Accounting

Upon completion of this course, the student will be able to:

• define the purpose and process of accounting and list the functions of accounting.
• define accounting elements and construct the accounting equation; analyze and record daily transactions in the general journal and post to general and subsidiary ledgers.
• complete the accounting cycle in a manual accounting system which includes journalizing, posting, trial balance, adjusting entries, adjusted trial balance, financial statements, closing entries and post-closing trial balance, and the preparation of a worksheet.
• prepare financial statements which include income statement, statement of owners' equity, and balance sheet for service and merchandising businesses.
• construct a bank reconciliation and record the entries necessary to update the accounts.
• prepare a payroll register and make appropriate journal entries to correctly record wage/salary expenses, and employer payroll tax expenses.
• record merchandise sales transactions by using merchandise sales accounts, record merchandise purchase transactions by using merchandise purchase accounts, and compute gross profit for a merchandise business.
• compute ending inventory and cost of goods sold under four different merchandise inventory valuation methods.
• prepare adjusting entries, closing entries, and multiple-step income statements for a merchandising business.
• assess financial statements by computing basic financial ratios and explaining the meanings of ratios.

Upon completion of this course, the student will be able to:

• examine the concepts, principles, and practices of financial accounting, including discussion of Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting. Standards (IFRS) on selected topics.
• prepare financial statements and related disclosures, including classified balance sheets, multiple step income statements with presentation of discontinued operations, extraordinary items, and accounting changes.
• identify accounting topics where the time value of money is relevant, including calculating and comparing future and present value of cash flows.
• apply the objectives and principles for managing and accounting for cash, cash equivalents, and accounts receivable.
• account for inventory using alternative techniques and procedures for valuation and reporting within the financial statements.
• account for acquisition, depreciation, depletion, impairment, and disposition of property, plant, and equipment.
• identify and account for costs to be included in the valuation of intangible assets, including amortization, issues of impairment and presentation within financial statements.
• analyze and account for complex business transactions.
• evaluate financial condition applying calculations and trend analysis using key financial ratios.

Upon completion of this course, the student will be able to:

• examine the concepts, principles, and practices of financial accounting, including discussion of Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) on selected topics.
• account for current liabilities, distinguish and present accounting treatments for contingencies.
• account for bonds and long-term notes, and describe disclosures for long-term debt in various forms.
• evaluate and account for transactions affecting the components of stockholders' equity.
• analyze and account for convertible securities, stock compensation plan and earnings per share.
• evaluate and account for equity and debt investments classified as trading, available for sale, and held to maturity.
• analyze and account for complex business transactions.
• distinguish between different types of pension plans, record pension expense, and balance sheet presentation of pension asset/liability.
• contrast capital leases with operating leases including the accounting procedures for both the lessee and lessor, and the financial statement presentation and disclosure requirements.
• compare and contrast accounting changes versus accounting estimates, and the accounting procedures for each, including the accounting for correction of errors and analyzing the effect of errors.
• contrast the direct and indirect methods of calculating cash flow from operating activities, and preparation of statement of cash flows under each method.
• analyze and account for income tax liabilities currently payable and deferred.

Upon completion of this course, the student will be able to:

• evaluate the roles of financial reporting and auditing in the modern business environment.
• compare and contrast the "Generally Accepted Auditing Standards" (GAAS) of the American Institute of Certified Public Accountants (AICPA) with "Auditing Standards" issued by the Public Company Accounting Oversight Board (PCAOB).
• analyze the six principles of the AICPA Code of Professional Conduct.
• assess the various components of audit risk.
• evaluate the structure of audit working papers documentation.
• compare and contrast the three methods of documenting and assessing internal controls.
• evaluate statistical and non-statistical sampling methodologies including how sample size is affected by audit risk and population size.
• ascertain appropriate audit tests for assets, liabilities, stockholders’ equity, revenues, and expenses.
• evaluate resulting audit evidence for assets, liabilities, stockholders’ equity, revenues, and expenses.
• distinguish the types of auditor's reports/opinions and when to apply each type of report/opinion.

Upon completion of this course, the student will be able to:

• examine the role of cost accounting in business planning and decision-making.
• differentiate among cost behaviors and use them to predict costs.
• differentiate between, account for, and report product and period costs.
• evaluate and plan profitability using cost behavior.
• use costs to make pricing and other types of business decisions.
• compare, contrast, and use process and job-order costs systems in accounting for product costs.
• prepare budgets and evaluate financial performance using variance analysis.
• evaluate organizational structure, use responsibility accounting, and allocate joint, by-product, and service department costs.
• use Excel software to account for and analyze costs and make business decisions.

Upon completion of this course, the student will be able to:

• identify and apply federal and state laws that affect employment practices and employee compensation.
• calculate gross payroll, withholding amounts, and net pay under a variety of labor standards.
• prepare payroll transactions and record payroll journal entries.
• create and maintain payroll records and reports required by federal and state taxing authorities.
• prepare quarterly and annual federal and state payroll tax returns and forms.
• analyze and interpret payroll data to determine the employer's total cost of labor.

