ACTG 211: Fundamentals of Financial Accounting
Prerequisite: Sophomore standing
Credit Hours: (3)
A comprehensive introduction to the fundamental concepts and procedures in accounting for proprietorships, partnerships, and corporations. Emphasis is on the user perspective. ACTG 211 is a business core requirement.
Detailed Description of Content of Course
The content of this course includes the basic elements of financial statements (assets, liabilities, equity, revenues, expenses, gains, losses, and profit). This is accomplished through a detailed study of financial statements and the impact that typical business transactions have on the financial statement elements. Such study is based on Generally Accepted Accounting Principles (GAAP) as applied to the accrual basis of accounting, and as contrasted with cash basis accounting. The study of financial statements will focus primarily on the income statement, balance sheet, and statement of cash flows. Typical business transactions are also examined, including the calculations (such as interest, dividends, gains, etc.) necessary to develop these transactions. Also introduced are the flows of data (primarily documents) within an organization that evidence the use and/or acquisition of a firm’s financial resources. Throughout the course, the use of accounting information in decision making, particularly via ratio analysis, will be studied.
Detailed Description of Conduct of Course
The study of transactions and their impact on the financial statements will require some knowledge of double entry accounting and the accounting process. However, the course will focus on the use of accounting information in decision making.
Test and homework problems will be oriented toward problem solving abilities, not number crunching. Knowing which formulae to apply and how to interpret the results of a calculation will be emphasized, not just how to do the calculation. The bulk of the class time will follow the traditional lecture format, though individual and group work exercises will also be utilized.
Homework assignments (either online or of the traditional format) will be given. These assignments will often require the use of spreadsheets, expert systems, on-line databases, or other decision support software.
Goals and Objectives of the Course.
Students who complete this course successfully should be able to:
1. Analyze business transactions by:
a. making necessary calculations of interest, discounts, etc.
b. determining the financial statement impact of the transaction.
2. Construct basic financial statements from a list of events or financial statement elements.
3. Use accounting information to plan, evaluate performance, and make decisions.
4. Explain the differences between the primary types of business organizations, how each type of organization is established, and the various benefits and burdens of each.
5. Identify basic controls contained in or missing from given business situations.
6. Compare and contrast the liquidity, solvency, and profitability of two or more entities using ratio analyses based on financial statement information.
Assessment of the objectives listed in part D will be made via exams, homework assignments, and other projects. Individual student grades will be constructed from their performances on these measures.
Other Course Information
Review and Approval
Date Action Reviewed by
February 2011 Reviewed
March 27, 2012 Revised