Manchester Community College
Course Content Outline
Course Number:
ACSP110
Course Title:
Department:
Program:
Business Studies
Accounting
Operations
Specializations
2
2
ACCT 113 with a
grade of C or better
Date Prepared:
Prepared by:
Theory Hours:
Credits:
Prerequisites:
Date Effective:
Lab Hours:
Corequisites:
Bookkeeping Internal Controls And
Advanced Topics
Feb 2009
Micheline West
Fall 2009
NONE
Catalog Description:
This class will cover more advanced topics in bookkeeping. Topics covered in this class include
the reconciliation of depreciation for book versus taxes, depreciation methods for GAAP
(General Accepted Accounting Principles), depreciation methods for Federal Income Tax,
depreciation of vehicles for tax purposes, merchandise inventory using the perpetual and the
periodic systems, inventory computation methods, and lower of cost or market. Topics covered
for internal controls include employee theft and how to prevent it, prevention of check and credit
card fraud, prevention of vendor cheating, and how to avoid various con schemes and scams.
This class is designed to prepare the student for the workforce as a bookkeeper and to prepare for
part 2/test 2, and parts 3 & 4 of the National Certified Bookkeeper examination administered by
the American Institute of Professional Bookkeepers. Prerequisite: ACCT113 with a grade of C
or better.
Course Objectives:
The student will:
1. Define the differences between depreciation for book versus tax purposes.
2. Compute depreciation for GAAP, and prepare a depreciation schedule for the
following methods: straight-line, units of production, declining balance, sum-ofthe-years-digits.
3. Compute depreciation according to federal income tax rules and prepare a
depreciation schedule to include MACRS, section 179, half-year convention, midquarter convention, mid-month convention.
4. Explain the rules for vehicle depreciation and compute depreciation for various
weight limits, vehicles driven for personal use in C corp., S corp., partnerships, or
sole proprietorships.
5. Explain the differences between the perpetual and periodic inventory systems and
prepare related journal entries.
6. Compute ending inventory and cost of goods sold and prepare journal entries for
FIFO (First-in, first-out), LIFO ( Last-in, last-out), and Weighted average for the
perpetual and periodic inventory methods and apply the lower of cost or market
rule by item, group or total inventory. Prepare entries for a permanent and
temporary decline in inventory values. Prepare entries for a loss of purchase
commitments.
7. Explain how theft happens and how to prevent it for: employees stealing noncash
assets, check fraud, credit-card fraud, vendor cheating, con schemes, and business
scams.
8. Explain the process to become a certified bookkeeper and the advantages of
certification.
Required Text(s):
Principles of Financial Accounting, Wild , McGraw Hill or similar book as approved by the
department chair
Mastering Depreciation, Mastering Inventory, Mastering Internal Controls and Fraud Prevention
published by the American Institute of Professional Bookkeepers or similar book as approved by
the department chair.
Outline of Content:
1. Depreciation
a. Depreciation for book versus tax purposes
i. Procedures for computing depreciation according to GAAP
ii. Determine cost of individual asset versus a group of assets
iii. Determine assets estimated life and residual value
iv. Selecting a depreciation method
b. Depreciation for GAAP
i. Straight-line depreciation
ii. Units of production depreciation
iii. Declining balance depreciation
iv. Sum-of-the-years digits depreciation
c. Depreciation for Federal Income Tax rules
i. Difference between MACRS and GAAP depreciation
ii. Depreciating buildings under MACRS
iii. Special first-year expensing for equipment: Section 179
iv. The half-year convention
v. The mid-quarter convention
vi. The mid-month convention
vii. g. Completing the depreciation schedule and allocating
depreciation expense
d. Depreciating vehicles under MACRS
i. Depreciation limits on passenger automobiles
ii. Sec. 179 deductions and annual depreciation of SUVs, pickups
and vans:
1. that weigh up to 6,000 pounds and are specially
modified
2. that weigh up to 6,000
pounds and are not specially
modified
3. that weigh over 6,000
pounds
iii. Depreciation of company vehicles driven for
personal use in C corp., S corp., partnership
or sole proprietorship
iv. Completing and maintaining the depreciation schedule
2. Inventory
a. Introduction to merchandise inventory
i. Recording merchandise purchase costs
ii. How and when to record purchase costs
iii. F.O.B. (free on board) shipping point v. F.O.B. destination
iv. Reporting inventory on the financial statements
v. Cost of goods sold (COGS)
b. The perpetual method
i. Computations and journal entries for:
ii. purchase returns and allowances
iii. changes in the
inventory account
during the year
iv. damaged or lost
inventory
c. The periodic method
i. Computations and journal entries for:
ii. merchandise returns by customers
iii. year-end adjustments
iv. inventory purchases
v. cost of goods sold (COGS)
d. Weighted average costing
i. Weighted average
costing under the
periodic method
ii. Computing COGS and
ending inventory
iii. Moving average costing under the perpetual method
e. First-in, first-out (FIFO) costing
i. Computing inventory and COGS under FIFO
ii. FIFO costing under the periodic method v. the perpetual
method
f. Last-in, last-out (LIFO) costing
i. Computing COGS and ending inventory under LIFO
ii. LIFO layers that contain units with the same v. multiple costs;
and LIFO liquidations
g. The lower of cost or market (LCM) rule
i. Definitions of cost and market and how to determine market
ii. Costing out ending inventory by applying LCM by item, group
or total inventory
iii. When there is a temporary v. permanent decline in the
value of inventory and when there is a recovery in value
iv. How to handle a loss on purchase commitment
3. Internal Control and Fraud Prevention
a. How employees steal noncash assets.
