EAST CAROLINA UNIVERSITY College of Business Detailed Course Information I Course ACCT 2101 Survey of Financial and Managerial Accounting II Instructor Textbook Information All instructors in the College of Business are either academically or professionally qualified to teach their courses All graduate classes are taught by faculty with terminal degrees in the relevant field of study Faculty who teach online courses also teach face to face campus courses To review current textbook information visit the bookstore s website http epos2 sequoiars com ePOS form cat html cat 1 store 458 and follow the link at the bottom of the page III Expanded Course Description The goal of the course is introduce non business majors to the basic concepts and application of financial and managerial accounting Pre requisites for this class are MATH 1065 or 1066 IV Course Objectives To provide students an understanding of accounting as an important element of the business information system To give beginning students an understanding of fundamental accounting theory concepts and procedures To enhance the students grasp of the accounting process and its informational output To view accounting as an information tool for managers Students who successfully complete the course will have been exposed to the concepts of both Financial and Managerial Accounting V Course Topics DIS Discretion of the Instructor Elements of Financial Statements Elements of Financial Statements Assets Income and Claims on Assets The Accounting Equation Recording Business Events Under the Accounting Equation Historical Cost and Reliability Concepts Preparing Financial Statements Financial Versus Managerial Accounting Importance of Ethics Understanding the Accounting Cycle Accrual Accounting Adjusting Entries The Matching Concept Second Accounting Cycle Prepaid Items Cost versus Expense Accounting for Unearned Revenues Supplies Prepaid Items Accrued Expenses and Accrued Revenues DIS Price earnings Ratio DIS Measuring Growth Through Percentage Analysis Accounting for Merchandising Businesses Product Costs Versus Selling and Administrative Costs Allocating Inventory Cost Between Asset and Expense Accounts Perpetual Inventory System Transportation Cost Purchase Returns and Allowances and Cash Discounts Related to Inventory Purchases DIS Common Size Financial Statements DIS Financing Merchandise Inventory Accounting for Inventories Internal Control and Cash Inventory Cost Flow Methods Specific Identification First In First Out FIFO Last In First Out LIFO Weighted Average Physical Flow DIS Effect of Cost Flow on Financial Statements Key Features of Internal Control System Accounting for Cash Controlling Cash Reconciling the Bank Account Accounting for Receivables Allowance Method of Accounting for Uncollectible Accounts Estimating Uncollectible Accounts Expense Using the Percent of Revenue Sales Method Estimating Uncollectible Accounts Expense Using the Percent of Receivables Method Recognizing Uncollectible Accounts Expense Using the Direct Write Off Method Characteristics of Notes Receivable Promissory Notes Accounting for Notes Receivable DIS Accounting for Credit Card Sales Costs of Credit Sales Average Number of Days to Collect Accounts Receivable Accounting for Long Term Operational Assets Tangible Versus Intangible Assets Determining the Cost of Long Term Assets Methods of Recognizing Depreciation Expense Straight Line Depreciation Double Declining Balance Depreciation Units of Production Depreciation Income Tax Considerations DIS Revision of Estimate DIS Continuing Expenditures for Plant Assets Natural Resources Intangible Assets Expense Recognition for Intangible Assets Balance Sheet Presentation Accounting for Liabilities Accounting for Current Liabilities Accounting for Long Term Debt Installment Notes Payable Current Versus Non Current Liquidity Versus Solvency Current Ratio Management Accounting A Value Added Discipline Differences Between Managerial and Financial Accounting Product Costing Product Costs in Manufacturing Companies Average Cost per Unit Costs Can Be Assets or Expenses Effect of Product Costs on Financial Statements Ethical Considerations Product Costs in Service Companies Emerging Trends in Managerial Accounting DIS Cost Behavior Operating Leverage and Profitability Analysis Fixed Cost Behavior Operating Leverage Variable Cost Behavior An Income Statement under the Contribution Margin Approach Measuring Operating Leverage Using Contribution Margin Cost Behavior Summarized The Relevant Range Context Sensitive Definitions of Fixed Variable and Mixed Costs Determining the Contribution Margin per Unit Determining the Break Even Point Using the Contribution Approach to Estimate the Sales Volume Necessary to Reach a Target Profit Calculating the Margin of Safety Cost Accumulation Tracing and Allocation Use of Cost Drivers to Accumulate Costs Estimated Versus Actual Cost Assignment of Cost to Objects in a Retail Business Identifying Direct Versus Indirect Costs Allocating Indirect Costs to Objects Effects of Cost Behavior on Selecting the Most Appropriate Cost Driver Establishing Cost Pools Cost Allocation The Human Factor Relevant Information for Special Decisions The Decision Environment Relevant Information Sunk Cost Quantitative Versus Qualitative Relevant Information and Special Decisions Special Order Decisions Outsourcing Decisions Segment Elimination Decisions Between Avoidable Costs and the Hierarchy of Business Activity Equipment Replacement Decisions Planning for Profit and Cost Control The Planning Process Three Levels of Planning for Business Activity Advantages of Budgeting Budgeting and Human Behavior The Master Budget Sales Budget Inventory Purchases Budget Selling and Administrative Expense Budget Cash Budget Pro Forma Income Statement Pro Forma Balance Sheet Pro Forma Statement of Cash Flows Performance Evaluation Decentralization Concept Responsibility Centers Preparing Flexible Budgets Determining Variances for Performance Evaluation Managerial Performance Measurement Return on Investment Residual Income Responsibility Accounting and the Balanced Scorecard DIS The Double Entry Accounting System VI Required Coursework Exact requirements may vary but typically to successfully complete this course the student will be required to pass 2 4 semester exams a final exam complete assigned homework exercises and take short chapter quizzes VII Course Communication Interaction The course will be a