Vancouver Island University
Faculty of Management – Business – http://www.viu.ca/management
Accounting 100: Financial Accounting I
Fall 2012
Faculty
Gordon Holyer
Office:
Building 250, Room 426
Email
Website
Office Hours
gordon.holyer@viu.ca
http://web.viu.ca/holyerg
WF 10:00 – 11:30
Phone:
Fax:
250-753-3245 local 2539
250-740-6551
Prerequisite
Min. "C+" in one of Principles of Math 11, Applications of Math 11, or Foundations of Math 11,
and min. "C" in English 12.
Course Overview
This course will provide the student with an introduction, from a user perspective, to the
principles and procedures of financial accounting. Topics include the objectives and users of
accounting information, the mechanics of accounting including the accounting equation,
transactions, the accounting cycle and the preparation of financial statements.
Learning
Outcomes
General
 Understand economic and industry issues, and the role of accounting within that
environment.
 Describe key features and characteristics of financial statements.
 Describe accounting concepts, Canadian Generally Accepted Accounting Principles (GAAP),
standards, and processes.
Technical
 Demonstrate understanding of the accounting cycle, and apply this knowledge in preparing
basic financial statements.
Critical Thinking And Problem Solving
 Demonstrate an understanding of how the business environment and industry affect the
choice of accounting policies in an organization.
 Demonstrate and describe the effect of accounting policy choices on the users from
different stakeholder groups.
 Analyze financial information and describe the effects of different accounting methods on
financial statements.
Professional Integrity
 Use personal and ethical frameworks to respond to ethical dilemmas.
Required
Resources
Fundamentals of Financial Accounting, Phillips, Libby, Libby, Mackintosh. Third Canadian Edition,
2012. McGraw-Hill Ryerson.
Supplemental
Moodle Website: http://moodle.viuonline.ca
Methods of
Evaluation
Assignment
1. Quizzes
2. Term tests (two tests)
3. Comprehensive final exam
Grading Scale
Grades will be assigned according to the following scale.
A+
90 – 100%
C+
64 – 67
A
85 – 89
C
60 – 63
A80 – 84
C55 – 59
B+
76 – 79
D
50 - 54
B
72 – 75
F
< 50
Value
15%
45%
40% (December 6 - 17)
References
B68 – 71
The Business Faculty requires the Harvard style of referencing for academic papers. Please see
Quote, Unquote Referencing, and a Speedy Guide to Harvard Referencing at
http://www.viu.ca/business/resources.asp,
English Standards
Assignments must be free of spelling, punctuation and grammatical errors.
containing such errors will be penalized (i.e. mark deductions).
Assignments
Accommodation
Students with documented disabilities requiring academic and/or exam accommodation should
contact Disability Services in Building 200.
Academic
Misconduct
Academic misconduct includes, but is not limited to, giving and receiving information during any
test or exam, using unauthorized sources of information during any test; plagiarizing;
fabrication, cheating, and, misrepresenting the work of another person as your own, facilitation
of academic misconduct, and under certain conditions, non-attendance.
Plagiarism will not be tolerated. You must reference your work and acknowledge sources with
in-text citations and a complete list of references. This includes direct and indirect quotes,
diagrams, charts, figures, pictures and written material.
For group projects, the responsibility for academic integrity, which can result in academic
misconduct and its resulting penalties, rests with each person in the group and sanctions would
be bourn by each member.
No electronic dictionaries, cell phones or other electronic devices will be allowed in exams/
tests/quizzes. Only the following approved calculators may be used in exams/ tests/quizzes.
No other materials will be allowed on the desktop apart from a pen/pencil unless specifically
approved by the faculty member.
Texas Instrument BAII Plus, BAII, BA35: Sharp EL-733A: Hewlett Packard 10B
Assignments
QUIZZES
There will be online quizzes on the course website. These quizzes will be based on the assigned
chapter material. Due dates will be discussed in class and will be available online and in the
course updates course information. Late quizzes will not be accepted. The best ten of twelve
quizzes will be used to determine the quiz mark.
Pre-assigned problems – For each chapter, there will be pre-assigned problems specified on the
course website. These problems will be reviewed in seminar/class. While these problems will
not be collected for evaluation, your ability to complete them yourself will be critical to success
on the quizzes, tests and examination. You must be able to complete these problems
independently. Solutions will be posted on the course website which you should be sure to
review relative to your solution.
TERM TESTS
Term tests will be scheduled at the completion of a given set of chapters. Test dates in this
course outline are approximate only – any changes to these test dates will be posted on
Moodle. Students are responsible for knowing the correct test date. Term tests could consist
of multiple choice, short answer questions, and problems.
If a scheduled term test is missed for any reason, it will be assigned a grade of zero. You will be
able to replace the mark obtained on one of the term tests if the mark received on your final
examination is higher than that received on the term test.
COMPREHENSIVE FINAL
The comprehensive final will be three hours in length and will be held during the regularly
scheduled exam period (December 6 - 17). The final will consist of multiple choice, short essay
answer questions, and problems. The final examination is not optional and must be written as
scheduled.
NO TRAVEL PLANS SHOULD BE MADE DURING THE FINAL EXAM PERIOD
Students completing ACCT 100 should be able to address
the following questions or situations at a foundation level
as found in the following chapters:
Date
Readings
Exclusions or Additions
Sept 4
Sept 6
Introduction
Chapter 1 – Business Decisions
and Financial Accounting
Chapter 1
Additions: None

