Introduction to Financial

Accounting
BAAC-1203

Program Associate Degree in Computer Science

Credit Hours 3

Duration 16 Weeks / 32 sessions

Prerequisites N/A
Course Introduction

This introductory course covers basic skills required in maintaining accounts of an organizations
and in communicating information to the stakeholders about the business by producing financial
statements. It includes recording of business transactions maintaining accounts, recording
adjusting entries, managing receivables, inventories and reporting changes in the shareholders’
equity. It also covers the whole accounting cycle by using accounting software. The basic
understanding and reasons of all financial statements are covered in the course. It prepares the
students for advance courses in managerial accounting and finance.

Course Objective

This course will help students to:

 Provide the students with the fundamental principles of accounting and the basics of the
accounting cycle.
 Provide a basic understanding of IASs and IFRSs, US GAAP and their application.
 Show how financial statements of a business entity are prepared.
 Give a basic understanding of an accounting software.

Learning Outcomes

By the end of the course, students should be able to:

 Understand both accounting principles and the steps of the complete accounting cycle.
 Verify the recording and valuing of certain assets and liabilities of the financial
statements.
 Assess the shareholder’s equity section and its impact on financial statement.
 Read the financial statements of a business entity.
 Create an organizational profile, various accounting reports and the financial statements
through an accounting software.

Violation of Academic Honesty Policy:

If the instructor receives any two projects / assignments that are identical or partially identical
(including spreadsheets), both cases will receive a zero. If the student violates the Academic
Honesty policy for a second time, he/she will receive an “F” grade for the course.

How to Keep Your Professor Happy:

Class attendance is mandatory. You may miss up to 6 class sessions. On the seventh absence,
you will be withdrawn from the course. As a courtesy to the instructor and other students, be
prepared to arrive at class and be in your seat on time. In addition, please note that each class
lasts for 90 minutes.
Also keep in mind some general rules as given below:
 Cell phones should be powered off.
 Eatables are not allowed in the class.
 The teacher will not tolerate any disruptive behavior in the class.
 The Dress Code has to be observed, no warnings will be given, and violators will be
asked politely to leave the class and consequently will be marked absent.
Participation:
Students are required to attend all classes and read all the assigned material in advance of class
(although not necessarily with perfect comprehension). Advanced preparation and class
participation are crucial for periods in which we discuss cases. During discussion sessions, the
instructor generally keeps track of the insightful and useful comments students make. (any
unproductive contribution is not rewarded.

Text Books
1. Introduction to Financial Accounting by Horngren, Sudem, Elliot and Phil brick , 9th edition,
Published by Pearson Education (Year: 2006)
2. Financial Accounting by Williams, Bettner and Hakka , 12th edition, Published by McGraw Hill

Reference Books
3. Financial Accounting by Kimmel, Weygandt, Kieso , 7th edition, Published by Wiley

Assessment Criteria

Exam Type Percentage (%)

Quizzes 10

Assignments 10

Other 5

CP 5

Mid Term 30

Final Term 40

Total points 100

 CALENDER OF ACTIVITIES-ADP

Weeks Contents Activities

 Business entity & going concern concept. International

standards. Accounting as an information system. The
1 stakeholders of this information.
 Accounting Equation. Business transactions. Types of
accounts and rules of debit and credit.
 Development of chart of accounts.
2
 Recording entries in the journal.
 Practical exercises.
3  Posting journal entries to the ledger accounts.
Assignment-1
 Practical exercises.
4  Preparation of a two-column trial balance.
Quiz-1
 Accrual accounting vs. cash-based accounting.
 Adjusting entries to be recorded at the end of the
5
accounting period. Preparation on the adjusted trial
balance.

6  Practical exercises. (Completion of Accounting Cycle). Assignment-2

 Matching principle. Simple financial statements with

emphasis on statement of financial position (Balance
7-8 Sheet) and income statement. Introduction to IASB & Quiz-2
IFRS. Reading of Financial Statement of a listed
company.
MID TERM
9
 Inventory valuation: FIFO and LIFO under provision
10
IAS 2.
11-12  Accounting for a merchandising business: Sales return
& allowances, purchase return & allowance.
 Accounting for uncollectable accounts Assignment-3
Quiz-3
 Determination of cost of non-current assets under
provision of IAS 16
13
 Depreciation: Straight line depreciation and Declining
balance method.
 Practical exercises.
 Shareholder’s equity, common shares and preferred
14 Assignment-4
shares. Treasury shares.

 Additional paid in capital, reserves for dividend

15 stabilization and retained earnings. Kinds of dividends. Quiz-4
Equity per share.
 Practical exercises.
16  Practical training – QuickBooks accounting software
lab sessions. Project Presentation
17
FINAL TERM