Fundamentals of Financial Accounting

Department of Finance & Investments

NUST Business School

National University of Sciences & Technology All NUST
Schools
Course Details

Course Title: Fundamentals of Financial Prerequisite: None

Accounting
Course Code: ACC-111 Credit Hours: 3
Course Faculty

Fareeha Naseem
Email: fhanaseem@gmail.com

Course Description

This course is an introduction to the concepts and uses of accounting information in a business
environment and its role in the economic decision-making process. The course covers basic
accounting topics such as accounting cycle, journal entries, posting, adjusting entries, trial
balance and preparation of financial statements.
Course Objectives

 To enable the students to recognize career opportunities in accounting, and understand

that accounting is important to both for-profit and nonprofit organizations.
 To explain how the accounting concepts affect financial statements.
 To make the students analyze and journalize transactions and post journal entries to
the ledgers.
 To make the students understand the sequence of steps in the recording process and
relate cash flows to adjusting entries.
 To enable the students to assess the profitability of the business.
 Explain how accounting information assists in making decisions.
 Explain the regulation of financial reporting, including differences between U.S.
GAAP and IFRS.
 Distinguish a company’s expenses from expenditures that it should capitalize.
 Use double-entry accounting.

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  Prepare an income statement and show how it is related to a balance sheet.
 Be able to prepare a Cash flow Statement.
 Explain how the accounting concepts affect financial statements
 Use ratios to assess profitability.
 Prepare a Bank Reconciliation Statement.
 Describe characteristics of LIFO and how they affect the measurement of income

Required Course Material

The required text for this course is:

Horngren, Sundem, Elliott and Philbrick (2013). Introduction to Financial Accounting. 11th
edition.
Supplemental readings may also be used from academic and business journals.
Reading financial sections of newspapers and/or periodicals is encouraged.

Course Evaluation (Grade Breakup)

Grading will be done as per NBS criteria. The breakup of the grade points is as follows:

Quizzes 15%
Assignments 10%
Mid term Exam 25%
Final term Exam 50%

Course Content (Weekly)

Weekly breakdown is given below:

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 Week No. Topics
1 Chap 1: Accounting: The Language of Business

2 Chap 2: Measuring Income to Assess Performance

3 Chap 3: Recording Transactions
4 Chap 4: Accrual Accounting and Financial Statements
5 Chap 5: Statement of Cash flows
6 Chap 5: Statement of Cash flows
7 Chap 6: Accounting for Sales
8 Chap 6: Accounting for Sales
9 Mid term Examinations
10 Chap 7: Inventories and Cost of Goods Sold
11 Chap 8: Long-Lived Assets
12 Chap 9: Liabilities and Interest
13 Chap 9: Liabilities and Interest
14 Chapter 10: Stockholders’ equity
15 Chapter 10: Stockholders’ equity
16 Cash and receivables
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18 Final Examinations

Grading Policies

The quizzes will be unannounced and normally last for ten to fifteen minutes. The question
framed is to test the concepts involved in last few lectures. Number of quizzes that will be used
for evaluation is at the instructor’s discretion. Grading for quizzes will be on a fixed scale of 0 to
10. A score of 10 indicates an exceptional attempt towards the answer and a score of 1 indicates
your answer is entirely wrong but you made a reasonable effort towards the solution. Scores in

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between indicate very good (8-9), good (6-7), satisfactory (4-5), and poor (2-3) attempt. Failure
to make a reasonable effort to answer a question scores a 0.

In order to develop comprehensive understanding of the subject, assignments will be given. Late
assignments will not be accepted / graded. All assignments will count towards the total (No
‘best-of’ policy). The students are advised to do the assignment themselves. Copying of
assignments is highly discouraged and violations will be dealt with severely by referring any
occurrences to the disciplinary committee. The questions in the assignment are meant to be
challenging to give students confidence and extensive knowledge about the subject matter and
enable them to prepare for the exams.