1. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin ACCT 102 Financial Accounting Overview of F/S (Chap 1,2,3,4) Cash Flows Statement (Chap 16) Investing activities (Chap 10,15) Operating activities (Chap 5,6,9,10,11) Financing activities (Chap 13,14) Management Accounting Cost Accounting (Chap 18,19,20) Cost-Volume-Profit Analysis (Chap 22) Operating Budgets (Chap 23) Capital Budgets (Chap 25) Managerial Decision (Chap 25)

2. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap1 Accounting in Business  1. Why Accounting?  2. What is Accounting?  3. Ethics in accounting  4. Accounting model / Accounting equation  5. Transaction analysis and recording  6. Financial Statement  7. Decision analysis: ROE & ROA Case: Coca Cola, Pepsi & Cadbury Schweppes

3. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 2 Analyzing and Recording Transactions 1.Analyzing and Recording Process 2.Source document, Accounts & Ledger 3.T-account vs. Debit & Credit 4.Double-Entry Accounting 5.Journalizing and Posting transactions 6.Transaction analysis for FastForward 7.Trial Balance 8.Decision analysis: Debt ratio  Wells Fargo, Hangseng Bank, CCB

4. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 3 Adjusting Accounts and Preparing Financial Statements 1.Periodic reporting / Time period principle 2.Accrual Accounting and Cash Accounting 3.Account Adjustment  Prepaid expense  Unearned revenue  Accrued expense  Accrued revenue 4.Adjusted Trial Balance (ATB) 5.Preparation of Financial statement from ATB 6.Decision Analysis: Profit Margin Case: Intel & AMD

5. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 4 Completing the Accounting Cycle 1.Use of Worksheet 2.Closing Process 3.Accounting Cycle 4.Classification of Financial Statement 5.Decision Analysis: Current ratio 6.Review Exercise (6 Problems, Please be Prepared)

6. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 5 Accounting for Merchandising Operations 1.Specialty of merchandising activities 2.Accounting for merchandise purchasing 3.Accounting for merchandise sales 4.Completing Accounting cycle 5.Financial statement format 6.Decision Analysis: Current Ratio Acid-test ratio Gross margin ratio Case: Walmart & Target

7. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 6 Inventories and Cost of Sales 1. Basics of Inventory 2. Inventory costing under a perpetual system Specific identification, FIFO, LIFO, weighted average 3. Inventory valuation and effect of inventory error LCM principle 4. Decision analysis: Inventory turnover Days sale in inventory Case: Walmart & Target

8. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 9 Accounting for Receivables 1.Recognize Accounts Receivable 2.Valuing Accounts Receivable  Bad debt allowance & Bad debt expense 3.Notes Receivable 4.Disposing of Receivables 5.Decision Analysis:  Accounts Receivable Turnover

9. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 10 Plant Assets, Natural Resources, and Intangibles 1. PPE cost determination 2. Depreciation of PPE 3. Additional Expenditure of PPE 4. Disposal of PPE 5. Nature resources 6. Intangible assets 7. Decision analysis: Total asset turnover

10. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 11 Current Liabilities and Payroll Accounting 1. Characteristics of liabilities 2. Determinable liabilities 3. Estimated liabilities Warranty Liabilities Contingent Liabilities 4. Decision analysis: Times interest earned

11. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 13 Accounting for Corporations 1. Corporate form of organization 2. Common Stock (Par Vs. Non-Par) 3. Preferred Stock (Cumulative Vs. Non-cumulative) 4. Dividends (Stock Dividend) 5. Treasury Stock (Purchase and Reissue Treasury Stock) 6. Reporting Income and Equity 7. Decision analysis: BPS Dividend yield PE ratio Case: Pfizer, Johnson & Johnson, Eli Lilly

12. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 14 Long-Term Liabilities 1. Basics of Bond 2. Bond Issuance (Bond Discount/Premium Amortization, Present value of Bond) 3. Bond Retirement 4. Long-term Note payable (Installment Note with Equal Payment or Equal Principal Payment) 5. Decision Analysis: Pledged assets to secured liability ratio

13. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 15 Investments and International Operations 1. Basics of Investments 2. Basic of Accounting for Investments 3. Accounting for AFS & Trading securities 4. Accounting for Influential Investments Equity Method for Significant Influential Investment 5. Accounting Summary for security Investments 6. International Operation (Exchange Rate Fluctuation) 7. Decision Analysis: Component of ROA

14. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 16 Reporting the Statement of Cash Flows 1.Basics of Cash flow reporting 2.Cash flow from operating (Direct Method and Indirect Method, Reconciliation between Indirect and Direct Method) 3.Cash flow from investing (Reconstruction Analysis) 4.Cash flow from financing (Reconstruction Analysis) 5.Interpretation of Statement of Cash flow 6.Decision analysis: Cash flow on total assets

15. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 17 Analysis of Financial Statements 1. Basics of analysis 2. Horizontal Analysis 3. Vertical Analysis 4. Ratio Analysis 5. Decision Analysis: Analysis reporting

16. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 18 Managerial Accounting Concepts and Principles 1. Managerial Accounting Basics 2. Managerial Cost Concepts 3. Reporting Manufacturing Activities Balance Sheet Income Statement Flow of Manufacturing Activities Manufacturing Statement 4. Decision analysis: Unit Contribution Margin Contribution Margin Ratio

17. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 19 Job Order Cost Accounting 1.Job Order Costing Accounting System 2.Job Order Cost Flows and Reports 3.Overhead and Overhead Application 4.Adjust Overapplied and Underapplied Overhead 5.Job Order Accounting Typical Journal Entries

18. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 20 Process Cost Accounting 1.Process Operation 2.Process Cost Accounting 3.Equivalent Units of Production 4.Process Costing Illustration – GenX Company 5.Hybrid Costing System 6.Process Costing Typical Accounting Entries

19. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Chap 22 Cost-Volume-Profit Analysis 1.Purpose of C-V-P Analysis 2.Identifying Cost Behavior 3.Measuring Cost Behavior 4.Using Break-Even Analysis 5.Applying C-V-P Analysis 6.Decision Analysis: Degree of Operating Leverage

20. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin 1.Capital Budgeting  Method Not using Time Value of Money  Method using Time Value of Money 2.Managerial Decision  Decision and Information  Managerial Decision Scenarios 3.Decision Analysis  Break-Even Time Chap 25 Capital Budgeting and Managerial Decisions Exh. 25-5,6