AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH Faculty of Business Administration

Department of AccountingUndergraduate Program

UNIFIED COURSE OUTLINE

I. Course Title : Principles of AccountingII. Nature : Core CourseIII. Credit : 4 credit hoursIV. Pre-requisites : None

V. Course Description:This course provides the essentials of fundamental accounting such as: Definition of Accounting, users of accounting information, accounting concepts and principles, accounting equation, measuring and recording of business transactions, adjusting entries, completing the accounting cycle, classified financial statements, depreciation, inventories, managerial accounting basics, cost behavior, cost volume-profit and its analysis and budgeting.

VI. Course Objectives:This course aims to provide the students with basic understanding of principles & concepts of accounting as well as accounting practices, financial reporting & analysis which intend to provide a strong foundation in understanding the way financial statements are prepared and how these financial reports help the management of any business/organization to take various managerial decisions. The managerial accounting aspect of this course helps the students in developing an understanding about the various cost concepts and their related interpretation involved in decision making. At the end of the course, the student will be able to:

1. understand the use and users of accounting information;2. analyze, record and process financial data to produce accounting information;3. prepare financial statements for merchandising concern as well as for service

concern;4. identify the areas where management accounting can play an important decision

making role;5. apply management accounting techniques in planning, control and decision

making situations.

VII. Teaching Methodology:In order to achieve success, it is vital that the course tutor and the students cooperate with each other in identifying areas, which may need further clarification. It is expected that classes will be proactive with contribution from all participants. Visual presentation (power point) as well as counteractive discussions in classroom will be used for better understanding of various topics in the course. Classes will consist of lectures, discussions and homework sessions. A significant number of mathematical problems will be solved to understand the subject effectively. Students are expected to contribute to discussions and to participate in homework problem solving.

The team teaching approach will be applied to allow other teachers teaching the same course to share additional inputs in the class. This will be made in a pre-arranged mode so that the topics can be carried out as scheduled.

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VIII. Topics to be Covered:

Topics Specific objective(s)Time frame

Suggested

activities

Teaching Strategy(s

)Overview of the university and the course

Mission and Vision of AIUB; Explain what is accounting, identify the users and uses of accounting, explain the conceptual framework of accounting – assumption, principles and constraints in accounting.

1 lectur

e

Group discussion

s

Power point

presentation

Accounting in action

Basic accounting equation and the meaning of assets, liabilities, and owners equity, analyzing business transactions and its effects on basic accounting equation, understanding the four financial statements etc.

1 lectur

es

Group discussions, problem

solving

Power point

presentation and

problem solving

using white board

The recording process

What is an account, define debits and credits, identify the basic steps in accounting process, journal and its recording process, ledger and its recording process, preparation of trial balance etc.

2 lectur

es

Group discussions, problem

solving

problem solving

using white board

Adjusting the accounts

Explain the time period assumption, explain accrual basis of accounting, adjusting entries, adjusting entries for prepayments and accruals, purpose of adjusted trial balances. Review for mid term exam.

2 lectur

es

Group discussions, problem

solving

Power point

presentation and

problem solving

using white board

Completion of the accounting cycle

Preparing a work sheet, processing of closing the books, describe the content and purpose of post-closing trial balance, the required steps in accounting cycle, correcting entries, reversing entries, classified balance sheet.

2 lectur

es

Group discussions, problem

solving

problem solving

using white board

MID TERM EXAMINATION 1 week

Inventories and concept of depreciation

Steps in determining inventory quantities, inventory cost flow methods, financial statements and tax effects of inventory cost flow methods; concept of depreciation, depreciation by using different methods.

1 lectur

es

Group discussions, problem

solving

Power point

presentation and

problem solving

using white board

Accounting information systems

Basic concepts of accounting information systems; special journals – sales journal, cash receipts journal, purchase journal, cash payment journal and effects of special journals on the general journal; subsidiary ledger.

1 lectur

es

Group discussions, problem

solving

Problem solving

using white board

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Managerial Accounting Basics

Distinguishing features of Managerial Accounting, functions of management, defining classes of manufacturing costs, product & period cost.

1 lectur

e

Group discussions, problem

solving

Problem solving

using white board

Topics Specific objective(s)Time frame

Suggested

activities

Teaching Strategy(s

)Cost concepts and classification

Three classes of manufacturing costs, difference between merchandising & manufacturing Income Statement & Balance Sheet, determining cost of goods manufactured, cost Terms & Concept, Cost behavior, Cost driver & cost estimation etc.

2lectur

es

Group discussions, problem

solving

Problem solving

using white board

Cost behavior and CVP analysis

Cost behavior and its pattern; types of variable and fixed costs; contribution margin ratio; application of CVP concepts; break-even analysis; target profit analysis; the margin of safety; operating leverage.

1lectur

es

Group discussions, problem

solving

Problem solving

using white board

Variable costing Absorption costing and variable costing; income comparison of absorption costing and variable costing; effect of changes in production on net income.

2 lectur

es

Group discussions, problem

solving

problem solving

using white board

FINAL EXAMINATION 1 week

IX. Course Requirements:Quizzes: Altogether 4 quizzes may be taken during the semester. The quizzes generally based on previous class lectures. No make up quizzes will be taken. Students are strongly recommended not to miss any quizzes.

Assignment: The topic of the assignment will be informed in the class. All the assignments will be individual based and must be submitted on or before the due date. No late submission of assignments will be accepted.

X. Evaluation:Grades will be calculated as per the university grading structure and individual student will be evaluated based on the following criteria with respective weights.

1. Quizzes 20%2. Individual

Assignments10%

3. Class Participation 10%4. Class attendance 10%5. Term Examination 50%Total 100%

XI. Textbook/Reference Materials:Required text: “Principles of Accounting”, Jerry J. Weygandt, Doland E. Keiso, Paul de Kimmel; 9th

Edition; Wiley & Sons, Inc.

Reference text:1. “Managerial Accounting”, Ray H. Garrison, Eric W. Noreen & Peter C. Brewer,

Twelfth edition, McGraw-Hill Irwin.

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2. “Fundamental of Accounting Principles”, K.D. Larson & P.D. Miller, Sixth Edition, Irwin

3. Accounting Concepts and Application; K.F. Skousen, Lagenderffy & W.S. Albrecht; Fourth Edition; South Western College Publishing.

4. Financial Accounting; Roger H. Hermanson, James D. Edwards & L.G. Rayburn; Third Edition; Business Publishing Inc.

5. “Managerial Accounting: Creating Value in a Dynamic Business Environment”, Ronald W. Hilton, Eighth Edition, McGraw-Hill

Prepared By:1. Mr. Musharraf Hossain2. Mr. Abdus Shahed 3. Mr. Nikhil Chandra Shil4. Ms. Kashfia Sharmeen

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