第一章The Financial Statements

Master the nature of a business; The role of accounting; Comprehend the accounting principles and the accounting equation; Understand the important of accounting professional moral

●1.1Explain why accounting is the language of business

Know the flow of accounting information, as well as different users of accounting information; Distinguish financial accounting and management accounting；The types of organizations we are going to look at are proprietorships, partnerships, limited-liability companies and corporations.

●1.2Explain and apply underlying accounting concepts assumptions and principles

Introduce two institutions and accounting framework formulated by these two; Introduce the joint conceptual framework of accounting developed by the FASB and the IASB; Introduce some of the basic assumptions and principles, which are entity assumption, continuity assumption, the historical cost principle and the stable-monetary-unit assumption.

●1.3Apply the accounting equation to business organizations

Introduce asset, liability and owner's equity, including the definition and relationship between them. Introduce Accounting equation.

●1.4Evaluate business operation by the financial statement and analyze the relationships among them

Learn to evaluate business operations through the financial statement and try to understand the underlying relationship between these financial statements.

●1.5Evaluate business decisions ethically

Three factors influencing business and accounting decisions are economic, legal, and ethical.

第二章Transaction Analysis

Master the account’s characteristics and trial balance; Comprehend the rules of debit and credit and Double Entry accounting

●2.1Explain what a transaction is and differentiate between different types of accounts

The definition of transaction and account; Common accounts and the differences between them

●2.2Analyze the impact of business transactions on accounts

The use of T-account; Introduce the rule of debit and credit, as well as additional Stockholders’ Equity Accounts--revenues and expenses

●2.3Construct and use a trial balance

The definition and use of trial balance; Analysis of accounts , common account formats, normal balance of account and method of correcting accounting errors.

第三章Accrual Accounting & Income

Mastering special words and phrases; the matching concept and the accrual basis of accounting; Comprehending why adjustments are necessary and list the characteristics of adjusting entries; Understanding the adjustment process

●3.1Explain how accrual accounting differs from cash-basis accounting

The definition of Accrual Accounting and Cash-basis accounting, as well as the differences and defects about theses two accounting bases; The definition and impacts of The Time-Period Concept.

●3.2Apply the revenue and expense recognition principles

The recognition principles of the revenue and expense and some special situations that need pay more attention.

●3.3Adjust the accounts

introduction about the basic principle about the adjusting process

●3.4Close the books

Definition of closing books; Prepare the closing entries; Classifying Assets and Liabilities Based on Their Liquidity

●3.5Analyze and evaluate a company’s debt-paying ability

"The calculation of net working capital, current ratio and debt ratio and the underlying meaning of these ratios"

第四章Internal Control & Cash

Mastering special words and phrases; the basic principle of internal control and the Bank Reconciliation; Comprehending the internal control

●4.1Explain fraud and components of internal control

Describe Fraud and its Impact, as well as types of common fraud; Explain the objectives of internal control; The content of The Sarbanes-Oxley Act

●4.2Introduce components of internal control

Introduction about five components of internal control: Control environment, Risk assessment, Information system, Control procedures and Monitoring of controls; technology development of internal control

●4.3Internal Control Procedures

Internal control procedures Internal control procedures and some special process need more attention; The limitations of Internal control-costs and benefits

●4.4Design and use a bank reconciliation

Introduction about documents used to control a bank account; Make a bank reconciliation

●4.5Evaluate internal controls over cash receipts and cash payments

Introduce the process about two cash resources: over the counter and through the mail; Controls over Payment by Check; The use of petty cash

第五章Short-Term Investments & Receivables

Mastering special words and phrases; GAAP for proper revenue recognition; accounting entry for short-term investment and the allowance method; How to design the internal control for accounts receivable; Comprehending the principle of allowance method

●5.1Account for short-term investments

Introduction about three categories of investments in securities: trading securities, held-to-maturity securities, and available-for-sale securities; Measurement and reporting about these short-term investments

●5.2Apply GAAP for proper revenue recognition

Introduction about two shipping terms--FOB destination and FOB shipping point ; Recording for sales discounts, sales return or allowance

●5.3Account for and control accounts receivable

Introduction the basic principles about Receivables and management about the risk of not collecting

●5.4Evaluate collectability using the allowance for uncollectible accounts

Introduction and basic principle of allowance method and direct write-off method; Different requirement for measuring uncollectible accounts expense under GAAP and IFRS.

