Equivalency Details

Introduces accounting concepts, principles, and practices followed in the preparation of external financial reports. Alternative accounting treatments and policies relative to asset valuation, liability measurement, and income determination are discussed. Emphasis on interpretation, uses, and limitations of financial reports.

This course provides students with a comprehensive treatment of the complete accounting cycle for both service and merchandising businesses in accordance with Generally Accepted Accounting Principles (GAAP). The course also focuses on accounting systems, concepts, issues and the preparation and analysis of financial statements. Upon completion of this course, students should be able to: Perform all the steps of the accounting cycle in accordance with GAAP for service and merchandising businesses. Prepare financial statements for sole proprietorships, partnerships and corporations. Calculate quantities and dollar amounts of merchandise inventory and cost of goods sold using GAAP and IRS methodologies. Provide for uncollectible accounts receivable and calculate the estimated amount of accounts receivable that will ultimately be collected. Calculate depreciation, depletion and amortization, and calculate the book value of plant and intangible assets. Broadly describe the principles of internal control over assets and the accounting profession's Code of Ethics. Discuss the income tax consequences resulting from the use of alternate GAAP methodologies. Describe the differences among cash, accrual and other comprehensive bases of accounting. Make calculations and prepare journal entries for various end-of-period adjustments. Make calculations and prepare journal entries for the issuance and redemption of debt and equity securities by corporations.