Exclusions: None



Sept
11&
13
Chapter 2 – Reporting Investing
and Financing Results on the
Balance Sheet
Sept
18 &
20
Chapter 3 – Reporting
Operating Results on the
Income Statement
Sept
25 &
27
Chapter 4 –Adjustments,
Financial Statements, and
Financial Results
Chapter 2
Additions: None
Define and explain the differences between
operating, investing, and financing activities
Identify and explain the content and reporting
objectives of the four basic financial statements.
Explain how the four financial statements are linked
together.
Identify and explain the users of financial
statements and their primary goals.
Describe the key features and characteristics of
common balance sheet accounts.
Identify and classify common balance sheet accounts.
Exclusions: None
Describe and show how business transactions affect the
balance sheet
Explain what determines whether an item is reported
on the balance sheet and how it is valued.
Chapter 3
 Describe the key features and characteristics of
Additions: None
common income statement accounts.
 Identify and classify common income statement
Exclusions: None
accounts.
 Describe and show how business transactions affect
the income statement.
 Explain the underlying principles that determine
what is reported on the income statement and how
it is measured.
Be able to explain the difference between the cash
basis and accrual basis of accounting
Chapter 4
 Explain what goals are achieved with period end
Additions: Use “Income Summary” for closing
adjusting entries.
entries (this will be discussed in class as it differs  Describe the typical adjusting entries needed at the
from the direct entry closing approach illustrated
end of the accounting period, what accounts are
on pp. 156-157)
Exclusions: None
Oct 2
Oct 4
&9
Test
Chapter 12 – Reporting and
Interpreting the Statement of
Cash Flows
Chapters 1 - 4
Chapter 12
Additions: Supplement 12A (Reporting Sales of
Property, Plant and Equipment (Indirect
Method)); pp. 524-525
Exclusions: Supplement 12B (Spreadsheet
Approach (Indirect Method); pp. 525-527
Oct 11
Chapter 5 –Financial Reporting
and Analysis
Chapter 5
Additions: None
Exclusions: None
affected and what accounts are never affected.
 Explain how adjustments affect information quality.
Explain the purpose behind the closing process and the
effect it has on the financial statements.



Explain why the cash flow statement is important.
Explain the purpose of a cash flow statement.
Analyze and explain the financial results and
financial performance of an organization using the
cash flow statement.
 Prepare basic cash flow statements using the
indirect method for operating activities
Predict expected cash flow patterns for companies at a
few basic stages (i.e. start-up, expansion, retraction,
maturity, etc.).
 Identify the potential users of financial statements
and describe how each of those users will make
decisions from the information provided in financial
statements.
 Explain how and why financial information might be
deliberately misrepresented.
 Analyze and interpret the financial performance of an
organization using the results of common ratios.


Oct 16
& 18
Chapter 6 – Internal Controls
and Financial Reporting for
Cash and Merchandise Sales
Chapter 6
Additions: None


Exclusions: None
continued on next page
Identify and assess the usefulness of sources of
financial information other than financial statements.
Explain how financial statement users can protect
themselves against misinformation.
Explain the purpose of internal controls and provide
examples.
Analyze and reconcile internal cash accounts to
external bank statements, comment on any
differences and prepare any necessary journal
entries.

