COURSE INFORMATION Course Title: INTRODUCTION TO ACCOUNTING

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BUS 132	B	2	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Main Course Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Dr. Jonada Mamo jmamo@epoka.edu.al
Second Course Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Compulsory
Study program: (the study for which this course is offered)	Bachelor in Business Administration (3 years)
Classroom and Meeting Time:	E 313
Code of Ethics:	Code of Ethics of EPOKA University Regulation of EPOKA University "On Student Discipline"
Attendance Requirement:
Course Description:	This course is an introduction to the basic concepts, principles and standards underlying the financial accounting system. The course is designed to give students a thorough background in the basic accounting procedures used to operate a business such as analysing, classifying, and recording and reporting business transactions. The course emphasises a general understanding of the complete accounting cycle and the preparation of the basic financial statements.
Course Objectives:	The aim of this course is to present the fundamental accounting concepts and principles in a logical and clear manner as a preparatory for future business courses. By the end of the course students are expected to be able to analyze and record business transactions and to prepare financial statements.

BASIC CONCEPTS OF THE COURSE

1	The purpose of accounting is to identify, record and communicate the economic events of an organization to interested users.
2	The conceptual framework on which the entire accounting information system is built is based on principles and assumptions.
3	Accounting “links” decision makers with economic activities and with the results of their decisions.
4	Accounting Standards are accounting methods with substantial authoritative support to be used by business entities in preparing external reports for users.
5	Transactions are a business’s economic events recorded by accountants. Transactions and adjusting entries are recorded in the general journal and ledger.
6	Statement of Financial Position: Reports the assets, liabilities, and owner’s equity at a specific date. Lists assets at the top, followed by owner’s equity and liabilities. Is a snapshot of the company’s financial condition at a specific moment in time (usually the month-end or year-end).
7	Income Statement: Reports the revenues and expenses for a specific period of time. Lists revenues first, followed by expenses. Shows net income (or net loss).
8	Owner’s Equity Statement: Reports the changes in owner’s equity for a specific period of time. The time period is the same as that covered by the income statement.
9	Statement of Cash Flows: Give information for a specific period of time. Answers the where did cash come from, what was cash used for and what was the change in the cash balance.
10	Every financial transaction has equal and opposite effects in at least two different accounts. The Accounting Equation: Total assets must equal owner’s equity and total liabilities.

