Northern Virginia Community College – Annandale

Course Information: EFFECTIVE - FALL 2015

Acronym/Number: ACC-211

Title: Principles Of Accounting I

Credits: 3 Credit Hours

PREREQUISITE (S): No Prerequisite

COURSE DESCRIPTION: Introduces accounting principles with respect to financial reporting. Demonstrates how decision makers use accounting information for reporting purposes. Focuses on the preparation of accounting information and its use in the operation of organizations, as well as methods of analysis and interpretation of accounting information. Lecture 3-4 hours per week. 3-4 credits. (4 hours per week/4 Credits if there is an associated lab, ACC-213)

GENERAL COURSE PURPOSE: This course is designed to give the beginning business student a general understanding of the purpose of accounting, the capacity to perform basic accounting functions, and a working knowledge in financial statement preparation.

STUDENT LEARNING OUTCOMES: The student will be evaluated based upon the following learning outcomes listed below.

Exams will cover the following learning outcomes:

Exam 1: 1 and 2

Exam 2: 3 and 4

Exam 3: 5, 6, 7 and 8

Exam 4: 9, 10, 11, and 12 (*13 is not included on Exam)

Outcome #1: INTRODUCTION TO FINANCIAL STATEMENTS

1.1 Explain the purpose and importance of accounting.

1.2 Identify the users of accounting information.

1.3 Explain the three principal types of business activity.

1.4 Describe the content and purpose of the following:

A. Income statement

B. Retained earnings statement

C. Balance sheet (State the basic accounting equation)

D. Statement of cash flows

Outcome #2: A FURTHER LOOK AT FINANCIAL STATEMENTS

2.1 Identify the sections of a classified balance sheet.

2.2 Explain the meaning of generally accepted accounting principles (GAAP).

2.3 Discuss financial reporting concepts:

A. Materiality

B. Monetary unit assumption

C. Economic entity assumption

D. Periodicity assumption

E. Going concern assumption

F. Historical cost principle

G. Full disclosure principle

Outcome #3: THE ACCOUNTING INFORMATION SYSTEM

3.1 Analyze the effect of business transactions on the basic accounting equation.

3.2 Explain what an account is and how it helps in the recording process.

3.3 Define debits and credits and explain how they are used to record business transactions.

3.4 Record transactions in a journal and post entries to a ledger.

3.5 Explain what a ledger is and how it helps in the recording process.

3.6 Prepare and explain the use of a trial balance.

Outcome #4: ACCRUAL ACCOUNTING CONCEPTS

4.1 Explain the revenue recognition principle and the expense recognition principle.

4.2 Explain accrual accounting.

4.3 Prepare adjusting entries.

4.4 Prepare financial statements from an adjusted trial balance.

4.5 Describe and prepare closing entries.

4.6 Identify steps in the accounting cycle.

Outcome #5: MERCHANDISING OPERATIONS AND THE MULTIPLE-STEP INCOME STATEMENT

5.1 Analyze and record the following transactions for merchandise purchases using a perpetual system:

A. Purchases

B. Purchase discounts

C. Purchase returns and allowances

D. Transportation costs

5.2 Analyze and record the following transactions for merchandise sales using a perpetual system:

A. Sales

B. Sales discounts

C. Sales returns and allowances

5.3 Prepare a multi-step income statement.

Outcome #6: REPORTING AND ANALYZING INVENTORY

6.1 Compute inventory in a perpetual system using the methods of specific

identification, FIFO, LIFO, and weighted average.

6.2 Compute the lower of cost or market amount of inventory.

Outcome #7: FRAUD, INTERNAL CONTROL, AND CASH

7.1 Define internal control and identify its purpose and principles.

7.2 Apply internal control to cash receipts and disbursements.

7.3 Prepare bank reconciliation and the associated adjusting entries.

Outcome #8: REPORTING AND ANALYZING RECEIVABLES

8.1 Apply the allowance method and estimate uncollectible accounts using the percentage of receivables method.

8.2 Describe a note receivable, the computation of its maturity date, and the recording of its existence.

Outcome #9: REPORTING AND ANALYZING LONG-LIVED ASSETS

9.1 Compute and record depreciation using the straight-line and units-of-activity methods.

9.2 Distinguish between ordinary repairs (revenue expenditures) and additions and improvements (capital expenditures).

9.3 Account for asset disposal through discarding or selling.

Outcome #10: REPORTING AND ANALYZING LIABILITIES

10.1 Describe current and long-term liabilities and their characteristics.

10.2 Prepare entries to account for short-term notes payable.

10.3 Explain how to account for contingencies.

10.4 Prepare entries to record bond issuance and interest expense.

10.5 Compute and record amortization of bond discount using the straight line method.

10.6 Compute and record amortization of bond premium using the straight line method.

10.7 Record the redemption of bonds at maturity.

10.8 Calculate and record amounts related to mortgage note payments and interest.

Outcome #11: Reporting and analyzing stockholders’ equity

11.1 Identify the major characteristics of a corporation.

11.2 Compare bond financing with stock financing.

11.3 Record the issuance of common stock.

11.4 Prepare the entries for cash dividends and understand the effect of stock dividends and stock splits.

11.5 Record purchases and sales of treasury stock.

11.6 Prepare a comprehensive stockholders’ equity section.

Outcome #12: statement of cash flows

12.1 Prepare a statement of cash flows using the indirect method.

Outcome #13: financial analysis: The big picture

13.1 Analyze financial statements to assess the liquidity, solvency, and profitability of businesses.