●5.5Account for notes receivable

Relevant concepts about notes, like maturity date, maturity value, principal and term; Account for notes receivables; Methods to speed up cash flow from receivables; Introduction of factoring

●5.6Evaluate liquidity using two new ratios

The meanings and calculations of quick ratio and Days’ Sales in Receivables; Evaluate liquidity using these ratios

第六章Inventory & Cost of Goods Sold

Mastering special words and phrases; different inventory method in different time; account for inventory; gross profit percentage and inventory turnover; Comprehending the effect of different inventory method for accounting information

●6.1Show how to account for inventory

Introduction the basic principles about sale price and cost of inventory;make it clear that Calculation and disclosure about inventory;Introduction and recording process about the periodic system and the perpetual system.

●6.2Apply and compare various inventory cost methods

The calculation about inventory cost; Introduction and comparison about four generally accepted inventory methods，which are specific unit cost, Average cost, First-in, first-out (FIFO) cost, Last-in, first-out (LIFO) cost

●6.3Explain and apply underlying GAAP for inventory

Introduction about disclosure principle; Apply Lower-of-Cost-or-Market Rule when inventory is reported in the financial statements

●6.4Compute and evaluate gross profit (margin) percentage and inventory turnover

Calculation and evolution of gross profit percentage and inventory turnover

第七章Plant Assets, Natural Resources, & Intangibles

Mastering special words and phrases; accounting entry for fixed asset、intangible asset and natural resources; Understanding the principle for depletion

●7.1Measure and account for the cost of plant assets

"Introduction of several types of plant asset; Basic working rule for measuring the cost of land, buildings, machinery, and equipment; Entries for recording land improvements and leasehold improvements"

●7.2Measure and record depreciation on plant assets

Calculation of depreciation for a plant asset; Introduction and comparison about three main depreciation methods: straight-line, units-of-production and double-declining-balance.

●7.3Analyze the effect of a plant asset disposal

Accounting entries for disposing of a fully depreciated asset for no proceeds, selling a plant asset, exchanging a plant asset

●7.4Apply GAAP for natural resources and intangible assets

"Measure and account for natural resources and intangible assets"

第八章Long-Term Investments & the Time Value of Money

"Mastering special words and phrases; the type of the long-term investment; accounting entry for long-term investment; Comprehending the principle of cost method, equity method and consolidated financial statements "

●8.1Long-Term Investments

Introduction and accounting records for held-to-maturity debt securities and available-for-sale securities

第九章Liabilities

"Mastering special words and phrases; accounting for liability; Comprehending the principle of issuing the bond in different price; accounting entry for issuing bonds in premium and discount price "

●9.1Account for current and contingent liabilities

Introduction and accounting records for kinds of Current liabilities and contingent liability

●9.2Account for bonds payable, Convertible Notes

"Introduction of bonds and convertible bonds; Accounting entries about issuance of bonds payable at par, at a discount and at a premium"

第十章Stockholders’ Equity

Mastering] special words and phrases; Issuance of stock; Comprehending treasury stock; Understanding accounting entry of treasury stock in US

●10.1Account for the issuance of stock

Accounting entries to record common stock at par, common stock above par and No-par common stock; Accounting entries to record stock issuance for other than cash and common stock issued for services; Accounting entries about preferred stock

●10.2Show how treasury stock affects a company

The aims to buy issued shares; Entries about treasury-stock transactions, like recording, retirement and resale

第十一章The Statement of Cash Flows

Mastering special words and phrases; Finish the statement of cash flows using the direct method; Comprehending] the principle of direct method; Understanding indirect method principle

●11.1Prepare a statement of cash flows by the direct method

Introduction of operating activities, investing activities and financing activities; Explain the apply of indirect and direct method to make financial statement; Prepare a statement of cash flows by the direct method

第十二章Financial Statement Analysis

"Mastering special words and phrases; financial analysis system; Comprehending the value of financial analysis for decision; Understanding how can we use the financial analysis to aid the business decision"

●12.1Financial Statement Analysis

Relevant ratios about measuring ability to pay current liabilities, measuring turnover and the cash conversion cycle, measuring Leverage, measuring profitability; Analyzing Stock as an Investments; The Limitations of Ratio Analysis