Accounting and the Business Environment

Lecture 1, Introduction to Accounting and Business

1.1: Instructor & Course Description, Accounting & Business, The Accounting Profession, Video: Interview with Ron Penczek, Wellpoint 

1.2: Financial Statements, Elements, Stakeholders, The Accounting Equation 

1.3: Assets & Claims on Assets, Assets Transactions: Source, Use, Exchange; Video: The Role of the Accountant 

Lecture 2, The Accounting Cycle

2.1: Recognition vs Realization, Accrual & Deferral, Accrual Transactions, Vertical Statements 

2.2: Matching, Second Accounting Cycle, Adjusting Entries 

2.3: Classifying Accounting Events, Closing Entries, Video: Transaction Analysis 

Lecture 3, Merchandising Business

3.1: Product Costs vs Selling & Administrative Costs, Costs of Goods Available, Gross Margin, Perpetual Inventory System, Multi-Step Income Statement 

3.2: Cash Discounts, Transportation Costs, Lost, Damaged or Stolen Inventory 

3.3: Events Affecting Sales, Ratio Analysis, Video: Merchandising 

Lecture 4, Inventory Flow, Cash & Controls

4.1: Inventory Cost Flow Method: Specific Identification, FIFO, LIFO, Weighted Average 

4.2: Video: Inventory Costing Methods; Inventory Analysis, Accounting for Cash, Bank Reconciliation 

4.3: Internal Control Systems,Sarbanes-Oxley Act Video: Interview w/Ron Penczek, Wellpoint 

Lecture 5, Receivables

5.1: Accounts Receivable, Allowance for Doubtful Accounts, Estimating Uncollectable Accounts 

5.2: Notes Receivables, Interest Calculations, Credit Card Sales 

5.3: Accounts Receivable Analysis, Video: Receivables 

Lecture 6, Long-Term Operational Assets

6.1: Tangible vs Intangible Assets, Determining Cost of Long Term Assets, Depreciation Methods 

6.2: Estimate Revisions, Additional Expenditures for Plant Assets, Natural Resources, Intangible Assets 

6.3: Financial Analysis, Video: Long Term Assets 

Lecture 7, Liabilities

7.1: Types of Liabilities, Notes Payable, Contingent Liabilities, Video: Determinable, Estimated and Contingent Liabilities 

7.2: Warranty Obligations, Installment Notes Payable, Line of Credit 

7.3: Bonds Issued at Face Value, Current vs Noncurrent, Ratio Analysis 

Lecture 8, The Business Organization and Financing

8.1: Proprietorships, Partnerships & Corporations Characteristics of Capital Stock, Classes of Stock: Common & Preferred 

8.2: Par, Stated Value & No Par Stock, Treasury Stock, Video: Corporations 

8.3: Cash Dividends, Stock Dividends, Stock Splits, Video: Dividends 

Lecture 9, Financial Statement Analysis

9.1: Analysis Overview, Methods of Analysis: Horizontal & Vertical Video: Analyzing Financial Statements 

9.2: Ratio Analysis, Liquidity Ratios, Solvency Ratios, Profitability Ratios 

9.3: Stock Market Ratios, Limitations on Financial Analysis, Video: Interview w/Gordon Slack, Dow Agro 

Lecture 10, Managerial Accounting

10.1: Managerial vs Financial Accounting Information, Product Costing, Example: Product Costs on Financial Statements 

10.2: Indirect Cost Allocation, Upstream and Downstream Costs, Product Costs in Service Companies, Ethical Professional Practice for Management Accountants, Video: Interview with Tony Klemm, Dow Agro 

10.3: Managerial Accounting Trends: TQM, Activity-Based Management, JIT Inventory, Video: The Need for Managerial Accounting 

Lecture 11, Cost Behavior

11.1: Fixed Cost Behavior, Operating Leverage, Variable Cost Behavior, Contribution Margin Income Statement 

11.2: Operating Leverage Using Contribution Margin, Cost Behavior Summarized, Relevant Range 

11.3: Per Unit Contribution Margin, Break-even Analysis, Target Profit Level, Margin of Safety Video: Classifying Costs for Decision-Making 

Lecture 12, Cost Accumulation

12.1: Cost Drivers, Direct vs Indirect Costs, Allocating Indirect Costs 

12.2: Variable Overhead Cost Accumulation, Fixed Overhead Cost Allocation, Predetermined Overhead Rate, Cost Pools 

12.3: Relevant Information for Decision-Making, Qualitative Factors, Cost Avoidance & Cost Hierarchy, Special Decisions: Special Orders and Make or Buy, Video: Relevant Cost for Decision-Making 

Lecture 13, Budgeting Process

13.1: Strategic Planning, Capital, Budgeting and Master Budget, Sales Budget, Inventory Purchases Budget 

13.2: Selling & Administrative Expense Budget, Pro Forma Statements, Video: The Budget Process 

13.3: Responsibility Accounting, Static & Flexible Budgets, Sales Volume Variances, Video: Interview with Gordon Slack, DowAgro 

Lecture 14, Capital Investments and Course Summary

14.1: Capital Budgeting and Decision-Making, Time Value of Money, Net Present Value 

14.2: Measuring Investment Cash Flows, Comparing Alternative Capital Investment Opportunities, Relevance and Time Value of Money, Payback Method 

14.3: Annual Reports, Video: Interview with Ron Penczek, Wellpoint