COURSE SYNOPSIS

This course aims to introduce students to the basic knowledge and principles of
financial accounting. Financial accounting is also known as the language of
business. Students will be exposed to the basic accounting principles, types and
the preparation of financial statements and also the interpretation of financial
statements. Through accounting, students will be able to understand economic
events that effect businesses. Although this is only an introductory course in
financial accounting, this course is sufficient to provide an avenue for students to
understand and use basic accounting concepts for making knowledgeable
business decisions.

School of Management
BACHELOR OF MANAGEMENT

At the end of this course, students should be able to:

Semester I, Academic Session

2013/14

Understand the basic concepts and accounting principles.

Analyze economic effects of transactions on businesses.
Understand the meaning and functions of the journal, ledger and trial
balance.
Able to record (report) transactions, posting of transactions and prepare
financial statements (Income Statement, Statement of Financial Position
(or Balance Sheet) and Statement of Cash Flows).
Understand accounting related to short-term investments, inventory
valuation, plant and intangible assets (including depreciation), short-term
liabilities and long-term liabilities.
Understand the differences in accounting for sole proprietor, partnership and
companies.
Understand decision-making based on financial statement information.
Able to interpret and analyze financial statements.

COURSE
OUTLINE
ATW 111 FINANCIAL
ACCOUNTING LECTURE: TUES. (2.00
P.M. 3.50 P.M.)

COURSE EVALUATION

LECTURE VENUE: DK W

Coursework: consisting
Quizzes (5%) & project (15%)
Mid-semester test
Final examination
Total

LECTURER: DR CHEE HONG KOK

ROOM: 111, SCHOOL OF MANAGEMENT BUILDING
OFFICE TEL.: 04-6533354

E-mail:
hkchee@usm.my

40%
20
20
60%
100%

ATTENDANCE
Students must fulfill at least 80% attendance in class.
Those who d o n o t m e e t this a t t e n d a n c e requirement w i l l NOT be
allowed to sit for the final examination.
MAIN TEXTBOOK
Phillips, F., Libby, R. and, Libby, P. A. (2013),
Fundamentals of Financial Accounting, MGraw-Hill. (PLL)
OTHER REFERENCE BOOKS
Horngren, C.T., Sundem, G. L., Elliott, J. A. and Philbrick D. R. (2012),
Introduction to Financial Accounting, 10th Edition, London, Pearson.
Waybright, J., and Kemp, R. (2010), Financial Accounting, 1st Edition,
New York, Pearson.
Harrison, W.T. Jr. and Horngren, C.T. (2008). Financial Accounting, 7th Edition,
New Jersey, Pearson Prentice Hall. (HH)
Short, D.G, Libby, R and Libby, P.A. (2007), Financial Accounting, A Global
Perspective, 5th Edition, New York, McGraw-Hill.
Williams, J.R., Haka, S.F., Bettner, M.S. and Carcello, J.V. (2010),
Financial Accounting, 14th Edition, New York, McGraw-Hill.

Website for project:

www.klse.com.my or www.bursamalaysia.com

Week/Date

COURSE CONTENTS
Week/Date

Topics

Business Decisions & Financial Accounting

(Chapter 1, PLL)

10.9.2013
Week/Date

11
19.11.2013

2
17.9.2013
12
26.11.2013

Organization forms
Topics
Accounting for business
decisions
The
Basic Accounting
Equation
Receivables,
Bad Debt
Expense and Interest Revenue
Financial
(Chapter statements
8, PLL)
Balance Sheet
Accounts receivable and bad debts
Methods
of estimating
The Balance
Sheet bad debts
Notes
receivable
(Chapter 2, PLL)and interest revenue
Long-Lived
Tangible
assets & Intangible Assets
Building a Balance
Sheet
(Chapter
9,
PLL)
Transactions and other activities
Analyze transactions

Definition
classification
Record andand
summarise
Tangible assets
Debit/credit
framework
Intangible assets
.

3
13
24.9.2013
3.12.2013

17.12.2013

16
17 - 19

8.10.2013

6
15.10.2013

Course round-up
REVISION WEEK (21.12.2013 29.12.2013)
FINAL EXAMINATION (30.12.2013 17.1.2014) 3 WEEKS

Internal Control, Cash and Merchandise Sales

(Chapter 6, PLL)
Operating cycles
Internal control
Controlling and reporting cash
Controlling and reporting merchandise sales
Gross profit analysis
Measuring & Evaluating Performance
(Chapter 13, PLL)

Horizontal, vertical and ratio analyses

Horizontal, vertical and ratio computations
Horizontal, vertical and ratio interpretations

7
22.10.2013

Statement of Cash Flows

(Chapter 12, PLL)

Classifying cash flows

Relationship with other financial statements

Preparing the Statement of Cash Flows

Evaluating cash flows

The Income Statement

Stockholders Equity
(Chapter 3, PLL)
(Chapter 11, PLL)

Income Statement Accounts

Corporate
Cash basisownership
accounting
Equity
debt financing
Accrualversus
basis accounting
Common
stock Accounting
transactionsEquation
The Expanded
Stock
dividends
stock splits
Unadjusted Trial and
Balance
Preferred
stockprocess
The recording
Retained earnings
Adjustments, Financial Statements and Financial Results
4
(Chapter 4, PLL)
Liabilities
1.10.2013
14
Why
adjustments
(Chapter
10, PLL)are needed
10.12..2013 Making required adjustments
Preparing
Measuring adjusted
liabilities Trial Balance & Financial Statements
Closing
temporary accounts
Current liabilities
Long-term liabilities
Contingent liabilities
15

Topics

8
29.10.2013

9
10

Inventories and Cost of Goods Sold

(Chapter 7, PLL)
Types of inventories
Balance Sheet and Income Statement Reporting
Inventory costing methods
Lower of cost or market (LCM)
Recording inventory transactions
MID SEMESTER BREAK (2.11.2013 - 10.11.2013)
MID-SEMESTER TEST (date to be confirmed later)

20 - 23

SEMESTER BREAK (18.1.2014 16.2.2014) - 4 WEEKS

* PLL refers to Phillips, Libby and Libby (2013).