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Financial Accounting-I: Course outline (ACT-301)

Course description

Accounting plays a vital role as an information system for monitoring, problem solving and decision-making. However, the first step is to generate and present information in a manner that is useful. In recognition of this, the principles of financial accounting course focuses on the record-keeping and financial statement preparation process. On completion of the course, students should:

  • Develop a thorough understanding of accounting records and how to record transactions in them.
  • Be able to prepare a set of financial statements for various forms of businesses and non-profit entities.
  • Develop an ability to apply accounting concepts, principles and practices.
  • Be familiar with the basic tools for analyses of financial statements.

Understand the need of accounting and financial reporting standards

Course content

Self-introduction by course instructor. Discussion on Course contents of Accounting Introduction to Accounting and its objectives of account use Conceptualization of Accounting definition Components of Accounting concepts Business Activities; (Financing, Investment, operating) Business Goal; Profitability and Liquidity Users of Accounting (reports) Basic types of Businesses in perspective of Accounting  Types of Accounting Basic Accounting principles Basic Financial Statements Balance Sheet Asset Liabilities Owners Equity Conceptualizing Balance Sheet with “Accounting Equation” Concept and objective of reporting “Income Statement” Revenue  Expenses Concept and objective of reporting “Cash flow Statement”  The Accounting Cycle - I: Capturing Accounting Events Debit and Credit Rules in Accounting General Journal Entries Ledgers Trial balance Financial Statements

Related books

Course content

The Accounting Cycle - II: Capturing Accounting Events

Adjusting EntriesShop supplies Depreciation Accruals related to adjusting period Adjusted Trial Balance Financial Statements Comprehensive Business Case for problem solution based on previous taught lectures Continue: Comprehensive Business Case for problem solution based on previous taught lectures Accounting for Merchandising Activities Accounting of Goods/Stocks (inventories) in Merchandising Business Goods/Stocks cost realization and recording Concepts Perpetual Vs. Periodic Inventory system  FIFO LIFO Average Cost and Specific Identification Accounting process for recording “Cost of Goods Sold”  in merchandising business Concept of Capital Maintenance  Materiality Concept of Financial Reporting Preparation of Profit or Loss Statement (Account) Preparation of Owners Equity Statement Preparation of Balance Sheet Closing Entries After Closing Trial Balance Handling and Accounting of Trade Discounts Transaction Relating to Purchase Credit Terms and Cash Discount Merchandise (Purchases) return Transaction Relating to Sales Sales Discounts Sales Returns Comprehensive Business Case for problem solution, based on previous taught lectures Accounting Transactions Relating to Bad Debts Provision for Bad Debts Writing off Bad Debts International Standards for Accounting and Financial Reporting International Accounting Standard Board (IASB) Framework Elements of Financial Statements International Accounting Standards (IAS)

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