Undergraduate Studies Catalog
ACCOUNTING
www.gsb.luc.edu/depts/accounting
Professors Emeriti: F.V. Boyd, C.
Caufield, R.F. Kusek, J. Jozwiak, M. Kopulsky, R. Rudolph, R.D.
White
Professors: J. Janiga, L. Metzger,
J. O’Malley
Associate Professors: H. Boller, J.
Kostolansky, E. Landgraf, B. Leonard, B. Stanko, C. Werner, T.
Zeller
Assistant Professor: J. Tabor
OBJECTIVES
The objectives in accounting include the
following: (1) to enable students to apply financial and
managerial accounting concepts in decision-making; (2) to convey
the technical knowledge and understanding of accounting necessary
to begin a successful accounting career; (3) to develop and
foster the students’ communication, intellectual, and
interpersonal skills; (4) to foster a professional orientation,
emphasizing the ethics and values necessary to an accounting
professional.
Students interested in entering the
public accounting profession who intend to take the CPA
examination are encouraged to enroll in the department’s
integrated five-year program. This program is designed to allow
undergraduate accounting and business majors to complete studies
through a masters degree (MSA) within five years. This enables
students to meet the 150 hours required by the State of Illinois
to sit for the CPA Examination effective May 2001. Students
interested in entering the managerial accounting profession who
intend to take the CMA examination are advised to take ECON 303
as a core requirement and ISOM 348 as a program elective.
Minor in Accounting Information
Systems
The accounting information systems minor is open to all
business students. The areas of Accounting and Information
Systems & Operations Management have teamed up to offer this
new and exciting minor which allows students to gain an
integrated understanding of the information business world. AIS
minor course requirements include: ACCT 231, ACCT 303, ACCT 308,
ISOM 346 and either ISOM 347 or ISOM 393. For more information
please contact the Assistant Dean of the Undergraduate Business
Program.
COURSES OF INSTRUCTION
Accounting (ACCT)
201. Introductory Accounting I.
Prerequisite: sophomore standing.
The major emphasis is on the development and reporting of
accounting information for use by investors, creditors, and
others. The student is required to develop skills in the
preparation and use of accounting information and must
demonstrate an understanding of the accounting process, and be
able to evaluate the impact of estimates, alternative accounting
principles, and the limitations of the accounting model on
accounting information. Topics include: preparation and use of
financial statements; the accounting process; and the measurement
and reporting of income, assets, liabilities, and owners’
equity.
202. Introductory Accounting II.
Prerequisites: sophomore standing, 201.
Accounting 202 highlights the differences between financial
accounting and managerial accounting. The course begins by
completing the study of transactions and events affecting
financial statements, which was begun in Accounting 201. The cash
flow statement is then explored in some detail. Finally,
financial statement analysis as traditionally practiced, is
considered as a capstone for financial accounting. The course
then focuses on the use of accounting data by management. Product
costing in a manufacturing setting, assigning of costs to
objects, learning how costs behave, and the use of accounting
data by management in planning operations, controlling
operations, and in short term decision making are all
investigated.
231. Managerial Accounting.
Prerequisites: sophomore standing, ISOM 247, a minimum grade
of "C" in 201 and 202.
Development of product costs for inventory valuation and income
determination. In addition, budgeting and control procedures are
emphasized. Topics discussed include job order costing, activity-based
costing, full absorption and direct costing, joint product costs,
an introduction to overhead allocation, cost estimation, cost-volume-profit
analysis, budgeting, standard costs, and analysis of variances.
The course incorporates computer applications to managerial
accounting problems.
303. Intermediate Accounting I.
Prerequisites: junior standing, a minimum grade of "C"
in 201 and 202.
A study of the principles underlying financial statements and
methods of application. Topics include alternatives for
measurement of revenue, asset, and equity valuation, and
presentation of financial statements. Extensive problem and
written assignments.
304. Intermediate Accounting II.
Prerequisites: junior standing, a minimum grade of "C"
in 303.
The major emphasis in Accounting 304 is on taking the conceptual
framework, introduced in Intermediate Accounting I, and then
consistently using this framework throughout the course to
evaluate and explain accounting practice. This allows the student
to not only understand the accounting methodologies but also
recognize why these approaches are generally superior to
alternative accounting treatments. Topics include concepts of
present and future value, financial instruments (debt and equity),
leases, pensions and other postretirement benefits, income taxes,
accounting changes, earnings per share, and the statement of cash
flow.
306. Advanced Accounting: Business
Combinations, Consolidations and International.
Prerequisites: junior standing, a minimum grade of "C"
in 304.
