Chapter 2:
Basic Accounting Principles and Concepts

Chapter Learning Objectives

The learning objectives of the chapter are:

• Explain to the participants the basic accounting concepts.
• Enlighten the learners on the main users of financial statements.
• Explaining to the participants on the qualitative characteristics of financial information.

Learning Outcome

At the end of chapter the participants will be able to explain the basic concepts of accounting, but also appreciate the how financial information affects the decision making of various stake holders.

Learning Activities

Individual Activities

• Learners to produce an essay on how activities of an enterprise may be affected if accounting information is not produced.
• The participant to give a brief statement of their prior knowledge in accounting field.

Group Activities

• Class discussions on the importance of any two basic accounting concepts, how it has led to a better financial reporting, its short fall and areas which require improvements.

Sessions and Time Allocated

1. Introduction to accounting and basic accounting concepts - 1 hour
2. Qualitative characteristics of financial information and users of financial information - 1 hour