ACE CREDIT Principles of Accounting Online

1.2 Users of Accounting Information and How They Apply Information

1.3 Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities

1.4 Why Accounting Is Important to Business Stakeholders

1.5 The Varied Career Paths Open to Individuals with an Accounting Education

• Explain the importance of accounting and distinguish between financial and managerial accounting.
• Identify users of accounting information and how they apply information.
• Describe typical accounting activities and the role accountants play in identifying, recording, and reporting financial activities.
• Explain why accounting is important to business stakeholders.
• Describe the varied career paths open to individuals with an accounting education.

2.2 Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses

2.3 Preparing an Income Statement, Statement of Owner’s Equity, and Balance Sheet

• Describe the income statement, statement of owner’s equity, balance sheet, and statement of cash flows, and how they interrelate.
• Define, explain, and provide examples of current and noncurrent assets, current and noncurrent liabilities, equity, revenues, and expenses.
• Prepare an income statement, statement of owner’s equity, and balance sheet.

3.2 The Expanded Accounting Equation and Its Relationship to Analyzing Transactions

3.3 The Initial Steps in the Accounting Cycle

3.4 Business Transactions and the Impact of Business Transactions on Financial Statements

3.5 Journal Entries and Recording Transactions and Posting to T-Accounts

3.6 A Trial Balance

• Describe principles, assumptions, and concepts of accounting and their relationship to financial statements.
• Define and describe the expanded accounting equation and its relationship to analyzing transactions.
• Define and describe the initial steps in the accounting cycle.
• Analyze business transactions using the accounting equation and show the impact of business transactions on financial statements.
• Describe how to use journal entries to record transactions and post to T-accounts.
• Explain how to prepare a trial balance.

4.2 The Adjustment Process and Common Types of Adjusting Entries

4.3 Recording and Posting the Common Types of Adjusting Entries

4.4 Using the Ledger Balances to Prepare an Adjusted Trial Balance

4.5 Preparing Financial Statements Using the Adjusted Trial Balance

• Explain the concepts and guidelines affecting adjusting entries.
• Discuss the adjustment process and illustrate common types of adjusting entries.
• Describe how to record and post the common types of adjusting entries.
• Explain how to use the ledger balances to prepare an adjusted trial balance.
• Describe the process of preparing financial statements using the adjusted trial balance.

5.2 Post-Closing Trial Balance

5.3 Computing Current Ratio and Working Capital Balance

5.4 Appendix: Complete a Comprehensive Accounting Cycle for a Business

• Describe and prepare closing entries for a business.
• Explain how to prepare a post-closing trial balance.
• Explain how to apply the results from the adjusted trial balance to compute current ratio and working capital balance, and explain how these measures represent liquidity.
• Complete a comprehensive accounting cycle for a business.

6.2 Perpetual versus Periodic Inventory Systems

6.3 Transactions for Merchandise Purchases Using the Perpetual Inventory System

6.4 Transactions for the Sale of Merchandise Using the Perpetual Inventory System

6.5 Transactions Applying the Two Commonly Used Freight-In Methods

6.6 Multi-Step and Simple Income Statements for Merchandising Companies

6.7 Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System

• Compare and contrast merchandising versus service activities and transactions.
• Compare and contrast perpetual versus periodic inventory systems.
• Analyze and record transactions for merchandise purchases using the perpetual inventory system.
• Analyze and record transactions for the sale of merchandise using the perpetual inventory system.
• Discuss and record transactions applying the two commonly used freight-in methods.
• Describe and prepare multi-step and simple income statements for merchandising companies.
• Appendix: Analyze and record transactions for merchandise purchases and sales using the periodic inventory system.

7.2 The Purpose of Special Journals and Their Importance to Stakeholders

7.3 Journalize Transactions Using Special Journals

7.4 A Subsidiary Ledger

7.5 Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems

• Define and describe the components of an accounting information system.
• Describe and explain the purpose of special journals and their importance to stakeholders.
• Analyze and journalize transactions using special journals.
• Explain how to prepare a subsidiary ledger.
• Describe career paths open to individuals with a joint education in accounting and information systems.

8.2 Internal Controls and Their Purpose within an Organization

8.3 Internal Controls within an Organization

8.4 Petty Cash Fund and Petty Cash Journal Entries

8.5 Management Responsibilities for Maintaining Internal Controls within an Organization

8.6 Bank Reconciliation

8.7 Fraud in Financial Statements

• Explain how fraud is analyzed in the accounting workplace.
• Define and explain internal controls and their purpose within an organization.
• Define the purpose and use of a petty cash fund, and prepare petty cash journal entries.
• Discuss the responsibilities of management for maintaining internal controls within an organization.
• Define the purpose of a bank reconciliation, and prepare a bank reconciliation and its associated journal entries.
• Describe fraud in financial statements and Sarbanes-Oxley Act requirements.

