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Accounting Fundamentals

Subject Code:


Subject Aim:

This subject aims to provide you with the accounting knowledge to understand the principles of accounting & how it relates to the internal and external decision making of an economic entity. It focuses on the development of an understanding of accounting generally, the fundamental accounting processes & issues, as well as critical, analytical & quantitative skills. You will be presented with the knowledge & skills to enable them to demonstrate the application of accounting concepts & principles when they analyse & process business activity then prepare & present that accounting information in financial statements.

The aim of the subject is to provide you with the basic information and skills relevant to understanding and evaluating accounting as an information system and process. It includes the processing of financial data, the completion of the accounting cycle and the preparation of basic financial reports from the trial balance. This should enable you to deal with accounting information systems in the complex & diverse business environment in Australia & internationally. In addition to this, the subject helps you develop an awareness of the ethical issues facing business & understand the ethical framework in which accounting operates.

Learning Outcomes:

  1. Describe the accounting environment; the accounting concepts and financial accounting reports; forms of business and the users of accounting information.
  2. Manually classify, record, analyse and report accounting data under the accrual accounting system including month end bank reconciliations and adjustments for depreciation and movements in inventory.
  3. Prepare and present the three key financial statements; Income statement, Balance Sheet and Cash Flow statement.
  4. Analyse and evaluate the financial reports using ratios as a decision making tool.

Student Assessment: