ACC-318: Intermediate Accounting II

ACC-318 at Southern New Hampshire University is Intermediate Accounting II in SNHU's current accounting programs.

SNHU describes it as a study of the liabilities and equities side of the balance sheet, applying accounting concepts for the proper preparation of financial statements.

Students analyze the inflows and outflows of cash for an organization and prepare accurate cash flow statements using the direct and indirect methods, using authentic tools and technologies to apply accounting principles to a variety of financial reporting situations.

The cash flow statement is where many students meet their hardest test. It pulls together everything from the income statement and both balance sheets, so a single misclassified item or missed non-cash adjustment leaves the statement out of balance.

Liabilities and equity bring their own detail: bonds, notes, contingencies, share issues and dividends all need precise entries.

What ACC-318 Covers

Key Concepts Explained

Indirect Method: From Profit to Cash

The indirect method starts with net income and adjusts for non-cash items and changes in working capital. Increases in current assets reduce cash; increases in current liabilities add to it.

Direct Method: Cash in, Cash Out

The direct method lists major operating receipts and payments, such as cash from customers and cash paid to suppliers. It is easier for readers to follow, and companies that use it also provide a reconciliation of net income to operating cash flow.

Treasury Shares

When a company buys back its own shares, the cost method records them as a reduction of equity, not as an asset. Reissuing them above cost credits additional paid-in capital, never a gain on the income statement.

Typical Assignments and How to Approach Them

A Method for Any Cash Flow Problem

Cash flow statements become manageable with a fixed routine. Start by computing the change in every balance sheet account. Mark each change as operating, investing or financing.

Pull in non-cash items from the income statement, such as depreciation and gains or losses on disposals, and remove gains from operating activities because the full sale proceeds belong in investing. Finally, check that the net change in cash matches the change between the two balance sheets.

If it does not, the difference itself is a clue. A gap equal to a single account change usually means it was left out; a gap of double that amount usually means the sign was reversed. Non-cash investing and financing activities, such as buying equipment by issuing a note, are disclosed separately rather than shown in the statement.

Where Students Get Stuck

• Sign errors. An increase in a current asset is a deduction under the indirect method.
• Gains and losses. Remove them from operating cash flow and report the full proceeds in investing.
• Dividends. Dividends paid are financing outflows under US GAAP.
• Equity entries. Stock dividends and splits affect equity accounts differently; check each one.

Study Tips for ACC-318

• Practice the indirect method until working capital adjustments are automatic.
• Build a cash flow worksheet template and reuse it.
• Keep an equity roll-forward for every problem with share transactions.
• Review bond amortisation from earlier courses before the liabilities chapters.

How We Help with ACC-318

Send the instructions, data, any tool exports and the rubric. An accounting tutor prepares worked statements and schedules, explains the standards behind them, or reviews your cash flow statement line by line. For wider support, see our accounting assignment help guide.

GradeEssays is independent of Southern New Hampshire University. Our models help you learn the method; complete and submit your own work under SNHU's academic integrity policy. Orders are written from scratch with free revisions within the scope of your original request.