COURSE OUTLINE

Week	Topics
1	Review Syllabus, Summary of Topics and Objectives of Introduction to Accounting Course Accounting consists of three basic activities—it identifies, records, and communicates the economic events of an organization to interested users. As a starting point to the accounting process, a company identifies the economic events relevant to its business. A vital element in communicating economic events is the accountant’s ability to analyze and interpret the reported information. Analysis involves use of ratios, percentages, graphs, and charts to highlight significant financial trends and relationships. Interpretation involves explaining the uses, meaning, and limitations of reported data. Page 4
2	Introduction to Accounting Principles The accounting profession has developed standards that are generally accepted and universally practiced. This common set of standards is called generally accepted accounting principles (GAAP). These standards indicate how to report economic events. The primary accounting standard-setting body in the United States is the Financial Accounting Standards Board (FASB). Measurement Principles, historical cost principle (or cost principle), fair value principle, assumptions etc. Page 8
3	Basic Accounting Equation and Financial Statements The two basic elements of a business are what it owns and what it owes. Assets are the resources a business owns. Liabilities and owner’s equity are the rights or claims against these resources. Claims of those to whom the company owes money (creditors) are called liabilities. This relationship is the basic accounting equation. Assets must equal the sum of liabilities and owner’s equity. Liabilities appear before owner’s equity in the basic accounting equation because they are paid first if a business is liquidated. The accounting equation applies to all economic entities regardless of size, nature of business, or form of business organization. Page 12
4	The Recording Process An account is an individual accounting record of increases and decreases in a specific asset, liability, or owner’s equity item. The term debit indicates the left side of an account, and credit indicates the right side. They are commonly abbreviated as Dr. for debit and Cr. for credit. They do not mean increase or decrease, as is commonly thought. We use the terms debit and credit repeatedly in the recording process to describe where entries are made in accounts. For example, the act of entering an amount on the left side of an account is called debiting the account. Making an entry on the right side is crediting the account. When comparing the totals of the two sides, an account shows a debit balance if the total of the debit amounts exceeds the credits. An account shows a credit balance if the credit amounts exceed the debits. In other words, for each transaction, debits must equal credits. The equality of debits and credits provides the basis for the double-entry system of recording transactions. Page 52
5	The Trial Balance and its Limitations A trial balance is a list of accounts and their balances at a given time. Customarily, companies prepare a trial balance at the end of an accounting period. They list accounts in the order in which they appear in the ledger. Debit balances appear in the left column and credit balances in the right column. The trial balance proves the mathematical equality of debits and credits after posting. Under the double-entry system, this equality occurs when the sum of the debit account balances equals the sum of the credit account balances. A trial balance may also uncover errors in journalizing and posting. Page 73
6	Adjusting the Accounts Adjusting entries are needed whenever revenue or expenses affect more than one accounting period. Every adjusting entry involves a change in either a revenue or expense and an asset or liability. These entries are made only at the end of each accounting period. accountants divide the economic life of a business into artificial time periods. This convenient assumption is referred to as the time period assumption. Adjusting Entries: Ensure that the revenue recognition and expense recognition principles are followed. Necessary because the trial balance may not contain up-to-date and complete data. Required every time a company prepares financial statements. Will include one income statement account and one statement of financial position account. Page 98
7	Review before Midterm Exam
8	The Adjusted Trial Balance and Financial Statements After a company has journalized and posted all adjusting entries, it prepares another trial balance from the ledger accounts. This trial balance is called an adjusted trial balance. It shows the balances of all accounts, including those adjusted, at the end of the accounting period. The purpose of an adjusted trial balance is to prove the equality of the total debit balances and the total credit balances in the ledger after all adjustments. Because the accounts contain all data needed for financial statements, the adjusted trial balance is the primary basis for the preparation of financial statements. Page 119
9	Completing the Accounting Cycle A worksheet is a multiple-column form used in the adjustment process and in preparing financial statements. As its name suggests, the worksheet is a working tool. It is not a permanent accounting record. It is neither a journal nor a part of the general ledger. The worksheet is merely a device used in preparing adjusting entries and the financial statements. Page 160
10	Accounting for Merchandising Operations Merchandising is one of the largest and most influential industries in the United States. It is likely that a number of you will work for a merchandiser. Therefore, understanding the financial statements of merchandising companies is important. In this chapter, you will learn the basics about reporting merchandising transactions. Cost of goods sold is the total cost of merchandise sold during the period. Page 216
11	Completing the Accounting Cycle for Merchandising Operations A merchandising company generally has the same types of adjusting entries as a service company. However, a merchandiser using a perpetual system will require one additional adjustment to make the records agree with the actual inventory on hand. Here’s why: At the end of each period, for control purposes, a merchandising company that uses a perpetual system will take a physical count of its goods on hand. The company’s unadjusted balance in Inventory usually does not agree with the actual amount of inventory on hand. The perpetual inventory records may be incorrect due to recording errors, theft, or waste. Thus, the company needs to adjust the perpetual records to make the recorded inventory amount agree with the inventory on hand. This involves adjusting Inventory and Cost of Goods Sold. Page 230
12	Forms of Financial Statements/ Preparing the Financial Statements. Trial Balance Columns, Adjustments Columns, Adjusted Trial Balance, Income Statement Columns and Balance Sheet Financial Statement. Page 232
13	Accounting Information Systems The accounting information system collects and processes transaction data and communicates financial information to decision-makers. It includes each of the steps in the accounting cycle that you studied in earlier chapters. It also includes the documents that provide evidence of the transactions, and the records, trial balances, worksheets, and financial statements that result. Page 328
14	Review before Final Exam

Prerequisite(s):
Textbook(s):	Accounting Principles, 11th Edition by Weygandt, Kieso, Kimmel:McGraw-Hill, Inc., 2013 Financial Accounting, an introduction. Pauline Weetman, Pearson Education Limited 2013.
Additional Literature:	Introduction to Accounting: An Integrated Approach, 4th Edition by Wild:McGraw-Hill, Inc., 2004 KontabilitetiFinanciar, Dhamo: Gervis, 2003
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	The students are expected to gain the skills of understanding, analyzing, explaining and using the fundamental concepts of Business Administration.
2	Skills of understanding the requirements for designing a business unit or environment.
3	They gain knowledge about management and organization.
4	They gain knowledge about marketing and production.
5	They gain knowledge about accounting and finance.
6	They learn how to benefit from mathematical and statistical methods used in business management.
7	Learning the communication skills by acquiring the professional terminology of business administration.
8	Learning and adopting the ethical, social and legal (laws and regulations) responsibilities needed in the field of business administration and management.
9	Ability to effectively use technological devices (IT systems) and modern techniques in managing a business environment successfully.
10	Gain the theoretical knowledge of both classical and modern theories necessary to manage a business.

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Business Administration (3 years) Program
1	Identify activities, tasks, and skills in management, marketing, accounting, finance, and economics.	5
2	Apply key theories to practical problems within the global business context.	5
3	Demonstrate ethical, social, and legal responsibilities in organizations.	4
4	Develop an open minded-attitude through continuous learning and team-work.	4
5	Use technology to enable business growth and sustainability.	3
6	Analyze data to make effective decisions.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	40
Quiz	2	5
Final Exam	1	50
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	12	12
Assignments	0		0
Final examination	1	17	17
Other			0
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5

CONCLUDING REMARKS BY THE COURSE LECTURER

https://epoka.edu.al/mat/codes/01-Code%20of%20Ethics.pdf