Introductory Accounting I

Semester 1, 2023
Course coordinator:
Week 12: Revision Lecture (Financial Accounting Topics) Nurmalisa Che Ali

Financial Accounting topics:

Topic 1: Introduction to Accounting

Topic 2: Financial Statements
Topic 3: Recording accounting transactions
Topic 4: Non-current assets
Topic 5: Financial statement analysis

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 Introductory Accounting I
TOPIC 1: Introduction to Accounting

CHAPTER 1

Basic concepts of financial accounting

1. What is Accounting? Accounting is the process of
identifying, measuring and communicating economic
information to permit informed judgements and decisions.

2. What Accounting characteristics make it useful to

external users?

3. Elements of financial statement? Assets, liabilities,

equity, revenues and expenses. Definition?

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Basic concepts of financial accounting
4. What principals/assumptions are used to record
economic information?

5. What are the basic components for income statement,

balance sheet, changes in equity and cash flow statement?
a. Revenues/expenses
b. Assets, liabilities and equity
c. Retained earnings and how it’s updated by profit
d. Cash flow from operating, investing and financing
activities.

Introductory Accounting I
TOPIC 2: Financial statements

CHAPTER 2

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Financial statements
1. What are the advantages/disadvantages to be publicly listed?

2. Publicly listed companies are highly regulated. For example,

they have to provide financial reports. Why? (hint: there are
external users need information to make economic decision?)

3. What is the accounting equation (basic model and the

extended one)? The equation must be always balanced. You
should be able to apply this equation in figuring out a missing
number.
a. A=L+E
b. A + Expenses + paid Dividends = L + E + revenues

4. Read the textbook and lecture notes. Make sure you

understand the definition of assets, liabilities, equity, revenue,
expenses and dividend (paid).

Financial statements
5. How to present items in income statement? Revenues,
expenses and profit.

6. How to present items in balance sheet? Current assets,

non-current assets, current liabilities, non-current
liabilities and equity.

7. What information is reflected by cash flow statement?

8. How to link four statement? (check your group

assignment annual report)

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 Introductory Accounting I
TOPIC 3: Recording accounting transaction

CHAPTER 3 & 4

Recording accounting transactions

1. Double entry system is to ensure the accounting equal is
balanced at any point of time. Given a transaction, you
should be able to journalize it and post it to a general ledger
account.

2. Should be able to prepare a trial balance. Follow the

order of Assets, Liabilities, Equity, Revenues and Expenses.

3. Need to know how to prepare financial statements (e.g.,

income statement and balance sheet from the trail balance).

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 Introductory Accounting I
TOPIC 4: Non-current assets

CHAPTER 8

Non-current assests

1. What are non-current assets?

2. How to record PPE initially (i.e., all necessary costs)?

3. How to calculate and record depreciation? Journal

entries, income statement and presentation in balance
sheet.

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Introductory Accounting I
TOPIC 5: Financial statement analysis

CHAPTER 13

Financial statement analysis

1. What are the commonly used ratios? Profitability,

liquidity and solvency.

2. Given financial statements, you should be able to

compute these ratios.

3. Interpret these ratios.

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