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Financial Accountant, Asset, Financial statements, Ratio, Accumulated…

- - - - BAS
        
        Business activity statement
        
        Collect very quarterly
        
        GST collected vs paid
      - Selling to customer
        
        GST Collected
        
        GST Payable
        
        Liability
        
        CR Nature
      - Buying from customer
        
        GST paid
        
        GST Receiveable
        
        Asset
        
        DR nature
    - - aka retailer
        
        buy from supplier in bulk
        sell to customer
        
        revenue -> sale revenue
        
        Expense
        
        cost of sales
        
        Gross profit = sale revenue - cost of sale
        
        Plus other REVENUE
        
        3 more items...
        
        Operating Expense
        
        Profit = gross profit - operation expense
        
        Selling expense
        
        administration expense
        
        Financing expense
        
        Tangible product
    - - Raw matetial
        
        zero degree of completion
      - Work in progress WIP
        
        Degree of completion when work process has been done from 1%-99%
        
        not complete
      - Finished good
        
        Ready to be sell to customer
    - - Week 4 slide 5
      - AT ANY GIVEN TIME, ABLE TO TRACK CLOSING BALANCE
        
        Disadvantage
        
        time consuming
        
        more effort
      - system recording every movement of inventories against inventory account
    - - week 4 slide 6
      - record at the end of the period/ Financial year
    - - Buy in bulk -> reward to CUSTOMER
    - - Other revenue
    - - If item is good to resell
        
        Dr Sale return and Allowance
        CR Account receivable
        DR Inventory write down
        CR Cost of Sale
      - if item is faulty/damage
        
        DR Sale return and Allowance
        CR Account receivable
        DR Inventory Expense
        CR Cost of sale
  - - - COMPARE BALANCE
        
        Bank statement vs Accounting record
        
        previous month's bank reconciliation
        
        Current month's cash receipts and cash payment journal
        
        identify "unticked" items on bank statemtn
        
        transfer total cash journal and post to Cash at Bank ledger
        
        Complete bank reconsilitation
    - - sale on CREDIT,
      - on ACCOUNT
      - on TERM
      - Bad debt
        
        Bad debt expense DR
        Acc. Rec CR
        
        Valuing Bad debt
        
        Allowing method
        
        week5 page 13 14
  - - - useful life
        
        AASB 116/ IAS 16
      - Property
      - Plant and equipment
      - Fair value
      - COST
        
        Consist of fair value of
        
        Purchase cost
        
        Other cost to make it ready to use
        
        Capital expenditure vs Revenue expenditure
        
        Capital
        
        increases an asset’s capacity or
        extends its useful life
        
        Revenue
        
        merely maintain the asset in its
        working order
        
        Cost of land
        
        Cost of Plant and Equiptment
- - - - Current
        
        Due within 1 year
      - Long term
        
        due in more than 1 year
    - - (current responsibility that cannot be avoided)
- - - - Tangible
        
        cash
        
        equipment
        
        inventory
    - - Intangible
        
        trademarks
        
        goodwill
        
        patents.
      - Tangible
        
        Property
        
        Plant
        
        Euipment
- - - - It is managed by individuals who are not owners of the entity.
      - It is politically or economically important.
      - It is sizable in terms of sales, assets, borrowings, customers, or employees.
      - may prepare internal reports.
      - must prepare external financial reports that comply with accounting standards.
- - - - the higher the riskier
        
        AS BANK USE UNSTABLE SOURCE OF FUND FOR LOAN
      - Did not take into account maturity/characteristic of loan/deposit
- - - - % of debt in the comapny
- - - - =cost - accumulated depreciation
      - in the final useful life year of depreciation must = residual value
- - - - Cost - residual value = depreciable ammount
  - - - 1-(r/c)^(1/n)
  - - - Depreciation cost per unit
        
        Depreciation expense = depreciation cost per unit x yearly unit of production
- - - - also known as DR Loss on revaluation
  - - - Adjus entry
        
        dr depreciation expense
        
        Cr Acc. Depreciation
    - - DR Acc.Depreciation
      - CR Non Current asset
    - - Increment
        
        DR Asset
        CR Revaluation
        
        The different between carrying value and market value
      - Decrement
        
        dr revaluation
        CR Asset account
- - - - gain
        
        dr cash
        Dr acc. depreciation
        CR gain
        cr asset
      - Loss
        
        CR CASH
        DR Acc.Depreciation
        DR Loss
- - - - Operated expense
        
        Salaries
        
        Rent
      - Non operated expense
        
        Interest expense
  - - - IFRS15 or AASB115
- - - - when firm using up the asset
      - when it due
  - - - PREPAID EXPENSE
        
        recognised as asset
        
        rent/insurance
        
        credit cash advance
      - REVENUE RECEIVED IN ADVANCE
        
        Recognised as liabilities
        
        until services/goods delievered
        
        then will be recognised as revenue
        
        Unearn revenue
    - - Accrued revenues
        
        aka account receivable
        
        good/services provides but amount/cash not received yet
        
        DR Acc Receivable
        CR Revenue
        
        when cash received
        
        DR CASH
        CR Acc Receivable
      - Accrued Expenses
        
        aka account payable
        
        good/services received but amount/cash not yet paid
        
        DR Acc Payable
        CR Expense
        
        When paid
        
        CR CASH
        DR Expense