MASTER COURSE OUTLINE
A. ACCT 2031 Intermediate Accounting I
B. COURSE DESCRIPTION:
This course is a comprehensive study of accounting theory and concepts with an analysis of
the influence on financial accounting by various boards, associations, and governmental
agencies. Topics include the income statement, balance sheet, statement of cash flows, time
value of money, internal controls, cash, receivables, inventories, and operational assets. The
focus of this course is on the practical applications of accounting theory. Students are
encouraged to take advantage of available computer software to assist them in computations.
This course is part of the Associate in Applied Science Accounting degree which is
accredited by the Accreditation Council for Business Schools and Programs (ACBSP).
Prerequisites: ACCT 2011 and ACCT 2012 or instructor approval.
(4 Cr – 4 lect, 0 lab)
C. **Core Theme: Critical Thinking
D. MAJOR CONTENT AREAS:
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Environmental and theoretical structure of financial accounting
Fundamental accounting process used to produce financial statements
Balance sheet and notes to the financial statements
Income statement
Statement of cash flows
Revenue recognition, income measurement, and profitability analysis
Time value of money concepts
Internal control, classification of cash, and valuation of receivables
Inventory identification, valuation, and estimation
Operational assets – acquisition, utilization, and disposition
E. GOAL TYPES, OBJECTIVES, AND OUTCOMES:
GOAL TYPE
**Critical
Thinking
CS
OBJECTIVES
Students will be able to
gather factual information and apply it to a
given problem in a manner that is relevant,
clear, comprehensive, and conscious of
possible bias in the information selected.
demonstrate an understanding of the
environment and theoretical structure of
financial accounting.
OUTCOMES
The student will successfully
1. acquire information about a
company and complete an
accounting cycle simulation.
1.
describe the function and
primary focus of financial
accounting.
1
2.
3.
4.
5.
6.
7.
8.
CS
demonstrate an understanding of the
fundamental accounting process used to
produce financial statements.
1.
2.
3.
4.
5.
6.
7.
8.
CS
demonstrate an understanding of the
balance sheet and financial disclosures.
1.
2.
3.
explain the differences between
cash and accrual accounting.
define generally accepted
accounting principles (GAAP)
and discuss the historical
development of accounting
standards.
explain why the establishment
of accounting standards is
characterized as a political
process.
explain the purpose of the
Financial Accounting Standards
Board (FASB) conceptual
framework.
identify the objectives of
financial reporting, the
qualitative characteristics of
accounting information, and the
elements of financial
statements.
describe the four basic
assumptions underlying GAAP.
describe the four broad
accounting principles that guide
accounting practice.
analyze routine economic
events and transactions and
record their effects on a
company’s financial position
using the accounting equation
format.
record transactions using the
general journal format.
post the effects of journal
entries to T-accounts and
prepare an unadjusted trial
balance.
identify and describe the
different types of adjusting
journal entries.
determine the required
adjustments, record adjusting
journal entries in general
journal format, and prepare and
adjusted trial balance.
describe the four basic financial
statements.
explain the closing process.
convert from cash basis net
income to accrual basis net
income.
describe the purpose of the
balance sheet and understand its
usefulness and limitations.
distinguish among current and
non-current assets and
liabilities.
identify and describe the
various balance sheet asset
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classifications.
identify and describe the two
balance sheet liability
classifications.
5. explain the purpose of financial
statement disclosures.
6. explain the purpose of the
management discussion and
analysis disclosure.
7. explain the purpose of an audit
and describe the content of the
audit report.
8. describe the techniques used by
financial analysts to transform
financial information into forms
more useful for analysis.
9. identify and calculate the
common liquidity and financing
ratios used to assess risk.
1. discuss the importance of
income from continuing
operations and describe its
components.
2. describe earnings quality and
how it is impacted by
management practices to
manipulate earnings.
3. discuss the components of
operating and non-operating
income and their relationship to
earnings quality.
