Maricopa Community Colleges  ACC125   19956-99999 
Official Course Description: MCCCD Approval: 05/23/95
ACC125 19956-99999 LEC 3 Credit(s) 3 Period(s)
Understanding Financial Statements
Interpretation and utilization of financial data. Prerequisites: ACC112 or ACC211 or permission of Department/Division.
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MCCCD Official Course Competencies:
 
ACC125   19956-99999 Understanding Financial Statements
1. Analyze and interpret income and retained earnings statements. (I)
2. Analyze and interpret the balance sheet. (II)
3. Analyze and interpret other financial statements. (III)
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MCCCD Official Course Outline:
 
ACC125   19956-99999 Understanding Financial Statements
    I. Income and retained earnings statement
        A. Income statement
          1. Net sales
          2. Cost of goods sold
          3. Gross profit
          4. Operating expenses
          5. Depreciation and amortization
          6. Other income
        B. Retained earnings statement
          1. Shareholders' equity
          2. Cost vs. equity method
          3. inflation and segmental accounting
      II. Balance sheet
          A. Assets
            1. Current assets
              a. Cash and marketable securities
              b. Accounts receivable
              c. Inventories
              d. Prepaid expenses
            2. Property, plant, and equipment
            3. Other assets
          B. Liabilities
            1. Current liabilities
              a. Accounts payable
              b. Notes payable
              c. Current maturities of long-term debt
            2. Accrued liabilities
            3. Deferred federal income tax
            4. Long-term debt
          C. Stockholders' equity
            1. Common stock
            2. Additional paid-in capital
            3. Retained earnings
        III. Other financial statements
            A. Statement of changes in financial position
              1. Analyzing the data
              2. Cash flow from operations
            B. Sources of data
              1. Auditor's report
              2. Supplementary schedules
              3. Form 10-K
            C. Common size financial statements
            D. Key financial ratios
              1. Liquidity ratios
              2. Activity ratios
              3. Leverage ratios
              4. Profitability ratios
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