Course info

Like any other profession, accountancy has a rule that govern its practice. These are normally, in order for the consistency to be exhibited, enshrined in a framework. Every system has users; likewise the output of the process of financial accounting have interested users. These outputs must have characteristics that make them useful. Accounting is simply defined as the language of business. Like all languages, accounting is a man-made means of communicating certain information. People in the business world such as, Shareholders, Managers, Bankers, and Investors use accounting information. Accounting information describes the events that make up the day-to-day existence of every business. Accounting information is also used for controlling the use of the resources owned by a business. It is also used for measuring the performance of a business entity.

Course objectives

At the end of this Module/Course unity a student will be able to:

• Understand the concept of accounting and its role
• Discuss the categories of persons who uses accounts and their information needs
• Explain qualitative characteristics of accounting information
• Understand and demonstrate the accounting equation
• Draw up simple balance sheet after different transactions have occurred.
• Understand and demonstrate the concept of double entry and how it follows the rule of the accounting question
• Be able to record transactions following the double entry rule
• Explain the subsidiary books and sources of accounting information
• Prepare a trial balance and a simple balance sheet there from
• Draw up a set of financial statements from a trial balance plus additional information
• Amend the cash book for any errors or omission
• Prepare statement reconciling the amended cash book balance with the bank statement balance