Introduction to Financial Accounting (2024-2025)

ACCT71100(101)

Course Description

This course in financial accounting reviews the accounting cycle and the preparation of financial statements.Topics include accounting for merchandising activities,accounting for cash,temporary investments and accounts receivable,inventories and cost of goods sold,capital assets,current and long-term liabilities,partnership accounting and accounting for corporations,the cash flow statement

Program Outcomes Supported

1241C-BBA-Accounting, Audit & Info Tech(2401)-Level 1

PLO-1:Prepare financial statements using domestic or international generally accepted accounting principles.

PLO-3:Assess operating and financial policies that are legally compliant,adhere to accounting and control standards,and are ethically,culturally and economically appropriate.

PLO-4:Plan effective external,internal,or information systems audits.

1551C-BA  Commerce  Financial  Services  (2401)-Level  1

PLO-1:Integrate advanced concepts from the major disciplines related to,and supporting,the financial services industry including accounting,marketing,economics,and information technology in order to propose financial solutions.

Course Outcomes

Successful completion of this course will enable the student to:

1.Prepare financial statements for a corporation.

2.Identify and record accounting transactions for the accounting cycle and classifications.

3.Analyze and record accounting transactions based on relevant facts and information for assets,liabilities,equity, revenues and expenses.

4.Explain how the accounting principles apply to the financial statements. 5.Explain the purpose and characteristics of a system for internal control.  6.Explain how ethics apply to business situatons.

7.IHlustrate how ratios and trend analysisare used to analyze financial statements.

Successful completion of the following units will enable the student to:

1.0     Financial Statements and Business Decisions

1.1     Recognize the information conveyed in each of the four basic financial statements and how it is used by decision makers.

1.2     Identify the role of International Financial Reporting Standards(IFRS)in determining the content of financial statements.

1.3     Identify the roles of managers and auditors in the accounting communication process and discuss ethical conduct expectations

1.4     Identify traditional and emerging services,and various career opportunities for professional accountants

2.0    Investing and Financing Decisions and the Statement of Financial Position

2.1 Identify the objectives of financial reporting,the qualitative characteristics of accounting information,and the related key accounting assumptions and principles.

2.2    Define the elementsof a classified statement of financial position.

2.3     Identify what constitutes a business transaction,and recognize common account titles used in business.

2.4    Apply transaction analysis to simple business transactions using the accounting equation.

2.5    Determine the impact of business transactions by using journal entries and t-accounts.

2.6    Prepare a trial balance and classified statement of financial position.

3.0     Operating Decisions and the Statement of Earnings

3.1     Describe the typical business operating cycle and explain the necessity of the periodicity assumption.

3.2 Explain how business activities affect the elements of the statement of earnings

3.3     Explain the accrual basis of accounting and apply the revenue principle and the matching process to measure net earnings.

3.4    Apply transaction analysis to examine and record the effects of operating activities on the financial statements.

3.5    Prepare a classified statement of earnings.

3.6     Compute and interpret relevant ratios

4.0  Adjustments,Financial  Statements,and  the  Quality  of  Earnings

4.1    Explain the purpose of adjustments and analyze the adjustments necessary at the end ofthe period.

4.2     Prepare a statement of earnings with earnings per share,a statement of changes in equity,and a statement of financial position.

4.3     Explain the period end closing process.

4.4    Compute and interpret relevant ratios

5.0     Reporting and Interpreting Cash Flows

5.1    Classify cash flow items into cash flows from operating,investing and financing activities.

5.2    Review the format of the statement of cash flows and additional cash flow disclosures.

6.0    Reporting  and  Interpreting  Sales  Revenue,Receivables,and  Cash

6.1    Apply the revenue principle to determine the accepted time to record sales revenue in retailers,wholesalers, manufacturers and service companies.

6.2 Analyze the impact of credit cards sales,sales discounts and sales returns.

6.3    Compute and interpret gross profit percentage.

6.4    Estimate and evaluate the effects of bad debts on financial statements.

6.5    Report,control,and  safeguard  cash.

6.6    Compute and interpret relevant ratios

7.0     Reporting and Interpreting Cost of Sales and Inventory

7.1     Apply the cost principle to identify the amounts that should be included in inventory,and determine cost of sales.

