Fall 2015 ~ Falconer Central School/JCC
BUS1510: Principles of Financial Accounting
Course Abbreviation/Number & Title:
BUS1510 Principles of Financial Accounting
Instructor: Michelle L. Johnson, Room 131
Phone: 665-6624, Ext. 4131
Email:
Office Hours: M-F 8:45-9:45am, 2:30-3:00pm
Required Text: Financial and Managerial Accounting
By Needles, Powers & Crosson; 8th Edition
Daily Materials: Text, Working Papers, Calculator, Pen/Pencil, Notebook, Folder
Course Description: Students will gain a broad view of accounting’s role in satisfying society’s need for financial information. In an overview of the accounting profession, students will understand generally accepted accounting principles underlying the design, integrity, and effectiveness of accounting information systems. Providing relevant financial statements for the decision maker and the use of computers to generate financial information are outlined.
Student Learning Objectives:
After successful completion of this course, students will be able to:
1. Describe accounting’s role in society.
2. Explain fundamental business concepts
3. Explain fundamental accounting concepts underlying financial statements
4. Discuss the uses and limitations of financial statements
5. Demonstrate how an accounting information system processes, stores and communicates financial information
Additional Student Learning Objectives that meet SUNY General Education Requirements:
Does this course meet a SUNY General Education requirement(s)? Yes No
Topic Outline:
· Uses of Accounting Information and the Financial Statements
· Measuring Business Transactions
· Measuring Business Income
· Financial Reporting and Analysis
· The Operating Cycle and Merchandising Operations
· Inventories
· Cash and Receivables
· Current Liabilities & The Time Value of Money
· Long-Term Assets
· Long-Term Liabilities
Policies
1. Attendance is expected. An attendance grade will be calculated each quarter based on the number of class periods missed.
2. Chapter assignments will be listed and distributed in calendar form each month. The chapters are to be read before class lectures and discussions.
3. All chapter problem assignments are listed on the calendar and must be completed and handed in on the date of the test for that material. Completed working papers can be used as reference during the exam, therefore turning them in the day before for grading may benefit your greatly.
4. Late assignments will only be accepted up to two class days following the exam. Ten points will be deducted for each day late. After the two days grace period a score of zero will be entered in the gradebook.
5. ANGEL will be used at the discretion of the instructor. Certain chapters will require additional ANGEL functions including discussion questions and activities. Failure to complete assigned activities by their deadline will result in a reduced participation score. Please check ANGEL on a regular basis for email updates.
6. Tests will be given at the conclusion of each chapter. The material on the tests will come from the textbook, the lectures, and the in-class discussions. The test may include True/False, Multiple Choice, Definitions, and Problems.
7. Final grades will be based on the average of all grades including tests, attendance, participation in class discussions, and satisfactory completion of homework assignments. The lowest test score will be dropped before final quarter averages are calculated. A schedule for converting percentage grades to letter grades is shown below.
Grade Conversion Schedule
90 A 100
87 < B+ < 90
80 B 87
77 C+ < 80
70 C 77
67 < D+ < 70
60 D 67
F 60
8. Plagiarism or cheating of any kind will result in a grade of F for the course.
9. Any test missed with the prior permission of the instructor will be rescheduled. Rescheduled tests must be completed within three school days of the original test date.
10. Special grades of I, W, AU, and the CR/F option can only be given with the permission of the instructor. Special forms must be obtained from the JCC Registrar by their deadline dates and signed by the instructor for these grades to be processed.
11. Adequate accommodations will be made on a individual basis for students requiring special services.
Grading ~ Points Breakdown
Description / Potential Points by Chapter / Total Points Available / WeightChapter 1-9 Working Papers / 100 / 900 / 40%
Chapter 10-11 Combined Working Papers / 100 / 100
Chapter 1-9 Exam / 100 / 900 / 40%
Chapter 10-11 Combined Exam / 100 / 100
Weekly Discussion Forum (17 Weeks) / 10 / 170 / 10%
Final Project / 200 / 200 / 10%
Extra Credit ~ Due w/ Exam / 5 / 50
CHAPTER 1 – USES OF ACCOUNTING INFORMATION AND THE FINANCIAL STATEMENTS
· Define accounting and describe its role in making informed decisions, identify business goals and activities, and explain the importance of ethics in accounting.
· Identify the users of accounting information.
