ACCT1501 (1 Viewer)

[fortune_cookie]

Come on. ACCT1501 is easy. I got 93 and I probably spent about 5 hours on it each week. Pretty good considering the general guide is 10hours of work per week

 

[Trans4M]

1. Marketing Costs Include:
- Salaries & Comissions of sales staff
- Storing & Packaging costs
- Promotion Costs
- All of the Above


2. Using the Periodic Inventory Method, entries are made in the inventory account when stock is
- Delivered
- Sold
- Paid for
- None of the above

Cant decide between c or d, there is a purchases debit when stock is bought, but is that an inventory account entry?

Cant remember this XD

3. Which of the following statements about a liability is true
- a liability is restricted to being a legal debt
- a liability must result from a past transaction or event

For the third one there is a definition of liability and one of the critieria is that it must be based on a past transaction. It does not have to be a legal debt can just be some obligation.

 

[4025808]

ffs haven't started accounting quiz yet. gonna be starting this soon :S

 

[seremify007]

For the third one there is a definition of liability and one of the critieria is that it must be based on a past transaction. It does not have to be a legal debt can just be some obligation.

Per AASB 137:

A liability is a present obligation of the entity arising from past
events, the settlement of which is expected to result in an
outflow from the entity of resources embodying economic
benefits.

 

[fortune_cookie]

Per AASB 137:

Accounting is so easy, and yet so boring. Just memorising standards all day. I had a lecturer last semester that would quote the actual page number and paragraph number. Seriously, who would go after the lecture and check it? Come to think of it, there was no way to tell if he was actually correct. Maybe he just made up page and paragraph numbers to make himself look smart, and he banked on no one going to verify it.

That is just 100% memoisation. Kinda sad when you think about it.

 

[Tortilla]

Accounting is so easy, and yet so boring. Just memorising standards all day. I had a lecturer last semester that would quote the actual page number and paragraph number. Seriously, who would go after the lecture and check it? Come to think of it, there was no way to tell if he was actually correct. Maybe he just made up page and paragraph numbers to make himself look smart, and he banked on no one going to verify it.

That is just 100% memoisation. Kinda sad when you think about it.

Well than i guess you will not truly understand it & its flaws

 

[Tortilla]

Seremify, what are your answers to Q1 & Q2

 

[seremify007]

Accounting is so easy, and yet so boring. Just memorising standards all day. I had a lecturer last semester that would quote the actual page number and paragraph number. Seriously, who would go after the lecture and check it? Come to think of it, there was no way to tell if he was actually correct. Maybe he just made up page and paragraph numbers to make himself look smart, and he banked on no one going to verify it.

That is just 100% memoisation. Kinda sad when you think about it.

Or maybe some people just remember core concepts and where to look? Unfortunately accounting in practice where we have to analyse and apply the standards is very different to what you studied in uni and many people who may have actually enjoyed it will never even give it a second look.

 

[halapenyo]

Accounting is so easy, and yet so boring. Just memorising standards all day. I had a lecturer last semester that would quote the actual page number and paragraph number. Seriously, who would go after the lecture and check it? Come to think of it, there was no way to tell if he was actually correct. Maybe he just made up page and paragraph numbers to make himself look smart, and he banked on no one going to verify it.

That is just 100% memoisation. Kinda sad when you think about it.

dude what are you on about. there is hardly any memorising in accounting.

 

[seremify007]

1. Marketing Costs Include:
- Salaries & Comissions of sales staff
- Storing & Packaging costs
- Promotion Costs
- All of the Above

Promotion costs.

Storing/packaging costs would typically be capitalised into inventory rather than being expensed to the P&L, and salaries/commissions are period P&L expenses which typically feed in to salaries/wages expense or commissions expense. Unlikely to be included in marketing expense unless it's through a contracting agency or something.

2. Using the Periodic Inventory Method, entries are made in the inventory account when stock is
- Delivered
- Sold
- Paid for
- None of the above

Isn't it none of the above? Periodic inventory method relies on looking at inventory on hand at balance date or whenever they need to prepare financial statements and hence the journal entries aren't really processed until then. I can see what your concern is regarding option C (i.e. when stock is paid for) because you could assume they would Dr Inventory, Cr Cash at that point in time, but under the periodic system, from memory this is held under a separate asset account called Purchases (whereby you Dr Purchases rather than Inventory).

I'm reasonably confident on this one but don't quote me as I specialise in financial services and accounting for financial instruments and slightly less tangible things.

Hope this helps.

 

[fortune_cookie]

Promotion costs.

Storing/packaging costs would typically be capitalised into inventory rather than being expensed to the P&L, and salaries/commissions are period P&L expenses which typically feed in to salaries/wages expense or commissions expense. Unlikely to be included in marketing expense unless it's through a contracting agency or something.




