This collection contains the California Open Educational Resources Council (CA OER) list of peer-reviewed textbooks for Financial Accounting (common course-id ACCT 110), a top 50 college course identified for inclusion in the California Open Online Library for Education (COOLforEd).
Financial Accounting: ACCT 110
General Course Description:
This is the study of accounting as an information system, examining why it is important and how it is used by investors, creditors, and others to make decisions. The course covers the accounting information system, including recording and reporting of business transactions with a focus on the accounting cycle, the application of generally accepted accounting principles, the financial statements, and statement analysis. Includes issues relating to asset, liability, and equity valuation, revenue and expense recognition, cash flow, internal controls, and ethics.
Minimum Units: 3.0
Advisories/Recommendations: Eligibility for College Composition (C-ID ENGL 100) and Elementary Algebra
Pedagogical Approach & Learning Outcomes
At the conclusion of this course, the student should be able to:
- Explain the nature and purpose of generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS).
- Explain and apply the components of the conceptual framework for financial accounting and reporting, including the qualitative characteristics of accounting information, the assumptions underlying accounting, the basic principles of financial accounting, and the constraints and limitations on accounting information;
- Define and use accounting and business terminology;
- Explain what a system is and how an accounting system is designed to satisfy the needs of specific businesses and users; summarize the purpose of journals and ledgers;
- Apply transaction analysis, input transactions into the accounting system, process this input, and prepare and interpret the four basic financial statements;
- Distinguish between cash basis and accrual basis accounting and their impact on the financial statements, including the revenue recognition and matching principles;
- Identify and illustrate how the principles of internal control are used to manage and control the firm’s resources and minimize risk;
- Explain the content, form, and purpose of the basic financial statements (including footnotes) and the annual report, and how they satisfy the information needs of investors, creditors, and other users;
- Explain the nature of current assets and related issues, including the measurement and reporting of cash and cash equivalents, receivables and bad debts, and inventory and cost of goods sold;
- Explain the valuation and reporting of current liabilities, estimated liabilities, and other contingencies;
- Identify and illustrate issues relating to long-term asset acquisition, use, cost allocation, and disposal;
- Distinguish between capital and revenue expenditures;
- Identify and illustrate issues relating to long-term liabilities, including issuance, valuation, and retirement of debt;(including the time value of money)
- Identify and illustrate issues relating to stockholders’ equity, including issuance, repurchase of capital stock, and dividends;
- Explain the importance of operating, investing and financing activities reported in the Statement of Cash Flows;
- Interpret company activity, profitability, liquidity and solvency through selection and application of appropriate financial analysis tools; and
- Identify the ethical implications inherent in financial reporting and be able to apply strategies for addressing them.
Assessment & Other Information
- Problem-solving exercises
- oral and written assignments
- quizzes and examinations, which include problem solving, essay and/or analysis interpretation and presentation.
Topics included in the course, such as inventory valuation, receivables, fixed and intangible assets, current and long-term liabilities, will be assessed using multiple methods, as described.
Introduction to Financial Accounting - Second Edition (Open (Access) Textbook)Based on International Financial Reporting Standards, this textbook was written by Henry Dauderis and published by... More
Principles of Accounting (Open (Access) Textbook)Walther's textbook covers a range of financial accounting topics related to the accounting and reporting cycle, current... More
Accounting Principles: A Business Perspective (Financial) Chapters 1-8 (Open (Access) Textbook)The Hermanson, Edwards, and Ivancevich text Accounting Principles: A Business Perspective uses annual reports of real... More
Boundless Accounting (Open (Access) Textbook)The Boundless Accounting textbook is a college-level, introductory textbook that covers the subject of Accounting, core... More
Financial Accounting (Open (Access) Textbook)Historically, textbooks have been presented as dry monologues, a one-way conversation that often seems to talk to the... More