Principles of Accounting Level 2

Principles of Accounting I Module 1
Introduction to Accounting

• Stereotypes of an Accountant
• Entity Concepts
• Core Accounting Principles
• The Language of Business
• Disciplines of Accounting
• Financial Accounting
• Key Concepts
• The Financial Reporting Model
• Usefulness of Accounting in Careers and Life
• The Importance of Ethics

Principles of Accounting I Module 2
The Accounting System

• System Design
• Accounts Debits
• Accounts Credits
• Transaction Analysis
• General Journal
• Charts of Accounts
• Source Documents
• Thinking About Automation
• No Guarantee of Correctedness
• Critical Thinking About Debits and Credits

Principles of Accounting I Module 3
Income Measurement and the Accounting Cycle

• An Emphasis on Transactions and Events
• The Periodicity Assumption
• Revenue Recognition
• Expense Recognition
• Adjusting Entries
• The Adjusting Process for Revenues
• The Accounting Cycle
• Reporting Periods and Worksheets
• Cash Basis of Accounting
• Historical Cost Principle

Principles of Accounting I Module 4
Cash, Receivables, and Controls

• Concepts of Cash
• Cash Management and Control
• Bank Reconciliations
• Petty Cash Funds
• Cash Short Account
• Accounts Receivable
• Selling on Credit
• Interest Charges
• Direct Write-Off Method
• Allowance Techniques for Uncollectible Accounts

Principles of Accounting I Module 5
Inventory

• Recording Purchase of Asset
• Gross Profit
• Categories of Inventory
• Inventory Costs
• Freight
• Cost Assignment
• Perpetual Systems
• Comparing Methods
• The Importance of Accuracy
• Physical Inventory

Principles of Accounting I Module 6
Plant Assets

• Property, Plant and Equipment
• Typical Vs. Mega Company Balance Sheet
• Ordinary and Necessary Costs
• Special Rules
• Materiality Issues
• Depreciation
• The Straight-Line Method of Depreciation
• The Double-Declining-Balance Method of Depreciation
• Revisions in Depreciation
• Asset-Related Costs Subsequent to Acquisition

Principles of Accounting I Module 7
Current Liabilities

• Operating Cycle
• Accounts Payable
• Notes Payable
• Accruals
• Prepayments, Deposits, and Collections for Others
• Estimated Liabilities
• Being a Better Borrower
• Concepts in Payroll Accounting
• Calculating Gross and Net Pay
• Payroll Journal Entries

Principles of Accounting I Module 8
Corporate and Partnership Equity

• The Corporation
• Initial Public Offering
• The Partnership
• The Sole Proprietorship
• Accounting for Sole Proprietorships and Partnerships
• Basic Accounting Considerations
• Corporate Equity Transactions
• Corrections of Errors
• Changes in an Accounting Method
• Retrospective Adjustment

Principles of Accounting I Module 9
Analysis

• Common-Size Financial Statements
• Ratio Analysis
• Liquidity Analysis
• Debt Service Analysis
• Turnover Analysis
• Profitability Analysis
• Other Measures
• Earnings-Per-Share
• Recap and Summary Illustration
• Calculation of Ratios