AC – 101

 

Principles of Accounting, Part 1

This course provides an introduction to accounting, within the context of business and making business decisions. The learner explores the role of accounting information in the decision-making process and learns how to use various types of accounting information found in the different kinds of financial statements. This course starts with the introduction of accounting and its roles in business followed by how accounting information is communicated.  The learner is also acquainted with the current issues involving the accounting profession for better appreciation of the subject matter. The learner is then taught how accounting systems are used in accumulating accountable transactions of a business entity, both manual and computerized. Discussed are special journals, the voucher system, and simple bank reconciliation. During the first half of the course, the learner deals with transactions made by both service and merchandising oriented businesses, the difference in their accounts and how their financial statements are prepared. The second half of the semester deals with basic accounting concepts and practices applied for the different types of assets of a business entity.

3 units

 

None

 

 

 Horngren, Harrison and Bamber. Accounting, 6^th Edition. Pearson, Prentice Hall. 2005

Cabrera, Ledesma and Lupisan. Fundamentals of Accounting, Volume 1. Conanan Educational Supply., 2007

Warren, Reeve and Fess. Accounting, 21^st Edition. South-Western, 2005

J. Weygandt, D. Kieso, P. Kimmel. Accounting Principles, 7^th Edition. John Wiley & Sons, Inc., 2007

 

At the end of the course, the learner is expected:

 

Cognitive:

1. To be able to describe the nature, functions, scope and limitations of accounting, its major users and uses, its relationship to other discipline, and its professional status.

2. To develop basic skills in analyzing, recording, classifying and summarizing transactions of a single proprietorship engaged in service and merchandising business.

3. To have working knowledge of financial statements, their purposes and uses.

4. To understand the basic accounting principles, theories, and concepts, as they apply to specific accounts, like cash, receivables, payables, inventories and plant assets.

Psychomotor:

1. To be able to apply the basic accounting principles, theories and concepts, as they apply to specific accounts, like cash, receivables, payables, inventories and plant assets.

2. To be able to solve problems in a systematic way.

3. To efficiently operate accounting equipment such as calculator and computer as appropriate to the subject matter.

4. To be able to prepare in good form properly classified financial statements for single proprietorship engaged in service and merchandising business.

 

Affective:

1. To appreciate the need for the fair and reliable reporting of assets, liabilities, owner’s equity, revenue and expenses, as they affect the economic decision of statement users.

2. To appreciate the significance of the accounting to his/her personal life.

3. To appreciate internal control system, business documents and forms, their designs/ uses and relationships with accounting records and reports.

4. To appreciate the logic of double-entry bookkeeping, the nature and significance of each step in the accounting cycle.   

Quizzes, homework, research papers, major examinations

1 Notebook, Prescribed Textbook, Practice Set, sample financial reports of service/or merchandising companies

 

 

 

1-2

6

1. Role of accounting in business

2. Users of accounting information

3. Communication through financial statements

4. Definition, classification and examples of assets, liabilities, capital/owner’s equity, income, and expenses

5. Accounting concepts and principles

6. The accounting profession

7. Types of businesses according to operations

8. Types of businesses according to legal form

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

 

 

The appreciation of accounting as part of the business environment, the end products which are a business’ financial statements and the different elements present in each type of statement.

 

The appreciation for the need of a framework which serves as a guide for the practices in accounting and an appreciation of the fields in accounting and the different branches that forms it.

Social concern

Critical judgment

Truthfulness

Stewardship

Fairness

 

Quizzes

Seatwork

Homework

 

3

3

1. The role of an accounting system in business

2. Elements of an accounting system

· Procedures

· Accounting policies and standards

· Records and reports

· Double entry bookkeeping system

· Personnel

· Equipment and devices

3. Features of an effective accounting system

4. Limitations in using an accounting system

5. The accounting equation: the model used in the preparation of financial statements

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

 

The knowledge of how accounting systems function and how it helps in the preparation of financial statements.

 

The knowledge of how the elements in an accounting system form part in the accounting cycle/process, how it is used to provide users their information needs.

 

Appreciative

Systematic

 

Quizzes

Seatwork

Homework

 

4-8

15

1.  Recording Phase

· Identify transactions

· Journalize/Record

· Posting/Classifying

· Preparation of Trial Balance

2. Reporting Phase

3. Revenue/Receipt Cycle

4. Expenditure Cycle

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

Actual processing of accounting documents.

Exposure of learner to how it is practically done.

The ability to properly perform accounting/bookkeeping procedures in business by using an accounting system in which financial statements, in the end are to be prepared.

 

The understanding of the flow of documents used in the accounting/bookkeeping cycle.

 

The ability to perform accounting procedures in recording business transactions of a merchandising entity.

Appreciative

Systematic

 

Quizzes

Recording of Transactions

Preparation of financial statements

Performance of accounting procedures

9-10

6

1. Nature and classification

2. Inventory accounting systems

3. Inventory costing methods

a. Actual physical flow

· Specific identification

b. Assumed cost flow

· FIFO and Average

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

Actual processing of accounting documents.

Show to learner how it is practically done.

Knowledge of the nature and classification of inventory items.

 

The ability to properly account for inventory using perpetual and periodic inventory systems.

 

The ability to properly state the value of inventory in the financial statements of a business

 

Accuracy

Timeliness

Responsibility

Accountability

Fair judgment

Compliance with company policies

Systematic

Reasonable

Logical

Quizzes

Seatwork

Actual application of bookkeeping procedures

11-12

6

1. Internal Control

· Principles and limitations

· Internal controls for E-commerce

2. Accounting for Cash

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

problem solving

Preparation of bank reconciliation

The basic knowledge of principles and limitations of internal control.

 

The ability to prepare bank reconciliation and a petty cash count.

 

The knowledge of how to properly present cash in the financial statements.

 

Accuracy

Timeliness

Responsibility

Accountability

Fair judgment

Compliance with company policies

Systematic

Reasonable

Logical

Quizzes

Seatwork

Preparation of bank reconciliation

13-15

7.5

1. Accounts Receivable

b. Nature and classification

c. End of period valuation of receivables (bad debts)

·   Allowances

·   Write offs

d. Disposal of A/R

e. Credit card sales

2. Notes Receivable

a. Characteristics of Notes

b. Computation of interest income

c. Recognition and valuation

d. Disposal of notes

 

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

problem solving

The understanding of the nature and types of receivables in business.

 

The understanding of how receivables are valued at the end of every period.

 

The knowledge of how to manage receivables

Accuracy

Timeliness

Responsibility

Accountability

Fair judgment

Compliance with company policies

Systematic

Reasonable

Logical

Quizzes

Seatwork

Aging of receivables

Homework

15-17

7.5

1. Plant assets

a. Nature and Classification

b. Costing and Valuation

c. Disposal

2. Natural resources

3. Intangible assets

Lecture-Discussion

Recitation

Group/Team learning

PowerPoint presentations

problem solving

 

The understanding of the nature and uses of plant assets, natural resources and intangible assets in business.

 

The knowledge of how to properly account for these items in the financial statements.

 

The idea of how disposal/retirement of these items is reflected in the business’ records.

 

Accuracy

Timeliness

Responsibility

Accountability

Fair judgment

Compliance with company policies

Systematic

Reasonable

Logical

Quizzes

Seatwork

Homework

 

18

 

3

 FINAL EXAMINATION

 

15%

15%

30%

20%

15%

35%

-

35%

35%

35%

65%

100%