Chabot College
Fall, 2001
Course Outline for Business 1B
PRINCIPLES OF ACCOUNTING II
Catalog Description:
1B Principles of Accounting II
4 units
Emphasis on analysis and use of accounting within the organization: corporations, long-term
liabilities, investments, funds and cash flow, financial statement analysis, managerial accounting,
job order cost accounting, process cost accounting, cost-volume profit, break-even analysis,
budgeting and standards costs. Prerequisite: Business 1A (completed with a grade of "C" or
higher) 4 hours.
Prerequisite Skills:
Before entering the course, the student should be able to demonstrate:
1.
an understanding of the basic accounting principles and concepts;
2.
the ability to complete journal entries, post to ledger, perform adjusting and closing
entries for a set of books;
3.
the ability to prepare financial statements and reports;
4.
an understanding for the need for internal control as well as preparing a bank
reconciliation;
5.
the ability to process transactions relating to receivables, payables, inventories, plant
assets, natural resources and intangible assets;
6.
an understanding of the cash and accrual methods of accounting;
7.
the ability to process transactions relating to a merchandising company;
8.
a working knowledge of special journals;
9.
an understanding of financial analysis and reporting;
10.
an understanding of the difference in the accounting processes of the sole proprietorship
and partnership;
11.
an awareness of the ethical issues which exist in the business community.
Expected Outcomes for Students:
Upon completion of the course, the student should be able to demonstrate:
1.
an understanding of transactions germane to corporations;
2.
an understanding between the difference in the accounting processes of the corporation as
contrasted to other business forms;
3.
an understanding of long-term liabilities, bonds, present value tables;
4.
the ability to process transactions dealing with debt and stock investments;
5.
an understanding of statement of cash flows;
6.
the ability to analyze and interpret financial statements by use of ratios, trends, and
comparisons;
7.
an understanding of managerial accounting, manufacturing costs, fixed and
variable costs, standard costs, break-even analysis, product costing, job-order costing
systems;
8.
an understanding of cost-volume-profit analysis;
9.
an understanding of role of budgeting, decision making, and use of present values tables.
Course Outline for Business 1B, Page 2
Course Content:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Corporations
a.
nature and formation
b.
accounting for common stock, treasury stock, preferred stock
c.
cash and stock dividends, retained earnings, income reporting
Long-term liabilities
a.
accounting for the issuing of and retiring of bonds
b.
leases and long-term notes payable
Statement of cash flows
a.
indirect method
b.
direct method
Financial statement analysis
Managerial accounting
a.
manufacturing costs
b.
product versus period costs
Job order cost accounting
Process cost accounting
Cost-Volume-Profit relationships
Budgetary planning
Budgetary control and responsibility accounting
Performance evaluation through standard costs
Incremental business analysis and capital budgeting
Methods of Presentation:
1.
2.
3.
Lecture
Discussion
Problem solving
Assignments and Methods of Evaluating Student Progress:
1.
2.
Typical Assignments
a.
Assigned problems dealing with controlling and planning decisions that
managers must make
Evaluation Methods
a.
Chapter Examinations
b.
Final Examination
Textbook(s) Typical:
Accounting Principles, Weygandt, Kiesco, Kimmel, Wiley & Sons, Inc., 1999
Special Student Materials:
Calculator
mc 10/2/99
REVISEBUS1B