Discipline: ACTG

Course: 211

COURSE NAME: ACTG 211. Fundamentals of Financial Accounting

A. Catalog Entry

Three hours lecture.

Prerequisite: Sophomore standing.

A comprehensive introduction to the fundamental concepts and

procedures in accounting for proprietorships, partnerships and corporations. Emphasis is on the user perspective. ACTG 211

is a business core requirement.

B. Detailed Description of Content of Course

The content of this course includes the basic elements of financial statements (assets, liabilities, equity, revenues, expenses, gains, losses, and profit). This is accomplished through a detailed study of financial statements and the impact that typical business transactions have on the financial statement elements. Such study is based on Generally Accepted Accounting Principles (GAAP) as applied to the accrual basis of accounting, and as contrasted with cash basis accounting. The study of financial statements will focus primarily on the income statement, balance sheet, and statement of cash flows. Typical business transactions themselves are also examined including the calculations (such as interest, dividends, gains, etc.) Necessary to develop them. Also introduced, are the data flows (primarily documents) within an organization that support the capture of transnational and other financial resources of the firm. Throughout the course, the use of accounting information in decision making will be studied..

C.        Detailed Description of Conduct of Course

The study of transaction and their impact on the financial statements will require some knowledge of double entry accounting and the accounting process. However, mechanics in general will be greatly de-emphasized (or left to the computer). Instead, the course will focus on the use of accounting information in decision making.

The course will include some exercises and/or assignments that include written communication. This would most likely take the form of, but not be restricted to, essay questions on tests or short papers. Test and homework problems will be oriented toward problem solving abilities, not number crunching. Knowing which formulas to apply and how to interpret the results of a calculation will be emphasized, not just how to do the calculation. In order to develop and access communication skills, at least one third of the class time will be devoted to group work or other activities where the student is actively engaged in an individual or group exercises or presentations. Lab time can be reserved for some of these exercises. The remaining class time would follow the general lecture format.

This course will require the use of a commercial, multi-module accounting package of the type used by small and medium sized businesses. The software used should include typical subsystems such as sales order processing, AR, purchase orders, AP, inventory management, financial reporting, and payroll. The use of these modules can be coordinated with the related topics being taught in class. In addition to the use of a commercial accounting software product, several other homework assignments or lab experiences should be given which require the use of spreadsheets, expert systems, on-line database, or other decision support software.

D.        Goals and Objectives of the Course.

Students who complete this course successfully should be able to:

1.         Analyze business transactions by:

a.         making necessary calculations of interest, discounts, etc.

b.         determining the financial statement impact of the transaction.

2.         Construct basic financial statements from a list of events or f/s elements.

3.         Use accounting information to plan, evaluate performance, and make decisions.

4.         Explain the differences between the primary types of business organizations, how each type of organization is established, and the various benefits and burdens of each.

5.         Identify basic controls contained in or missing from given descriptions.

6.         Calculate the tax effect of gains and losses.

7.         Use and extract data from automated accounting software.

E.         Assessment Measures

Assessment of the objectives listed in part D will be made via tests, homework assignments and projects. Individual student grades will be constructed from their performances on these measures.

F.                  Other Course Information

None.

G.        Review and Approval

Date                    Action      Reviewed by

September 10, 2001      Reviewed    Dr. Dan Davidson, Chair

                                    Department Curriculum Committee