Principles of Accounting II (ACPF202); Module IPublic Service College of Oromia (PSCO)Page1Course IntroductionDear student welcome to the course Principle of Accounting II. Thecourse is a continuation of what you have discussed in Principle of Accounting I. Itconsists of two modules.Module 1 covers the concepts of Accounting for Merchandising Inventory, , PayrollAccounting in the context of Ethiopian, and the Generally Accepted AccountingPrinciples.Module 2 Describes Accounting for Partnership and Corporation,You need to read both modules thoroughly to understand and complete this courseeffectively. The text contains a lot of activities. There are also self-test questions atthe end of each unit. They are designed to assist you analyze and grasp the ideas andissues discussed in the unit. You are strongly advised to attempt these activities andquestions by yourself before referring to their answers.Objectives:At the completion of this course, you will be able to:Discuss accounting for inventories.Explain accounting for plant assets.Identify the differences among accounting for plant assets, intangibles and naturalresourcesExplain the components of payroll accounting.Compute and record payroll related transactions.Discuss the need for Generally Accepted Accounting principles.Discuss the nature and accounting for partnerships.Explain the nature and accounting for corporations.Identify the difference between accounting partnerships and corporations.
Principles of Accounting II (ACPF202); Module IPublic Service College of Oromia (PSCO)Page2Module IntroductionThis is the first module of Principle of Accounting II. This module dealswith the Accounting for Inventories; Accounting for Plant Assets and Intangibles;Accounting for Payroll in the Context of Ethiopia; and the Generally AcceptedAccounting Principles,This module consists of four units: Unit one discusses about accounting for merchandizinginventories; unit two discusses about accounting for plant assets and intangible assets; Unit threedescribes the payroll accounting in the context of Ethiopia; and unit four is aboutGenerallyAccepted Accounting Principles (GAAPs)..Within each unit, we have provided you learning activities and self-test questions.You are expected to attempt both the learning activities and self-test questions. Wehave also provided the answers for the activities and self-test questions at the end ofthe module. However, we advise you not to refer to the answers before you try it.Objectives:After completing the study of this module, you will be able to:Explain accounting for merchandising inventories.Differentiate the accounting for plant assets and intangible assetsDescribe the procedures in accounting for payroll in Ethiopian context;Explain the need and concepts of generally accepted accounting principles(GAAP) and its practices.