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Dec 11, 2024
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BUS 2510 - Principles of Financial Accounting2 lecture hours 2 lab hours 3 credits Course Description This course introduces students to the principles of financial accounting for measurement, reporting, interpretation, and analysis of financial information of service, merchandising, and manufacturing companies. Topics include the basic accounting cycle (transaction processing), preparation, and analysis of financial statements (income statement, balance sheet, and statement of cash flows), financial ratio calculation and analysis, time value of money, and discussions of specific accounting rules and estimates at an introductory level. (prereq: BUS 2221 or IND 2700 ) (quarter system prereq: BA 1220) Course Learning Outcomes Upon successful completion of this course, the student will be able to:
- Utilize the accounting equation to demonstrate how different transactions impact it
- Define key accounting concepts and principles
- Understand where financial statement information originates by recording business transactions as journal entries
- Construct the balance sheet and income statement to learn their purpose and format
- Understand complex accounting transactions and how they relate to accounting principles
- Recognize the impact of judgement and bias on financial statements and accounting practices
- Prepare and use the statement of cash flows to evaluate the financial health of a business
- Analyze financial ratios and use the DuPont framework to evaluate the financial state of a business
- Understand concepts of time value of money and how they relate to valuing investments and debt
Prerequisites by Topic
- Principles and concepts of microeconomics
Course Topics
- The accounting equation components
- Converting the accounting equation in to balance sheet and income statements
- Accounting principles, rules, and definitions
- Basic transactions and the accounting equation
- Double entry accounting using journal entries and T-accounts
- The trial balance
- Accrual accounting
- More complex balance sheet and income statement
- Classified balance sheet
- Completing the accounting cycle including the closing process
- Merchandising accounting
- Inventory methods and decisions
- Multi-step income statement
- Accounts receivable
- Allowance methods and decisions
- Other receivables
- Long-lived assets including plant, property and equipment, and intangibles
- Depreciation methods and judgments
- Short term liabilities including accounts payable and short-term debt
- Statement of cash flows preparation and analysis
- Indirect method
- Direct method
- Manufacturing accounting
- Cost of goods manufactured
- Fixed and variable costs
- Financial ratios and analysis
- Dupont analysis
- Impact on policy difference
- Time value of money basics (PV, FV, PVA, FVA)
- Long term liabilities including bonds
Coordinator Carol Mannino
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