BA 99.

1
Fundamental Accounting Theory and Practice I
Course Outline
First Semester, SY 2018-19

Instructor Ma. Angelica Debbie Chua Bun Kryztelle Gabay Jerelleen Dani Salazar
Esmera Calso Pho Rodriguez
Office Room 115 E Room 201 C Room 203 Room 201 D
Consultation WF 8-10AM, 4- W 8-11 AM, 3-7 TW 1-5 PM By Appointment WF 10-3PM
Hours 7PM PM
F 230-530 PM

Course Description:
This course deals with the fundamental concepts, principles, and techniques applicable to the identification,
measurement and communication of accounting information.

Course Goals:
Understand the basic concepts, principles and terminologies used in accounting. Use financial reporting rules to
identify, record, classify, summarize and communicate accounting information through the financial statements.

References:
TEXTBOOK: Principles of Financial Accounting (IFRS) 3rd Edition by John Wild, Winston Kwok, Ken W. Shaw,
Barbara Chiappetta

NO. OF READING
SESSIONS TOPIC OBJECTIVES ASSIGNMENT
1 Introduction to Course and Class  Obtain an overview of the
Rules course
 Appreciate the relevance of the
course to one’s program/future
plans
 Understand class rules and
applicable university policies
2 Conceptual Framework and  Explain what accounting is Chapter 1
Accounting Principles  Identify the users and uses of Appendix 1C
 Nature and purpose of accounting
accounting  Explain the meaning of GAAP
 Types of business organizations  Explain the qualitative
 Accounting principles and characteristics of financial
concepts statements
 Accounting equation  Explain and use the accounting
 The financial statements equation
 Understand what the 4 financial
statements are and how they are
prepared
 Explain the uses and limitations
of financial statements
2 Transaction Analysis and the  Perform the recording and Chapter 2
Recording Process summarizing phases of the Appendix 2A
 Double-entry accounting accounting cycle.
 The account  Prepare the accounting records
 The journal of a company.
 The ledger  Prepare and use a trial balance.
  The trial balance
3 Accrual Accounting and Income
 Matching expenses and revenues
 Adjusting entries
 The adjusted trial balance
2 Completing the Accounting Cycle
FIRST LONG EXAMINATION (Sunday, September 16, 2018; Time:9 AM)
3 Financial statement of a
merchandising operations –
Inventory Accounting Systems
4 Inventories
 Definition
 Valuation
 Estimation techniques
3 Internal Control and Cash
 Nature
 Balance sheet presentation
 Internal controls
 Bank reconciliation statement
 Petty cash fund
 Voucher system
 Distinguish accrual-basis Chapter 3
accounting from cash basis Appendix 3C
accounting.
 Explain and apply the revenue
and matching principles.
 Prepare adjusting entries at the
end of the accounting period.
 Prepare and use the adjusted
trial balance.
 Prepare financial statements
from the adjusted trial balance.

 Steps in the accounting cycle Chapter 4
 Prepare closing entries. Appendix 4B
 Prepare correcting entries
 Operating cycle and its use in
classifying assets and liabilities
in the balance sheet
 Criteria for classifying assets
and liabilities in the balance
sheet
 Forms of the balance sheet.
 Explain the use of current and
debt ratios to evaluate a
business’s ability to pay debts.
 Describe the operation and set Chapter 5
up the accounting records of a
merchandising entity.
 Explain the relationship
between the inventory account
and cost of goods sold account.
 Describe/distinguish and use
the periodic and perpetual
inventory systems.
 Account for inventory under the
perpetual and periodic systems.
 Explain and apply the different Chapter 6
inventory costing methods.
 Analyze the effects of inventory
errors on cost of goods sold and
net income.
 Estimate inventory using
different techniques.
 Apply the lower of cost or NRV
rule.
 Describe the nature and Chapter 7
presentation of the cash asset in
the balance sheet.
 Define internal control and
identify characteristics of an
effective internal control system.
 Apply internal controls to cash
receipts/payments.
 Prepare a bank reconciliation
statement and related adjusting
 entries.
 Explain and apply the vouchers
system.
SECOND LONG EXAMINATION (Sunday, October 28, 2018; Time:9AM)
3 Receivables and Short-Term  Account for receivables. Chapter 8
Investments  Explain and use different
 Definition methods to account for bad
 Valuation debts.
 Balance sheet presentation and  Design internal controls for
classification receivables.
 Report receivables on the
balance sheet.
 Explain and use the acid-test
ratio and days’ sales in
receivables to evaluate a
business.
4 Long Term Assets – Tangible and  Measure the cost of a plant asset. Chapter 9
Intangible Assets  Explain and compute
 Definition depreciation using different
 Valuation depreciation methods.
 Capital vs. revenue expenditures  Account for depreciation in the
 Depreciation: nature and financial statements.
methods  Account for disposal of a plant
 Controls asset.
 Balance sheet presentation  Account for changes in plant
asset’s useful life, depreciation
method and other estimates.
 Describe the nature of a natural
resources asset.
 Account for natural resources
and depletion.
 Report natural resources and
depletion in the financial
statements.
THIRD LONG EXAMINATION (Sunday, December 2, 2018; Time:9AM)
FINAL EXAMINATION (Sunday, December 9, 2018; Time: 9AM)

