ACC-620 at Southern New Hampshire University continues the graduate financial reporting sequence after ACC-610.
SNHU describes its concepts as concentrating on financial activities that affect the financial statements, including stockholders' equity, long-term liabilities, leases and cash flow statements. It forms part of SNHU's MBA accounting concentration and its graduate accounting certificate, and it is a common foundation for later graduate accounting courses.
Students often find ACC-620 the most calculation-heavy of the sequence. Bond amortisation, lease classification and the indirect cash flow method all involve multi-step workings where a small early error carries through. Understanding the logic behind each schedule matters more than memorizing formats.
Course at a Glance
| Item | Details |
|---|---|
| University | Southern New Hampshire University (SNHU) |
| Course code | ACC-620 |
| Level | Graduate |
| Sequence | Follows ACC-610; followed by ACC-630 |
| Subject area | Financial accounting under US GAAP |
| Typical work | Amortisation schedules, lease and equity problems, cash flow statements, analysis memos |
What ACC-620 Covers
| Topic | Typical content |
|---|---|
| Long-term liabilities | Bonds issued at a premium or discount, effective interest amortisation, notes payable |
| Leases | Lessee recognition of right-of-use assets and lease liabilities; finance versus operating leases under ASC 842 |
| Stockholders' equity | Share issues, treasury shares, cash and stock dividends, retained earnings |
| Cash flow statements | Operating, investing and financing activities; direct and indirect methods |
Key Concepts Explained
Bonds and the Effective Interest Method
When a bond's coupon rate differs from the market rate, it is issued at a discount or premium. Interest expense each period equals the carrying amount times the market rate; the difference from the cash coupon adjusts the carrying amount.
Example: A bond with a face value of $100,000 and a 5% annual coupon is issued for $96,000 when the market rate is 6%. Year 1 interest expense is $96,000 x 6% = $5,760. Cash paid is $5,000. The $760 difference amortises the discount, raising the carrying amount to $96,760.
Leases Under ASC 842
Lessees now recognize most leases on the balance sheet as a right-of-use asset and a lease liability measured at the present value of lease payments. Classification as finance or operating changes how expense appears on the income statement.
The Indirect Cash Flow Method
Starting with net income, you add back non-cash expenses such as depreciation and adjust for changes in working capital. An increase in receivables reduces operating cash flow because sales were recorded but not yet collected.
Example: Net income $50,000, depreciation $12,000, receivables up $8,000, payables up $3,000. Operating cash flow = 50,000 + 12,000 - 8,000 + 3,000 = $57,000.
Equity Transactions in Practice
Equity questions in ACC-620 test whether you can follow how each transaction moves between share capital, additional paid-in capital, retained earnings and treasury shares. Cash dividends reduce retained earnings when declared and create a liability until paid.
Small stock dividends are usually recorded at fair value, transferring an amount from retained earnings to paid-in capital without any cash leaving the company. Treasury share purchases reduce total equity.
Example: A company buys back 1,000 of its own shares at $25 each, then later reissues 400 of them at $30. The purchase reduces equity by $25,000 under the cost method. The reissue brings in $12,000; $10,000 removes the cost of those shares from treasury stock and the $2,000 excess is credited to paid-in capital from treasury stock, not to income.
The key principle is that a company never records a profit or loss on transactions in its own shares.
Typical Assignments and How to Approach Them
| Assignment type | What it tests | How to approach it |
|---|---|---|
| Amortisation schedules | Accurate multi-period workings | Build in Excel with linked cells, check the final balance equals face value |
| Lease problems | Classification and measurement | Test the criteria first, then compute present values |
| Equity transactions | Correct entries and presentation | Track each equity account separately |
| Cash flow statement | Linking statements together | Reconcile ending cash to the balance sheet |
Where Students Get Stuck
- Using the coupon rate for interest expense. Expense uses the market rate on carrying amount; cash uses the coupon rate.
- Cash flow sign errors. Increases in current assets reduce operating cash; increases in current liabilities add to it.
- Lease classification shortcuts. Work through each criterion rather than guessing from the lease term.
- Treasury shares as assets. They reduce equity; they are never assets.
Study Tips for ACC-620
- Build one amortisation template and reuse it for bonds and leases.
- Always reconcile your cash flow statement to the change in cash.
- Draw a timeline for every present value question.
- Review ACC-610 notes on liabilities before the first module.
How We Help with ACC-620
Send the assignment prompt, workbook or data, the rubric and any feedback. A writer with a financial reporting background can prepare a custom solution, explain each schedule, or review your work for errors. See our accounting assignment help guide for other modules.
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Frequently Asked Questions
SNHU lists stockholders' equity, long-term liabilities, leases and cash flow statements as the main areas.
ACC-620 continues the sequence after ACC-610. Check your program's prerequisites for the exact rule.
In US GAAP, lessee accounting follows ASC 842, which brings most leases onto the balance sheet.
Because its coupon rate is below the market rate, so investors pay less than face value to earn the market return.
Both are allowed under US GAAP; the indirect method is more common in practice. Use whichever your assignment requires.
Yes. Send the file; we check formulas and logic and explain any corrections.