Course Name (short): Financial Accounting
School: Business
Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Anne-Liisa Longmore
Course Leader or Contact: Lorraine Cipparrone
Originator: Lynn Easson-Irvine
Designate: Lynn Easson-Irvine
Version: 3.0
Status: Approved (APPR)

Calendar Description
Students prepare financial statements that summarize an entity's economic events through the use of generally accepted accounting principles. The complexity of the global business environment requires students to identify and distinguish international differences in accounting reporting and financial statement analysis. Students critically examine and interpret financial statements including the Statement of Financial Position, Income Statement, Statement of Comprehensive Income, Statement of Retained Earnings, Statement of Changes in Equity and Cash Flow Statement.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course will be delivered in hybrid format.

Detailed Description
Students prepare financial statements that summarize an entity's economic events through the use of generally accepted accounting principles. The complexity of the global business environment requires students to identify and distinguish international differences in accounting reporting and financial statement analysis. Students critically examine and interpret financial statements including the Statement of Financial Position, Income Statement, Statement of Comprehensive Income, Statement of Retained Earnings, Statement of Changes in Equity and Cash Flow Statement. Through a combination of various learning techniques including interactive lectures, inquiry based learning, group work and case studies, students examine accounting principles to prepare financial statements and assess the financial performance of an entity.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the 
ability to analyze financial statements, whether local or 
international, at a fundamental user level in order to make informed, 
ethical decisions.

Learning Outcomes
To achieve the critical performance, students will have demonstrated 
the ability to:
1.  Identify relevant financial data used in making business 
    decisions.
2.  Explain the financial accounting elements to consider when making   
    a decision that impacts an entity's financial position.
3.  Explain the information communicated in the different parts of 
    the financial statements and in annual reports.
4.  Prepare financial statements using generally accepted accounting 
    principles. 
5.  Interpret financial accounting information to respond to 
    accounting issues and make appropriate decisions.
6.  Determine the impact on business analysis of different financial 
    accounting measures and forms of reporting.
7.  Analyze the process of making a decision based on financial 
    statements while considering the existing organizational
    structure, strategy, culture and external environment.
8.  Assess all financial decisions with an ethical perspective on 
    corporate responsibilities. 
9.  Demonstrate professional behaviours including:
    a. Meet due dates.
    b. Produce professional quality assignments.
    c. reference materials responsibly.

Students demonstrate their learning in the following ways:



In addition to achieving a minimum 50% overall grade, a student must 

have a combined average of at least 50% on the non-group components 

of the evaluation plan in order to receive credit for this course.



Quizzes (best 10 of 11 x 1% each)  10%

Assignments (10 x 1% each)         10%

Group Assignment                   10%

Midterm Exam (Module 1-3)          35%

Final Exam (Module 1-8)            35%

Total                             100%



Assignments consist of activities completed in and out of class and 

may be assigned to be completed on an individual or group basis.

Kimmel, Weygandt, et al., Financial Accounting: Tools for Business 

Decision-Making with Wiley Plus, 6th Canadian Edition, John Wiley & 

Sons Canada Ltd. 2013

Note: Learning Outcome 8 will be inherent and apparent within each 

evaluation.



Module 1 - Canadian Financial Reporting



1. Identify the uses and users of accounting.

2. Describe the primary forms of business organization.

3. Explain the three main types of business activity.

4. Describe the purpose and content of each of the financial 

   statements.

5. Identify the sections of a classified statement of financial 

   position.

6. Describe the framework for the preparation and presentation of 

   financial statements.



Textbook Chapter: 1 and 2

Learning Outcome: 1, 2, 3, 5, 6, 7

Quiz - 1%



Module 2 - The Accounting Information System



1. Analyze the effects of transactions on the accounting equation.

2. Define debits and credits and explain how they are used to record 

   transactions.

3. Journalize and post transactions.

4. Prepare a trial balance.

5. Explain when revenues and expenses are recognized and how this 

   forms the basis for accrual accounting.

