Accounting
The accounting major prepares students for professional positions in all areas of accounting. Recent graduates are currently employed as staff accountants in CPA firms, financial and management accountants for corporations, controllers for small to medium-sized businesses, financial analysts, accounting managers for larger businesses, and agents for the Internal Revenue Service. The accounting major at Mount Mercy is designed to give students the necessary course work for preparation for all professional exams including the Certified Public Accountant (CPA) and Certified Management Accountant (CMA) exams. Mount Mercy offers a Master of Business Administration degree and has an articulation agreement with the University of Iowa’s Master of Accountancy program providing attractive options for satisfying the 150-hour requirement for CPA certification in the State of Iowa.
Objectives established for students in this major include, among others: organize and process complex financial information; apply knowledge to reach appropriate fact-based decisions; and communicate information effectively and professionally.
ACADEMIC REQUIREMENTS FOR THE ACCOUNTING PROGRAM
- All accounting majors or minors must achieve a minimum grade of C- in all accounting courses required for the major or minor. This requirement applies equally to any course equivalents that may be accepted by transfer from any other college/university.
See the Graduate section of this Catalog for more information on Graduate programs offered at Mount Mercy.
Core Requirements for all Business Majors
| BA 203 | Principles Of Law | 3 |
| BA 250 | Technology & Communication In Business | 3 |
| BA 270 | Business Statistics | 3 |
| BA 379 | Financial Management | 3 |
| BA 435 | Senior Sem - Business | 3 |
| or BA 436 | Applied Business Strategy | |
| BC 265 | Principles Of Accounting I | 3 |
| BC 266 | Principles Of Accounting II | 3 |
| BN 204 | Principles Of Management | 3 |
| BK 208 | Principles Of Marketing | 3 |
| EC 251 | Macroeconomics Principles | 3 |
| EC 252 | Microeconomic Principles | 3 |
| Select one of the following: | 3 | |
| Finite Mathematics | ||
| Basic Mathematical Modeling | ||
| Pre-Calculus | ||
| Mathematics Modeling | ||
| Business Calculus | ||
| Calculus I (Required for Actuarial Science Majors) | ||
| Total Hours | 36 | |
Accounting Major (Core business requirements plus 24 additional semester hours)
| BC 315 | Cost Accounting | 3 |
| BC 325 | Intermediate Accounting I | 3 |
| BC 326 | Intermediate Accounting II | 3 |
| BC 440 | Auditing Principles and Practices | 3 |
| BC 442 | Tax Accounting | 3 |
| BC 444 | Advanced Accounting | 3 |
| Select two of the following: | 6 | |
| Advanced Cost Accounting | ||
| Government & Not-for-Profit Accounting | ||
| Advanced Auditing | ||
| Advanced Tax Accounting | ||
| Total Hours | 24 | |
Recommended additional course for accounting majors: BA 304 Principles of Law II This course is helpful for all accounting majors, most especially those seeking CPA or CMA certification.
Accounting Minor
| BC 265 | Principles Of Accounting I | 3 |
| BC 266 | Principles Of Accounting II | 3 |
| BA 250 | Technology & Communication In Business | 3 |
| EC 251 | Macroeconomics Principles | 3 |
| EC 252 | Microeconomic Principles | 3 |
| Select four of the following: | 12 | |
| Cost Accounting | ||
| Advanced Cost Accounting | ||
| Intermediate Accounting I | ||
| Intermediate Accounting II | ||
| Government & Not-for-Profit Accounting | ||
| Auditing Principles and Practices | ||
| Advanced Auditing | ||
| Tax Accounting | ||
| Advanced Tax Accounting | ||
| Advanced Accounting | ||
| Total Hours | 27 | |
Courses
BC 202 Accounting: Information Decisions: 4 semester hours
This course provides a fundamental knowledge of accounting for individuals who do not expect to become practicing accountants but who need a basic understanding of accounting concepts. This course will emphasize accounting as a communication system involving analysis and interpretation of data. Accounting concepts will be covered as they relate to the user of financial information rather than a preparer's perspective. Emphasis will be placed on the use of accounting information for both financial and managerial decisions. Prerequisite: none.
BC 265 Principles Of Accounting I: 3 semester hours
This first course in accounting provides and introduction to the elements of financial accounting including the accounting cycle and the four basic financial statements-the balance sheet, the income statement, the statement of owner's equity, and the statement of cash flows. The various asset accounts-cash, accounts receivable, inventories, and property, plant, and equipment, will be studied in depth. Accounting for payables and other current liabilities also will be explored. Students should possess basic algebra skills. Prerequisitie: None.
BC 266 Principles Of Accounting II: 3 semester hours
This course is a continuation of BC 265 and includes further study of financial accounting along with an introduction to management accounting. Financial accounting topics include: partnership accounting, stockholder's equity, long term investments, bonds payable, the time value of money, the statement of cash flows and basic financial statement analysis. The introduction to management accounting includes the following topics: financial statements specific to a manufacturing concern, cost allocation, product costing including job order and process costing, cost-volume-prophet analysis and budgeting. Prerequisite BC 265.
