COLLEGE OF BUSINESS ADMINISTRATION- AL KHARJ
DEPARTMENT OF ACCOUNTING
SALMAN BIN ABDULAZIZ UNIVERSITY
Course Code & Title:ACCT-103 - Principles of Financial Accounting
Year: 2014
Semester: third
Number of Credits: 3
INSTRUCTOR: Omar Bagais
Email: o.bagais@sau.edu.sa
Rationale:
This course is designed to provide the student with an introduction to financial
accounting basics and procedures, and emphasis is placed on the study of the
accounting system and the financial accounting cycles of service organizations and
merchandising.
Pre-requisites:
N/A
Learning Outcomes:

Knowledge about basic principles and terminologies of financial accounting

Understand about Accounting Systems.

Record and Summarize Accounting Transactions.

Recognise the need of Financial Statements.

Knowledge about Accounting Cycle of Service organization and
Merchandising.
Course Outline:
Accounting in Action: Accounting, Internal and External users, booking distinguished from
accounting, the accounting profession, basic equation of accounting, assets, liabilities,
investment, drawings, revenue, and expenses as a building block, transaction identification
process.
Recording process of Accounting: The recording process: The accounts, basis form of
account, debit and credit, double entry system, debit and credit effects-assets and liabilities,
nominal balance-assets and liabilities, owner capital, owners drawing, revenue and
expenses. The recording process: journal, journalizing, technique of journaling, simple and
compound journal entries. The ledger, posting journal entry, trial balance and its limitations.
Adjusting the Accounts: time period assumption, accrual basis of accounting, revenue
recognition principles, the matching principles, GAAP relationship in revenue reorganization,
adjustment entries: Types of adjusting entries, adjustment entries for prepayments, prepaid
expenses, depreciation, unearned revenues, accrual, accrued revenues, accrued expenses,
adjusted trial balance, preparation of the income statement and the owner's equity
statement from the adjustment trial balance.
Completion of the Accounting Cycle: worksheet, form and procedure for a work sheet, steps
in preparing a work sheet, preparing of financial statement: income statement, owner's
equity statement, balance sheet, temporary versus permanent account, closing entries,
posting of closing entries, post closing trial balance, balance sheet classification: Current
Assets, Investment, property plant and equipment, intangible assets, current liability, long
term liabilities, owner's equity.
Accounting for Merchandising Operations:merchandising company, measuring net income,
income measurement process for a merchandising company, operating cycle for a service
company and a merchandising company, inventory system, perpetual verses periodic, cost
of good sold, purchases of merchandise, purchase returns and allowances, accounting for
freights, purchase discounts, Sales transactions, sales return allowances, sales discounts,
multi steps income statement,, worksheet for a merchandising company.
Required Text:
Accounting Principles, 11th Edition International Student Version by Donald E. Kieso, Paul
D. Kimmel and Jerry J. Weygandt
Suggested Readings:
1. Fundamental Accounting Principles: Wild; Larsen; Chappeta, Mc.Graw
Hill, Edt.18th.
2. Financial Accounting IFRS 2010 Updated International Student Version, Weygandt,
Kimmel &Kieso , John Wiley , 2011
3. Accounting principles II, Minbiole, Elizabeth A, IDG Books, 2012.
4. Accounting principles ,Weygandt, Jerry J ,D.E. Kieso, and P.D kimmel , John
Wiley& Sons , 2012
Schedule of assessment tasks for students during the semester
Assessment
Assessment Task
(e.g., Essay, Test, Group Project,
Examination.)
Number
of times
Proportion Final
Assessment
(Marks Distribution)
Assignments
5*
15%
Mid Term Examination – 1
1
15%
Mid Term Examination – 2
1
15%
Quizzes
5*
15%
Final Examination
1
Total
-
1
2
3
4
6
40%
100%
*At least
Updated : September 2014