This course covers the introduction and application of basic accounting theories through the complete accounting cycle. The emphasis is in both service and merchandising business. Specialized problems such as accounts receivable, estimating uncollectible accounts, inventory evaluations, depreciation, and general year-end adjustments are covered.

Students are exposed to corporate financing via equity and debt financing, long and short-term investing, measuring cash flows, and financial statement analysis.

Financial Statements emphasizes the usefulness of financial statements as an interpretive tool of business. Preparation and analysis of the balance sheet, income statement, and statement of cash flows are studied. Predictive policies are investigated through the analysis of ratios, and vertical and horizontal analysis of a corporation’s past historical performance.