7.2 Decide when the use of different inventory costing methods is beneficial to the company

7.3     Report inventory at the lower of coast and net realizable value.

7.4     Describe methods for controling inventory and analyze the effect of inventory errors on financial statements.

7.5     Compute and interpret relevant ratios

8.0    Reporting  and  Interpreting  Property,Plant,and  Equipment

8.1     Define,classify and explain the nature of long-lived assets.

8.2    Apply the cost principle to measure the acquisition and maintenance of property,plant,and equipment.

8.3 Apply various depreciation methods as assets are held and used over time.

8.4     Explain the effect of asset impairment on the financial statements.

8.5    Analyze the disposal of property,plant,and equipment.

8.6 Apply  measurement and  reporting  concepts for natural  resources,intangible assets,and goodwil

9.0     Reporting and Interpreting Current Liabilities

9.1     Define,measure,and  report  current  liabilities.

9.2     Report notes payable and explain the time value of money.

9.3     Report contingent liabilities and commitments.

9.4    Compute and interpret relevant ratios

10.0    Reporting and Interpreting Non-current Liabilities

10.1    Describe the characteristicsof long-term notes and bonds payable.

10.2    Report notes payable and related interest expense.

10.3    Report bonds payable and interest expense for bonds sold at par,at a discount,or at a premium.

10.4     Describe other non-current liabilities.

10.5    Compute and interpret relevant ratios

11.0    Reporting and  Interpreting Shareholders'Equity

11.1    Explain the role of share capital in the capital structure of a corporation.

11.2 Analyze the earnings per share ratio.

11.3    Describe the characteristics of common shares,and analyze transactions affecting common shares.

11.4    Discuss  dividends,and analyze  related transactions.

11.5    Discuss the purpose of stock dividends,stock splits,and report transactions.

11.6 Describe the characteristics ofpreferred shares,and analyze transactions affecting preferred shares.

11.7    Measure and report changes in owners/shareholders'equity for corporations,partnerships and sole proprietorships.

12.0    Communicating Accounting Information and Analyzing Financial Statements

12.1    Recognize the roles of people involved in the accounting communication process.

12.2    Explain how a company's business strategy affects financial analysis.

12.3    Discuss how analysts use financial statements

12.4    Compute and interpret various relevant ratios.

Evaluation The minimum passing grade for this course is 60(C). In orderto successfully complete this course,the student is required to meet the following evaluation criteria:
Description 1.Summative Exam(s)	Quantity Percentage 40.00%
2.Mid-Term Exam(s)	25.00%
3.Assignment(s)-Written	15.00%
4.Publisher's Quiz(zes)	10.00 %
5.Simulation	1 10.00% 100.00%

Evaluation  Mapping

1.Prepare financial statements for a corporation.

Summative  Exam(s)(40.00%)

Mid-Term  Exam(s)(25.00%)

Assignment(s)-Written   (15.00%)

Publisher's  Quiz(zes)(10.00%)

Simulation(10.00%),Quantity:1

2.Identify and record accounting transactions for the accounting cycle and classifications.

Summative  Exam(s)(40.00%)

Mid-Term  Exam(s)(25.00%)

Assignment(s)-Written(15.00%)

Publisher's  Quiz(zes)(10.00%)

Simulation(10.00%),Quantity:1

3.Analyze and record accounting transactions based on relevant facts and information for assets,liabilities,equity,revenues and expenses.

Summative  Exam(s)(40.00%)

Mid-Term  Exam(s)(25.00%)

Assignment(s)-Written(15.00%)

Publisher's  Quiz(zes)(10.00%)

Simulation(10.00%),Quantity:1

4.Explain how the accounting principles apply to the financial statements.

Summative  Exam(s)(40.00%)

Mid-Term  Exam(s)(25.00%)

Assignment(s)-Written(15.00%)

Publisher's  Quiz(zes)(10.00%)

Simulation(10.00%),Quantity:1

5.Explain the purpose and characteristics of a system for internal control.

Summative   Exam(s)(40.00%)

Assignment(s)-Written   (15.00%)

Publisher's  Quiz(zes)(10.00%)

6.Explain how ethics apply to business situations.

Summative  Exam(s)(40.00%)

Assignment(s)-Written(15.00%)

Publisher's  Quiz(zes)(10.00%)

7.IIlustrate how ratios and trend analysis are used to analyze financial statements.

Summative  Exam(s)(40.00%)

Assignment(s)-Written(15.00%)

Publisher's  Quiz(zes)(10.00%)