Accounting 1b: Making Sense of the Money
This course is not about crunching numbers; it’s about understanding how accounting shapes business and how you can make a difference. Building on what you already know, this course takes you deeper into real-life applications of the accounting cycle. You will explore how modern tools, like inventory management, payroll, and cutting-edge technology, are shaping accounting today. Think like a boss as you work on a project throughout this course: managing internal controls for your own fictional company. Accounting is your chance to make an amazing impact in business and life.
Units at a Glance
Unit 1: Controlling Product Chaos
Inventory is the lifeblood of any merchandising business. Without inventory, there’s nothing to sell. Proper inventory management can be the difference between the success or failure of a business. Managers need to understand customer demand and the timing of those demands. This affects everything, from the way a business sets its valuation method to the way it controls inventory. Incorporating that knowledge into the purchasing and storage of product helps companies follow customer trends and have product available when customers demand it.
What will you learn in this unit?
- Analyze the distinguishing features of a merchandising company
- Differentiate between the periodic, perpetual, and just-in-time inventory management systems
- Evaluate the FIFO, LIFO, average cost, and gross margin inventory valuation methods
- Assess the implications of obsolescence, shrinkage, and sustainability for inventory management and the profitability of a company
Unit 2: Cash, Banking, and Controls
Cash is king! Being able to manage a business’s cash could result in the success or failure of the business. Understanding the types of banking procedures and controls that should be in place around those procedures can help a company secure one of their most important assets. This unit teaches the details of the cash accounts and how companies secure and validate those accounts.
What will you learn in this unit?
- Identify different types of bank accounts and banking transactions
- Recall control procedures over cash receipts, cash disbursements, and electronic banking transactions
- Apply procedures to reconcile the bank statements to the company’s financial records
- Understand the procedures on how to establish, reconcile, and replenish the petty cash account
Unit 3: Compensating Your Champions
They say that if you love what you do for a living, you would gladly do it for free. But most people don’t have that luxury. Hopefully every employee at a company loves what they do, but it’s up to payroll to make sure that staff is compensated. Let’s look at the ins and outs of making sure that happens.
What will you learn in this unit?
- Recognize laws and regulations related to the payroll function
- Apply payroll concepts to calculate earnings
- Articulate payroll deductions and electronic processes
- Identify key payroll documents
- Determine proper management techniques for the payroll process
Unit 4: Power and Potential of Accounts Receivable
In today’s fast-paced business environment, maintaining a healthy cash flow is critical. Mismanaged accounts receivable can lead to significant financial strain. This course will provide you with the tools and knowledge to not only manage receivables efficiently but also to help management make strategic decisions that enhance a company’s financial health.
What will you learn in this unit?
- Understand how to record and manage accounts receivable for a business
- Discuss the intricacies of returns, discounts, and allowances
- Explain the importance of payment terms and credit extension
- Plan the best ways to handle bad debt management
- Implement robust systems for managing customer information, improving customer service, and ensuring accurate financial reporting
Unit 5: The Payables Puzzle
This unit is all about payables. Short-term and long-term payables affect the cash flows and financial health of an organization. We will break down payables and investigate how to account for them, including strategizing for better performance and monitoring progress toward those goals.
What will you learn in this unit?
- Describe payables and their impact on cash flow
- Recognize the payables workflow
- Analyze the methods used for recording and reporting payables
- Strategize ways to optimize payables
Unit 6: Tech-Driven Accounting
This unit is designed to equip you with the knowledge and skills to excel in the modern accounting world. We will dive into the power of technology in accounting, exploring everything from computerized systems to cutting-edge advancements like artificial intelligence, blockchain, and the Internet of Things.
What will you learn in this unit?
- Compare computerized accounting methods
- Identify digital tools used in accounting
- Describe methods of data manipulation
- Explain applications for accounting in the future
Unit 7: Rules of the Game
Get ready to dive into the exciting world of regulatory bodies like the FASB and SEC and discover how they shape the rules of the accounting game. You will journey through the history of key laws like the Securities Act of 1933 and the Securities Exchange Act of 1934, uncovering the dramatic events that brought them to life. But that’s not all! You will explore the secrets of independence, confidentiality, and ethics, and see how these principles build trust and integrity in the accounting profession. You will also become a pro at protecting sensitive documents, securing online transactions, and safeguarding company assets. By the end, you will be equipped with the skills to navigate the world of accounting with confidence and contribute to your future organization’s success.
What will you learn in this unit?
- Recognize and describe the roles of major regulatory bodies in accounting
- Explain important ethical principles in accounting and how they contribute to building trust and integrity in the profession
- Understand effective regulatory measures to ensure security and compliance
- Describe the key provisions, purposes, and impacts of the Securities Act of 1933 and the Securities Exchange Act of 1934
Unit 8: Sealing the Deal: The Key Steps in Wrapping Up Accounting
In this unit, you are Lana, the proud owner of Bark & Stride. You will navigate the exciting journey of business ownership. From its humble beginnings when you opened your first business account with hard-earned savings to the triumphant moment of earning your first dollar, every decision you make will shape the future of your company. Get ready to dive into the details of the accounting cycle, where each transaction tells a story of growth, learning, and success. You will identify and record your transactions, update your general ledger, prepare trial balances, and make adjustments that reflect the true financial health of your business.
What will you learn in this unit?
- Accurately identify and record financial transactions in the general journal
- Prepare the posting of transactions from the general journal to the general ledger and prepare an accurate trial balance
- Formulate adjusting entries, recognize and correct accounting errors, and prepare accurate income statements
- Prepare comprehensive balance sheets, close the books and prepare for the next accounting period, and analyze financial statements
Required Materials
Software
- Presentation software
- Spreadsheet software
- Word processing software
Optional
- Art supplies
- Audio recording device
- Graphic design software
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