Overall Expectations:

By the end of this course, students will:

• describe the discipline of accounting and its importance for business;

• describe the differences among the various forms of business organization;

• demonstrate an understanding of the basic procedures and principles of the accounting cycle for a service business.

Specific Expectations

A1: Introduction to Accounting as a Discipline

By the end of this course, students will:

• explain the purpose of accounting;

• explain the difference between accounting and bookkeeping;

• identify the users and uses of accounting;

• identify the Generally Accepted Accounting Principles (GAAP) and explain their importance.

A2: Business Structures

By the end of this course, students will:

• describe the characteristics of different forms of business organization, including sole proprietorship, partnership, and corporation;

• describe the advantages and disadvantages of different forms of business organization, including sole proprietorship, partnership, and corporation;

• explain the differences among the equity sections of different forms of business organization, including sole proprietorship, partnership, and corporation (e.g., capital account in a sole proprietorship versus common stock in shareholders’ equity in a corporation).

A3: The Accounting Cycle for a Service Business

By the end of this course, students will:

• assess the effects that transactions have on the accounts and financial statements of a service business;

• record transactions using the journals and ledgers of a service business;

• prepare a trial balance and the financial statements for a service business;

• record adjusting and closing entries for a service business (e.g., prepaid expenses, amortization, accruals);

• describe the impact of year-end procedures, including adjusting and closing entries, on the financial statements of a service business;

• apply the Generally Accepted Accounting Principles (GAAP) at each stage of the accounting cycle for a service business

Overall Expectations:

By the end of this course, students will:

• demonstrate an understanding of internal control procedures in the financial management of a business;

• evaluate the financial status of a business by analysing performance measures and financial statements;

• explain how accounting information is used in decision making.

Specific Expectations

Internal Control Procedures

By the end of this course, students will:

• describe the basic elements of an internal control system (e.g., separation of duties, prenumbered documents, rotation of staff);

• apply appropriate control measures used in accounting for assets (e.g., petty cash procedures, bank reconciliation procedures);

• describe the role of budgeted financial statements in planning, controlling, and evaluating business results (e.g., difference between budgeted and actual income statements);

• describe the role and work of an auditor

Financial Analysis

By the end of this course, students will:

• explain the importance of current assets and current liabilities when interpreting a balance sheet;

• analyse a company’s liquidity and solvency by using simple financial ratios (e.g., current ratio, debt ratio) and other financial analysis tools (e.g., comparative statements, trend analysis, common size statements);

• analyse a company’s profitability by using simple financial ratios (e.g., gross profit percentage, return on equity) and other financial analysis tools (e.g., comparative statements, trend analysis, common size statements).

Decision Making

By the end of this course, students will:

• describe how accounting information is used by company personnel (e.g., department managers, owners) in making decisions;

• explain the role of financial analysis in decision making from the standpoint of potential investors (e.g., mutual fund managers, institutional investors, individual investors);

• describe how accounting information is used by individuals or organizations outside the company (e.g., governments, Ontario Securities Commission, police, forensic accountants) in making decisions.