i. Unconcealed larceny
ii. Concealed larceny, including falsified reports, fictitious sales,
altered inventory accounts
iii. Internal controls for deterrence and detection
b. How to prevent employee theft before it starts
i. Verification
ii. Checking past employment, education, licenses and
certifications
iii. Contacting references, checking for criminal convictions and
screening for drugs
iv. Getting the candidate’s consent
v. Conducting fraud audits
c. Preventing check fraud
i. Checks written on insufficient funds or closed accounts
ii. Counterfeit and forged checks
iii. Check theft using canceled checks and check statements or
stolen check stock
iv. Kiting, check washing, paperhanging, stop-payment orders,
forged travelers’ checks
v. Payroll check fraud
vi. Internal controls for prevention and detection
d. Preventing credit-card fraud
i. Credit-card schemes
ii. False applications, credit doctors and skimming
iii. Collusion by company employees
iv. Internal controls for prevention and detection
e. Preventing vendor cheating
i. Vendor gifts, travel, entertainment, loans, other gratuities that
influence employees
ii. Kickbacks and overbilling
iii. Bid rigging at the pre-solicitation, solicitation and submission
phases
iv. Internal controls that prevent vendor cheating
f. Con schemes and other scams against business
i. Recognizing and preventing telemarketing and Internet
schemes
ii. Advertising material schemes
iii. Paper and toner scams
iv. Loan scams
v. Buyers clubs
vi. Recognizing and preventing Internet scams
Required Methods of Assessment
Assessment Method 1: Class Participation
Performance Criteria: Student will demonstrate understanding of the subject matter by actively
participating in classroom discussions and by supplying appropriate contributions. Student
will also demonstrate effective listening skills by listening to other students’ comments and
giving appropriate responses. Scores are based upon traditional letter (A-F) or 100 point
grading scale. A sample class-participation grading rubric is attached.
Course Objective(s) Using this Method: 1-8
Assessment Method 2: Projects
Performance Criteria: Students will demonstrate knowledge of the material through completion
of a Project. Scores are based upon traditional letter (A-F) or 100 point grading scale. A
sample project/practice case grading rubric is attached.
Course Objective(s) Using this Method: 2,3,4,6,7
Assessment Method 3: Quizzes
Performance Criteria: Students will demonstrate knowledge of course material through
completion of quizzes/Practice Cases. Scores are based upon traditional letter (A-F) or 100
point grading scale.
Course Objective(s) Using this Method: 1-7
Assessment Method 5: End of Semester Mock Certification Examination
Performance Criteria: Students will demonstrate knowledge of the material through completion
of an end of semester mock certification examination. Scores are based upon traditional letter
(A-F) or 100 point grading scale. Sample certification exam is included in the required text
book for the class.
Course Objective(s) Using this Method: 1-7
1. Cognitive Levels met by course (should be reflected in objectives and assessments):
Bloom’s Taxonomy of Cognitive Objectives: Six levels arranged in order of increasing
complexity (1=low, 6=high): (Source: SUNY – Potsdam)
Knowledge: Recalling or remembering information without necessarily understanding it.
Includes behaviors such as describing, listing, identifying, and labeling.
Comprehension: Understanding learned material and includes behaviors such as
explaining, discussing, and interpreting.