6. Describe the types of adjusting entries and prepare adjusting 

   entries for prepayments.

7. Prepare adjusting entries for accruals and an adjusted trial 

   balance.

8. Prepare a Classified Statement of Financial Position.

9. Prepare closing entries and a post-closing trial balance.



Textbook Chapter: 3 and 4

Learning Outcome: 1, 2, 3

Quizzes (2 x 1% each)



Module 3 - Income Measurement, Inventory, Cost of Goods Sold



1. Identify the differences between service and merchandising 

   companies.

2. Prepare entries for purchases under a perpetual inventory system.

3. Prepare entries for sales under a perpetual inventory system. 

4. Prepare a single-step and a multiple-step income statement.

5. Calculate the gross profit margin and profit margin.

6. Describe the steps in determining inventory quantities.

7. Apply the methods of cost determination using specific 

   identification, FIFO, and average cost under a perpetual inventory 

   system.

8. Explain the financial statement effects of choosing each of the 

   inventory cost determination methods. 

9. Identify the effects of inventory errors on the financial 

   statements.

10. Demonstrate the presentation and analysis of inventory.



Textbook Chapter: 5 and 6

Learning Outcome: 1, 2, 3, 5, 6

Quizzes (2 x 1% each)



Midterm exam 35%



Module 4 - Current Assets



1. Describe the primary components of an internal control system.

2. Apply the key control activities to cash receipts and payments.

3. Prepare a bank reconciliation.

4. Explain the reporting and management of cash.

5. Identify the types of receivables and record accounts receivable 

   transactions.

6. Account for bad debts.

7. Account for notes receivable.

8. Explain the statement presentation of receivables.

9. Apply the principles of sound accounts receivable management.



Textbook Chapter: 7 and 8

Learning Outcome: 1, 2, 3, 4, 5

Quizzes (2 x 1% each)



Module 5 - Capital Assets and Intangibles



1. Determine the cost of property, plant, and equipment.

2. Explain and calculate depreciation.

3. Account for the derecognition of property, plant, and equipment.

4. Identify the basic accounting issues for intangible assets and 

   goodwill.

5. Illustrate how long-lived assets are reported in the financial 

   statements.

6. Describe the methods for evaluating the use of assets.



Textbook Chapter: 9

Learning Outcome: 1, 2, 3, 4, 5

Quiz - 1%



Module 6 - Current and Long-Term Liabilities



1. Account for current liabilities.

2. Account for instalment notes payable.

3. Identify the requirements for the financial statement presentation 

   and analysis of liabilities.



Textbook Chapter: 10

Learning Outcome: 1, 2, 3, 4 ,5

Quiz - 1%



Module 7 - Shareholders' Equity



1. Identify and discuss the major characteristics of a corporation.

2. Record share transactions.

3. Prepare the entries for cash dividends, stock dividends, and stock 

   splits, and understand their financial impact.

4. Indicate how shareholders' equity is presented in the financial 

   statements.

5. Evaluate dividend and earnings performance.



Textbook Chapter: 11

Learning Outcome: 1, 2, 3, 4, 5

Quiz - 1%



Module 8 - Statement of Cash Flow and Financial Statement Analysis



1. Describe the purpose and content of the statement of cash flows.

2. Prepare the operating activities section of a statement of cash 

   flows using one of two approaches (indirect method or direct  

   method).

3. Prepare the investing activities section of a statement of cash 

   flows.

4. Prepare the financing activities section of a statement of cash 

   flows.

5. Complete the statement of cash flows.

6. Use the statement of cash flows to evaluate a company¿s liquidity 

   and solvency.

7. Analyze profitability, cash flow and management performance using 

   ratio analysis.



Textbook Chapter: 13 and 14

Learning Outcome: 1, 2, 3, 4, 5, 6, 7

Quiz - 1%



Group Assignment - 10%



Final Exam (Cumulative) - 35%