This course is designed to teach students to master financial accounting principles related to income and assets, with an emphasis on revenue recognition, asset valuation issues and financial statement and related footnote presentation.

1 – Students will be able to describe the process used in the United States to create and modify financial standards. Students will be able to discuss the politics that are present in the financial standard creation process. Students will have a general understanding of the hierarchy of the authoritative accounting literature.

2 – Students will be able to define assets and distinguish between current and non-current assets. With regard to current assets, students will be able to properly value and classify cash, investments, inventory, and accounts receivable so that they can record appropriate journal entries from the prospective of the owner. With regard to non-current assets, students will be able to properly identify tangible and non-tangible assets, properly allocate the cost of the assets over its useful life, identify and properly value asset impairments, and record all related journal entries from the prospective of the owner.

3 – Students will understand and properly account for leases from the perspective of the lessor.

4 – Students will be able to perform risk and profitability analyses to evaluate a company’s financial position and performance.

5 – Students will be able to identify the proper accounting period in which revenue should be recorded.

6 – Students will be able to create a classified income statement and identify financial statement line items that are included in operating income, separately reported items, and unusual and infrequent items.

7 – Students will be able to create a statement of comprehensive income and identify transactions that effect comprehensive income.

8 – Students will be able to discuss what is meant by the term earnings quality and identify how earnings quality is affected by accounting decisions.