Financial Accounting 12, version 01 (4 credits)


It is recommended that students complete:
•        Grade 11 standing
Students with no previous accounting may find this course difficult. We recommend that students take Accounting 11 first if it is at all possible.  Financial Accounting 12 is designed for students who intend to take further courses in accounting, financial management, business management, or commerce in a college or university, or through enrolment in courses offered by a professional organization such as CGA. Successful completion of Financial Accounting 12 will give you a solid grounding in the kinds of analytical, decision-making, and communication skills needed by successful managers in all aspects of business.  You will also learn about a wide variety of career options, not only in accounting, but throughout the business world.

This course will enhance your skills in the following areas:

  1. decision making and problem solving in a business setting
  2. preparing, presenting, and defending financial reports
  3. evaluating a business through an examination of its financial records, and recognizing the limitations of such evaluation
  4. using the microcomputer as an evaluative tool in the management decision-making process.

The course can be done with any standard spreadsheet and word processing programs. Students may receive AppleWorks (either MAC or Windows) on loan from their Distance Education School. (Both platforms are available on CD.)  If you are not using Appleworks, please contact your Distance Education School before enrolling and make certain they can receive work on your software.

Students may send their work in electronically using email. If you intend to work this way, please contact your Distance Education School before enrolling and make certain they can receive work on your software.   Students not using email must send some of their work in on computer disks accompanied by a hard copy of the assignment.

Module 1: Basic Accounting Procedures

Section 1: Introduction to service businesses—Introduction to accounting concepts; The accounting equation; Preparation of financial statements; Revenues, Expenses, and the income statement; Computer applications
Section 2: End of period activities—Adjusting entries and the work sheet; Completing the work sheet and financial statements; Adjusting, closing, and reversing entries; Revenues, expenses, and the income statement; Computer applications
Section 3: Merchandising business—Merchandising transactions; Expanding the income statement; The work sheet for a merchandising business; The balance sheet
Module 1 Test covers the work of Module 1.

Module 2: Asset Control

Section 1: Inventory control—Inventory; Inventory records; Inventory valuation; Inventory valuation using partial records
Section 2: Cash control—Principles of internal control; Cash receipts and cash payments; Petty cash; Bank reconciliation
Section 3: Credit control—Principles of accounts receivable; Bad debt expenses; Writing off and partial payment of uncollectables; Credit cards and notes receivables
Section 4: Long-term asset control; Calculating and recording depreciation; Intangible assets and natural resources; Disposal or exchange of long-term assets
Module 2 Test covers the work of Module 2.

Module 3: Partnerships and Corporations

Section 1: Special journals and ledgers—Subsidiary ledgers; Sales and cash receipts journals; Purchases and cash payments journals; Synoptic journal
Section 2: Partnerships—Introduction to partnerships; Sales and cash receipts journals; Purchases and cash payments journals; Synoptic journal
Section 3: Corporation concepts—Introduction to corporations; Stock transactions; Dividends; Corporate taxes
Module 3 Test covers the work of Module 3.

Module 4: Financial Analysis

Section 1:  Statement of changes in financial position— Definitions and cash flows; Investing and financing activities; Working papers for the statement of changes in financial position; Analysis and interpretation of the statement of changes in financial position
Section 2:  Financial statement analysis—Financial statement analysis by management; Financial statement analysis by investors; Financial statement analysis by creditors
Module 4 Test covers the work of Module 4.

The computer software for this course is Claris-Works (MAC) or ClarisWorks (Windows).

The textbook for this course is: Financial Accounting