New Generation University College, Nekemte Campus

Course Name: Financial Accounting

Instructor: Gudata A.
Target students: Business Administration, Year 2, Sem I,
Credit hours/week: 3 crhrs
Course description:
Financial Accounting is one of the core area course offered by the department of
Accounting. It is designed for an intermediate-level of financial accounting course
following the introductory course in accounting. The course concentrates on financial and
reporting for business entities. The first part of the course discusses an overview of
accounting principles and professional practice, a concise summary of the accounting
process, recognition of revenue and expenses, financial statements and additional
disclosures, and the application of present and future value concepts to financial
accounting measurements.

The second part of the course addresses the accounting for some basic working capital
elements. It includes accounting for cash and short-term investments, and receivables.

The general objective of the course is to educated students the underlying concepts and
analysis of the problems that arise in the application of the concepts to financial
accounting. And equally important to make students appreciate the use of accounting
information as basis for business decisions by users.

The specific objectives of the course are:

- to introduce students with the environment and application of accounting exists;
- to place in perspective the development and application of accounting principles;
- to reinforce students’ understanding of fundamental recording, classifying and
summarizing procedures;
 - to enable students properly prepare and interpret financial statements including
statements of income and retained earnings, balance sheet, and statement of cash
flows.
- to enable students properly prepare and interpret financial statements including
statements of income and retained earnings, balance sheet, and statement of cash
flows
- to enable students use appropriately the present value and future value concepts
for measurement of accounting transaction and hence financial statement
elements.
- to let students with the techniques of control over cash and preparation of bank
reconciliation.
- to introduce accounting for short-term investment.
- to make students properly value, measure and report receivables and understand
the accounting issues in use of receivables as a source of cash.

Course Chapters

Unit 1: The Environment of Accounting

Unit 2: Conceptual Framework for Financial Accounting and Reporting
Unit 3: Cash Flows and Income Measurement
Unit 4: Summary of the Accounting Process
Unit 5: Revenue and Expense Recognition
Unit 6: Receivables: Accounts and Notes receivables
Unit 7: Cash and Short-term Investments
Teaching Methodologies
- Lecture
- Group discussion and activities
- Case analysis, assignments

Text Book:
A.N. Moisch, Intermediate Accounting, 5 edition, McGraw Hill Co. 1982
th
Evaluation scheme:
Tests, assignments, cases---------------------------30%
Mid- semester examination------------------------30%
Final examinations---------------------------------40%
Total--------------------------------------------------100%
SELECTED REFERENCES
1. S.David Spiceland intermediate accounting 3rd edition, 2001
2. Dyckman Dukes Davis intermediate accounting 4th edition, 1998
3. Kermit D.Larson, Essentials of Financial Accounting, 1997
4. Daniel G. Short, Financial accounting, 2001
5. Dyckman, Thomas R., Intermediate Accounting 3rd edition, Irwin, Inc, 1995
6. Mosich, A.N. and E.John Larsen, Intermediate Accounting 5 th edition, MC Graw-
Hill company, 1982
7. Kieso, D.E. , Intermediate Accounting, Toronto; John Wiley and Sons, 1991
8. Larsen, Financial Accounting, 6th edition, Irwin, Inc. 1995
9. Needles, Belverd E. (Jr), Financial Accounting, 5th edition, Houghton