Learning Objectives
By the end of this module, you will be able to:
Discuss GAAP methods for ensuring ethical practices in accounting
Identify and account for contingent obligations, including warranties
and premiums
Record current liabilities based on a contractual amount
Record current liabilities whose amounts are determined by operating
activities
Module at a Glance
This is the recommended plan for completing the reading assignments and
activities within the module. Additional information can be found in the
module Reading and Resources section and in the task list.
Review the required resources.
Post your initial post in the module discussion.
Respond to two peers in the module discussion.
Complete the Chapter 9 homework.
Review the Final Project Guidelines and Rubric document.
Reading and Resources
Required Resources
Textbook: Intermediate Accounting: Reporting and Analysis, Chapter 9
As you read, consider the following:
How do businesses generally distinguish between short-term and
long-term liabilities?
Can the same liability have both short-term and long-term
components?
Should interest payable on a debt be disclosed separately from
principal? Why or why not?
If a vendor offers accounts payable terms of 2/10 net 30, what is the
effective interest rate for railing to take the discount?
Click the Intermediate Accounting eText link in this module to access this
resource.
RIA Checkpoint: GAAP Methods
To access this resource, you will need to create an RIA Checkpoint account.
This resource is free to SNHU Students. Use this RIA Checkpoint tutorial
PDF to create your account.
As you review this resource, consider the following:
How does GAAP help drive ethical practices in the accounting field?
Additional Support (Optional)
AccountingCoach
This website may be a helpful reference throughout the term if you need
additional explanations or support.
Khan Academy
The Khan Academy website includes video explanations of common
concepts in accounting and finance. This is a helpful resource to reference
as needed throughout the term.
Video: Chart of Accounts (7:29)
This video provides an overview of the chart of accounts and how
companies use it to record accounting information. Consider the following
as you watch:
What are some key characteristics of a chart of accounts?
What is the typical numbering system used to identify different
accounts, and how is it helpful in documenting a company’s financial
information?
Video: Accounting Equation and Debits and Credits (5:14)
In this video, you will learn about the elements of an accounting equation
and how debits and credits are identified and represented in the equation.
Consider the following as you watch:
What are the three elements of an accounting equation, and how are
they classified?
How can you determine and classify transactions as credits or debits
depending on whether they are related to assets, liabilities, or equity?
Video: Journal Entries (5:05)
In this video, you will learn how to record journal entries using a simple
three-part process. Consider the following as you watch:
What are the three parts or steps for creating a journal entry?
How can you use the accounting equation to determine whether an
amount should be recorded as a debit or credit?
Video: Adjusting Entries (9:59)
This video covers the adjusting process and the entries a company needs to
record in order to close its books at the end of an accounting period.
Consider the following as you watch:
What are the steps involved in the adjusting process?
Which accounts should you review to check whether adjusting entries
are needed?
Video: Financial Statements and the Closing Process (11:33)
In this video, you will learn about the different financial statements a
company must prepare and how to prepare them. Consider the following as
you watch:
What are the different financial statements a company needs to
prepare?
What is the role an adjusted trial balance plays in creating the other
financial statements?
What are the steps in the closing process?
