Portland Community College | Portland, Oregon

Course Number:
BA 212
Course Title:
Principles of Accounting II
Credit Hours:
Lecture Hours:
Lecture/Lab Hours:
Lab Hours:
Special Fee:

Course Description

Continues the presentation of fundamental issues begun in BA 211. Introduces statement of cash flows and financial statement analysis. Prerequisites: WR 115, RD 115 and MTH 20 or equivalent placement test scores; and BA 211. Audit available.

Addendum to Course Description

This is the second term of the traditional accounting principles sequence. The course emphasis continues to be on the application of generally acceptable accounting principles to the recording and reporting of financial information, the underlying theoretical foundations of accounting, and the analytical skills needed by business and accounting students.
An understanding of accounting is necessary to examine the performance and financial health of a business. For this reason, accounting is often referred to as the €˜language of business€™. This course is the ideal way for students to acquire a valuable skill as well as begin to develop an appreciation of the role of accounting in the evaluation and management of a business. Accordingly, it is recommended as a course both for students interested in business generally, and for those planning a career in accounting.

Intended Outcomes for the course

Upon successful completion of BA 212, the student will be able to:

  1. Demonstrate an understanding of the fundamentals of financial accounting theory
  2. Support at a basic level the recording and reporting of financial information for a business
  3. Demonstrate knowledge of the use of the required financial statements

Outcome Assessment Strategies

The objectives of assessment are a demonstrated mastery of accounting theory and procedures, to include the skills and competencies listed herein. Assessment methods may include the following:

  1. Objective examinations such as multiple choice, short answer, etc.
  2. Exercise and problem test items.
  3. Problem assignments which demonstrate the application of appropriate accounting procedures.

Course Content (Themes, Concepts, Issues and Skills)

  1. Accounts receivable
  2. Notes Receivable
  3. Costing plant assets
  4. Depreciation
  5. Disposals of plant assets
  6. Intangible assets
  7. Current liabilities
  8. Bonds payable
  9. Long-term notes payable
  10. Corporation characteristics
  11. Common and preferred stock
  12. Treasury stock
  13. Cash and stock dividends
  14. Debt and stock investments
  15. Valuation, reporting of security investments
  16. Classification of cash flows
  17. Cash flow statement preparation methods
  18. Financial statement analysis
  19. Irregular items


  1. Account for receivables, to include their recognition, disposal and valuation
  2. Record the acquisition, depreciation and disposal of plant assets
  3. Explain the nature of natural resources and intangible assets and the methods of cost expiration
  4. Explain the nature and types of current liabilities
  5. Explain the nature, purpose and valuation of bonds payable
  6. Account for bonds payable, to include the issuance, retirement and amortization of discounts and premiums
  7. Demonstrate an understanding of the corporate form of organization
  8. Account for common and preferred stock issuance
  9. Account for cash dividends, and stock dividends
  10. Account for the acquisition and re-issuance of treasury stock
  11. Demonstrate the accounting and reporting for security investments, to include their acquisition, disposal and valuation
  12. Demonstrate an understanding of the purpose, use, and preparation of the statement of cash flows
  13. Use horizontal, vertical, and ratio analysis to evaluate financial strength and performance