Description:

The course will present the use of accounting theory in the preparation of financial reports. Upon successful completion of this course, the student should be able to solve problems that arise in the presentation of cash, receivables, inventories, tangible and intangible assets on the statement of financial position, and their related effect on the statement of income. 3 hrs./wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Describe the conceptual framework underlying financial accounting.
2. Prepare the major financial statements.
3. Describe how the time value of money affects accounting.
4. Describe the accounting treatment of current assets.
5. Describe the accounting treatment of plant and equipment.
6. Describe the accounting treatment of intangible assets.
7. Solve problems involving cash, receivables, inventories, and tangible and intangible assets.

Content Outline & Competencies:

I. Conceptual Framework
   A. Define accounting and describe its essential characteristics.
   B. Identify the major financial statements and other means of financial
reporting.
   C. Identify the objectives of financial reporting.
   D. Describe the environment of financial accounting.
   E. Explain the need for accounting standards.
   F. Identify the major policy-setting bodies and their role in the
standard-setting process.
   G. Explain the meaning of generally accepted accounting principles.
   H. Describe the impact of user groups on the standard-setting process.
   I. Describe issues related to ethics and financial accounting.
   J. Describe the usefulness of a conceptual framework.
   K. Describe the FASB’s efforts to construct a conceptual framework.
   L. Explain the objectives of financial reporting.
   M. Identify the qualitative characteristics of accounting information.
   N. Define the basic elements of financial statements.
   O. Describe the basic assumptions of accounting.
   P. Explain the application of the basic principles of accounting.
   Q. Describe the impact that constraints have on reporting accounting
information.

II. Accounting Process
   A. Explain double-entry rules.
   B. Identify steps in the accounting cycle.
   C. Record transactions in journals.
   D. Post to ledger accounts.
   E. Prepare a trial balance.
   F. Explain the reasons for preparing adjusting entries.
   G. Explain how inventory accounts are adjusted at year-end.
   H. Prepare closing entries.

III. Statement of Income and Retained Earnings.
   A. Identify the uses and limitations of an income statement.
   B. Distinguish between the capital maintenance and transaction
approaches.
   C. Prepare a single-step income statement.
   D. Prepare a multiple-step income statement.
   E. Explain how irregular items are reported.
   F. Explain intraperiod tax allocation.
   G. Explain where earnings per share information is reported.
   H. Prepare a statement of retained earnings.
   I. Explain how prior period adjustments are reported.

IV. Balance Sheet and Statement of Cash Flows
   A. Identify the uses and limitations of a balance sheet.
   B. Identify the major classifications of the balance sheet.
   C. Prepare a classified balance sheet using the report and account
forms.
   D. Identify balance sheet information requiring supplemental
disclosure.
   E. Identify major disclosure techniques for the balance sheet.
   F. Indicate the purpose of the statement of cash flows.
   G. Identify the content of the statement of cash flows.
   H. Prepare a statement of cash flows.

V. Time Value of Money
   A. Identify accounting topics where time value of money is relevant.
   B. Distinguish between simple and compound interest.
   C. Use appropriate compound interest tables.
   D. Identify variables fundamental to solving interest problems.
   E. Solve future and present value of 1 problems.
   F. Solve future amount or ordinary and annuity due problems.
   G. Solve present value of ordinary and annuity due problems.

VI. Cash and Receivables
   A. Identify items considered cash.
   B. Explain common techniques employed to control cash.
   C. Indicate how cash and related items are reported.
   D. Define receivables and identify the different types of receivables.
   E. Explain accounting issues related to recognition of accounts
receivable.
   F. Explain accounting issues related to valuation of accounts
receivable.
   G. Explain accounting issues related to recognition of notes
receivable.
   H. Explain accounting issues related to valuation of notes receivable.
   I. Explain accounting issues related to disposition of accounts and
notes receivable.

VII. Inventories
   A. Identify major classifications of inventory.
   B. Distinguish between the perpetual and periodic inventory systems.
   C. Identify the effects of inventory errors on the financial
statements.
   D. Identify the items that should be included as inventory cost.
   E. Explain the effect of LIFO liquidations.
   G. Explain the dollar-value LIFO method.
   H. Identify the major advantages and disadvantages of LIFO.
   I. Identify the reasons why a given inventory method is selected.
   J. Explain and apply the lower of cost or market rule.
   K. Identify when inventories are valued at net realizable value.
   L. Explain when the relative sales value method is used to value
inventories.
   M. Explain accounting issues related to purchase commitments.
   N. Determine ending inventory by applying the gross profit method.
   O. Determine ending inventory by applying the retail inventory method.
   P. Describe financial statement presentation of inventories.

VIII. Property, Plant and Equipment
   A. Describe the major characteristics of property, plant, and
equipment.
   B. Identify the costs included in the initial valuation of land,
buildings, and equipment.
   C. Describe the accounting problems associated with self-constructed
assets.
   D. Describe the accounting problems associated with interest
capitalization.
   E. Explain accounting issues related to acquiring and valuing plant
assets.
   F. Describe the accounting treatment for costs subsequent to
acquisition.
   G. Describe the accounting treatment for the disposal of property,
plant, and equipment.
   H. Explain the concept of depreciation.
   I. Identify the factors involved in the depreciation process.
   J. Compare activity, straight-line, and decreasing charge methods of
depreciation.
   K. Explain special depreciation methods.
   L. Identify reasons why depreciation methods are selected.
   M. Describe income tax methods of depreciation
   N. Explain the accounting issues related to asset impairment.
   O. Describe financial statement disclosures for property, plant, and
equipment.
   P. Explain the accounting procedures for depletion of natural
resources.
   Q. Describe financial statement disclosures for natural resources.

IX. Intangible Assets
   A. Describe the characteristics of intangible assets.
   B. Explain the procedure for valuing and amortizing intangible assets.
   C. Identify the types of specifically identifiable intangible assets.
   D. Explain the conceptual issues related to goodwill.
   E. Describe the accounting procedures for recording goodwill.
   F. Identify the conceptual issues related to research and development
costs.
   G. Describe the accounting procedures for research and development
costs.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Minimum of four exams
Evaluation of class participation
Evaluation of homework assignments
Optional projects

Grade Criteria:
 90 - 100% = A
 80 -  89% = B
 70 -  79% = C
 60 -  69% = D
  0 -  59% = F

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.