Here, on this page, you can find the brief notes of Financial Accounting I according to the syllabus of Pokhara University.
You can easily access them by clicking the links below for the notes of Financial Accounting I.
Unit I: The Conceptual Foundation of Accounting
- Accounting as a language of business
- forms of business organizations
- types of activities performed by a business organization
- Users of accounting information: internal and external
- Qualitative characteristics of accounting information
- The accounting profession
- Role and activities of an accountant
- The accounting framework – basic accounting assumptions, concepts, GAAP, definitions, and terminology
- Accounting information system in modern business organizations
- Use of computers in the accounting process
Unit II: Basics of Corporate Reporting
- Legal requirements of accounting
- provisions of Company Act relating to accounting
- introduction to accounting standards (IFRS and NAS)
- annual report, major components
- basic components of financial statements
- basic financial statements
- Income Statement, Balance Sheet
- Statement of Changes in Equity
- Cash Flow Statement
- Accounting Policies and Note
Unit III: Processing and Recording Business Transactions
The Basis for Recording Transactions:
- Sources of accounting information
- External and internal events
- Accounting transaction
- the accounting equation and analysis of transactions
- The role of the source document
The Double Entry System:
- Debits and credits and their rules
- The journals
- T-Account; General ledger
- Normal account balances
- Objectives and preparation of trial balance
- Use of excel in processing business transact
Unit IV: Accrual Accounting and Adjustments
Adjusting Entries:
- The revenue recognition principle
- matching principle
- Cash versus accrual basis of accounting
- The need for adjusting entries
- Types of adjusting entries
- Journalizing adjusting entries
- Effects of failing to prepare to adjust entries
- Preparation of adjusted trial balance
Worksheet and Accounting Cycle:
- Preparation of ten and twelve column work-sheet
- Preparing financial statements from the worksheet
- The closing process
- Post-closing trial balance
- Completion of the accounting cycle.
Unit V: Preparation of Financial Statements
Income Statement:
- Concepts and major components; revenues, cost of goods sold, gross profit, net income, and retained earnings
- Statement of retained earnings
- Revenues
- Preparation of income statement with vertical multi-step form
Balance Sheet:
- Concepts and major components;
- assets, liabilities, and stockholders’ equity
- preparation of balance sheet under vertical- classified format
- use of computers in preparation of income statement and balance sheet.
Cash Flow Statements:
- Cash flows and accrual accounting
- purpose of the statement of cash flows
- financing, investing and operating activities
- formats of the statement of cash flows
- preparation of cash flow statement using the direct method
- Reconciling cash flow under operating activity using an indirect method
- use of computers in preparation of cash flow statement
Unit VI: Accounting for Cash and Cash Equivalents
- Components of cash and cash equivalents
- preparation of the bank reconciliation statement and the need for adjustments to accounting records
- petty cash, balance sheet presentation of cash and cash equivalent
- Internal control system; Cash control: receipt and disbursements
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