Financial Accounting

Course Content from McGraw Hill
Course Number: ACC151 Download Course Syllabus
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Students in this financial accounting course explore basic accounting concepts and procedures and the interpretation of financial statements. The principles of accrual and deferral accounting are presented, including proper use of debits, credits, and fiscal year-end procedures. Students also examine merchandising transactions, inventory costing and valuation, cash management, and accounts receivable. The reporting of long-term assets, liabilities, and bonds are also discussed.

  • Self Paced
  • Accounting
  • Content by McGraw Hill
Online Course
Financial Accounting   +$59.00
Tutoring (included)
Proctoring   +$0.00
ACC151 eTextbook (a $180 value)   +$0.00
Credits 3

10/10/14 by dsykes

Excellent course even for someone who has been doing this for decades.

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Overall Rating
10/10/14 by dsykes

Excellent course even for someone who has been doing this for decades.

Content Rating
Overall Rating
8/19/14 by swebster84

The course had valuable information.

Content Rating
Overall Rating
8/19/14 by swebster84

The course had valuable information.

Content Rating
Overall Rating

Course Objectives

After completing this course, you will be able to:

  • Understand and use the four basic financial statements.
  • Define and apply the accounting equation.
  • Review and employ the principles of accrual and deferral accounting.
  • Record debits and credits, and close a fiscal year's books.
  • Make merchandising entries and handle inventory.
  • Practice cash accounting and internal control.
  • Account for receivables.
  • Understand and handle long-term assets and liabilities.






Introduction to Financial Accounting in the Business Environment

  • Accounting Today
  • Ethics in Accounting
  • The Basic Accounting Equation
  • Explain the purpose and importance of accounting.
  • Identify users and uses of, and opportunities in accounting.
  • Explain why ethics are crucial to accounting.
  • Explain generally accepted accounting principles and define and apply several accounting principles.
  • Define and interpret the accounting equation and each of its components.
  • Analyze business transactions using the accounting equation.
  • Identify basic financial statements and explain how they interrelate.


The Accounting Cycle: Analyzing and Recording Transactions

  • Recording Debits and Credits
  • General Ledger and Chart of Accounts
  • The Trial Balance
  • Preparing Financial Statements
  • Explain the steps in processing transactions and the role of source documents.
  • Describe an account and its use in recording transactions.
  • Describe a ledger and a chart of accounts.
  • Define debits and credits and explain double-entry accounting.
  • Analyze the impact of transactions on accounts and financial statements.
  • Compute the debt ratio and describe its use in analyzing financial condition.
  • 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.


Accounting Methods, Adjustments and Financial Statements

  • Accounting Adjustments
  • The Accounting Cycle
  • Types of Financial Statements
  • The Balance Sheet
  • The Income Statement
  • The Statement of Cash Flows and the Statement of Changes in Owners’ Equity
  • Identify the steps in the accounting cycle and discuss the role of accounting records in an organization.
  • Describe a ledger account and a ledger.
  • Understand how balance sheet accounts are increased or decreased.
  • Explain the double-entry system of accounting.
  • Explain the purpose of a journal and its relationship to the ledger.
  • Explain the nature of net income, revenue, and expenses.
  • Apply the realization and matching principles in recording revenue and expenses.
  • Understand how revenue and expense transactions are recorded in an accounting system.
  • Prepare a trial balance and explain its uses and limitations.
  • Distinguish between accounting cycle procedures and the knowledge of accounting.

Reporting Financial Results

  • Using Financial Statements
  • Explain the purpose of adjusting entries.
  • Describe and prepare the four basic types of adjusting entries.
  • Prepare adjusting entries to convert assets to expenses.
  • Prepare adjusting entries to convert liabilities to revenue.
  • Prepare adjusting entries to accrue unpaid expenses.
  • Prepare adjusting entries to accrue uncollected revenue.
  • Explain how the principles of realization and matching relate to adjusting entries.
  • Explain the concept of materiality.
  • Prepare and adjusted trial balance and describe its purpose.


Accounting for Merchandising Operations

  • Merchandising Costs
  • Inventory
  • Reporting Sales
  • Profitability
  • Describe merchandising activities and identify income components for a merchandising company.
  • Identify and explain the inventory asset and cost flows of a merchandising company.
  • Compute the acid-test ratio and explain its use to assess liquidity.
  • Compute the gross margin ratio and explain its use to assess profitability.
  • Analyze and record transactions for merchandise purchases using a perpetual system.
  • Analyze and record transactions for merchandise sales using a perpetual system.
  • Prepare adjustments and close accounts for a merchandising company.
  • Define and prepare multiple-step and single-step income statements.


