Accounting is the process of accumulating, measuring, recording, and communicating economic information. This course introduces you to financial accounting, which summarizes business transactions using rules and guidelines to produce financial reports. These financial reports or statements are provided to owners and management and to parties outside of the business, such as prospective investors, suppliers, lenders, customers and government regulators.  This course is a six week course and requires a high speed internet connection to complete online assignments and exams. 

The objectives of the course are to help students:

(1) understand what is in financial statements and what the statements say about a business

(2) identify the business activities that caused the amounts that appear in the statements

(3) understand how, when, and at what amount the effects of manager and employee actions will appear in the statements.

 

The learning objectives are to:

1. Gain an understanding of accounting terminology, principles and concepts.

2. Learn how business events and transactions are reported in financial statements.

3. Prepare basic financial statements for a business.

4. Analyze financial statements to assess the performance and risk of a business.

5. Learn how financial information is utilized in the decision-making process.

On May 5, Johnson Plumbing recieves a phone call from a customer needing a new water heater and schedules a service visit for May 7. On May 7, Johnson installs the new water heater. The customer pays for services on May 10. According to the revenue recognition principle, on which date should Johnson record service revenue?

 

a. May 5 (date of phone call)

b. May 7 (date of service)

c. May 10 (date of cash receipt)

d. Evenly over the three dates