ACCT 2230 Intermediate Accounting I

The primary function of financial accounting is to provide useful financial information to users external to the business enterprises. The focus of financial accounting is on the information needs of investors and creditors. This course is a study of accounting principles and procedures with emphasis on analysis, interpretation, and controls required for both the business and providing external entities useful financial information. Financial statements studied include balance sheet, income statement and statement of cash flows. Besides financial statements, students will study income measurement and profitability analysis, time value of money concepts, and inventories. Prerequisite: Completion of ACCT 2020. (3 lect.)

Credits

3 credits

Transfer Status

Equivalent to UW.

Major Topics

• Environment and Theoretical Structure of Financial Accounting
• Review of the Accounting Process
• The Balance Sheet and Financial Disclosures
• The Income Statement and Statement of Cash Flows
• Income Measurement and Profitability Analysis
• Time Value of Money Concepts
• Cash and Receivables
• Inventories: Measurement
• Inventories: Additional Issues

Outcomes

In order to successfully complete this course, the student will:

1. Describe the function and primary focus of financial accounting

2. Explain the difference between cash and accrual accounting.

3. Record adjusting journal entries in general journal format, post entries, and prepare an adjusted trial balance.

4. Prepare and interpret the four basic financial statements.

5. Examine the purpose of the balance sheet and understand its usefulness and limitations.

6. Examine the purpose of the income statement and statement of cash flows.

7. Analyze the general objective of the timing of revenue recognition.

8. Explain the difference between simple and compound interest.

9. Compute the future and present value of a single amount, an ordinary annuity and an annuity due.

10. Define what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements.

11. Explain the difference between a perpetual inventory system and a periodic inventory system.

12. Differentiate between the specific identification, FIFO, LIFO, and average cost methods used to determine the cost of ending inventory and cost of goods sold.

13. Apply the lower-of-cost-or-market rule used to value inventories.

14. Compute ending inventory and cost of goods sold using the gross profit and retail inventory method.

15. Analyze the primary differences between U.S. GAAP and IFRS.

Other Information

Any information placed here must be adhered to by all instructors:

For textbook information, contact CWC Accounting Instructor.  Textbook must be coordinated with on campus textbook and UW Business College textbook.