Accounting

The Business Department offers majors in accounting (BC), finance, healthcare administration (HS), marketing (BK), management (BN) human resource management, and business (Adult Accelerated) and minors in accounting, finance, economics (EC), human resources, and business administration (for non-business majors). While offering students the opportunity for specializing in a particular major, the program maintains a broad base that includes exposure to various phases of business and the use of information technology in a business setting.

Upon graduating, Business majors will have the ability to succeed, for example, in: preparing a comprehensive strategic plan; developing a global business perspective; and identifying and interpreting laws affecting labor in the workplace.

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.

This degree prepares students, for example, to: apply strategic planning principles to a technical specialty area; prepare a comprehensive strategic plan; and develop analytical and critical-thinking skills and apply those skills to the management of a business.

See the Graduate section of this Catalog for more information on Graduate programs offered at Mount Mercy.

Core Requirements for all Business Majors

BA 203Principles Of Law3
BA 250Technology & Communication In Business3
BA 270Business Statistics3
BA 379Financial Management3
BA 435Senior Sem - Business3
or BA 436 Applied Business Strategy
BC 265Principles Of Accounting I3
BC 266Principles Of Accounting II3
BN 204Principles Of Management3
BK 208Principles Of Marketing3
EC 251Macroeconomics Principles3
EC 252Microeconomic Principles3
Select one of the following: 3
Finite Mathematics
Basic Mathematical Modeling
Pre-Calculus
Mathematics Modeling
Business Calculus
Calculus I
Total Hours36

Accounting Major (Core business requirements plus 24 additional semester hours)

BC 315Cost Accounting3
BC 325Intermediate Accounting I3
BC 326Intermediate Accounting II3
BC 440Auditing Principles and Practices3
BC 442Tax Accounting3
BC 444Advanced Accounting3
Select two of the following: 6
Advanced Cost Accounting
Government & Not-for-Profit Accounting
Advanced Auditing
Advanced Tax Accounting
Total Hours24

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.

ACADEMIC REQUIREMENTS FOR THE ACCOUNTING PROGRAM

  1. 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.
  2. See the additional Academic Requirements for all business department majors and minors found in the Business Administration section of the Catalog.

Accounting Minor

BC 265Principles Of Accounting I3
BC 266Principles Of Accounting II3
BA 250Technology & Communication In Business3
EC 251Macroeconomics Principles3
EC 252Microeconomic Principles3
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 Hours27

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.