Cost Management
Required information to prepare financial statements
USD 1.00
Learning Objectives:
- Define “transaction” and provide common examples.
- Define “transaction analysis” and explain its importance to the accounting process.
- Identify the account changes created by the purchase of inventory, the payment of a salary, and the borrowing of money.
- Understand that accounting systems can be programmed to automatically record expenses such as salary as it accrues.
- Explain the reason that a minimum of two accounts are impacted by every transaction.
- Identify the account changes that are created by the payment of insurance and rent, the sale of merchandise, the acquisition of a long-lived asset, a capital contribution, the collection of a receivable, and the payment of a liability.
- Separate the two events that occur when inventory is sold and determine the effect of each.
- Explain the history of double-entry bookkeeping.
- List the four steps followed in the accounting process. Indicate the purpose of a T-account.
- List the rules for using debits and credits.
- Understand the reason that debits and credits are always equal.
- Describe the purpose and structure of a journal entry.
- Identify the purpose of a journal.
- Define “trial balance” and indicate the source of its monetary balances.
- Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise.
- Define “accrual accounting” and list its two components. Explain the purpose of the revenue realization principle. Explain the purpose of the matching principle.
- Prepare journal entries for basic transactions such as the payment of insurance, the acquisition of a long-lived asset, the contribution of capital, the payment of a dividend, and the like.
- Explain the recording of a gain or loss rather than revenue and cost of goods sold.
- Describe the recording of an unearned revenue.
- Understand the purpose of both the journal and the ledger.
- Discuss the posting of journal entries to the ledger T-accounts and describe the purpose of that process.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 4 in the book titled "Financial Accounting".
- It provides 3 PDU (Technical skill) towards your PMP professional development education.
Course Features
Credits:
3 PDU
Skill Section:
Technical
Access:
Lifetime
Test Questions:
20