[1] Accounting's Role in Society

Part A: How does accounting meet the information needs of investors and creditors?

• identify the types of decisions investors and creditors make and describe what information in the financial statements and/or related disclosures meets the information needs of each group. [1A-1]

• discuss what role ethics plays in the preparation of financial statements. [1A-2]

• identify and discuss examples of how U.S. accounting measurement techniques and financial statements differ from the measurement techniques and financial statements of other countries. [1A-3]

Part B: How does accounting meet the information needs of regulatory agencies and taxing authorities?

• describe how information sources other than the annual report (e.g., SEC Form 10-K) can be used to learn more about the nature of an entity’s business. [1B-1]

• identify some of the differences between the objectives of tax accounting and financial accounting and at least one difference between taxable income and financial accounting income. [1B-2]

• explain how a tax return is actually a special version of the income statement. [1B-3]

[2] Fundamental Business Concepts: How do businesses operate and how does accounting serve them?

• explain the meanings of key business terms (e.g., assets, budget, collateral, financing, limited liability, and lease). [2-1]

• distinguish among profit, governmental and other not-for-profit entities by identifying their respective goals and by looking at the content of their financial reports. [2-2]

• identify the characteristics of the corporate, partnership, and sole proprietorship forms of entity and discuss the advantages and disadvantages of each form. [2-3]

• classify business transactions into operating, investing, and financing activities. [2-4]

• describe the key differences in the financial statements of merchandisers, manufacturers, non-financial service companies (e.g. United Air Lines), and financial service companies; and explain how these differences reflect the operating, investing, and financing activities of each type of entity. [2-5]

[3] Fundamental Accounting Concepts Underlying Financial Statements: What are the elements of, the relationships among, and the accounting concepts underlying the primary financial statements?

• discuss what information is typically found in the balance sheet, income statement, statement of owners’ equity, and statement of cash flows. [3-1]

• apply the fundamental accounting equation (A = L + OE) to:

2. prepare a balance sheet that reports the financial condition of any entity (e.g., a person, sole proprietorship, partnership, corporation, etc.). [3-2b]

• apply the income statement equation (R - E = NI) to:

2. discuss the process used to recognize expense. [3-3b]

3. prepare an income statement that reports the results of operations for any entity. [3-3c]

• distinguish between the accrual and the cash basis of income measurement by preparing both an accrual basis and a cash basis income statement from the same set of business transactions. [3-4]

• differentiate the balance sheet from the income statement by being able to classify account titles into asset, liability, owners’ equity, and non-balance sheet accounts. [3-5]

• describe how the amounts reported on the income statement and balance sheet are determined by:

2. identifying the generally accepted valuation method for each of the major asset and liability accounts. [3-6b]

3. describing how the balance in each major asset, liability, owners’ equity, revenue, and expense account is calculated (e.g., accounts receivable and depreciation expense). [3-6c]

• link the following related financial statements--balance sheet, income statement, statement of cash flows, and statement of owners' equity. [3-7]

• classify cash receipt and cash payment transactions as well as significant non-cash transactions into the appropriate statement of cash flow activity. [3-8]

[4] Uses and Limitations of Financial Statements: What are the uses and limitations of financial statements and related information in making both business and personal financial decisions?

• identify several ways in which financial accounting information is used to make business and personal decisions. [4-1]

• calculate at least one financial statement ratio within each of the following five categories and discuss its usefulness and limitations in making decisions:[4-2]

• explain how percentage analysis can be used to uncover important relationships and trends in the financial statements. [4-3]

• explain how inventories and accounts receivable can be mismanaged and describe how a manager can use financial statement analysis to monitor and control them. [4-4]

• explain the relationship between net income and cash flows and discuss how a highly profitable, fast-growing business might face liquidity problems that could force it into bankruptcy. [4-5]

• identify several limitations of the financial statements found in the annual report. [4-6]

[5] Accounting Information Systems

• discuss how the need for relevance and reliability affect the design of an accounting information system. [5A-1]

• explain the basic components of internal control and describe the attributes of effective internal control systems. [5A-2]

• identify the strengths and weaknesses of an internal control system and, if appropriate, suggest improvements to this system. [5A-3]

Part B: How are business transactions input, processed by an accounting information system, and output by that same system to produce financial statements? To appreciate the role of technology in this process, students should work with one or more of the following tools: a spreadsheet, an accounting software package, a database, or other technology.

• identify and apply the essential conditions necessary for a business event to qualify as an accounting transaction and, therefore, be recorded in the accounting information system. [5B-1]

• distinguish between the recording phase and the reporting phase of the accounting process or cycle by being able to:

2. transfer the effects of these explicit transactions to individual asset, liability, and owners’ equity accounts. [5B-2b]

3. analyze whether an adjustment or correction is needed in a particular situation. [5B-2c]

4. record and transfer the effects of adjustments and corrections to individual asset, liability, and owners’ equity accounts. [5B-2d]

5. prepare the financial statements. [5B-2e]

• explain the significance of debits and credits as they are used in an accounting information system. [5B-3]

THE CORE COMPETENCY MODEL

FINANCIAL ACCOUNTING OUTCOMES WITH CORE COMPETENCIES

MANAGERIAL ACCOUNTING OUTCOMES WITH CORE COMPETENCIES

ACTIVE LEARNING OUTCOMES WITH CORE COMPETENCIES

APPENDIX B
DEFINITIONS: OUTCOMES AND COMPETENCIES

APPENDIX C
CHARACTERISTICS OF WELL CONSTRUCTED COMPETENCIES

RETURN TO THE COLLOQUIUM

TRAVEL INFORMATION

IMPORTANT NOTE:  This fall, daylight savings time will revert to standard time at 2:00 A.M. on Sunday, November 4, which occurs about four weeks after the Colloquium.   Thus, when setting up your travel plans, remember that during the Colloquium, Scottsdale, Arizona will be three hours earlier than (behind) Eastern Daylight Time.  This means that when it is 3:00 P.M. in Scottsdale, it is 6:00 P.M. in New York City (EDT), 5:00 P.M. in Chicago (CDT), and 4:00 PM in Denver (MDT).

AIRPORTS

To help you in your trip planning, the airport closest to the Hotel Valley Ho in Scottsdale is Phoenix Sky Harbor Airport which is serviced by most U.S. airlines.

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TRANSPORTATION SERVICES

For travel between the airport and the hotel, you can take a taxicab for $20 to $25 or a shuttle service.

Shuttle Service 

One service is SuperShuttle which will transport you between Phoenix Sky Harbor Airport and the Hotel Valley Ho for a $15.00 one-way fare.  If you plan to use their service, you are encouraged to take advantage of their reduced one-way fare of $14.00 for Colloquium attendees which can be accessed in one of two ways:

1.  Print out the special reduced fare coupons available to you by clicking on the link below:

        http://www.supershuttle.com/Coupons/PHX/TheColloquium.pdf   

        In this case, no coupon is necessary.

Another option is to call their reservations department at (602) 244-9000 in advance to arrange your transportation.

In this case, phone agents CANNOT view your group discount information but will confirm your reservation at the

standard rate.  You MUST then present your discount coupon to your driver to receive the discount.

NOTE:  For return reservations, 24 Hour advance reservations ARE required.

Parking

The Hotel's covered parking rate is $12 per night.  However, it is quite easy to find free parking on the street or in the Trader Vic's parking lot adjacent to the hotel.