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Republic of the Philippines
OFFICE OF THE PRESIDENT
COMMISSION ON HIGHER EDUCATION
CHED MEMORANDUM ORDER (CMO)
No. 3
Series 2007
Below is an excerpt from ANNEX A – SUGGESTED DESCRIPTIONS, COURSE
OUTLINES, AND REFERENCES of CMO No. 3 Series 2007 pertaining to the Syllabus of Fundamentals of Accounting,
Part 1.
Course Title : Fundamentals
of Accounting, Part I
Credit : Six
(6) units
Prerequisite : (None)
Course
Description:
This
course provides and introduction to accounting, within the context of business
and business decisions. Students obtain
basic understanding of the principles and concepts of accounting as well as
their applicability and relevance in the national context and learn how to use various
types of accounting information found in financial statements and annual
reports. Emphasis is placed on
understanding the reasons underlying basic accounting concepts and providing
students with an adequate background on the recording, classification, and
summarization functions of accounting to enable them to appreciate the varied
uses of accounting data.
Course Outline:
1.1
Definition,
purpose, nature, functions, scope and objectives of accounting
1.2
Different
branches of accounting ( financial, managerial, etc)
1.3
The
classical notion of stewardship
1.4
Users
of accounting information (internal vs external users)
1.5
Double
entry bookkeeping
1.6
History
of accounting
1.6.1
The
Florentine vs the Venetian approach to reporting
1.6.2
Savory
and the Napoleonic Commercial Code
1.6.3
The
industrial revolution and the share-issuing company
1.6.4
The
arrival of income taxation and the conflict with financial accounting
1.6.5
Schmalenbach
and the charts of accounts
1.6.6
The
rise of the group of companies and the need for consolidated accounts
1.6.7
Internalization
of markets and reporting
1.7
Accounting
variations among countries
1.7.1 Why
practices differ from one country to another even though the same set of basic
principles is followed
1.7.2 The
linkage of tax laws and accounting principles requirements for enterprises in
certain countries
1.7.3
Differences
in the degree of development of the capital markets in countries and their
effect on the development and use of generally accepted international
principles of accounting
1.8
Basic
Professional values and ethics
1.8.1
Reputation
1.8.2
Integrity
and due care
1.8.3
Competence
1.8.4
Objectivity
1.8.5
Client
relations and confidentiality
1.8.6
Reporting
breaches of conduct
1.8.7
Unlawful
activities
1.8.8
Fees
and remuneration
1.8.9
Publicity
and advertising
1.8.10
Disciplinary
procedures
1.9
Forms
of business organization and their activities (e.g. financing, investing and
operating)
1.10
Accounting
concepts and principles
1.11
The
basic financial statements of business organizations
1.12
Relationships
among the financial statements
1.13 Definition,
classification and examples of assets, liabilities, capital or owner’s equity,
income, and expenses.
1.14
The
accounting profession: career opportunities
1.15 Specialized
accounting fields (public accounting, private accounting, government
accounting, accounting education)
2.1
Features
of an effective information system
2.2
Overview
of an accounting information system
2.3 The
three stages of data processing : A
comparison of computerized and manual accounting system
3.1
Definitions
of business transactions and source documents
3.2
Summary
of business activities (financing, investing, operating)
3.3
The
accounting equation
3.4
Analyzing
and accounting for business transactions
3.5 Presentation
of results of routine transactions by preparing the Basic Income Statement,
Owner’s Equity Statement, Balance Sheet, and Statement of Cash Flows
4.1 Double-entry
accounting and accounting systems:
Florentine vs Venetian approach to reporting, Savory and Napoleonic
Commercial code, and Schmalenback
4.2
The
account and T-account
4.3
Rules
of debit and credit
4.4
Chart
of accounts and normal balances of an account
4.5 Recording
in two-column journal (initial investment by owner, changes in assets,
liabilities and capital, changes in income and expenses, withdrawals of owners)
4.6
Posting
to the ledger
4.7
Preparing
the trial balance
5.1
Accrual-basis
accounting vs Cash-basis accounting
5.2
Accounting
period
5.3
Revenue
principle
5.4
Matching
principle
5.5
Time
period concept
5.6
Overview
of the adjusting process
5.7
Adjustments
for prepayments (deferrals), accruals, uncollectible accounts receivable,
depreciation of property, plant and equipment
5.8
Preparation
of the adjusted trial balance and financial statements
5.9
Use
of accounting information for decision making
6.1
Overview
of the accounting cycle
6.2
Preparing
an accounting worksheet
6.3
Using
the worksheet
6.4 Preparing
financial statements form the worksheet (income statement, owner’s equity
statement, balance sheet, cash flow statement (simple cash receipts and
disbursements statement)
6.5
Journalizing
and posting adjusting entries
6.6
Journalizing
and posting closing entries
6.7
Preparing
the post-closing trial balance
6.8
Preparing
the reversing entries
7.1 Merchandising
operations (nature and operating cycle of a merchandising business, business
documents)
7.2 Recording
merchandising business transactions in a two-column general journal (sales
revenue, sales returns and allowances, sales discounts, purchases of
merchandise, purchase returns and allowances, purchase discounts,
transportation costs)
7.3
Inventory
systems (perpetual and periodic inventory procedures)
7.4
Determination
of merchandise inventory, costs of goods sold and gross margin
7.5
Worksheet
preparation
7.6
Adjusting
and closing process for a merchandising business
7.7
Financial
statements of a merchandising business
7.8
Use
of accounting information in decision making
8.1
Nature
and use of control accounts and subsidiary ledgers
8.2 Types
of Special Journals (sales journal, purchases journal, cash receipts journal,
cash disbursements journal)
8.3 Recording
of financing, investing and operating transactions in the special journals and
general journal
9.1
Nature
of manufacturing business
9.2
Transactions
related to the manufacturing process
9.3
Elements
of manufacturing costs
9.4 Preparation
of financial statements of a manufacturing enterprise (balance sheet, income
statement, statement of cost of goods manufactured and sold)
