About our course, Financial Accounting

Course Description

• CRN: 80613, 80614, and 80864
• Number of Units: 4.0
• Prerequisites: None
• Co-requisites: None
• Advisories: None

This course is a study and analysis of accounting as an information system, its importance, and its use by external users such as investors, creditors, and other making decisions. The course covers the accounting cycle, the application of the generally accepted accounting principles, financial reporting, and statement analysis. The course will include issues relating to the valuation of assets, liabilities, and equity, the recognition of revenue and expenses, cash flow, internal controls, ethics, and International Financial Reporting Standards.

Student Learning Outcomes

As a result of the successful completion of this course, a student will be able to:

• Demonstrate the use of the accounting cycle to prepare the income statement, statement of owner’s equity, and balance sheet while applying the generally accepted accounting principles and concepts.

Course Content Outline

The substance of this course requires students to analyze, evaluate, investigate, compare, examine, contrast, and apply the theory, concepts, and principles utilized in managerial accounting. 

1. 1. Accounting in the Information Age
      1. Living in the Information Age
      2. Forms of Organization
      3. Activities in Organizations
      4. Users of Accounting Information
      5. Ethics and Social Responsibility
      6. Opportunities in Practice
      7. Using the Information - Return on Investment
   2. Financial Statements and Accounting Transactions
      1. Communicating with Financial Statements
      2. Generally Accepted Accounting Principles
      3. Transactions and the Accounting Equation
      4. Financial Statements
      5. International Financial Reporting Standards (IFRS)
      6. IFRS Financial Statements
      7. Using the Information - Return on Equity
   3. Analyzing and Recording Transactions
      1. Transactions and Documents
      2. Accounts and Double-Entry Accounting
      3. Analyzing Transactions
      4. Recording and Posting Transactions
      5. Trial Balance                                                                           
      6. Using the Information - Debt Ratio
   4. Adjusting Accounts for Financial Statements
      1. Timing and Reporting                                                               
      2. Cash and Accrual Accounting
      3. Adjusting Accounts
      4. Adjusted Trial Balance
      5. Preparing Financial Statements
      6. Accrual Adjustments in Later Periods
      7. Using the Information - Profit Margin
      8. Alternatives in Accounting for Prepaids
      9. Work Sheet Format for Adjusted Trial Balance
   5. Completing the Accounting Cycle
      1. Closing Process
      2. Work Sheet as a Tool
      3. Reviewing the Accounting Cycle
      4. Classified Balance Sheet
      5. Using the Information - Current Ratio
      6. Reversing Entries and Accounting Numbering
   6. Accounting for Merchandising Activities
      1. Merchandising Activities
      2. Accounting for Merchandise Purchases
      3. Accounting for Merchandise Sales
      4. Additional Merchandising Issues
      5. Income Statement Formats                                                         
      6. IFRS Income Statement Formats
      7. Using the Information - Acid-Test and Gross Margin
      8. Periodic and Perpetual Inventory Systems: Accounting Comparisons
   7. Merchandise Inventories and Cost of Goods Sold
      1. Assigning Costs to Inventory
      2. Inventory Items and Costs
      3. Inventory Analysis and Effects
      4. Other Inventory Valuations
      5. Using the Information - Merchandise Turnover and Days' Sales in Inventory     
      6. IFRS Inventory Valuations
      7. Assigning Costs to Inventory - Periodic Systems
   8. Accounting Information Systems
      1. Fundamental System Principles
      2. Components of Accounting Systems
      3. Special Journals in Accounting
      4. Technology-Based Accounting Information Systems
      5. Using the Information - Business Segments
      6. Special Journals under a Perpetual System
   9. Internal Control and Cash
      1. Internal Control
      2. Control of Cash
      3. Banking Activities as Controls
      4. Using the Information - Days' Sales Uncollected
   10. Receivables and Short-Term Investments
       1. Accounts Receivable
       2. Notes Receivable
       3. Converting Receivables to Cash before Maturity
       4. Short-Term Investments
       5. Using the Information - Accounts Receivable Turnover
   11. Plant Assets, Natural Resources, and Intangible Assets
       1. Cost of Plant Assets
       2. Depreciation
       3. Revenue and Capital Expenditures
       4. Disposals of Plant Assets                                                           
       5. IFRS Decreases and Increases in the Value of Plant Assets
       6. Natural Resources
       7. Intangible Assets
       8. Cash Flow Impacts of Long-Term Assets
       9. Using the Information - Total Asset Turnover
   12. Current Liabilities
       1. Characteristics of Liabilities
       2. Known (Determinable) Liabilities
       3. Estimated Liabilities
       4. Contingent Liabilities
       5. Using the Information - Times Interest Earned
       6. Payroll Reports, Records, and Procedures
   13. Long-Term Liabilities                                                             
       1. Basics of Bond Financing
       2. Bond Issuances
       3. Bond Retirement
       4. Long-Term Notes
       5. IFRS Accounting for Bonds and Notes
       6. Time Value of Money
       7. Leases and Pensions                                                           
   14. Corporations         
       1. Corporate Form of Organization                                                 
       2. Common Stock                                                                         
       3. Dividends                                                                               
       4. Preferred Stock                                                                         
       5. Treasury Stock                                                                         
       6. Earnings per Share                                                                   
       7. Price-Earnings Ratio                                                                 
       8. Dividend Yield                                                                             
       9. Book Value per Share
   15. Statement of Cash Flows
       1. Basics of Cash Flow Reporting
       2. Cash Flows from Operating
       3. Cash Flows from Investing
       4. Cash Flows from Financing
       5. IFRS Reporting Cash Flows
       6. Cash Flow on Total Assets
   16. Analysis of Financial Statements
       1. Basics of Analysis
       2. Horizontal Analysis
       3. Vertical Analysis
       4. Ratio Analysis
       5. Sustainable Income
   17. Ethical Issues
       1. Key Concept
       2. Fraud