Cash, Accounts and Notes Receivable

  • Internal Controls
  • Cash and Cash Equivalents
  • Bank Reconciliation
  • Accounting for Receivables
  • Notes Receivable
  • Define internal control and identify its purpose and principles.
  • Define cash and cash equivalents and explain how to report them.
  • Compute the days’ sales uncollected ratio and use it to assess liquidity.
  • Apply internal control to cash receipts and disbursements.
  • Explain and record petty cash fund transactions.
  • Prepare a bank reconciliation.
  • Describe accounts receivable and how they occur and are recorded.
  • Describe a note receivable, the computation of its maturity date, and recording of its existence.
  • Explain how receivables can be converted cash.
  • Compute accounts receivable turnover to help assess financial condition.
  • Apply the direct write-off method of accounts receivable.
  • Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.
  • Record the honoring and dishonoring of a note and adjustments for interest.


Inventories and Cost of Sales

  • Costing Methods and Company Benefits
  • Reporting Inventory and Cost of Goods Sold
  • Periodic and Perpetual Inventory Systems
  • Identify the items making up merchandise inventory.
  • Identify the cost of merchandise inventory.
  • Analyze the effects of inventory methods for both financial and tax reporting.
  • Analyze the effects of inventory errors on current and future financial statements.
  • Assess inventory management using both inventory turnover and days' sales in inventory.
  • Compute inventory in a perpetual system using the methods of specific identification FI FO, LIFO, and weighted average.
  • Compute the lower of cost or market amount of inventory.


Long-Term Assets

  • Tangible Assets
  • Intangible Assets
  • Natural Resources
  • Understand the term plant asset.
  • Compute depreciation expense under the various methods and understand its impact on the financial statements.
  • Compare and contrast revenue and capital expenditures.
  • Determine the cost of an intangible asset and test for impairment when necessary.
  • Calculate and record the cost of natural resources.


Current & Long-Term Liabilities

  • Current Liabilities
  • Accounting for Long-Term Liabilities
  • Stock and Bond Financing
  • Equity Reporting
  • Describe current and long-term liabilities and their characteristics.
  • Identify and describe known current liabilities.
  • Compute the times interest earned ratio and use it to analyze liabilities.
  • Prepare entries to account for short-term notes payable.
  • Compute and record employee payroll deductions and liabilities.
  • Compute and record employer payroll expenses and liabilities.
  • Account for estimated liabilities, including warranties and bonuses.
  • Explain the types and payment patterns of notes.
  • Compare bond financing with stock financing.
  • Assess debt features and their  implications.
  • Compute the debt-to-equity ratio and explain its use.


Corporate Reporting and Analysis

  • Corporations
  • Dividends
  • Retained Earnings
  • Earnings Per Share Management
  • Stock transactions
  • Treasury Stock
  • Identify characteristics of corporations and their organization.
  • Explain characteristics of Dividends
  • Explain the items reported in retained earnings.
  • Record the issuance of corporate stock.
  • Record transactions involving cash dividends, stock dividends, and stock splits.
  • Record purchases and sales of treasury stock and the retirement of stock.


Reporting Cash Flows

  • Cash Flow Statement Analysis
  • Operating and Financing Activities


  • Distinguish between operating, investing, and financing activities.
  • Describe how noncash investing and financing activities are disclosed.
  • Analyze the statement of cash flows.
  • Prepare a statement of cash flows.
  • Compute cash flows from operating activities using the indirect method.
  • Determine cash flows from both investing and financing activities.


Analysis of Financial Statements

  • Ratio Analysis
  • Horizontal and Vertical Analysis 
  • Explain the purpose and identify the building blocks of analysis.
  • Describe standards for comparisons in analysis.
  • Summarize and report results of analysis.
  • Explain and apply methods of horizontal analysis.
  • Describe and apply methods of vertical analysis.
  • Define and apply ratio analysis.


Review Topic

  • Review
  • Review

There are no prerequisites for this financial accounting course. StraighterLine does suggest that students complete Accounting I and II (ACC101 and ACC102) prior to enrolling in this course.

The required eTextbook for this course is included with your course purchase at no additional cost. More information on StraighterLine eTextbooks

Prefer the hard copy? Simply purchase from your favorite textbook retailer; you will still get the eTextbook for free.

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Enhancements in technology have changed how we live and learn. Working with learning resources across devices, whether smartphones, tablets, or laptop computers, empowers students to drive their own learning by putting increasingly intelligent technology into their hands. Whether the goal is to become an accountant, a businessperson, or simply an informed consumer of accounting information, Financial and Managerial Accounting has helped generations of students succeed. Its leading-edge accounting content, paired with state-of-the-art technology, supports student learning and elevates understanding of key accounting principles.

StraighterLine provides a percentage score and letter grade for each course. A passing percentage is 70% or higher.

If you have chosen a to award credit for this course, your final grade will be based upon that college's grading scale. Only passing scores will be considered by Partner Colleges for an award of credit.

There are a total of 1000 points in the course:

Topic Assessment Points
4 Graded Exam #1 125
7 Graded Exam #2 125
7 Cumulative Graded Midterm Exam 200
10 Graded Exam #3 125
12 Graded Exam #4 125
13 Cumulative Graded Final Exam 300
Total 1000

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