Course Outline School: Department: Course Title: Business Accounting Financial Accounting Concepts Course Code: ACCT 123 Course Hours/Credits: 42 Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: N/A N/A Yes Terry Goldthorpe Creation Date: Fall 2014 Revised by: Terry Goldthorpe, Gopika Joseph Revision Date: Fall 2014 Current Semester: Summer 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.
Course Description This course is offered to business majors. This course gives you an overview of the financial reporting process. It concentrates on the recording process and the production of financial statements. The course introduces simple tools to allow you to analyze financial information and explain the information contained in the financial statements in your future roles as managers, investors, or other users of financial accounting information. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs, visit http://www.collegeoftrades.ca/training-standards. Course Learning Outcomes The student will reliably demonstrate the ability to: 1. 2. 3. 4. 5. 6. 7. 8. Apply knowledge of fundamental concepts of financial accounting. Analyze business transactions and make appropriate accounting entries including transactions involving cash, accounts receivable notes receivable and accounts payable, by analyzing the underlying business transactions. Apply Generally Accepted Accounting Principles, specifically the principle of revenue and expense recognition. Provide a general overview of the changes in Canadian GAAP as it relates to International Financial Reporting Standards (IFRS) and Canadian GAAP for Private Enterprises. State the importance of ethics in financial reporting. Prepare financial statements required under Ontario and Canadian legislation relating to business proprietorships, specifically the Balance Sheet, Income Statement and Statement of Owners Equity. Implement and maintain paper accounting records. Explain features of internal controls and how these controls apply to cash and prepare a bank reconciliation. Essential Employability Skills (EES) The student will reliably demonstrate the ability to*: 1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the purpose and meets the needs of the audience. 4. Apply a systematic approach to solve problems. 5. Use a variety of thinking skills to anticipate and solve problems. 7. Analyze, evaluate, and apply relevant information from a variety of sources. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2
Global Citizenship and Equity (GC&E) Outcomes The student will reliably demonstrate the ability to*: 1. Identify one's roles and responsibilities as a global citizen in personal and professional life. 5. Identify and challenge unjust practices in local and global systems. *There are 6 institutional Global Citizenship & Equity outcomes. Of these 6 outcomes, the following will be assessed in this course. Text and other Instructional/Learning Materials Text Book(s): Key Accounting Principles, Volume 1, 3rd Edition, Joffe; AME Learning Inc., 2011 [ISBN: 978-1-926751-10-8 available at the Centennial College Bookstore] Online Resource(s): amelearning.com Material(s) required for completing this course: Student Workbook (included with purchase of textbook) Custom Courseware: ameengage.com Evaluation Scheme Quizzes: Online quizzes on individual chapters Assignments: Online assignment on individual chapters Test 1: chapters 1-4 inclusive Test 2: chapters 5-7 inclusive Final Examination: Comprehensive Exam (Chapters 1-9 & 12) Evaluation Name CLO(s) EES GCE Outcome(s) Outcome(s) Weight/100 Quizzes 1, 3, 4 1, 5, 7 1, 5 15 Assignments 1, 2, 3, 4, 5 5, 7 15 Test 1 1, 2, 7 1, 4, 5, 7 1, 5 25 Test 2 5, 6, 7 5, 7 20 Final Examination 6, 7, 8 4, 5, 7 1, 5 25 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test. All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void. Student Accommodation THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3
It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. Use of Dictionaries English-Additional Language (e.g. English-Chinese) or Additional Language-English (e.g. Russian- English) dictionaries may be used in regular class work. Dictionaries may be used in tests and examinations, or in portions of tests and examinations, as long as they are non-electronic (not capable of storing information) and hard copy (reviewed by the invigilator to ensure notes are not incorporated that would affect test or examination integrity). Program or School Policies N/A Course Policies N/A College Policies Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit www.centennialcollege.ca/aboutcentennial/college-overview/college-policies. Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4
demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5
