Home Syllabus Financial Accounting II

Financial Accounting II

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Course Objectives:

This course aims to equip students with the knowledge and skill in handling financial accounting system. specifically, it aims to acquaint students with the
    1. Recording, accounting, valuation and disclosure in the financial statements of the inventories and the cost of goods sold:
    2. Accounting and disclosure of cash equivalents and receivables;
    3. Accounting and disclosure of non-current assets and liabilities.
    4. Accounting and disclosure of current liabilities; and
    5. Accounting and presentation of owners’ equity and dividends.

Course Contents:

Unit I: Accounting for Inventories and Cost of Goods Sold ————- 8 hours
    1. The nature of inventory
    2. Cost of goods sold model
    3. Inventory valuation and income measurement
    4. Inventory costing methods
    5. Choice of a method
    6. Methods of inventory estimation
    7. Effect of inventory valuation method on the cost of goods sold
    8. Disclosure in the financial statements
Unit II: Accounting for Cash, Cash Equivalent and Receivables ——- 8 hours
    1. Cash and cash equivalent:
      1. Components of cash and cash equivalents
      2. Preparation of the bank reconciliation statement and the need for adjustments to accounting record
        1. Petty cash
        2. Balance sheet presentation C
        3. ash and cash equivalent.
    2. Accounts receivable:
      1. Valuation of accounts receivables
      2. Methods to account for uncollected amount
      3. Balance sheet presentation
    3. Notes receivable:
      1. Interest bearing notes
      2. Non-interest-bearing notes
      3. Presentation of the notes receivable
      4. Related aspects in the financial statements.
Unit III: Accounting for Non-current Assets —————————— 11 hours
    1. Concepts of capital, revenue and deferred revenue expenditure
    2. Types of operating assets
    3. Acquisition of operating assets and the capitalization process
    4. Depreciation:
      1. Concepts
      2. Methods
      3. Accounting (straight line and diminishing balance method including accelerated depreciation method)
      4. Disposal of assets and accounting for gains and losses
    5. Disclosure in the financial statements.
Unit IV: Accounting for Current Liabilities ——————————– 5 hours
    1. Accounts payable
    2. Notes payable
    3. Tax payable
    4. Warranties
    5. Accrued liabilities
    6. Balance sheet presentation
Unit V: Accounting for Non-current Liabilities —————————- 9 hours
    1. Bonds payable:
      1. Issuance of bonds
      2. Characteristics of bonds
      3. Factors affecting bond price
      4. Premium of discount on issuance of bonds
      5. Bond amortization
      6. Redemption of bonds
      7. Disclosure in financial statements.
    2. Accounting for lease
    3. Operating and financial lease
    4. Balance sheet of presentation.
Unit VI: Accounting for Stockholders’ Equity and Dividends ———- 7 hours
    1. Stockholders’ Equity:
      1. Components of the stockholders’ equity section of the balance sheet
    2. Stocks:
      1. Type of stock
      2. Issuance of stock
      3. Stock issued for cash and non-cash consideration and on a subscription basis
      4. Treasury stock
      5. Retirement of a stock
      6. Presentation in the financial statements
    3. Dividends:
      1. Meaning and types of dividend-cash dividend
      2. Cash dividend for ordinary stock and preferred stock
      3. Stock dividend and stock split
      4. Disclosure in financial statements.

Text Book:

    1. Porter; Gray A. and Norton, Curtis L, Financial Accounting: The Impact on Decision Makers, The Dryden Press, USA.

Reference Book:

    1. Narayanswamy, R., Financial Accounting: A Managerial Perspective, Prentice Hall of India. New Delhi.
    2. Sanjib Neupane, Dharma Raj Upreti, Financial Accounting II Asmita Publication

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