SEMESTER 3

FINANCIAL ACCOUNTING
Course Code: BA 231
COURSE DESCRIPTION/OBJECTIVE
This course is built upon the Financial Accounting Course in the sense that it provides
advanced treatment of basic techniques learned in the first course of Financial
Accounting. It mainly focuses upon the company accounts and their understanding in
the context of the IAS and companies ordinance 1984.

LEARNING OUTCOMES
After studying this course the student will be able to understand:
1. The formation of companies and important financial statements (balance sheet,
income statement/profit and loss account, cash flow statement, statement of
owner equity) of Public Limited companies.
2. Exposer about company annual report and notes to the accounts.
3. The accounting for partnership and non-profit organizations.
4. The accounting for consolidated statements.
5. Accounting for leasing and fixed assets.

COURSE CONTENTS

Plant & equipment: Cost allocation, Depreciation, causes of depreciation, revision of

depreciation rates, capital expenditures & revenue expenditures, extraordinary repairs.

Plant & Equipment: Natural Resources, Intangible Assets: Disposal of assets, trade in
used assets on new, natural resources, intangible assets and deferred charges.

Accounting Principles & Concepts: Basic Objectives of Accounting, GAAP

Partnership: Meanings, establishment of partnership, admission and retirement, Profit and

loss distribution, Liquidation.

Corporation: Corporation, organization and stockholders equity, stock issuance,

Subscription of stock, Book Value per share,
Accounting for Bonds and Debentures, issuance of Bonds, redeemable Capital.

TEXT BOOK: Financial accounting by Meigs and Meigs (Latest edition

MACRO-ECONOMICS
COURSE CODE: ECON 232

COURSE DESCRIPTION
This course aims at giving students knowledge about the working of a mixed
economy at the aggregate level under pinning of aggregate out put and income
determination, key macro-economics problems and major policy debate. The basic
themes are extended to find out how the disciplines of national income, macro
economics in closed and open economy, macro economic stabilization policies,
macro-economic components (consumption, saving, private investment, interest
etc.), public finance, money and banking link up with conventional macroeconomics.
INDENTED LEARNING OUTCOME

At the end of this course, students will be able to:

6. To become familiar with and readily use economic terminology.
7. To learn about the analytical approach economists take to the problem of
scarcity.
8. To gain an intuitive understanding of macroeconomic theory and application.
9. To acquire better critical thinking skills through the analysis of present day
economic issues.
10. To provide a foundation for possible careers in business, government,
academic or other sectors.
11. To develop a conscious recognition of economics in the world around us.

COURSE CONTENT
KEY CONCEPTS OF MACROECONOMICS
 Objectives and instruments of macroeconomics.
Week 01,02  Tools of macroeconomics policy.
 Aggregate demand and supply.

MEASURING ECONOMIC ACTIVITY.

 Concepts of National Income.
 Measurement of National Income. GDP, NDP, GNP &
Week 03,04 NNP, Personal Income & Disposable Personal Income
 GDP Deflator and a real GDP
 National Income as a measure of economic welfare

CONSUMPTION AND INVESTMENT.

 Consumption, Income and saving.
 Consumption Function.
 Saving Function.
 The Marginal Propensity to Consume and Average
Week 05,06 Propensity to consume
 The Marginal Propensity to Save and Average
Propensity to save
 Determinants of Consumption
 Determinants of Investment (Rate of interest, MEC)

INCOME AND EMPLOYMENT DETERMINATION

 Classical approach.
Week 07,  Modern approach (Keynesian)
 Post Keynesian Approach
MULTIPLIER AND ACCELERATOR
 Investment Multiplier.
 Tax multiplier, foreign trade multiplier and super
Week 08,
multiplier.
 FISCAL AND MONETARY POLICIES
Week 09  Fiscal Policy
 Monetary Policy
INFLATION
 Nature and kinds.
Week 10,  Inflationary and deflationary gaps.
 Inflation and unemployment.

BUSINESS CYCLE
 The concept of Business Cycle
Week 11  Business Cycle Theories
 Business Cycle & Business Decision Making

INTERNATIONAL TRADE
 Classical theory of International trade (CIT)
 Modern theory of International trade (H-O-Theorem)
Week 12,13  Economic Integration and Regional Cooperation.
 Protection and free trade.
 WTO (Objectives and role)

BALANCE OF PAYMENTS
 Balance of Payments Accounts.
Week 14  Disequilibrium & Imbalance of Payments.
 Causes and Remedies.

