SOLUSI UNIVERSITY
FACULTY OF BUSINESS
ACCOUNTING DEPARTMENT
ACCT 111 – Financial Accounting IA (3 CR)
COURSE OUTLINE
Course Description
Fundamental Concepts of Financial Accounting are examined. Emphasis is placed on understanding the accounting cycle, the content and preparation of financial statements for sole proprietorship. An introduction to partnership and companies accounts will be looked at. Other topics covered are internal control, accounting for cash, short-term investments, receivables, inventories and property, plant and equipment.
Course Objectives
Upon completion of this course the student should be able to:
- Describe the function of accounting and the nature and purpose of the information.
- List the fields of accounting and the activities carried on in each field.
- Describe the information contained in financial statements of a business and be able to prepare simple financial statements.
- Describe the nature of the events that are recorded in accounting and the importance of the business papers in recording those events.
- State the rules of debit and credit and use those rules to analyze transactions and show their effects on the accounts.
- Explain why the life of the business is divided into accounting periods.
- Explain why adjustments are required by the revenue recognition and matching principles and why accrual basis of accounting is preferred over cash basis accounting.
- Analyze and record transactions that involve the purchase and resale of merchandise.
- Explain the nature of each item entering into calculation of cost of goods sold and gross profit from sales.
- Explain why internal control procedures are needed in a large organization and state the broad principles of internal control.
- Prepare entries to account for transactions with credit customers, including accounting for bad debts.
- Calculate the cost of inventory based on FIFO, LIFO and AVCO and explain the financial statement effects of choosing one method over the other.
- Describe the differences between plant assets and other kinds of assets.
- To calculate the cost of plant assets, depreciation using different methods and account for the sale of plant assets.
Course Procedures And Requirements
1. Each session to begin with a devotion and prayer.
2. All students are encouraged to participate during devotion eg by giving testimonies or short sermons that will encourage other students.
3. As stewards of time students are expected to be punctual in all classes and are expected to submit their assignments as they fall due. NO LATE WORK WILL BE ACCEPTED
4. Effort and involvement are as essential for learning as they are for success in your career. To help assure your success, participation in all activities of this course is expected. Your program will identify any specific requirements applicable to this class and delivery method.
5. Each student is encouraged to participate in the class activities meaningfully.
6. Students are encouraged to work in small groups, but should refrain from duplicating or photocopying other student’s work. All assignments must reflect each student’s work and ingenuity. Academic dishonesty is considered to be an extremely serious academic offence.
Course Content
1. An Introduction to Business, Accounting and Ethics:
1.1 Definition and Object Of Accountancy 1.2 Users of Accounting Information
1.3 Difference between Accounting and Bookkeeping
1.4 Types of Accountants 1.5 Fields of Accounting
1.6 Legal Forms of Business Organization
1.7 Types of Financial Statements
1.8 Framework for the Preparation and Presentation of Financial Statements
1.9 Qualitative Characteristics of Financial Statements
1.10The Elements of Financial Statements
1.11 Purpose of Financial Statements
2. Accounting Principles And Standards
2.1 GAAP
2.2 IAS
2.3 IFRS
3. Recording Accounting Transactions
3.1 Accounting Equation
3.2 Types of Accounts
3.3 Rules of Debit & Credit
3.4 Source Documents
3.5 Analyzing Transactions
3.6 Recording Transactions
3.7 Posting to Ledger (T – Accounts)
3.8 Balancing the Accounts
3.9 Preparing Trial Balance
3.10 Rectifying the Erroneous Entries
3.11 Journalizing Adjustment Entries
3.12 Preparing Adjusted Trial Balance
4 Financial Statements Preparation And Presentation (IAS 1)
4.1 Statement of Financial Position
4.2 Statement of Profit or Loss and other Comprehensive Income
4.3 Adjusting the Accounts and Preparing the Statements
4.4 The Worksheet and Closing the Accounts of Proprietorship
4.5 Accounting for a Merchandising Concern
5 Internal Control and Accounting for Cash
5.1 Define Liquidity, Cash and Cash Equivalents.
5.2 State the Principles of Internal Control.
5.3 Describe Internal Control Procedures Used to Protect Cash Receipts and Cash Disbursements.
5.4 Record Petty Cash Fund Transactions.
5.5 Prepare Bank Reconciliation.
6 Accounting for Inventories (IAS 2)
6.1 The Basics of Inventory
6.2 Inventory Accounting Systems
6.3 Inventory Valuation Methods – FIFO, AVCO
6.4 Accounting for Inventory
6.5Inventory and Its Impact on Financial Statements.
7 Accounting for Property Plant and Equipment (IAS 16)
7.1 Understand Plant Assets
7.2 Determine the Cost of Plant Assets
7.3 The Basic Concepts of Depreciation
7.4 The Methods of Depreciation
7.5 Accounting for Depreciation
7.6 Depreciation and Its Impact on Financial Statements
Textbook
Larson, K.D. & Jenson, T. (2013). Fundamental Accounting Principles, Volume 1 (14th Canadian ed.). McGrawHill
Wood, Frank (2008), Business Accounting 1 (11th ed.) , Harlow: UK.
Examination & Grading System
The final grade will be determined as follows:
Quizzes & Tests 15%
Mid-term Exam 30%
Assignments 5%
Final Exam 50%
Total 100%
The following cut-offs are established to assign the final letter grade:
The grading scale will be as follows:
|
Letter Grade |
Percentage Grade |
Grade Points |
|
A |
90 – 100 |
12.00 |
|
A- |
80 – 89 |
11.01 |
|
B+ |
75 – 79 |
9.99 |
|
B |
70 – 74 |
9.00 |
|
B- |
65 – 69 |
8.01 |
|
C+ |
60 – 64 |
6.99 |
|
C |
50 – 59 |
6.00 |
|
D |
45 – 49 |
3.00 |
|
F |
0 - 44 |
0.00 |
- Lecturer: Bhekimpi Ndiweni