UNIVERSITI UTARA MALAYSIAUUM COLLEGEOF BUSINESSSCHOOL OF ACCOUNTANCY

COURSE CODE : BKAL1013

COURSE : BUSINESS ACCOUNTING

PRE-REQUISITE : NONE

1.0 COURSE SYNOPSIS

This course is designed specifically for students from non-accounting disciplines. It is divided into two sections, i.e. financial accounting and management accounting.

Students will be exposed to accounting concepts, principles and assumptions. They would be able to assess and apply the information provided by accountants in making decisions.

2.0 COURSE OBJECTIVES

Upon completion of the course, students are expected:

2.1 to understand on the basic accounting concepts; the accounting cycle and process; and

2.2 to understand the important and usefulness of accounting information in decision making.

3.0 COURSE LEARNING OUTCOMES

At the end of this course, students should be able to know and understand:3.1 the basic concepts of accounting;3.2 the meaning, role and importance of accounting information;3.3 the process of preparing financial statements; and3.4 how the accounting information helps the management in making business decisions.

4.0 COURSE CONTENT

NO TOPIC REFERENCE HOUR

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1. 1.0 ACCOUNTING ENVIRONMENT1.1 Definition of accounting.1.2 Purposes of accounting, fields of accounting,

accounting professional bodies, ethics and regulations

1.3 Types of business1.4 Characteristics of qualitative accounting information1.5 Users of accounting information

Topic 1Rosli et. al

Topic 2Norfaiezah et. al

1.5

2. 2.0 ACCOUNTING CONCEPT AND PRACTICE2.1 Generally accepted accounting principles

Accounting assumptions Accounting principles Accounting constraints

2.2 Types of financial statement Statement of Comprehensive Income Statement of Changes in Equity Statement of Financial Position Statement of Cash Flows

2.3 Business transactions and the accounting equation

Topic 1Rosli et. al

Topic 3Norfaiezah et. al

3

3. 3.0 THE RECORDING PROCESS3.1 Characteristic of an account3.2 The rules of debit and credit3.3 The steps in recording process3.4 Preparing of trial balance

Topic 2Rosli et. al

Topic 4Norfaiezah et. al

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4. 4.0 COMPLETING THE ACCOUNTING CYCLE4.1 Adjusting entries4.2 Preparing the adjusted trial balance4.3 Closing entries4.4 Preparing the financial statement

Statement of Comprehensive Income Statement of Owner’s Equity Statement of Financial Position

Topic 3Rosli et. al

Topic 5Norfaiezah et. al

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5. 5.0 ACCOUNTING FOR MERCHANDISING BUSINESSES

5.1 Merchandising businesses’ environment Transaction for purchases, sales, discounts,

returns and transportation costs5.2 Accounting for inventory

Periodic inventory system Perpetual inventory system

5.3 Format of Statement of Comprehensive Income and Statement of Financial Position

5.4 Closing entries

Topic 4Rosli et. al

Topic 6Norfaiezah et. al

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6. 6.0 COMPANIES ANNUAL REPORT6.1 Regulatory and disclosure requirements related to

financial reporting6.2 Major reports

Chairman’s report, board of directors’ report and audit report

6.3 Major financial statement Statement of Comprehensive Income,

Statement of Financial Position and Statement of Cash Flows

6.4 Accounting policies and notes to the account

Topic 5Rosli et. al

1.5

7. 7.0 FINANCIAL STATEMENT ANALYSIS7.1 Users of financial statement7.2 The importance of financial statement analysis7.3 Types of analysis:

