ACCT 2301 Learning Objectives and Appendix Information
Financial Accounting Fundamentals 2007 ed, John J. Wild
Chapter 1
Explain the purpose and importance of accounting in the information age.
Identify users and uses of accounting.
Identify opportunities in accounting and related fields.
Explain why ethics are crucial to accounting.
Explain, define and apply General Accepted Accounting Principles.
Identify and prepare basic financial statements and explain how they interrelate.
Analyze business transaction using the accounting equation.
Chapter 2
Explain the steps in processing transactions.
Describe source documents and their purpose.
Describe an account and it use in recording transactions.
Define debits and credits and explain their role in double-entry accounting.
Analyze the impact of transactions on accounts and financial statements.
Record transactions in a journal and post entries to a ledger.
Prepare and explain the use of a trial balance.
Prepare financial statements from business transactions.
Chapter 3
Explain the importance of periodic reporting and the time period principle.
Explain accrual accounting and how it improves financial statements.
Identify the types of adjustments and their purpose.
Explain why temporary accounts are close each period.
Identify the steps in the accounting cycle.
Explain and prepare a classified balance sheet.
Explain how accounting adjustments link to financial statements.
Compute the current ratio and describe what it revels.
Explain and prepare an adjusted trial balance.
Prepare financial statements form an adjusted trial balance.
Describe and prepare closing entries.
Explain and prepare a post-closing trial balance.
Chapter 4
Describe merchandising activities and identify income components.
Identify and explain the inventory asset of a merchandising company.
Describe both perpetual and periodic inventory systems.
Analyze and record transactions for merchandise purchases using a perpetual system.
Analyze and record transactions for merchandise sales using a perpetual system.
Define and prepare multiple-step and single-step income statements.
Optional: Appendix 4A Record and compare merchandising transactions using both period and perpetual inventory systems.
Chapter 5
Appendix 5A: Compute inventory in a periodic system using the methods of FIFO, LIFO, and weighted average.
Optional:
Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and moving average.
Chapter 6
Define internal control and identify its purpose and principles.
Define cash and cash equivalents.
Prepare a bank reconciliation.
Chapter 7
Describe account receivable and how they occur and are recorded.
Describe a note receivable and the computation of its maturity date and interest.
Apply allowance methods to account for uncollectible accounts receivable.
Estimate uncollectibles using the percentage of accounts receivable method.
Chapter 8
Describe plan assets and issues in accounting for them.
Apply the cost principle to compute the cost of plant assets.
Explain depreciation and the factors affecting its computation.
Compare and analyze alternative depreciation methods.
Distinguish between revenue and capital expenditures.
Account for asset disposal through discarding or selling an asset.
Account for natural resource assets and their depletion.
Account for intangible assets.
Chapter 9
Describe current and long-term liabilities and their characteristics.
Identify and describe known current liabilities.
Prepare entries to account for short term notes payable.
Compute and record employee payroll deductions and liabilities.
Explain how to account for contingent liabilities.
Account for estimated liabilities, including warranties and bonuses.
Chapter 10
Compare bond financing with stock financing.
Prepare entries to record bond issuance and bond interest expense.
Optional:
Compute and record amortizations of bond discount and premium.
Chapter 11
Identify characteristics of corporations and their organization.
Describe the components of stockholders’ equity.
Explain the characteristics of common and preferred stock.
Explain the items reported in retained earnings.
Record the issuance of corporate stock.
Record transactions involving cash dividends.
Account for stock dividends and stock splits.
Distribute dividends between common and preferred stock.
Record purchases and sales of treasury stock and the retirement of stock.
Chapter 12
Explain the purpose and importance of cash flow information.
Distinguish between operating, investing, and financing activities.
Identify and disclose noncash investing and financing activities.
Describe the format of the statement of cash flows.
Prepare the statement of cash flows.
Compute cash flows from operating using the indirect method.
Determine cash flows from both investing and financing activities.
Optional:
Appendix 12A—Illustrate the use of a spreadsheet to prepare a statement of cash flows.
Appendix 12B—Compute the cash flows from operating activities using the direct method.
Chapter 13
Explain the purpose of analysis.
Identify the building blocks for analysis.
Describe comparisons in analysis.
Identify the tools of analysis.
Explain and apply the methods of horizontal analysis.
Describe and apply methods of vertical analysis.
Define and apply ratio analysis.