Pokhara University (PU)
Syllabus of ?Financial Accounting II?
BBA (Bachelor of Business Administration)
For: First Year | Second Semester
ACC 102.3 | Credit Hours: 3
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:
- 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:
- 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 - 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 - 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 - Accounting for Current Liabilities: 5 hours
Accounts payable; notes payable, tax payable, warranties and accrued liabilities; balance sheet presentation - 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 - 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
Text book:
- Porter, Gray A. and Norton, Curtis L, Financial Accounting: The Impact on Decision Makers, The Dryden Press, USA.
Reference Book:
- Narayanaswamy, R., Financial Accounting: A Managerial Perspective, Prentice Hall of India, New Delhi.