Principles of Accounting 1 BSNE 1303

Course description:

This is the First course in a sequence of courses dealing with the profession and practice of accounting. This includes the concept of accounting, accounting principles, ethics and assumptions, accounting equation, recording, posting and summarizing and communication of financial information related to business transactions, based in double entry system under both perpetual and periodic system. The measurement of business income (revenues and expenses) and financial position (assets, liabilities and equities), completion of accounting cycle and preparing basic financial statements. Emphasis is placed on financial reporting for decision-makers inside the organization according to IFRS. 

Course Aims:

  • To know the accounting concept, accounting equation, principles, assumptions and ethics, and the double entry system approach.
  • To know how to journalizetransactions, posting them to the ledger and realizing the book keeping process for merchandising, service and industrial transactions under perpetual and periodic Inventory system.
  • To know how to prepare trial balance.
  • To know how to adjust accounts and to prepare adjusted trial balance.
  • To know how to complete the steps of accounting cycle.
  • To know how to prepare basic financial statements (Income Statement, Income Summary and Financial Position Statement).

Course outcomes:

Upon completion of this course, the student should be able to:
  • Understand the nature and purpose of accounting.
  • Understand accounting main assumptions and principles and accounting equation.
  • Classify accounts and use double entry system.
  • Journalize transaction according to perpetual and periodic systems.
  • Posting transactions from journal to ledger and prepare Trial Balance.
  • Making the necessary adjustments for revenues and expenses to measure the income of the period and preparing the adjusted Trial Balance.
  • Complete the accounting Cycle and closing entries.
  • Prepare basic financial Statements.