9.2 Uncollectible Accounts on the Balance Sheet

9.3 Receivables Management Using Financial Ratios

9.4 The Role of Accounting in Earnings Management

9.5 Revenue Recognition Principles in Long-Term Projects

9.6 Notes Receivable and Accounts Receivable

9.7 Appendix: Comprehensive Example of Bad Debt Estimation

• Explain the Revenue Recognition Principle and how it relates to current and future sales and purchase transactions.
• Explain how to account for uncollectible accounts using the balance sheet and income statement approaches.
• Describe how to determine the efficiency of receivables management using financial ratios.
• Discuss the role of accounting for receivables in earnings management.
• Describe how to apply Revenue Recognition Principles to long-term projects.
• Explain how notes receivable and accounts receivable are different.
• Complete the Comprehensive Example of Bad Debt Estimation activity.

10.2 Calculating the Cost of Goods Sold Using the Periodic Method

10.3 Calculating the Cost of Goods Sold Using the Perpetual Method

10.4 The Impact of Inventory Valuation Errors

10.5 The Efficiency of Inventory Management Using Financial Ratios

• Describe and demonstrate the Basic Inventory Valuation Methods and their cost flow assumptions.
• Explain how to calculate the Cost of Goods Sold and Ending Inventory using the Periodic Method.
• Describe how to calculate the Cost of Goods Sold and Ending Inventory using the Perpetual Method.
• Explain and demonstrate the impact of Inventory Valuation Errors on the Income Statement and Balance Sheet.
• Examine the efficiency of Inventory Management using Financial Ratios.

11.2 Capitalized Costs versus Expenses

11.3 Depreciation Methods to Allocate Capitalized Costs

11.4 Accounting for Intangible Assets and Record Related Transactions

11.5 Special Issues in Accounting for Long-Term Assets

• Distinguish between tangible and intangible assets.
• Analyze and classify capitalized costs versus expenses.
• Explain and apply depreciation methods to allocate capitalized costs.
• Describe accounting for intangible assets and record related transactions.
• Describe some special issues in accounting for long-term assets.

12.2 Reporting Current Liabilities

12.3 Accounting Treatment for Contingent Liabilities

12.4 Recording Short-Term Notes Payable

12.5 Recording Transactions Incurred in Preparing Payroll

• Explain how to identify and describe Current Liabilities.
• Describe the process of analyzing, journalizing, and reporting Current Liabilities.
• Define and apply Accounting Treatment for Contingent Liabilities.
• Explain how to prepare journal entries to record Short-Term Notes Payable.
• Describe how to record transactions incurred in preparing payroll.

13.2 Amortization of Long-Term Liabilities Using the Effective-Interest Method

13.3 Journal Entries that Reflect the Life Cycle of Bonds

13.4 Appendix: Special Topics Related to Long-Term Liabilities

• Explain how Long-Term Liabilities are priced.
• Describe how to compute amortization of Long-Term Liabilities using the Effective-Interest Method.
• Explain how to prepare Journal Entries to reflect the Life Cycle of Bonds.
• Analyze special topics related to long-term liabilities.

14.2 Issuance and Repurchase of Stock

14.3 Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits

14.4 Owners’ Equity versus Retained Earnings

14.5 Earnings per Share and Measuring Performance

• Explain the process of securing equity financing through the issuance of stock.
• Analyze and record transactions for the issuance and repurchase of stock.
• Record transactions and the effects on financial statements for cash dividends, property dividends, stock dividends, and stock splits.
• Compare and contrast Owners’ Equity versus Retained Earnings.
• Discuss the applicability of earnings per share as a method to measure performance.

15.2 Journal Entries Associated with a Partnership

15.3 Partners’ Share of Income and Loss

15.4 Recording the Admission and Withdrawal of a Partner

15.5 Recording Entries for the Dissolution of a Partnership

• Describe the advantages and disadvantages of organizing as a partnership.
• Describe how a partnership is created, including the associated journal entries.
• Explain how to compute and allocate partners’ share of income and loss.
• Describe how to prepare journal entries to record the admission and withdrawal of a partner.
• Discuss how to record entries for the dissolution of a partnership.

16.2 Operating, Investing, and Financing Activities

16.3 Preparing the Statement of Cash Flows Using the Indirect Method

16.4 Preparing the Completed Statement of Cash Flows Using the Indirect Method

16.5 Assess Liquidity and Solvency

16.6 Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method

• Explain the purpose of the Statement of Cash Flows.
• Differentiate between operating, investing, and financing activities.
• Explain how to prepare the Statement of Cash Flows using the Indirect Method.
• Explain how to prepare the Completed Statement of Cash Flows using the Indirect Method.
• Describe how to use information from the Statement of Cash Flows to prepare ratios to assess Liquidity and Solvency.
• Prepare a Completed Statement of Cash Flows Using the Direct Method.