Week 15 Project/Revision

TEXT/REFERENCE BOOKS
12. Dornbusch and Fischer Macroeconomics, McGraw Hill, New York. (Latest
Edition)
13. Mc Connell & Brue, Economic, Mc Graw Hill, INC (Latest Edition)
14. Muhammad Hussain Choudhry, Economic Theory Volume 2, Caravan Book
House, Lahore 2002.
15. Ruffin & Gregory, Principles of Economics, Scott, Foresman & Company.
16. Samuelson and Nordhaus, Economics, McGraw Hill, New York. (Latest
Edition)
BUSINESS STATISTICS
COURSE CODE: STAT233
Learning Objective
This course is designed to familiarize students with problems of statistics. Students will learn how to
display the data fairly, and how to recognize samples, statistics, and graphs that are misleading.
Ultimately, the goal is to provide students with quantitative tools that can be used in the areas of
marketing, financial & managerial accounting, corporate finance, research methods, operation research,
and total quality management.
Learning Outcomes
The students will acquire the knowledge about Basic Statistics and they will be able to calculate
some characteristics and to apply the knowledge in their respective areas of marketing, finance,
research methods, operation research, and total quality management.
Contents
Unit 1: Introduction to Statistics
Unit 2: Frequency Distribution & Graphs
Unit 3: Summarizing & Describing Numerical Data
Unit 4: Correlation
Unit 5: Regression
Unit 6: Time Series
Unit 7: Index Numbers
Unit 8: Basic Concepts of Probability
Unit 9: Conditional Probability
Recommended Readings
 Statistics, A Step by Step Approach by Bluman 4th or5th Edition.
 Statistics for Business & Economics, 6th Edition by Newbold.
 Statistics by Sher Muhammad Ch.
BUSINESS ETHICS AND LOGIC
COURSE CODE: BA 234
Learning Objectives
This course introduces contemporary and controversial ethical issues facing the business community.
Topics include moral reasoning, moral dilemmas, law and morality, equity, justice and fairness, ethical
standards, and moral development. Upon completion, students should be able to demonstrate an
understanding of their moral responsibilities and obligations as members of the workforce and society.
Learning Outcomes
For any kind of business/industry & institution the ethics are very vital to understand, that how its
implication is? In this course at the end, the learners will be able to make a successful Corporate Ethics
Programs for businesses or institutions. They also can comprehend the concepts of law of morality and
able to make the policies like whistle blowing & its implementation. As whole learner’s ability will be
built in national & international level regarding Ethical principles & policies for corporate level
businesses.
Contents
Ch 1: Ethics in Business
 Business Decision Making
 Ethics, Economics and Law
 Ethics and Management
Ch 2: Ethical Principles in Business
 Utilitarianism
 Rights, Virtue and Duties
 Justice and Fairness
Ch 3: Ethical Issues in Business
 Whistle Blowing, Whistle blowing policy of a company
 Privacy
 Discrimination
Ch 4: Ethics in Marketing
 Ethical issues in Marketing
 Ethical issues in Advertising
 Ethical issues in Product Safety
Ch 5: Ethics in Finance
 Financial services
 Financial markets
 Insider trading
 Hostile takeovers
Ch 6: Ethics and Corporations
 Corporate Social Responsibility
 Corporate governance
 Corporate Ethics Program
Ch 7: International Business Ethics
 Guidelines for Multinationals
  Wages and Working condition
 Cultural Differences
Recommended Readings
Manual G. Velasquez, “Business Ethics” Concepts & Cases International Edition Pearson Education, Inc
John R. Boatright, 4th edition “Ethics and the conduct of Business” International Edition Pearson
Education, Inc
HUMAN PSYCHOLOGY
COURSE CODE: BA 235

Course Objective:
Psychology is the scientific study of behavior and cognitive processes. Psychology is curious, interesting and
pragmatic. It attempts to comprehend human nature. The basic course in psychology will provide the basis for
the better comprehension of Management Sciences. Management is essentially getting things done from other
people and this is not possible without a deeper understanding of human behavior. The scope of psychology is
an ever-expanding phenomenon. Now psychological knowledge is applied to solve the problems of such
diverse areas as management, environment, business, education, industry, and other important fields. An
introductory and modern course in psychology will help the students to understand such applied and vital areas
as organizational behavior, human resource management, consumer behavior, marketing management,
advertising, and management in general. This course will also help the students to have a deeper understanding
of their own selves and also to cope with the environment pressures and to improve their quality of life. To
improve academic standard in this region through the generation, assimilation, and dissemination of
knowledge
· To make the students aware of recent trends in psychology
· To prepare people of this area to serve as intellectual resource base in this region.
· To enable the students to apply psychological knowledge for the economic and social betterment of
Pakistan
· To develop high quality professionals and behavioral scientists that are committed to pursuit of
excellence, and are endowed with vision, courage, and dedication