Topics include accounting for business combinations, long-term
equity accounting, consolidated financial statements, branch
accounting, and international accounting. Extensive problem
assignments.
307. Advanced Accounting: Not-for-Profit
Entities and Advanced Financial Accounting Topics.
Prerequisites: junior standing, and minimum grade of "C"
in 304.
Topics include accounting concepts as applied to state and local
government, along with financial reporting for other not-for-profit
entities, including hospitals, universities, and voluntary health
and welfare organizations. Interim financial reporting is also
discussed. Extensive problem assignments. May be taken prior to
306.
308. Accounting Information Systems.
Prerequisites: junior standing; ISOM 247; a minimum grade of
"C" in 201 and 202.
Included among the topics covered in this course are AIS internal
controls, the system development cycle, relational database
structure, and e-commerce solutions. Students will also build
flowcharting skills.
311. Auditing and Internal Control
Systems.
Prerequisites: junior standing, a minimum grade of "C"
in 303.
An in-depth investigation of internal control structure and
systems and the theory of audit evidence. Theoretical principles
and practical issues involved in planning and executing an audit
are explored. Internal control policies and procedures and
principal evidence techniques for major transaction cycles or
account groups are studied in depth. Study of appropriate AICPA
professional standards is an integral part of this course.
323. Advanced CPA Topics.
Prerequisites: junior standing; a minimum grade of "C"
in 311.
Topics include: audit and other reports, statistical sampling in
auditing, attestation standards, reporting on future-oriented
information, accountant’s legal liability, Securities &
Exchange Commission practice, professional ethics and using
technology in auditing.
328. Concepts in Taxation.
Prerequisites: junior standing; and a minimum grade of "C"
in 201 and 202.
An introduction to income tax fundamentals, with particular
reference to an individual’s tax problems and planning. The
course includes a thorough exposure to the principles related to
inclusion and exclusion from gross income, deductions, basis and
other gains and losses.
341. Advanced Studies in Taxation.
Prerequisites: junior standing, a minimum grade of "C"
in 328.
Taxation of business and other special entities, with emphasis on
principles affecting corporations and partnerships. The course
will include analysis of the tax impact upon the choice of
business form, from the inception to the termination of business.
350. Internship Program.
Prerequisite: junior standing.
Designed to provide controlled, on-the-job experience with
participating business, industrial and governmental organizations.
Can be taken for a maximum of 3 semester credit hours. Each
semester of enrollment requires a term project. This course does
not count toward a concentration in accounting. Pass/Fail credit
only.
352. CPA Review. (6)
Prerequisite: senior standing.
Completion of an approved concentration of courses in accounting,
auditing and taxes or the equivalent public accounting experience.
Covers accounting theory and problems, federal taxes, auditing
and business law. Specialists will teach the course. Lectures and
problems. Emphasis is placed on the authoritative pronouncements
issued by the AICPA, FASB, and SEC. Simulated CPA exams are given
to provide a measure of performance.
395. Independent Study in Accounting.
Prerequisite: junior standing.
Independent study is in-depth research or reading, initiated by
the student and jointly developed with a faculty member, into a
specialized area of economics not otherwise covered by department
course offerings. Variable credit. This course will not count
toward major requirements. Permission of dean required.
399. Special Topics in Accounting.
Prerequisite: junior standing Special Topics are scheduled
classes offered on an ad hoc basis. Specific titles,
prerequisites and content will vary.
Legal Environment (LREB)
OBJECTIVES
The legal environment courses are
intended to provide an understanding of the legal
responsibilities arising from the interaction of persons,
property and government while creating an awareness of the
economic and legal environment which pertains to profit and/or
nonprofit organizations.
315. Law and the Regulatory
Environment of Business I.
Prerequisite: junior standing.
This course is designed to familiarize the student with the
American legal system. Intended primarily for students who have
not previously studied law, the course includes a review of the
concept of law, the function of the courts, and the dual judicial
system of the United States. An appreciation of legal history and
the operation of law are developed through the vehicle of a
detailed analysis of contract law and a survey of other topical
headings.
351. Law and the Regulatory
Environment of Business II.
Prerequisites: junior standing, LREB 315.
This course is designed to familiarize the student with the legal
concepts supporting the major forms of doing business, such as
partnerships, limited liability companies, and corporations. The
regulations concerning federal bankruptcy and the use of
negotiable instruments as a substitute for money and a
representation of credit are also treated.
399. Selected Topics in Legal Studies.
Prerequisites: department and instructor permission with
limited enrollment.
Specific topics to be selected by the instructor.
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