Application: The ability to put ideas and concepts to work in solving problems. It
includes behaviors such as demonstrating, showing and making use of
information.
Analysis: Breaking down information into its component parts to see interrelationships
and ideas. Related behaviors include differentiating, illustrating, comparing, and
categorizing.
Synthesis: The ability to put parts together to form something original. It involves using
creativity to compose or design something new.
Evaluation: Judging the value of evidence based on definite criteria. Behaviors related
to evaluation include: concluding, criticizing, prioritizing and recommending.
I = Introduced E = Emphasized A = Comprehensive Assessment INF = Informally
Assessed
Objectives Knowledge Comprehension Application Analysis Synthesis Evaluation
1.
E,A
2.
E,A
E,A
E,A
3.
E,A
E,A
4.
E,A
E,A
5.
E,A
E,A
6.
E,A
E,A
7.
E,A
E,A
8.
E,Inf
2. Core Attributes met by course (college wide)
Human Relationship Skills: The application of values, collaboration skills, standards,
and ethical judgment required for personal and professional interaction.
Communication Skills: The ability to express ideas and share knowledge in a clear,
focused, and organized manner.
Critical Thinking: The ability to analyze, synthesize, and evaluate information in a logical
and coherent manner.
Global Perspectives: The ability to examine a concept in contexts and from perspectives
other than one's own.
Quantitative Reasoning: The application of computational methods and numerical data
interpretation to solve problems.
Scientific Processes: The application of scientific methods to gain knowledge and
examine the laws, theories, and processes of physical and biological phenomena.
Technical Skills: The theoretical and applied knowledge for career entry and continued
professional development
Study Skills: The application of strategies, resources, and attitudes to find solutions and
gain knowledge.
I = Introduced E = Emphasized A = Comprehensive Assessment
Informally Assessed
Human
Com
Critical Global Quant Scient Technical
Relations munic Thinki Perspec itative ific
Skills
hip
ation
ng
tives
Reaso Proces
Skills
Skills
ning
ses
OBJECT
IVES
1.
2.
3.
4.
5.
6.
7.
8.
E,Inf
E,Inf
E,Inf
E,Inf
E,Inf
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
E,A
INF =
Study
Skills
Sample Class Participation Grading Guidelines
Purpose: Class participation is an integral part of a student’s learning experience and as such
the student shall actively participate in the course. The following class participation evaluation
matrix will allow the student to clearly understand how they will be evaluated in terms of class
participation. The student is encouraged to communicate with the instructor throughout the
course regarding their class participation score and to solicit feedback on how to maintain or
improve their class participation score standing.
Evaluation Matrix:
Potential Class
Participation Grade Range
90-100
(“A” range)
80-89
(“B” range)
70-79
(“C” range)
60-69
(“D” range)
0-59
(“F” range)
Percentage
Student will at least:
 Always come prepared to class according to the course syllabus.
 Always constructively and professionally contribute to class
discussions.
 Always respect, and contribute to, classroom civility.
 Always actively engage in class exercises and activities.
 Often come prepared to class according to the course syllabus.
 Often constructively and professionally contribute to class
discussions.
 Often respect, and contribute to, classroom civility.
 Often actively engage in class exercises and activities.
 Occasionally come prepared to class according to the course
syllabus.
 Occasionally constructively and professionally contribute to class
discussions.
 Occasionally respect, and contribute to, classroom civility.
 Occasionally actively engage in class exercises and activities.
 Rarely come prepared to class according to the course syllabus.
 Rarely constructively and professionally contribute to class
discussions.
 Rarely respect, and contribute to, classroom civility.
 Rarely actively engage in class exercises and activities.
 Never come prepared to class according to the course syllabus.
 Never constructively and professionally contribute to class
discussions.
 Never respect, and contribute to, classroom civility.
 Never actively engage in class exercises and activities.
Sample Project Grading Guidelines
Criteria
Accuracy


Description
Work is performed accurately and free of
mathematical and spelling errors
Work is performed according to the correct
accounting rules or principles
Neatness



Completion

Logic
Organization




Other
100%
Work appears neat, typed, and free of hand
written inserts
Project contains a cover page with the
students name and class assignment
Project is stapled or bound
All requirements of the project have been
met
Work is performed is logical in process
Assignments are in proper number order
Page formatting is according to normal
business standards
Page layout is well formatted according to
normal business