Make more informed management decisions by having a working understanding of how financial accounting data can be used to analyze a business. This course provides a basic understanding of financial statements, accounting theory and the structure of accounting systems. Through analysis, this course will give you the ability to understand and interpret financial statements in order to improve management decision-making.
At the completion of this course students will be able to:
- Identify the users and uses of accounting, describe the primary forms of business organization and explain the three main types of business activity
- Identify the sections of classified financial statements; calculate ratios for analyzing a company’s liquidity, solvency, and profitability. As well as describe the framework for the preparation and presentation of financial statements
- Record and analyze the effects of business transactions by applying generally accepted accounting principles and practices
- Prepare a trail balance
- Explain when revenues and expenses are recognized and how this forms the basis of accrual accounting
- Record adjusting entries and prepare financial statements
- Perform all necessary steps to complete the accounting cycle
- Account for transactions within a merchandising operation using perpetual and/or a periodic inventory system
- Calculate the gross profit margin and profit margin
- Describe the steps in determining inventory quantities; apply various methods of cost determination and explain the effects of inventory errors as well as demonstrate the presentation and analysis of inventory
- Explain the activities that help achieve internal control and prevent fraud. Apply control activities to cash receipts and payments as well as prepare a bank reconciliation
- Explain how accounts receivable and notes receivable are recognized, valued, and presented. Apply the principles of sound accounts receivable management
- Determine the cost of capital assets, calculate depreciation and account for disposal of capital assets as well as illustrate how long-lived assets are reported in the financial statements
- Account for current liabilities, notes payable, and bonds payable as well as identify the requirements for the financial statement presentation and analysis of liabilities
- Record common share and preferred share transactions as well as prepare the entries for cash dividends, stock dividends, and stock splits, and understand their financial impact. Indicate how shareholders’ equity is presented and evaluate dividend and earnings performance
- Complete the statement of cash flows and evaluate a company’s liquidity and solvency using the cash flow statement.
- Explain the distinguishing features of managerial accounting and the importance of business ethics, as well as identify the three board functions of management
- Define the three classes of manufacturing costs and differentiate between product costs and period costs as well as explain how costs are affected by changes in the level of business activity
- Compute costs in a job-order cost accounting system and distinguish between under- and over-applied overhead as well as discuss methods of adjusting overheads
- Explain the flow and assignment of manufacturing costs in a process cost system. Calculate equivalent units using the weighted-average method and using the FIFO method when preparing a production cost report
- Identify and apply the steps in the development of an activity-based costing system, understand the benefits and limitations of an activity-based costing system and differentiate between value-added and non-value added activities
- Understand and apply basic cost-volume-profit concepts, explain the term sales mix and its effect on the break-even sales, and understand how cost structure and operating leverage affect profitability
- Identify relevant costs and use incremental analysis in making various business decisions
- Calculate a target cost using various cost methods, and determine a transfer price using negotiated, cost-based, and market-based approaches. Explain issues involved in transferring goods between divisions in different countries and different tax rates
This course is offered in class and online. There is a reasonable amount of work involved outside the classroom. Textbooks are required, and reading will be assigned on a regular basis.
If you choose to take this course online you should plan to log into your course regularly throughout the week.
Please come to this course prepared to share your experiences, opinions and perspectives with the class.