HD FULL Subject notes for ANU BUSN1002

Description

Week 1 - Recording Business Transactions 2 Double Accounting System 4 Example of Assets, Liabilities and Equity 4 The Double-Entry System 4 The account, the ledger and the journal 5 Accounting Terms 5 The Accounting Procedure 5 The Trial Balance 5 Trial Balance Errors 6 10-column accounting worksheet 6 Week 2 - Profit Measurement and the Accounting Cycle 6 Accrual Basis vs Cash Basis 6 Accounting Adjustments 6 Closing Entries 7 Week 3 - Retail Operations, Inventory, and GST 7 Who are the retailers? 7 Purchase of Inventory 8 EXAMPLES 8 Sale of Inventory 9 EXAMPLES 9 The three ratios used for decision making 10 Retail Inventory 10 Inventory costing methods 11 FIFO vs LIFO vs Average Cost 11 The lower-of-cost-and-net-realisable-value rule 11 Effects of Inventory Errors 12 Estimating Ending Inventory 12 Week 4 - Receivables, Approaches to Write-Offs, and Payables 12 Accounts Receivable 12 Allowance Method – Ageing of accounts 13 Allowance Method: Writing off Actual Bad Debts 13 Direct Write-off 13 Bad Debt Recovery 13 Credit and Debit Card Sales – No Bad Debts 14 Bills Receivable 14 Bills of Exchange 14 Discounting a Bill receivable 15 Current Liabilties 15 Estimating Current Liabilities 15 Contingent Liability 16 Week 5 - Ethics, Internal Control and Managing Cash 16 Ethics and Professional Conduct 16 Internal Control (IC) 16 Internal Control: Cash 17 Cash Short and Over 17 Petty Cash Payments 18 Bank Reconciliation 19 Managing Inventory 20 Week 7 - Accounting for Partnerships 22 Introduction 22 What is a partnership? 22 Why form a partnership? 23 Accounting for a Partnership 23 Sharing Profits and Losses 24 Partner Drawings 24 Admission of a New Partner 25 Withdrawal of a partner 26 Withdrawal less than the book value 28 Liquidation of a Partnership 28 Week 8 – Accounting for Companies (Equity) 30 Accounting for Fully-Paid Shares 31 Process of Issuing Shares 32 Under-subscription 34 Over-subscription 34 Preference Shares 36 Forfeiture of shares 36 Dividends 37 Share Dividends 38 Share Splits 39 Share Buy-Backs 39 Week 9 - Company Liabilities (Debentures) 40 Debt Financing vs Equity Financing 40 Debentures (Corporate Bonds) 40 Debenture Types 41 Debenture Prices 41 Valuation of Debentures 41 Amortisation 43 Reporting Liabilities on the Balance Sheet 47 Week 10 – Non-Current Assets 47 Cost of Non-Current Assets 48 Land 48 Buildings 48 Machinery and Equipment 48 Capital Expenditures or Expenses? Subsequent Cost 48 Lump-Sum Purchases (like, Land + Building) 49 Depreciation 49 Depreciation Method for Tax Purposes 51 Comparing the Three Depreciation Methods 52 Changes in Useful Life(Depreciation Rate) 52 Changes in Residual Value (RV) 52 Disposal of Non-Current Assets 52 Revaluations 54 Impairment of Non-Current Assets 54 Inatangible Assets 55 (Acquired) Goodwill 56 Some Terms Regarding Non-Current Assets 56 Internally Generated Intangibles 56 Week 11 – Accounting for Manufacturing Businesses 57 Management Accounting 57 Management vs Financial Accounting 57 Product Costs 57 Costs 57 Inventoriable Product Costs 58 Inventory 58 The Income Statement for a Manufacturing Company 58 Cost of Goods Manufactured (COGM) 59 Inventoriable Product Costs vs Period Costs 59 Product Costing 59 Process Costing System 60 Job Costing System 60 Accounting for Labour Costs 60 Accounting for Manufacturing Overheads 61 Allocating Manufacturing Overheads 61 MOH Costs Allocation Example 61 Adjusting Manufacturing Overheads 62 Accounting for Completion and Sale of Finished Goods. 62 Week 12 – Financial Statement Analysis 63 Financial Statement Analysis 63 Who uses financial statement analysis? 63 Common Ratios Classification 63 Ability to Pay Current Liabilities 64 Ability to pay current liabilities 65 Ability to sell inventory 65 Ability to Collect Receivable 65 Ability to Pay Debt 65 Profitability 66 Understanding Gearing 66 Analysing Shares as an Investment 67 Limitations 67 Some red flags 67 Non-financial data 68