ACCOUNTING AS A

SYSTEM
SECTION 2
CONCEPTS - SYLLABUS

1. outline the concepts and conventions that guide the accounting process;
(a) accounting concepts and conventions; and,

(b) principles which guide the accounting process:

(i) accrual and matching;

(ii) prudence (conservatism);

(iii) consistency; and,

(iv) separate entity.

ACCOUNTING CONCEPTS

Accounting Concepts are the assumptions on the basis of which financial

statements of a business are prepared. The word concept means idea
or notion. Concepts are the basic assumptions and conditions on
which accounting principles are formed.
ACCOUNTING CONCEPTS
ACCOUNTING CONCEPTS
PRUDENCE CONCEPT
PRUDENCE CONCEPT
CONSISTENCY CONCEPT
ACCRUAL CONCEPT
ACCRUAL CONCEPT
SEPARATE ENTITY PRINCPLE
ACCOUNTING CYCLE-SYLLABUS

 describe the accounting cycle;

 The accounting cycle with its diagrammatic representations.
ACCOUNTING CYCLE
ACCOUNTING CYCLE
ACCOUNTING CYCLE
ACCOUNTING CYCLE

 Review notes from the Lamorell Text Chapter 2 (Accounting as a Process)

 To send copy of chapter
LETS DRAW THE ACCOUNTING CYCLE

Step 1
Analyzing
Source
Documents

Step 2
Step 7 Post
Recording
Closing Trial
Books of
Balance
Prime Entry

Step 6
Income Step 3
Statement Posting to
and Balance Ledger
Sheet

Step 5 Step 4
Making Preparing
Adjusting the Trial
Entries Balance
ACCOUNTING CYCLE
ACCOUNTING CYCLE
ACCOUNTING CYCLE
TYPES OF BUSINESS ORGANISATIONS -
SYLLABUS

 appraise the accounting features of various types of business

organizations;
Types of business organisations:
 (a) Sole Traders;
 (b) Partnerships;
 (c) Corporations (Limited Liability companies);
 (d) Cooperatives; and,
 (e) Non-Profit Organisations.
TYPES OF BUSINESS ORGANISATIONS
TYPES OF BUSINESS ORGANISATIONS
TYPES OF BUSINESS ORGANISATIONS
TYPES OF BUSINESS ORGANISATIONS
TYPES OF BUSINESS ORGANISATIONS
MAIN FINANCIAL STATEMENTS -
SYLLABUS
 identify the main financial statements prepared by various business organisations;
 Financial Statements:
 (a) Income Statement (Trading and Profit and Loss A/C); /Statement of
Comprehensive Income
 (b) Income and Expenditure A/C;
 c) Balance Sheets; and, /Statement of Financial Position
 (d) Cash Flow Statements.
 (Teachers are not expected to teach how to prepare the financial statements at
this stage. However, the Income and Expenditure A/C should only be identified and
the purpose stated). See Section 9.
MAIN FINANCIAL STATEMENTS
MAIN FINANCIAL STATEMENTS
TECHNOLOGY IN ACCOUNTING -
SYLLABUS

 assess the role and impact of technology on the accounting process;

 (a) accounting processes which could be readily performed by the use of the
computer, for example, payroll, inventory control, receivables and payables
schedules;

 (b) software currently being used in Accounting; and,

 (c) advantages and disadvantages of using the computer in Accounting.

TECHNOLOGY IN ACCOUNTING
TECHNOLOGY IN ACCOUNTING
TECHNOLOGY IN ACCOUNTING
RESEARCH PROJECT

 How is the computer used in accounting for the following departments:

Payroll, Inventory Control, Receivables and Payables Schedules?

 Describe three advantages and three disadvantages of using the computer in

accounting?

 Describe what accounting software do businesses use? Use Two such as

Peachtree accounting and QuickBooks.