Acc 20132 11185 M31 Prin Of Financial Accounting.

Competency In this project, you will demonstrate your mastery of the following competency: • Demonstrate the foundational principles of financial accounting Scenario You work as the accountant of a sole proprietorship, Jamie’s Consulting. Jamie’s Consulting has decided to expand and would like to obtain a line of credit with the bank. To apply for a line of credit, the bank requires the most recent set of financial statements. To help the owner, Jamie, accurately convey the business’s performance and overall financial health to the bank, she has asked you to review the business’s recent transactions and write a brief that will prepare her for her meeting with the bank. Directions • Financial Review: Jamie emails you the quarterly business transactions Word document to review. Jamie is currently traveling for business and would like the information from the review in a clear and concise manner. Use the Financial Review Template Word Document to review the transactions and provide sufficient reasoning for Jamie to understand your rationale for deciding to share the financial information with the bank. To ensure the financial information is accurate, reliable, and relevant, include the following in your review: o Apply the most relevant accounting principle from GAAP to each business transaction. o Explain your rationale for applying each accounting principle. o Use the accounting principles to decide to include or omit each business transaction. o Determine the appropriate account types for each business transaction. Note that each transaction will correspond to more than one type of account. o Refer to the accounting equation to determine whether each account type results in an increase or decrease of the account. • Brief to the Owner: After you send the financial review information, Jamie follows up with you via email. She is unfamiliar with financial accounting practices and asks you to write a brief that will prepare her for communicating the reliability of the financial information to the bank. As an accountant, you are responsible for effectively conveying the importance of accurate financial information. Specifically, Jamie asks you to address the following in your brief: o Explain the importance of applying GAAP to justify the accuracy, reliability, and relevance of financial information. o Describe the limitations or risks of applying GAAP. Address Jamie’s concerns by discussing the following:  What are the methods used to identify, record, and communicate financial information?  What are the implications for omitting one or more of the generally accepted accounting principles?  What uncertainties and risk factors are associated with reporting financial information? What to Submit Every project has a deliverable or deliverables, which are the files that must be submitted before your project can be assessed. For this project, you must submit the following: 1. Financial Review The financial information must be submitted using the Financial Review Template. Include references in the footnotes section of your review. 2. Brief to the Owner Your brief to the owner should not exceed 250 words in length. Cite all references appropriately. Supporting Materials The following resource(s) may help support your work on the project: Citation Help Need help citing your sources? Use the CfA Citation Guide and Citation Maker. Jamie's Consulting Quarterly Business Transactions Word Document This document contains the business transactions for Jamie’s Consulting. You will need the transactions to prepare the financial information for Jamie’s meeting with the bank. Financial Review Template Word Document Complete this template using the business transactions provided to prepare the financial information for Jamie’s meeting with the bank. The following rubric will be used to assess your project. The rubric is a detailed list of the specific expectations your project submission must meet to demonstrate mastery of the competency. You may resubmit the project until you have demonstrated mastery of each rubric row. This competency has a Learning Resources area. This area includes units with resources such as readings and videos, which have been provided to help support your work on this project. You may be wondering how what you’re working on in the project fits together with these units. The following table shows how the different rubric rows align to the units. If you need more help with a particular rubric row, you can use the resources in the matching unit to help support your work. Project Rubric: Financial Review and Brief to the Owner Financial Review Which Resources Can Help? Applies the most relevant accounting principle for each business transaction ☐ Mastered ☐ Not Yet • Unit Resources: Accounting Principles Explains rationale for applying each accounting principle ☐ Mastered ☐ Not Yet • Unit Resources: Accounting Principles Decides to include or omit each business transaction ☐ Mastered ☐ Not Yet • Unit Resources: Business Transactions Determines the appropriate account type for each business transaction ☐ Mastered ☐ Not Yet • Unit Resources: Business Transactions • Unit Resources: Financial Accounts Determines whether each account type results in an increase or decrease of the account ☐ Mastered ☐ Not Yet • Unit Resources: Financial Accounts Brief to the Owner Which Resources Can Help? Explains the importance of applying GAAP to justify the accuracy, reliability, and relevance of financial information ☐ Mastered ☐ Not Yet • Unit Resources: Introduction to Financial Accounting Describes the limitations or risks of applying GAAP ☐ Mastered ☐ Not Yet • Unit Resources: Introduction to Financial Accounting General Which Resources Can Help? Clearly conveys meaning with correct grammar, sentence structure, and spelling; shows understanding of audience and purpose ☐ Mastered ☐ Not Yet • Academic Support Lists sources where needed using citation methods with no major errors ☐ Mastered ☐ Not Yet • Citation Help