Financial Accounting Principles - 12


This course introduces students to advanced accounting principles that will prepare them for postsecondary studies in business. Students will learn about financial statements for various forms of business ownership and how those statements are interpreted in making business decisions. This course expands students’ knowledge of sources of financing, further develops accounting methods for assets, and introduces accounting for partnerships and corporations.

Prerequisites: Financial Accounting Fundamentals BAF3M


Couse Overview

Unit 1: The Accounting Cycle (22 hours)
This unit will review the accounting principles and practices from the grade 11 accounting course. Students will review the Generally Accepted Accounting Principles (GAAPs). Students will refamiliarize themselves with accounting software as they complete the accounting cycle for a merchandising business. Finally, we will review current ethical issues in accounting.

1-1 Accounting Principles (GAAPS)
1-2 Accounting Agencies
1-3 Completing the Accounting Cycle
1-4 Ethics and Issues in Accounting                                


Unit 2: Accounting Practices for Assets (30 hours)
This unit will introduce students to advanced accounting practices for assets. Students will learn about different inventory systems and the flow of inventory. Then we will study notes receivable and bad debts. The unit will end with a study of the true valuation of assets, depreciation & depletion of assets and accounting for intangible assets.

2-1 Sales of Inventory
2-2 Bad Debts
2-3 Notes Receivable
2-4 Inventory Systems
2-5 Inventory Controls
2-6 Capital Assets
2-7 Amortization and Depletion                                       
2-8 Intangible Assets


Unit 3: Partnerships and Corporations (26 hours)
This unit will introduce students to the accounting procedures and policies for partnerships and corporations. Students will learn about adding and removing a partner from a partnership as well as procedures for dividing the net income. We will then move on to learn about corporations and how owner's equity is converted to stocks/shares. Students will journalize the issuance of stock and the dividend payouts. We will end the unit with a look at corporate financial statements and how they differ from sole proprietor statements.

3-1 Partnership Accounting Theory
3-2 Partnership Transaction
3-3 Partnership Financial Statements                                 
3-4 Corporation Accounting Theory
3-5 Corporation Stock Transactions
3-6 Corporation Divident Transactions
3-7 Corporation Financial Statements


Unit 4: Financial Analysis and Decision Making (22 hours)
This unit will introduce students to different methods of financing a business, including: notes payable and bonds. Students will then study the annual reports of a business to learn about the purpose and goals of a corporation's financial statements. Finally, students will engage in analyzing and decision making processes as they study how accountants use annual reports and financial statements in order to help a corporation succeed.

4-1 Financing - Debt and Equity                                            
4-2 Notes Payable
4-3 Bonds Payable
4-4 Annual Reports
4-5 Ethics and Current Issues