Rationale

Financial Accounting I is an introductory course explaining – among others – the main principles of accounting, exposing students to financial statements, post-Trial Balance adjustments, as well as Bank Reconciliation Statements.

Learning outcomes

At the end of the course students will be expected to:
(i)    Explain what financial accounting is about.
(ii)   Describe the main users of accounting information.
(iii)  Explain the accounting equation, and how accounting transactions affect the items in the accounting equation.
(iv)  Prepare and compute ‘T’ accounts, understand how the double entry is used, and record transactions into individual accounts.
(v)   Prepare Trial Balance, Income Statement, Balance Sheet and explain how adjustments (e.g., prepayments, accruals, etc.) affect the financial statements.
(vi)  Describe the process of recording transactions in a book of original entry.
(vii) Apply the imprest system for petty cash.
(viii) Explain the accounting methods used for bad debts and allowances for doubtful debts. 
(ix)  Explain the accounting for depreciation of non-current assets. 
(x)   Prepare bank reconciliation statement.