ACCT 215 - Introductory Financial Accounting I

Course Description:
This course provides an introduction to financial accounting from the perspective of the user who makes decisions based on financial
information. The course includes an introduction to the accounting framework, generally accepted accounting principles and financial
statements. Accounting concepts such as accounting for cash, accounts receivable, assets, liabilities, sales and inventories, are
covered in the context of how they are applied to decision making. Decision analysis regarding corporate ownership and application of
financial ratios will also be studied.

3 credits

Time Guidelines:
The standard instructional time for the day-time course offering is 60 hours. Continuing Education and Distance Education hours will
vary.

Effective Term:
Fall 2016/2017

Course Assessment:
Quizzes 30%
Cases, problems, online discussion and in-class activity 20%
Comprehensive Exam 50%

Total: 100%

Distance Education Course Assessment

Online Discussions 10%
Quizzes 25%
Assignments 15%
Final Exam 50%

Total: 100%

To obtain a passing grade for this course, Distance Education students must achieve a mark of at least 50% on the final examination
and an overall course mark of at least 50%.

Other Course Information:

School of Business Information:

1. Students may be required to submit work in this course through plagiarism detection software. When this software is used,
students are required to submit their own assignments into the software by the due date provided by your instructor and will be
able to view the comparability report.
2. Recording (audio, image, video) is permitted only for individual private study and only with instructor approval prior to the

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 recording being done. Any other use of recording constitutes Non-academic Misconduct and will be dealt with in accordance with
the Student Code of Conduct procedure.
3. All communications regarding and within a course shall be considered confidential and solely for the use of the intended recipient.
4. This 3 credit course requires 135 - 180 hours of total learning effort. The total learning effort includes a combination of class
contact time and independent study. Independent study is work outside of class, for example: reading, homework assignments,
group work, practice questions and exam preparation. The table below will help you plan your weekly learning effort required to
be successful in this course.

Weekly Learning Effort - based on a 15 week schedule

Delivery
Class Contact Independent Study Total Learning Effort

Hours Hours (outside of class) (contact + independent study)

On campus daytime 4 5-8 9 - 12

On campus continuing education 3 6-9 9 - 12
Distance education 0 9 - 12 9 - 12

SAIT Policies and Procedures:

For information on the SAIT Grading Scale, please visit policy AC 3.1.1 Grading Progression Procedure: http://www.sait.ca/Documents
/About SAIT/Policies and Procedures/Academic Student/pdf/AC.3.1.1 Grading and Progression Procedure.pdf

For information on SAIT Academic Policies, please visit: http://www.sait.ca/about-sait/policies-and-procedures/academic-student.php

Required Course Publication(s):

Kimmel, Weygandt and Kieso (2014). Financial Accounting: Tools for Business Decision Making (6th Canadian ed.). Wiley. ISBN:
9781118885116.

The textbook companion website is WileyPlus.

Please refer to the learning management system (LMS) to access resources for this course.

Course Material(s):

Required access:
Internet resources
MS Office software
Required calculator - Texas Instruments BAII Plus - The standard calculator for this course is the Texas Instruments BAII Plus. This
calculator is common for all financial, math and statistical related courses in the BA/ACTD/BADM/BBA program. No other
calculator will be taught or supported for this course therefore students are expected to purchase the standard calculator. All
non-standard calculators can only be used in examinations if they meet the same user specifications as the standard calculator.
Bring Your Own Device - There are specific technology requirements for this course. Make sure you are aware of these minimum
requirements as you are bringing your own device (BYOD). Go to the Business Administration (BA) program page, “Costs and
Supplies” link on sait.ca for the BYOD specifications.

Course Learning Outcome(s):

1. Explain the function of accounting.

Objectives:

1.1 Describe the elements of the conceptual accounting framework.

1.2 Describe the nature and purpose of accounting information.

1.3 Explain decision usefulness.

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 1.4 Explain Generally Accepted Accounting Principles and IFRS.

1.5 Discuss the function of standard setting in financial accounting.

1.6 Discuss ethics and social responsibility in financial accounting.

1.7 Explain the purpose and composition of the annual report: Management Discussion and Analysis (MD and D),
Management letter, Auditor’s Report, Financial Statements, Notes to the financials.

