Financial Accounting II : Syllabus For BBA

ACC 102.3 (Credit hours 3)

 

Financial Accounting II

BBA, First Year, Second Semester

Course Objective

This course aims to equip students with the knowledge and skill in handling financial accounting system. Specifically it aims to acquaint students with the

• Recording, accounting, valuation and disclosure in the financial statements of the inventories and the cost of goods sold;
• Accounting and disclosure of cash, cash equivalents and receivables;
• Accounting and disclosure of non-current assets and liabilities;
• Accounting and disclosure of current liabilities; and
• Accounting and presentation of owners' equity and dividends.

Course Contents:                                                                                                                                                               

               

1.    Accounting for Inventories and Cost of Goods Sold                                                               8 hours

The nature of inventory; cost of goods sold model; inventory valuation and income measurement; inventory costing methods; choice of a method; methods of inventory estimation; effect of inventory valuation method on the cost of goods sold; disclosure in the financial statements.

2.    Accounting for Cash, Cash Equivalent and Receivables                                                        8 hours

 Cash and cash equivalent: components of cash and cash equivalents; preparation of the bank reconciliation statement and the need for adjustments to accounting records; petty cash, balance sheet presentation cash and cash equivalent; accounts receivable: valuation of accounts receivables, methods to account for uncollectible amount, balance sheet presentation; notes receivable: interest bearing notes, non-interest bearing notes, presentation of the notes receivable and related aspects in the financial statements.

3      Accounting for Non-current Assets                                                                                        11 hours

Concepts of capital, revenue and deferred revenue expenditure; types of operating assets; acquisition of operating assets and the capitalization process; depreciation: concepts, methods and accounting( straight line and diminishing balance method including accelerated depreciation method), disposal of assets and accounting for gains and loses; disclosure in the financial statements.

4       Accounting for current Liabilities                                                                                            5 hours

         Accounts payable; notes payable and other current liabilities; balance sheet presentation.

5       Accounting for Non-current liabilities                                                                                    9 hours

Bonds payable: issuance of bonds, characteristics of bonds, factors affecting bond price, premium or discount on issuance of bonds, bond amortization, redemption of bonds, disclosure in financial statements. Accounting for leases: Operating and financial lease; balance sheet of presentation

6       Accounting for Stockholders' Equity and Dividends                                                              7 hours

 Stockholders' Equity: components of the stockholders' equity section of the balance sheet; stocks: types of stock, issuance of stock, stock issued for cash and non-cash consideration and on a subscription basis, treasury stock, retirement of a stock; presentation in the financial statements; dividends: meaning and types of dividend-cash dividend, cash dividend for ordinary stock and preferred stock; stock dividend and stock split, disclosure in financial statements.