Certificate of Financial Accounting 1

This course is to introduce accounting and double entry system of financial recording of various categories of organizations, including services organizations, merchandising organizations, non-profit organizations and manufacturing organizations. Use is made of electronic computer spreadsheets to solve financial accounting problems. Examine assumptions underlying the preparation of financial statements for external users. Development of skills is necessary to understand, discuss, analyze and write about accounting-related topics. Design as an introduction to accounting. No prior knowledge of accounting assumed.

1. COURSE OBJECTIVE

The objective of this course is to know about:

The introduction of accounting
Understanding of accounting equation
How to record the transaction in business
How to complete the accounting cycles
Prepare the financial statement for a company

2. LEARNING OUTCOME

After studying this course, students will be able to:

Know about what is accounting?
Understand accounting concept in business environment
Understanding accounting process
Understanding completing accounting Cycle
Prepare the financial statements for external and internal users
Understanding accounting for inventory
Understanding Accounting Information System (AIS)
Development of skills is necessary to understand, discuss, analyze and write about accounting-related topics

3. TEACHING-LEARNING STRATEGIES

AC101 course is full time and normally consists of 45 hours over the fifteen-week period, taking the form of 30 hours of lectures and 16 hours of practice exercise in class. The practice exercise will be conducted at the end of each chapter.

Study Materials

- Paper AC101, Financial Accounting 1, Study Text & Revision Kit, 2014

- Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, 2010 109^th Edition, “Accounting Principle”. John Wiley & Sons, Inc,

4. COURSE CONTENTS

Chapter 1: Introduction to Accounting

Learning Outcomes:

Explain what accounting is.
Identify the users and uses of accounting.
Understand why ethics is a fundamental business concept.
Explain generally accepted accounting principles and the cost principle.
Explain the monetary unit assumption and the economic entity assumption.
State the accounting equation, and define its components.
Analyze the effects of business transactions on the accounting equation.
Understand the four financial statements and how they are prepared.

Topics to be covered:

What Is Accounting?
Other Accounting Principles
The Basic Accounting Equation
Using the Accounting Equation

Chapter 2: Recording Business Transaction

Learning Outcomes:

Explain what an account is and how it helps in the recording process.
Define debits and credits and explain their use in recording business transactions.
Identify the basic steps in the recording process.
Explain what a journal is and how it helps in the recording process.
Explain what a ledger is and how it helps in the recording process.
Explain what posting is and how it helps in the recording process.
Prepare a trial balance and explain its purposes.
Understand the four financial statements and how they are prepared.

Topics to be covered:

The Account
Steps in the Recording Process
The Recording Process Illustrated
The Trial Balance

Chapter 3: Adjusting Entries Account and Prepare the Financial Statement

Learning Outcomes:

Explain the time period assumption.
Explain the accrual basis of accounting.
Explain the reasons for adjusting entries.
Identify the major types of adjusting entries.
Prepare adjusting entries for deferrals.
Prepare adjusting entries for accruals.
Describe the nature and purpose of an adjusted trial balance.

Topics to be covered:

Timing Issues
The Basics of Adjusting Entries
The Adjusted Trial Balance and Financial Statements

Chapter 4: Completing the Accounting Cycles

Learning Outcomes:

Prepare a worksheet.
Explain the process of closing the books.
Describe the content and purpose of a post-closing trial balance.
State the required steps in the accounting cycle.
Explain the approaches to preparing correcting entries.
Identify the sections of a classified balance sheet.

Topics to be covered:

Using a Worksheet
Closing the Books
Summary of the Accounting Cycle
The Classified Balance Sheet

Chapter 5: Accounting for Merchandising Operation

Learning Outcomes:

Identify the differences between service and merchandising companies.
Explain the recording of purchases under a perpetual inventory system.
Explain the recording of sales revenues under a perpetual inventory system.
Explain the steps in the accounting cycle for a merchandising company.
Distinguish between a multiple-step and a single-step income statement.
Explain the computation and importance of gross profit.

Topics to be covered:

Using a Worksheet
Recording Purchases of Merchandise
Recording Sales of Merchandise
Completing the Accounting Cycle
Forms of Financial Statements

Chapter 6: Inventory

Learning Outcomes:

Describe the steps in determining inventory quantities.
Explain the accounting for inventories and apply the inventory cost flow methods.
Explain the financial effects of the inventory cost flow assumptions.
Explain the lower-of-cost-or-market basis of accounting for inventories.
Indicate the effects of inventory errors on the financial statements.
Compute and interpret the inventory turnover ratio.

Topics to be covered:

Classifying Inventory
Determining Inventory Quantities
Inventory Costing
Inventory Errors
Statement Presentation and Analysis

Chapter 7: Accounting Information Systems

Learning Outcomes:

Identify the basic concepts of an accounting information system.
Describe the nature and purpose of a subsidiary ledger.
Explain how companies use special journals in journalizing.
Indicate how companies post a multi-column journal.

Topics to be covered:

Basic Concepts of Accounting Information Systems
Subsidiary Ledgers
Special Journals

Chapter 8: Fraud, Internal Control, and Cash

Learning Outcomes:

Define fraud and internal control.
Identify the principles of internal control activities.
Explain the applications of internal control principles to cash receipts.
Explain the applications of internal control principles to cash disbursements.
Describe the operation of a petty cash fund.
Indicate the control features of a bank account.
Prepare a bank reconciliation.
Explain the reporting of cash.

Topics to be covered:

Fraud and Internal Control
Cash Controls
Control Features: Use of a Bank
Reporting Cash

Chapter 9: Accounting for Receivable

Learning Outcomes:

Identify the different types of receivables.
Explain how companies recognize accounts receivable.
Distinguish between the methods and bases companies use to value accounts receivable.
Describe the entries to record the disposition of accounts receivable.
Compute the maturity date of and interest on notes receivable.
Explain how companies recognize notes receivable.
Describe how companies value notes receivable.
Describe the entries to record the disposition of notes receivable.
Explain the statement presentation and analysis of receivables.

Topics to be covered: