Outcomes
By the end of this training course, trainees will be able to :
- Discuss the basic definition and principals of financial accounting and the basic equation of accounting.
- Specify the accounting cycle.
- Journalize and post the financial transactions of an entity.
- Prepare adjusting journal entries and extracting an adjusted trial balance.
- Prepare the financial statements of the entity.
- Specify the inventory cycle, inventory systems and how to journalize the inventory transactions.
- Identify the cost flow assumption of inventory valuation.
Target Group
- Corporate staff and personnel who has no knowledge in accounting concepts but could have a need to acquire that knowledge such as:
- IT Personnel
- Human Recourses Personnel.
- Sales Department Staff.
- Procurement and Warehousing Staff.
- Other Staff who interact with accounting and finance department.
Contents
- Basic principles:
- Defining the financial accounting profession and it’s principles and assumptions.
- State the accounting equation, and define its components (Assets, Liabilities and Owners’ Equity).
- Analyze the effects of business transactions on the accounting equation.
- The recording process:
- Describe how accounts, debits, and credits are used to record business transactions.
- Indicate how a journal is used in the recording process.
- Explain how a ledger and posting help in the recording process.
- Prepare a trial balance.
- Adjusting the accounts:
- Explain the accrual basis of accounting and the reasons for adjusting entries.
- Prepare adjusting entries for deferrals.
- Prepare adjusting entries for accruals.
- Preparing adjusted trial balance.
- Completing the accounting cycle and financial statements:
- Prepare closing entries and a post-closing trial balance.
- Preparing the financial statements.
- Statement of financial position (balance sheet).
- Statement of income.
- Statement of changes in owners’ equity.
- Inventory accounting:
- Describe merchandising operations and inventory systems.
- Record purchases and sales under a perpetual inventory system.
- Record purchases and sales under a perpetual inventory system.
- Understanding the cost flow assumptions (FIFO, LIFO, Weighted Average and Specific Identification).
- Fixed Assets Accounting:
- Determining the initial cost of fixed assets.
- Understanding and calculating the depreciation cost and determine the net book value of the assets.
- Derecognition of fixed assets accounting.
- Revenue Recognition Principle:
- Revenue recognition of goods (at point of sale).
- Revenue recognition of services.
- Accounting of sales returns and sales discounts.
- Account Receivables Accounting:
- Recognition of account receivables.
- Valuation of account receivables (Including accounting for bad debt expenses).