Accounting I & IIModule Details

Course/Module Description:

This course gives students with no previous knowledge of accounting a better understanding of accounting processes and the ability to prepare financial statements for unincorporated and incorporated entities as an attempt to build and expand advance knowledge in Accounting transactions within a hotel or service organization. This course is a review of concepts of how accounting is designed to help management make its most important financial decisions and assist service organizations to run efficiently. It start by reviewing the principles that should guide accounting in order to serve the purpose for which accounting is designed as well as provide more advance approach to management accounting information in order to help hotel managers in a decision making capacity towards control of its operations.

Course/Module Objectives:

The main objectives of the course are:

1. To explain the main principles of accounting, including the accounting equation and the double entry system
2. To expose students to financial statements (i.e. Income Statement, Balance Sheet, cash flows) as well as  post Trial Balance adjustments (depreciation of non-current assets, accruals, prepayments, allowance for doubtful debts
3. To enable students to prepare Bank Reconciliation Statements and explore relevant costs for decision making purposes by explaining budgetary process and preparation a cash budget
4. To provide an in-depth understanding of accounting for inventory, cash, receivables, fixed assets and current liabilities for a sole proprietorship

To expose students to partnerships and accounting for partnerships as well as corporations and accounting for corporations.

Course/Module Learning Outcomes:

After completion of the course students are expected to be able:

1. To open ‘T’ accounts, understand how the double entries are used, record transactions into individual accounts and prepare Trial Balance, Income Statement, and Balance Sheet. Explain how adjustments (e.g. payments, accruals, etc.) affect financial statements
2. To describe the process of recording transactions in a book of original entry as well as prepare bank reconciliation statement
3. To apply correction of errors and depreciation - various methods as well as describe and illustrate the application of internal controls to cash, understand the classification of receivables and the accounting of uncollectible receivables
4. To understand the accounting for fixed and intangible assets, current liabilities, payroll, partnerships and corporations
5. To prepare a Statement of Cash Flows and a cash budget. To explain the budgetary process and analyse and explain budget variances. Discuss management functions relevant to accountants including the identification and application of relevant costs for decision making purposes, determination of the break-even point of a product or group of products and application of production overheads.