HONORS ADVANCED
ACCOUNTING 1 and 2
Explore Educational and Career
Opportunities in Accounting
Review concepts learned in Principles of
Accounting 1 and 2
Learn Basic Accounting Theory
and Procedure
Use Generally Accepted
Accounting Principles
(GAAP)
Accounting Concepts and
Principles
The Entity Concept
The Reliability (Objectivity)
Principle
The Cost Principle
The Going-Concern Concept
The Stable Monetary Unit
Concept
Review the Adjusting Process
Accrual vs. Cash-Basis
Accounting
Other Accounting Principles
The Accounting
Period
The Revenue Principle
The Matching Principle
The Time-Period Concept
Review the Adjusting Process
(Con’t)
Categories of Adjusting Entries
Prepaid
Expenses
Depreciation
Accrued Expenses
Accrued Revenue
Unearned Revenues
Merchandise Inventory
Accounting Principles and
Inventories
Consistency
Principle
Disclosure Principle
Materiality Concept
Accounting Conservatism
Merchandise Inventory
Perpetual vs. Periodic Inventory
Inventory Costing Methods
Specific
Unit Cost
Average Cost
First-in, first-out (FIFO)
Last-in, first-out (LIFO)
Lower-of-Cost-or-Market Rule
Accounting for Plant Assets and
Intangibles
Measuring the Cost of a Plant Asset
(Acquisition)
 Land
and Land Improvements
 Buildings
 Machinery and Equipment
 Furniture and Fixtures
 A Lump-Sum (Basket) Purchase of Assets
 Capital Expenditures vs. Expenses
Accounting for Property, Plant,
Equipment and Intangible Assets
Recording Depreciation
Depreciation Methods
Straight-line
Units-of-production
Declining-balance
Disposing of a Plant Asset
Accounting for Property, Plant,
Equipment and Intangible Assets
Accounting for Natural Resources
 Calculating and
Recording Depletion
Accounting for Intangible Assets
 Calculating and
Recording
Amortization
Ethical Issues in Plant Asset
valuations
Current Liabilities and Long-Term
Liabilities
 Difference between Current Liabilities and Long-term
Liabilities
 Current Liabilities
 Accounts Payable
 Short-Term Notes Payable
 Sales Tax Payable
 Current Portion of Long-Term Notes Payable
 Accrued Expenses (Accrued Liabilities)
 Unearned Revenues
 Current Liabilities that must be Estimated
 Estimated Warranty Payable
 Contingent Liabilities
Current Liabilities and Long-Term
Liabilities
 Long-Term Liabilities (Bonds)
 Bond Terms
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Types of bonds
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Term Bonds
Serial Bonds
Secured Bonds
Debentures
Bond Prices
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Principal Amount, maturity value, par value
Maturity date
Stated interest rate
Par value
Discount
Premium
Bond Interest Rates
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Stated Interest Rate
Market Interest Rate
Current Liabilities and Long-Term
Liabilities
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Accounting for Bonds Payable
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At par
At a Discount
At a Premium
Adjusting Entries for Bonds Payable
Issuing Bonds Between Interest Dates
 Reporting Liabilities on the Balance Sheet
 Issuing Bonds Versus Stock
 Ethical Issues in reporting Liabilities
Corporations: Paid-In Capital
and the Balance Sheet
Terms and Concepts:
 Separate Legal Entity
 Continuous Life and Transferability
of
Ownership
 No Mutual Agency
 Limited Liability of Stockholders
 Separation of Ownership and Management
 Corporate Taxation (Double Taxation)
 Government Regulation
Corporations: Paid-In Capital
and the Balance Sheet
Stockholders’ Equity Basics
 Paid-in
Capital
 Retained Earnings
Stockholders’ Rights
Classes of Stock
 Common
or Preferred
 Par or no-par
Accounting for the issuance of Stock
Corporations: Paid-In Capital
and the Balance Sheet
Prepare the stockholders’ equity section
of a corporation’s balance sheet
Retained Earnings
Account for cash dividends
Evaluate company’s return on assets and
return on stockholders’ equity
Accounting for Income Taxes by
corporations
Corporations: Effects on Retained
Earnings and the Income Statement
Account for stock dividends
Distinguish between stock splits
and stock dividends
Account for treasury stock
Recognize why there may
restrictions on retained earnings
Corporations: Effects on Retained
Earnings and the Income Statement
The corporate Income Statement
 Continuing Operations
 Special Items
 Discontinued
operations
 Extraordinary gains and losses
 Earnings per Share
 Statement of Retained Earnings
 Combined Statement of Income and
Retained Earnings
 Prior-Period Adjustments
 Reporting Comprehensive Income
The Statement of Cash Flows
Cash and Cash Equivalents
Operating, Investing, and Financing
Activities
Preparing the Statement of Cash
Flows by the Indirect Method
Measuring Cash Adequacy: Free
Cash Flow
Partnership Organization
Nature of Partnerships
Formation of a Partnership
Determine the Value of Net Assets
Adjustments to Proprietorship Records
Partnership Agreement
Dissolving the Sole Proprietorship
Opening the Partnership Records
Partnerships: Profit Division and
Equity Accounting
Partner’s Capital Account
Partner's Drawing Account
Profit-Sharing Agreement
Division of Partnership Profits
Admitting a new Partner
Withdrawal of a Partner
Liquidation of a Partnership
Problem Solving and
Decision Making
EXCEL used as the primary tool
for problem solving
Analyze Financial Statements
for the affect of applying
accounting principles
Enrichment Activities
Guest Speakers
Students Symposium at
Duquesne University sponsored
by the PACPAA
Field Trip to Fidelity
Investments
Thank You!
The End