COURSE OUTLINE & DESCRIPTION OF PRINCIPLES OF

FINANCIAL ACCOUNTING BUSN 101

Instructor

: Bilal Hussain

Office No
Semester
Course
Contact
Room

: E-111
: Spring 2011
: BUSN 101
: bilalhussainawan@hotmail.com
: E-105

INTRODUCTION:
This course presents the fundamentals of financial accounting theory and practice at the
introductory level. It considers basic accounting principles, their application in modern
business organizations and the preparation of business records and financial statements.
LEARNING OUTCOME:
Accounting plays a vital role as an information system for monitoring, problem solving
and decision-making. However, the first step is to generate and present information in a
manner that is useful. Students should be able to do the following at the completion of
this course:
Remember, recognize and understand different accounting terminologies and
principles
Apply course knowledge to solve practical problems
Demonstrate team work in preparing and solving complex problems
Able to link the theoretical accounting knowledge to the practical field
Develop confidence in their ability to read and understand professional
accounting in their field
Should become self directed learners
COURSE OBJECTIVE:
In recognition of above, the principles of financial accounting course focuses on the
record-keeping and financial statement preparation process. On completion of the course,
students should:
Understand what business is and describe common types of businesses
Explain why accounts are used to record effects of transactions including
analyzing and summarizing the financial statement effects of transactions
Explain how matching concept relates to accrual basis of accounting and purpose
of adjusting entries
Understanding of seven basic steps of accounting cycle and how to prepare
financial statements from worksheet

An understanding of manual and computerized accounting system that uses

different subsidiary ledgers and journals
REVIEW PROBLEMS AND STUDENT RESPONSIBILITIES:
To do well in this course, as with any other accounting course, it is necessary to work out
as many problems as you can. In addition to the problems covered in class and the
demonstration problems included at the end of each chapter of the text, you should, as a
minimum, answer the questions for each chapter that have assigned as homework. These
problems will test your understanding of the material. You should expect to spend 7 to 10
hours per week on this course. You are responsible for all readings indicated on the
course schedule and all chapter material identified on the topical emphasis outline,
regardless if these topics are discussed in class. Because of time constraints, it will be
impossible to cover all chapter material in class. Class time will be spent on what the
instructor considers the most important and difficult material.
QUIZZES AND ASSIGNMENTS:
Both surprise and announced quizzes may be taken so be prepared at all times. Missed
quiz or assignment will not be retaken or accepted late. Dates for mid term and final
exams will be announced.
ATTENDANCE:
Class attendance is essential to the successful completion of BUS 101 and attendance is
expected of all students enrolled in the course. Students who do not attend class
jeopardize both their learning and the learning of other students in the course. Students
who miss more than a total of two classes may be dropped from the course or precluded
from giving the final examination and thereby from passing BUS 101. Missing more than
5 minutes after the start of class or before the end of class may be counted as an absence.
TEACHING METHODOLOGY:
The method of teaching will include lectures, quizzes, assignments, mid-term and final
examinations.
GRADING:
The following weight-age will be used for grading purposes. Detailed grading system is
provided on page 31 of student handbook.
Category
Quizzes and assignments
Class participation
Mid-term Exam
Final Exam

Weight (%age)
25%
5%
30%
40%
100%

RECOMMENDED READINGS:
Text Book
Accounting - Warren Reeve Fess, Edition 22
Business Accounting I Frank Wood, Edition 10
Other Readings
Modern Accounting Mukherjee, Volume 1

COURSE OUTLINE:
Topic I:
No. of Sessions:

Introduction to Accounting and Business.

2

Topic II:
Analyzing transactions
No. of sessions:
3
Topic III:
Matching concept and adjusting process.
No. of sessions:
5
Topic IV:
Completing the accounting cycle.
No. of sessions:
3
Topic V:
Accounting systems and internal controls.
No. of sessions:
2
Topic VI:
No. of sessions:

Accounting for merchandising business.

4

Topic VII:
No. of sessions:

Financial Assets
3

Topic VIII:
No. of sessions:

Inventories and Cost of goods sold

3

COURSE DESCRIPTION:
Topic I:
Introduction to Accounting and Business.
Meaning, Functions and Sub fields of Accounting
Accounting Cycle
Accounting Principles- Concepts & Conventions
Accounting Equation
Nature of Businesses
Role of Accounting in business
Topic II:
Analyzing transactions.
Analyzing transactions
Types of accounts
Rules of debit and credit
Recording transactions
Posting to ledger
Balancing the accounts
Preparing Trial Balance
Topic III:
Matching concept and adjusting process.
Rectifying the erroneous entries
Concept of deferrals and accruals
Concept of depreciation
Journalizing adjustment entries
Preparing Adjusted Trial Balance
Topic IV:
Completing the accounting cycle.
Passing the closing or transfer entries
Use of books of original entry
Preparing financial statements
Preparing the Work sheets

Topic V:
Accounting systems and internal controls
Manual system of accounting
Computerized accounting
Internal control system
Topic VI:
Accounting for merchandising business
Service business v/s merchandizing business
Describe the financial statements of merchandising business
Describe the accounting for sale, purchase, associated costs, taxes and discounts
Illustrate the dual nature of merchandising business
Understand the components of a merchandising company's income statement
Account for purchases and sales of merchandise in a perpetual inventory system
and Explain how a periodic inventory system operates
Discuss the factors to be considered in selecting an inventory system
Topic VII:
Financial Assets
Define financial assets and explain their valuation in the balance sheet
Describe the objectives of cash management and internal controls over cash
Prepare a bank reconciliation and explain its purpose
Describe how changes in the valuation of short-term investments are reported in
the balance sheet
Account for uncollectible receivables using the allowance and direct write-off
methods
Topic VIII:
Inventories and Cost of goods sold
In a perpetual inventory system, determine the cost of goods sold using (a)
specific identification, (b) average cost, (c) FIFO, and (d) LIFO. Discuss the
advantages and shortcomings of each method
Explain the need for taking a physical inventory
Record shrinkage losses and other year-end adjustments to inventory
In a periodic inventory system, determine the ending inventory and the cost of
goods sold using (a) specific identification, (b) average cost, (c) FIFO, and (d)
LIFO
Explain the effects on the income statement of errors in inventory valuation
Estimate the cost of goods sold and ending inventory by the gross profit method
and by the retail method