3 hours lecture per week Recommended Preparation: ICS 00 or ICS 0; qualification for MATH 24 or higher; ENG 22 or higher. ACC 201 is an introduction to accounting theory and procedure. Students learn how to record, report, and analyze financial information for sole proprietorships and partnerships. Upon successful completion of ACC 201, the student should be able to: Explain the purpose and give examples of the uses of basic financial statements of a business entity. Define assets, liabilities, and owner's equity, and discuss the relationship of the accounting equation to the process of recording business transactions. Explain the purpose of the journal, ledger, and trial balance and show how they are used in the recording process to facilitate the compiling and accumulation of accounting information. Record transactions for service and merchandising businesses in special journals and the general journal. Explain the purpose of adjusting and closing entries, proficiently prepare adjusting and closing entries. Explain the basic steps of the accounting cycle. Prepare and explain the basic elements of the Income Statement, Statement of Owner's Equity, and the Balance Sheet for a service or a merchandising business. Explain "Internal Control" as a function of Accounting and indicate the basic principles involved in establishing controls to safeguard assets and enhance the accuracy and reliability of accounting records. Describe the nature of special journals and subsidiary ledgers, proficiently execute manual recording procedures, and fully explain how computerization affects such procedures. List the basic procedures necessary for effective accounting and control of cash transactions; correctly preparing bank reconciliations; and establishing and maintaining petty cash funds. Record and control transactions involving credit sales and purchases, including the procedures for recording uncollectible accounts. Describe promissory notes and account for such notes, including the computation of interest. Calculate, accurately record, and report basic inventory transactions using the periodic and perpetual methods. Accurately determine inventory value using the lower of cost or market, gross profit, retail, and cost methods including pricing at FIFO, Average and LIFO. List the purpose and accounting principles underlying the use of depreciation, its recording and reporting; and calculate depreciation using straight line, units of production, and accelerated methods. Determine "cost" of plant, property, and equipment; differentiate between capital and revenue expenditures; and prepare entries to record typical transactions and events, including disposals. List the major components and procedures involved in the maintenance of payroll records and account for payrolls and payroll taxes. Explain generally accepted accounting principles and the various principles which should be observed to assure "reliability, understandability, and comparability" of financial reports. Determine amounts and record transactions affecting partnerships, including formation, distribution of profits and losses, changes in membership, and liquidation, and prepare Statements of Partners' Equities.

This course provides a thorough study of basic accounting principles. The accounting cycle is introduced using an appropriate mix of conceptual and procedural problems. A real-world problem using computer applications is also covered. This is a basic course, which aids in building a foundation for financial analysis and decision-making. (Fall, Spring, Summer) [Graded (Standard Letter)] Registration Restriction(s): Intensive English Program majors may not enroll