AQUINAS UNIVERSITY OF LEGAZPI

College of Business, Management and Accountancy

A.Y. 2016 2017
Course Outline
Subject Details
Subject:
Schedule:
Faculty:
SY / Term:

Acctg 101 Basic Accounting, Part 1

3BSHM1, MW, 7:30AM-10:30AM, Cocofed1
Esmena, Jessica C.
Second Semester, 2016 2017

Course Description
This course provides an introduction to accounting, within the context of business and business decisions. Students obtain
basic understanding of the principles and concepts of accounting as well as their applicability and relevance in the national
context and learn how to use various types of accounting information found in financial statements and annual reports.
Emphasis is placed on understanding the reasons underlying basic accounting concepts and providing students with an
adequate background on the recording, classification, and summarization functions of accounting to enable them to
appreciate the varied uses of accounting data.

Course Outline
1.

Introduction to accounting
1.1
Definition, purpose, nature, functions, scope and objectives of accounting
1.2
Different branches of accounting (financial, managerial, etc)
1.3
The classical notion of stewardship
1.4
Users of accounting information (internal vs. external users)
1.5
Double entry bookkeeping
1.6

History
1.6.1
1.6.2
1.6.3
1.6.4
1.6.5
1.6.6
1.6.7

of accounting:
The Florentine vs. the Venetian approach to reporting
Savory and the Napoleonic Commercial Code
The industrial revolution and the share-issuing company
The arrival of income taxation and the conflict with financial accounting
Schmalenbach and the charts of accounts
The rise of the group of companies and the need for consolidated accounts
Internationalization of markets and reporting

1.7

Accounting variations among countries

1.7.1 Why practices differ from one country to another even though the same set of basic principles is
followed
1.7.2
The linkage of tax laws and accounting principles requirements for enterprises in certain countries
1.7.3 Differences in the degree of development of the capital markets in countries and their effect on the
development and use of generally accepted international principles of accounting

1.8

Basic professional values and ethics

1.8.1 Reputation
1.8.2 Integrity and due care
1.8.3 Competence
1.8.4 Objectivity
1.8.5 Client relations and confidentiality
1.8.6 Reporting breaches of conduct
1.8.7 Unlawful activities
1.8.8 Fees and remuneration
1.8.9 Publicity and advertising
1.8.10 Disciplinary procedures

1.9
1.10

Forms of business organization and their activities (e.g., financing, investing and operating)
Accounting concepts and principles
Page 1 of 3

AQUINAS UNIVERSITY OF LEGAZPI

Basic Accounting Course Outline
1.11
1.12
1.13
1.14
1.15

2.

The basic financial statements of business organizations

Relationships among the financial statements
Definition, classification and examples of assets, liabilities, capital or owners equity, income, and expenses
The accounting profession: career opportunities
Specialized accounting fields (public accounting, private accounting, government accounting, accounting
education)

Introduction to accounting information system

2.1
Features of an effective information system
2.2
Overview of an accounting information system
2.3
The three stages of data processing: A comparison of computerized

and manual accounting system

3.

Analyzing and summarizing business transactions

3.1
Definition of business transactions and source documents
3.2
Summary of business activities (financing, investing, operating)
3.3
The accounting equation
3.4
Analyzing and accounting for business transactions
3.5
Presentation of results of routine transactions by preparing the Basic Income statement, Owners equity
statement, Balance sheet, and Statement of cash flows)
3.6
Relationship among the financial statements

4.

Recording transactions of a service company (sole proprietorship)

4.1
Double-entry accounting and accounting systems: Florentine vs. Venetian approach to reporting, Savory and
Napoleonic Commercial Code, and Schmalenback
4.2
The account and T-account
4.3
Rules of debit and credit
4.4
Chart of accounts and normal balances of an account
4.5
Recording in two-column journal (initial investment by owner, changes in assets, liabilities and capital,
changes in income and expenses, withdrawals of owner)
4.6
Posting to the ledger
4.7
Preparing the trial balance

5.

Measuring business income

5.1
Accrual-basis accounting vs. Cash-basis accounting
5.2
Accounting period
5.3
Revenue principle
5.4
Matching principle
5.5
Time-period concept
5.6
Overview of the adjusting process
5.7
Adjustments for prepayments (deferrals), accruals, uncollectible accounts receivable, depreciation of
property, plant and equipment
5.8
Preparation of the adjusted trial balance and financial statements
5.9
Use of accounting information for decision making

6.

Completing the accounting cycle

6.1
Overview of the accounting cycle
6.2
Preparing an accounting worksheet
6.3
Using the worksheet
6.4
Preparing financial statements from the worksheet [income statement, owners equity statement, balance
sheet, cash flow statement (simple cash receipts & disbursements statement)]
6.5
Journalizing and posting adjusting entries
6.6
Journalizing and posting closing entries
6.7
Preparing the post-closing trial balance
6.8
Preparing the reversing entries

7.

Recording merchandising business transactions

7.1
Merchandising operations (Nature and operating cycle of a merchandising business, business documents)

Page 2 of 3

AQUINAS UNIVERSITY OF LEGAZPI

Basic Accounting Course Outline
7.2

7.3
7.4
7.5
7.6
7.7
7.8

Recording merchandising business transactions in a two-column general journal (sales revenue, sales returns
and allowances, sales discounts, purchases of merchandise, purchases returns and allowances, purchase
discounts, transportation costs)
Inventory systems (perpetual and periodic inventory procedures)
Determination of merchandise inventory, costs of good sold and gross margin
Worksheet preparation
Adjusting and closing process for a merchandising business
Financial statements of a merchandising business
Use of accounting information in decision making

8.

Recording transactions in special journals

8.1
Nature and use of control accounts and subsidiary ledgers
8.2
Types of special journals (sales journal, purchases journal, cash receipts journal, cash disbursements
journal)
8.3
Recording of financing, investing and operating transactions in the special journals and general journal

9.

Manufacturing operations
9.1
Nature of manufacturing business
9.2
Transactions related to the manufacturing process
9.3
Elements of manufacturing costs
9.4
Preparation of financial statements of a manufacturing enterprise (balance sheet, income statement,
statement of cost of goods manufactured and sold)

Grading System
Requirement/Assessment Task
Quizzes
Activities/Seatwork
Class participation (Recitation and Board work)
Attendance
Major exams (Prelim, Midterm and Final)
Total

Maximum Points
40%
10%
10%
10%
30%
100%

Text, Materials and References

Basic Accounting Made Easy by Win Ballada 2016 Edition

Page 3 of 3