4. define what constitutes
discontinued operations and
describe the appropriate income
statement presentation for these
transactions.
5. define extraordinary items and
describe the appropriate income
statement presentation for these
transactions.
6. describe the measurement and
reporting requirements for a
change in accounting principles.
7. explain the accounting
treatments of changes in
estimates and correction of
errors.
8. define earnings per share (EPS)
and explain required disclosures
of EPS for certain income
statement components.
9. explain the difference between
net income and comprehensive
income and how we report
components of the difference.
10. describe the purpose of the
statement of cash flows.
11. identify and describe the
various classifications of cash
flows presented in a statement
4.
CS
demonstrate an understanding of the
income statement and statement of cash
flows.
3
CS
demonstrate an understanding of revenue
recognition, income measurement, and
profitability analysis.
1.
2.
3.
4.
5.
6.
CS
demonstrate an understanding of time
value of money concepts.
1.
2.
3.
4.
5.
6.
7.
8.
9.
of cash flows.
discuss the general objective of
the timing of revenue
recognition, list the two general
criteria that must be satisfied
before revenue can be
recognized, and explain why
these criteria usually are
satisfied at a specific point in
time.
describe the installment sales
and cost recovery methods of
recognizing revenue for some
types of installment sales and
explain the unusual conditions
under which these methods
might be used.
discuss the implications for
revenue recognition of allowing
customers the right of return.
identify situations that call for
the recognition of revenue over
time and distinguish between
the percentage-of-completion
and completed contract
methods of recognizing revenue
for long-term contracts.
discuss the revenue recognition
issues involving multipledeliverable contracts, software,
and franchise sales.
identify and calculate the
common ratios used to assess
profitability.
explain the differences between
simple and compound interest.
compute the future value of a
single amount.
compute the present value of a
single amount.
solve for either the interest rate
or the number of compounding
periods when present value and
future value of a single amount
are known.
explain the difference between
an ordinary annuity and an
annuity due situation.
compute the future value of
both an ordinary annuity and an
annuity due.
compute the present value of an
ordinary annuity, an annuity
due, and a deferred annuity.
solve for unknown values in
annuity situations involving
present value.
describe briefly how the
concept of the time value of
money is incorporated into the
4
CS
demonstrate and understanding of the key
issues of internal control, classification of
cash, and valuation of receivables.
1.
2.
3.
4.
5.
6.
7.
8.
9.
CS
demonstrate an understanding of the
measurement and reporting issues
involving inventory and the related
expense (cost of goods sold).
1.
2.
3.
4.
5.
6.
valuation of bonds, long-term
leases, and pension obligations.
define what is meant by internal
control and describe some key
elements of an internal control
system for cash receipts and
disbursements.
explain the possible restrictions
on cash and their implications
for classification on the balance
sheet.
distinguish between the gross
and net methods of accounting
for cash discounts.
describe the accounting
treatment for merchandise
returns.
describe the accounting
treatment of anticipated
uncollectable accounts
receivable.
describe the two approaches to
estimating bad debts.
describe the accounting
treatment of short-term notes
receivable.
differentiate between the use of
receivables in financing
arrangements accounted for as a
secured borrowing and those
accounted for as a sale.
describe the variables that
influence a company’s
investment in receivables and
calculate the key ratios used by
analysts to monitor that
investment.
explain the difference between
a perpetual inventory system
and a periodic inventory
system.
explain which physical
quantities of goods should be
included in inventory.
determine the expenditures that
should be included in the cost
of inventory.
differentiate between the
specific identification, first in,
first out (FIFO), last in, first out
(LIFO), and average cost
methods used to determine the
cost of ending inventory and
cost of goods sold.
discuss the factors affecting a
company’s choice of inventory
method.
understand the supplemental
LIFO disclosures and the effect
of LIFO liquidations on net
5
7.
