Chapter 1 Introduction
What is Accounting?
Who Uses Financial Information?
The Accounting Entity
Assets, Liabilities and Equity
Chapter 2 Applying Accounting Assumptions
The Statement of Financial Position
Accounting Assumptions
The Income Statement
Capital and Revenue Expenditure
Chapter 3 Accounting Transactions
Source Documents
Goods and Services Tax
The Accounting Equation
Recording Assets, Liabilities and Equity
Chapter 4 The General Ledger
The Chart of Accounts
Recording Balances in the Ledger
Transactions – Assets, Liabilities and Equity
Transactions – Income and Expenses
Preparing the Trial Balance
Chapter 5 Cash Journals and Bank Reconciliation
The Cash Receipts Journal
Posting Cash Receipts to the Ledger
The Cash Payments Journal
Posting Cash Payments to the Ledger
Bank Reconciliation
Chapter 6 Preparing Financial Statements
Financial Statements Revisited
Financial Statements from a Trial Balance
Accrual Accounting
Chapter 7 More Financial Statements
More Accruals
Adjusting the Trial Balance
Depreciation
Chapter 8 Trading Organisations and Cash Budgets
The Trading Statement
Preparing the Income Statement
More Accruals
Cash Budgets
Chapter 9 Analysing Financial Performance
Percentage Change
The Gross Profit Percentage
Looking at Expenses
Looking at Profit
Chapter 10 Analysing Financial Position
Looking at Liquidity
Financial Structure
Service Organisations
Lilian Viitakangas is an educational consultant. She was a Senior Tutor at The University of Auckland, where she specialised in teacher education and the teaching of introductory accounting courses. Formerly HOD Business Studies at Glenfield College, Lilian has more than twenty years’ teaching experience spanning secondary, tertiary and adult education both in New Zealand and overseas. Lilian is a former examiner for University Entrance, Bursaries and Scholarships, the New Zealand Education & Scholarship Trust and the Sixth Form External Examination in accounting.
Alastair Campbell is a Specialist Classroom Teacher and HOD Business Studies at Macleans College. He has an extensive business background in accounting, sales and marketing and is an experienced marker of external accounting examinations at various levels.
The material has been arranged as closely as possible to the Achievement Standards without sacrificing sound pedagogy. Teachers may therefore work straight through the text and be confident that the course has a logical structure and flow. However, it is also possible to individualise schemes of work while using this course because chapters do not necessarily depend upon those that have gone before.
Emphasis is placed on the conceptual base of accounting and the illustration of concepts using practical examples, with a decision-making approach based on case studies maintained throughout.
The text is accompanied by a student workbook which provides the tasks, sufficient space to complete them and partially worked answers to the early problems in each set of exercises. This provides the maximum student interaction with the material immediately after it is introduced, thereby developing student confidence.