ACCT 2020 - Financial Accounting

Credits: 4
Hours/Week: Lecture 4Lab None
Course Description: This course includes the study of financial accounting concepts through the measurement, communication, and analysis of economic events for the benefit of investors, creditors, and other external users of financial accounting information. Emphasis is on the preparation and analysis of financial statements in a corporate annual report.
MnTC Goals
None

Prerequisite(s): Assessment score placement in MATH 0070  or above or completion of MATH 0030  or MATH 0060  with a grade of C or higher.
Corequisite(s): None
Recommendation: None

Major Content

1. Adjustments, Financial Statements, and the Quality of Earnings
2. Communicating and Interpreting Accounting Information
3. Financial Statements and Business Decisions
4. Investing and Financing Decisions and the Balance Sheet
5. Operating Decisions and the Income Statement
6. Reporting and Interpreting Bonds
7. Reporting and Interpreting Cost of Goods Sold and Inventory
8. Reporting and Interpreting Investments in Other Corporations
9. Reporting and Interpreting Liabilities and the Time Value of Money
10. Reporting and Interpreting Owners Equity
11. Reporting and Interpreting Sales Revenue, Receivables, and Cash
12. The Accounting Cycle
13. Reporting and Interpreting Long-Lived Assets
14. Analysis of Financial Statements

1. explain the nature and purpose of generally accepted accounting principles (GAAP), the objective of financial reporting, and related accounting assumptions and principles.
2. describe the components of the accounting conceptual framework including accounting and business terminology.
3. evaluate the impact of the omission of financial information on decision making.
4. apply the accounting equation to analyze business transactions and understand the impact on financial statements.
5. describe how internal controls are used to manage and control a firm’s resources, minimize risk, and ensure accurate reporting.
6. explain the financial accounting concepts in the disclosure of information in the footnotes of annual reports.
7. describe 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.

8. describe 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.

9. 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.

10. apply accounting practices to measure, classify, and report long-term assets including the acquisition, use, depreciation, and disposal of long-lived assets.

11. apply accounting practices to measure, classify, and report current and long-term liabilities.

12. apply issues relating to stockholders’ equity, including the issuance of stock, repurchase of stock, and dividends.

13. analyze how accounting transactions, the use of different valuation methods, and management estimates can affect assets, liabilities and equity, earnings, and other financial measures.

14. 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.

15. describe and apply financial performance measures and ratio analysis to compare financial results against expectations, industry standards, and competitors.

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