Principles of Accounting I
The theory of debits and credits and the accounting cycle is covered. The course is a study of the preparation and interpretation of corporate financial statements with an emphasis on analysis and decision-making techniques through close examination of cash, receivables, inventory, fixed assets and depreciation, and current liabilities.
Learning Outcomes
After successful completion of this course, students will be able to:
- Determine how to classify accounts by type, normal balance, and financial statement placement.
- Explain the accounting cycle and all steps involved.
- Prepare and interpret financial statements for both service and merchandising businesses.
- Record inventory and explain the inventory valuation systems.
- Explain and record various transactions involving Cash (including a bank reconciliation).
- Explain and record transactions for Receivables (both accounts and notes) and bad debts calculations
- Explain and record transactions for Plant Assets, Natural Resources, and Intangible Assets including various depreciation methods, depletion, and amortization.
- Explain and record transactions for current liabilities including payroll taxes.