Principles of Accounting Level 2

Principles of Accounting Level 2 Module 1
Accounting for Receivables  

• Revenue Recognition Principle
• Fundamentals of Bad Debt Expenses and Allowances for Doubtful Accounts
• Efficiency of Receivables Management
• Receivables Ratios
• Earnings Management
• Long-Term Projects
• Notes Receivable vs. Accounts Receivable

Principles of Accounting Level 2 Module 2
Inventory

• Fundamentals of Inventory
• Periodic Inventory Method
• Four Basic Inventory Valuation Methods
• Cost of Goods Sold
• Ending Inventory Using the Period Method
• Ending Inventory Using the Perpetual Method
• Impact of Inventory Valuation Errors on Income Statement and Balance Sheet

Principles of Accounting Level 2 Module 3
Long-Term Assets

• Distinguish Between Tangible and Intangible Assets
• Patents
• Capitalized Costs vs. Expenses
• Fundamentals of Depreciation
• Fundamentals of Intangible Assets
• Special Issues for Long-Term Assets

Principles of Accounting Level 2 Module 4
Current Liabilities  

• Fundamentals of Current Liabilities
• Analyze, Report, and Journal Current Liabilities
• Contingent Liabilities
• Short-Term Notes Payable
• Recording Transactions Incurred in Preparing Payroll

Principles of Accounting Level 2 Module 5   
Long-Term Liabilities

• Pricing of Long-Term Liabilities
• Types of Long-Term Funding
• Effective-Interest Method
• Life Cycle of Bonds
• Bonds Payable

Principles of Accounting Level 2 Module 6
Corporation Accounting

• Organization of a Corporation
• Advantages of the Corporate Form
• Typical Common Stock Transactions
• Nature and Purposes of Dividends
• Owners’ Equity vs. Retained Earnings
• Earnings per Share

Principles of Accounting Level 2 Module 7
Partnership Accounting

• Characteristics of a Partnership
• Disadvantages of Organizing as a Partnership
• Types of Partnerships
• Dissolution of a Partnership
• Creation of a Partnership
• Allocation of Income and Loss
• Admission of New Partner
• Fundamentals of Partnership Dissolution

Principles of Accounting Level 2 Module 8
Statement of Cash Flows

• Approaches to Preparing the Statement of Cash Flows
• Operating, Investing, and Financing Activities
• Indirect Method
• Assessing Liquidity
• Solvency
• Free Cash Flow

**Outlines are subject to change, as courses and materials are updated.**