Title
Fundamental Skills of Accounting & Finance
Pre-requisites
- Basic understanding of accounting terminologies
Objectives
- To learn about basic business and accounting terminologies
- To understand how to prepare and analyse financial statement and understand business position
- To prepare the students for understanding accounting systems and recording day to day business transactions
- To enable to students how to analyse financial transactions through accounting equation
- To Understand some components of financial statement
- To Enable learners how to analyse financial statements by ratio analysis
- To provide overview of preparation of budgets
- To get an insight to computerized accounting
Content
- Introduction to Accounting and Business, Nature of Business and Accounting, Types of Businesses, Types of Business Organization, Users of Accounting Information
- Fundamental Accounting Concepts, Principles and Policies, GAAP, IAS, IFRS
- Business Transactions and The Accounting Equation, Effects of Business Transactions on Accounting Elements
- Set of Financial Statements, Definition of Income Statement, Components of Income Statement: Revenues, Expenses, Gains and Losses, Accounting for Revenues and Expenses
- Financial Statements: Statement of Owner’s Equity, Definition of Balance Sheet, Components of Balance Sheet: Assets, Liabilities, Equity
- Analysis of financial statements, profitability analysis, liquidity analysis, solvency analysis, activity analysis, market analysis, horizontal analysis, vertical analysis
- The Recording Process: Accrual Basis and Cash Basis of Accounting, Chart of Accounts, Phases in Accounting Cycle, Account and its Recording Process, Types of Accounts –Permanent and Temporary, Double Entry Book Keeping System, Rules of Debit and Credit
- Recording of transactions in Journal Form, posting them in to ledgers and preparation of trial balance
- Budgeting, types of budget, sales budget, cash budgets
- Introduction to computerized accounting, an overview of quick-book
Recommended Books
- Accounting for decision making, Latest edition by Meigs & Meigs, Willian haka battner
- Business accounting, latest edition by Frank Wood
- Fundamentals of Accounting, latest edition by Sohail afzal, Muhammad Arif
Course Outline
| Week Name | Lecture Name | Topic(s) Covered |
|---|---|---|
| Week 1 | Business and its language | Business introduction, types of business, sole tradership, partnership, joint stock company, issues regarding establishing a company |
| Week 2 | Basic terminologies of accounting | History of accounting, basic terms of accounting, 5 pillars of accounting, GAAP, Share prices |
| Week 3 | Introduction to financial statements | Income statement and its components, Balance sheet and its components, Notes to the financial statements |
| Week 4 | Analysis of financial statement | Accounting equation, analysing business transactions through accounting equation, incomplete figures of income statement and balance sheet, introduction to financial ratios |
| Week 5 | Ratio analysis and PSX | Profitability ratios, liquidity ratios, debt ratios, activity ratios, market ratios, sample of a company statement analysis, Pakistan stock exchange and its working, annual reports of public listed companies |
| Week 6 | Recording process of financial transactions | Concept of debit and credit, journal, ledger and trial balance |
| Week 7 | Budgeting, CVP analysis | Preparation of budgets, sales and other budgets, Cost-volume-profit analysis |
| Week 8 | An overview of computerized accounting, Quick book | Recording financial data electronically through accounting software, Quick-book, excel worksheets etc. |
Course Instructor
Muhammad Kamran, a senior lecturer in the area of Accounting and Finance currently working under Ministry of Education and Professional Training, Government of Pakistan, having vast experience in providing accounting services to different institutions in renowned institutions of Pakistan. He also worked as District Officer Finance in Government of Punjab, Pakistan, which enriched his accounting experience and profession.
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