Introduction to Financial Accounting - Overview

Module 1

Introduction

• The History of Accounting
• Branches of Accounting
• The Difference Between Accounting and Bookkeeping
• Double Entry Accounting
• Keeping Good Accounting Records
• Debits and Credits
• Accrual vs Cash Basis Accounting
• The Accounting Process
• Balance Sheet (Statement of Financial Position)
• Income Statement
• Statement of Changes in Owners Equity
• Statement of Cash Flows
• Financial Reporting
• Disclosure
• What's Included in the Notes
• International Financial Reporting Standards (IFRS)
• The Federal Accounting Standards Advisory Board (FASAB)
• The Government Accounting Standards Board (GASAB)

Module 2

What is Accounting?

• Why do we need financial information?
• Accounting is the Language of Business
• Difference of Financial accounting, Managerial accounting, and Tax Accounting
• Internal and External Users
• Bookkeeping vs. Accounting
• Why is it Important to Study Accounting?
• Forms of Business Organizations
• Types of Activities Performed By Business Organizations
• Ethical Behavior of Accountants
• Case Study: The Sarbanes-Oxley Act

Module 3

Short Answer Questions, Exercises AND Problems

• Beyond The Numbers—Critical thinking
• Glossary
• Accounting Principles And Practices
• GAAP - Generally Accepted Accounting Principles
• Historical cost principle
• Revenue recognition principle
• Constraints
• Account Types

Module 4

The Accrual Basis And Cash Basis Accounting

• Cash Versus Accrual Basis Accounting
• Classes And Types of Adjusting Entries
• Adjusting For Accrued Items
• Preparing An Adjusted Trial Balance
• Preparing Financial Statements
• Closing Entries
• Accounting In The Headlines

Module 5

Accounting For a Merchandising Enterprise

The Accrual Basis And Cash Basis Of Accounting

• Payment Terms
• Shipping Terms
• Merchandise Inventory
• Perpetual Inventory
• Periodic Inventory

  Buyer Entries Under Perpetual Method

• Inventory Purchases
• Shipping on Inventory Purchases
• Purchase returns and allowances
• Paying for Inventory Purchased on Credit

  Seller Entries Under Perpetual Inventory Method

• Cost of goods sold
• Recording Sales
• Shipping on Sales
• Sales Returns and Allowances
• Receiving Payment from Customers

  Buyer Entries Under Periodic Inventory System

• Inventory Purchases under Periodic
• Shipping on Inventory Purchases
• Purchase returns and allowances
• Paying for Inventory Purchased on Credit
• Paying for Inventory Purchased on Credit

  Seller Entries Under Periodic Inventory Method

• Sales and Return Allowances
• Receiving Payment from Customers
• Cost of Goods Sold

  Glossary

Module 6

Financial Reporting For A Merchandising Enterprise

Adjusting Entries

• Perpetual Inventory Method
• Periodic Inventory Method

  Financial Statements

• Multi-Step (or classified) income statement
• Reporting Cost of Goods Sold
• Other financial statements

  Closing Entries

• Close the revenue accounts with credit balances
• Close contra-revenue accounts and expense accounts with debit balances
• Close income summary into retained earnings.
• Close the debit balance of dividends into retained earnings

  Impacts of Inventory Errors On Financial Statements

  Accounting Headlines

Module 7

Merchandise Inventory

Learning Objectives

• What is merchandise inventory?
• Cost of goods sold and Inventory
• Inventory Methods for Ending Inventory and Cost of Goods Sold
• FIFO (First in, First Out)
• LIFO (Last in, First out)
• Weighted Average (or Average Cost)
• Specific Identification