Oct 23
& 25
Chapter 7 – Reporting and
Interpreting Inventories and
Cost of Goods Sold
Chapter 7
Additions:
Supplement 7C (The Effects of Errors in Ending
Inventory); pp. 304-305
Supplement 7D (Recording Inventory
Transactions in a Periodic System); pp. 305-306
Exclusions:
Supplement 7A (Recording Inventory
Transactions Using Last-In, First-Out (LIFO)); pp.
300-302
Supplement 7B (FIFO, LIFO, and Weighted
Average in a Perpetual Inventory System); pp.
302-304
Oct 30
& Nov
1
Chapter 8 – Reporting and
Interpreting Receivables, Bad
Debt Expense and Interest
Revenue
Chapter 8
Additions: Supplement 8A (Direct Write-off
Method), pp. 343-344
Exclusions:
Notes Receivable and Interest Revenue; pp.
337-340
Explain the impact of operating cycles on financial
results.
 Describe perpetual versus periodic inventory records
 Understand the values that make up the cost of
inventory.
Evaluate and compare the results of merchandising
organizations.
 Understand inventory management goals.
 Explain the types of inventory and the related
accounts on the balance sheet and income
statement.
 Identify, explain and contrast the 3 (three) inventory
costing methods.
 Explain perpetual versus periodic inventory records.
 Compare the effect of cost flow assumptions on
financial statements under a few basic scenarios (i.e.
rising prices and declining prices).
 Apply the lower of cost or market valuation rule.
Evaluate and interpret inventory management practices
and information.

Understand the pros/cons of extending credit to
customers.
 Explain how receivables are reported on financial
statements (i.e. net of allowances) and differences
between accounts receivable and notes receivable.
 Explain the two common methods of valuing net
receivables.
 Understand the direct write-off method, including
why it is not GAAP and why a small company might
consider using it anyway.
 Evaluate receivables management practices based on
uncollectible accounts and provide
recommendations.
Interpret the effect of recording allowances on net
income and receivables turnover ratios.
Nov. 6
Nov 8
& 13
Test
Chapter 9 – Reporting and
Interpreting Long-Lived
Tangible and Intangible Assets
Chapters 12 & 5 - 8
Chapter 9
Additions: None
Exclusions: Supplement 9A (Natural Resources);
pp. 387-388
Nov 15 Chapter 10 – Reporting and
& 20
Interpreting Liabilities
Chapter 10
Additions: None
Exclusions:
Accounting for Bond Issue; pp. 423-428
Supplement 10A (Straight-Line Method of
Amortization); pp. 431-432
Supplement 10B (Effective-Interest Method of
Amortization); pp. 433-437
Supplement 10C (Simplified Effective-Interest
Amortization); pp. 437-440
Nov 22 Chapter 11 – Reporting and
& 27
Interpreting Shareholders’
Equity
Chapter 11
Additions: None

Define, classify and explain nature of long
lived assets, including the distinction between
capitalizing items rather than expensing them.

Identify and explain the different methods of
acquiring assets and accounting for the acquisition.

Identify, explain and contrast the 3 common
methods of amortization.

Explain the effect of impairment on asset
values.

Explain how to account for the disposal of
long lived assets.

Explain the concept, acquisition and use of
long lived intangible assets.

Evaluate the management of investment in
long lived assets and other methods of acquiring
assets.
Explain and analyze the effect of changes in
amortization estimates

Explain the nature of a liability and what it means to an
organization.
 Identify the differences between short and long-term
debt and explain why it is important to differentiate
between the two.
 Explain the role of debt in financing an organization.
 Describe what information potential creditors would be
interested in.
 Evaluate and interpret financial performance using the
current ratio and times-interest-earned ratio.
Explain how user decisions can be affected by unrecorded
liabilities


Exclusions: Supplement A (Owners’ Equity for
Other Forms of Business); pp. 477-481
Explain the nature of the retained earnings account,
how it is created, increased, and decreased.
Explain the importance of a dividend policy and
describe how dividends affect the financial
performance of an organization.

Nov 29 Chapter 13 – Measuring and
Evaluating Financial
Performance
Chapter 13
Additions: None
Exclusions: None
Understand the different characteristics of common
shares and preferred shares.
 Describe the effects of stock dividends and stock
splits.
 Analyze and interpret the financial performance of an
organization using EPS and ROE ratios.
Describe the advantages and disadvantages of equity
financing versus debt financing.
 Horizontal, vertical, and ratio analyses
 Interpreting horizontal and vertical analyses
 Interpreting ratio analyses