· Explain the importance of business transactions, money measure, and separate entity.
· Describe the characteristics of a corporation.
· Define financial position, and state the accounting equation.
· Identify the four basic financial statements.
· Explain how generally accepted accounting principles (GAAP) relate to financial statements and the independent CPA’s report, and identify the organizations that influence GAAP.
CHAPTER 2 – ANALYZING BUSINESS TRANSACTIONS
· Explain how the concepts of recognition, valuation, and classification apply to business transactions and why they are important factors in ethical financial reporting.
· Explain the double-entry system and the usefulness of T accounts in analyzing business transactions.
· Demonstrate how the double-entry system is applied to common business transactions.
· Prepare a trial balance, and describe its value and limitations.
· Show how the timing of transactions affects cash flow and liquidity.
CHAPTER 3 – MEASURING BUSINESS INCOME
· Define net income, and explain the assumptions underlying income measurement and their ethical application.
· Define accrual accounting, and explain how it is accomplished.
· Identify four situations that require adjusting entries, and illustrate typical adjusting entries.
· Prepare financial statements from an adjusted trial balance.
· Describe the accounting cycle, and explain the purposes of closing entries.
· Use accrual-based information to analyze cash flows.
CHAPTER 4 – FINANCIAL REPORTING AND ANALYSIS
· Describe the objectives and qualitative characteristics of financial reporting and the ethical responsibilities that financial reporting involves.
· Define and describe the conventions of comparability and consistency, materiality, conservatism, full disclosure, and cost-benefit.
· Identify and describe the basic components of a classified balance sheet.
· Describe the features of multistep and single-step classified income statements.
· Use classified financial statements to evaluate liquidity and profitability.
CHAPTER 5 – THE OPERATING CYCLE AND MERCHANDISING OPERATIONS
· Identify the management issues related to merchandising businesses.
· Describe the terms of sale related to merchandising transactions.
· Prepare an income statement and record merchandising transactions under the perpetual inventory system.
· Prepare an income statement and record merchandising transactions under the periodic inventory system.
· Describe the components of internal control, control activities, and limitations on internal control.
· Apply internal control activities to common merchandising transactions.
CHAPTER 6 – INVENTORIES
· Explain the management decisions related to inventory accounting, evaluation of inventory level, and the effects of inventory misstatements on income measurement.
· Define inventory cost, contrast goods flow and cost flow, and explain the lower-of-cost-or market (LCM) rule.
· Calculate inventory cost under the periodic inventory system using various costing methods.
· Explain the effects of inventory costing methods on income determination and income taxes.
CHAPTER 7 – CASH AND RECEIVABLES
· Identify and explain the management and ethical issues related to cash and receivables.
· Define cash equivalents, and explain methods of controlling cash, including bank reconciliations.
· Apply the allowance method of accounting for uncollectible accounts.
· Define promissory note, and make common calculations for promissory notes receivable.
CHAPTER 8 – CURRENT LIABILITIES AND THE TIME VALUE OF MONEY
· Identify the management issues related to current liabilities.
· Identify, compute, and record definitely determinable and estimated current liabilities.
· Distinguish contingent liabilities from commitments.
· Define the time value of money, and apply it to future and present values.
· Apply the time value of money to simple accounting situations.
CHAPTER 9 – LONG-TERM ASSETS
· Define long-term assets, and explain the management issues related to them.
· Distinguish between capital expenditures and revenue expenditures, and account for the cost of property, plant, and equipment.
· Compute depreciation under the straight-line, production, and declining-balance methods.
· Account for the disposal of depreciable assets.
· Identify the issues related to accounting for natural resources, and compute depletion.
· Identify the issues related to accounting for intangible assets, including research and development costs and goodwill.
CHAPTER 10 – LONG-TERM LIABILITIES
· Identify the management issues related to long-term debt.
· Describe the features of a bond issue and the major characteristics of bonds.
· Record bonds issued at face value and at a discount or premium.
· Use present values to determine the value of bonds.
· Amortize bond discounts and bond premiums using the straight-line and effective interest methods.
· Account for the retirement of bonds and the conversion of bonds into stock.
CHAPTER 11 – CONTRIBUTED CAPITAL
· Identify and explain the management issues related to contributed capital.
· Identify the components of stockholders’ equity.
· Identify the characteristics of preferred stock.
· Account for the issuance of stock for cash and other assets.
· Account for treasury stock.