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.
Illustrate transactions using T-accounts and journal entries.
Post transactions from the general journal to the ledger.
Prepare a trial balance.
Preparing Financial Statements
Differentiate between accrual basis and cash basis accounting.
Identify accounting adjustments.
Apply the concepts of adjusting entries to principal accounting situations.
Completing the Accounting Cycle
Identify the steps of the accounting cycle.
Prepare closing entries, post-closing trial balance, and reversing entries.
Prepare a classified balance sheet.
Prepare financial statements using the adjusted trial balance.
Identify merchandising terms.
Calculate revenues, expenses, and income.
Prepare journal entries for merchandising activities.
Describe periodic and perpetual inventory systems.
Compute inventory balances using different inventory valuation methods.
Calculate the lower of cost or market for inventory.
Estimate inventory using retail inventory method and gross profit method.
Prepare multiple-step and single-step income statements.
Accounting Information Systems and Special Journals
Identify accounting information system components.
Identify accounting information system principles.
Prepare special journals from business transactions.
Cash and Internal Controls
Evaluate internal control over cash.
Prepare petty cash entries.
Prepare a bank reconciliation.
Applying the Accounting Cycle
Complete the steps of the accounting cycle for a given business situation.
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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.