Upon completion of this course, the student will be able to:

• describe the constitutional origins, statutory requirements, and other legislative and administrative underpinnings of the income tax systems of the United States and California.
• compute the federal and California state tax formula for individuals: gross income, adjusted gross income, taxable income, gross income tax liability and additional taxes, tax credits and prepayments, and tax due or refund.
• determine the filing status and filing requirements for individuals.
• identify where each item of income and deduction belongs on federal and state income tax returns for individuals.
• prepare basic and intermediate federal and California individual income tax returns.
• produce basic and intermediate federal individual income tax returns using income tax software.
• conduct basic tax research using publicly-available research tools.
• demonstrate the basics of income tax administration, including the audit process, reporting requirements, and taxpayer and preparer penalties.
• calculate California state and federal taxes using applicable laws and standard forms.
• identify and calculate tax credits taxpayers are entitled to claim on their tax return.
• apply professional ethical behavior in accounting, taxation, and business.

Upon completion of this course, the student will be able to:

• describe the constitutional origins, statutory requirements, and other legislative and administrative underpinnings of the income tax systems of the United States and California.
• compute the federal and California state tax formula for individuals: gross income, adjusted gross income, taxable income, gross income tax liability and additional taxes, tax credits and prepayments, and tax due or refund.
• determine the filing status and filing requirements for individuals.
• identify where each item of income and deduction belongs on federal and state income tax returns for individuals.
• prepare basic and intermediate federal and California individual income tax returns.
• conduct basic tax research using publicly-available research tools.
• demonstrate the basics of income tax administration, including the audit process, reporting requirements, and taxpayer and preparer penalties, particularly California tax practitioner requirements.
• calculate California state and federal taxes using applicable laws and standard forms.
• identify and calculate tax credits taxpayers are entitled to claim on their tax return.
• apply professional ethical behavior in accounting, taxation, and business.

Upon completion of this course, the student will be able to:

• describe the decisions about accounting periods and methods that the various business entities must make.
• identify the income tax issues in creating, operating, and liquidating a corporation.
• prepare a corporation's federal income tax return.
• identify the income tax issues in creating, operating, and liquidating a partnership and an S-corporation.
• prepare partnership and S-corporation income tax returns.
• describe the income tax issues in making taxable gifts.
• describe the estate and trust income tax issues.
• apply professional ethical behavior in accounting, taxation, and business.
• define the concept of basis as it applies to assets, entities, partners, and shareholders.

Upon completion of this course, the student will be able to:

• evaluate the environment of governmental budgeting, accounting, and financial reporting.
• evaluate the role of the budget and budgetary process in the management of governmental organizations.
• compare and contrast the objectives of financial reporting of governmental and corporate accounting.
• compare and contrast the modified accrual basis of accounting and the full accrual basis of accounting.
• evaluate the role of each fund in the fund financial statements.
• compare and contrast the fund financial statements and the government-wide financial statements.
• evaluate the content of a typical Comprehensive Annual Financial Report.

Upon completion of this course, the student will be able to:

• explain the nature and purpose of generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS).
• describe the components of the conceptual framework for financial accounting and reporting, including the qualitative characteristics of accounting information, the assumptions underlying accounting, the basic principles of financial accounting, and the constraints and limitations on accounting information.
• define and use accounting and business terminology.
• discuss how an accounting system is designed to satisfy the needs of specific businesses and users.
• summarize the purpose of journals and ledgers.
• apply transaction analysis, input transactions into the accounting system, process this input, and prepare and interpret the four basic financial statements.
• distinguish between cash basis and accrual basis accounting and explain their impact on the financial statements, including the revenue recognition and matching principles.
• identify and illustrate how the principles of internal control are used to manage and control a firm’s resources and minimize risk.
• explain the content, form, and purpose of basic financial statements (including footnotes) and annual reports, and how they satisfy the information needs of investors, creditors, and other users.
• describe the nature of current assets and related issues, including the measurement and reporting of cash and cash equivalents, receivables and bad debts, and inventory and cost of goods sold.
• define the valuation and reporting of current liabilities, estimated liabilities, and other contingencies.
• identify and illustrate issues relating to long-term asset acquisition, use, cost allocation, and disposal.
• distinguish between capital and revenue expenditures.
• identify and illustrate issues relating to long-term liabilities, including issuance, valuation, and retirement of debt.
• describe and illustrate issues relating to stockholders’ equity, including issuance, repurchase of capital stock, and dividends.
• demonstrate the importance of operating, investing, and financing activities reported in the Statement of Cash Flows.
• interpret company activity, profitability, liquidity and solvency through selection and application of appropriate financial analysis tools.
• summarize the ethical implications inherent in financial reporting and be able to apply strategies for addressing them.

