2. Financial Statements and Closing Entries for a Merchandising Firm
A. The income statement
B. The statement of owner's equity and the balance sheet
C. Balance sheet classifications
D. Closing entries
3. Accounting Principles and Reporting Standards
A. Need for and development of Generally Accepted Accounting Principles (GAAP)
B. Users and uses of financial reports
C. Qualitative characteristics
D. Underlying assumptions and modifying constraints
E. General principles and impact of GAAP
4. Accounts Receivable and Uncollectible Accounts
A. Allowance method
B. Direct charge-off method
C. Collecting accounts previously written off
D. Accounting for other receivables and bad debt losses
E. Internal control of Accounts Receivable
5. Notes Payable and Receivable
A. Negotiable instruments
B. Accounting for notes payable
C. Accounting for notes receivable
D. Drafts and acceptances
E. Internal controls
6. Accounting for Merchandise Inventory
A. Inventory valuation/costing methods
B. FIFO (first-in, first-out), LIFO (last-in, first-out), and Weighted Average methods
C. Compare and contrast above methods
D. Lower of Cost or Market Rule
E. Inventory estimation procedures
F. Internal controls
7. Property, Plant, and Equipment (PP&E)
A. Acquisition and classification
B. Depreciation -- straight line and accelerated methods
C. Federal income tax "Cost Recovery" method (MACRS)
D. Disposition of assets
F. Impairment of PP&E
G. Intangible Assets
H. Internal controls
8. Corporations: Organization and Capital Stock
A. Definition of a corporation
B. Advantages of a corporation
C. Disadvantages of a corporation
D. Forming a corporation
E. Structure of a corporation
F. Capital stock of a corporation
G. Issuing stock of a corporation
H. Alternative entities
1. Chapter S Corporations
2. Limited Liability Companies (LLC)
3. Limited Liability Partnerships (LLP)
9. Corporations: taxes and dividends
A. Procedure for recording and reporting income taxes
B. Declaration and payments of dividends
C. Preferred stock dividends -- cumulative and noncumulative
D. Stock splits and stock dividends
F. Statement of retained earnings and balance sheet
10. Analyzing and Interpreting Financial Statements
A. Vertical analysis
B. Horizontal analysis
C. Trend analysis
D. Comparison with industry averages
E. Selected ratios: return on sales, current ratio, working capital, earnings per share, and others.
11. Statement of Cash Flows
A. Importance of Statement of Cash Flows
B. Cash defined
C. Sources and uses of cash from operations
D. Cash flows from investing activities
E. Cash flows from financing activities
F. Direct method versus indirect method
G. Preparing the Statement of Cash Flows