COURSE#: ACC2401.0003 Financial Accounting
SESSION / YEAR: Spring, 2007
Name: Jerry W. Rogers
Phone Number: (903)
675-6339 ext. 339
Faculty Fax# (903) 675-6263
Email Address: JRogers@TVCC.Edu (Not case specific)
COURSE INFORMATION:
Course# and Title:
Acc2401.0003 Financial Accounting
Beginning Date of
Session: Tuesday, January 16, 2007*
Ending Date of Session: Monday,
May 8, 2007*
*Official
dates according to TVCC Calendar – See documents specific to this course for
specific dates for this course.
Accounting
classes require a lot of work and discipline to stay on task and meet the due
dates with assignments and tests (reviews) whether taken in a regular classroom
environment or via distance education.
If you do not have the personal discipline, or feel that you cannot
learn that discipline in short order, then you should not register for this
course. More people either drop or fail
this course because they don’t have the personal discipline to prepare the
assignments in a timely manner than those who drop or fail because they cannot
do the assignments.
This syllabus
contains links that will be active from this document as of Tuesday, January
16, 2007.
TEXTBOOK(S) AND REQUIRED
MATERIALS
Title: FINANCIAL AND MANAGERIAL ACCOUNTING
Author: Needles, Powers, and Crosson
Publisher: Houghton Mifflin Company
Year Published: 2005
Edition: Seventh
ISBN: 0618-654054
CAUTION: When you contact any of the TVCC bookstores about the textbook, make
sure you identify to the bookstore personnel that you are taking the internet
course because a different textbook is used for classroom accounting classes.
The above referenced ISBN
number is a special number for a package of materials that have been put
together specifically for this course and contains these items: (1) the textbook FINANCIAL AND MANAGERIAL
ACCOUNTING by Needles, Peters, and Crosson,
Seventh Edition; (2) Windows General Ledger Software on the Student CD-ROM; (3)
HMAccounting Tutor; and (4) Electronic Working Papers
CD-ROM. (The ISBN Number for the
textbook alone is 0-618-39362-5. The
ISBN number for the Electronic Working Papers CD is 061840208X. The ISBN numbers for the other two items are
unknown.)
The textbook package for
the course may be purchased by mail, fax, phone, or in person through the
bookstore located on the
TVCC Bookstores on
campuses other than
The Athens Bookstore may
be contacted by mail by writing to the following address:
Attention: Bookstore
The bookstore may be
contacted by fax by using the following number:
903-675-6316
The bookstore may be
contacted by phone by using the following number:
903-675-6223
If contact is made with
the bookstore by email, fax, or phone, the student must have a credit card number
that may be used to purchase the course required materials. If a credit card is not available, the
student may still contact the bookstore to determine the price of the course
required materials and then payment may be made by mail.
While students are not
prohibited from purchasing textbooks or course materials from other sources,
care should be taken to secure the exact resources required. If the textbook
package is not purchased, the only two items required will be the textbook and
the Electronic Workings Papers CD. The
other two items in the textbook package were basically free and were added for
supplemental
Failure to acquire the textbook in time for the
submission of the first assignments due is not an excuse for the assignments
being late. Make arrangements early for the textbook. No other items from the textbook publisher
such as working papers or study guides are required. (Note:
Orders for this textbook package from outside sellers, such as
Amazon.com, have not proven successful.
They generally have the textbook only, but not the complete
package. Students have been successful
in obtaining the materials directly from the publisher. The publisher’s URL is
as follows. When you get to the site,
find the publisher’s bookstore and then identify the ISBN numbers you
seek. You may order with a credit card.
)
http://college.hmco.com/accounting/needles/fin_man_acc/2005e/students/ace/index.html.
Note: There is an underscore between the “fin” and the “man” and also between the “man” and the “acc” in the above URL (fin_man_acc). They do not show because of the underlining.
In addition to the
referenced textbook, the student MUST also have a late version of Microsoft Office® which contains Microsoft Word® and Microsoft
Excel®. For the assignments
requiring a word processor, a student may use a late version of WordPerfect®. Attachments from the instructor to the
students will be in Microsoft Word®
so the student must be certain that his/her version of WordPerfect® will open and read Word® documents. However,
the student must have Microsoft
Excel® in order to access the templates on the Electronic Working
Papers CD. (It
is highly recommended that the student have access to at least one computer
other than his/her own that has the described software that may be used in the
event the student’s computer should crash.)
COURSE
PREREQUISITES:
There
are no prerequisites for taking Financial Accounting.