Upon completion of this course, the student will be able to:

• identify and illustrate the primary activities and information needs of managers and explain the role of the managerial accountant as a member of the management team.
• compare and contrast financial and managerial accounting.
• define and illustrate various cost terms, concepts, and behaviors, and evaluate their relevance for different decision-making purposes.
• distinguish between product and period costs and prepare and evaluate a schedule of cost of goods manufactured, schedule of cost of goods sold, and income statement.
• prepare traditional and contribution-margin income statements and define related terms.
• explain cost-volume-profit analysis, contribution margin ratio, operating leverage, break-even, target profit, and margin of safety and employ each as an analytical tool.
• describe the traditional types of product costing systems (including job-order and process), illustrate the flow of costs in each, use these to value ending inventories and cost of goods sold, and prepare related accounting records and reports.
• discuss the impact of technology on the business environment, its implications for product and service costs, and the development of activity-based costing and management; use activity-based costing to apply overhead costs to products and services.
• explain the purposes of budgeting, prepare a master budget and its component schedules, and relate the budget to planning and control.
• explain the development and use of standard costs and flexible budgets, prepare and interpret variance analysis reports, and relate them to responsibility accounting and control.
• explain the nature of and need for segment reporting and its relationship to cost, revenue, profit, and investment centers; prepare and analyze related segment reports.
• compare and contrast absorption costing and variable costing, prepare income statements using both methods, and reconcile the resulting net incomes.
• define and identify relevant costs and benefits and prepare differential analyses related to special decisions.
• explain the nature of capital expenditure decisions and apply and evaluate various methods used in making these decisions, including the time value of money.
• identify the ethical implications inherent in managerial accounting and reporting and apply strategies for addressing them.

Upon completion of this course, the student will be able to:

• identify differences between manual and computerized accounting systems.
• set up a new company chart of accounts as well as customer, vendor, and employee master files.
• record transactions related to sales, purchases, and payroll for service and merchandising companies.
• complete the full accounting cycle for service and merchandise business in a computerized accounting system.
• perform bank reconciliation of checking, saving, and credit card accounts
• analyze end-of-period account balances and create appropriate adjusting and closing journal entries.
• generate and evaluate financial statements and other accounting reports.

Upon completion of this course, the student will be able to:

• create computerized spreadsheets from start to finish for accounting applications.
• construct complex spreadsheet formulas and functions to develop accounting spreadsheets.
• design spreadsheets that communicate accurate, succinct, and useful accounting information.
• combine accounting principles and Excel skills to present PivotTables and PivotCharts in professional reports, perform different analyses and make sound business decisions.

Upon completion of this course, the student will be able to:

• evaluate the ethical guidelines of the American Institute of Certified Public Accountants (AICPA) and other professional accounting organizations.
• evaluate the California Accountancy Act and the implementing rules and regulations of the California Board of Accountancy.
• evaluate the ethical standards of the International Ethics Standards Board for Accountants (IESBA).
• explore selected other professional accounting codes of conduct.
• assess potential legal liability for professional conduct.
• identify the common characteristics and causes of ethical lapses, fraud, and inadequate audits.
• evaluate and apply the Sarbanes-Oxley Act of 2002.

Upon completion of this course, the student will be able to:

• demonstrate application of industry knowledge and theoretical concepts in the field of accounting related to a transfer degree level career as written in the minimum three (3) learning objectives created by the student and their employer or work site supervisor at the start of the course.
• make effective decisions, use workforce information, and manage their personal career plans.
• behave professionally, ethically, and legally during work, consistent with applicable laws, regulations, and organizational norms.
• behave responsibly during work, exhibiting initiative and self-management in situations where it is needed.
• apply effective leadership styles during work, with consideration to group dynamics, team and individual decision making, and workforce diversity.
• communicate in oral, written, and other formats, as needed, in a variety of contexts during work.
• locate, organize, evaluate, and reference information during work.
• demonstrate originality and inventiveness during work by combining ideas or information in new ways, making connections between seemingly unrelated ideas, and reshaping goals in ways that reveal new possibilities using critical and creative thinking skills such as logical reasoning, analytical thinking, and problem-solving.

Upon completion of this course, the student will be able to:

• apply property tax laws as they pertain to the appraisal of property for tax purposes.
• analyze the appraisal process in preparation to value property for tax purposes.
• analyze data to determine land value and land allocation for tax purposes.
• analyze comparable sales information in order to value property by the sales comparable approach.
• determine appropriate costs to include in the preparation of the cost approach to value.
• evaluate income information to determine appropriate process to value property by the income approach.
• apply appraisal principles and valuation methodology to value real and personal property for property tax purposes.

Upon completion of this course, the student will be able to:

• appraise personal property and fixtures for property tax purposes.
• classify property as real property, personal property, or improvements, including determining whether an improvement is a structure or fixture improvement.
• determine the taxability of personal property and fixture items in compliance with the California Constitution, Revenue & Taxation Code provisions, property tax rules, and case law.
• evaluate the factors determining value.
• evaluate the concept of Trade Level.
• apply the cost approach to determine value.
• apply equipment index factors and percent good factors in the valuation of personal property and fixtures.