BUSN9113 Accounting Fundamentals

This topic deals with the technical aspects of recording and reporting accounting information for sole trader business entities, focusing on the importance of financial information in business practice. The topic includes introductory financial accounting, introductory management accounting, preparation of financial statements, and elementary financial statement interpretation and analysis.

This topic aims to introduce the technical aspects of recording and reporting accounting information for the relatively less complex sole proprietorship form of business organisation. It also aims to provide students with an understanding of the importance of financial information in business practice. The topic includes introductory financial accounting, introductory management accounting, preparation of the three financial statements, and elementary financial statement interpretation and analysis.

1. Explain the accounting equation and analyse the effects of business transactions on the accounting equation
2. Complete the accounting cycle, including recording business transactions in journals and ledgers and reporting financial performance and financial position for sole traders and retailers
3. Explain accrual accounting and prepare adjusting entries and reversing entries
4. Apply technical financial accounting skills to produce financial statements
5. Describe the accounting controls in relation to cash and prepare a bank reconciliation statement
6. Account for and manage inventories, accounts receivable and bad debts
7. Discuss and appraise the professional accounting body ethical standards and apply them to professional and business scenarios
8. Conduct a basic financial statement analysis and critically evaluate the results