PRINCIPLES OF ACCOUNTING
This course is a part of:
Associate's Degree Program
Bachelor's Degree Program
Students will be introduced to the field of financial accounting. Emphasis will be placed on learning Generally Accepted Accounting Principles (GAAP) which teach students to record and present financial information in a meaningful way. In addition to learning how to properly record a business transaction and prepare the financial statements according to GAAP, students will gain an understanding of how worksheets are prepared, prepare adjusting and closing entries, be introduced to special purpose journals and the posting process, learn how to account for a merchandising business, learn the importance of internal controls and ethics, learn the proper accounting for short-term investments, notes and accounts receivable, learn various inventory costing methods and how to properly handle long-term assets.
At the completion of this course, the student will be able to:
- Explain the characteristics of an account.
- Apply the basic framework for recording transactions.
- Distinguish between accrual and cash basis accounting.
- Explain how the matching concept relates to accrual basis accounting.
- Describe the basic principles of accounting systems.
- Apply alternative methods of inventory valuation.
- Define plant assets and describe the accounting for their cost.
- Compute depreciation on related fixed assets.
- Demonstrate an understanding of key financial accounting ratios used to describe the characteristics of financial reports.
- Describe and apply the basic financial accounting concepts and principles.
- Analyze financial statements.
- Utilize ratio analysis in the decision making process.