Week 3 Lecture Notes - Double Entry System

Week 3 Lecture Notes - Double Entry System - THE UNIVERSITY...

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THE UNIVERSITY OF NEW SOUTH WALES Australian School of Business School of Accounting ACCT 1501: Accounting and Financial Management 1A Week 3 The Double Entry System Student Handout Lecturer: Dr. Youngdeok Lim School of Accounting UNSW QUAD 3069 Ph: 9385 6081 youngdeok.lim@unsw.edu.au Blackboard: http://elearning.unsw.edu.au .
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WEEK 3: The Double Entry System 1. Introduction Last week we discussed the importance of the balance sheet and income statement to managers. It is therefore critical that every manager understand the impact of transactions on these financial reports. This week covers those skills by extending transaction analysis, which considers the impact of specific transactions on the accounting equation. The double entry system involving debits and credits, which forms the basis of modern accounting, is then addressed. Learning objectives At the end of this topic you should be able to: Carry out transaction analysis and determine the impact of transactions on elements of balance sheets and income statements Describe how debits and credits work in the double entry accounting system. Understand debits and credits in the context of transaction analysis Required reading Trotman & Gibbins Chapter 3 2. Tutorial Questions – Week 4 Students should attempt these questions before the tutorial. Preparation Questions : DQ 3.3, 3.4 P3.1*, P3.25, P3.30 Tutorial Questions : DQ 3.5, 3.7 P3.4, P3.5, P3.18
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1 Accounting and Financial Management 1A Week 3, Session 1, 2011 The Double Entry System Dr. Youngdeok Lim Quad 3069 Aussie CEOs reap salary increases (September 19, 2009, Sydney Morning Herald) Despite the economic downturn Australia's chief executives continue to take massive pay rises, angering the country's peak union body. Of the 32 top 100 companies who reported profits for the past financial year, 18 had CEOs who took pay rises averaging about 10 percent. The largest increase was given to BHP Billiton chief Marius Kloppers, who received a 19.29 percent base pay increase to $2.3 million. The miner recorded a 21 percent fall in share price and a 30 percent drop in earnings, while 3,000 of its workers were sacked. The CEO salary hikes come as many Australians have either lost their jobs, have been forced to work fewer hours or had their wages frozen. Aussie CEOs reap salary increases (September 19, 2009, Sydney Morning Herald) The trend elicited a stinging attack from ACTU Secretary, Jeff Lawrence, who labelled the country's CEOs hypocrites. "There's a pay freeze for all minimum wage earners, yet CEOs still have their snouts in the trough," he told News Ltd newspapers. "Working Australians fail to understand how CEOs can pocket double-digit pay rises at a time when hundreds of thousands of workers have lost their jobs." Peter Anderson, chief executive of the Australian Chamber of Commerce and Industry, said the salary increases were inappropriate in the current economic climate. "Executives' reward should bear a relationship to both a company's performance and the overall economic circumstances ," he told News Ltd.
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Week 3 Lecture Notes - Double Entry System - THE UNIVERSITY...

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