Week 2 Lecture Notes (3 slides per page)

Week 2 Lecture Notes (3 slides per page) - THE UNIVERSITY...

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ACCT1501 sem1 2011 THE UNIVERSITY OF NEW SOUTH WALES Australian School of Business School of Accounting ACCT 1501: Accounting and Financial Management 1A Weeks 2 Measuring & Evaluating Financial Position & Performance Student Handout Lecturer: Trish Strong School of Accounting UNSW QUAD 3067 Ph: 9385 6657 t.strong@unsw.edu.au Course website: http://telt.unsw.edu.au/
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ACCT1501 sem1 2011 WEEK 2: The Balance Sheet and Income Statement 1. Introduction Every commercial entity engages in transactions with other parties. Woolworths buys products from suppliers, employs shop assistants, builds new stores, sells groceries and each individual transaction is recorded and reported in the Balance Sheet. Individual retail stores would report their profitability and the costs of running each store categorising their expenses so management are fully informed of the cost involved in running each service or retail store. They will even have information about the individual products they sell through internal reporting and cost profit sales analysis. In this lecture we will examine the communication of financial information in the Income Statement through to the Balance Sheet. Learning objectives At the end of this topic, you should be able to: Understand the terms, format and function of the Balance Sheet & the Income Statement Identify the components of financial statements Prepare a simple Balance Sheet & Income Statement Describe the relationship between the balance sheet and the income statement Understand the implications of the decision to record expenditure as an asset or as an expense Understand the differences between cash profit and accrual profit Required Reading Trotman & Gibbons Chapter 2: except section 2.3 pages 55 - 61 Appendix 2: pp92- 97 AASB Framework for the Preparation and Presentation of Financial Statements (downloadable from http://www.aasb.com.au )
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ACCT1501 sem1 2011 2. Tutorial Questions – Week 2 Preparation Questions T&G Discussion Questions 2.1, 2.6; T&G Problems 2.13, 2.17, 2.23; T&G Case 2A Tutorial Questions T&G Discussion Question 2.10 and in-class exercise; T&G Problems 2.7, 2.22, & 2.27
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Accounting and Financial Management 1A Week 2, Session 1, 2011 Measuring & Evaluating Financial Position & Performance. Trish Strong Quad 3067 t.strong@unsw.edu.au Building the foundations of accounting over the next few weeks Week 2: The Balance Sheet and Income Statement (Ch. 2) Week 3: The Double Entry System (Ch. 3) Week 4: Record Keeping (Ch. 4) Week 5: Accrual Accounting Adjustments (Ch. 5 & Appendix 5) Week 6: Special Journal, Subsidiary & Control Accounts (Ch. 5 Appendix) Week 2 The Balance Sheet & Income Statement. This week’s lecture objectives are: 1. To understand the terms, format, function and content of the Balance Sheet & Income Statement 2. Be able to define assets , liabilities and shareholders’ equity & indentify the difference between revenue & expenses 3.
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Week 2 Lecture Notes (3 slides per page) - THE UNIVERSITY...

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