Course Contents

1. Forms of Business Organization: sole proprietorship, partnerships, corporations: accounting practices of sole proprietorship, partnerships and corporations, accounting for corporate income taxes, salaries paid to owners, owner’s equity in corporate balance sheet, the issuance of capital stock, retained earnings, accounting for dividends. 2. Financial Assets: Cash, reporting cash in the balance sheet, the statement of cash flows, cash management, internal control over cash, cash disbursements, bank statements, reconciling the bank statement, petty cash funds, Account for uncollectible receivables using the allowance and direct write-off methods, Account for notes receivable and interest revenue. 3. Plant Asset and Depreciation, Intangible Assets: Major categories of plant assets, accountable events in the lives of plant assets: acquisition of plant assets, Depreciation: Straight line method, The declining balance method, MACRS, the tax method, disposal of plant and equipment, intangible assets: amortization, goodwill, patents, trademarks, franchises, copyrights, natural resources 4. Liabilities Common to Most Business Organizations: Current Liabilities, Long-Term Liabilities, special types of liabilities, evaluating the safety of creditor’s claims, estimated liabilities, loss contingencies, and commitments 5. Stockholder’s Equity statement: Measuring Corporation Income, Reporting unusual Items, Earnings Per Share, Cash Dividend, Treasury Stock, Stock Split; 6. Measuring Cash Flows: Statement of Cash Flows and Classification of cash flows, preparation of Cash Flows.

Course Synopsis

The objective of this course is to discuss advance topics after completion of course I of financial accounting. Topics include accounting of assets, accounts receivables, plant and equipment and liabilities of most business sectors.

Course Learning Outcomes

This course will enable students to: • Understand and describe the appropriate books of account/Control accounts for different types of accounting transactions. • Prepare journal entries and deal with the treatment of suspense account items. • Understand, calculate and interpret a range of basic financial ratios appropriate to a set of financial statements, particularly in the key areas of profitability, solvency/liquidity, asset utilization and investment ratios.