Course Objectives

Upon successful completion of the course, a student should be able to demonstrate the following activities:

1. Explain the nature and purpose of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Explain and apply the components of the conceptual framework for financial accounting and reporting, including the qualitative characteristics of accounting information, the assumptions underlying accounting, the basic principles of financial accounting, and the constraints and limitations on accounting information.
2. Comprehend elements of the accounting cycle.
3. Evaluate, analyze, and criticize generally accepted accounting principles and concepts.
4. Pose problems and alternative solutions involving inventory control and depreciation of plant assets.
5. Identify and illustrate how the principles of internal control are used to manage and control the firm's resources and minimize risk.
6. Interpret company activity, profitability, liquidity, and solvency through the selection and application of appropriate financial analysis tools.
7. Define and use accounting and business terminology
8. Explain what a system is and how an accounting system is designed to satisfy the needs of specific businesses and users; summarize the purpose of journals and ledgers.
9. Apply transactions analysis, input transactions into the accounting system, process this input, and prepare and interpret the four basic financial statements.
10. Distinguish between cash basis and accrual basis accounting and their impact on the financial statements, including the revenue recognition and matching principles.
11. Explain the content, form, and purpose of the basic financial statements (including footnotes) and the annual report, and how they satisfy the information needs of investors, creditors, and other users.
12. Explain the nature of current assets and related issues, including the measurement and reporting of cash and cash equivalents, receivables and bad debts, and inventory and cost of goods sold.
13. Explain the valuation and reporting of current liabilities, estimated liabilities, and other contingencies.
14. Identify and illustrate issues relating to long-term asset acquisition, use, cost allocation, and disposal
15. Distinguish between capital and revenue expenditures.
16. Identify and illustrate issues relating to long-term liabilities, including issuance, valuation, and retirement of debt (including the time value of money)
17. Identify and illustrate issues relating to stockholders' equity, including issuance, valuation. repurchase of capital stock, and dividends.
18. Explain the importance of operating, investing, and financing activities reported in the Statement of Cash Flows.
19. Identify the ethical implications inherent in financial reporting and be able to apply strategies for addressing them.
20. Utilize horizontal, vertical, and ratio analysis to analyze the liquidity, solvency, and profitability of a company. Explain how the needs of investors and creditors are met through a company’s annual report, including the financial statements and their notes.

About your instructor, Erica Beam

Hello! My name is Erica L. Beam. My pronouns are she/her/hers. I teach full-time as faculty here at Solano Community College.

I am also part-time faculty at Modesto Junior College in Modesto, CA where I teach accounting courses and First Time in College (FTIC) courses.

I began my education at Modesto Junior College (MJC) where I earned an AS Degree in Business and an AA Degree in Accounting. I transferred to CSU Stanislaus and completed a BS Degree in Accounting. During my time at MJC, I began an internship at a CPA firm. It was at that CPA firm that I became a tax accountant and found a love for accounting!

I took that love for accounting and went to work for the IRS as a Revenue Officer. It wasn’t for me, but I learned a lot! I began the MBA program at CSU Sacramento and found my love for teaching. The rest is history!

On a personal note, I have two beautiful daughters and we live in the Sacramento area. My grandparents moved in with me back in 2020, they are the best people on Earth and I am happy to help take care of them. I proudly root for the San Francisco Giants and love all things Disneyland!