Portland Community College | Portland, Oregon

This is the complete traditional accounting principles course. The course emphasizes the theoretical foundations of accounting and analytical skills needed by business and accounting students. This course emphasis is on the application of Generally Accepted Accounting Principles (GAAP) to the recording and reporting of financial information, the underlying theoretical foundations of accounting, and the analytical skills needed by business and accounting students. Those with financial record-keeping responsibilities in their current employment will find it essential.

An understanding of accounting is necessary to examine the performance and financial health of business. For this reason, accounting is often referred to as the ‘language of business’. This course is the ideal way for students to acquire a valuable skill as well as begin to develop an appreciation of the role of accounting in the evaluation and management of a business. Accordingly, it is recommended as a course both for students interested in business generally, and for those planning a career in accounting.

Upon successful completion of the course students should be able to:

1. Describe the purpose of accounting and its role in business and society.
2. Explain common balance sheet and income statement items and how they fit in the accounting equation.
3. Analyze and record the impact of basic business events on account balances within the accounting cycle in accordance with U.S. Generally Accepted Accounting Principles.
4. Create the income statement and balance sheet using account balances in accordance with U.S. Generally Accepted Accounting Principles.
5. Describe the purpose and principles of internal controls.
6. Conduct basic analysis and interpretation of the income statement, balance sheet, and cash flow statement to aid in stakeholder decision making.
7. Demonstrate an understanding of inventory, receivables, long-lived assets, liabilities, and stockholder's equity and recommend appropriate accounting treatment.

The objectives of assessment should include demonstrated mastery of accounting theory and procedures, to include the skills and competencies listed herein:

Assessment methods may include the following:  

• Objective examinations such as multiple choices, short answer, etc.  
• Exercise and problem test items.  
• Problem assignments that demonstrate the application of appropriate accounting procedures.  
• Written assignments.

In addition, assessment choices may also include:

• Participation in class activities.
• Any combination of other methods, including quizzes, group activities, presentations, practice sets, case studies or research assignments.

At the beginning of the course, the instructor will detail the methods used to evaluate student progress and the criteria for assigning a course grade.

• Purpose of accounting
• Generally Accepted Accounting Principles (GAAP)
• Ethics
• Accounting equation
• Transaction analysis, double-entry bookkeeping and debits and credits, journals and ledgers
• Accounting cycle, adjusting the accounts, closing entries, preparing the 4 financial statements
• Accounting for merchandising businesses
• Inventory systems, inventory cost flow assumptions
• Internal control principles, accounting assumptions, principles and constraints
• Accounts receivable, notes receivable, other receivables
• Costing plant assets, depreciation, disposals of plant assets, intangible assets
• Current liabilities
• Long-term liabilities
• Corporation characteristics, stock, treasury stock, and dividends
• Cash flow statements
• Financial statement analysis

COMPETENCIES AND SKILLS

• Analyze transactions to determine which accounts are involved and the subsequent effects on the basic accounting equation and financial statements.
• Journalize, Post to Ledger, Trial Balance, Adjusting Entries, Adjusted Trial Balance, preparation of Financial Statements (income statement, balance sheet and statement of cash flows).
• Timely reporting and better measurement of a company's economic performance (Double-entry system, effects of credit and delayed cash receipts).
• Cash candling procedures, separation of duties.
• Brief overview: GAAP, historical basis, international accounting rules (IFRS), ethical considerations, and technology.
• Inventory valuation (FIFO, LIFO, Avg.); A/R (receivable related ratios, credit terms, bad debt write-off methods); Capital Assets, Depreciation; S-T/L-T Liabilities (current portion of L-T debt, invoices); Retained Earnings (Dividends, Net Income effect).
• Ratio analysis, financial indicators (identify a company's strengths and weaknesses, and forecast future performance).