This course introduces students to the fundamental principles and procedures of accounting. Students will develop financial analysis and decision-making skills that will assist them in future studies and/or career opportunities in business. Students will acquire an understanding of accounting for a service and a merchandising business, computerized accounting, financial analysis, and ethics and current issues in accounting.
Financial Accounting Fundamentals
Course Type: University/College
Credit Value: 1
Unit 1: Introduction to Accounting for a Service Business
Students are introduced to the discipline of accounting and learn the skills necessary to complete the accounting cycle for a service business. In addition, students explore career opportunities in accounting. The fundamental accounting equation, although not specifically mentioned in the expectations, is an integral part of any introductory accounting course.
Unit 2: Accounting for a Merchandising Business
Students learn the key role of inventory in a business that sells products not services. They learn how inventory impacts the accounting entries that are made, the statements that are produced, and the adjusting and closing process.
Unit 3: Business Structures and Accounting Implications
Students learn the role of the owner in the different business structures. They learn the differences in the accounting for equity required in a sole proprietorship, a partnership or corporation. Particular focus is given to the Partnership in its various forms
Unit 4: Ethical Practices in Accounting
This unit explores the regulatory, moral, and ethical framework within which accountants operate. Through case study analysis students understand and apply the concept of professional judgement and rules of professional conduct. In addition, students identify internal control weaknesses and offer solutions for improvement. Case analysis may include: potential abuses of accounting data, internal control weaknesses, the implications of global competition, and the impact of technology.
Unit 5: Technology and Financial Statement Analysis
Students assess the effect of technology on accounting. The use of computers in BAF3M is not only essential but also mandatory for Activity 1 – Using Accounting Software. The writers also recommend the use of spreadsheet software for Activities 2 and 3. Also note that the use of technology in this unit can be approached in one of two ways: as a separate unit, or integrated with Units 1 through 4. The integrated approach addresses the constraint that lab time might only be available in one to two day increments.