Financial Accounting

     Financial Accounting Introduction

1. Users of Financial Statements
2. Accounting Equation 
3. Financial Transaction
4. Accounting Journal
5. Account Format
6. Accounting Ledger
7. Asset Accounts
8. Liability Accounts
9. Equity Accounts
10. Revenue Accounts
11. Expense Accounts
12. Debit Credit Rules

     Accounting Principles

1. Accrual Concept
2. Going Concern Concept
3. Business Entity Concept
4. Monetary Unit Assumption
5. Time Period Principle
6. Revenue Recognition Principle
7. Full Disclosure Principle
8. Historical Cost Concept
9. Matching Principle
10. Relevance and Reliability
11. Materiality Concept
12. Substance Over Form
13. Prudence Concept
14. Comparability Principle

     Financial Accounting Cycle

1. Journal Entries
2. Ledger Accounts
3. Unadjusted Trial Balance
4. Adjusting Entries
5. Adjusted Trial Balance
6. Closing Entries

     Financial Statements

1. Income Statement
2. Balance Sheet
3. Statement of Cash Flows
4. Cash Flow: Direct Method
5. Cash Flow: Indirect Method
6. Statement of Changes in Equity
7. Notes and Other Disclosures 

     Accounting for Inventories

1. Perpetual vs Periodic
2. Perpetual Journal Entries
3. Periodic Journal Entries
4. Gross vs Net Method
5. FIFO LIFO AVCO Introduction 

     Non-Current Assets

1. Property, Plant and Equipment
2. Straight-line Depreciation
3. Declining Balance Depreciation
4. Units of Production Depreciation
5. Intangible Assets
6. Impairment of Assets
7. Revaluation of Fixed Assets
8. Disposal of Fixed Assets 

     Financial Ratio Analysis

1. Advantages and Limitations
2. Gross Margin Ratio
3. Operating Margin Ratio
4. Return on Equity
5. Return on Assets
6. Current Ratio
7. Quick Ratio (Acid Test)
8. Cash Ratio
9. Debt Ratio
10. Inventory Turnover Ratio
11. Receivables Turnover Ratio
12. Days Sales Outstanding

     Bank Reconciliation Statements

• 1 Terminology used
  • 1.1 Unpresented cheques
  • 1.2 Undeposited cheques
  • 1.3 Dishonoured cheques
  • 1.4 Bank accounts and direct transfers
    • 1.4.1 Standing orders
    • 1.4.2 Direct debits
    • 1.4.3 Credit transfers
    • 1.4.4 Bank charges
    • 1.4.5 Interest
• 2 Bank statements
• 3 Procedure for bank reconciliation
• 4 Bank reconciliation without updating the cashbook

     Control Accounts

• 1 Two control accounts
• 2 Construction of control accounts
• 3 Set-offs
• 4 Memorandum records
  • 4.1 Benefits of maintaining control accounts

     Suspense accounts and the correction of errors 

• 1 Example
• 2 Example
• 3 Errors affecting profits
  • 3.1 Example