This module is aimed at students who have taken an introductory course in accounting. This module covers additional fundamental accounting concepts not covered in the introductory module. This includes a repeat of the nature of debits and credits, the organization of accounts, the recording of transactions, the use of the specific and general journals and ledgers, the trial balance, adjusting and closing entries, the adjusted trial balance, and simple financial statements as they are applied to long-term assets, long-term liabilities, and owners' equity.
The following is a list of the specific topics this module covers.
- Long-term Assets:
- Land, buildings, plant and equipment, notes receivable, other long-term assets and investments.
- Depreciation Expense:
- Depreciation methods.
- Fixed Asset Disposal:
- Sales and retirements of depreciated assets.
- Gains and losses on disposals of depreciated assets.
- Post-Purchase Expenditures on Fixed Assets:
- Repairs, Replacements, and Betterments.
- Corrections of errors in useful life estimate.
- Long-term Liabilities:
- Notes payable, bonds payable, interest expense.
- Equity:
- Partnership equity, preferred stock, common stock, retained earnings, dividends, earnings per share.
- Revenues:
- Sales discounts, sales returns and allowances, interest income, unearned revenue.
- Cost of Goods Sold:
- Cost of goods sold computation using the periodic inventory system.
- Simple Balance Sheet, Simple Income Statement, Simple Notes:
- Preparing, presenting, and interpreting simple balance sheets, income statements, and notes to the financial statements with emphasis on the long-term assets, long-term liabilities, and equity elements.
- Simple Statements of Owners' Equity and Retained Earnings:
- Preparing, presenting, and interpreting simple statements of owners' equity and statements of retained earnings.
- Simple Statement of Cashflows:
- Preparing, presenting, and interpreting simple statements of cashflows.
- Comprehensive Example:
- An application of these additional basic accounting principles to a simple going concern.
- Questions: 1,050 practice questions with explained solutions.
Pre-requisites for this Module
Thorough knowledge and understanding of the material covered in the Introduction to Financial Accounting I module is the prerequisite for this module.
This module is a pre-requisite for the Intermediate to Financial Accounting I, Managerial Accounting I, Corporate Financial Management I, and Personal/Household Finance modules.