PRINCIPLES OF ACCOUNTING II

I. CATALOG DESCRIPTION:
Emphasis on analysis and use of accounting within the business organization. Focus on
corporations: stockholders equity, long-term liabilities, inestments, funds and cash flows,
financial statement analysis, managerial accounting, !ob order and process cost
accounting, cost-olume profit analysis, break-een analysis, budgeting, standard costs,
actiity-based costing, other cost management tools and capital budgets. "rerequisite:
#usiness $% &completed with a grade of '() or higher*. + hours lecture, $ hour laboratory.
II. EXPECTED OUTCOMES FOR STUDENTS:
,pon completion of this course, the student should be able to:
%. identify differences between accounting for corporations as contrasted to other
business forms-
#. record transactions affecting .hareholders Equity including stock, diidends, and
retained earnings-
(. !ournalize transactions affecting /ong 0erm /iabilities such as bonds "ayable and
the impact of interest e1pense-
2. account for short term and long term corporate inestments in securities and bonds-
E. prepare a .tatement of (ash Flows using the direct and indirect methods-
F. analyze and interpret financial statements using rations, trends and other analytical
tools-
3. e1plain the role of managerial accounting &ersus financial accounting* and the
primary informational needs of managers-
4. compare and contrast arious costing systems including !ob order costing, process
costing and actiity bases costing-
5. perform cost-olume-profit analysis, break-een analysis and other cost
management procedures- and use them as a predictie tool-
6. identify the components of a master budget and e1plain responsibility accounting-
7. prepare fle1ible budgets using standard costs and product costing-
/. deelop an actiity-based costing system and use it in decision making-
8. prepare capital budgets and e1plain how payback, 9:9 and ;"< are used in
decision-making.
III. CONTENT:
%. (orporations
$. ;ature and formation
=. 2ifferences from other forms of business organization
>. %ccounting for paid-in-capital through common stock and preferred stock
+. (ash and stock diidends, treasury stock, retained earnings, and income
reporting
?. 5ncome statement categories including continuing operations, discontinued
operations, e1traordinary items prior period ad!ustments, and primary and
diluted earnings per share
@. #alance sheet and statement of retained earnings
=. /ong term debt
$. #ond types and characteristics
=. %ccounting for the issuing, conerting and retiring of bonds
>. %mortizing discounts and premiums on bonds using the straight-line and
effectie-interest method
+. #onds ersus stock
?. /eases and long-term notes payable
>. 5nestment in corporate securities and bonds
"age =
$. 8arketable securities and stock price
=. 0rading inestments, aailable-for-sale inestments, equity-method
inestments
>. (onsolidated balance sheet and income statement
+. 5nesting in bonds, notes and related topics
?. Foreign currency transactions
+. .tatement of cash flows
$. :perating, inesting and financing actiities
=. 5ndirect method for operating actiities
>. 2irect method for operating actiities
+. 5nterpretation of cash flow statements
?. Financial statement analysis
$. .tandards for financial analysis
=. 4orizontal and ertical analysis
>. #enchmarking
+. 9atios and other analytical tools in decision making
@. 8anagerial accounting
$. "rimary actiities and informational needs of managers
=. .erice, merchandising and manufacturing enironments and the alue chain
>. 2etermining costs and impact on financial statements
+. Ethical standards and decision guidelines
A. 6ob order costing
$. "roduct costs- process or !ob costing
=. 5n a manufacturing or serice enironment
>. %ccounting for materials and labor
+. %llocating manufacturing oerhead
?. %ccounting for competition and the sale of finished goods
B. "rocess (osting
$. 2ifferences between !ob order and process costing
=. 5n first department with no beginning inentory
>. 5n additional departments
+. 8anagers using a production cost report
C. (ost-olume-profit analysis
$. <ariable, fi1ed and mi1ed costs relationships
=. #reak een analysis
>. .ensitiity analysis
$D. 8aster budget and responsibility accounting
$. #udget preparation and use
=. (omponents of the master budget
>. ,nit and company wide budgets
+. 9esponsibility accounting performance reports
$$. Fle1ible budgets and standard costs
$. "reparation and use of fle1ible budgets
=. ,sing standard costs
>. <ariances analysis including direct labor and material ariances and
oerhead ariances
+. .tandard cost accounting systems
$=. %ctiity-based costing and other cost management tools
$. 2eeloping an actiity-based costing system
=. %ctiity-based management and decision making
>. 6ust-in-time systems
+. (ontinuous improement and managing quality
$>. .pecial business decisions and capital budgeting
$. 2ecision making process in business
=. "reparing and using a capital budget
>. ,sing payback, rate-of-return, and net present alue to make capital budget
decisions
"age >
IV. METHODS OF INSTRUCTION:
5nstructors may choose from a ariety of teaching approaches that will be appropriate for
the ob!ecties of a specific lesson or topic.
%. /ecture and demonstration of accounting principles
#. 2iscussion of student questions
(. 5nteractie e1ercises and problem soling
2. 3roup actiities
E. "ower"oint, ideo and compute-images when appropriate
F. :utsideEinternet research
3. "ublishers website for actiities and assessments
V. TYPICAL ASSIGNMENTS:
%. 5n-class assigned problems
$. Frite the !ournal entries to amortized the bond discount using the effectie-
interest method
=. (alculate the diluted E". &earnings per share* for the described situation
=. 4omework assignments
$. read the first half of the chapter and complete .tarters $ G @, E1ercises = H >,
and "roblems > H ? haing to do with horizontal, ertical and ratio analysis
=. %t the publishers website, complete the mid-chapter assessment for chapter
$?
>. Iuizzes
$. %t the publishers website, complete the end-of-chapter assessment for
chapter =$
=. Fill in the blank with the proper accounting term regarding process costing
+. "rogress e1ams and final e1am
$. 0 or F G a budget is a quantitatie e1pression of a plan that helps managers
coordinate and implement the plan
=. 3ien a certain set of data, prepare a schedule of cost of goods
manufactured for the %#( (ompany for the year ending $=E>$EDA
VI. EVALUATION:
%. 8ethods:
$. 5nstructors should select the appropriate method on ealuating students using
a ariety of assignments, quizzes and tests
=. (lass participation and in-class assigned problems
>. 4omework assignments
+. Iuizzes
?. "rogress e1ams and final e1am
=. Frequency G spread throughout the semester
$. (lass participation and assigned problems eery week
=. Frequent homework assignments collected to assess learning progress
>. "eriodic quizzes will be gien
+. 9egular progress e1ams and a final e1am
VII. TYPICAL TEXTS:
%. 8eg "ollard, .herry 0. 8ills and Falter 0. 4arrison, Principles of Accounting, ,pper
.addle 9ier, ;ew 6ersey: "rentice 4all, =DDA.
=. (harles 0. 4orngren and Falter 0 4arrison, Accounting, A
th
Edition. ,pper .addle
9ier, ;ew 6ersey: "rentice 4all, =DDA.
>. 6erry 6. Feygandt, 2onald E. 7ieso and "aul 2. 7immel, Accounting Principles, A
th

Edition. 4oboken, ;ew 6ersey: 6ohn Filey H .ons, 5nc, =DD+.
VIII. OTHER MATERIALS REQUIRED OF STUDENTS:
%. #asic four function calculator
#. (omputer and 5nternet access
"age +
(reation 2ate: $CC>
9eision 2ate: =DDA
2ate %pproed by (urriculum (ommittee: ?EDCE=DDA
2ate %pproed for 2istance Education: ?EDCEDA realidated
Effectie 2ate: Fall =DDB