Accounting is the Language of Business
AA101 – ACCOUNTING I
Academic Year
:
2010-2011
Course
Coordinators
:
Dr Harshini Pushpika
Siriwardane
Mr. Hu Kin Hoi Billy
Pre-requisites
:
Nil
No. of AUs
:
Semester
:
Other Instructor(s)
:
4
2
Course Description and Scope
Accounting is the language of business. This course aims to provide students with a broad understanding of business, the role of accounting in business, the analysis, recording, summarizing, and reporting of business transactions, and the use of information for planning, performance measurement and control.
The course is divided into three sections. The first section aims to enhance the students’ understanding of business and the role of accounting in business. It covers why businesses exist, and how businesses create value for their stakeholders. Using the value chain analysis, and the five forces model, we examine the impact of external environment on the success of businesses. This section also introduces the contract theory and examines the relationships between a business and its stakeholders, and the information requirements of the stakeholders in designing contracts between the firm and themselves.
The second section aims to provide a sound understanding of how business activities are measured and communicated to stakeholders through the accounting information system. It covers the elements of financial statements, double entry bookkeeping system, accounting for financing, investing and operating activities and the preparation of income statement and classified balance sheet.
The final section of the course focuses on the use of information for decision making, planning, performance measurement and control. It covers financial statements analysis, cost-volume-profit analysis, the use of relevant information in decision making scenarios, budgeting, responsibility accounting and the use of balanced scorecard to improve performance evaluation. Students will also
learn
Academic Year
:
2010-2011
Course
Coordinators
:
Dr Harshini Pushpika
Siriwardane
Mr. Hu Kin Hoi Billy
Pre-requisites
:
Nil
No. of AUs
:
Semester
:
Other Instructor(s)
:
4
2
Course Description and Scope
Accounting is the language of business. This course aims to provide students with a broad understanding of business, the role of accounting in business, the analysis, recording, summarizing, and reporting of business transactions, and the use of information for planning, performance measurement and control.
The course is divided into three sections. The first section aims to enhance the students’ understanding of business and the role of accounting in business. It covers why businesses exist, and how businesses create value for their stakeholders. Using the value chain analysis, and the five forces model, we examine the impact of external environment on the success of businesses. This section also introduces the contract theory and examines the relationships between a business and its stakeholders, and the information requirements of the stakeholders in designing contracts between the firm and themselves.
The second section aims to provide a sound understanding of how business activities are measured and communicated to stakeholders through the accounting information system. It covers the elements of financial statements, double entry bookkeeping system, accounting for financing, investing and operating activities and the preparation of income statement and classified balance sheet.
The final section of the course focuses on the use of information for decision making, planning, performance measurement and control. It covers financial statements analysis, cost-volume-profit analysis, the use of relevant information in decision making scenarios, budgeting, responsibility accounting and the use of balanced scorecard to improve performance evaluation. Students will also
learn
References: (NTU Library Call Number: HD30.22.B849 2009) 2) (NTU Library Call Number: HF5657.4.G242 2010) 3) (NTU Library Call Number: HD5635.L694 2009) AA101 S2 1011 Course Outline Lawrence A. T., Weber J. (2011), “Business and Society: Stakeholders, Ethics, th Public Policy”, 13 Edition, McGraw-Hill (NTU Library Call Number: HD60.L419 2011) Spiceland J. D., Thomas W., Herrmann D. (2009), “Financial Accounting”, 1st Edition, McGraw-Hill. (NTU Library Call Number: HD5657.4.Z72 2011) Newspapers: