ACC201 Financial Accounting Funds.
Lead Faculty: Dr. Connie Fajardo
A survey of basic accounting theory and the application of accounting principles, this course includes the recording and summarization of business transactions in the form of financial statements under the rules of generally accepted accounting principles. (GAAP). It is designed for students who have little or no prior knowledge of financial accounting, this course corresponds to Principles of Accounting I
at other colleges.
- Describe and explain the purpose of each of the three principal financial statements: balance sheet, income statement and statement of cash flows.
- Prepare from an adjusted trial balance the following financial statements: income statement, statement of retained earnings and balance sheet.
- Analyze and record common types of transactions (sales, cash receipts, purchases on account, cash disbursements, etc.) in proper form, in both a 2-cololumn journal and in T-accounts.
- Discuss the purpose of adjusting journal entries as a step in the accounting cycle.
- Explain what is meant by the term "depreciation" in the context of accounting.
- Explain the meaning of "accrual basis" of accounting, and how it differs from the "cash basis" of accounting.
- Explain the meaning of "perpetual inventory system", and how it differs from the "periodic method" of accounting for inventory.
- Apply the alternative methods of costing inventory - FIFO, LIFO and weighted average.
- Analyze financial statements using common financial statement ratios, and state conclusions about the company's liquidity, solvency, and profitability.
- Discuss what is meant by "Internal Control" and why it is important for any enterprise; also, provide several examples of internal control procedures commonly used by a business or nonprofit enterprise.