Accounting

Certificate IV in Accounting and Bookkeeping

Units

  • FNSACC322 - Administer subsidiary accounts and ledgers - 40
  • FNSACC412 - Prepare operational budgets - 40
  • FNSACC414 - Prepare financial statements for non-reporting entities - 60
  • FNSACC421 - Prepare financial reports - 50
  • FNSACC426 - Set up and operate computerised accounting systems - 80
  • FNSTPB411 - Complete business activity and instalment activity statements - 50
  • FNSTPB412 - Establish and maintain payroll systems - 45
  • BSBESB402 - Establish legal and risk management requirements of new business ventures - 60
  • BSBWRT311 - Write simple documents - 30
  • FNSACC323 - Perform financial calculations - 30
  • BSBTEC302 - Design and produce spreadsheets - 35
  • FNSACC321 - Process financial transactions and extract interim reports - 60
  • FNSACC418 - Work effectively in the accounting and bookkeeping industry - 40

Concepts

  • Assets = Equity + Liabilities
  • Assets can be physical or non-physical.
  • Liabilities, equity, revenue, and expenses are never physical.

Assets

  • Notes

    • If an object is valuable or potentially valuable, it is an asset. having value or potential value is the unique and defining characteristic of an asset.
    • Physical things must be assets.

  • Examples

    • Cash
    • Savings account
    • Petty cash balance
    • Accounts receivable
    • Undeposited funds
    • Inventory assets
    • Prepaid insurance
    • Vehicles
    • Buildings

Assets - Valuation

  • The value of all assets on a balance sheet depends on the valuation method used:

    • Acquisition price
    • Going price
    • Notional disposal price
    • Reasonable consensus price

Liabilities

Existing debts and obligations

  • Company credit card
  • Accrued liabilities
  • Accounts payable
  • Payroll liabilities
  • Notes payable

Shareholders' equity

  • Common stock
  • Preferred stock
  • Retained earnings

Debit

  • A debit is an accounting entry that creates a decrease in liabilities or an increase in assets.
  • In double-entry bookkeeping, all debits are made on the left side of the ledger and must be offset with corresponding credits on the right side of the ledger.
  • On a balance sheet, positive values for assets and expenses are debited, and negative balances are credited.

Credit

Increase in liabilities and equity, decrease in assets

Trial Balance

A trial balance lists all accounts with their balances—assets first, and then liabilities and stockholders’ equity (including revenue and expense accounts).

The trial balance summarizes all the account balances for the financial statements and proves that the total of accounts with debit balances equals the total of accounts with credit balances.

A trial balance may be taken at any time, but the most common time is at the end of the period.

The trial balance facilitates the preparation of the financial statements.

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