DAC 111 Course Outline PDF

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DAC 111 Course Outline...

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UNIVERSITY OF NAIROBI SCHOOL OF BUSINESS DEPARTMENT OF FINANCE AND ACCOUNTING BACHELOR OF COMMERCE DEGREE PROGRAMME COURSE OUTLINE COURSE TITLE: COURSE CODE: LECTURER: SEMESTER: A:

FUNDAMENTALS OF FINANCIAL ACCOUNTING I DAC 111 ABDULLATIF ESSAJEE MARCH-JUNE 2021

COURSE OBJECTIVE The objective of the course is to introduce students to the study of accounting which is also known as the language of business. The course is aimed at providing students with exposure to the nature, purposes and methodology of accounting as well as the uses of business accounting information by external decision makers. The course shall focus on developing students’ understanding of the effect of business transactions and events on the elements of financial statements. This exposure builds a firm base for all subsequent courses in accounting and finance.

B.

COURSE CONTENT TOPIC

DESCRIPTION

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INTRODUCTION TO ACCOUNTING  Business goals and activities  Nature, scope and purpose of accounting  Accounting as an information system  Users of accounting information  Specialisations of accounting

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FINANCIAL STATEMENTS AND ACCOUNTING TRANSACTIONS  Forms of business organisations  Financial statements of business organizations  Elements of financial statements  Fundamental accounting assumptions, the generally accepted accounting principles and constraints  The accounting equation.  Transactions analysis and the accounting equation

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RECORDING BUSINESS TRANSACTIONS  Accounts and the chart of accounts  The double-entry system of record keeping  An overview of the Accounting cycle  Recording, classifying and summarizing business transactions: :Analyzing transactions :Journalizing transactions :Posting transactions to the ledger :Preparing the unadjusted trial balance

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ADJUSTING ACCOUNTS AND PREPARING FINANCIAL STATEMENTS  Accrual basis accounting Versus Cash-basis accounting  The need for adjusting entries  Types of adjusting entries :Deferred expenses :Deferred revenues :Accrued expenses :Accrued revenues  Adjusting accounts :Journalizing and posting adjusting entries :Preparing the adjusted trial balance :Preparing financial statements from the adjusted trial balance

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COMPLETING THE ACCOUNTING CYCLE  The need for closing entries  Journalizing and posting closing entries  Preparing a post closing trial balance

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ACCOUNTING FOR MECHANDISING BUSINESSES  Nature of merchandising businesses  Inventory systems.  Accounting for merchandise purchases - Periodic Inventory System  Accounting for merchandise sales – Periodic Inventory System  The trial balance of a merchandising firm  Financial statements of a merchandizing business  Closing entries for a merchandising business.

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D:

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ACCOUNTING FOR CASH AND INTERNAL CONTROLS  Purpose and principles of internal control  Nature of cash and importance of controls over cash  Controls over cash receipts and disbursements  Bank statements and bank reconciliation  Petty cash fund  Reporting cash on the Statement of Financial Position.

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ACCOUNTING FOR RECIEVABLES  Types of receivables  Recognising accounts receivable  Valuing accounts receivable  Reporting accounts receivable

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ACCOUNTING FOR LONG-LIVED ASSETS.  Types of long-lived Assets  Determining the cost of property, plant and equipment.  Accounting for the utilization of plant asset (depreciation)  Accounting for post - acquisition expenditures  Accounting for plant asset disposals  Reporting of property, plant and equipment

COURSE TEXT Jan R. Williams, Susan F. Haka, Mark S. Bettner and Joseph V. Carcello, Financial and Managerial Accounting: The Basis for Business Decisions, McGraw-Hill Education, New York 18th Edition, 2018.

E.

F.

RECOMMENDED TEXTBOOKS 1.

Libby R, Libby P & Hodge F, Financial Accounting, McGraw-Hill Education, 10th Edition, 2019.

2.

John J. Wild, Ken W. Shaw and Barbara Chiappeta, Fundamental Accounting Principles. McGraw-Hill/Irwin, New York, 23rd Edition, 2017

3.

Christopher T. Edmonds, Thomas P. Edmonds, Frances M. McNair, and Olds, Fundamental Financial Accounting Concepts, McGraw Hill Education, 10th Edition, 2019

TEACHING METHODOLOGY

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The course will be conducted mainly by way of lectures and class discussions.

G.

COURSE EVALUATION The student will be evaluated on the basis of the following: Assignments and quizzes Continuous Assessment Tests (2) Total course-work Final examination Total marks

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