Chabot College
Fall 2005
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) May be offered in Distance Education delivery format. 4 hours.
Prerequisite Skills:
Before entering the course, the student should be able to:
1.
demonstrate an understanding of the basic accounting principles and concepts;
2.
complete journal entries, post to ledger, perform adjusting and closing entries for a set of
books;
3.
prepare financial statements and reports including cash flows;
4.
understand the need for internal control as well as preparing a bank reconciliation;
5.
process transactions relating to both short and long term assets and liabilities,
receivables, payables, inventories, plant assets, natural resources and intangible assets;
6.
demonstrate an understanding of the cash and accrual methods of accounting;
7.
process transactions relating to a merchandising company;
8.
display a working knowledge of special journals;
9.
demonstrate an understanding of financial analysis and reporting;
10.
discuss the difference in the accounting processes of the sole proprietorship, partnership,
and corporations;
11.
identify the ethical issues which exist in the business community.
Expected Outcomes for Students:
Upon completion of the course, the student should be able to:
1.
process transactions germane to corporations;
2.
identify the differences in the accounting process of a corporation as contrasted to other
business forms;
3.
understand long-term liabilities, bonds, and present value tables;
4.
process transactions dealing with debt and stock investments;
5.
prepare a statement of cash flows;
6.
analyze and interpret financial statements by use of ratios, trends, and comparisons;
7.
analyze and process managerial accounting, manufacturing costs, fixed and
variable costs, standard costs, break-even analysis, product costing, job-order costing;
8.
perform cost-volume-profit analysis;
9.
identify the role of budgeting, decision making, and use of present values tables.
Chabot College
Course Outline for Business 1B, Page 2
Fall 2005
Course Content:
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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.
Given a corporation, students will journalize the transactions of issuing stocks
and bonds. Students will also be asked to prepare the stockholders’ equity and
income statement.
Evaluation Methods
a.
Chapter Examinations
b.
Final Examination
Textbook(s) Typical:
Accounting Principles, Weygandt, Kiesco, Kimmel, Wiley & Sons, Inc., 2003
Special Student Materials:
Calculator