New Course OR Existing Course Instructor(s)/Author(s): Penny Wilkins Subject Area/Course No.: BUS-186 Units: 4 Course Name/Title: Financial Accounting Discipline(s): Business, Accounting Pre-Requisite(s): None Co-Requisite(s): None Advisories: BUS-181 and/or BUS-185, Prealgebra, and eligibility for ENGL-100 Catalog Description: This course explores what financial accounting is, why it is important, and how it is used by investors and creditors to make decisions. It covers the accounting information system and the recording and reporting of business transactions with a focus on the accounting cycle, the application of generally accepted accounting principles, classified financial statements, and statement analysis. Issues related to asset, liability, and equity valuation, revenue and expense recognition, cash flow, internal control and ethics are included. Schedule Description: Business is the most popular major at U.S. four-year colleges and universities. If you are planning to transfer and major in business or accounting, you need this course. The course explores what financial accounting is, why it is important, and how it is used by investors and creditors to make decisions. Hours/Mode of Instruction: Lecture 72 Lab Composition Activity Total Hours 72 (Total for course) Credit Credit Degree Applicable (DA) Grading Pass/No Pass (P/NP) Repeatability 0 Credit Non-Degree (NDA) Letter (LR) 1 (If Non-Credit desired, contact Dean.) Student Choice (SC) 2 3 Last date of Assessment: Spring 2016 Cohort #: 3 Please apply for: LMC General Education Requirement (s): None Transfer to: CSU UC IGETC Area CSU GE Area C-ID Number _110 Course is Baccalaureate Level: Yes No Form Revised 082013 Page 1 of 8
Signatures: Department Chair Librarian Dean Curriculum Committee Chair President/Designee CCCCD Approval (Board or Chancellor's Office) For Curriculum Committee Use only: STAND ALONE COURSE: YES X NO FOR OFFICE OF INSTRUCTION ONLY. DO NOT WRITE IN THE SECTION BELOW. Begin in Semester Catalog year 20 /20 Class Max: 40 Dept. Code/Name: T.O.P.s Code: Crossover course 1/ 2: ESL Class: Yes / No DSPS Class: Yes / No Coop Work Exp: Yes / No Class Code A Liberal Arts & Sciences SAM Code A Apprenticeship Remediation Level B Basic Skills B Developmental Preparatory B Advanced Occupational NBS Not Basic Skills C Adult/Secondary Basic Education C Clearly Occupational D Personal Development/Survival D Possibly Occupational E For Substantially Handicapped E* Non-Occupational F Parenting/Family Support F Transfer, Non-Occupational G Community/Civic Development *Additional criteria needed H General and Cultural 1 One level below transfer I Career/Technical Education 2 Two levels below transfer J Workforce Preparation Enhanced 3 Three levels below transfer K Other non-credit enhanced Not eligible for enhanced Course approved by Curriculum Committee as Baccalaureate Level: _Yes / No_ LMC GE or Competency Requirement Approved by the Curriculum Committee: Distribution: Original: Office of Instruction Copies: Admissions Office, Department Chairperson Form Revised 082013 Page 2 of 8
Institutional Student Learning Outcomes Check the institutional student learning outcomes (or category of outcomes) below that are reflected in your course: General Education SLOs (Recommended by GE Committee) At the completion of the LMC general education program, a student will: 1. read critically and communicate effectively as a writer and speaker. 2. understand connections among disciplines and apply interdisciplinary approaches to problem solving. 3. think critically and creatively 4. consider the ethical implications inherent in knowledge, decision-making and action. 5. possess a worldview informed by diverse social, multicultural and global perspectives. (Each of the above student learning outcomes for the general education program has a written explanation with illustrations and examples of its application within courses, as well as specific assessment criteria. Consult the GE program information pages.) None Program-Level Student Learning Outcomes (PSLOs) AS-T in Business Administration Student Learning Outcomes at completion of the program are: 1. Analyze practical business problems and utilize research and critical thinking to evaluate and recommend alternative solutions. 2. Demonstrate strong oral and written skills necessary to effectively collaborate and communicate from a global perspective with diverse groups of people. 3. Apply accounting concepts and principles in making decisions about business operations. 4. Identify and explain the major functional areas of the business organizations including management, marketing, finance, and accounting. 5. Apply commonly used computer application programs to create relevant business documents. Course-Level Student Learning Outcomes (CSLOs): After completion of this course, the student will be able to: 1. Define and use financial accounting and business terminology. PSLO 3, PSLO4 2. Demonstrate accounting procedures by appropriately processing transitions in an accounting system. PSLO 1, PSLO 3, PSLO 4 3. Use accounting records to construct and analyze financial reports for internal and external users. PSLO 1, PSLO 2, PSLO3, PSLO4 4. Apply the basic assumptions, principles, constraints, and ethical practices of financial accounting. PSLO 1, PSLO 3, PSLO 4 Assessments Instruments: Exams: All homework assignments are completed at the publisher s website. Textbooks and other materials are available to students when completing the homework assignments. Additionally, they are given multiple attempts at each homework problem. The homework assignments are designed to give the student an opportunity to apply the concepts learned in class and to help them master the material for the exams. Therefore, the exams are the only true measures of what the students have learned. All the CSLOs are assessed with questions from the four exams. Exam 1 Exam 2 Exam 3 Final Exam Form Revised 082013 Page 3 of 8
