ACCT 2180 - Intermediate Accounting 1

Objectives: Given a set of exam questions, the student will be able to:

1. Identify generally accepted accounting principles.
2. Identify how items are reported on an Income Statement.
3. Identify how items are reported on a Balance Sheet.
4. Explain accounting for receivables.
5. Describe accounting for Property, Plant & Equipment.
6. Define accounting for Natural Resources.
7. Explain accounting for Intangible Assets.

Outcome 2: Upon completion of this course, students will be able to apply accounting techniques at a paraprofessional level.

Objectives: Given a set of exam questions, the student will be able to:

1. Describe how cash items are reported.
2. Compute a dollar value for inventory.

1. Understand basic accounting information system
2. Identify and perform steps in the accounting cycle
3. Differentiate the cash basis of accounting from the accrual basis
4. Understand the difference between adjusting, closing and reversing entries

Income Statement and Related Information

1. Understand the uses and limitations of an income statement
2. Understand the reporting of accounting changes and errors
3. Explain how to report irregular items
4. Explain intraperiod tax allocation
5. Explain how to report other comprehensive income
6. Prepare an income statement and statement of retained earnings

Balance Sheet and Statement of Cash Flows

1. Explain the uses and limitations of a balance sheet
2. Prepare a balance sheet and statement of cash flows
3. Identify the purpose and content of the statement of cash flows
4. Understand the usefulness of the statement of cash flows
5. Determine which balance sheet information requires supplemental disclosure
6. Use ratios to analyze financial performance

Accounting and the Time Value of Money

1. Identify accounting topics where the time value of money is relevant
2. Distinguish between simple and compound interest
3. Understand the difference between present and future value
4. Understand the difference between an ordinary annuity and an annuity due
5. Solve future value and present value problems

Cash and receivables

1. Identify items considered cash and cash equivalents
2. Define receivables and identify the different types of receivables
3. Explain accounting issues related to recognition and valuation of receivables
4. Explain the fair value option
5. Describe how to report and analyze receivables
6. Understand internal controls as it pertains to cash

Valuation of inventories: a cost basics approach

1. Understand inventory classifications and different inventory systems
2. Determine the goods and costs included in inventory
3. Identify the effects of inventory errors on the financial statements
4. Describe and compare the cost flow assumptions used to account for inventories
5. Identify special issues related to LIFO
6. Understand why companies select given inventory methods

Inventories: additional valuation issues

1. Describe and apply the lower-of-cost or net realizable value rule
2. Explain when companies use the relative sales value method to value inventories
3. Discuss accounting methods related to purchase commitments
4. Determine ending inventory by applying the gross profit method
5. Determine existing inventory by applying the retail inventory method
6. Explain how to report and analyze inventory

Acquisition and disposition of property, plant and equipment

1. Identify the costs to include in initial valuation of property, plant and equipment
2. Describe the accounting problems with self-constructed assets
3. Describe the accounting problems with interest capitalization
4. Understand the accounting issues related to acquiring and valuing plant assets
5. Describe the accounting treatment for the disposal of property, plant and equipment
6. Describe the accounting treatment for costs subsequent to acquisition

Depreciation, impairments and depletion

1. Understand depreciation concepts and methods of depreciation
2. Explain special depreciation methods and other depreciation issues
3. Explain the accounting issues related to asset impairment
4. Explain the accounting procedures for depletion of natural resources
5. Explain how to report and analyze property, plant, equipment and natural resources
6. Understand income tax depreciation

Intangible Assets

1. Describe the characteristics, valuation, and amortization of intangible assets
2. Describe the accounting for various types of intangible assets
3. Explain the accounting issues recording goodwill
4. Explain impairment procedures and presentation requirements for intangible assets
5. Describe accounting and presentation for research and development and similar costs

Accounting Changes and Error Analysis

1. Identify types of accounting changes and understand the accounting for changes in accounting principles
2. Describe the accounting for changes in estimates and changes in reporting entity
3. Describe the accounting for correction of errors
4. Analyze the effect of errors

Statement of Cash Flows

1. Describe the usefulness and format of the statement of cash flows
2. Prepare a statement of cash flows (direct and indirect format)
3. Contrast the direct and indirect methods of calculating net cash flow from operating activities
4. Discuss special problems in prepare a statement of cash flows