Principles of Accounting I Module-3.doc - JIMMA UNIVERSITY...

JIMMA UNIVERSITY
FACULTY OF BUSINESS & ECONOMICS
SCHOOL OF CONTINUING AND DISTANCE
STUDIES
DISTANCE EDUCATION MODULE
FOR
PRINCIPLES OF ACCOUNTING PART I
(ACCT 201)
Prepared By: Tezera Selamu ( MCom, BA)
Arega Seyoum (MBA, BA)
November, 2008
Jimma, Ethiopia
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MODULE OUTLINE
UNIT ONE:
Basic Structure of Accounting [ By Tezera Selamu ]
UNIT TWO:
The Accounting Cycle [ By Tezera Selamu ]
UNIT THREE :
Completion of the Accounting Cycle
[ By Tezera Selamu ]
UNIT FOUR:
Accounting for a Merchandising Business
[ Arega Seyoum and Tezera Selamu]
UNIT FIVE:
Accounting Systems Desgn [ BY Arega Seyoum ]
UNIT SIX:
Cash and Cash Equivalents [ By Arega Seyoum ]
UNIT SEVEN:
Receivables [ By Arega Seyoum ]

UNIT ONE: BASIC STRUCTURE OF ACCOUNTING
List of Contents:
 Unit Objective
 Introduction
1.1 Accounting As an Information System
1.2 Profession of Accountancy
1.3 Specialized Accounting Fields
1.4 Accounting Principles and Practice
1.5 Business Transactions and the Accounting Equation
1.6 Financial Statements
1.7 Model Examination Questions
 List of Reference Materials
Unit Objective
The unit aims at discussing some of the fundamental concepts of accounting. Detail
discussions and explanations will be made on such issues like: accounting as information
system, profession of accountancy, accounting principles and practices, business transaction
and the accounting equation, etc. Thus, after the completion of this unit you will be able to:
 Explain accounting as an information system
 Describe the profession of accounting and its specialized fields
 Discuss the development of accounting principles and their relation to practice
 Describe business transaction
 Identify the accounting equation and its basic elements
 Analyze the effect of business transactions on the basic accounting equation.
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 Illustrate the effect of business transactions
 Describe the financial statements of a sole proprietorship and a corporation.
Introduction
Have you ever known the term financial information system ? What are the processes
involved in the system?
1.1. Accounting as an Information System
Why accounting has been called the language of business ?