ACCTG 101
Accounting Information
Table of Contents:
Topic
Page
Course Outline
2
Course Notes (details)
Course Overview
5
Course Resources
7
Assessment
9
Online Quizzes Assessment Schedule
11
Course Programme and Assessment Schedule
12
Module Resources:
Module 01: Introduction
13
Module 02: Business Plan: C-V-P
31
Module 03: Business Plan: Budgeting
55
Module 04: Costing
77
Module 05: Planning and Control Decisions
95
Module 06: The Accounting System & Balance Sheet
115
Module 07: The Accounting System & Income Statement
139
Module 08: The Cash Flow Statement & Owner’s Equity
163
Module 09: Financial Statement Analysis
189
Module 10: Time Value of Money
223
Module 11: Capital Investment
243
Module 12: Financial Management
265
Financial Statements:
Auckland International Airport Limited
Annual Report, June 2015, pages 53 – 101
Source: www.auckland-airport.co.nz – a publically available document
285
The Warehouse Group Limited
Annual Report, August 2015, pages 51 – 87
Source: www.thewarehouse.co.nz – a publically available document
337
Course Outline 2016
ACCTG 101: ACCOUNTING INFORMATION (15 POINTS)
Semester 1 (1163)
Course Prescription
Business decisions require accounting information. This course covers the role of
accounting information and systems to support decision making, control and monitoring
in organisations. It examines general purpose financial statements and the analysis and
interpretation of accounting information. It assesses investment opportunities using
capital budgeting techniques and compares and evaluates alternative funding sources.
Programme and Course Advice
Restriction: 600.121, 600.171, ACCTG 191
Goals of the Course
To show how and why accounting information matters. The idea is that accounting
information is an integral part of the decision-making process, both inside and outside
the firm.
Learning Outcomes
By the end of this course it is expected that the student will be able to:
1.
2.
3.
4.
5.
6.
appreciate the importance of accounting information to the firm and its providers
of capital and understand its communicative value;
explain and apply cost behaviour patterns to quantitative modelling techniques
such cost-volume-profit analyses; budgeting and basic costing.
understand the basics of reading a set of financial statements of a business and
show the impact of accounting events on the financial statements;
interpret financial statements with an awareness of context while recognising the
limitations of such analyses;
show how the time value of money and risk are incorporated into long-term
decision-making and perform capital budgeting techniques;
understand the basics of debt management.
Content Outline
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
1
2
3
4
5
6
7
8
9
10
11
12
Introduction
Business Plan: Cost-Volume-Profit
Business Plan: Budgeting
Costing
Planning and Control Decisions
The Accounting System and the Balance Sheet
The Accounting System and the Income Statement
The Cash Flow Statement and Owner’s Equity
Financial Statement Analysis
Time Value of Money
Capital Investment
Financial Management
Learning and Teaching
ACCTG 101 is delivered through multiple lecture streams. During three one hour lectures
each week (Tuesdays, Wednesdays and Thursdays), lecturers discuss and apply theory.
A fourth hour workshop (Mondays) is optional however it is highly recommended that
student attend this as emphasis is placed in class on demonstrating how to solve
accounting problems and provides opportunities for group work which many students find
to be valuable learning tools.
Teaching Staff
Course Director:
Associate Professor Paul Rouse
Office: 5119, OGG Building
Tel: 373 7599 (xtn. 87192)
Fax: 373 7406
Email: acctg101-help@auckland.ac.nz
Course Co-Ordinator (Leader):
Debbie Alexander
Office: 541, OGG Building
Tel: 373 7599 (xtn. 89415)
Fax: 373 7406
Email: acctg101-help@auckland.ac.nz
Lecturers:
Various
Learning Resources
Reading: The prescribed text for this course is Cunningham, Nikolai, Bazely, Kavanagh,
Slaughter, & Simmons (2015) Accounting: Information for Business Decisions (2nd Ed.).
Cengage Learning: Australia. Material and questions from the text are discussed during
lectures. Additional questions from the textbook as used for self-study.
Course Book: The Course Book includes supplemental problems used in lectures,
additional notes, and the latest financial statements for two well-known NZ companies.
