ACCT10002 Introduction to Financial Accounting

Summer 2023

Final Exam Preparation

General Information

o Prepare your notes

o Ask questions

o Don’t panic

o Read the Exam paper questions then read them again

o Show workings on Answer sheet

o Topic 10 is not being examined

o Make sure attempt is yours and only yours

o Save your Answer sheet before uploading

Statement of Changes in Equity

Format

➢ What are the opening balances?

➢ What transactions impact Equity?

o Share capital – shares issues; share buy-backs; share dividends

o Retained earnings – profit or loss; comprehensive income; dividends; transfer to and from reserves;

o Reserves – Revaluations; transfer to and from Retained earnings

➢ Closing balance – does it equal the Total Equity in the Balance Sheet?

Liabilities

➢ Definition of a liability – Conceptual Framework; AASB 137

➢ When are liabilities recognised?

➢ Can you differentiate between different liabilities – accrued expenses, provisions, contingent liabilities?

Non-Current Assets

➢ Elements of a cost of an asset – what is included and what is excluded?

➢ Apply different depreciation methods

➢ Prepare a depreciation schedule

➢ Complete a revaluation of an asset – journal entries

➢ Complete a sale of an asset – journal entries

Inventory

➢ Complete an Inventory record – FIFO or weighted average (perpetual)

➢ Calculate Cost of Sales and Ending inventory values

➢ Calculate the Gross Profit

➢ Calculate Inventory ratios

Equity

➢ Record share issues

➢ Calculate ratios

Cash Flow Statement

➢ Apply the direct method

➢ Understand and apply how amounts are included in operating activities, investing activities and financing activities.

➢ Reconcile the cash movement in accounts

➢ Show workings

➢ Explain one of the Cash Flow ratios

Accounts Receivable

➢ Apply your knowledge of Allowance for Doubtful Debts

➢ Calculate the doubtful debts expense

➢ Reconcile the account

Topic 11

➢ Theory question

➢ Judgement and financial statements

Good luck