Financial Accounting I

Unit 1 – Role of Accounting in Society

Unit 2 – Financial Statements: An Introduction

Unit 3 – Recording and Analyzing Transactions

Unit 4 – The Adjustment Process

Unit 5 – Completing the Accounting Cycle

Unit 6 – Merchandising Transactions

Unit 7 – Accounting Information Systems

Unit 8 – Fraud, Internal Controls, and Cash

Unit 9 – Accounting for Receivables

Unit 10 – Inventory

Unit 11 – Long–Term Assets

Unit 12 – Current Liabilities

Unit 13 – Long–Term Liabilities

Unit 14 – Corporation Accounting

Unit 15 – Partnership Accounting

Unit 16 – Statement of Cash Flows

## What do you learn in Financial Accounting I

Financial Accounting I covers the basics of recording and reporting financial transactions. You'll learn about the accounting cycle, financial statements, and how to analyze business events. The course dives into assets, liabilities, and equity, teaching you how to prepare balance sheets, income statements, and cash flow statements. It's all about understanding the language of business and making sense of financial data.

## Is Financial Accounting I hard?

Financial Accounting I can be challenging, especially if you're not a numbers person. The concepts aren't rocket science, but there's a lot to memorize and apply. The trickiest part is usually wrapping your head around debits and credits - they work differently than you might expect. But once things click, it gets easier. Most students find it manageable with consistent effort and practice.

## Tips for taking Financial Accounting I in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram 🌶️
2. Practice, practice, practice - do as many problem sets as you can
3. Create flashcards for key terms and concepts (e.g., FIFO, LIFO, depreciation methods)
4. Form a study group to discuss complex topics like adjusting entries
5. Use T-accounts to visualize debits and credits
6. Watch YouTube videos for visual explanations of tricky concepts
7. Read "The Accounting Game" by Darrell Mullis for a fun intro to accounting basics
8. Keep up with assignments - falling behind is a recipe for disaster

## Common pre-requisites for Financial Accounting I

1. Introduction to Business: This course provides an overview of business operations and management principles. It's a great foundation for understanding the context of financial accounting.

2. College Algebra: A basic math course that helps develop the quantitative skills needed for accounting. It covers equations, functions, and problem-solving techniques essential for financial calculations.

## Classes similar to Financial Accounting I

1. Managerial Accounting: Focuses on using accounting information for internal decision-making. You'll learn about cost behavior, budgeting, and performance evaluation.

2. Financial Statement Analysis: Dives deeper into interpreting financial statements. You'll learn how to assess a company's financial health and make investment decisions.

3. Intermediate Accounting: Builds on Financial Accounting I with more complex topics. It covers advanced issues in financial reporting and accounting standards.

4. Accounting Information Systems: Explores the technology used in accounting. You'll learn about database management, internal controls, and accounting software.

## Majors related to Financial Accounting I

1. Accounting: Focuses on preparing and analyzing financial information for businesses and individuals. Students learn auditing, taxation, and financial reporting.

2. Finance: Deals with managing money and investments. Students study financial markets, corporate finance, and investment strategies.

3. Business Administration: Provides a broad overview of business operations. Students learn management, marketing, finance, and entrepreneurship skills.

4. Economics: Examines how societies allocate resources. Students study market behavior, economic policies, and financial systems.

## What can you do with a degree in Financial Accounting I?

1. Accountant: Prepares and examines financial records for organizations. They ensure accuracy of financial documents and compliance with laws and regulations.

2. Financial Analyst: Assesses the performance of stocks, bonds, and other investments. They guide businesses and individuals in making investment decisions.

3. Auditor: Reviews financial records to ensure accuracy and compliance. They may work internally for a company or externally for an auditing firm.

4. Budget Analyst: Helps organizations plan their finances. They prepare budget reports and monitor spending to improve efficiency.

## Financial Accounting I FAQs

1. Do I need to be good at math for this course? Basic math skills are helpful, but it's more about understanding concepts and applying them. You won't need calculus or advanced math.

2. Can I use a calculator during exams? Most professors allow basic calculators, but check your syllabus. Graphing calculators are usually not permitted.

3. How much time should I spend studying for this course? Plan for at least 2-3 hours of study time for every hour of class time. Consistent practice is key to mastering the material.

Accounting

1.1 Explain the Importance of Accounting and Distinguish between Financial and Managerial Accounting

1.2 Identify Users of Accounting Information and How They Apply Information

1.3 Describe Typical Accounting Activities and the Role Accountants Play in Identifying, Recording, and Reporting Financial Activities

1.5 Describe the Varied Career Paths Open to Individuals with an Accounting Education

1.4 Explain Why Accounting Is Important to Business Stakeholders

2.1 Describe the Income Statement, Statement of Owner’s Equity, Balance Sheet, and Statement of Cash Flows, and How They Interrelate

2.2 Define, Explain, and Provide Examples of Current and Noncurrent Assets, Current and Noncurrent Liabilities, Equity, Revenues, and Expenses

2.3 Prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet

3.1 Describe Principles, Assumptions, and Concepts of Accounting and Their Relationship to Financial Statements

3.2 Define and Describe the Expanded Accounting Equation and Its Relationship to Analyzing Transactions

3.3 Define and Describe the Initial Steps in the Accounting Cycle

3.4 Analyze Business Transactions Using the Accounting Equation and Show the Impact of Business Transactions on Financial Statements

