Understanding Accounting
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ACC 300

Course reading

Chapters 1 through 9 are available now. Read each chapter after the class that assigns it and before the next meeting. Later chapters appear after they are ready to assign.

Unit 1

Financial reporting, its institutions, and the accounting cycle

5 of 7 chapters published. Read them in order.

  1. Chapter 1 · Course objective 1.1

    From the event to the trial balance

    • Follow a transaction from the event through the journal and the ledger to the trial balance, and explain what equal trial balance totals test and which recording errors can remain hidden.

    Assigned in Meeting 1, Tue 9/1

  2. Chapter 2 · Course objective 1.2

    Adjusting the records at period end

    • Sort a period-end economic event into its adjustment type, compute the adjustment, and state how omitting the entry affects net income, assets, liabilities, and equity.

    Assigned in Meeting 2, Thu 9/3

  3. Chapter 3 · Course objective 1.3

    Financial statements and closing entries

    • Build the financial statements and the closing entries from an adjusted trial balance, and explain how net income and ending equity connect the statements and why the repeated amounts must agree.

    Assigned in Meeting 3, Tue 9/8

  4. Chapter 4 · Course objectives 1.4a, 1.4b, 1.4c

    Which accounting source governs, and how do you apply it?

    • Distinguish US GAAP from other standards by source and authority.
    • Determine the authoritative US GAAP that governs a reporting question.
    • Evaluate financial information for decision usefulness.

    Assigned in Meeting 4, Thu 9/10

  5. Chapter 5 · Course objective 1.5

    Interpret financial information in public filings

    • Interpret reported financial information using relevant context from the company's public filings.

    Assigned in Meeting 5, Tue 9/15

Unit 2

Reporting performance, disposals, and revenue

3 of 10 chapters published. Read them in order.

  1. Chapter 6 · Course objectives 2.1a, 2.1b

    Preparing and interpreting the income statement

    • Prepare a multiple-step income statement.
    • Analyze operating performance using income-statement subtotals.

    Assigned in Meeting 6, Thu 9/17

  2. Chapter 7 · Course objectives 2.2a, 2.2b

    Discontinued operations

    • Classify disposals and unusual items within the income statement.
    • Present the financial-statement effects of discontinued operations.

    Assigned in Meeting 7, Tue 9/22

  3. Chapter 8 · Course objectives 2.3a, 2.3b, 2.3c, 2.3d, 2.3e, 2.3f

    Apply the revenue model

    • Determine whether an arrangement should be accounted for as a contract with a customer under ASC 606.
    • Determine the performance obligations in a customer contract.
    • Determine the transaction price for a customer contract.
    • Allocate the transaction price to performance obligations.
    • Determine when and how much revenue to recognize for each performance obligation.
    • Classify and account for the balances arising from a customer contract.

    Assigned in Meeting 8, Thu 9/24

Unit 3

Financial position and current obligations

1 of 7 chapters published. Read them in order.

  1. Chapter 9 · Course objectives 3.1a, 3.1b, 3.1c

    Financial position and the balance sheet

    • Determine the balance-sheet classification of a reported item.
    • Evaluate a claim about financial position against the balance sheet's limits.
    • Determine whether reported amounts support a valid comparison.

    Assigned in Meeting 10, Thu 10/1

Later units

These chapters open after their material is ready to assign.

  1. Unit 4 Cash flows and receivables
  2. Unit 5 Inventory
  3. Unit 6 Property, plant, and equipment
  4. Unit 7 Intangible assets