Canvas: Canvas is used to distribute student guides to problems, and to make
announcements. It is also used to quiz students online over the assigned readings and
problems. The quizzes may later be used for revision.
‘Walk-in’ Help Centre: Assistance is provided at the ‘walk-in’ help centre for queries
about the lecture material. The tutors are available in Computer Lab 7 (OGGB Level 0).
The days and times will be provided on Canvas at the start of the semester.
Assessment
Two individual assignments
Ten Online quizzes
One semester test
Final examination
Total
10%
10%
20% (Date to be confirmed)
60%
____
100%
Further details on these assessments will be provided on Canvas.
The broad relationship between these assessments and the course learning outcomes
(listed on page 2) is as follows:
Learning
Outcome
1
2
3
4
5
6
Assignments
X
X
X
X
Online
Quizzes
X
X
X
X
X
Minimum Requirements
Semester
Test
X
X
X
Final
Examination
X
X
X
X
X
X
To pass this course an overall grade of at least 50% is required. You do not
need to achieve 50% in the final exam to pass.
Course Notes
Introduction
Welcome to ACCTG 101 Accounting Information. These course notes have been created
to provide you with details on how this course will be managed, the resources and
expectations of this course and where you can get help.
Course Overview
Course Description
This course is designed to provide support for all Commerce majors. It is a core subject
for the BCom degree and is a prerequisite for ACCTG 102 Accounting Concepts, the
foundation course for a major in accounting or finance.
Whether you are a manager, entrepreneur, or an investor, you will use accounting
information when making decisions. This course provides an introduction to accounting
and finance as well as basic analytical models that use accounting and finance data.
All students should be capable of achieving the learning outcomes of this course.
If you have studied accounting before then you will find most of the concepts the same
however this course focuses on understanding the reason why as well as how economic
events affect a firm’s financial statements. Rather than simply rote learning the impact of
financial transactions on a companies’ financial statements, this course teaches you why
accountants record the transactions the way they do and this will help you to explain
financial statements in layman terms to other users.
Having done accounting at school will set you up for achieving a high grade in accounting
as long as you keep up with the work and you will probably be able to spend less time on
this paper than your other papers. It is of benefit to your future studies to achieve a high
grade especially if you are doing a conjoint or wish to enter into law.
If you have never studied accounting before then you may find the course reasonably
difficult but do not panic as it is possible to achieve a high grade but you will have to
work hard as the course moves fairly quickly through a lot of content. Keep up to date,
clarify concepts as soon as possible, do all the online quizzes and other assessments to
the best of your ability, set up a study group etc. and you will be able to achieve a
satisfying grade.
Our goal is to provide students with the learning support they require to ensure that as
many students as possible complete the semester satisfied that the course has been
challenging, rewarding and enjoyable. Your performance and achievement in this course
will reflect the effort you make throughout the semester. We hope you will enjoy and
benefit from your semester’s work.
Accounting and Finance ACCTG 101 Team
Course Coordinator
Debbie Alexander
Course Administrator
Terry Li
Teaching Staff
Various experienced lecturing staff will be teaching on this course. See Canvas for details.
Communication:
Help email address: acctg101-help@auckland.ac.nz
ACCTG 101 has a generic help email address to which you should send all of your
queries: acctg101-help@auckland.ac.nz. The Course Administrator will check this
email address regularly and will either reply to your email or forward it on to the
appropriate staff member so they can respond to your query.
Your email communications should be of a professional standard. Your email
should have an appropriate subject heading indicating the type of query being discussed
and should have an appropriate greeting at the start of the message. You should
conclude your message with your Name and Net ID. If we receive an email which is not
of a suitable standard we may request that you re-submit your email.
Inclusive Learning
Students are urged to discuss privately any impairment-related requirements face-toface and/or in written form with the course convenor/lecturer and/or tutor.
