- Code
- EMS 116
- Name
- Financial Accounting
- Semester
- 2
- Lecture hours
- 3.00
- Seminar hours
- 1.00
- Laborator hours
- 0.00
- Credits
- 3.50
- ECTS
- 5.00
- Description
-
The purpose of this course is to convey the appropriate knowledge so that the interpretation, analysis and use of financial accounting information is done in the most adequate way. At the end of this subject, students should be able to prepare and analyze financial statements: Balance Sheet and Statement of Income and Expenses. This subject also explains in detail the complete accounting cycle, how to prepare financial statements and accounting for asset and liability items.
- Objectives
-
The aim of this course is to convey knowledge for an adequate interpretation, analysis and use the information provided by financial accounting. By the end of this course, students are expected to be able to prepare and analyze the basic financial statements: balance sheet, income statement, and statement of retained earnings. Explain the components of an annual reports and their significance to the economic decision makers.
- Java
- Tema
- 1
- Syllabus presentation Presentation of the Semester Plan, Summary of Course Topics and Objectives
- 2
- Inventories and Cost of Goods Sold (Chapter 8). The flow of inventory costs: cost flow assumptions, average-cost method, first-in first-out method, last-in first-out method and evaluation of methods (pg 342-349). Taking a physical inventory: recording shrinkage losses, LCM and other write-downs of inventory (pg 351-358). Techniques for estimation of the cost of goods sold and the ending inventory: the gross profit method, the retail method (pg 358-360). Chapter (1, 2 ) Financial Statements and the Accounting Cycle: Capturing Economic Events (Financial Accounting, 16th Edition by Williams, Haka, Bettner and Carcello: McGraw-Hill, Inc., 2008, pp. 2-84)
- 3
- Plant and Intangible Assets (Chapter 9). Major categories of plant assets (pg 392). Accountable events in the lives of plant assets. Determining the costs of plant assets. Depreciation: allocating the cost of plant and equipment over the years of use. Methods of computing depreciation: straight-line, accelerated methods. Financial statement disclosures: estimates of useful life and residual value, the principle of consistency and revision of estimated useful lives. Other methods of depreciation: the units-of-output method, MACRS, sum-of-the-years' digits, decelerated depreciation methods. Disposal of plant and equipment: gains and losses on the disposals. Intangible assets. Chapter 3 The Accounting Cycle: Adjusting Revenues and Expenses (Financial Accounting, 16th Edition by Williams, Haka, Bettner and Carcello: McGraw-Hill, Inc., 2008, pp. 138-190)
- 4
- Current Liabilities (Chapter 10) Accounting for Current Liabilities which includes notes payable, account payable, accrued liabilities which arise from the recognition of expenses for which payment will be made in a future period, payroll liabilities and the computation of the total payroll cost split in Social Security, Federal Income Tax Payables and State Income Tax Payables Accounts, and unearned revenues (page 430-435) Long Term Liabilities (Chapter 10) Accounting for long-term obligations which arise from the major expenditures such as acquisitions of plant assets, the purchase of another company or refinancing an existing long-term obligation that is about to mature, amortization table for notes payable, bonds and bond discounts and premiums, annuity and perpetuity (page 435-454)
- 5
- Stockholders’ Equity (Chapter 11) Formation of Corporations, Stockholder records in a corporation, Paid in capital or contributed capital, Common stock and preferred stocks, journal entries in the formation of companies. Issuance of stocks, stock premiums (additional paid in capital) (page 480- 520) Stockholders’ Equity: Paid in capital Accounting for legal reserves in Europe accounting jurisdiction, stock splits, market price of stocks, treasury stock (page 480- 520)
- 6
- Income and Changes in Retained Earnings Computation and analysis of the earnings per share (EPS), preferred dividends and earnings per share and representation in income statement (page 522- 527) Income and Changes in Retained Earnings Accounting for distribution of cash dividends, entries that record stock dividends, reasons for stock dividends, prior period adjustments reflected in the statement of retained earnings (page 528- 561)
- 7
- Statement of Cash Flow Chapter 13 - Purpose of the statement, classifications of the cash flows, cash versus accrual informations. Cash flows from operating activities which involve cash received from costumers, interest and dividend receives, cash payments for merchandise and for expenses, cash payment for interest and taxes. (page 564- 573)
- 8
- Midterm
- 9
- Statement of Cash Flow Chapter 13- Preparation of the CFS by direct method- Cash Flows from Investing activities which includes purchases and sales of securities, loans made and collected, cash paid to acquire a plant asset and cash received from the sale of the plant assets. Cash flows from financing activities which includes the proceeds from short term borrowings, proceeds from issuing bonds payable and capital stock, cash dividend paid to stockholders ( page 573- 579)
- 10
- Statement of Cash Flow Preparation of CFS by indirect method. Preparation of CFS with indirect method which requires supplementary schedule, budgeting as the primary cash management tool and follow on exercises.
- 11
- Financial Statement Analysis Chapter 14- Dollar and percentage change, Trend percentages, Component percentages, quality of the assets and the relative amount of debt. (page 622- 627)
- 12
- Chapter 9 Reporting and Interpretation of Material Long-Term Assets; Intangible assets; Natural Resources (Exercise Solutions) (Financial Accounting, 16th Edition by Williams, Haka, Bettner and Carcello: McGraw-Hill, Inc., 2008, pp. 384 - 428)
- 13
- Review Quizz
- 14
- Financial Statement Analysis Financial ratio analysis; liquidity, capital structure (solvency), and profitability. Measuring the liquidity and credit risk done through the following ratios ; working capital, current ratio, quick ratio, debt ratio. Measuring the profitability of the company through EPS (Earnings per share), P/E, ROI(Return on Investment), ROA (Return on Asset), ROE (Return on Equity). Analysis of common stockholders. Analysis by long-term creditors through yield rate on bonds, interest coverage ratio, debt ratio, secure claims. Analysis by short-term creditors through amount and quality of working capital, accounts receivable turnover rate, inventory turnover rate, operating cycle. (until page 655)
- 15
- Review before the Final Exam
- 16
- Final Exam
- 1
- Të kuptuarit e të gjitha fazave të ciklit të kontabilitetit
- 2
- Njohja e te gjitha pasqyrave financiare
- 3
- Aftesim ne perpilimin e pasqyrave financiare
- 4
- Aftesim ne interpretimin e te dhenave kontabel
- Quantity Percentage Total percent
- Midterms
- 1 30% 30%
- Quizzes
- 0 0% 0%
- Projects
- 1 20% 20%
- Term projects
- 0 0% 0%
- Laboratories
- 0 0% 0%
- Class participation
- 1 10% 10%
- Total term evaluation percent
- 60%
- Final exam percent
- 40%
- Total percent
- 100%
- Quantity Duration (hours) Total (hours)
- Course duration (including exam weeks)
- 16 4 64
- Off class study hours
- 14 3 42
- Duties
- 1 10 10
- Midterms
- 1 8 8
- Final exam
- 1 8 8
- Other
- 0 0 0
- Total workLoad
- 132
- Total workload / 25 (hours)
- 5.28
- ECTS
- 5.00