Principles of Accounting 2 BSNE 1304

Course description:

This is the Second course in a sequence of courses dealing with the profession and practice of accounting. It illustrates inventory accounting,fraud concept, internal control, cash control, receivables, Account, property plant assets, natural resources and intangible assets. Petty cash, bank reconciliation statement, liabilities classification and the use of subsidiaryjournals and ledgers. It also provides a critical introduction to the ideas underlying accounting practice and issues associated with the usage and limitations of traditional financial reports. Also it explains, how to prepare a cash flow statement and changes in owners’ equity statement.

Course Aims:

  • To know how to evaluate inventory using different methods (FIFO, LIFO and Weighted average) and the effect of these methods on the cost of goods sold.
  • To know the fraud concept and the nature, principles and instrument of internal control, focusing in cash control.
  • To know how to prepare the reconciliation statement.
  • To know how to deal with accounts receivable, notes receivable and bad debit treatment.
  •  To know the nature of property plant assets, natural resources and intangible assets, depreciation, depletion and amortization. 
  • To know how to classify liabilities, accounts payable, notes payable, bonds and other components.
  • To know the nature, purpose and usage of subsidiary journals and ledgers.
  • To know  how to Prepare a statement of cash flows using indirect & direct method.

Course outcomes:

Upon completion of this course, the student should be able to:
  • Evaluate inventory using different methods (FIFO, LIFO and W.A.) and the effect of these methods on the cost of goods sold.
  • know the fraud concept and the nature, principles and instrument of internal control, focusing in cash control.
  • know how to prepare the reconciliation statement.
  • know how to deal with A/R, N/R and bad debit treatment.
  •  Know the nature of property plant assets, natural resources and intangible assets, depreciation, depletion and amortization. 
  • know how to classify liabilities, A/P, N/P, bonds and other components.
  • Know the nature, purpose and usage of subsidiary journals and ledgers.
  • know  how to Prepare a statement of cash flows using indirect & direct method.