Student Feedback
These are the ways in which student feedback from 2015 has been used to shape or
change the course:
1. Fewer assessments that are worth more marks.
2. More practice exercises.
3. Feedback in the Online Quizzes.
4. Revision practice for the Online Quizzes.
5. No tutorials but more interactive workshops.
6. Course book slides and problems have now been made available on Canvas.
7. Lecture recordings of all lecture streams.
In the Event of an Unexpected Disruption
We undertake to maintain the continuity and standard of teaching and learning in all your
courses throughout the year. If there are unexpected disruptions the University has
contingency plans to ensure that access to your course continues and your assessment is
fair, and not compromised. Some adjustments may need to be made in emergencies. In
the event of a disruption, the University and your course coordinators will make every
effort to provide you with up to date information via canvas and the university web site.
Course Resources
Lectures
The three weekly lectures (Tuesdays, Wednesdays and Thursdays) are designed to work
through the detail of the module objectives. Lecturers will present theory and
applications of theory through problem solving.
Workshops
The workshops (Mondays) are designed to review the previous week’s materials and to
provide you with an opportunity to practice the concepts that you have learnt as well as
ask questions. Additional problems will be used to enhance your learning. Students are
encouraged to email acctg101-help@auckland.ac.nz or the workshop tutor with any
queries that they have regarding the previous week’s material and the most frequently
asked questions will be addressed in the workshops. It is highly recommended that
students who have never studied accounting should attend these workshops.
Preparation for Lectures and Workshops
Your preparation for lectures and workshops is important, as the lecturer’s role is to
support, direct and encourage your study of the module objective. Without preparation,
you will often feel lost and confused.
Lecture Recordings
One stream of lectures and workshops will be recorded per lecturer. You will be able to
access these recordings through Canvas.
Prescribed Text
The prescribed text is Cunningham, B.M., Nikolai, L.A., Bazely, J.D., Kavanagh, M,
Slaughter, G & Simmons, S. (2015). Accounting: Information for Business Decisions (2nd
Edition), Cengage Learning. Reading the textbook before attending lectures is highly
recommended and will assist with your understanding of the lectures. The textbook
provides online material on their website which is located on http://login.cengagebrain.com
and can be accessed by using the code card located in the front of your textbook. There
are a multitude of resources to enhance your learning such as: quizzes, flashcards,
crosswords, glossary etc. We encourage you to make use of them.
Library
You are also encouraged to read more widely by making use of the university libraries and
the Web. The Library Course Page for ACCTG 101 is a useful place to obtain help with
your assignments and to learn how to access the extensive resources and services of the
Library.
http://www.library.auckland.ac.nz/subjects/bus/course-pages/acc101.htm
The page can be found under the Library Tab in Cecil, or on the Library homepage >
Resources by Subject > Business & Economics. Librarians are available at the Enquiry
desk on Level 0 of the General Library to help you all day every day so please ask there,
or email Lucy Dong (Subject Librarian, Accounting & Finance) on l.dong@auckland.ac.nz.
Computer Supported Learning (Canvas)
Canvas is a facility that can be used from home or the computer lab to access
information such as:
•
Basic course information.
•
Quizzes: This section includes Quizzes for grading and revision.
•
Grades: You can view the marks of your assessments in this section. Your course
marks will contribute to your final grade, so please check that they are correct
•
Announcements including times and venues for Help Centre, test formats etc
•
Modules: Under the headings in this section, you will be able to view and
download copies of student guides to problems, and other materials that may be
useful for your study.
‘Walk-in’ Help Centre
If you have any queries about the lecture material, you may get assistance at
the ‘walk-in’ help centre. During lecture weeks, tutors are available to answer
your queries. The tutors are available in Computer Lab 7 (OGGB Level 0). The
days and times will be provided on Canvas at the start of the semester.
Study Technique
In order to be successful in this paper, it is important to use the correct techniques to
study accounting. The assignments, tests and exam will be testing your ability to
critically analyse a problem which requires reasoning and understanding rather than
memorization of the work. This means that you need to understand WHY you are doing
something and then you need to understand HOW to do it.
Strategies for studying accounting:
1. Attend all lectures and be prepared so that you can take part as the lecturer
demonstrates the technique of answering the problems.
2. Attempt the problems again yourself after the lecture without looking at the
student guide.