BC 315 Cost Accounting: 3 semester hours
The interpretation and use of accounting information for management planning, coordination and control with emphasis on cost analysis in problem solving and decision making are covered in this course. Topics include: product costing systems, cost behavior, budgeting, standard costs, and control of decentralized operations, this course also explores relevant costs for decision-making, capital budgeting, and the tax effects of investment decisions. Prerequisite: BC 266.
BC 316 Advanced Cost Accounting: 3 semester hours
This course covers a study of accounting for inventory valuation and income determination. Topics include process costing, spoilage, joint products, by-products, cost allocation schemes, and inventory management tools. The course also explores regression analysis, learning curves, linear programming, proration of variances, and decision-making under uncertainty. Prerequisite: BC 315.
BC 325 Intermediate Accounting I: 3 semester hours
This course begins the rigorous coverage of generally accepted accounting principles as they relate to financial accounting. There will be a quick review of the accounting cycle, the format of the financial statements and the time value of money. This will be followed by in depth coverage of accounting for cash, accounts receivable, notes receivable, inventories, property, plant and equipment, and current liabilities. Students will be expected to complete at least for complex spreadsheet assignments. Students will also e expected to participate in a few activities outside of class. Prerequisite: BC 266.
BC 326 Intermediate Accounting II: 3 semester hours
As a continuation of BC 325, this course includes an in-depth study of bonds payable, notes payable, long term investments and stockholder's equity, including earnings per share calculations. In addition, issues related to revenue recognition will be covered along with accounting for pensions, capital leases and income taxes. The statement of cash flows will be examined in detail. Students will be expected to complete at least core complex spreadsheet assignments. Students will also be expected to participate in a few activities outside of class. Prerequisite: BC 325.
BC 330 Government & Not-for-Profit Accounting: 3 semester hours
This course involves the study of accounting for logical government units, health care organizations and not-for-profit entities. Other topics include budgeting and performance analysis for governmental and not-for-profit entities and the regulation of not-for-prophet entities. Students will complete a comprehensive computerized practice set. In addition each student will be required to complete a final project on a local government or not-for-prophet entity including an oral presentation about the entity. This course should be of particular interest to students who are planning to work in the government or non-prophet sector and for those preparing for the CPA exam. Prerequisite BC 266.
BC 425 Accounting Internship: 3 semester hours
Students may take advantage of internship opportunities, which become available in the area of accounting. These internships include off-campus supervision at local business and periodic conferences wit the on-campus instructor. The on-campus instructor will determine any further requirements on an individual basis. (Maximum of one semester credit for each three hours per week for the semester spent at and outside agency up to a maximum of six semester hours).
BC 440 Auditing Principles and Practices: 3 semester hours
This is a study of the audit function primarily from the independent CPA viewpoint. Emphasis is upon auditing standards, preparation of audit working papers, and the final audit report. Topics include internal control structure study and evaluation, audit sampling, auditing transaction cycles, tests of controls, substantive tests, Sarbanes-Oxley financial reporting and audition requirements and subsequent events responsibility. Prerequisite: BC 326.
BC 441 Advanced Auditing: 3 semester hours
This course covers an in-depth analysis of advanced topics in auditing with special attention to professional standards, the role of the technology in auditing , and current auditing topics. Additional topics include: quality standards, variables sampling, special audit reports, non-audit services, professional ethics and auditor's legal liability. This course is designed to supplement a student's preparation for the auditing and law content of the CPA exam. Prerequisite BC 440.
BC 442 Tax Accounting: 3 semester hours
This course involves the study of basic concepts and theory of the federal income taxation applicable to individuals and sole proprietorships. Topics include: The elements of gross income, exclusions, deductions from income, capital gains and losses, passive losses, tax free exchanges, depreciation and the sale of assets used in trade or business (including depreciation recapture). Students will complete a basic tax research memo, a complex individual income tax return by hand and a second individual income tax return using computerized tax return preparation software. Prerequisite: BC 266.
BC 443 Advanced Tax Accounting: 3 semester hours
This course involves an in-depth study of the tax laws applicable to corporations, partnerships, "S" corporations, estates, and trusts. Topics include: corporate formation and taxation, "S" corporation considerations, and gift and estate taxation. In addition, tax planning opportunities and additional areas of tax research will be covered. Prerequisite: BC 442.
BC 444 Advanced Accounting: 3 semester hours
This course includes a study of partnerships, business combination, consolidated financial statements, accounting for foreign currency transactions, and conversion of foreign financial statements. It also includes an introduction to governmental and nonprofit accounting. Prerequisite: BC 326.
BC 445 Independent Study: 3 semester hours
If a student wishes to do individual study and/or research of a particular topic, he/she should contact the appropriate member of the department as supervising instructor, as well as register through and obtain consent of his/her advisor.