COURSE POLICIES:
Specific assignments with
due dates will be provided electronically when the class begins. The assignments will be due on or before the
identified due date, and will not be
accepted late for credit. The
instructor will acknowledge receiving the assignments within 24 hours,
generally sooner. Any submission not
acknowledged within 24 hours of sending should be followed up by emailing the
instructor either through the email system for WebCT
or through the regular email system of
The most important thing
in any accounting class is EFFECTIVE TIME MANAGEMENT. A student can not expect to wait until a few
hours, or even a day or two, before an assignment is due and then expect to be
able to satisfactorily complete the assignment.
Many years of experience teaching accounting have proven to the
instructor that it can’t be done! You
may be the exception, but don’t bet on it!!!
Incomplete Grades
An “I” (incomplete grade)
is given at the discretion of the professor and may be given only when an
emergency or illness prevents the student from completing course
requirements. It will not be given
because a student fails to complete the requirement for the course during the
semester. The awarding of an “I” and its
subsequent replacement of an “I” by a grade shall be determined by the rules
and policies of the enrolling institution in the case of Virtual College of
Texas students. Some colleges do not allow
an “I”, or its equivalent, to be given, but instead require that a letter grade
be awarded.
For students enrolled
through
Student’s Responsibilities
This syllabus contains
information, policies and procedures for a specific course. By enrolling, the student agrees to read,
understand and abide by the policies, rules, regulations, and ethical standards
of
COURSE COMPETENCIES:
Upon completion of the
course, the student will have demonstrated a mastery of the objectives given in
the textbook for each chapter covered.
These objectives are given at the beginning of each chapter of study,
and then summarized at the end of the chapter.
These objectives are also part of this syllabus and follow. Mastery of these objectives shall be
demonstrated by successfully completing various assignments covering these
objectives. The assignments include
questions to be answered and submitted to the instructor; exercises and
problems to be worked and submitted to the instructor; and completion of
lengthy reviews over the materials designed to test the student’s mastery of
the materials.
Chapter 1 Learning
Objectives
At the completion of study of Chapter 1, the student will be able
to:
1. Define
accounting, identify business goals
and activities, and describe the role of accounting in making informed
decisions.
2. Identify
the many users of accounting information in society.
3. Explain
the importance of business transactions, money measure, and separate entity to
accounting measurement.
4. Describe
the corporate form of business organization.
5. Define
financial position, state the
accounting equation, and show how they are affected by simple transactions.
6. Identify
the four financial statements.
7. State the relationship of generally accepted accounting principles
(GAAP) to financial statements and the independent CPA’s report, and identify
the organizations that influence GAAP.
8. Define
ethics and describe the ethical
responsibilities of accountants.
Chapter 2 Learning
Objectives
At the completion of study of Chapter 2, the student will be able
to:
1. Explain, in simple terms, the generally accepted ways
of solving the measurement issues of recognition, valuation, and
classification.
2. Describe the chart of accounts and recognize commonly
used accounts.
3. Define double-entry
system and state the rules for double entry.
4. Apply the steps for transaction analysis and
processing to simple transactions.
5. Prepare a trial balance and describe its value and
limitations.
Supplemental Objective
6. Record transactions in the general journal and post
transactions from the general journal to the ledger.
Chapter 3 Learning Objectives
At the completion of study of Chapter 3, the student will be able
to:
1. Define net
income and its two major components, revenues
and expenses.
2. Explain how the income measurement issues of
accounting period, continuity, and matching are resolved.
3. Define accrual
accounting and explain three broad ways of accomplishing it.
4. State four principal situations that require
adjusting entries and prepare typical adjusting entries.
5. Prepare financial statements from an adjusted trial
balance.
Chapter 4 Learning Objectives
At the completion of study of Chapter 4, the student will be able
to:
1. Identify the principles of designing accounting
information systems.
2. State all the steps in the accounting cycle.
3. Describe the use and structure of spreadsheet
software and general ledger systems in computerized accounting systems.
4. Explain how accountants and businesses use the
Internet.
5. Explain the purposes of closing entries and prepare
required closing entries.
6. Prepare the post-closing trial balance.
Chapter 5 Learning Objectives
At the completion of study of Chapter 5, the student will be able
to:
1. State the objectives of financial reporting.
2. State the qualitative characteristics of accounting
information and describe their interrelationships.
3. Define and describe the conventions of comparability and consistency, materiality,
conservatism, full disclosure, and cost-benefit.
4. Explain management’s responsibility for ethical
financial reporting and define fraudulent
financial reporting.
5. Identify and describe the basic components of a
classified balance sheet.
6. Prepare multistep and
single-step classified income statements.
7. Evaluate liquidity and profitability using classified
financial statements.