3. Analyse your answers in terms of what you did well, what you did not do well and
whether it made sense in the context of the problem.
4. Work through the resources available to you in this course, using the learning
objectives, until you are more confident in those areas that you had difficulty
understanding.
5. Practice is the key to performing well in accounting so go over as many problems
as you can.
6. Setting up a study group is very useful as talking about accounting helps you to
identify what things you do and do not understand. Rather than simply rote
learning, explaining a topic in your own words enhances your understanding of
the topic and highlights the logic and reasoning involved.
7. When taking exams, read the question carefully as this reduces careless errors.
Questions are often answered poorly because students have assumed the
question was asking something and have responded with an answer learnt by
rote. Usually the answer is completely off topic and receives poor marks.
8. Use past test and exam papers as a test of your knowledge once you have learnt
everything. Do not rely on them as an indicator of what you think will be asked in
the exam.
9. Practice, Practice and Practice – that is the only way to perform well in the course.
Academic Integrity
"The University of Auckland will not tolerate cheating, or assisting others to cheat, and
views cheating in coursework as a serious academic matter. The work that a student
submits for grading must be the student's own work, reflecting his or her learning.
Where work from other sources is used, it must be properly acknowledged and
referenced. This requirement also applies to sources on the world-wide web. A student's
assessed work may be reviewed against electronic source material using computerised
detection mechanisms. Upon reasonable request, students may be required to provide
an electronic version of their work for computerised review."
Refer to ‘Warning’, inside front cover of Course Book for more detail.
Lost Property
Any items left in the lecture theatres should be handed in or collected from Support
Services Help Desk Room.
Assessment
For assessment purposes, the course is divided into two components, coursework and
final examination. The final grade for this course is determined as follows:
Coursework
Assessment
Weighting
Number of
Assessments
Assignments
10%
2
Online Quizzes
10%
10
Semester Test
20%
1
Total Coursework
40%
Final Examination
Exam
60%
Minimum Requirements
To pass this course you must score an overall grade of at least 50% (i.e. there is no
minimum % required in the final examination).
Final Examination
The final examination is two hours and the FULL semester’s work is examinable
(Modules 1 – 12). Further guidance on content and format will be given towards the
end of the semester.
Any information regarding the sitting of the Final Examination is determined by the
http://www.auckland.ac.nz/uoa/cs-examinationExaminations
Department.
See
information for more information.
Semester Test
The test will be an examination of the material covered in the weeks prior to the test as
follows:
Module
Coverage
1, 2, 3, 4 & 5
Date
Weighting
Time
(To be confirmed)
20%
6.30 pm to 7.45 pm.
The test (assigned 20% of final grade) will include both quantitative and conceptual
questions. Although the questions may be similar to the assignments and past test
papers, do not expect to see identical exercises. You will be informed of the venues
through Canvas. All students are required to attempt the test. Please bring your ID
cards to test, as ID checks will be conducted.
Test Time Clashes
Please inform Terry Li at acctg101-help@auckland.ac.nz as soon as possible if you
have another test at the same time.
Consideration Policies
For a missed Semester Test students must submit to the course administrator, Terry Li,
an Application for Aegrotat or Compassionate Consideration for Written Test form within
one week of the test available from http://www.auckland.ac.nz/uoa/cs-aegrotat-andcompassionate-consideration.
A medical certificate on a letterhead or a statement from a relevant official disinterested
agent must be attached, stating the medical, compassionate or other reason(s) for
missing coursework.
Approved Considerations
The following policies will apply only in cases of approved considerations:
•
Semester Test
If a student fails to sit a Semester Test for valid reasons, the course weighting
percentage allocated to the Semester Test will be transferred to the Final Exam (e.g.
in ACCTG 101 we have a 20% Semester test and a 60% final exam, for a person that
missed the Semester Test the Final Exam weighting would be changed to 80%).
•
Final Exam
University policy applies. For further details go to:
http://www.auckland.ac.nz/uoa/cs-aegrotat-and-compassionate-consideration
Assignments
The assignments provide an opportunity to practise your analytical and communication
skills. The assessment provides feedback on your progress and some indication of the
standard you are attaining.
