ACCT 2301 Course Learning Objectives – Pearson Text

Horngren’s Financial and Managerial Accounting, 5th EditionMiller-Nobles, Mattison, MatsumuraLearning Objectives by Chapter

Chapter 1 – Accounting and the Business Environment 

  1. Explain why accounting is important and list the users of accounting information
  2. Describe the organizations and rules that govern accounting
  3. Describe the accounting equation and define assets,liabilities, and equity
  4. Use the accounting equation to analyze transactions
  5. Prepare financial statements
  6. Use financial statements and return on assets (ROA) to evaluate business performance

Chapter 2 – Recording Business Transactions

  1. Explain accounts as they relate to the accounting equation and describe common accounts
  2. Define debits, credits, and normal account balancesusing double-entry accounting and T-accounts
  3. Record transactions in a journal and post journalentries to the
  4. Prepare the trial balance and illustrate how to use the trial balance to prepare financial statements
  5. Use the debt ratio to evaluate business performance

Chapter 3 – The Adjusting Process

  1. Differentiate between cash basis accounting and accrual basis accounting
  2. Define and apply the time period concept, revenue recognition, and matching principles
  3. Explain the purpose of and journalize and postadjusting entries
  4. Explain the purpose of and prepare an adjusted trial balance
  5. Identify the impact of adjusting entries on the financial statements
  6. Explain the purpose of a worksheet and use it toprepare adjusting entries and the adjusted trial balance (Omit)
  7. Understand the alternative treatments of recording deferred expenses and deferred revenues(Appendix 3A) (Omit)

Chapter 4 – Completing the Accounting Cycle

  1. Prepare the financial statements including the classified balance sheet
  2. Use the worksheet to prepare financial l statements (Omit)
  3. Explain the purpose of, journalize, and post closing entries
  4. Prepare the post-closing trial balance
  5. Describe the accounting cycle
  6. Use the current ratio to evaluate business performance
  7. Explain the purpose of, journalize, and post reversing entries (Appendix 4A) (Omit)

Chapter 5 –Merchandising Operations

  1. Describe merchandising operations and the two types of merchandise inventory systems
  2. Account for the purchase of merchandise inventory using a perpetual inventory system
  3. Account for the sale of merchandise inventory using a perpetual inventory system
  4. Adjust and close the accounts of a merchandising business (Omit)
  5. Prepare a merchandiser’s financial statements
  6. Use the gross profit percentage to evaluate business performance
  7. Account for the purchase and sale of merchandise inventory using a periodic inventory system (Appendix 5A) (Omit)

Chapter 6 – Merchandise Inventory

  1. Identify accounting principles and controls related to merchandise inventory
  2. Account for merchandise inventory costs under a perpetual inventory system
  3. Compare the effects on the financial statements when using the different inventory costing methods
  4. Apply the lower-of-cost-or-market rule to merchandise inventory
  5. Measure the effects on merchandise inventory errors on the financial statements
  6. Use inventory turnover and days’ sales in inventory to evaluate business performance
  7. Account for merchandise inventory costs under a periodic inventory system (Appendix 6A) (Omit)

Chapter 7 –Internal Control and Cash

  1. Define internal control and describe the components of internal control andcontrol procedures
  2. Apply internal controls to cash receipts
  3. Apply internal controls to cash payments
  4. Explain and journalize petty cash transactions (Omit)
  5. Demonstrate the use of a bank account as a control device and prepare a bank reconciliation and related journal entries
  6. Use the cash ratio to evaluate business performance

Chapter 8 – Receivables

  1. Define and explain common types of receivables and journalize sales on credit, credit card sales, and debit card sales
  2. Apply the direct write-off method for uncollectibles (Omit)
  3. Apply the allowance method for uncollectibles and estimate bad debts expense based on the percent-of-sales, percent-of-receivables, and aging-of-receivables methods (Omit percent–of-sales)
  4. Account for notes receivable including computing interest and recording honored and dishonored notes
  5. Use the acid-test ratio, accounts receivable turnover ratio, and days’ sales in receivables to evaluate business performance

Chapter 9 – Plant Assets, Natural Resources and Intangible

  1. Measure the cost of a plant asset
  2. Account for depreciation using the straight-line, units-of-production, and double-declining-balance methods
  3. Journalize entries for the disposal of plant assets
  4. Account for natural resources
  5. Account for intangible assets
  6. Use the asset turnover ratio to evaluate business performance
  7. Journalize entries for the exchange of plant assets (Appendix 9A) (Omit)

Chapter 10 – Investments (Omit entire chapter) Chapter 11 – Current Liabilities and Payroll

  1. Account for current liabilities of known amount
  2. Calculate and journalize basic payroll transactions
  3. Account for current liabilities that must be estimated (Omit content on bonuses and vacation, health and pension benefits, pages 568-569)
  4. Account for contingent liabilities
  5. Use the times-interest-earned ratio to evaluate business performance

Chapter 12 – Long-Term Liabilities

  1. Journalize transactions for long-term notes payable and mortgages payable
  2. Describe bonds payable
  3. Journalize transactions for bonds payable and interest expense using the straight-line amortization method
  4. Journalize transactions to retire bonds payable
  5. Report liabilities on the balance sheet
  6. Use the debt to equity ratio to evaluate business performance
  7. Use time value of money to compute the present value of future amounts (Appendix 12A)
  8. Journalize transactions for bonds payable and interest expense using the effective-interest amortization method (Appendix 12B) (Omit)

Note: Appendix A Required Chapter 13 – Stockholders’ Equity

  1. Identify the characteristics of a corporation
  2. Journalize the issuance of stock
  3. Account for the purchase and sale of treasury stock
  4. Account for cash dividends, stock dividends, and stock splits
  5. Explain how equity is reported for a corporation
  6. Use earnings per share, rate of return on common stock, and the price/earnings ratio to evaluate business performance

Chapter 14 – The Statement of Cash Flows

  1. Identify the purposes of the statement of cash flows and distinguish among operating, investing, and financing cash flows
  2. Prepare the statement of cash flows by the indirect method
  3. Use free cash flow to evaluate business performance
  4. Prepare the statement of cash flows by the direct method (Appendix 14A) (Omit)
  5. Prepare the statement of cash flows by the indirect method using a spreadsheet (Appendix 14B) (Omit)

Chapter 15 – Financial Statement Analysis

  1. Explain how financial statements are used to analyze a business
  2. Perform a horizontal analysis of financial statements
  3. Perform a vertical analysis of financial statements
  4. Compute and evaluate the standard financial ratios
  5. Complete a corporate income statement including earnings per share (Appendix 15A) (Omit)