Accounting 10007
week one the why of accounting useful information to assist in desicion making
week 3 Accounting for Business Transactions teaching you the building blocks of accounting
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the qualitative characteristics of financial reports the limitations of accounting information
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The Fundermental Characteristics
Relevence Faithful Representation (Reliability)
Enhancing characteristics
Comparability
Verifyiability
Timeless
Understandabillity
Time lag: There is a significant time delay from the end of the financial year until the information reaches users in the form of a financial report:
Business types sole trader, partnership, public and privaate listed companies (compinies have strict regulations to adhere to and ASIC ensures that they complay with these regulations
cWhere the transaction relates to the owner.
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understanding the accounting equation, Differentiate between a business transaction, personal transaction and a business event :
video 2 perform transaction analysis ,applay transaction ana;ysis to the accounting equation
video 3 Introduction to the accounting cycle
the Accounting equation A=L+QE this equation expresses the relationship between the assets of the entity and how the assets are financed (debt and/or equity)
the equation can also be restated as Owners Equity= Assets-Liabillities
transaction is an exchange between two or more pqarties
-may effect the business along with customers, suppliers and other parties.
personal transactions
Where the transaction relates to the owner.
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Business structures patnerships, sole traders , company's
advantadges and disadvantages for each Aeets, liabilities ,
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Golden Rule the accounting equation must balance after every transaction .
The Accounting cylcye
EFT Recepits The Source Documents
step 2 Journal Entery,
Drawbacks oF THE General Journal Entry
It DOES WORK BUT IT NEEDS TO BE COMPLEMENTED
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week 4 V1 Statement of Profit of Loss ,Statement of Financial Position, Balance Sheet As at- at a point in time 1 entity name, Statement of Financial Position As at , rules that underpin the format of the Balance Sheet The Profit or Loss reflects the accounting return (financial period) for an entity over a specified period of time. V2 Repoting Period Concept,Accrul Accounting, Cash Accounting
Video 2 Reporting Period - Financiqal year 30th June CaleVinder year 30 December is straight line depritiation, reducing balance method- carrying amount 3 depritiation methods
Diidends the coompanys profit distributed to shareholders
Video 3 Lecture 4
Accrued Revenues, Accrued Expenses PrepaidRevenues,Prepaid Expenses
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