Course Category

Session 1

Introduction to Financial Accounting and Core Concepts

• Explain how accounting information assists in making decisions
• Describe the components of the balance sheet
• Analyze business transactions and relate them to changes in the balance sheet
• Explain how accountants measure income
• Determine when a company should record revenue from a sale
• Use the concept of matching to record the expenses for a period
• Prepare an income statement and show how it is related to a balance sheet
• Account for cash dividends and prepare a statement of retained earnings
• Explain how the following concepts affect financial statements: entity, reliability, going concern, materiality, cost-benefit and stable monetary unit.

Session 2

Recording Transactions and Financial Statements

• Use double-entry accounting
• Analyze and journalize transactions
• Post journal entries to the ledgers
• Prepare and use a trial balance
• Close revenue and expense accounts and update retained earnings
• Understand the role of adjustments in accrual accounting
• Make adjustments for the expiration or consumption of assets
• Make adjustments for the recognition of unearned revenues
• Make adjustments for the accrual of unrecorded expenses
• Make adjustments for the accrual of unrecorded revenues
• Prepare a classified balance sheet and use it to assess short-term liquidity
• Prepare an income statement

Session 3

Statement of Cash Flows

• Identify the purposes of the statement of cash flows
• Classify activities affecting cash as operating, investing or financing activities
• Compute and interpret cash flows from financing activities
• Compute and interpret cash flows from investing activities
• Use the indirect method to explain the difference between net income and net cash provided by (used for) operating activities
• Understand why we add depreciation to net income when using the indirect method for computing cash flow from operating activities

Session 4

Accounting for Sales & Accounts Receivable

• Recognize revenue items at the proper time on the income statement
• Account for cash and credit sales
• Compute and interpret sales returns and allowances, and sales discounts
• Estimate and interpret uncollectible accounts receivable balances
• Assess the level of accounts receivable

Session 5

Inventories & Cost of Goods Sold

• Link inventory valuation to gross profit
• Use both perpetual and periodic inventory systems
• Calculate the cost of merchandise acquired
• Compute income and inventory values using the four principal inventory valuation methods
• Use the lower-of-cost-or-market method to value inventories
• Evaluate inventory turnover

Session 6

Long-Lived Assets & Depreciation

• Distinguish a company's expenses from expenditures that it should capitalize
• Measure the acquisition cost of tangible assets such as land, buildings and equipment
• Compute depreciation for buildings and equipment using various depreciation methods
• Recalculate depreciation in response to a change in estimated useful life or residual value
• Account for the impairment of tangible assets
• Account for various intangible assets
• Explain the reporting for goodwill

Session 7

Liabilities & Interest

• Account for current liabilities
• Measure and account for long-term liabilities
• Account for bond issues over their entire life
• Value and account for long-term lease obligations
• Interpret deferred tax liabilities
• Compute and interpret present and future values (APPENDIX - Ch. 9)

Session 8

Stockholders' Equity

• Describe the rights of shareholders
• Differentiate among authorized, issued and outstanding shares
• Contrast preferred stock and common stock
• Identify the economic characteristics of and accounting for stock splits
• Account for both large-percentage and small-percentage stock dividends
• Explain and report stock repurchases and other treasury stock transactions

Session 9

Intercorporate Investments & Consolidations

• Account for short-term investments in debt securities and equity securities
• Contrast the equity and market methods of accounting for investments
• Prepare consolidated financial statements
• Incorporate minority interests into consolidated financial statements
• Explain the economic and reporting role of goodwill

Session 10

Final Exam