1. Introduction of
Financial Accounting
Chapter 1

2. Course objectives
Develop knowledge and understanding of
underlying principles, concepts and
regulations relating to financial accounting.
Use of double entry techniques
Prepare financial statements

3. Course organisation
 Introduction of Accounting
 Statement of Financial Position
 The double entry recording process
 Middle exam
 Special Journals Cash Transactions
 Credit Sales and Credit Purchase Journals
 The General Journal
 The perpetual Inventory System
 Closing the General Ledger
 Statements of Financial Performance
 Statements of Cash Flow
 Depreciation of Non-Current Assets
 Profit Determination and Balance-Day Adjustments
 Final exam

4. Reference book
Keith King, VCE Accounting Units 3 and
4, MacMillan Publisher 2002
Kimmel, Weygandt, Kieso, Financial
Accounting Fourth Edition

5. Assessment
2. Participation 10%
3. Quizzes 15%
4. The middle exam 25%
5. The final exam 50%

6. Objective 1
Use accounting
vocabulary

7. Accounting...
is an information system that...
measures business activities,
processes information, and...
communicates financial information.

8. Accounting – information system
Information identification
Information recording
Information analysis
Information reporting

9. Accounting Activities
 Identifying  Recording
Business Business
Activities Activities

Communicating
Business
Activities

10. Accounting...
is called the language of business.

11. Users of Accounting Information
External users Internal users
make decisions make decisions
about the entity. for the entity.

12. Fields of Accounting
Financial Accounting
Management Accounting

13. • 1. Managerial accounting is concerned with
providing information to managers and other
internal users
• 2. Financial accounting is concerned with
measuring and communicating information
about business activities to external users
(Financial statements)
Financial Accounting - Chapter 1 13

14. Financial and Management Accounting
Financial accounting Management
accounting
Report nature General purpose Special purpose
Level of detail Aggregated Dissected
Restrictions Standardised or Minimum
regulated restrictions
Reporting interval Less frequently More frequently
Time horizon Backward looking Forward looking
Range of Primarily monetary Often non-monetary
information and objective with less objective
constraints

15. Objective 2
Introduction to financial
Statetment