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FIN3030 Capital Accounting

Advanced · 1 credit · BIT - Business, Admin, Finance and IT

Description
Students examine the accounting procedures related to proprietorships, partnerships, corporations and other entities. Students determine the effect the different forms of business ownership have on the equity section of the balance sheet.
Prerequisite
FIN2030: Retail Accounting 2
Parameters
Access to an appropriate computer work station, the Internet and appropriate software.
Supporting courses
FIN2070: Payroll Accounting FIN3050: Small Business Taxation

Outcomes The student will:

  • 1 examine the organizational differences among various forms of business organizations

    • 1.1 define accounting terms relevant to various types of business organization

    • 1.2 describe the financial, legal and tax implications of a:

      • 1.2.1 sole proprietorship

      • 1.2.2 partnership

      • 1.2.3 corporation

    • 1.3 analyze the most common types of partnerships

    • 1.4 analyze the formation and organization of a corporation

    • 1.5 differentiate between private and public corporations

    • 1.6 define a franchise and distinguish between product distribution and entire business franchising

    • 1.7 describe the major differences between buying a franchise and buying a nonfranchise business

    • 1.8 describe the differences between a cooperative and a corporation; e.g., voting, distribution of net income

    • 1.9 describe the reasons for establishing a nonprofit organization

    • 1.10 describe the legislation related to nonprofit organizations

    • 1.11 describe the difference between viable multilevel marketing versus pyramid schemes and “get rich quick schemes” including:

      • 1.11.1 list and explain compliance in relation to multilevel marketing organizations

  • 2 compare the owner’s equity for different forms of business organizations

    • 2.1 explain the changes in owner’s equity resulting from additional investments or withdrawals of capital funds for a sole proprietorship

    • 2.2 analyze data related to the partners’ equity section of the balance sheet; e.g., initial investment, share of net profit or loss, additional partner investments, withdrawals

    • 2.3 analyze data related to the shareholders’ section of the balance sheet including differences between classes of shares

    • 2.4 prepare owner’s equity statements for various types of business organizations including:

      • 2.4.1 statement of proprietor’s equity, include additional investment or withdrawal of capital funds

      • 2.4.2 statement of distribution of net income and statement of partners’ equity

      • 2.4.3 statement of shareholders’ equity

  • 3 demonstrate basic competencies

    • 3.1 demonstrate fundamental skills to:

      • 3.1.1 communicate

      • 3.1.2 manage information

      • 3.1.3 use numbers

      • 3.1.4 think and solve problems

    • 3.2 demonstrate personal management skills to:

      • 3.2.1 demonstrate positive attitudes and behaviours

      • 3.2.2 be responsible

      • 3.2.3 be adaptable

      • 3.2.4 learn continuously

      • 3.2.5 work safely

    • 3.3 demonstrate teamwork skills to:

      • 3.3.1 work with others

      • 3.3.2 participate in projects and tasks

  • 4 create a transitional strategy to accommodate personal changes and build personal values

    • 4.1 identify short-term and long-term goals

    • 4.2 identify steps to achieve goals

Program of Studies 2009. Source document, © Alberta Education.