I. Accounting and the Business Environment
a. Define and use accounting vocabulary.
b. Understand the needs of the users of financial information.
c. Describe the accounting profession and the organizations that govern it.
d. Identify the different types of business organizations.
e. Delineate the distinguishing characteristics between different business organizations.
f. Define and apply accounting concepts and principles and the accounting equation.
II. Recording Business Transactions
a. Explain accounts, journals, and ledgers as they relate to recording transactions and describe common accounts.
b. Define debits, credits and normal account balances.
c. Use double-entry accounting and T-accounts
d. Journalize and post transactions to the ledger
e. Prepare the unadjusted trial balance from T-accounts (ledgers)
f. Prepare a set of basic financial statements.
g. Analyze the three basic financial statements understanding the interrelations among them.
III. The Adjusting Process
a. Differentiate between accrual and cash-basis accounting
b. Define and apply the accounting period concepts, revenue and matching principles
c. Explain why adjusting entries are needed.
d. Journalize and post adjusting entries.
e. Explain the purpose of and prepare an adjusted trial balance and financial statements.
IV. Completing the Accounting Cycle
a. Prepare an accounting worksheet and use worksheet to prepare financial statements.
b. Close nominal accounts.
c. Prepare post-closing trial balance.
d. Classify assets and liabilities as current or long-term.
e. Calculate and use the current ratio and debt ratio to evaluate a company.
V. Merchandising Operations
a. Describe and illustrate the two types of inventory systems in merchandising operations.
b. Account for the purchase and sale of inventory using a perpetual and periodic system.
c. Adjust and close accounts of a merchandising company.
d. Prepare a merchandiser’s financial statements and a Cost of Goods Sold schedule.
e. Calculate and use gross profit percentage and inventory turnover ratio to evaluate a business.
VI. Merchandise Inventory
a. Define accounting principles related to inventory and inventory costing methods.
b. Account for perpetual inventory by three of the most common costing methods (LIFO, FIFO, and AVERAGE).
c. Compare the effects of the three most common costing methods.
d. Apply the LCM rule to inventory, measure effects of inventory errors and estimate ending inventory by the gross profit method.
VII. Internal Control and Cash
a. Define internal control and explain the Sarbanes-Oxley Act.
b. List and describe the components of internal control and control procedures.
c. Explain control procedures unique to e-commerce.
d. Demonstrate the use of a bank account as a control devise and prepare bank reconciliation.
e. Journalize related entries for adjustments and petty cash transactions.
f. Describe ethical business issues related to accounting.
VIII. Receivables
a. Define common types of receivables and design internal controls.
b. Use the allowance method and direct write off method to account for uncollectible accounts.
c. Account and report accounts receivables (NRV) and notes receivables on the balance sheet (NRV).
d. Journalize credit-card, bankcard and debit-card sales.
e. Calculate and use the acid-test ratio and days’ sales in receivables to evaluate a company.
IX. Plant Assets and Intangibles
a. Measure the cost of a plant asset.
b. Account for depreciation using common methods (SL, DDB, SYD, & UOP).
c. Record the disposal of an asset by sale or trade.
d. Account for natural resources and intangible assets.
e. Describe ethical issues related to plant assets.
X. Current Liabilities, Payroll and Long-Term Liabilities, The Time Value of Money: Present Value of a Bond and Effective-Interest Amortization
a. Account for current liabilities of known and unknown amounts.
b. Calculate and journalize basic payroll transactions and payroll tax amounts.
c. Describe, calculate and journalize the present value of a bond issuance and bonds payable transactions.
d. Measure interest expense on bonds using straight-line and effective interest method of amortization.
e. Report and classify liabilities on the balance sheet.
f. Compare issuing bonds to issuing stocks.
XI. Corporations: Paid-In Capital and the Balance Sheet
a. Identify characteristics of a corporation.
b. Describe two sources of stockholders equity and classes of stock.
c. Journalize the issuance of stock and prepare a stockholder’s equity section of a balance sheet.
d. Account for cash dividends and income tax of a corporation.
e. Calculate return on assets and stockholders’ equity.
XII. Corporations: Effects on Retained Earnings and the Income Statement
a. Review the characteristics of a corporation.
b. Describe the two sources of stockholders’ equity and the classes of stock.
c. Journalize the issuance of stock and prepare the stockholders’ equity section of corporation balance sheet.
d. Illustrate retained earnings transactions and report restrictions on retained earnings.
e. Account for cash, stock dividends, stock splits, and treasury stock.
f. Evaluate return on assets and return on stockholders’ equity.
g. Account for the income tax of a corporation.
h. Complete a classified corporate income statement including earnings per share. |