ACCT 2230 Intermediate Accounting I

The primary purpose of financial accounting is to deliver relevant financial information to external users, such as investors and creditors. This course examines the fundamental principles and procedures of accounting with a strong emphasis on the analysis, interpretation, and controls necessary for providing accurate financial data to external entities. Key financial statements covered include the balance sheet, income statement, and statement of cash flows. Additionally, the student will explore topics such as income measurement, profitability analysis, time value of money concepts, and inventory accounting. Prerequisite: Completion of ACCT 2020. (3 lect.)

Credits

3 credits

Transfer Status

Transferable to UW

Major Topics

Theoretical structure of financial accounting
Review of the accounting process
Balance sheets and financial disclosures
Income statements and statements of cash flows
Time value of money concepts
Cash and receivables
Inventories measurement
Current liabilities and contingencies

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. Journalize adjusting and closing entries.

4. Construct the four basic financial statements.

5. Analyze the purpose, usefulness, and limitations of the balance sheet, income statement, and statement of cash flows.

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

7. Evaluate key elements of an internal control system for cash receipts and disbursements.

8. Calculate cost of goods sold and ending inventory valuation using specific identification, FIFO, LIFO, gross profit, retail inventory, and average cost methods.

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

10. Evaluate current liabilities, long-term liabilities, and contingencies to determine interest, payment, accrual, and classification.