Financial Accounting-II

Basic Information
Course Title: Financial Accounting-II
Course Code: COM-302
Course credits/week: Theory: 03 Lab: Nil Total: 03
Financial Accounting-I
Pre-requisite(s):

Co-requisite(s):
Program(s) on which the course is given: BBA 2nd
Is the course major or minor element of the program: Major: Minor:
Department offering the program: Lyallpur Business School
Department offering the course: Finance Division
Academic year/level: 1
Revision #:
Last revised on (date):
Weekly Course Objectives

Week Chapter Topic


st
1 What are Accounting and Finance
 Objectives and Functions of Accounting
 Branches of Accounting
Introduction to  Basic Accounting Concepts
Accounting and  Accounting Convention
Finance  Accounting Process
 Users of Accounting Information
 Key characteristics of Accounting Information
 Accounting as an Information System
2nd  Purpose of Accounting
 Types of Accounting Information used in Business
Community
 Difference between Financial Accounting and
Management Accounting
Accounting: The  Financial Reporting Process
Language of  Financial Statements: The Starting Point in the
Business Study of Accounting
3rd  Balance Sheet: Assets, Liabilities & Owner’s
Equity
 The Accounting Equation
 Forms of Business Organizations
 Use of Financial Statements by Outsiders
4th  Need for Recognized Accounting Standard
 GAAP
 Accounting Entity Concept
Accounting  Going-Concern Assumption
Concepts,  Objectivity Principle
Professional  Cost Principle
Judgment and  Realization Principle
Ethical Conduct  Matching Principle
 Consistency Principle
 Disclosure Principle
 Materiality Concept
5th  Income Statement of Merchandising Companies
Accounting for  Accounting Information Needed by Merchandising
Merchandising Companies
Activities;  General Ledger Account
Classified  Subsidiary Ledger
6th Financial  Two Approaches used in Accounting for
Statements Merchandising Transactions
 Perpetual Inventory System
  Periodic Inventory System
7th  Specialized Types of Merchandising Transactions
 Classified Balance Sheet
 Classified Income Statements
 Single and Multiple Step Income Statement
 Exercise and Problems
8th Fixed Assets and  Depreciation
Depreciation  Methods of Charging Depreciation
 Exercise
9th MID TERM EXAMS
 Determining Company’s Information Need
 Cost of Producing Accounting Information
10th  Basic Function of Accounting System
Accounting  Design of Accounting Systems
Systems, Internal  Classifying and Storing Data in Accounting System
Control and  Difference between Manual and Computer-Based
Audits Accounting Systems
11th  Relationship between Accounting System and
Internal Control Structure
 Accounting Controls and Administrative Controls
 Uncollectible Accounts
 Allowance for Doubtful Accounts
12th  Management of Accounts Receivable
Account  Factoring Accounts Receivable

th Receivable and
13 Nature of Interest
Notes Receivable  Accounting for Notes Receivable
 Evaluating the Quality of Notes and Account
Receivable
 Exercise and Problems
14th  Inventory Defined
 Flow of Inventory Costs
 Cost Flow Assumptions
 Average-Cost Method
 FIFO
Inventories and
 LIFO
Cost of Goods
 Evaluation of Methods
Sold
15th  Principle of Consistency
 Just-in-Time (JIT) Inventory Systems
 LCM
 Periodic Inventory Systems
 Importance of Accurate Valuation of Inventory
16th  Techniques for Estimating Cost of Goods Sold and
Ending Inventory
 Gross Profit Method
 Retail Method
 Inventory Management
 Evaluating Liquidity of Inventory
 Affect of Accounting Methods on Financial
Statement Subtotals and Analytical Ratios
PROJECT / PRESENTATION

Make-up Class, if needed / Revision Session

END TERM EXAMINATION

Required Learning Resources

Meigs R. F. and Meigs W. B., “Accounting: The Basis for
TextBook(s):
Business Decisions” 13th Edition or Latest, McGraw-Hill,
Inc.
1. Eric G. Flamholtz, Diana Troik Flamholtz, Michael
Reference Book(s):
A.Diamond: Principle of Accounting, Macmillan
Publishing Co. New York
2. Frankwood, Business Accounting-I and Business
Accounting-II
3. Simon and Karren Brock: Intermediate Accounting

Facilities Required for Teaching and Learning

White Board / Multimedia (In case of Physical Classes)
Zoom Online Meetings (In case of Online classes)