A first level course in accounting designed to provide skill and knowledge to students enabling them to understand the fundamental accounting reports of business. The course introduces accounting theory and its applications to proprietorships and corporate entities. All of the statements recommended by the Canadian Institute of Chartered Accountants are discussed.
Hours: 45 (Lecture Hours: 45)
None, but prior exposure to bookkeeping is strongly recommended.
- Business environment and accounting, financial statements
- Accounting cycle (analyze, record, post)
- Accounting cycle (trial balance, adjust, close)
- Ethics, internal control and bank reconciliations
- Merchandising business
- Inventory valuation
- Accrual accounting: Sales and receivables
- Long lived assets, tangible and intangible
- Accrual accounting: liabilities and long term debt including bonds
- Corporate accounting: share capital, dividends and retained earnings
- The cash flow statement: direct and indirect
- Financial statement analysis: horizontal, vertical and ratio analysis
The student will be able to apply basic accounting concepts to identify, analyze, record and report financial transactions according to generally accepted accounting principles. Student should be able to:
- Describe the system of accounting standards and principles.
- Demonstrate the accrual method of accounting and the accounting cycle.
- Prepare a balance sheet, income statement, statement of changes in equity, and a statement of cash flows using both the indirect and direct method.
- Identify the objectives and procedures of internal control.
- Account for short term investments and receivables, including bad debts.
- Account for the purchase, depreciation, and derecognition of tangible and intangible long-term assets.
- Account for bonds issued at par, a discount, or a premium by the effective interest method, including interest payments for full and partial periods.
- Journalize shareholder's equity transactions for share issue, repurchase, and both cash and stock dividends.
- Analyze financial statements, utilizing horizontal and vertical analysis and ratio analysis.
Grading System: Letter Grades
Passing Grade: D (50%)
Textbooks are subject to change. Please contact the bookstore at your local campus for current book lists.