Principles of Accounting

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This course introduces students to the fundamental principles of accounting, with a focus on its role in business decision-making. It covers the full accounting cycle, from journal entries and ledgers to trial balances and financial statement preparation.

Key topics include the classification of accounts, the accounting equation, bank reconciliation, cash books, adjusted entries, and the closing process. Special emphasis is placed on accounting for sole proprietorships, where students will explore the unique aspects of financial reporting for this type of business, such as owner’s equity and withdrawals.

Students will also learn to apply Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS) in preparing and analyzing financial statements. By the end of the course, students will be equipped with the knowledge and skills necessary to accurately prepare and interpret financial information across various business contexts.

Course Details

Instructor

Course Catagory

Duration

48 Hours

Type

Self Guided

Course Plan

Course Objectives

1. To introduce fundamental concepts of accounting and their application in business decision-making.

2. To provide an understanding of the types of accounts and the accounting equation within the framework of financial reporting.

3. To equip learners with the skills to complete the accounting cycle, from journal entries to the preparation of financial statements.

4. To enable learners to comprehend and apply the mechanics of recording transactions in journals, ledgers, and trial balances.

5. To develop the ability to reconcile bank statements and maintain accurate cash records, including various types of cash books.

6. To familiarize learners with Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), and International Financial Reporting Standards (IFRS).

7. To provide practical exposure to financial statement preparation and analysis through examples from real-world company annual reports.

Program Learning Outcomes (PLO)

The Accountancy Knowledge platform aims to provide a strong foundation in accounting and finance, equipping learners with essential knowledge and practical skills. Upon completing the courses offered by the website, learners will be able to:

1. Master Core Concepts
Understand and apply fundamental principles of accounting and finance, including cost analysis, budgeting, and financial reporting.

2. Analyze and Interpret Financial Data
Develop the ability to critically analyze and interpret financial statements and data to support informed decision-making.

3. Solve Real-World Problems
Employ accounting and finance techniques to address practical business challenges effectively.

4. Foster Ethical and Professional Practices
Integrate ethical principles and professional standards into accounting and financial activities.

5. Prepare for Advanced Learning and Roles
Build a solid academic and practical foundation to excel in further studies or professional roles in accounting and finance.

Course Learning Outcomes (CLO)

After successfully completing this course, the students will be able to:

CLO #1       Demonstrate a clear understanding of accounting principles and their significance in business operations.

CLO #2       Analyze and categorize different types of accounts, applying the accounting equation effectively in practice.

CLO #3       Accurately complete the accounting cycle, including journalizing, posting to ledgers, and preparing trial balances.

CLO #4       Reconcile bank statements and manage various cash book formats to ensure accurate financial record-keeping.

CLO #5       Apply adjusting entries and prepare adjusted trial balances, demonstrating proficiency in closing and worksheet.

CLO #6       Interpret and apply key principles from GAAP, IAS, and IFRS in the preparation of financial reports.

CLO #7       Construct and evaluate financial statements, with a cost of goods sold and, using practical examples sole proprietor business.

Recommended Books

Fundamentals of Financial Accounting, Study Text CIMA

Financial Accounting, Study Text ACCA paper F3

Horngren, C. T., Sundem, L. G., Elliott, J. A., & Philbrick, D. R. (2014). Introduction to Financial Accounting (11th ed.). Pearson Education, Inc.

Albrecht, W. S., Stice, E. K., & Stice, J. D. (2011). Financial Accounting – Concepts and Application (11th ed.). South-Western, Cengage Learning.

Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial Accounting – Tools for Business Decision Making (6th ed.). John Wiley & Sons, Inc.

Wood, F., & Sangster, A. (2005). Business Accounting 1 (10th ed.). Pearson Education Limited.

Pre-requisite

The Principles of Accounting course offered by Accountancy Knowledge is designed for individuals at the foundational level of accounting education. While the course does not require prior in-depth knowledge of accounting.

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