Course Number and Title: / ACC 231 Intermediate Accounting I
Prerequisite: / ENG 102 or concurrent, MAT 145, ACC 112
Course Credits and Hours: / 3 credits
3 lecture hours/week
1 lab hours/week
Course Description: / This course examines theprinciples andprocedures emphasized in the preparation and interpretation ofthe statements ofincome, retained earnings, cash flow, andbalancesheets. The timevalue ofmoney, receivables, inventories,and fixed assets are covered in depth.
Required Text(s): / Obtain current information at or visit the bookstore. (Check your course schedule for the course number and section.)
Additional Materials:
Method of Instruction: / Classroom
Disclaimer:
CoreCoursePerformanceObjectives(CCPOs):
1.Describe the environment of financial accounting, explain the development of accountingstandards, and describe the conceptual framework underlying financial accounting. (CCC 1, 5; PGC 1)
2.Use the accounting cycle, and prepare a statement of income and retained earnings. (CCC- 1; GC- 6)
3.Prepare a balance sheet and a statement of cash flows, and demonstrate the use of the time value of money calculations. (CCC 2, 6; PGC 2, 3, 6, 7)
4.Explain the accounting issues, and demonstrate the accounting procedures relating to cash and receivables. (CCC 2, 3; PGC 2)
5.Explain the accounting issues, and demonstrate the accounting procedures relating to inventories. (CCC 2, 3; PGC 2)
6.Explain the accounting issues, and demonstrate the accounting procedures relating to the acquisition and disposition of plant, property, and equipment. (CCC 2, 3; PGC 4)
See Core Curriculum Competencies and Program Graduate Competencies at the end of the syllabus. CCPOs are linked to every competency they develop.
MeasurablePerformanceObjectives (MPOs):
Upon completion ofthis course, the student will:
1.Describe the environment of financial accounting, explain the development of accounting standards, and describe the conceptual framework underlying financial accounting.
1.1Identify the major financial statements and other means of financial reporting.
1.2Explain how accounting assists in the efficient use of scarce resources.
1.3Identify some of the challenges facing accounting.
1.4Identify the objectives of financial reporting.
1.5Explain the need for accounting standards.
1.6Identify the major policy-setting bodies and their role in the standards-setting process.
1.7Explain the meaning of generally accepted accounting principles.
1.8Describe the impact of user groups on the standard-setting process.
1.9Explain issues related to ethics and financial accounting.
1.10Describe the conceptual framework underlying financial accounting.
1.11Describe the usefulness of a conceptual framework.
1.12Describe the Financial Accounting Standards Board’s (FASB) efforts to construct aconceptual framework.
1.13Explain the objectives of financial reporting.
1.14Identify the qualitative characteristics of accounting information.
1.15Define the basic elements of financial statements.
1.16Describe the basic assumptions of accounting.
1.17Explain the application of the basic principles of accounting.
1.18Describe the impact that constraints have on reporting accounting information.
2.Use the accounting cycle, and prepare a statement of income and retained earnings.
2.1Explain basic accounting terminology.
2.2Explain double-entry rules.
2.3Identify steps in the accounting cycle.
2.4Record transactions in journals, post to ledger accounts, and prepare a trial balance.
2.5Explain the reasons for preparing adjusting entries.
2.6Prepare closing entries.
2.7Explain how inventory accounts are adjusted at year-end.
2.8Prepare a 10-column work sheet.
2.9Identify the uses and limitations of an income statement.
2.10Prepare a single-step income statement.
2.11Prepare a multiple-step income statement.
2.12Explain how irregular items are reported.
2.13Explain intraperiod tax allocation.
2.14Explain where earnings-per-share information is reported.
2.15Prepare a statement of retained earnings.
2.16Explain how other comprehensive income is reported.
3.Prepare a balance sheet and a statement of cash flows, and demonstrate the use of the time value of money calculations.
3.1Identify the uses and limitations of a balance sheet.
3.2Identify the major classifications of the balance sheet.
3.3Prepare a classified balance sheet using the report and account formats.
3.4Identify balance sheet information requiring supplemental disclosure.
3.5Identify major disclosure techniques for the balance sheet.
3.6Indicate the purpose of the statement of cash flows.
3.7Identify the content of the statement of cash flows.
3.8Prepare a statement of cash flows.
3.9Discuss the usefulness of the statement of cash flows.
3.10Identify accounting topics where time value of money is relevant.
3.11Distinguish between simple and compound interest.
3.12Learn how to use appropriate compound interest tables.
3.13Identify variables fundamental to solving interest problems.
3.14Solve future and present value of one problems.
3.15Solve future value of ordinary and annuity due problems.