Chapter 6 Learning
Objectives
At the completion of study of Chapter 6, the student will be able
to:
1. Identify the management issues related to
merchandising businesses.
2. Define and distinguish the terms of sale for
merchandising transactions.
3. Prepare an income statement and record merchandising
transactions under the perpetual inventory system.
4. Prepare an income statement and record merchandising
transactions under the periodic inventory system.
5. Define internal control and its basic
components, give examples of control activities, and describe the limitations
of internal control.
6. Apply internal control activities to common
merchandising transactions.
7. Apply sales and purchases discounts to merchandising
transactions.
Chapter 7 Learning
Objectives
At the completion of study of Chapter 7, the student will be able
to:
1. Identify
and explain the management issues related to short-term financial assets.
2. Explain cash, cash equivalents, and the importance of electronic funds transfer.
3. Identify types
of short-term investments and explain the financial reporting implications.
4. Define accounts receivable and apply the
allowance method of accounting for uncollectible accounts.
5. Define promissory note, and compute and record
promissory notes receivable.
6. Prepare a bank reconciliation.
Chapter 8 Learning
Objectives
At the completion of study of Chapter 8, the student will be able
to:
1. Identify and explain the management issues associated
with accounting for inventories.
2. Define inventory
cost and relate it to goods flow and cost flow.
3. Calculate the pricing of inventory, using the cost
basis under the periodic inventory system.
4. Apply the perpetual inventory system to the pricing
of inventories at cost.
5. State the effects of inventory methods and
misstatements of inventory on income determination, income taxes, and cash
flows.
6. Apply the lower-of-cost-or-market (LCM) rule to
inventory valuation.
Chapter 9 Learning Objectives
At the completion of study of Chapter 9, the student will be able
to:
1. Identify the management issues related to
recognition, valuation, classification, and disclosure of current liabilities.
2. Identify, compute, and record definitely determinable
and estimated current liabilities.
3. Distinguish contingent
liabilities from commitments.
4. Compute and record the liabilities associated with
payroll accounting.
Chapter 10 Learning
Objectives
At the completion of study of Chapter 10, the student will be able
to:
1. Identify the types of long-terms assets and explain
the management issues related to accounting for them.
2. Distinguish between capital and revenue expenditures,
and account for the cost of property, plant, and equipment.
3. Define depreciation
and compute depreciation under the straight-line, production, and
declining-balance methods.
4. Account for the disposal of depreciable assets.
5. Identify the issues related to accounting for natural
resources and compute depletion.
6. Identify the issues related to accounting for
intangible assets, including research and development costs and goodwill.
7.
Apply
depreciation methods to problems of partial years, revised rates, groups of
similar items, special types of capital expenditures, and cost recovery.
Chapter 11 Learning
Objectives
At the completion of study of Chapter 11, the student will be able
to:
1. Identify the management issues related to issuing long-term
debt.
2. Identify
and contrast the major characteristics of bonds.
3. Record
the issuance of bonds at face value and at a discount or premium.
4. Use
present values to determine the value of bonds.
5. Amortize
bond discounts and bond premiums using the straight-line and effective interest
methods.
6. Record
bonds issued between interest dates and year-end adjustments.
Supplemental Objectives
7. Account for the retirement of bonds and the conversion of
bonds into stock.
8. Explain
the basic features of mortgages payable, long-term leases, and pensions and
other postretirement benefits as long-term liabilities.
Chapter 12 Learning Objectives
At the completion of study of Chapter 12, the student will be able
to:
1. Identify
and explain the management issues related to contributed capital.
2. Identify
the components of stockholders’ equity.
3. Account
for cash dividends.
4. Identify
the characteristics of preferred stock, including the effect on distribution of
dividends.
5. Account
for the issuance of stock for cash and other assets.
6. Account
for treasury stock.
Chapter 13 Learning Objectives
At the completion of study of Chapter 13, the student will be able
to:
1. Prepare
a corporate income statement and identify the issues related to evaluating the
quality of earnings.
2. Show
the relationships among income taxes expense, deferred income taxes, and net of
taxes.
3. Describe
the disclosure on the income statement of discontinued operations,
extraordinary items, and accounting changes.
4. Compute
earnings per share.
5. Prepare
a statement of stockholders’ equity.
6. Account
for stock dividends and stock splits.
7. Calculate
book value per share.
Chapter 14 Learning Objectives
At the completion of study of Chapter14, the student will be able
to:
1. State
the principal purposes and uses of the statement of cash flows, and identify
its components.
2. Analyze
the statement of cash flows.
3. Use
the indirect method to determine cash flows from operating activities.