Topical Outline (subject to change): Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name 1-2 Financial Statements: Chapter 1 Personal Accounting 3 Linking Personal Accounting to Business Accounting 4 Accounting Principles and Practices in a Business Chapter 2 Chapter 3 5 Revenue and Expenses Recognition Chapter 4 Provide an overview of the importance and purpose of accounting. Explain how the course works. Introduce the concepts of assets, liabilities & net worth; the concept of money and value; the role of the balance sheet and the income statement. Discuss the accounting equation & accounting periods. Illustrate the effect of borrowing money and repaying debt, buying and selling assets. Review personal accounting. Discuss the concept of accrual based accounting and how it is different from accounting on a cash-basis. Introduce T-Account worksheets. Introduce the matching principle, prepaid expenses, materiality and how it relates to financial accounting. Include a discussion on depreciation, capital and market value vs book value, and ethics in personal finance. Identify the different forms of organizations (proprietorship, partnership, corporations and NPOs). Identify the different types of stakeholders and how they rely on the financial statements. Identify and discuss the similarities between personal and business accounting. Draw comparisons between personal and business accounting to show how accounting concepts from personal accounting can be easily applied to business transactions. Discuss owner's equity vs. net worth and business transactions for a service business. Introduce GAAP and how it relates to financial accounting. Discuss GAAP characteristics and principles. Introduce IFRS and discuss the benefits of IFRS. Discuss the similarities between GAAP and IFRS. Introduces and illustrate the three ways to recognize revenue (customer pays cash, customer pays later or customer pays in AP-2, AP-3, AP-6, AP- 7, AP-9, AP-12 AP-13, AP-14, AP- 18, AP-19, AP-21, AP-23 AP-1, AP-3, AP-4, AP- 6, AP-7, AP-9, AP-17, AP-18 AP-1, AP-4, AP-5, AP- 6, AP-8, AP-10, AP-11, AP-12 AP-1, AP-2, AP-4, AP- 6, AP-7, AP-9, AP-10, AP-12 Quiz #1 assignment #1 Quiz #2 assignment #2 Quiz #3 assignment #3 Quiz #4 Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name advance) and the three ways to recognize expense (pay with cash, charge on account or assignment #4 pay in advance). Show how to adjust for unearned revenue, prepaid expenses accumulated expenses and depreciation. 6 Test 1 Chapters 1-4 inclusive All objectives covered in chapters 1-4 All questions/exercises covered in class and online learning. 7 Business Accounting Cycle Part I 8 Business Accounting Cycle Part II 9 Merchandising Corporation Chapter 5 Chapter 6 Chapter 7 Introduce the logic of debits and credits. Show how to create journal entries in the general journal and how to post from the journal to the general ledger. Update the balances in the general ledger and illustrate how to create a trial balance. Illustrate the complete accounting cycle. Show how to complete a worksheet and prepare adjusting entries. Create the income statement, statement of owner's equity and the balance sheet. Show how to close the books to complete the full accounting cycle. Introduce merchandising business and the concept of common shares and retained earnings. Discuss cost of goods sold, gross profit. Review COGS and gross profit. Introduce the concept of current versus long term debt. Illustrate how to create the multistep income statement and the classified balance sheet. AP-1, AP-2, AP-3, AP- 5, AP-7, AP-9, AP-10, AP-11 AP-1, AP-2, AP-6, AP- 7, AP-10, AP- 11, AP- 12 AP-2, AP-3, AP-4, AP- 6, AP-9, AP-11, AP-12, AP-14, AP- 15, AP-16 10 Test 2 Chapters 5-7 inclusive All objectives covered in chapters 5-7 All questions/exercises covered in class and online learning. 11-12 Inventory Chapter 8 Review concepts related to merchandising operations. Illustrate purchases using the perpetual inventory system (including returns and discounts). Illustrate sales using the perpetual inventory system (including returns and discounts). Review the perpetual inventory system. Discuss inventory valuation and illustrate specific identification, FIFO and weighted average. Discuss controls relating to inventory. AP-1, AP-2, AP-4, AP- 6, AP-7 AP-9, AP-10, AP- 11, AP-13, AP-14, AP-15, AP-16, AP- 18 25% of final grade Quiz #5 assignment #5 Quiz #6 assignment #6 Quiz #7 assignment #7 20% of final grade Quiz #8 assignment #8 Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluation Name inventory. 13 Financial Statement Chapter 12 Quiz #9 Analysis Discuss the importance of financial ratios. Calculate profitability ratios, liquidity ratios and management ratios. Understand how to interpret different ratios and compare them across different companies. 14 Final Exam Chapters 1-9 & 12 All objectives covered in the course from chapters 1-9 & 12. AP-1, AP-3, AP-4, AP- 5, AP-6, AP-7, AP-11, AP-12, AP- 14, AP-16, AP-17 All questions/exercises covered in class and online learning. assignment #9 25% of final grade Evaluation Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 8