Financial Accounting Principles, Grade 12
Prerequisite: Financial Accounting Fundamentals, Grade 11, University/College Preparation
Module 1 Overview: The Accounting Cycle
What are the 9 steps of the accounting process?
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities.
In this module we will learn about the steps in the accounting process.
Module 2 Overview: Accounting Practices for Assets
How does accounting for long-term or long-lived assets differ from short-lived or normal assets?
In this module we will learn about a merchandising business and the associated accounting cycle.
Module 3 Overview: Partnerships & Corporations
How does accounting for partnerships and corporations differ from other types of business organization?
In this module we will learn about a partnerships and corporations. A partnership is an agreement in which one or more people combine resources in a business with a view to making a profit. In a General Partnership, one or more other owners would share the management of a business, and each partner would be personally liable for all debts and obligations incurred. A corporation is a legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. We will look at how accounting for partnerships and corporations differ from other business models.
Module 4 Overview: Decision Making
How do accountants make decisions?
In this module we will learn about decision making in accounting. We will look at characteristics of useful financial information and the advantages for a corporation to obtain financing by issuing debt over equity. We will also look at the meaning and significance of free cash flow.