ECO1203 Fundamental Accounting Principles

This course serves as an introduction to basic principles of accounting theory and practice. Topics covered include accrual basis accounting, accounting cycle, preparation of financial statements for both service and merchandising business enterprises and internal controls. Other topics include accounting for cash, receivables, payroll, inventories, fixed assets and current liabilities. Financial statements are prepared to represent the profitability and value of business enterprises. As such, financial statements convey important information to business owners and managers and to those persons in the investment community that finance business enterprises and the government agencies that tax them. Business owners and managers make important decisions about the use of cash on hand and the allocation of scarce resources by relying heavily on financial statements. 

Course Objectives

Accounting methods establish and maintain procedures for assembling the information which goes into these financial statements so that those who read them will have an accurate perception of a firm’s costs, revenues, and assets. This course instructs students in the basic principles of financial accounting with emphasis on accounting equation, accounting information cycle, the system of double-entry bookkeeping, the major external financial statements and provides an introduction to using financial statement information for financial analysis.

Course Learning Outcomes
Upon completion of this course, students should be able to: 

• Analyze, journalize, and post business transactions
• Prepare a multiple – step income statement, an owners’ equity statement and a classified balance sheet
• Analyze existing account balances, prepare end – of – period adjusting and closing entries and a post – closing trial balance
• Account for cash and petty cash including internal controls over cash 
• Account for merchandising companies including cost and internal control over inventory 
• Account for property, plant and equipment, accounts receivable and current liabilities.