BUS 2125 - Financial Accounting

1. Understand the nature and purpose of generally accepted accounting principles (GAAP), the objective of financial reporting and related accounting assumptions and principles.
2. Understand the components of the accounting conceptual framework including accounting and business terminology.
3. Apply the accounting equation to analyze business transactions and understand the impact on financial statements.
4. Understand how internal controls are used to manage and control a firm’s resources, minimize risk and ensure accurate reporting.
5. Understand and apply the information conveyed in each of the four basic financial statements and how this information may be used by management, investors, creditors and regulators.
6. Apply accounting practices to measure, classify, and report current assets, accounts receivable and bad debts, short-term investments, inventory and cost of goods sold, and prepaid expenses.
7. Apply accounting practices to measure, classify, and report long-term assets including the acquisition, use, depreciation and disposal of long-lived assets.
8. Apply accounting practices to measure, classify and report current and long-term liabilities.
9. Apply issues relating to stockholders’ equity including the issuance of stock, repurchase of stock and dividends.
10. Analyze how accounting transactions, the use of different valuation methods and management estimates can affect assets, liabilities and equity, earnings and other financial measures.
11. Apply understanding of how operating, investing and financing activities are reported in the statement of cash flows and analyze the impact these activities have on a firm’s performance and solvency.
12. Understand and apply financial performance measures and ratio analysis to compare financial results against expectations, industry standards, and competitors.

1. The double entry accounting system
2. The annual report, including the four financial statements (income statement, balance sheet, statement of stockholders’ equity, statement of cash flows) and the notes
3. The accounting cycle, the conceptual framework, and generally accepted accounting principles
4. Merchandising operations and internal control procedures for cash and inventories
5. Current assets, including cash, accounts receivable, inventories and prepaids
6. Non-current assets, including fixed assets, natural resources, and intangibles
7. Current and non-current liabilities, including time value of money implications
8. Accounting for owners’ equity
9. Financial statement analysis