Course Contents:
· • Introduction to Psychology
Definition, applied fields, and goals of psychology
The rise of psychology as a science
Major trends in the development of psychology
· Research methods in psychology
Naturalistic observation
Experimental method
Survey and interview
Case study and focus group
Meta-analysis
• Biological basis of Behavior
Neural structure and synaptic transmission
Structure and functions of nervous system
Endocrine system
· Sensation
Sensory processing
Vision
Audition
· Perception
Antinational processes
Organizational processes in perception
Identification and recognition processes
· Learning and behavior
Classical conditioning
Operant conditioning
 Cognitive learning
Observational learning
· Memory

Sensory memory
Short-term memory
Learning and encoding in long-term memory
Remembering
· Motivation and Emotion
Definition and type of motives (primary, secondary, and general)
Basic emotions and culture
Theories of emotions
Functions of emotions
· Life-styles, stress, and health
Life-style choices and consequences
Healthy and unhealthy life-styles
Stress, causes, and effects of stress, and coping strategies
· Cognitive processes
Studying cognition
Language use
Visual cognition
Problem solving and reasoning
Judging and deciding
· Personality
Definition and assessment of personality
Psychodynamic, behavioristic, humanistic, and trait theory of personality
· Intelligence and assessment of intelligence
The origin of intelligence testing
IQ test
Theories of intelligence
The politics of intelligence
· Abnormal behaviour
Nature and causes of mental disorders
Brief introduction to classification and diagnosis of mental disorders
· Psychotherapy
Psychoanalysis and modern psychodynamic approach
Behaviour modification techniques
Cognitive and eidetic therapy
· Social psychology
Social cognition
Attitudes and their formation
Prejudice
Social influences and group behaviour
Interpersonal attraction and loving
· Lahey, Benjamin: Psychology. McGraw-Hill(Latest Edition)
· Feldman, Robert S.: Understanding Psychology McGraw Hill(Latest Edition)
· Gerow Josh, R.: Psychology and Introduction. Longman(Latest Edition)
· Carlson, Neil R. &Buskist, William: Psychology. Allyn and Bacon(Latest Edition)
· Zimbardo, Philip G. &Gerring, Richard J.:Psychology and Life. Harper Collin Publishers(Latest
Edition)
FUNDAMENTALS OF FINANCE
COURSE CODE: BA 236

Objective of the Course

Business Finance aim at imparting knowledge about the basic and tools of finance. It emphasizes the
importance of business finance. It deals with different types of loans extended by commercial banks and
financial institutions. The emphasize will remain on how to manage and utilize the funds for the smooth
running of business organization.

Introduction

 Definition of Finance
 Business, commerce & Trade
 Cash, Fund
 Sources of Business Finance
 Importance and need of Finance

Leverage

 Definition of leverage
 Operating leverage
 Financial leverage
 Total/combined leverage
 Degrees of operating leverage
 Degrees of financial leverage
 Degrees of combined leverage
 Break even analysis of all three types of leverage

Short term Financing

 Definition of Trade credit

 Meaning of trade credit
 Forms of trade credit
 Advantages of trade credit
 Terms of sales / Credit terms
 Determinants of credit terms
 Types of credit terms
 Cost of trade credit
Unsecured short term bank loans

 Meaning and definition of unsecured short term bank loans

 Features of unsecured short term bank loans
 Arrangements of unsecured short term bank loans
 Forms of unsecured short term bank loans
 Commercial papers
 Advantages and disadvantages of commercial papers
 Types of commercial papers

Secured short term bank loans

 Meaning and definition of secured short term bank loans

 Features of secured short term bank loans
 Forms / Types of secured short term bank loans
 Use of A/R as a collateral
 Use of Inventory as a collateral
 Methods of pledging inventory

Intermediate Term Loans / Term Loans

 Meaning and definition of Intermediate term loans

 Features of intermediate term loans
 Uses of term loans
 Advantages and disadvantages of term loans
 Sources of term loans
 Commercial Banks
 Insurance companies
 Finance companies
 Govt agencies
 Manufacturer & suppliers

Discussion and over view of the course

Lease Financing

 Meaning and definition of lease financing

 Features of lease financing
 Types of lease financing
 Operating / Service lease
  Financial / Capital lease
 Sales and lease back arrangement
 Direct lease
 Leveraged lease
 Advantages and disadvantage of lease financing

Long Term Financing

 Meaning and definition of long term debts

 Meaning of Financial markets
 Kinds of financial markets
 Investment Banking
 Process of investment Banking
 Functions of investment bankers

Tests and Quiz

Week---16
Presentations

Text: Class Material: Regarding Meanings, Process and Functions

Reference: Introduction to Financial Management by

Iqbal Mathur and class