4. Determine
cash flows from investing activities.
5. Determine
cash flows from financing activities.
HOW TO DROP THIS COURSE:
To drop this course, the
drop process must be begun in the proper department of the enrolling
institution and follow the instructions supplied by the personnel there.
HOW TO ACCESS YOUR COURSE:
This course shall be
available on-line on Tuesday, January 16, 2007.
It may be accessed by going to: http://courses.tvcc.edu. A screen will open which asks the student to
log in and asks for the student’s
Please note this: Access to the course will be on
Tuesday, January 16, 2007. This course
will not officially begin until Monday, January 22, 2007, even though
One thing you should
definitely explore this first week is the process for communicating with the
instructor. The instructor will be
available this week and will respond to all emails. Another thing that should be explored this
first week is the publisher’s web site to learn how to get to the on-line tests
and to the other supplemental materials available from the publisher. The publisher’s web site may be accessed by
going to:
http://college.hmco.com/accounting/needles/fin_man_acc/2005e/students/ace/index.html.
(Note the underlines between
fin and man and between man and acc.)
Historically, the first
course in accounting has been taught as if all students taking the course were
taking it to become accountants, thus the emphasis was on producing financial
data. More recently, the emphasis has
shifted from teaching students to be producers of financial data to being users
of financial data. To be an effective
user, one must know the sources of the data on the financial statements. It is
in line with this more recent emphasis that this course is taught. The course will cover the basics of financial
report preparation. The course will also
place emphasis on using financial information in decision making.
The most important element
in the successful completion of any accounting course is EFFECTIVE TIME
MANAGEMENT. Learning accounting is much like building a house: a good
foundation must first be laid, and then the rest of the house is built on this
foundation. In building the house, certain
things must be done before other things.
After the good foundation is laid, the studs must be raised before the
ceiling joists can be put in place. The
ceiling joists must be in place before the rafters can be put in place. The rafters must be in place before the roof
decking can be put in place. And so it
goes. The order of completion is
important; one thing builds on another.
And so it is with accounting. A
good foundation in the basic concepts of accounting is important. After that good foundation, the course builds
on it. Concepts are presented in a
predetermined order. It is learning the
concepts at each step, and then building on them at the next step, that gets
the job done in accounting. The work in
accounting can not be postponed until shortly before an assignment is due and
then expect to be completed satisfactorily.
This course, Financial
Accounting (Acc2401), shall consist of chapters 1 through 14 from the
textbook. These fourteen chapters shall
be broken down into three separate study areas:
Unit I shall consist of chapters 1 - 4; Unit II shall consist of
chapters 5 - 10; Unit III shall consist of chapters 11 – 14.
Specific assignments for the
various chapters of study will be provided the first day of class, along with
due dates for each. Some assignments
will be due weekly and some will be due at the time the unit reviews are due.
The assignments that are due on a weekly basis have been selected to direct the
student’s attention to specific materials in the textbook. The assignments that
are due at the time of the unit reviews generally will require more time to
complete and will cover the materials in greater depth than the weekly
assignments.
The following four
paragraphs should be referred to regularly as the student studies each of the
chapters of the course. These paragraphs
contain an approach that the instructor has found to be effective to other
accounting students in the 20 plus years that the instructor has taught
accounting at the college level.
In doing
accounting, one should first read the Chapter
Objectives. These objectives,
located at the beginning of each chapter, identify to the student what the
student should learn from the chapter. The objectives will be developed in the
chapter. At the end of each chapter,
these objectives are summarized. The
student might look at these summaries first to get an idea of what the
objectives are, and what learning outcomes are expected from the chapter.
After
looking at the objectives, and the summaries of the objectives, the student
should next look to the Study Guide posted by the instructor. Within the Study Guide, the instructor has
summarized the materials from each of the chapters, explaining some of the
materials that often cause trouble for students, and pointing out important
materials.
With the
objectives in mind and knowing what the instructor has had to say about the
chapter, the student should then read
the chapter to get an idea as to the total content and see how all the
various materials presented tie together. This first reading should be to get
an overview of the materials from the chapter.
Attention should not be paid to minute details. At this point, the student just wants to get
an over-view of the materials of the chapter.
After
having read the chapter the first time, the student should go back and read the chapter a second time. This time, read more slowly, taking time to
reflect on the materials presented. If
example problems are presented, the student should work these problems to see
how they apply to what has been read. As the chapter is being read this second
time, the chapter objectives should be kept in mind. The chapter objectives are repeated on the
page margin where their explanation begins.
After reading
the chapter for the second time, the student should review the materials
presented in the HMAccounting Tutor.
