Foundations of Financial Accounting (9516.1)

This unit introduces students to financial accounting in preparation for more advanced business topics within the Bachelor of Business Studies. Recording financial information in a standard format allows managers, investors, lenders, stakeholders, and regulators to make appropriate decisions regarding their respective interests. In this unit, the formats of focus will be identified as the Incomes Statement, the Balance Sheet, Statements of Cash Flows, and Statement of Shareholders' Equity. In this unit, students will learn how to compile and analyse these financial statements, determine the value of a firm, and compare the firm to its competitors.

Learning outcomes

On successful completion of this unit, students will be able to:
1. Demonstrate an understanding of the foundational principles and objectives of accounting;

2. Discuss and demonstrate the use of the accounting worksheet as a means of preparing financial statements;
3. Explain and execute the closing process for a specified accounting cycle;
4. Identify the foundational accounting concepts, assumptions, and principles through the analysis of specific business situations;
5. Read and interpret financial statements;
6. Identify and analyse accounting transactions of a merchandising company;
7. Define and solve for specific business events involving various inventory methods;
8. Define and apply the accounting elements associate with receivables and payables;
9. Describe the types of business transactions that are included in operating, investing, and financing activities on the statement of cash flows; and
10. Prepare a statement of cash flows.

Prerequisites

3cp

Corequisites

None

Incompatible units

5617 Accounting for Managers

Equivalent units

NO.

Assumed knowledge

None