Fundamental Accounting Principles

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ACCT 102
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Chap1 Accounting in Business

• 1. Why Accounting?
• 2. What is Accounting?
• 3. Ethics in accounting
• 4. Accounting model / Accounting equation
• 5. Transaction analysis and recording
• 6. Financial Statement
• 7. Decision analysis ROE ROA
• Case Coca Cola, Pepsi Cadbury Schweppes

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Chap 2 Analyzing and Recording Transactions

• Analyzing and Recording Process
• Source document, Accounts Ledger
• T-account vs. Debit Credit
• Double-Entry Accounting
• Journalizing and Posting transactions
• Transaction analysis for FastForward
• Trial Balance
• Decision analysis Debt ratio
• Wells Fargo, Hangseng Bank, CCB

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Chap 3 Adjusting Accounts and Preparing Financial
Statements

• Periodic reporting / Time period principle
• Accrual Accounting and Cash Accounting
• Account Adjustment
• Prepaid expense
• Unearned revenue
• Accrued expense
• Accrued revenue
• Adjusted Trial Balance (ATB)
• Preparation of Financial statement from ATB
• Decision Analysis Profit Margin
• Case Intel AMD

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Chap 4 Completing the Accounting Cycle

• Use of Worksheet
• Closing Process
• Accounting Cycle
• Classification of Financial Statement
• Decision Analysis Current ratio
• Review Exercise
• (6 Problems, Please be Prepared)

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Chap 5 Accounting for Merchandising Operations

• Specialty of merchandising activities
• Accounting for merchandise purchasing
• Accounting for merchandise sales
• Completing Accounting cycle
• Financial statement format
• Decision Analysis
• Current Ratio
• Acid-test ratio
• Gross margin ratio
• Case Walmart Target

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Chap 6 Inventories and Cost of Sales

• 1. Basics of Inventory
• 2. Inventory costing under a perpetual system
• Specific identification, FIFO, LIFO, weighted
  average
• 3. Inventory valuation and effect of inventory
  error
• LCM principle
• 4. Decision analysis
• Inventory turnover
• Days sale in inventory
• Case Walmart Target

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Chap 9 Accounting for Receivables

• Recognize Accounts Receivable
• Valuing Accounts Receivable
• Bad debt allowance Bad debt expense
• Notes Receivable
• Disposing of Receivables
• Decision Analysis
• Accounts Receivable Turnover

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Chap 10 Plant Assets, Natural Resources, and
Intangibles

• 1. PPE cost determination
• 2. Depreciation of PPE
• 3. Additional Expenditure of PPE
• 4. Disposal of PPE
• 5. Nature resources
• 6. Intangible assets
• 7. Decision analysis Total asset turnover

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Chap 11 Current Liabilities and Payroll Accounting

• 1. Characteristics of liabilities
• 2. Determinable liabilities
• 3. Estimated liabilities
• Warranty Liabilities
• Contingent Liabilities
• 4. Decision analysis
• Times interest earned

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Chap 13 Accounting for Corporations

• 1. Corporate form of organization
• 2. Common Stock (Par Vs. Non-Par)
• 3. Preferred Stock (Cumulative Vs.
  Non-cumulative)
• 4. Dividends (Stock Dividend)
• 5. Treasury Stock (Purchase and Reissue Treasury
  Stock)
• 6. Reporting Income and Equity
• 7. Decision analysis
• BPS
• Dividend yield
• PE ratio
• Case Pfizer, Johnson Johnson, Eli Lilly

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Chap 14 Long-Term Liabilities

• Basics of Bond
• Bond Issuance (Bond Discount/Premium
  Amortization, Present value of Bond)
• Bond Retirement
• Long-term Note payable (Installment Note with
  Equal Payment or Equal Principal Payment)
• Decision Analysis
• Pledged assets to secured liability ratio

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Chap 15 Investments and International Operations

• Basics of Investments
• Basic of Accounting for Investments
• Accounting for AFS Trading securities
• Accounting for Influential Investments
• Equity Method for Significant Influential
  Investment
• Accounting Summary for security Investments
• International Operation (Exchange Rate
  Fluctuation)
• Decision Analysis
• Component of ROA

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Chap 16 Reporting the Statement of Cash Flows

1. Basics of Cash flow reporting
2. Cash flow from operating (Direct Method and
   Indirect Method, Reconciliation between Indirect
   and Direct Method)
3. Cash flow from investing (Reconstruction
   Analysis)
4. Cash flow from financing (Reconstruction
   Analysis)
5. Interpretation of Statement of Cash flow
6. Decision analysis Cash flow on total assets

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Chap 17 Analysis of Financial Statements

• 1. Basics of analysis
• 2. Horizontal Analysis
• 3. Vertical Analysis
• 4. Ratio Analysis
• 5. Decision Analysis Analysis reporting

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Chap 18 Managerial Accounting Concepts and
Principles

• 1. Managerial Accounting Basics
• 2. Managerial Cost Concepts
• 3. Reporting Manufacturing Activities
• Balance Sheet
• Income Statement
• Flow of Manufacturing Activities
• Manufacturing Statement
• 4. Decision analysis
• Unit Contribution Margin
• Contribution Margin Ratio

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Chap 19 Job Order Cost Accounting

• Job Order Costing Accounting System
• Job Order Cost Flows and Reports
• Overhead and Overhead Application
• Adjust Overapplied and Underapplied Overhead
• Job Order Accounting Typical Journal Entries

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Chap 20 Process Cost Accounting

• Process Operation
• Process Cost Accounting
• Equivalent Units of Production
• Process Costing Illustration
• GenX Company
• Hybrid Costing System
• Process Costing Typical Accounting Entries

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Chap 22 Cost-Volume-Profit Analysis

• Purpose of C-V-P Analysis
• Identifying Cost Behavior
• Measuring Cost Behavior
• Using Break-Even Analysis
• Applying C-V-P Analysis
• Decision Analysis
• Degree of Operating Leverage

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Chap 25 Capital Budgeting and Managerial Decisions
Exh. 25-5,6

• Capital Budgeting
• Method Not using Time Value of Money
• Method using Time Value of Money
• Managerial Decision
• Decision and Information
• Managerial Decision Scenarios
• Decision Analysis
• Break-Even Time