|Topic ||Lesson Topic ||Subtopics ||Objectives
||Accounting for Business Today
- The Purpose and Use of Financial Information
- Generally Accepted Accounting Principles (GAAP)
- Business Ethics
- Careers in Accounting
- Describe the users of accounting information, their informational needs, and the people responsible for providing this information.
- Explain why ethics and personal integrity are important issues in the practice of accounting.
- Review the importance of GAAP in relation to various standard bodies, including the SEC, FASB, and IASB.
||Recording Business Information
- The Accounting Cycle
- Journalizing the Transactions
- Posting to the Ledger
- The End of the Accounting Period
- The Unadjusted Trial Balance
- Adjusting Entries
- The Adjusted Trial Balance
- Financial Statements
- Closing Journal Entries
- Post-Closing Trial Balance
- Overview of the Accounting Cycle
- List the steps in the accounting cycle.
- Describe the various source documents required for processing an accounting transaction.
- Explain the processes of journalizing and posting.
- Outline the process of balancing and its importance.
- List the different stages of a trial balance.
- Outline the process of entering adjustment entries to journals.
- Identify different financial statements that can be completed at the end of an accounting cycle.
- Describe the process of closing accounts and explain why it is important.
- Fundamental Accounting Equation
- Income Statements
- Statement of Owner's Equity
- Balance Sheet
- Financial Statements
- Define assets, liabilities, and equity.
- State the fundamental accounting equation.
- Explain the elements of an income statement, and explain its purposes and uses.
- Define the elements of a statement of owner's equity (SOE,) and explain its purposes and uses.
- List and explain the elements of a balance sheet, and explain their purposes and uses.
||Journalizing and Posting Transactions
- Double-entry Accounting Debits and Credits
- Using T-accounts
- Entering and Analyzing Transactions
- Preparing a Trial Balance
- Define the terms debit and credit.
- Understand the role of double-entry bookkeeping in journalizing and posting transactions.
- Record and analyze transactions using T-accounts while maintaining the integrity of the accounting equation.
- Post and analyze transactions using ledgers and journals.
- Explain the importance and purpose of a trial balance.
||Preparing Adjusting Entries
- Accrual Versus Cash Basis of Reporting
- Recognition and Matching Principles
- Journalizing and Posting Adjusting Entries
- Prepaid Expenses and Unearned Revenue
- Compare and contrast accrual and cash basis reporting methods in relation to the accounting period principle.
- Explain the importance of revenue recognition and the matching principle.
- Identify various types of adjusting entries for accruals, and describe how accounts are adjusted.
- Record adjusting entries for prepaid expenses and unearned revenue.
||The Accounting Cycle
- Preparing the Adjusted Trial Balance
- Calculating Net Income or Loss
- Journalizing and Posting Closing Entries
- Preparing the Post-closing Trial Balance
- The Accounting Cycle and Classification Structure
- Understand and complete an adjusted trial balance.
- Prepare financial statements from an adjusted trial balance.
- Explain the closing process including the use of temporary and permanent accounts and record closing entries.
- Create a post-closing trial balance.
- Name the steps in the accounting cycle.
- Describe the classification structure and categories.
- Prepare a classified balance sheet.
||Assets: Cash and Controls
- Cash Transactions
- Establishing Internal Controls
- Cash Receipts and Disbursements
- Reconciling the Bank Statement
- Identify the various types of cash transactions including receipts and disbursements.
- Explain the purpose and use of a petty cash fund.
- Describe the purposes, principles, and limitations of limitations of internal controls.
- Identify the major guidelines and internal measures for controlling cash receipts and disbursements.
- Perform a bank reconciliation.
||Assets: Sales and Receivables
- Sales Journal and Accounts Receivable Ledger
- Recognizing Accounts Receivable
- Sales Returns and Allowances
- Accounting for Bad Debts
- Explain the purpose of the sales journal and the Accounts Receivable ledger and post entries to both.
- Describe how accounts receivable are recognized and valued.
- Record transactions for different types of credit sales.
- Record transactions for sales allowances and returns.
- Describe how to estimate bad debt expense.
- Post adjusting entries using the percent of sales, percent of A/R, and aging of A/R methods.
||Assets: Inventory Valuation
- Accounting for Inventory: Physical Count, Costs, and Controls
- Inventory Closing Methods
- Valuing Inventory and Lower of Cost or Market (LCM)
- Describe the physical elements, controls, and costs that make up inventory valuation.
- Explain inventory closing.
- Calculate the cost of inventory using the specific identification, first-in first-out, last in-first out, or weighted average method.
- Determine the value of inventory using the Lower of Cost or Market method.
||Acquisition of Property, Plant, and Equipment
- Acquisition of Property, Plant, and Equipment
- Depreciation of Property, Plant, and Equipment
- Disposition of Property, Plant, and Equipment
- Accounting for Natural Resources
- Accounting for Intangible Assets
- Record the costs associated with the acquisition of property, plant, and equipment.
- Account for subsequent improvements of property, plant, and equipment.
- Define the term depreciation, and utilize particular methods to record depreciation expense.
- Record the appropriate entries for the disposal of plant, property, and equipment for a realized gain or loss.
- Explain the procedures for acquiring and accounting for natural resources.
- Identify the procedures for acquiring and accounting for intangible assets.
||Liabilities: Purchasing and Payables
- Purchasing and the A/P Ledger
- Recording Account Payables
- Purchase Returns and Allowances
- Explain the purpose of and prepare entries for the purchase order journal and the accounts payable (A/P) ledger.
- Describe how accounts payable are recognized and valued, and then record transactions for different types of payables.
- Analyze and record transactions for returns and allowances.
||Liabilities: Notes Payable and Other Current Liabilities
- Classifying Current Liabilities
- Notes Payable
- Taxes Payable
- Accounting for Contingent Liabilities
- Describe common types of liabilities, methods for estimating their values, and their implications for accounting purposes.
- Define short-term notes payable and demonstrate the ability to record journal entries for these transactions.
- Discuss how deferred taxes are accounted for and the journal entries that are required to account for these items.
- Explain how to account for contingent liabilities and the journal entries needed to record these liabilities.
||Liabilities: Employee and Payroll Accounting
- Employee versus Contractor
- Recording Wages Payable
- Accounting for Employee Benefits: Health, Pension, and Vacation
- Legal Responsibilities: Federal Withholdings and Reporting
- Determine if a person is an independent contractor or an employee using various criteria.
- Compute wages payable for full-time, part-time, salaried, hourly, commission, and piece-rate employees.
- Demonstrate the ability to calculate payroll tax deductions and liabilities including vacation, health, and pension-related transactions.
- Describe the responsibilities for withholding and submitting payroll taxes to the federal government.
||Accounting Information Systems
- Foundation Principles for Accounting Information Systems
- Elements of an Accounting Information System
- Use of Special Journals in an Accounting Information System
- Use of the Sales Journal in an Accounting Information System
- Use of a Cash Receipts Journal in an Accounting Information System
- Use of a Purchases Journal in an Accounting Information System
- Use of a Cash Disbursements Journal in an Accounting Information System
- Technology Solutions for Small, Mid-Sized, and Large Companies
- Identify the fundamental principles of an accounting information system.
- Describe the components of an accounting information system.
- Explain the need for special journals and how to post to and from these journals.
- Explain the use of subsidiary ledgers in an accounting system.
- Explain the impact of technology on small, mid-size, and large companies' accounting systems.