Course Outline

National University of Computer & Emerging

Sciences Lahore Campus

Course: Finance & Accounting

Course code: MG103 Year/Semester: Fall 2021
Program: BS CS Units/Cr Hrs: 3 Cr Hrs
Department: FAST School of Management Instructor: Muhammad Zeshan Razzaq
Course Type: Elective Course Email: zeshan.razzaq@nu.edu.pk
Pre-Requisite(s): None Phone: (042) 111-128-128 (277)
Consultation Hours: Tuesday 10 AM to 1 PM

COURSE DESCRIPTION

This is an elective course aimed at covering the majority of basic concepts of accounting and finance. The course covers two diverse
yet connected areas: i.e. Accounting and Finance. The accounting portion of the course introduces basic ideas about financial reports
and explains their purposes to students. Students would learn about the concept of double entry accounting and will look at the main
financial statements: statement of financial position and the income statement; as well as the main elements of assets, liabilities,
equity, revenue and expense. In addition to the accounting areas covered in the course, the area of finance will introduce basic
principles of finance to students. The area of finance is an excellent primer for non-finance students wanting to familiarize with the
world of finance. The primary goal of this course is to impart the knowledge to allow you to intelligently solve practical business
problems.

COURSE OBJECTIVES

Upon successful completion of the course students should be able to:

1 Develop knowledge and understanding of the underlying principles and concepts relating to financial accounting.

2 Develop technical proficiency in use of double entry accounting techniques.

3 Preparation of basic financial statements

4 Evaluate financial decisions using concepts and techniques of the time value of money and risk and return.

COURSE LEARNING OUTCOMES

LO# Learning Outcome Statement PO BT

Level

LO1 Explain context and purpose of financial reporting

LO2 Describe the effects of business transactions on assets, liabilities, equity, revenue, expenses
LO3 Demonstrate use of double entry
LO4 Record transactions and events
LO5 Prepare Financial statements

LO6 Compute future/ present value and rate of return on investment that involve single/ multiple cash flows.

LO7 Know the important types of bonds and shares and understand concept of valuation.
LO8 Know the various ways in which capital can be raised and determine a firm’s overall cost of capital and
capital budgeting

COURSE CONTENTS

Financial Accounting
Session
● Introduction to the course and discussion on course
1 outline.
LO 2
● Different types of business entity-sole proprietorship,
1
partnership and limited company

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Course Outline
National University of Computer & Emerging
Sciences Lahore Campus

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● Main elements of financial
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● Comprehend the underlying
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a Journal
t ● The scope and purpose of ● Understand and illustrate the uses
e financial statements for external of journals and the posting of
m reporting journal entries into ledger
e ● Define financial reporting – accounts
n recording, analyzing and ● Identify correct journals from
t summarizing financial data given narrative
s ● Identify the users of financial
statements and state and
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Ledgers f
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● Understand posting of double r
entries into ledgers. m
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Extracting a trial balance t
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● Identify the purpose of a trial o
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● Extract ledger balances into a u
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● Prepare extracts of an opening i
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● Identify and understand the g
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 ● Describe the purpose and role of ● Use high/low analysis to separate ordering, receiving and issuing of
cost and management accounting the fixed and variable elements materials from inventory
within an organization of total costs including situations ● Interpret the entries and balances
● Compare and contrast financial
involving semi variable and in the material inventory account
accounting with cost and
management accounting stepped fixed costs and changes ● Identify, explain and calculate
● Outline the managerial processes in the variable cost per unit the costs of ordering and holding
of planning, decision making and ● Explain the structure of linear inventory (including buffer
control functions and equations inventory)
● Explain and illustrate the concept ● Calculate and interpret optimal
Cost Classification and Behavior of cost objects, cost units and reorder quantities
cost centres ● Calculate and interpret optimal
reorder quantities when discounts
● Explain and illustrate production Accounting for materials apply
and nonproduction costs ● Produce calculations to minimise
● Describe the different elements ● Describe the different procedures inventory costs when inventory is
of production cost- materials, and documents necessary for the gradually replenished
labour and overheads

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Course Outline
National University of Computer & Emerging
Sciences Lahore Campus

Accounting for Labour

● Calculate direct and indirect
costs of labour
● Explain the methods used to
relate input labour costs to work
done
● Prepare the journal and ledger
14 & entries to record labour cost
L inputs and outputs
O 15
● Describe different remuneration
5
methods: time-based systems,
piecework systems and
individual and group incentive
schemes
● Explain and calculate labour
efficiency, capacity and
production volume ratios

