BASIC ACCOUNTING & FINANCE COURSE

Course objective
After the completion of course, students will be able to acquire basic knowledge and skill on basic accounting tools and concepts of financial analyses.

Course outline

1. Basic accounting equation and double entry book-keeping system (7 hours)
1. Foundation and basic elements
2. Changes in the equation
3. The nature of double entry book-keeping system
4. Debit & credit entries
5. The accounting process.


2. The accounting process & records (5 hours)
1. Setting up the accounting systems
2. Accounting as a process
3. Accounting process & cycle.
4. The journal, ledger and trial balance.


3. Basic financial statements (4 hours)
1. Nature and use of financial statements
2. Basic financial reports
3. Accounting principles


4. Special topics in accounting (3 hours)
1. Accounting for depreciation
2. Inventory valuation methods.


5. Cost accounting (8 hours)
1. The "spend-earn-cycle".
2. The role of cost accounting.
3. Classification of costs.
4. Cost systems.
5. Job order costing.
6. Accounting for material, labor and overhead.
7. Process costing and its methods and techniques in process costing.


6. Analysis of financial statements (8 hours)
1. Operational issues
2. Why the need of financial analysis
3. The tools and process
4. Ratio analyses
5. Profitability in relation to sales and investment
6. Common-size analysis


7. Break-even analysis and capital investment analyses (10 hours)
1. BEP as a trade-off point to profitability
2. Nature of capital investment
3. Time value of money
4. The discounting process and discount rate
5. Internal rate of return
6. Pay-back period
7. Net present value.

Practical:
Students will be divided into groups and asked to prepare a case study report , submit to the department and present the same in class.
References

1. Maurino P. Bolante, edited by Eduardo A Morato, Jr., Asian Institute of Management. "Manual on Basic Accounting & Finance", Manila, the Philippines, Second Edition, 1995.

Evaluation Scheme:
The Questions will cover all the chapters in the syllabus. The evaluation scheme will be as indicated in the table below:

Chapters	Hour	Mark Distribution*
1	7	15
2	5	10
3	4	5
4	3	5
5	8	15
6	8	15
7	10	15
Total	45	80

*There could be minor deviation in mark distribution.