3.5 Use Journal Entries to Record Transactions and Post to T-Accounts

3.6 Prepare a Trial Balance

4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries

4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries

4.3 Record and Post the Common Types of Adjusting Entries

4.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance

4.5 Prepare Financial Statements Using the Adjusted Trial Balance

5.1 Describe and Prepare Closing Entries for a Business

5.2 Prepare a Post-Closing Trial Balance

5.3 Apply the Results from the Adjusted Trial Balance to Compute Current Ratio and Working Capital Balance, and Explain How These Measures Represent Liquidity

5.4 Appendix: Complete a Comprehensive Accounting Cycle for a Business

6.1 Compare and Contrast Merchandising versus Service Activities and Transactions

6.2 Compare and Contrast Perpetual versus Periodic Inventory Systems

6.3 Analyze and Record Transactions for Merchandise Purchases Using the Perpetual Inventory System

6.4 Analyze and Record Transactions for the Sale of Merchandise Using the Perpetual Inventory System

6.5 Discuss and Record Transactions Applying the Two Commonly Used Freight-In Methods

6.6 Describe and Prepare Multi-Step and Simple Income Statements for Merchandising Companies

6.7 Appendix: Analyze and Record Transactions for Merchandise Purchases and Sales Using the Periodic Inventory System

7.1 Define and Describe the Components of an Accounting Information System

7.2 Describe and Explain the Purpose of Special Journals and Their Importance to Stakeholders

7.3 Analyze and Journalize Transactions Using Special Journals

7.4 Prepare a Subsidiary Ledger

7.5 Describe Career Paths Open to Individuals with a Joint Education in Accounting and Information Systems

8.1 Analyze Fraud in the Accounting Workplace

8.2 Define and Explain Internal Controls and Their Purpose within an Organization

8.3 Describe Internal Controls within an Organization

8.4 Define the Purpose and Use of a Petty Cash Fund, and Prepare Petty Cash Journal Entries

8.5 Discuss Management Responsibilities for Maintaining Internal Controls within an Organization

8.6 Define the Purpose of a Bank Reconciliation, and Prepare a Bank Reconciliation and Its Associated Journal Entries

8.7 Describe Fraud in Financial Statements and Sarbanes-Oxley Act Requirements

9.1 Explain the Revenue Recognition Principle and How It Relates to Current and Future Sales and Purchase Transactions

9.2 Account for Uncollectible Accounts Using the Balance Sheet and Income Statement Approaches

9.3 Determine the Efficiency of Receivables Management Using Financial Ratios

9.4 Discuss the Role of Accounting for Receivables in Earnings Management

9.5 Apply Revenue Recognition Principles to Long-Term Projects

9.6 Explain How Notes Receivable and Accounts Receivable Differ

9.7 Appendix: Comprehensive Example of Bad Debt Estimation

10.1 Describe and Demonstrate the Basic Inventory Valuation Methods and Their Cost Flow Assumptions

10.2 Calculate the Cost of Goods Sold and Ending Inventory Using the Periodic Method

10.3 Calculate the Cost of Goods Sold and Ending Inventory Using the Perpetual Method

10.4 Explain and Demonstrate the Impact of Inventory Valuation Errors on the Income Statement and Balance Sheet

10.5 Examine the Efficiency of Inventory Management Using Financial Ratios

11.1 Distinguish between Tangible and Intangible Assets

11.2 Analyze and Classify Capitalized Costs versus Expenses

11.3 Explain and Apply Depreciation Methods to Allocate Capitalized Costs

11.4 Describe Accounting for Intangible Assets and Record Related Transactions

11.5 Describe Some Special Issues in Accounting for Long-Term Assets

12.1 Identify and Describe Current Liabilities

12.2 Analyze, Journalize, and Report Current Liabilities

12.3 Define and Apply Accounting Treatment for Contingent Liabilities

12.4 Prepare Journal Entries to Record Short-Term Notes Payable

12.5 Record Transactions Incurred in Preparing Payroll

13.1 Explain the Pricing of Long-Term Liabilities

13.2 Compute Amortization of Long-Term Liabilities Using the Effective-Interest Method

13.3 Prepare Journal Entries to Reflect the Life Cycle of Bonds

13.4 Appendix: Special Topics Related to Long-Term Liabilities

14.1 Explain the Process of Securing Equity Financing through the Issuance of Stock

14.2 Analyze and Record Transactions for the Issuance and Repurchase of Stock

14.3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits

14.4 Compare and Contrast Owners’ Equity versus Retained Earnings

14.5 Discuss the Applicability of Earnings per Share as a Method to Measure Performance

15.1 Describe the Advantages and Disadvantages of Organizing as a Partnership

15.2 Describe How a Partnership Is Created, Including the Associated Journal Entries

15.3 Compute and Allocate Partners’ Share of Income and Loss

15.4 Prepare Journal Entries to Record the Admission and Withdrawal of a Partner

15.5 Discuss and Record Entries for the Dissolution of a Partnership

16.1 Explain the Purpose of the Statement of Cash Flows

16.2 Differentiate between Operating, Investing, and Financing Activities

16.3 Prepare the Statement of Cash Flows Using the Indirect Method

16.4 Prepare the Completed Statement of Cash Flows Using the Indirect Method

16.5 Use Information from the Statement of Cash Flows to Prepare Ratios to Assess Liquidity and Solvency

16.6 Appendix: Prepare a Completed Statement of Cash Flows Using the Direct Method

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