Fundamentals Of Accounting
This course introduces the nature of accounting, its basic principles, as well as the procedures involved in recording transactions. Topics covered include double entry recording, final accounts preparation, various components of financial statements, adjustments to the accounts, closing of accounts, documentation, book of accounts, bank reconciliation, accounting related to manufacturing, non trading, partnership and company accounts, and ratio analysis. It helps students develop and enhance the understanding of the theory and practice of financial accounting.
EXPECTED LEARNING OUTCOMES
By the end of the course unit students should be able to;
- Explain the basic accounting principles, concepts, bases, policies and standards.
- Discuss the basic accounting equation and explain the meaning of assets, liabilities and stockholders’ equity.
- Describe the nature and functions of double – entry book keeping and financial accounting.
- Identify and describe the major difference between accounting for companies and for sole proprietors.
- Prepare the final accounts for a limited company.
- Explain the nature of capital and revenue transactions.
- Analyze the effect on the final accounts the profit shown if revenue expenditure is wrongly treated as being capital expenditure, and vice versa.
- Calculate the main accounting ratios.
- Analyze financial statements using ratios.