BA 212 - Financial Accounting II

4 Credit(s)

Prerequisite(s): BA 211

Course Description: Continues the study of financial accounting theory with more in-depth study of asset, liability, and equity accounting in accordance with generally accepted accounting principles (GAAP). Includes accounting for receivables; plant assets, natural resources, and intangibles; current and long-term liabilities; investments; payroll; stockholders’ equity; the preparation of the statement of cash flows; and financial statement analysis.

Course Level: Lower Division Collegiate

Course Learning Outcomes:

CLO#1: Use accounting terms; apply the rules of debit and credit; record transactions in the journal; post from the journal to the ledger; and prepare and use a trial balance. (ILO: Quantitative Literacy and Reasoning)
CLO#2: Design internal controls for receivables; use the allowance method to account for receivables; understand the direct write-off method for receivables; account for notes receivable and discount a notes receivable; report receivables on the balance sheet; and use the acid-test ratio and days’ sales in receivables to evaluate a company.
CLO#3: Measure the cost of a plant asset; account for depreciation; select the best depreciation method for tax purposes; account for the disposal of a plant asset; account for natural resources; and account for intangible assets.
CLO#4: Account for current liabilities of known amount; account for current liabilities that must be estimated; compute payroll amounts; record basic payroll transactions; use a payroll system; account for bonds payable; measure interest expense by the straight-line amortization method; account for retirement and conversion of bonds payable; report liabilities on the balance sheet; and apply the time value of money concepts for bond purchases.
CLO#5: Identify the characteristics of a corporation; record the issuance of stock; prepare the stockholders’ equity section of a corporation balance sheet; account for cash dividends; use different stock values in decision making; evaluate return on assets and return on stockholders’ equity; and account for the income tax of a corporation.
CLO#6: Account for stock dividends; distinguish stock splits from stock dividends; account for treasury stock; report restrictions on retained earnings; and analyze a corporate income statement.
CLO#7: Indicate the usefulness of the statement of cash flows; distinguish among operating, investing, and financing activities; prepare a statement of cash flows using the indirect and direct methods; and analyze the statement.
CLO#8: Discuss the need for and tools for comparative and financial statement analysis; explain and apply horizontal and vertical analysis; identify and compute ratios and describe their purpose and use in analyzing a firm’s liquidity, profitability, and solvency; and identify the limitations of statement analysis.
CLO#9: Examine and interpret ethical dilemmas in the field of accounting and make ethical business judgments based on codes of conduct, laws, and generally accepted accounting principles.