3.16Solve present value of ordinary and annuity due problems.
3.17Solve present value problems related to deferred annuities and bonds.
3.18Apply the expected cash flow approach to present value measurement.
4.Explain the accounting issues, and demonstrate the accounting procedures relating to cash and receivables.
4.1Identify items considered cash.
4.2Indicate how cash and related items are reported.
4.3Define receivables, and identify the different types of receivables.
4.4Explain accounting issues related to recognition of accounts receivable.
4.5Explain accounting issues related to valuation of accounts receivable.
4.6Explain accounting issues related to recognition of notes receivable.
4.7Explain accounting issues related to valuation of notes receivable.
4.8Explain accounting issues related to disposition of accounts and notes receivable.
4.9Explain how receivables are reported and analyzed.
5.Explain the accounting issues, and demonstrate the accounting procedures relating to inventories.
5.1Identify major classifications of inventory.
5.2Distinguish between perpetual and periodic inventory systems.
5.3Identify the effects of inventory errors on financial statements.
5.4Identify the items that should be included as inventory cost.
5.5Describe and compare the flow assumptions used in accounting for inventories.
5.6Explain the significance and use of a last-in, first-out (LIFO) reserve.
5.7Explain the effect of LIFO liquidations.
5.8Explain the dollar-value LIFO method.
5.9Identify the major advantages and disadvantages of LIFO.
5.10Identify the reasons why a given inventory method is selected.
5.11Explain and apply the lower of cost or market rule.
5.12Identify when inventories are valued at net realizable value.
5.13Explain when the relative sales value method is used to value inventories.
5.14Explain accounting issues related to purchase commitments.
5.15Determine ending inventory by applying the gross profit method.
5.16Determine ending inventory by applying the retail inventory method.
5.17Explain how inventory is reported and analyzed.
6.Explain the accounting issues, and demonstrate the accounting procedures relating to the acquisition and disposition of plant, property, and equipment.
6.1Describe the major characteristics of property, plant, and equipment.
6.2Identify the costs included in the initial valuation of land, buildings, and equipment.
6.3Describe the accounting problems associated with self-constructed assets.
6.4Describe the accounting problems associated with interest capitalization.
6.5Understand accounting issues related to acquiring and valuing plant assets.
6.6Describe the accounting treatment for costs subsequent to acquisition.
6.7Describe the accounting treatment for the disposal of property, plant, and equipment.
6.8Explain the accounting issues relating to depreciation, depletion, and intangible assets.
6.9Explain the concept of depreciation.
6.10Identify the factors involved in the depreciation process.
6.11Compare activity, straight-line, and decreasing charge methods of depreciation.
6.12Explain special depreciation methods.
6.13Explain the accounting issues related to asset impairment.
6.14Explain the accounting procedures for depletion of natural resources.
6.15Explain how property, plant, equipment, and natural resources are reported and analyzed.
6.16Describe the characteristics of intangible assets.
6.17Identify the costs included in the initial valuation of intangible assets.
6.18Explain the procedure for amortizing intangible assets.
6.19Identify the types of intangible assets.
6.20Explain the conceptual issues related to goodwill.
6.21Describe the accounting procedures for recording goodwill.
6.22Explain the accounting issues related to intangible asset impairments.
6.23Identify the conceptual issues related to research and development costs.
6.24Describe the accounting procedures for research and development costs and for other similar costs.
6.25Indicate the presentation of intangible assets and related items.
Evaluation Criteria/Policies:
Students must demonstrate proficiency on all CCPOs at a minimal 75 percent level to successfully complete the course. The grade will be determined using the DTCC grading system:
92 / – / 100 / = / A83 / – / 91 / = / B
75 / – / 82 / = / C
0 / – / 74 / = / F
Students should refer to the Student Handbook ( for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Core Curriculum Competencies (CCCs are the competencies every graduate will develop):
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
ProgramGraduateCompetencies(PGCs are the competenciesevery graduatewilldevelopspecific to his or hermajor):
1.Prepare and analyze financial statements in accordance with Generally Accepted AccountingPrinciples.
2.Analyze data to process information for decision-making under a product and job costing system.
3.Apply tax laws to the preparation of tax returns and to tax plans.
4.Integrate professional, ethical and legal standards into business practice.
5.Employ the various theories of management and marketing in a business.
Disabilities Support Statement
The College is committed to providing reasonable accommodations for students with disabilities. You are encouraged to schedule an appointment with your campus Disabilities Support Counselor if you feel that you may need an accommodation based on the impact of a disability. A listing of campus Disabilities Support Counselors and contact information can be found at go.dtcc.edu/DisabilityServices or visit the campus Advising Center.