Assignment
Module Coverage
01
1, 2, 3, 4
02
5, 6, 7, 8, 9
Due
Weighting
Thursday 31 March, 4 pm.
5%
Thursday 12 May, 4 pm.
5%
Please submit your assignment online via Canvas.
•
Working Together on Assignments
It is acknowledged that students often work together on assignments. To gain
benefit from this practice, you are advised to separate from the team when
writing up the work. Any copying will be dealt with (refer to ‘Warning’, inside
front cover of Course Book). The assignment work constitutes 10% of the final
grade.
•
Frequently Asked Questions (FAQ’s)
Any questions that are emailed to acctg101-help@auckland.ac.nz will be
answered individually however if there are many questions that are similar then
we will answer them in the workshops.
•
Marked Assignments
An electronic marking schedule/feedback sheet and suggested solution will be
sent to your university email address. The marking schedule will provide some
useful individual feedback. Markers are not required to correct your answers so
the onus is on you to work through the solution once it has been returned.
•
Late Assignments
As the assignments are immediately collected and dispatched to markers, late
assignments cannot be accepted for grading. (This includes those received
late because they were posted in a box for another course). No extensions will be
given. If an assignment is missed for aegrotat or compassionate reasons,
please present the evidence to the course administrator so the circumstances can
be taken into consideration – the percentage for the assignment may be
reassigned to the final examination. If you have any queries regarding the
marking and recording of assignment work, please convey your concerns to the
course administrator.
Online Quizzes Assessment Schedule
Online Quizzes
During the semester, there are ten multiple-choice quizzes available through the Canvas
facility. These quizzes are designed to be part of the learning experience. Each quiz is
available for approximately 8 days and the coverage will be based on the recent Module,
both lecture and reading content.
Quiz
Module Coverage
Due on
Tuesday
Revision
01 - 12
Quizzes
Start Date
(8.00am)
End Date
(11.00pm)
Tuesday 01 March
01 Introduction
02 Business Plan: C-V-P
Week 3
Tuesday 08 March
Tuesday 15 March
Quiz 02
02 Business Plan: C-V-P
03 Business Plan: Budgeting
Week 4
Tuesday 15 March
Tuesday 22 March
Quiz 03
03 Business Plan: Budgeting
04 Costing
Week 6
Tuesday 22 March
Tuesday 05 April
Quiz 04
04 Costing
05 Planning and Control
Decisions
Week 7
Tuesday 05 April
Tuesday 12 April
Quiz 01
MID-SEMESTER BREAK: Monday 18 April – Friday 22 April
Quiz 05 06 The Accounting System and
Week 8
Tuesday 12 April
Tuesday 26 April
Week 9
Tuesday 26 April
Tuesday 03 May
Week 10
Tuesday 03 May
Tuesday 10 May
Quiz 08 09 Financial Statement Analysis
Week 11
Tuesday 10 May
Tuesday 17 May
Quiz 09 10 Time Value of Money
Week 12
Tuesday 17 May
Tuesday 24 May
Week 13
Tuesday 24 May
Thursday 02 June
Balance Sheet
Quiz 06 07 The Accounting System and
Income Statement
Quiz 07 07 The Accounting System and
Income Statement
08 The Cash Flow Statement
and Owner’s Equity
Quiz 10 11 Capital Investment
12 Financial Management
Quiz attempts
For each quiz attempt, there is a time limit of 25 minutes to complete the 10 multiplechoice questions. You may refer to your textbook or lecture notes while sitting the
quizzes.
Each quiz may be sat up to three times subject to the availability of a computer at home
or in the computer labs. As each question is randomly generated from a topic question
bank, the quizzes will be different each time you attempt one.
Quiz Assessment
The quizzes account for 10% of the final grade – each quiz is worth 1%. If you sit a quiz
more than once, the highest mark gained is used for assessment purposes.
Revision Quizzes
Revision quizzes are available for you to use to practice answering multiple choice
questions on each module before the start of the Cecil quiz assessment on that module.
