ACCT 2101 - Financial Accounting
4 Credits
Focuses on basic accounting concepts with emphasis on how financial information is used in decision-making, primarily by creditors and investors. It focuses on what the financial statements reveal about the credit worthiness and financial performance of companies organized as corporations. Topics covered include preparation, analysis and interpretation of financial statements including income statements, balance sheet, statement of owner’s equity, and cash flow statement. Additional topics include processing accounting information, end of period adjustments, closing entries, cash versus accrual accounting, receivables, inventory, income measurement, current and fixed assets and liabilities, stockholders’ equity, ratio analysis, cash flow, merchandising operations, and internal control. Meets lower-division transfer requirements for accounting and business administration majors at most 4-year institutions.
Pre-Requisites Requires completion of MATH 0840 or assessment into higher; recommended concurrent enrollment in BUS 1100 .
Major Content Areas
Current liabilities, non-current liabilities, and time value of money
Stockholders’ equity.
Cash flow statement,revenue recognition and income statement disclosures
Financial statement analysis using horizontal, vertical, and ratio analysis
Introduction and interpretation of the basic financial statements, income statements, balance sheet, statement of stockholders’ equity and statement of cash flow
Processing accounting information, and end of period adjusting and closing of accounts.
Merchandising operations and inventory flow assumptions
Cash and receivables and investments
Non-current assets
Learning Outcomes
Apply accounting practices to measure, classify and report current assets accounts receivable and bad debts, short-term investments, inventory and cost of goods sold, and prepaid expenses.
Understand the components of the accounting conceptual framework including accounting and business terminology.
Understand the nature and purpose of generally accepted accounting principles (GAAP), the objective of financial reporting and related accounting assumptions and principles.
Apply understanding of how operating, investing and financing activities are reported in the statement of cash flows and analyze the impact these activities have on a firm’s performance and solvency.
Apply issues relating to stockholders’ equity including the issuance of stock, repurchase of stock and dividends.
Analyze how accounting transactions, the use of different valuation methods and management estimates can affect assets, liabilities and equity, earnings and other financial measures.
understand how internal controls are used to manage and control a firm’s resources, minimize risk and ensure accurate reporting.
Apply accounting practices to measure, classify and report long-term assets including the acquisition, use, depreciation and disposal of long-lived assets.
Apply the accounting equation to analyze business transactions and understand the impact on financial statements.
Apply accounting practices to measure, classify and report current and long-term liabilities.
Understand and apply financial performance measures and ratio analysis to compare financial results against expectations, industry standards and competitors.
Understand and apply the information conveyed in each of the four basic financial statements and how this information may be used by management, investors, creditors and regulators.
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