Presents an overview of the accounting cycle, leading to preparation of basic financial statements including the income statement and balance sheet. During the first semester, examines the proper accounting treatment of the major assets of merchandising and service companies including cash, accounts receivable, inventory, property, plant and equipment. Introduces the cash flow statement, basic financial statement analysis and special topics such as partnership accounting, income taxes and accounting for manufacturing companies. This course studies accounting and management issues pertinent to state and local government, voluntary health and welfare organizations, other nonprofit organizations, college and universities, and private nonprofit hospitals. This course offers a thorough study of the proper valuation of assets, liabilities, and stockholder s equity, and the related problems of the proper matching of revenues and expenses.
Emphasis is given to the preparation, analysis and interpretation of financial statements.
The first semester includes a quarter-unit computer lab. Ecoa 282 Auditing Considers the theory and practice of auditing including professional ethics, professional standards and procedures, and the legal environment in which the auditor functions. Emphasis is placed on the audit process as students gain an understanding of how to plan, design and execute an audit. Other topics include internal control, the nature of evidential matter and the auditor's reporting responsibilities. A study of the federal income tax laws as they relate to individuals, partnerships, and corporations, with special emphasis upon tax planning.