Accounting Systems and Financial Statements - by Andrew Clark (Course Id 2335)

All business entities require information to operate efficiently and effectively. The accounting system is one of the most important systems for the organization’s decision makers. Accounting information systems collect and process data from transactions and events, organize them in useful reports, and communicate results to decision makers. Accounting Systems and Financial Statements is a course that will describe what information must be collected to properly report on a business. This course will describe the four major types of financial statements and define the standards that are used to create financial reports. This course will define the various elements for the four major financial statements. This course will review the framework for adjustments and describe the common adjustments that must be made at the end of each accounting period, so they are accurate.

NASBA QAS - Text - NASBA Registry - 2335

Course Learning Objectives

• Identify the organization that are responsible for creating financial statements.
• Recognize the underlying foundations for U.S. accounting standards.
• Identify the SFACs that define the important characteristics of financial statements.
• Identify the four basic assumptions underlie GAAP.
• Recognize the five measurement attributes employed in GAAP.
• Recognize the adjustments that must be made at the end of each accounting period so financial statements are accurate.

Chapter 1 - Accounting Systems and Financial Statements

Course Learning Objectives

Accounting Systems

Accounting System Principles

Control Principle

Relevance Principle

Compatibility Principle

Flexibility Principle

Cost-Benefit Principle

Accounting System Components

Input Devices

Information Processors

Information Storage

Output Devices

Technology-Based Accounting Systems

Computer Technology in Accounting

Data Processing in Accounting

Computer Networks in Accounting

Enterprise Resource Planning Software

Financial Reporting

Accounting Standards

The International Accounting Standards Board (IASB)

The Financial Accounting Standards Board (FASB)

The Canadian Accounting Standards Board (AcSB)

Securities Commissions

Implementing Standards

Ethical Behavior

Conceptual Framework

Qualitative Financial Reporting Information

Faithful Representation

Review Questions

Part 2 - Financial statements

Elements of Financial Statements

Underlying Assumptions

Economic Entity Assumption

Going Concern Assumption

Periodicity Assumption

Monetary Unit Assumption

Recognition, Measurement, and Disclosure

Recognition Criteria

Revenue Recognition

Expense Recognition

Measurement

Historical Cost

Net Realizable Value

Current Cost

Present Value

Fair Value

Primary Financial Statements

The Income Statement

The Statement of Stockholders’ Equity

The Balance Sheet

The Statement of Cash Flows

Financial Statement Links

Review Questions

Part 3 - The Accounting Period

Recognizing Revenues and Expenses

Framework for Adjustments

Prepaid Expenses

Depreciation

Unearned Revenues

Accrued Expenses

Accrued Revenues

Adjusted Trial Balance

Preparing Financial Statements

Work Sheets

Work Sheet Entries and Analysis

The Closing Process

Temporary and Permanent Accounts

Post-Closing Trial Balance

Special Journals

Subsidiary Ledgers

Sales Journal

Cash Receipts Journal

Review Questions

Glossary