HONORS ADVANCED ACCOUNTING 1 and 2  Explore Educational and Career Opportunities in Accounting  Review concepts learned in Principles of Accounting 1 and 2

Learn Basic Accounting Theory and Procedure  Use Generally Accepted Accounting Principles (GAAP)

Accounting Concepts and Principles The Entity Concept The Reliability (Objectivity) Principle The Cost Principle The Going-Concern Concept The Stable Monetary Unit Concept

Review the Adjusting Process Accrual vs. Cash-Basis Accounting Other Accounting Principles The Accounting Period The Revenue Principle The Matching Principle The Time-Period Concept

Review the Adjusting Process (Con’t) Categories of Adjusting Entries Prepaid Expenses Depreciation Accrued Expenses Accrued Revenue Unearned Revenues

Merchandise Inventory Accounting Principles and Inventories Consistency Principle Disclosure Principle Materiality Concept Accounting Conservatism

Merchandise Inventory Perpetual vs. Periodic Inventory Inventory Costing Methods Specific Unit Cost Average Cost First-in, first-out (FIFO) Last-in, first-out (LIFO) Lower-of-Cost-or-Market Rule

Accounting for Plant Assets and Intangibles Measuring the Cost of a Plant Asset (Acquisition) Land and Land Improvements Buildings Machinery and Equipment Furniture and Fixtures A Lump-Sum (Basket) Purchase of Assets Capital Expenditures vs. Expenses

Accounting for Property, Plant, Equipment and Intangible Assets Recording Depreciation Depreciation Methods Straight-line Units-of-production Declining-balance Disposing of a Plant Asset

Accounting for Property, Plant, Equipment and Intangible Assets Accounting for Natural Resources Calculating and Recording Depletion Accounting for Intangible Assets Calculating and Recording Amortization Ethical Issues in Plant Asset valuations

Current Liabilities and Long- Term Liabilities Difference between Current Liabilities and Long-term Liabilities Current Liabilities Accounts Payable Short-Term Notes Payable Sales Tax Payable Current Portion of Long-Term Notes Payable Accrued Expenses (Accrued Liabilities) Unearned Revenues Current Liabilities that must be Estimated Estimated Warranty Payable Contingent Liabilities

Current Liabilities and Long- Term Liabilities Long-Term Liabilities (Bonds) Bond Terms Principal Amount, maturity value, par value Maturity date Stated interest rate Types of bonds Term Bonds Serial Bonds Secured Bonds Debentures Bond Prices Par value Discount Premium Bond Interest Rates Stated Interest Rate Market Interest Rate

Current Liabilities and Long- Term Liabilities Accounting for Bonds Payable At par At a Discount At a Premium Adjusting Entries for Bonds Payable Issuing Bonds Between Interest Dates Reporting Liabilities on the Balance Sheet Issuing Bonds Versus Stock Ethical Issues in reporting Liabilities

Corporations: Paid-In Capital and the Balance Sheet Terms and Concepts: Separate Legal Entity Continuous Life and Transferability of Ownership No Mutual Agency Limited Liability of Stockholders Separation of Ownership and Management Corporate Taxation (Double Taxation) Government Regulation

Corporations: Paid-In Capital and the Balance Sheet Stockholders’ Equity Basics Paid-in Capital Retained Earnings Stockholders’ Rights Classes of Stock Common or Preferred Par or no-par Accounting for the issuance of Stock

Corporations: Paid-In Capital and the Balance Sheet Prepare the stockholders’ equity section of a corporation’s balance sheet Retained Earnings Account for cash dividends Evaluate company’s return on assets and return on stockholders’ equity Accounting for Income Taxes by corporations

Corporations: Effects on Retained Earnings and the Income Statement Account for stock dividends Distinguish between stock splits and stock dividends Account for treasury stock Recognize why there may restrictions on retained earnings

Corporations: Effects on Retained Earnings and the Income Statement The corporate Income Statement Continuing Operations Special Items Discontinued operations Extraordinary gains and losses Earnings per Share Statement of Retained Earnings Combined Statement of Income and Retained Earnings Prior-Period Adjustments Reporting Comprehensive Income

The Statement of Cash Flows Cash and Cash Equivalents Operating, Investing, and Financing Activities Preparing the Statement of Cash Flows by the Indirect Method Measuring Cash Adequacy: Free Cash Flow

Partnership Organization Nature of Partnerships Formation of a Partnership Determine the Value of Net Assets Adjustments to Proprietorship Records Partnership Agreement Dissolving the Sole Proprietorship Opening the Partnership Records

Partnerships: Profit Division and Equity Accounting Partner’s Capital Account Partner's Drawing Account Profit-Sharing Agreement Division of Partnership Profits Admitting a new Partner Withdrawal of a Partner Liquidation of a Partnership

Problem Solving and Decision Making  EXCEL used as the primary tool for problem solving  Analyze Financial Statements for the affect of applying accounting principles

Enrichment Activities  Guest Speakers  Students Symposium at Duquesne University sponsored by the PACPAA  Field Trip to Fidelity Investments

Thank You! The End