Grading Scheme:

First Exam 20%

Second Exam 20%
Third Exam 20%
Final Exam 25%
Quizzes 15%
-------------
Total 100%
Grading Scale:

97-100 1.00 73-76 2.50

93-96 1.25 69-72 2.75
89-92 1.50 65-68 3.00
85-88 1.75 60-64.99 4.00
81-84 2.00 Below 60 5.00
77-80 2.25

Important Reminders:

1. All exams will be departmental.

2. Depending on your instructor, you may be required to submit a 3 x 5 index card with the following
information: full name, nickname, student number, course, address, contact phone number, email address
and recent photo.

3. All assigned work should be written in legal-size, yellow/columnar paper. Selected assigned exercises may be
required to be submitted during/after class discussion.

4. Missed Quizzes, Homework, Class Participation. There will be no make-up for quizzes, homework and
class participation. The student gets a score of zero.

5. Missed Long Exams.

a. Students shall not be allowed to take make-up exams. He/she shall receive a score of zero for the missed
exam unless the absence is for valid reason. If a student fails to take a long exam for valid reason, he/she
receives 75% of his or her lowest exam.
b. A student may miss only one of the 3 long exams given for the course, whether his/her reasons are valid
or not.
c. If a student misses two or more exams without valid reasons, he/she will be given a grade of 5.0 for the
course. If a student misses two or more exams with valid reasons, he/she will be given a grade of ‘INC’ for
the course.
d. It is the obligation of the student to submit the necessary documents (i.e. medical certificate from the
University Health Service, police report, etc) to his/her instructor within 2 days of the scheduled missed
exam. The instructor’s decision about the validity of the student’s justification for missing an exam is
final.

6. Missed Final Exam.

Students shall not be allowed to take a make-up final examination except when the absence is due to valid
reason. After showing proof of sickness or confinement or any relevant documentation (Refer to Rule 5d),
he/ she will be allowed to take the removal exam in lieu of the final examination. Otherwise, a missed final
examination will receive a grade of zero.

7. Removal Exam
Only students with a grade of 4.00 are eligible to take the removal examination. It is the obligation of the
student to coordinate with his/her instructor to determine the schedule of the exam.

8. Photography, reproduction, or copying of exam questionnaires. Said activities are considered cheating
and will be dealt with severely following University rules. The student’s exam will get a 0 for those exams. If
the student drops the subject, a case will still be filed against him.

9. Recording of lectures. Students shall ask the permission of their instructors to record lectures. Video and
audio recording are prohibited unless otherwise expressly permitted by the instructor.
10. Attendance.
a. University rule on absences shall be enforced. (Max of 6 absences)
b. Students who drop the course must follow all official procedures for DROPPING.
c. If a student does not officially drop and fails to attend the remaining class session and to take the exams
without a valid reason, he will be given grade of ‘5.0’ for the course in accordance with University rules.

11. Bonus Points. There will be NO incentives for any activities outside BA 99.1. (ex: attendance in BACBACAN,
seminars, lectures, etc.).

12. Grade Solicitation. University rule on grade solicitation shall be enforced.

Article 194.
PROHIBITION AGAINST GRADE SOLICITATION
“No student of the UNIVERSITY shall SOLICIT directly or indirectly (ask any person to recommend him to his
professor or professors) any grade FROM AN INSTRUCTOR (in his record, examination paper or final report
of grades). Any student violating this rule shall lose credit in the subject or subjects regarding which such
(recommendation) SOLICITATION is made (the fact that a student is thus recommended shall be prima facie
evidence that the recommendation is made at the request of the student concerned), WITHOUT PREJUDUCE
TO THE FILING OF A CASE FOR DISCIPLINARY ACTION.”

13. Take note of the release of examination grades and final grades and the period given for any corrections or
objections regarding grade recording and/or computations. Grades submitted after lapse of the “Objection”
period will be final and irrevocable.

14. Important Dates

Deadline for dropping October 31, 2018

Deadline for Filing of LOA November 16, 2018
Last day of classes December 3, 2018