This course is an introduction to financial accounting concepts that includes analyzing, interpreting and recording transactions. The accounting cycle is covered for service and merchandising corporations. The course also includes the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP) using the accrual method of accounting, and emphasizes the effects of journalizing business transactions on the financial statements. Additional topics include accruals and deferrals, revenues, expenses, internal control, merchandise inventory, accounts receivable, fixed assets, long-term liabilities, and equity. (Prerequisites: None).

This course is an introduction to accounting concepts and techniques, which are essential to administration of a business enterprise. The course further covers periodic determination of income and financial position by teaching students to maintain financial records and prepare and analyze financial reports. This course is the first in a series designed for the Sophomore year in preparation for obtaining the ASB degree.