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DESCRIPTION

This course covers an introduction to accounting as a device for reporting business activity.  The underlying principles of accounting are studied in addition to the construction and interpretation of financial statements as they apply to sole proprietorships and partnerships.

OBJECTIVES

1. Determine how common business events affect an entity’s assets, liabilities,
2. shareholders’ equity, revenues, and expenses.
3. Prepare a basic income statement, balance sheet and statement of cash flows.
4. Use basic financial ratios to evaluate overall managerial performance and business health.
5. Compute material, labor, and overhead variances and discuss their significance.
6. Identify variable, fixed, and mixed costs. Give examples of each and compare and
7. contrast their behavior.
8. Compute the units to breakeven for a single product or service firm.
9. Describe the budgeting process in an organization and prepare a cash budget.
10. Identify relevant information to make appropriate short-term business decisions.

PREREQUISITES

None

TEXTBOOK(S)

Accounting (24th Ed.)

Publisher: Cengage (2012)

Author(s): Warren, S.C., Reeve, J.M., Duchac, J.

ISBN: 978-0538475006

* Disclaimer: Textbooks listed are based on the last open revision of the course. Prior revisions and future revisions may use different textbooks. To verify textbook information, contact Academic Affairs academics@uofriverside.com