Financial accounting communicates economic information and serves as a tool for business decision making. Through financial accounting, accountants track how money circulates in an organization. This course provides an understanding of the fundamental principles of double entry accounting as applied to practical business situations. Emphasis is given to the following: debit and credit rules of accounting, T-accounts, journalizing transactions, adjusting entries for revenue and expense items, inventories, internal control with emphasis on cash, and accounting information systems. Students will be able to prepare and use an income statement, balance sheet, and statement of cash flows.
Complete the steps of the accounting cycle for a given business situation.
Cash and Internal Controls
Prepare a bank reconciliation.
Prepare petty cash entries.
Evaluate internal control over cash.
Accounting Information Systems and Special Journals
Prepare special journals from business transactions.
Identify accounting information system principles.
Identify accounting information system components.
Prepare multiple-step and single-step income statements.
Estimate inventory using retail inventory method and gross profit method.
Calculate the lower of cost or market for inventory.
Compute inventory balances using different inventory valuation methods.
Describe periodic and perpetual inventory systems.
Prepare journal entries for merchandising activities.
Calculate revenues, expenses, and income.
Identify merchandising terms.
Completing the Accounting Cycle
Prepare financial statements using the adjusted trial balance.
Prepare a classified balance sheet.
Prepare closing entries, post-closing trial balance, and reversing entries.
Identify the steps of the accounting cycle.
Preparing Financial Statements
Apply the concepts of adjusting entries to principal accounting situations.
Identify accounting adjustments.
Differentiate between accrual basis and cash basis accounting.
Prepare a trial balance.
Post transactions from the general journal to the ledger.
Illustrate transactions using T-accounts and journal entries.
Examine the use of debits and credits.
Accounting Information and Financial Statements
Discuss the four basic financial statements.
Define different types of business organizations.
Recognize the role accounting plays in business.
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Transferability of credit is at the discretion of the receiving institution. It is the student’s responsibility to confirm whether or not credits earned at University of Phoenix will be accepted by another institution of the student’s choice.