Accessing Canvas
It is not guaranteed that Canvas will be available 24 hours a day, 7 days a week (despite
the best efforts of the Canvas team) so it is important that you attempt each quiz early
in the time allowed.
Course Programme and Assessment Schedule F2016
Week
1
2
Monday
Tuesday
Workshop
29/2
Admin
Workshop
7/3
Review: Module 01
14/3
3/3
01 Introduction (Chp 1)
Lecture
Lecture
9/3
02 C-V-P (Chp 2)
Lecture
15/3
C-V-P
Online Quiz 01 (Mod 1 -2)
Lecture
22/3
04 Costing
Budgeting
Online Quiz 02 (Mod 2-3)
Lecture
16/3
No Lectures
Lecture
17/3
03 Budgeting (Chp 3)
23/3
04 Costing
29/3
10/3
02 C-V-P (Chp 2)
Lecture
03 Budgeting (Chp 3)
Review: Module 03 -
EASTER BREAK
Lecture
01 Introduction (Chp 1)
8/3
28/3
5
2/3
Lecture
03 Budgeting (Chp 3)
21/3
Thursday
Lecture
01 Introduction (Chp 1)
Review: Module 02 Workshop
4
1/3
02 C-V-P (Chp 2)
Workshop
3
Wednesday
Lecture
Lecture
24/3
04 Costing
30/3
No Lectures
31/3
EASTER BREAK
Assignment 01 – Due 4 pm
(Modules 1- 4)
Workshop
6
4/4
5/4
Review: Module 04 -
05 Plan & Control (Chp 11)
Costing
Online Quiz 03 (Mod 3-4)
Workshop
7
Lecture
11/4
Review: Module 05 -
Lecture
12/4
06 Acc System/BS (Chp 4,8)
Lecture
6/4
Lecture
7/4
05 Plan & Control (Chp 11)
05 Plan & Control (Chp 11)
Lecture
Lecture
13/4
06 Acc System/BS (Chp 4,8)
14/4
06 Acc System/BS (Chp 4,8)
Online Quiz 04 (Mod 4-5)
Plan & Control
MID-SEMESTER BREAK: Monday 18 April - Saturday 23 April
25/4
8
ANZAC DAY
07 Acc System/IS (Chp 4,7)
2/5
Lecture
3/5
Review: Module 06 & 07
08 CFS & OE (Chp 9)
Acc System/BS/IS
Online Quiz 06 (Mod 7)
Workshop
10
26/4
Lecture
27/4
Lecture
28/4
07 Acc System/IS (Chp 4,7)
07 Acc System/IS (Chp 4,7)
Lecture
Lecture
Online Quiz 05 (Mod 6)
Workshop
9
Lecture
9/5
Lecture
4/5
08 CFS & OE (Chp 9)
10/5
Review: Module 08 -
09 FSA (Chp 7,8 & 9)
CFS & OE
Online Quiz 07 (Mod 7-8)
Lecture
5/5
08 CFS & OE (Chp 9)
11/5
09 FSA (Chp 7,8 & 9)
Lecture
12/5
09 FSA (Chp 7,8 & 9)
Assignment 02 – Due 4 pm
(Modules 5 - 9)
Workshop
11
17/5
10 TVM (Chp 10 & 12)
FSA
Online Quiz 08 (Mod 9)
23/5
Review: Module 10 -
Review: Module 11
Lecture
24/5
11 Capital Investment
Lecture
18/5
10 TVM (Chp 10 & 12)
Lecture
Lecture
19/5
10 TVM (Chp 10 & 12)
25/5
11 Capital Investment
Lecture
26/5
11 Capital Investment
Online Quiz 09 (Mod 10)
TVM
Workshop
13
Lecture
Review: Module 09 Workshop
12
16/5
30/5
Lecture
31/5
12 Financial Management
Capital Investment
Lecture
1/6
12 Financial Management
Lecture
2/6
Review: Module 11 & 12 Cap Inv & Fin Mgt
Online Quiz 10(Mod11-12)
th
The semester test will probably be on Friday 15 of April at 6:30pm. This will be confirmed via a Canvas
announcement closer to the date of the test.