2. Analyze financial information using components of financial statements.

Objectives:

2.1 Demonstrate the linkages among the elements of the accounting equation.

2.2 Journalize the business transaction.

2.3 Explain the foundational Generally Accepted Accounting Principles.

2.4 Apply correct terminology to the elements of simple financial statements.

2.5 Identify economic transactions as events that are recorded in accounting.

2.6 Illustrate the steps in the accounting cycle.

2.7 Explain the classification and presentation of items on a classified balance sheet.

3. Apply the concepts of accrual accounting to complete the Accounting Cycle.

Objectives:

3.1 Differentiate accrual basis of accounting and cash basis.

3.2 Discuss the role of management in selecting accounting policy.

3.3 Outline adjusting entries for prepaid expenses, unearned revenue, amortization, accrued expenses and accrued
revenue.

3.4 Illustrate the impact of closing entries on the accounts.

3.5 Explain the classification and presentation of items on a multi-step income statement.

4. Apply Generally Accepted Accounting Principles to earnings.

Objectives:

4.1 Demonstrate the relationship between revenue recognition criteria and expense matching.

4.2 Illustrate the operating cycle of a merchandising company.

4.3 Explain the relationship between performance and revenue recognition.

4.4 Apply various revenue recognition criteria.

4.5 Interpret the impacts of various revenue recognition methods on earnings recognition.

5. Evaluate cash flow information.

Objectives:

5.1 Differentiate the three fundamental business activities.

5.2 Interpret the information on a cash flow statement.

5.3 Distinguish between cash and cash equivalents.

5.4 Discuss the concept of liquidity.

5.5 Discuss the responsibility of management with respect to internal controls for cash.

6. Compile financial information for Merchandising entities.

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 Objectives:

6.1 Explain how inventory is accounted for when it is purchased and sold.

6.2 Discuss the role of management with respect to internal controls for inventory and selection of inventory system.

6.3 Analyze a company’s inventory management using merchandise turnover ratio and day’s stock on hand.

6.4 Apply valuation criteria used for inventory under Generally Accepted Accounting Principles.

6.5 Distinguish three cost flow assumptions to calculate cost of goods and value of inventory.

7. Apply Generally Accepted Accounting Principles to measure the value of long lived assets.

Objectives:

7.1 Classify acquisitions as capital assets.

7.2 Explain the purpose of amortization.

7.3 Distinguish valuation methods used for capital assets.

7.4 Account for additional costs associated with asset acquisitions.

7.5 Outline common methods of depreciation, including Capital Cost Allowance.

7.6 Discuss the factors that influence the choice of depreciation method.

8. Analyze the impact of debt on an organization.

Objectives:

8.1 Differentiate current and non-current liabilities.

8.2 Explain the valuation methods used for liabilities under Generally Accepted Accounting Principles.

8.3 Account for short-term note payable.

8.4 Explain accounting treatment for unearned revenues under Generally Accepted Accounting Principles.

8.5 Explain accounting treatment for contingencies.

8.6 Explain reporting standards for bonds and bond interest.

8.7 Distinguish between capital leases and operating leases.

9. Evaluate types of business ownership.

Objectives:

9.1 Summarize the differences in the equity structure between a single proprietorship, a partnership and a corporation.

9.2 Interpret dividends and share splits and retirement of shares.

9.3 Explain different types of shares and dividends.

9.4 Explain the purpose and structure of the statement of retained earnings.

9.5 Discuss correct accounting for the issuance and carrying value of common and preferred shares.

9.6 Explain convertible, redeemable, and retractable preferred shares.

10. Assess an organization’s financial condition.

Objectives:

10.1 Calculate and interpret horizontal and vertical analysis.

10.2 Calculate liquidity and solvency ratios.

10.3 Calculate profitability and market ratios.

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 10.4 Measure the value of accounts receivable, short-term investments, and notes receivable according to Generally
Accepted Accounting Principles.

10.5 Assess the impact of financial results on operations.

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