1. Percentage – vertical and horizontal analysis2. Ratio – liquidity, profitability, efficiency and

solvency

Topic 6Rosli et. al

Topic 7Norfaiezah et. al

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8. 8.0 MANAGERIAL ACCOUNTING8.1 Introduction to managerial accounting8.2 The differences between managerial and financial

accounting8.3 The purpose and importance of managerial

accounting information for decision making8.4 Cost concept8.5 Preparing cost statement for manufactured goods.8.6 Preparing Statement of Comprehensive Income for

manufacturing firms

Topic 7Rosli et. al

Topic 8Norfaiezah et. al

3

9. 9.0 COST VOLUME PROFIT ANALYSIS (CVP)9.1 The usage of CVP analysis9.2 The relationships between cost volume and profit9.3 Break-Even Point concept (BEP)9.4 Techniques to determine BEP9.5 Applications of CVP analysis

Topic 8Rosli et. Al

Topic 9Norfaiezah et. al

4.5

10. 10.0 BUDGETING AS A TOOL FOR PLANNINGAND CONTROLLING

10.1 The concept of budgeting10.2 The usage of budgeting10.3 Preparing master budget for merchandising firms

Operational budget Financial budget

Topic 9Rosli et. al

Topic 10Norfaiezah et. al

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11. 11.0 VARIANCE ANALYSIS AND STANDARDCOSTING

11.1 The usage of standard costing11.2 Setting of standard cost and types of standard11.3 Calculation of variance:

Direct material Direct labour Factory overhead

Topic 10Rosli et. al

Topic 11Norfaiezah et. al

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4.0 REFERENCES

Main references:

1. Rosli, M., Junaidah, H.A., Mudzamir, M. et. Al (2011). Accounting-AMalaysian Perspective 4E Edition (Special Adaptation from Accounting 22e by Warren, Reeves and Duchac, 2006), Cengage, Singapore.

 

2. Norfaiezah, S., Fathiyyah, A.B., Saliza, A.A., Zaimah, A., Mohd Farid Asraf, M.H. & Ram Al Jafri, S. (2009). Business Accounting: Easy Guide. Kuala Lumpur. Pearson-Prentice Hall.

3. Warren, C.S., Reeves, J.M & Fess, P.E. (2002). Accounting (20e),South-Western Thompson Learning, USA.

4. Che Zuriana, Akilah, Noriah, Noor Azizi, Mohd Azlan, (2001), Perakaunan Perniagaan, Penerbit UUM, Sintok.

5. Engku Ismail Engku Ali (2001), Perakaunan Perniagaan, Kuala Lumpur. Pearson-Prentice Hall.

Additional references:

1. Akta Syarikat, 1965.

2. Dyson, J.R., (2010), Accounting for Non-Accounting Students, Eight Edition, Financial Times, London.

3. Leong, A.F.C., and Wong, S.V. (2010) Business Accounting, Third Edition, Pearson Education, Kuala Lumpur.

4. Horngren, C.T., Harrison, Jr, W.T., and Oliver, M.S., (2012), Accounting, Ninth Edition, Pearson Education Limited, Essex.

6.0 TEACHING METHOD

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This course is conducted for fourteen weeks. The teaching and learning activities include lectures, tutorials, project, assignments as well as quizzes given from time to time throughout the semester. Power-point presentations for the lectures are available on the e-learning website. Tutorial questions will be given by your lectures and some are selected from the textbook. Quizzes are in the form of online quiz.

7.0 COURSE ASSESSMENTThe students will be evaluated based on:

Course Work: Mid Sem 20% Tutorials 10%

Project 15%Quizzes 5%

--------- 50%Final Semester Examination 50%

100%

8.0 ATTENDANCEStudents are required to fulfill at least 80% of class attendance in order to qualify to sit in the final examination as governed by the Universiti Utara Malaysia regulations. Students who fail to meet the above requirements for whatsoever reasons will be barred from taking the final examination.

9.0 ACADEMIC MISCONDUCTStudents are reminded that academic misconduct is the most serious academic offence. Examples of academic misconduct are cheating and plagiarism, bringing in notes during examination, taking the examination on behalf of another student and so on. Once the student is convicted of any of the above offences, the examination result will be with-held and annulled and/or other serious penalties may be taken against the student.

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