Fundamentalof Accounting I Course Outline

Rift Valley University
Department of Accounting and Finance

Department Accounting and Finance
Program BA degree in Accounting and Finance
Module Title Basics of Accounting and Reporting
Module code ACFN-M2010
Objective of the module Upon the successful completion of this module, students should be able to:
 Understand basic features of International Financial Reporting
Standards and the structure of Accounting and Auditing Board of
Ethiopia
 Summarize and apply basic financial accounting terms, concepts, and
principles;
 Apply accounting terminology, concepts, and principles in analyzing,
recording, and reporting basic business transactions;
 Take a series of transactions through the accounting cycle
 Utilize and identify the implication of the various methods of
valuation in respect to common balance sheet items
 Analyze, record and report transactions for businesses organized as
partnerships, private limited companies, and companies
Courses of the Module
Course Number AcFn2011
Course Title Fundamentals of Accounting I
ETCTS Credits 6
Contact Hours 4
(per week)
Course The course has the general objective of introducing students to the basics of
Objectives and accounting and reporting of financial activities of business organizations as per
Competences to International Financial Reporting Standards. Upon the successful completion of
be Acquired this course, the students will be expected to:
 Understand the role of Accounting in business and develop an awareness of the
accounting profession
 Understand the purpose of the financial accounting function and standard
financial accounting practices
 Summarize and apply basic financial accounting terms, concepts, and
principles.
 Define and apply accounting terminology, concepts, and principles in
analyzing, recording, and reporting basic business transactions
 Take a series of transactions through the accounting cycle
 Analyze, record, and report transactions for service, merchandising, and
manufacturing businesses.
 Prepare financial statements
 Analyze accounting system design and control
 Apply accounting principles and control of cash and receivables
Course This course is designed to provide introductory knowledge of accounting
principles, concepts, and practices as per International Financial Reporting
Description Standards. The course deals with the processes involved in financial statements
preparation for service-giving businesses, merchandising businesses, and
manufacturing businesses. Topics covered includes the features of accounting
information, users of accounting information, nature of financial statements, the
double entry system, financial statements preparation process including journals,
ledgers, trial balance, adjustments, worksheets, accruals, adjusting and closing
entries, and the accounting system. This course provides a foundation for more
advanced work in the fields of Accounting and business. All topics are studied in
accordance with the provisions of International Financial Reporting Standards
(IFRS).
WEEKS Course Contents
1. Introduction to Accounting and Business

2WEEKS 1.1. The nature of a business
{1STand2ND } 1.2. Types of business organizations in Ethiopia
1.3. The role of accounting in business
1.4. The profession of Accounting
1.5. Overview of International Financial Reporting Standards
(IFRS)
1.6. Overview of financial reporting requirements in Ethiopia and
AABE
1.7. The accounting equation and elements of the equation
1.8. Business transactions and financial statements
2. Accounting cycle for service-giving business
2.1. Characteristics of an account
4 WEEKS 2.2. Classification of accounts
2.3. Chart of accounts
{3RD ,4TH ,5THan
2.4. Rules of debit and credit
d6TH }
2.5. Normal balances of accounts
2.6. Analyzing and recording transactions
2.7. Preparing a trial balance
2.8. The usefulness and limitations of a trial balance
2.9. The adjusting process-accrual vs. cash basis of accounting
2.10. Preparing a worksheet
2.11. Preparing financial statements from a worksheet
2.12. Adjusting and closing entries
2.13. Post-closing trial balance
3. Accounting cycle for merchandising business
3.1. Characteristics of merchandising business
2 WEEKS 3.2. Accounting for purchases of merchandises
3.3. Accounting for sales of merchandises
{7THand8TH }
3.4. Merchandise transactions using perpetual and periodic
inventory systems
3.5. Chart of accounts for a merchandising business
3.6. Financial statements for a merchandising business
3.7. Adjusting and closing entries for a merchandising business
2 WEEKS 4. Accounting Systems
4.1. Manual and computerized Accounting systems and Enterprise
{11THand12TH } Resource Planning
4.2. Subsidiary ledgers and controlling accounts
4.3. Special journals and vouchers
5. Cash and Receivables
5.1. Internal control over cash
4 WEEKS 5.2. Bank reconciliation
5.3. Petty cash and change funds
{13TH,14TH ,15TH
5.4. Classifications of receivables
and16TH }
5.5. Internal control of receivables
5.6. Accounting for uncollectible accounts
5.7. Accounting for notes receivable
5.8. Presentation of cash and receivables on the statement of
financial position
Assessment/ The evaluation scheme will be as follows:
Evaluation Component Weight coverage
Mid- Exam 20% Chapter 1 and 2
Test 1 10% Chapter 3
Assignment 1 10% Chapter 1 and2
Assignment 2 5% Chapter 3 and 4
Quiz 1 5%
Final Exam 50% All chapters
Work load in Hours Required
hours Total
Assess Tutor Self- Assign Advi Hrs ECTS
Lectures Lab ments ials Studies ment sing
64 - 20 16 62 - - 162 6
Text and Text Book:

reference books  Kieso, D. E., Weygandt, J. J., and Warfield, T. W. (2016).
Financial Accounting, IFRS Edition, New York: John Willey
and Sons.
 Commercial Code of Ethiopia

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Rift Valley University

Department of Accounting and Finance

1. Introduction to Accounting and Business

Text and Text Book:

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