• Accounting Information: A means to an end, Accounting from a User’s perspective, Types of accounting information, Accounting systems, determining information needs, the cost of producing accounting information, basic functions of an accounting system.
• Decision making by external parties: external users of accounting information, objectives of external financial reporting, characteristics of externally reported information, Decision making by internal parties: internal users of accounting information, objectives of management accounting, characteristics of management accounting information, Integrity of accounting information.
• Basic financial Statements: Statement of financial position: Balance sheet, assets, liabilities, Owner’s equity, the accounting equation, and the effects of business transactions: illustrations, Effects of business transactions on the accounting equation.
• Income Statement, Statement of cash flows: Relationships among financial statements, Forms of business Organization: Sole proprietorships, Partnerships, Corporations, Reporting ownership equity in the balance sheet, the use of financial statements by outsiders: the need for adequate disclosure, Management’s interest in financial statements.
• The Accounting Cycle: Capturing Economic Events: The role of accounting records: Ledger, The use of accounts, Debit and Credit entries, Double entry accounting, and Recording transactions in ledger accounts: Examples and case studies.
• The Journal: Posting journal entries to the ledger accounts: Net Income: revenue, expense, the accrual basis of accounting, debit and credit rules for revenue and expense, investments and withdrawals by the owner : Illustrations
• The Accounting cycle, the trial balance, uses and limitations of trial balance, Adjusting Entries: a step in accounting cycle, preparing financial statements: The income statement, the statement of owner’s equity, the balance sheet, the statement of cash flows, closes temporary equity accounts, after closing trial balance.
• Adjusting entries: Types of adjusting entries, adjusting entries and accounting principles, the concept of materiality, effects of adjusting entries, drafting notes that accompany financial statements, the work sheet, uses of work sheet.
• Accounting for Merchandising Activities: Merchandising companies, the operating cycle of a merchandising company, income statement, what accounting information does a merchandising company need, General Ledger accounts, and Subsidiary ledgers.
• Approaches used in accounting for merchandising transactions: Perpetual inventory systems, periodic inventory systems, Transactions related to purchases: credit terms and cash discounts, transactions related to sales: sales returns and allowances, sales discounts delivery expenses, accounting for sales taxes
• Introduction to Peachtree Software (Service Industries)
Introduce students accounting fundamentals with a view to understand the technicalities of the accounting cycle. Develop an understanding of the financial statements and their analysis. Illustrate how the information needed by the users of accounting information could be gleaned from the financial statements. Develop a broad overview of the subject.
Course Learning Outcomes
After the completion of this course the students will be able to
• Understand the basic principles of both financial accounting and management accounting and their applications.
• Acquire the knowledge and techniques which will assist students in the performance of both financial and management accountancy functions
in industry and commerce.
• Acquire the basic skills necessary for the pursuit of a recognized accountancy qualification.
Accounting information and its users
Financial Statements Assets, liabilities, owners’ expenses and revenue
Financial statements-Owners equity
Financial statement effect of transactions on accounting equations
financial statement – income statement
Financial statements – cash flow statements
Financial statements - forms of business organization
Debit and credit rule
Completing the accounting Cycle
Accounting for merchandising activities
Book Title : Accounting the Basis for Business Decision
Author : Walter Meigs and Robert Meigs
Edition : 15
Publisher : McGraw-Hill, Inc.
Book Title : Business Accounting 1
Author : Frank Wood
Edition : latest
Book Title : Accounting: an intuitive approach
Author : M. Arif and Sohail Afzal
Edition : latest
Publisher : Azeem Academy