CS
demonstrate an understanding of
inventory valuation methods, inventory
estimation techniques, and the effects of
inventory errors and how to correct them.
1.
2.
3.
4.
5.
6.
CS
demonstrate an understanding of the
valuation and disposition of operational
assets.
1.
2.
3.
4.
5.
6.
7.
8.
income.
calculate the key ratios used by
analysts to monitor a
company’s investment in
inventories.
understand and apply the lowerof-cost-or-market rule used to
value inventories.
estimate ending inventory and
cost of goods sold using the
gross profit method.
estimate ending inventory and
cost of goods sold using the
retail inventory method,
applying the various cost flow
methods.
explain how the retail inventory
method can be made to
approximate the lower-of-costor-market rule.
explain the appropriate
accounting treatment required
when a change in inventory
method is made.
explain the appropriate
accounting treatment required
when an inventory error is
discovered.
identify the various costs
included in the initial cost of
property, plant, equipment,
natural resources, and
intangible assets.
determine the initial cost of
individual operational assets
acquired as a group for a lumpsum purchase price.
determine the initial cost of an
operational asset acquired in
exchange for a deferred
payment contact.
determine the initial cost of
operational assets acquired in
exchange for equity securities
or through donation.
calculate the fixed-asset
turnover ratio used by analysts
to measure how effectively
managers use property, plant,
and equipment.
explain how to account for
dispositions and exchanges for
other non-monetary assets.
identify the items included in
the cost of a self-constructed
asset and determine the amount
of capitalized interest.
explain the difference in the
accounting treatment of costs
incurred to purchase intangible
6
CS
demonstrate an understanding of the
allocation of cost of operational assets to
the periods benefited by their use.
1.
2.
3.
4.
5.
6.
7.
8.
9.
assets versus the costs incurred
to internally develop intangible
assets.
explain the concept of cost
allocation as it pertains to
operational assets.
determine periodic depreciation
using both time-based and
activity-based methods.
calculate the periodic depletion
of a natural resource.
calculate the periodic
amortization of an intangible
asset.
explain the appropriate
accouting treatment required
when a change is made in the
service life or residual value of
an operational asset.
explain the appropriate
accounting treatment required
when a change in depreciation,
amortization, or depletion
method is made.
explain the appropriate
accounting treatment required
when an error in accounting for
an operational asset is
discovered.
identify situations that involve a
significant impairment of the
value of operational assets and
describe the required
accounting procedures.
discuss the accounting
treatment of repairs and
maintenance, additions,
improvements, and
rearrangements to operational
assets.
F. SPECIAL INFORMATION:
This course may require use of the Internet, the submission of electronically prepared
documents and the use of a course management software program. Students who have a
disability and need accommodations should contact the instructor or the Student Success
Center at the beginning of the semester. This information will be made available in
alternative format, such as Braille, large print, or current media, upon request.
G. COURSE CODING INFORMATION:
Course Code D/Class Maximum 30; Letter Grade
Revision date: 12/18/12
AASC Approval date: 01/22/13
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*Riverland Community College
Disciplines
MnTC Goal
Number
Communication (CM)
Natural Sciences (NS)
Mathematics/Logical Reasoning (MA)
History and the Social & Behavioral
Sciences (SS)
Humanities and Fine Arts (HU)
1
3
4
5
**Riverland Community College Core
Themes
Critical Thinking (CT)
Human Diversity (HD)
Global Perspective (GP)
Ethical and Civic Responsibility (EC)
People and the Environment (PE)
MnTC Goal
Number
2
7
8
9
10
6
*These five MnTC Goals have been identified as Riverland Community College Disciplines.
** These five MnTC Goals have been identified as Riverland Community College Core Themes.
NOTE: The Minnesota Transfer Curriculum “10 Goal Areas of Emphasis” are reflected in the
five required discipline areas and five core themes noted in the Riverland Community College
program of study guide and/or college catalog.
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