AC1101 Accounting I

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. This section also introduces stakeholder theory, examines the stakeholders? interests in the businesses; and the information needs of these stakeholders.

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 introduces agency and contract theories and the use of organizational architecture to minimize agency costs. It also focuses on the use of accounting 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.