27
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20

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Accounting for Overheads ● Explain the concept of
● Explain the different treatment of future value, including the
direct and indirect expenses meaning of the terms
principal, simple interest,
● Describe the procedures involved and compound interest, and Bonds and Their Valuation
in determining production use the future value formula
overhead absorption rates to make business decisions. ● Identify the different features of
● Allocate and apportion corporate and government bonds.
production overheads to cost ● Explain the concept of present ● Discuss how bond prices
centers using an appropriate basis value, how it relates to future are determined in the
value, and use the present value market
● Reapportion service cost center
costs to production cost centers formula to make business
● Calculate a bond’s yield to
● Select, apply and discuss decisions and discuss why the maturity and yield to call if it is
appropriate bases for absorption concept of compounding is not callable, and determine the “true”
rates restricted to money, and use the yield.
● Calculate and explain the under future value formula to calculate ● Explain the different types of
and over absorption of overhead growth rates. risk that bond investors and
issuers face, and discuss how a
● Calculate the present value and bond’s terms and collateral can
future value of lump sums. be changed to affect its interest
● rate.
● Identify the different types of
annuities, calculate the present Stocks and Their Valuation
value and future value of both
an ordinary annuity and an ● Discuss the legal rights of
annuity due, and calculate the stockholders and explain the
relevant annuity payments. distinction between a stock’s
price and its intrinsic value e
Finance Explain why many financial
● Calculate the present value and
future value of an uneven cash analysts treat preferred stock as
Time Value of Money flow stream. a special type of bond rather
● Discuss growing annuities and than as an equity security.
● Explain how the time value of perpetuities, as well as their The Basics of Capital Budgeting
money works and discuss why it application in business, and
is such an important concept in calculate their values. ● Mathematical calculation
finance. entailing the application of NPV,
IRR and Payback.

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Course Outline
National University of Computer & Emerging
Sciences Lahore Campus

GRADING POLICY

Grading Scheme

RELATIVE Grading
If class average is 65% or more
B
If class average is between 50% and 64%
B-
If class average is below 50%
C+

Each grade will be spread over 5% points (except extreme grades F and A+) with Modified Class Average (MCA) providing the
reference point

Marks Distribution
Grading Mechanism Weight
Announced/Surprise Quizzes 10%
Class Participation/Attendance 10%
Mid Term Exam 1 15%
Mid Term Exam 2 15%
Final Exam 50%

TEXTBOOK& REFERENCE MATERIAL

Textbook:

• Frank Wood & Alan Sangster, 11th. Edition, Business Accounting 1, Pearson Longman
• Management Accounting ACCA (F2) Kaplan Publishers
• Brigham, E.F.; Houston, J. F. (2017) Fundamentals of Financial Management, Concise Edition, 9th Edition: Cengage Learning.

Reference Books:

• Richard A. Brealey, Stewart C. Myers, Franklin Allen, Principles of Corporate Finance, 11 th Edition, McGraw-Hill.

• James C. Van Horne, John M. Wachowicz, Fundamentals of financial management, 13 th edition, Prentice-Hall, Inc.

ADMINISTRATIVE INSTRUCTIONS

Missing Exams or Quizzes

There will be NO retake of missed exam or quiz.

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Course Outline
National University of Computer & Emerging
Sciences Lahore Campus

Class Policies

Please note that any exception for one student is unfair to all other students, so don’t expect any. Please turn off and store away cell
phones, Ipads, laptops, and other electronic devices. Talking during lecture is not permitted. It is disrespectful and disruptive to other
class members and the instructor.

Studying

The proper way of studying for this class can be viewed in three stages; ahead of the class, it is expected that you have read the
relevant chapters from the textbook; during the class you are expected to follow the lecture, take notes and ask questions; and finally
after every class you would review your notes and solve the end of chapter exercises and read the textbook.

An extensive set of practice problems is placed on the Xeon Server, make sure you cover them all. We might set a tutorial session
from time to time to answer your queries about the problems/practice sets.

Attendance Policy

Attendance has been allocated 5% of the total Marks to be distributed as per the below policy.
1. Each A (absent) will result in a deduction of 1 mark while each L (late) will result in deduction of 0.5 mark each.
However, a student is allowed a maximum of ONE Absent (A) or ONE Late (L) without any penalty.

Scholastic Dishonesty

In the classroom and in all other academic activities, students are expected to uphold the highest standards of academic integrity. Any
form of scholastic dishonesty is an affront to the pursuit of knowledge and jeopardizes the quality of the degree awarded to all
graduates. Any student who commits an act of scholastic dishonesty is subject to discipline. Scholastic dishonesty includes, but is not
limited to, cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to
another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to
commit such acts. Students who violate these rules on scholastic dishonesty are subject to disciplinary penalties, including the
possibility of failure in the course and/or dismissal from the University. Since dishonesty harms the individual, all students, and the
integrity of the University, policies on scholastic dishonesty will be strictly and actively enforced. In addition, any sort of mis-behavior
or arguments with the teaching assistants will also result in serious consequences.
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