CSLO 1 X X X X CSLO 2 X X X X CSLO 3 X X X X CSLO 4 X X X X CSLO 1 Define and use financial accounting and business terminology. PSLO 3, PSLO4 CSLO 1 is assessed through the three unit exams and the final exam. Students may be asked to either provide definitions of the terms or match the terms with their definitions. Use of the terms are also assessed indirectly through exam questions which directly assess CSLO 2, CSLO 3, and CSLO 4. Students cannot record financial transactions or construct financial statements and/or reports without using financial accounting and business terms. Example exam Question for CSLO 1: Define the following financial accounting terms using a written short answer: a. Consistency b. Materiality c. Full disclosure d. Periodicity CSLO 2 - Demonstrate accounting procedures by appropriately processing transitions in an accounting system. PSLO 1, PSLO 3, PSLO 4 CSLO 2 is assessed through the three unit exams and the final exam. Each exam includes questions, exercise, and analysis problems where the student must analyze and then properly record regular and periodic financial accounting transactions, as well as adjustments. Example exam Question for CSLO 2: The information below relates to Hanshew Real Estate Agency: Oct. 1 Stockholders invested $25,000 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $36,000. 3 Buys equipment for $3,500 on account. 6 Sells a house and lot for M Springer; commissions due from Springer, $10,000 (not paid by Springer at this time). 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. 27 Pays $700 on account for the equipment purchased on October 3. 30 Pays the administrative assistant $3,000 in salary for October. Instructions: Journalize the above transitions, post the transactions to the T-accounts, and balance the T-accounts. CSLO 3 - Use accounting records to construct and analyze financial reports for internal and external users. PSLO 1, PSLO 2, PSLO3, PSLO4 CSLO 3 is assessed through the three unit exams and the final exam. Each exam and most of the homework assignments require students to construct a variety of financial statements and/or accounting reports. Form Revised 082013 Page 4 of 8
Example exam question for CSLO 3: Use the following accounts and information to prepare, in good form, an income statement, a retained earnings statement, and a balance sheet for Pierce Industries for the month ended August 31, 2016. Describe the organization s financial position including net income or net loss. Accounts payable $ 1,100 Dividends $ 3,000 Accounts receivable 5,400 Insurance expense 1,200 Buildings 63,000 Supplies 1,400 Cash 20,600 Notes payable 3,300 Service revenue 25,700 Rent expense 3,400 Common stock 52,000 Salaries expense 10,000 Retained earnings (beginning) 25,900 CSLO 4 - Apply the basic assumptions, principles, constraints, and ethical practices of financial accounting. PSLO 1, PSLO 3, PSLO 4 CSLO 4 is assessed through the three unit exams and the final exam. Additionally, the assumptions, principles, constraints, and ethical accounting practices are also assessed indirectly through exam questions which directly assess CSLO 2, CSLO 3, and CSLO 4. Students cannot record financial transactions or construct financial statements and/or reports without properly applying the concepts. Example exam question for CSLO 4: Presented below are selected transactions for the Tinker Company for 2014. Jan. 1 Retired a piece of equipment that was purchased on January 1, 2004. The equipment cost $75,000 on that date, and had a useful life of 10 years with no salvage value. April 30 Dec. 31 Sold equipment for $35,000 that was purchased on January 1, 2011. The equipment cost $90,000, and had a useful life of 5 years with no salvage value. Discarded equipment that was purchased on June 30, 2010. The equipment cost $37,000 and was depreciated on a 5-year useful life with a salvage value of $2,000. Instructions Journalize all entries required of the above transactions. Tinker Company uses the straight-line method of depreciation and has recorded depreciation through December 31, 2013. Method of Evaluation/Grading: Homework assignments 25% Exams (including final) 75% CSLO 1 - Define and use financial accounting and business terminology. PSLO 3, PSLO4 A-level student work: Definitions are coherent and consistent with generally accepted accounting principles and/or the textbook glossary for at least 90% of the terms. If terms are assessed using matching questions, at least 90% of terms are matched with the proper definition. Financial accounting transactions are recorded and financial statements/reports are constructed using the proper terms at least 90% of the time. Minor errors in the use of terms could be present. Form Revised 082013 Page 5 of 8
C-level student work: Definitions are coherent and consistent with generally accepted accounting principles and/or the textbook glossary at a 70% accuracy rate. If terms are assessed using matching questions, between 70% of the terms are matched with the proper definition. Financial accounting transactions are recorded and financial statements/reports are constructed with proper terms with 70% accuracy. Significant errors in the use of financial accounting and business terms are often present. CSLO 2- Demonstrate accounting procedures by appropriately processing transitions in an accounting system. PSLO 1, PSLO 3, PSLO 4 A-level student work: Financial transactions are analyzed in accordance with generally accepted accounting principles (GAAP) and are recorded in proper form in the appropriate accounting record 90%. Correct account titles and amounts are used and journal entries and or adjusting entries are recorded in proper form with appropriate explanations. (The basic assumptions, principles and constraints of financial accounting are included in GAAP) C-level student work: Most of the financial transactions (70%) are