Introductory Financial Accounting
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: N/A
Corequisites: N/A
Equivalents: ACCG12001D
Pre/Co/Equiv Notes: N/A

Program(s): Professional Accounting Grad
Program Coordinator(s): Lorraine Alyea
Course Leader or Contact: Lorraine Alyea
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: N/A

Section II: Course Details

Detailed Description
Students prepare financial statements that summarize an entity's economic events through the use of Generally Accepted Accounting Principles (GAAP) reporting standards. Students critically examine and interpret financial statements including the balance sheet, income statement, statement of retained earnings and cash flow statement. Through a combination of various learning techniques including interactive lectures, inquiry based learning and group work, students assess the financial performance of an entity.

Program Context

Professional Accounting Grad Program Coordinator(s): Lorraine Alyea
This course is a required course in the Professional Accounting Ontario College Graduate Certificate.

Course Critical Performance and Learning Outcomes

  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. Examine the financial accounting elements to be considered when making a decision that impacts an entity's financial position.
  3. Explain the information communicated in different parts of financial statements and annual reports.
  4. Prepare financial statements using Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
  5. Analyze financial accounting information to assist in effective management decision-making.
  6. Determine the impact on business analysis of different financial accounting measures and forms of reporting.
  7. Assess financial decisions from an ethical perspective.
  8. Use appropriate financial software features to complete financial analyses.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Quizzes (Best 10 out of 11 x 1%)10.0%
 Assignments (10 x 2%)20.0%
 Midterm Exam30.0%
 Final Exam Comprehensive40.0%

Evaluation Notes and Academic Missed Work Procedure:
In addition to achieving a minimum 50% overall grade, a student must achieve a grade of at least 50% on the final comprehensive exam in order to receive credit for this course.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-class & Online Instruction
Professor: N/A
RequiredTextbookFinancial Accounting: Tools for Business Decision Making with Wiley Plus, Kimmel, Weygandt, et al, John Wiley & Sons Canada Ltd., 8th Canadian Edition, ISBN 9781119372738, 2020
RequiredOtherCPA Handbook (available online via Sheridan Library Database)

Applicable student group(s): Professional Accounting Ontario College Graduate Certificate
Course Details:

Module 1 - Canadian Financial Reporting

  • Identify the uses and users of accounting.
  • Describe the primary forms of business organization
  • Explain the three main types of business activity
  • Describe the purpose and content of each of the financial statements.
  • Identify the sections of a classified statement of financial position.
  • Identify and classify ratios for analyzing a company's liquidity, solvency and profitability
  • Describe the framework for the preparation and presentation of financial statements.

Textbook Chapters: 1 and 2

Learning Outcomes: 1, 2, 3, 5

Assessments: Quiz 1%


Module 2 –The Accounting Information System and Accrual Accounting

  • Analyze the effects of transactions on the accounting equation.
  • Explain how accounts, debits and credits are used to record transactions.
  • Journalize and post transactions to the general ledger.
  • Prepare a trial balance.
  • Explain the accrual basis of accounting and the reasons for adjusting entries.
  • Prepare adjusting entries for prepayments and accruals.
  • Prepare an adjusted trial balance.
  • Prepare closing entries and a post-closing trial balance.

Textbook Chapters: 3 and 4

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quizzes (2 x 1% each), Assignments (2 x 2% each)


Module 3 –Merchandising Operations and Inventory

  • Identify the differences between service and merchandising companies.
  • Prepare entries for purchases and sales under a perpetual inventory system.
  • Calculate the gross profit margin and profit margin.
  • Describe the steps in determining inventory quantities.
  • Apply the cost formulas using specific identification, FIFO, and average cost under a perpetual inventory system.
  • Explain the effects on the financial statement effects of choosing each of the inventory cost formulas.
  • Identify the effects of inventory errors on the financial statements.
  • Demonstrate the presentation and analysis of inventory.

Textbook Chapters: 5 and 6

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quizzes (2 x 1% each), Assignments (2 x 2% each)


Module 4 –Cash and Receivables

  • Prepare a bank reconciliation.
  • Explain the reporting and management of cash.
  • Identify the types of receivables and record accounts receivable transactions.
  • Account for bad debts.
  • Account for notes receivable.
  • Explain the statement presentation of receivables.
  • Apply the principles of sound accounts receivable management.

Textbook Chapters: 7 and 8

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1 x 1% each), Assignment (1 x 2% each)


Midterm exam 30%


Module 5 –Long-Lived Assets and Intangibles

  • Determine the cost of property, plant, and equipment.
  • Explain and calculate depreciation
  • Account for the derecognition of property, plant, and equipment.
  • Identify the basic accounting issues for intangible assets and goodwill.
  • Illustrate how long-lived assets are reported in the financial statements.
  • Describe the methods for evaluating the use of assets.

Textbook Chapter: 9

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1%), Assignment (2%)


Module 6 - Liabilities

  • Account for current liabilities.
  • Account for instalment notes payable.
  • Identify the requirements for the financial statement presentation and analysis of liabilities.
  • Account for bonds payable.

Textbook Chapter: 10

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1%), Assignment (2%)


Module 7 - Shareholders' Equity

  • Discuss the major characteristics of a corporation.
  • Record share transactions.
  • Prepare the entries for cash dividends, stock dividends, and stock splits.
  • Indicate how shareholders' equity is presented in the financial statements.
  • Evaluate dividend and earnings performance.

Textbook Chapter: 11

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1%), Assignment (2%)


Module 8 –Investments

  • Identify reasons to invest and classify investments.
  • Account for non-strategic investments.
  • Account for strategic investments.
  • Explain how investments are reported in the financial statements.

Textbook Chapter: 12

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1%), Assignment (2%)


Module 9 –Financial Statements

  • Review Statement of Financial Position
  • Prepare a single-step and a multiple-step income statement.
  • Describe the purpose and content of the statement of cash flows.
  • Prepare the operating activities section of a statement of cash flows using the indirect method.
  • Prepare the investing and financing activities sections of a statement of cash flows.
  • Use the statement of cash flows to evaluate a company's financial performance.

Textbook Chapters: 2, 5 and 13

Learning Outcomes: 1, 2, 3, 4, 5, 6

Assessments: Quiz (1%), Assignment (2%)


Comprehensive Final Exam 40%

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