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Financial Accounting: Course Outline

The primary aim of Financial Accounting is to provide students with an introduction to the process and function of financial reporting. Whilst a large proportion of the course is aimed at understanding accounting as a process, taking a preparers’ perspect

Course Contents

Chapter 01. Accounting and its role    

  • Development of accounting
  • Accounting Theory and Conceptual framework
  • Accounting Defined
  • Why study Accounting
  • Financial statements
  • Major fields of Accounting
  • Accounting as a Career
  • Question for Class Discussions 

 

Chapter 02.Basic Accounting Concepts

  • The Entity Concept
  • The Reliability (or Objectivity) principle
  • The cost Principle
  • The Going-Concern Assumptions
  • The Stable Currency Assumptions
  • Ethics-the-Most Fundamental Principle of Accounting       

Chapter 03. The recording process  

  • The Recognition Issue
  • The Valuation Issue
  • The Classification Issue
  • The Recording Process
  • Analysis of Transaction
  • The Journal
  • The Ledger
  • Balancing the Accounts
  • Trial Balance
  • Limitations of Trial Balance
  • Chart of Accounts    

 

Chapter 04. The year and adjustments and financial statements

  • Recording Revenue and Expenses
  • Accounting Period
  • Need for Adjusting Entries
  • Adjusting Entries Illustrated
  • Preparation of Financial Statements

Chapter 05.  Accounting for trading organization

  • The Purchase Function
  • Accounting for Purchase
  • Accounting for Stock and Cost of Goods Sold
  • Periodic System
  • Closing Entries
  • Perpetual System
  • The Accounting for Sales
  • Worksheet
  • Preparation of financial Statements
  • Departmental Accounts

 

Chapter 06.  Accounting Systems

  • Developing a System
  • Special Journal
  • Subsidiary Journal
  • Special Journal and Posting Process
  • Posting from the Cash Book
  • General Journal     

Chapter 07.  Cash and temporary investment

  • Nature and Composition of Cash
  • Cash Management and Control
  • Maintaining Bank Account
  • Steps in Preparing the Bank Reconciliation
  • Over the counter receipts
  • Short term investments                     

 

Course Contents

Chapter 08.  Accounting for debtors and stock

  • Accounting Treatment of Bad Debts
  • Direct write-Off Method
  • Aging Schedule
  • Percentage of Sales Method
  • Recoveries of Bad debts
  • Stock
  • Measurement of Stock Quantity
  • Measurement of Stock Cost
  • Perpetual Stock System
  • Periodic Stock System
  • First in First out
  • Last in First out

Chapter 09. Accounting for property, plant and equipment

  • Property, Plant and Equipment
  • Lum-sum Purchase
  • Subsequent Expenditure
  • Depreciation
  • Units-of-Output Method
  • Reducing-Balance Methods
  • Sum-of-the-years-digits Method
  • Revaluation
  • Review of Useful life
  • Intangible Assets and Amortization
  • Wasting Assets and Depletion
  • Demonstration Problem

Chapter 10. Accounting for companies

  • The Company
  • Types of Company
  • Formation of a Public Limited Co,
  • Classes of Shares
  • Ordinary Shares
  • Preference Shares
  • Issuance of Shares
  • Market Value of Shares
  • Share Capital and Share Premium
  • No Par Value Share

Chapter 11. Company final Accounts

  • Published Annual Report
  • The contents of the Published Accounts
  • Dividends
  • Reserve
  • Dividend payment process
  • Profit and Loss Appropriation Account

Chapter 11. Company final Accounts

  • Alteration of Capital
  • Bonus Shares
  • Right Issue
  • Stock Splits
  • Treasury Stock

Chapter 12. Cash Flow Statement

  • The Concept
  • The Advantages
  • Accounting Profit and Cash Flows
  • Preparation of statement of cash Flows
  • Operating Activities
  • Investing Activities
  • Financing Activities

Chapter 13. Manufacturing Account

  • Manufacturing and value chain
  • Manufacturing costs-direct costs
  • Manufacturing costs-indirect costs
  • Manufacturing costs-variable costs
  • Fixed costs
  • Manufacturing cost flow
  • Cost of goods sold
  • Manufacturing accounting
  • Manufacturing profit

Recommended Books

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