PASS

Leader: Vince PASS Unit: AFF1000 Key Topics Week 1&2 Who uses accounting data? Internal v External. [page 9] Book-keeping v accounting. Whats the difference? [page 10] Financial accounting v management accounting. [page 281] Definition of finance [page 373] Definitions of Assets, Liabilities, Owners equity, Revenue & Expense What are financial statements and how to prepare them? The simplified accounting equation: A = L + OE Extending accounting equation [page 50] Debits & Credits Accounting for GST Exercises: 1. DEFINITIONS - Fill in the blanks. Assets are controlled by the _________ Provides ___________________________ Resulting from a ______________________________ Liabilities represents a ___________________ to an outside entity Involves an outflow of ______________________ Resulting from a ______________________________ Owners equity is the __________________ of a business After deducting ___________ from ____________ Revenue is an increase in future _____________ during a reporting period It involves an increase in ________ or decrease in ___________ But does not include _______________ by the owner Expenses represent a decrease in _______________________ It involves an increase in _________________ or a decrease in ___________ 2. ACCOUNTING EQUATION Calculate the missing value. A = L + OE Assets = Liabilities = $10,000 Owners equity = $5,000 Assets = $6,000 Liabilities = Owners equity = $8,800 Assets = $5,000 Liabilities = $500 Owners equity = Assets = Liabilities = $500 Owners equity = $250 Revenue = $120 Expenses = $50 Capital contribution= $15

PASS Leader: Vince PASS Unit: AFF1000 3. DEBITS AND CREDITS Determine whether it is a debit or credit for accounts. Asset Liability Owners Equity Revenue Expenses Increase in value Decrease in value

4. GST Calculations. Calculate the amount of GST paid. I bought a $100 item, how much GST was paid? I bought a $500 item, how much GST was paid? I bought a $8,785 item, how much GST was paid? Calculate the price of the item and the total price (item price + GST paid). I bought an item that had $13.50 in GST. How much was the item exclusive of GST? What is the total price paid for the item?