Computerized enhanced instruction develops accounting principles and procedures as applied to partnerships and corporations. Designed primarily for students anticipating careers in accounting or who otherwise require detailed understanding of financial accounting practices.
Prerequisite: AC11. A-E-G/4 credit hrs.
III. GOALS OF THE COURSE:
The accounting faculty will assist accounting and non-accounting majors to
achieve the desired learning outcomes listed below. In addition, the faculty will provide an opportunity for all students to develop and improve their
To that end, instruction will be directed at introducing students to:
A. The body of rules regarding the preparation of financial statements and the unique accounting issues relating to the partnership and corporate forms of business entities.
B. The distinguishing features of debt and equity offerings and the proper recording of these securities by the issuing entity.
C. Accounting for investments in debt and equity securities.
D. Analytical tools useful for business decisions such as financial ratios, cash flow statements and incremental analysis.
IV. STUDENT LEARNING OUTCOMES:
Upon successful completion of AC12 (Principles of Accounting II) students will:
A. have a more thorough understanding of basic principles learned in AC11.
B. be familiar with additional fundamental accounting topics such as:
1. generally accepted accounting principles
4. analysis of financial statements
5. statements of cash flow
6. debt and equity investments
7. bond and mortgage obligations
8. the use of accounting as a tool for management
C. be prepared for more advanced study in accounting and/or other related business subjects.
D. have an enhanced knowledge of accounting software.
V. SPECIAL INSTRUCTIONS/INFORMATION FOR THE TEACHER:
A. Prerequisite to this course: AC11
B. Programs that require this course:
A.S. Degree: Accounting
A.A.S. Degree: Accounting
1-Year Certificate: Accounting
C. Programs that require this course or AC15:
A.A.S. Degree: Business Administration
Retail Business Management
D. Courses which require this as a prerequisite or corequisite:
AC51: Intermediate Accounting
AC70: Cost Accounting
AC84: Corporate Finance
AC88: Federal Income Taxation
E. External Jurisdiction: None
VI. MAJOR TOPICS REQUIRED (50 Hours)
A. FINANCIAL STATEMENTS (14 HOURS)
Concepts: (3.5 hours) A review of generally accepted accounting concepts and principles as they apply to the preparation of financial statements.
1. Statement of cash flows (5.5 hours)
2. Income statement (1.5 hours) with:
a. discontinued operations
b. extraordinary items
c. earnings per share
Analysis: (3.5 hours)
1. Comparative Statements – trend analysis
2. Measures of liquidity
3. Measures of profitability
4. Measures of solvency
5. Auditor’s opinion
B. ASSET VALUATION (3.5 HOURS)
Trading Securities – Short term investments.
Long Term Investments – debt and equity investments class as “Held to Maturity” or “Available for Sale”
C. EQUITIES (21 HOURS)
Long Term Debt (5 hours) Issuing and Redeeming Bonds.
Amortization of bond discounts and premiums using the straight line method. Accounting for mortgage obligations and convertible bonds.
Owner’s Equity (5 hours) Partnerships: formation, income division, and liquidation.
1. treasury stock, equity per share, restrictions on retained earnings, prior period adjustments
2. intra-period tax allocation, cash and stock dividends, stock splits
3. convertible preferred stock
D. MANAGERIAL ACCOUNTING (6.5 HOURS)
Fixed and variable costs
Cost-Volume-Profit Analysis and Graph
Incremental analysis and decision making
E. OPTIONAL TOPICS:
1. Present Value
2. Scientific amortization of bonds
F. EVALUATION OF STUDENT PERFORMANCE (5 HOURS)
It is strongly suggested that there be at least three (3) full period examinations (or the equivalent in distance education sections) and two (2) computer projects. The examinations could include short answers, journal entries, financial statement preparations and essay questions.
The Business Administration and Accounting Department endorses the college’s “Writing to Learn” initiative and strongly recommends that a writing component be included in all business and accounting courses.
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Last revised: 5/27/2008 10:14 AMComments on this webpage, contact: Ronald Feinberg
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