Fundamentals of Accounting Urdu course

1 Accounting in Action

LO 1: Identify the activities and users associated

with accounting.
Three Activities
Who Uses Accounting Data

LO 2: Explain the building blocks of accounting:

ethics, principles, and assumptions.
Ethics in Financial Reporting
Generally Accepted Accounting Principles
Measurement Principles
Assumptions

LO 3: State the accounting equation, and define

its components.
Assets
Liabilities
Owner’s Equity

LO 4: Analyze the effects of business transactions

on the accounting equation.
Transaction Analysis
Summary of Transactions

LO 5: Describe the four financial statements and

how they are prepared.
Income Statement
Owner’s Equity Statement
Balance Sheet
Statement of Cash Flows

LO *6: APPENDIX 1A: Explain the career

opportunities in accounting.
Public Accounting
Private Accounting
Governmental Accounting
Forensic Accounting
“Show Me the Money”
2 The Recording Process
Accidents Happen: MF Global Holdings

LO 1: Describe how accounts, debits, and credits

are used to record business transactions.
The Account
Debits and Credits
Summary of Debit/Credit Rules

LO 2: Indicate how a journal is used in the

recording process.
Steps in the Recording Process
The Journal

LO 3: Explain how a ledger and posting help

in the recording process.
The Ledger
Posting
The Recording Process Illustrated
Summary Illustration of Journalizing and
Posting

LO 4: Prepare a trial balance.

Limitations of a Trial Balance
Locating Errors
Dollar Signs and Underlining
A Look at IFRS 90
3 Adjusting the Accounts
Keeping Track of Groupons: Groupon

LO 1: Explain the accrual basis of accounting

and the reasons for adjusting entries.
Fiscal and Calendar Years
Accrual-versus Cash-Basis Accounting
Recognizing Revenues and Expenses
The Need for Adjusting Entries
Types of Adjusting Entries

LO 2: Prepare adjusting entries for deferrals.

Prepaid Expenses
Unearned Revenues

LO 3: Prepare adjusting entries for accruals.

Accrued Revenues
Accrued Expenses
Summary of Basic Relationships

LO 4: Describe the nature and purpose of an

adjusted trial balance.
Preparing the Adjusted Trial Balance
Preparing Financial Statements

LO *5: APPENDIX 3A: Prepare adjusting

entries for the alternative treatment of
deferrals.
Prepaid Expenses
Unearned Revenues
Summary of Additional Adjustment
Relationships

LO *6: APPENDIX 3B: Discuss financial reporting

concepts.
Qualities of Useful Information
Assumptions in Financial Reporting
Principles in Financial Reporting
Cost Constraint
A Look at IFRS 146
4 Completing the Accounting Cycle
Everyone Likes to Win: Rhino Foods

LO 1: Prepare a worksheet.
Steps in Preparing a Worksheet
Preparing Financial Statements from a
Worksheet
Preparing Adjusting Entries from a
Worksheet

LO 2: Prepare closing entries and a post-closing

trial balance.
Preparing Closing Entries
Posting Closing Entries
Preparing a Post-Closing Trial Balance

LO 3: Explain the steps in the accounting cycle and

how to prepare correcting entries.
Summary of the Accounting Cycle
Reversing Entries—An Optional Step
Correcting Entries—An Avoidable Step

LO 4: Identify the sections of a classified balance

sheet.
Current Assets
Long-Term Investments
Property, Plant, and Equipment
Intangible Assets
Current Liabilities
Long-Term Liabilities
Owner’s Equity

LO *5: APPENDIX 4A: Prepare reversing

entries.
Reversing Entries Example
A Look at IFRS 202