Business Accounting: Accounting for Assets

Audience

Managers or employees interested in learning the basics of accounting and accounting processes.

Objective

• Classify assets as current or noncurrent.
• Identify ways accounting relates to the overall business.
• Implement an internal control system to manage cash.
• Implement an internal control system to manage inventory.
• Calculate the new depreciation on an asset with capital expenditure improvements.
• Identify the time period over which intangible assets are amortized.

Topics Include

Unit 1: Current Assets

• Identify accounting institutions and their purposes.
• Classify assets as current or noncurrent.
• Identify ways accounting relates to the overall business.
• Identify cash equivalents.
• Implement an internal control system to manage cash.
• Identify two methods for accounting for bad debt.
• Identify the equation for calculating the accounts receivable turnover ratio.
• Calculate an accounts receivable turnover ratio.
• Identify risks associated with high and low accounts receivable turnover ratios.
• Simulation Overview:
• In this simulation you will meet with Susan Cole an Accounting Supervisor for Icon who is experienced in performing accounting duties and coordinating the work of accounting clerks under her supervision. She will give you a series of exercises to gauge your knowledge of current assets. Through these questions and answers you will increase your understanding of business accounting including assets such as cash and cash equivalents and accounts receivables.

Unit 2: Inventory

• Identify forms of inventory.
• Implement an internal control system to manage inventory.
• Identify advantages of purchase discounts.
• Differentiate between periodic and perpetual inventory systems.
• Identify types of costs included in inventory valuation.
• Differentiate among types of inventory costing methods.
• Identify the equation for calculating the inventory turnover ratio.
• Calculate and interpret an inventory turnover ratio.
• Simulation Overview:
• In this simulation you will meet with John LaForge an Icon Accountant with experience in inventory control. He has prepared a series of exercises to assess your knowledge of accounting for inventory. In talking with John you will further develop your understanding of inventory costs methods of inventory management and how to value inventory.

Unit 3: Noncurrent Assets

• Identify methods of depreciation.
• Differentiate among the types of depreciation.
• Calculate an asset's depreciation rate.
• Select the proper classification for repairs to a noncurrent asset.
• Calculate the new depreciation on an asset with capital expenditure improvements.
• Identify types of natural resources.
• Calculate the depletion rate for a natural resource.
• Identify types of intangible assets.
• Identify the time period over which intangible assets are amortized.
• Simulation Overview:
• In this simulation you will meet with Paul White a Controller with many years of experience in different financial capacities at Icon. He will present you with a series of exercises designed to test your knowledge of noncurrent assets. Through your discussion with Paul you will expand your understanding of depreciation and depletion learn how to account for capital expenditures and revenue expenditures and how to classify intangible assets.

Duration

4

Minimum Requirements

The CDROM version of this course requires:

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).
• At least a double speed CDROM drive.
• An MPC compliant sound card with attached speakers or headphones is recommended (Currently only the CDROM version supports audio).

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM and 22MB available hard disk space or file server space.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).

Media