This course is a natural progression from Bookkeeping Introduction. It covers stock control and other issues not covered in Bookkeeping I, and looks at accounting for trading firms, and the differences between recording and reporting. It consists of 12 lessons.
Are you a Primary Producer or Indigenous Land Owner?
This course has been assessed and approved by the Department of Agriculture, Fisheries & Forestry as being suitable for funding for participants that meet the selection criteria. Eligible participants are able to claim up to $1500 per financial year to attend FarmReady approved courses, with additional funding available for associated reasonable travel, accommodation and childcare expenses.
Contact our Student Advisors on our
TOLL FREE NUMBER - 1800 663 989, for more information on how to apply.
Lesson Structure
There are 12 lessons in this course:
- Trading firms and accounting rules
- Physical Inventory System
- Perpetual Inventory System
- Inventory Valuation
- Accounting for bad and doubtful debts
- Classified Profit and Loss Statements for trading firms
- Control Accounts
- Budgeting for Trading Firms
- Statement of Cash Flows
- Alternatives in Accounting
- Analysis and Interpretation of Accounting Reports
- Business Expansions and Sources of Finance
Each lesson culminates in an assignment which is submitted to the school, marked by the school's tutors and returned to you with any relevant suggestions, comments, and if necessary, extra reading.
Courses Direct has been named an "Accredited Training Provider" by the Institute of Certified Bookkeepers. Students who enrol in the Bookkeeping - Introduction, Bookkeeping Intermediate or any MYOB course offered by Courses Direct will receive automatic Student Membership to the institute . For more information on this institute, please visit www.icb.org.au.
Aims
- Describe the nature of trading businesses, and the differences between recording and reporting for trading businesses and service businesses.
- Describe the nature of stock and the physical system of recording inventory.
- Explain the perpetual or continuous system of recording for inventory, the use of stock cards and methods of stock valuation.
- Distinguish between the main methods for valuing merchandise on hand and the procedures that need to be set up in order to maintain the different systems.
- Distinguish between bad debts and doubtful debts
- Explain how to prepare the journal entries and understand the effect of bad debts on final accounting reports.
- Extend your knowledge of the classification in accounting reports and how it is applied to trading firms.
- Acquire an understanding of control accounts and their uses.
- Explain of the use of budgets and to apply the skills learned.
- Explain the use and role played by statements of cash flows.
- Explain the different accounting alternatives available to business and the advantages and disadvantages of the various alternatives.
What You Will Do- Describe the flow of financial information through a trading firm by preparing a flow chart.
- What are the four general objectives of accounting?
- Explain how a physical item may be classified as inventory for one business but as a non-current asset for another.
- Outline the two ways the value determined by a physical stocktake affects the final accounting report.
- What are the two processes involved in completing a physical stocktake?
- Write a brief description of what is involved in the perpetual inventory system.
- State and describe four advantages and four disadvantages of the perpetual inventory system.
- List the three special journals which need to be modified if a business changes from the physical method to the perpetual method or recording inventory.
- Explain the role of barcodes in recording inventory transactions.
- List four items of financial information that can be generated on a daily basis if a computerised barcoding system is used.
- Explain the relationship between the doctrine of conservatism and the lower of cost and NRV rule
- Distinguish between the terms doubtful debts and bad debts.
- Explain how the allowance for doubtful debts can incorporate both bad and doubtful debts for a period.
