MCCCD Program Description

Understanding Financial Statements

Course: ACC125

First Term: 1995 Fall

LEC 3 Credit(s) 3 Period(s) 3 Load
Subject Type: Occupational
Load Formula: S

Description: Interpretation and utilization of financial data

MCCCD Official Course Competencies
1. Analyze and interpret income and retained earnings statements. (I) 2. Analyze and interpret the balance sheet. (II) 3. Analyze and interpret other financial statements. (III)
MCCCD Official Course Competencies must be coordinated with the content outline so that each major point in the outline serves one or more competencies. MCCCD faculty retains authority in determining the pedagogical approach, methodology, content sequencing, and assessment metrics for student work. Please see individual course syllabi for additional information, including specific course requirements.

MCCCD Official Course Outline
I. Income and retained earnings statement A. Income statement 1. Net sales 2. Cost of goods sold 3. Gross profit 4. Operating expenses 5. Depreciation and amortization 6. Other income B. Retained earnings statement 1. Shareholders` equity 2. Cost vs. equity method 3. inflation and segmental accounting II. Balance sheet A. Assets 1. Current assets A. Cash and marketable securities B. Accounts receivable C. Inventories D. Prepaid expenses 2. Property, plant, and equipment 3. Other assets B. Liabilities 1. Current liabilities A. Accounts payable B. Notes payable C. Current maturities of long-term debt 2. Accrued liabilities 3. Deferred federal income tax 4. Long-term debt C. Stockholders` equity 1. Common stock 2. Additional paid-in capital 3. Retained earnings III. Other financial statements A. Statement of changes in financial position 1. Analyzing the data 2. Cash flow from operations B. Sources of data 1. Auditor`s report 2. Supplementary schedules 3. Form 10-K C. Common size financial statements D. Key financial ratios 1. Liquidity ratios 2. Activity ratios 3. Leverage ratios 4. Profitability ratios

MCCCD Governing Board Approval Date: 5/23/1995

All information published is subject to change without notice. Every effort has been made to ensure the accuracy of information presented, but based on the dynamic nature of the curricular process, course and program information is subject to change in order to reflect the most current information available.