analyzed and recorded in accordance with GAAP. Correct account titles and amounts are used and journal entries and or adjusting entries are recorded in proper form with appropriate explanations for 70% of the transactions. Minor errors in account titles and amounts and the occasional misuse of debit and credit characterize C-level work. CSLO 3- Use accounting records to construct and analyze financial reports for internal and external users. PSLO 1, PSLO 2, PSLO3, PSLO4 A-level student work: Financial statements and reports are prepared in accordance with GAAP. The appropriate account titles and amounts, subtotals, dates, and formats are used in each financial statement or report. Net income, stockholder s equity, current assets, plant assets, total assets, current liabilities, total liabilities, cash flows, etc. are correctly computed and properly presented. C-level student work: Financial statements and reports are prepared with minor deviations from GAAP. Minor errors in amounts titles and amounts, subtotals, dates and formats are present. One or two significant errors in the determination and presentation of net income, stockholder s equity, current assets, plant assets, total assets, current liabilities, total liabilities, or cash flows are present. CSLO 4- Apply the basic assumptions, principles, constraints, and ethical practices of financial accounting. PSLO 1, PSLO 3, PSLO 4 A-level student work: At least 90% of assumptions, principles and constraints are properly matched with their descriptions/applications. The analysis and recording of at least 90% of the financial transactions display the correct applications of the basic assumptions, principles and constraints of financial accounting. Financial statements and reports reflect the correct application of the basic assumptions, principles and constraints of financial accounting. Minor errors in the format of financial statements and reports could be present. C-level student work: Most of the assumptions, principles and constraints (70%) are properly matched with their descriptions/applications. The analysis and recording of 70% of the financial transactions display the correct applications of the basic assumptions, principles and constraints of financial accounting. Financial statements and reports reflect the correct application of the basic assumptions, Form Revised 082013 Page 6 of 8
principles and constraints most of the time (70%). Significant errors in format of financial statements and reports are often present. Course Content: Financial Statements format and purpose of each financial statement; financial statements of a hypothetical company; financial statements for a real company; revenues, expenses, assets, and liabilities; classified balance sheet; current ratio, debt to total assets ratio, earnings per share, current cash coverage; accounting assumptions, principles, and constraints. Accounting Information System transaction analysis; steps in the recording process; journalizing and posting transactions; the trial balance; chart of accounts; expanded accounting equation; stockholders equity relationships. Accrual Accounting Concepts comparison of accrual and cash accounting; revenue recognition principle; matching principle; adjusting entries; adjusted trial balance; closing the books; post-closing trial balance; quality of earnings. Merchandising Operations perpetual inventory; periodic inventory system; multi-step income statement; gross profit rate; profit margin ratio. Reporting and Analyzing Inventory inventory cost flow assumptions (FIFO, LIFO, Weighted average); specific identification; lower of cost or market; inventory turnover ratio; LIFO reserve. Internal Control and Cash principles of internal control; Sarbanes-Oxley Act; limitations of internal control; internal control over cash disbursements and cash receipts; petty cash fund; use of a bank; ban reconciliation; principles of cash management; cash equivalents; restricted cash. Reporting and Analyzing Receivables accounts and notes receivable; interest calculations; bad debt estimation; allowance method for uncollectible accounts; managing receivables; receivables turnover ratio; financial statement presentation of receivables. Reporting and Analyzing Long-lived Assets plant assets; intangible assets; buy or lease; depreciation methods; expenditures during useful life; plant asset disposals; return on assets ratio; asset turnover ratio; financial statement presentation of long-lived assets. Reporting and Analyzing Liabilities current liabilities; notes payable; sales taxes; payroll taxes; unearned revenues; long-term liabilities; corporate bonds; straight-line and effective-interest amortization; contingent liabilities; off-balance sheet financing; times interest earned ratio. Reporting and Analyzing Stockholders Equity characteristics of the corporate form of organization; common stock; preferred stock; treasury stock; cash dividends; stock dividends; stock splits; debt versus equity; return on common stockholders equity; payout ratio. Statement of Cash Flows purpose and usefulness of statement; indirect method; direct method; free cash flow; current cash debt coverage ratio; cash debt coverage ratio. Financial Statement Analysis comparative analysis; horizontal analysis; vertical analysis; ratio analysis; quality of earnings; comprehensive income; sustainable income. International Accounting International Financial Reporting Standards; IFRS. Form Revised 082013 Page 7 of 8
Ethical Issues. GAAP, and IFRS interspersed in the above listed topics. Instructional Methods: Lecture Lab Activity Problem-based Learning/Case Studies Collaborative Learning/Peer Review Demonstration/Modeling Role-Playing Discussion Computer Assisted Instruction Other (explain) Textbooks: Kimmel, Weygandt, & Kieso. (2016). Accounting: Tools for business decision making. 6 th Ed. New York: Wiley & Sons Publishing. Form Revised 082013 Page 8 of 8