BAC-131: Introduction to Financial Accounting

School
Business, Entrepreneurship, and Professional Development
Division
Business & Economics
Department
Accounting
Academic Level
Undergraduate
Course Subject
Business Accounting
Course Number
131
Course Title
Introduction to Financial Accounting
Credit Hours
4.00
Instructor Contact Hours Per Semester
62.00 (for 15-week classes)
Student Contact Hours Per Semester
62.00 (for 15-week classes)
Grading Method
A-E
Pre-requisites
ENG-131 eligible AND (BMA-110 with a C grade or better OR eligible to take gateway MATH courses at HFC, OR satisfactory score on the math placement exam).
Catalog Course Description

Introduces basic financial accounting principles including the accounting cycle; merchandise accounting; income, asset, and liability measurements; and preparation and evaluation of financial statements.

Goals, Topics, and Objectives

Core Course Topics
  1. The Accounting Cycle
    1. Journalize events in the general journal.
    2. Post amounts to the general ledger.
    3. Journalize and post adjusting entries.
    4. Journalize and post closing entries.
    5. Prepare a post-closing trial balance.
  2. The Accrual Basis of Accounting
    1. Compare and contrast accrual and cash basis of accounting.
  3. Financial Statement Presentation and Interpretation
    1. Prepare a classified balance sheet in conformance with generally accepted accounting principles (GAAP).
    2. Prepare a multi-step income statement in conformance with GAAP.
    3. Prepare a retained earnings statement in conformance with GAAP.
    4. Prepare and analyze a comprehensive stockholder's equity section of a balance sheet.
    5. Calculate the book-value-per-share and earnings-per-share of a corporation that has preferred and common shares of stock outstanding and that holds shares in the treasury.
    6. Employ horizontal, vertical, and ratio analysis tools to draw conclusions regarding the liquidity, profitability, and solvency of a given business entity.
  4. Assumptions, Principles, and Constraints of GAAP Accounting
    1. Discuss Monetary Unit, Economic Entity, Time Period, and Going Concern Assumptions.
    2. Discuss Revenue Recognition, Matching, Full Disclosure, and Cost Principles.
    3. Discuss Materiality Constraint.
  5. Asset and Current Liability Recognition, Recording, and Analysis
    1. Apply internal control principles by preparing a bank reconciliation.
    2. Calculate the value of inventory and cost of goods sold using the first in first out (FIFO), last in first out (LIFO), and average cost methods.
    3. Analyze the impact of these methods (FIFO, LIFO, and average cost) on financial statements.
    4. Calculate the value of depreciation expense and book value of plant assets using straight-line, units of activity, and accelerated depreciation methods.
    5. Analyze the impact of these methods on financial statements.
  6. Cash Flow Statement
    1. Prepare a cash flow statement using the indirect method in conformance with GAAP.
General Information

The change to the prerequisites are due to changes in the Math department due to Michigan Reconnect.

Assessment and Requirements

Assessment of Academic Achievement

Students will be assessed through tests, quizzes, in-class activities, outside assignments using an online homework management system, and/or class participation.

Outcomes

Satisfies Wellness Requirement
No
Effective Term
Fall 2023