IEF 202 Principles of Accounting

Accounting, often referred to as the language of business, provides meaningful financial information to individuals and institutions with a vested interest in the world of commerce. Whether they are investors, creditors, or managers, accounting plays a crucial role in aiding decision-making and understanding the financial health of businesses. This course serves as an introduction to accounting concepts and their practical application in analyzing transactions and preparing financial statements. The course emphasizes the accounting cycle for service and merchandising enterprises, offering students a comprehensive understanding of essential accounting principles and procedures. Throughout the course, students will explore and analyze various topics, including: The fundamental accounting equation and its significance in financial reporting; Mechanics of recording transactions using the general journal and general ledger; Preparation of financial statements, including income statements, balance sheets, and cash flow statements; Examination of accrual and cash basis of accounting and their impact on financial reporting; Principles and practices of merchandising accounting, inventory valuation, and cost flow methods; Bank reconciliations and internal control systems to ensure accurate financial records; Effect of Errors on financial statements and Methods for their correction; Estimation and valuation of inventories; Cash and receivables management, including analysis of collection and credit policies; Use of special journals and subsidiary ledgers to streamline accounting processes, and Comprehensive overview of the accounting cycle from recording transactions to closing the books. Students will develop the necessary skills to navigate accounting principles and procedures through lectures, practical exercises, and case studies. The course encourages critical thinking and problem-solving abilities, enabling students to apply accounting concepts in real-world scenarios. Additionally, an emphasis is placed on developing effective written and oral communication skills for presenting financial information. By the end of this course, students will have a solid foundation in accounting, enabling them to understand and analyze financial transactions, prepare accurate financial statements, and make informed decisions based on reliable financial information.