After reviewing the materials in the HMAccounting
Tutor, the student should go to the publisher’s web site and take the ACE test for the chapter. After this second chapter reading, review of
the HMAccounting Tutor, and completing the ACE test,
the student should be ready to prepare
the various assignments
for the chapter.
The following outline is
given as an overview of the materials that will be covered in the course. The Roman numerals refer to chapter numbers.
I. Uses of
Accounting Information and the Financial Statements
…Accounting
as an Information System
…Decision
makers: The Users of Accounting
Information
…Accounting
Measurement
…The
Corporation as a Separate Entity
…Financial
Position and the Accounting Equation
…Communication
Through Financial Statements
…Generally
Accepted Accounting Principles
…Professional
Ethics and the Accounting Profession
…How
to Read an Annual Report
II.
Measuring Business Transactions
...Measurement
Issues
…Accounts
and the Chart of Accounts
…The
Double-Entry System: The Basic Method of Accounting
…Transaction
Analysis
…The
Trial Balance
…Recording
and Posting Transactions
III. Measuring Business Income
…Profitability
Measurement: The Role of Business Income
…Income
Measurement Issues
…Accrual
Accounting
…The
Adjustment Process
…Using
the Adjusted Trial Balance to Prepare Financial Statements
…Cash
Flow from Accrual-Based Information
IV. Accounting Information Systems
…Accounting
Information Systems: Principles of Design
…Overview
of the Accounting Cycle
…Computerized
Accounting Systems
…Accountants,
Businesses, and the Internet
…Closing
Entries
…The
Post-Closing Trial Balance
…Reversing
Entries
…The
Work Sheet
V. Financial
Reporting and Analysis
…Objectives
of Financial Information
…Qualitative
Characteristics of Accounting Information
…Conventions
that Help in the Interpretation of Financial Information
…Management’s Responsibility for
Ethical Reporting
…Classified
Balance Sheet
…Form
of the Income Statement
…Using
Classified Financial Statements
VI.
Merchandising Operations and Internal Control
…Management
Issues in Merchandising Businesses
…Terms
of
…Applying
the Perpetual Inventory System
…Applying
the Periodic Inventory System
…Internal
Control: Basic Components and Control Activities
…Internal
Control over Merchandising Transactions
…Accounting
for Discounts
VII. Short-Term Financial Assets
…Management
Issues Related to Short-Term Financial Assets
…Cash
and Cash Equivalents
…Short-Term
Investments
…Accounts
Receivable
…Notes
Receivable
…Preparing
a Bank Reconciliation
VIII. Inventories
…Management
Issues Associated with Accounting for Inventories
…Inventory
Cost and Goods Flow
…Methods
of Pricing Inventory at Cost under the Periodic Inventory System
…Pricing
Inventory under the Perpetual Inventory System
…Comparison
and Impact of Inventory Decisions and Misstatements
…Valuing
Inventory at the Lower of Cost or Market (LCM)
…Valuing
Inventory by Estimation
IX.
Current Liabilities
…Management
Issues Related to Accounting for Current Liabilities
…Common
Categories of Current Liabilities
…Contingent
Liabilities and Commitments
…Payroll
Accounting
X. Long-Term
Assets
…Management
Issues Related to Accounting for Long-Term Assets
…Acquisition
Cost of Property, Plant, and Equipment
…Accounting
for Depreciation
…Disposal
of Depreciable Assets
…Accounting
for Natural Resources
…Accounting
in Intangible Assets
…Special
Problems of Depreciating Plant Assets
XI.
Long-Term Liabilities
…Management
Issues Related to Long-Term Debt
…The
Nature of Bonds
…Accounting
for Bonds Payable
…Using
Present Value to Value a Bond
…Amortization
of Bond Discounts and Premiums
…Other
Bonds Payable Issues
…Retirement
of Bonds
…Other
Long-Term Liabilities
XII. Contributed Capital
…Management
Issues Related to Contributed Capital
…Components
of Stockholders’ Equity
…Dividends
…The
Characteristics of Preferred Stock
…Accounting
for Stock Issuance
…Accounting
for Treasury Stock
XIII. The Corporate Income Statement and the
Statement of Stockholders’ Equity
…Performance
Measurement: Quality of Earnings Issues
…Income
Taxes Expense
…Nonoperating Items
…Earnings
Per Share
…The
Statement of Stockholders’ Equity
…Accounting
for Stock Dividends and Stock Splits
…Book
Value
XIV. The Statement of Cash Flow
…Overview
of the Statement of Cash Flows
…Analyzing
the Statement of Cash Flows
…Preparing
the Statement of Cash Flows: Operating Activities