Requirements and Curriculum
Note: This information reflects the requirements and curriculum printed in the 2007-08 course catalog.
Requirements
The accounting major prepares students for career opportunities in public accounting, corporate finance, manufacturing, government service, health care, and not-for-profit organizations. Students are also encouraged to design their Luther College curriculum to support future graduate studies.
Required for the major
The foundation courses which include economics 130 and 242; accounting 150; MIS 130; and mathematics 141 or 151. Also required are accounting 250, 353, 354, 358, 365, 467, 468. Suggested electives include economics 247, 248, accounting 357, management 353 and 361. Students must achieve at least a C average (2.0 GPA) in the foundation courses. Courses in which grades below C- are earned will not count toward filling the foundation requirements. These foundation requirements should be completed by the end of the sophomore year. (Accounting courses numbered above 300 are intended for students with junior standing.)
Students majoring in this area are urged to consider the following courses as electives: communication studies 132 and 252, English 210, philosophy 100 and 220, sociology 101, political science 130, psychology 130. Students planning on graduate study should consider mathematics 240, 321, and 322.
The credit hours required for the accounting major must be earned in regular classroom courses. Credits earned through directed readings, independent study, internships and the senior project may not be counted toward the total hours required for the major.
Students interested in specific professional exams, e.g., CPA, CMA, CFM, CIA, should seek the advice of an accounting faculty member.
States require 150 credit hours of post-secondary education prior to licensing as a CPA. Because of the state-by-state variation in these requirements, students interested in the CPA certification should consult with an accounting faculty member to plan their program of study.
Luther College is a member of the Association to Advance Collegiate Schools of Business International (AACSB).
Curriculum
110 Introduction to Accounting 2 hours
A course specifically for students who have had no prior study, at any level, of bookkeeping or accounting. All aspects of the accounting cycle are covered. Prerequisite: first-year or sophomore standing or consent of instructor.
139, 239, 339, 439 Special Topics Credit arr.
150 Principles of Accounting 4 hours
The course provides a basic understanding of financial and managerial accounting concepts, principles and procedures. Emphasis will be placed on the use of accounting information by management, creditors and stockholders. Course coverage includes accounting for inventory, receivables, long-term assets, short and long-term debt, stockholders equity, financial statement analysis, cost behavior analysis, manufacturing operations, budgeting and variance analysis. Prerequisite: 110.
185 First-year Seminar 4 hours
A variety of seminars for first-year students offered each January term.
250 Accounting for Decision Making 4 hours
This course examines the central role of accountants in the decision-making process of an organization. Topics include internal control, fraud prevention, capital investment analysis, mergers and acquisitions, business strategy, and compliance reporting. Prereq: 150.
353 Financial Accounting II 4 hours
Deals with financial accounting concepts and practice. Provides an expansion of the basic fundamentals of accounting procedure. Includes intensive coverage of the asset and liability sections of the balance sheet. Student applies accounting theory, standards, principles, and procedures to accounting problems. Prerequisite: 150, 250, and junior standing or above. (E, R)
354 Financial Accounting III 4 hours
Further coverage of financial accounting concepts and practice. Includes intensive coverage of the stockholders’ equity section of the balance sheet, the statement of changes in financial position, and other special topics, including pension costs, leases, and income tax allocation. Prerequisite: 353. (E, R)
357 Accounting for Government and Nonprofit Entities 4 hours
Introduction to governmental accounting and financial reporting principles, procedures, and analysis are emphasized. Nonprofit accounting, financial reporting, analysis, and operational performance topics are studied in a portion of the course. Prerequisite: 150 or junior standing.
358 Managerial Cost Accounting 4 hours
Advanced course in managerial accounting focusing on cost accumulation and allocation methods in the manufacturing environment, including activity based costing (ABC). Advanced topics include statistical cost estimation, flexible budgeting, standard costing, inventory valuation, capacity analysis, pricing, variance analysis, performance measurement, strategic analysis, and continous improvement methods. Prerequisite: 353 or consent of instructor.
365 Financial Accounting IV 4 hours
Accounting for mergers and consolidations, partnerships, foreign currency transactions, segment reporting, theoretical concepts of value and measurement, and special problems of various industries. Prerequisite: 354.
375 Directed Readings 1, 2 or 4 hours
Students who develop an interest in a specialized area of the discipline for which course offerings are limited may follow a prescribed reading list under the direction of a member of the faculty with expertise in that area.
380 Internship 1, 2, or 4 hours
On-the-job learning experience in government or industry. The plan must be presented for departmental approval before the experience begins. (Note: Those students with less than a 2.50 GPA in the major must have departmental approval before interviewing.)
395 Independent Study 1, 2, or 4 hours
467 Auditing and Assurance Services 4 hours
Emphasizes the analysis of an entity’s business strategy, identification of risks, mapping of business processes, evaluation of internal controls, and the implications of each of those analyses on the quality of financial and non-financial information. The accounting profession’s standards and prescribed procedures for financial statement audits are a significant component of the course. Legal responsibilities and professional ethics naturally integrate with the course content. Students learn how accounting professionals exercise judgment, examine client financial statement assertions and document a problem’s analysis, the procedures applied, and the conclusions reached. Writing instruction and practice are incorporated to realistically reflect the practice of accounting. Prerequisites: 354; open only to seniors. (E, W)
468 Federal Income Taxation 4 hours
Analysis of the individual income tax, with emphasis on the economic and legal effect on the individual taxpayer. Much of the material is relevant to the taxpayer in the business environment, including taxation for the proprietor, partnership, and basic concepts of corporate taxation. Prerequisites: 354; open only to seniors. (E, R)
485 Seminar Credit arr.
490 Senior Project 4 hours
The course integrates knowledge and competencies gained from previous accounting courses. Students work in a group environment to study and discuss contemporary issues in accounting theory and practice. Students must demonstrate the ability to investigate a specific area of research and present the results in both a written document and a presentation to an audience of peers and faculty. (S, R)
493 Senior Honors Project 4 hours
A year-long independent research project. Applications are completed on the “Honors Program” form available at the registrar’s office, requiring the signatures of a faculty supervisor, the department head, the honors program director, and the registrar. Interdisciplinary projects require the signatures of two faculty supervisors. The project must be completed by the due date for senior projects. The completed project is evaluated by a review committee consisting of the faculty supervisor, another faculty member from the major department, and a faculty member from outside the major department. All projects must be presented publicly. Only projects awarded an “A-” or “A” qualify for “department honors” designation. The honors project fulfills the all-college senior project requirement. (S, R)