BUSS1030

Accounting, business and society

Learning Objectives
The role of accounting in business (p1-20)

Users of accounting information

Differences between financial accounting and management accounting
Accounting profession in Australia
Ethics in accounting and business
Accounting regulation in Australia
Types of business organizations
Accounting measurement concepts and principles

Key accounting concepts (p20-29, 65-71)

Nature of assets, liabilities, equity, income and expenses (LO8)

Concepts of duality, proportionality and balance (LO8)
Development of double entry bookkeeping and the accounting equation
(LO9)
Accounting processes (LO9)

Business Transactions- (p 71 96, 190-203, ch3 skim read)

Business transactions (LO1/2/3)

Source documents (LO1)
Analysing business transactions (LO2/3)
Recording in worksheet, journals, ledgers, trial balance (LO3)
Preparing financial statements (LO4/5)

Cash Management and Internal Control (related chapter)

Define internal control (LO1)

List and describe the components of internal control and control
procedures (LO2)
Describe control procedures unique to e-commerce (LO3)
Demonstrate the use of a bank account as a control device (LO4)
Prepare a bank reconciliation and the related journal entries (LO5)

Statement of Financial Position (Balance sheet) (p250-291)

Explain the nature and purpose of the statement of financial position

(LO1)
Demonstrate an understanding of assets, liabilities and owners equity in
terms of definition, recognition, measurement and classfication (LO2, 3
and 4)
Explain the basic accounting equation (LO5)
Preparing the Statement of Financial Position (LO8)
Using the Statement of Financial Position for decision-making (LO9/10)

Statement of Financial Performance (p362-398)

BUSS1030

Purpose of a statement of financial performance (LO1)

Relationship between the statements of financial performance and
position (LO2)
Format of a statement of financial performance (LO3)
Definition, recognition, classification and measurement of income and
expenses (LO4)
Issues with Depreciation Expense (LO5)
Cash versus Accrual Accounting (LO6)
Using an statement of financial performance (LO11)

Statement of cash flows (p468-492, 504-509)

Explain why cash is important to the reporting entity

Define cash and cash equivalents
Distinguish between accrual and cash based transaction recognition
Compare and contrast the roles of the four external financial reports
(statement of financial performance, statement of financial position,
statement of changes in equity and statement of cash flows)
Discuss the three components of the statement of cash flows (operating
activities, investing activities, financing activities)

Analysis & Interpretation of Financial Statements (p543-581)

Perform a horizontal analysis of comparative financial statements

Perform a vertical analysis of financial statements
Prepare common-size financial statements
Understand how the standard financial ratios are used for decision
making

Introduction to Management Accounting(p610-612, 613-637)

Explain the differences and similarities between financial accounting and

management accounting.
Explain the importance of a detailed understanding of cost behaviour
Distinguish between fixed costs and variable costs
Use this distinction to deduce the break-even point
Explain why the break-even point is useful
Explain and apply the concept of contribution margin
Explain the concept of a margin of safety
Identify the weaknesses of break-even analysis

Costing

Explain the characteristics and purposes of cost accounting systems

Describe & distinguish between direct & indirect costs
Describe & distinguish between product & period costs
Understand the differences between job order costing systems and
process costing systems.
Calculate overhead application rates and the charging of overheads to
jobs
Recognise the difference between traditional costing and activity-based

BUSS1030

costing
Understand the benefits and limitations of activity- based costing