Isn't it none of the above? Periodic inventory method relies on looking at inventory on hand at balance date or whenever they need to prepare financial statements and hence the journal entries aren't really processed until then. I can see what your concern is regarding option C (i.e. when stock is paid for) because you could assume they would Dr Inventory, Cr Cash at that point in time, but under the periodic system, from memory this is held under a separate asset account called Purchases (whereby you Dr Purchases rather than Inventory).

I'm reasonably confident on this one but don't quote me as I specialise in financial services and accounting for financial instruments and slightly less tangible things.
Hope this helps.

That's got like nothing to do with accounting.

I remember my first Business Finance tutorial. The tutor said that accountants and finance can't get along. Accounting is all about book value and Finance deals with market values and timing of cash flows.

I have to agree with the tutor. Finance > Accounting.

 

[fortune_cookie]

dude what are you on about. there is hardly any memorising in accounting.

I think you have it mixed up. Actually, the majority of Accounting (at least first year accounting) is memorising. Yes, there are a few logical things in Financial Statement Analysis or Policy Choice which you can't memorise. E.g. What effect does using reducing balance vs straight line depreciation have on your current year's profit and future year's profit etc. But most of it is memorisation.

What is the first thing you do in accounting? You memorise the journal entries.

Dr for increases in assets and Cr for increases in liabilities and equity. Straight from the first week you are memorising.

 

[seremify007]

That's got like nothing to do with accounting.

I remember my first Business Finance tutorial. The tutor said that accountants and finance can't get along. Accounting is all about book value and Finance deals with market values and timing of cash flows.

I have to agree with the tutor. Finance > Accounting.

Let's see, you're basing your views on both uni and a tutor. I recommend you actually work in either of the industries (or both) and see it for yourself.

I work in an accounting firm and one of the things I do is advise on the accounting implications of transactions and valuations of investments which includes understanding the standards, the structure and legal nature of the transaction, timing and probability of cash flows (as you mentioned), industry multipliers, market depth of comparable/traded instruments, discount rates, etc... also note I am a qualified accountant.

 

[b00m]

Come on. ACCT1501 is easy. I got 93 and I probably spent about 5 hours on it each week. Pretty good considering the general guide is 10hours of work per week

well considering most people wouldnt have studied accounting for more than 2 hours a week or even less, i'd say u were one of the few who did the most

the general guide of 10 hours is a joke.

 

[seremify007]

I think you have it mixed up. Actually, the majority of Accounting (at least first year accounting) is memorising. Yes, there are a few logical things in Financial Statement Analysis or Policy Choice which you can't memorise. E.g. What effect does using reducing balance vs straight line depreciation have on your current year's profit and future year's profit etc. But most of it is memorisation.

What is the first thing you do in accounting? You memorise the journal entries.

Dr for increases in assets and Cr for increases in liabilities and equity. Straight from the first week you are memorising.

You're learning basic concepts. After all, accounting is driven by a set of rules and principles which have been adopted worldwide and hence facilitate both acceptance and comparability. Without appreciation of this, your ability to go into the deeper concepts and issues such as the flaws and gaps in accounting, and the implications for transactions will be limited. I agree to an extent you need to rote learn some of the key concepts until they become second nature, but how is that different from anything else?

I think your understanding/appreciation of the challenges in (real life) accounting policy is rather shallow.

 

[fortune_cookie]

I think your understanding/appreciation of the challenges in (real life) accounting policy is rather shallow.

I don't know. I was kicking ass in accounting policy choice for both Accounting 1A and 1B, and the tutor said that the concepts we were covering were actually considered somewhat difficult. HA, I laughed. The two or three weeks we did on financial statement analysis and accounting policy choice were a brezze for me. Wow, you want to manipulate your profit then just use a certain type of inventory valuation. What happens to this year's profit and next year's profit when you recognise revenue early. LOL. Isn't it obvious? Want to make your accounting ratios look artifically better, just do something dodgy. Want to improve your current ratio? Just sell a long term asset to increase your cash (current assets). What about debt to equity ratio? Just attempt to classify some debt (e.g. convertible notes) as equity. Etc. It's easy.

I was having a great time just cruising in the lectures. I reckon I could have done an accounting major and consistently got 90+ for accounting subjects, but it would just be too boring.

 

[seremify007]

I don't know. I was kicking ass in accounting policy choice for both Accounting 1A and 1B, and the tutor said that the concepts we were covering were actually considered somewhat difficult. HA, I laughed. The two or three weeks we did on financial statement analysis and accounting policy choice were a brezze for me. Wow, you want to manipulate your profit then just use a certain type of inventory valuation. What happens to this year's profit and next year's profit when you recognise revenue early. LOL. Isn't it obvious? Want to make your accounting ratios look artifically better, just do something dodgy. Want to improve your current ratio? Just sell a long term asset to increase your cash (current assets). What about debt to equity ratio? Just attempt to classify some debt (e.g. convertible notes) as equity. Etc. It's easy.

I was having a great time just cruising in the lectures. I reckon I could have done an accounting major and consistently got 90+ for accounting subjects, but it would just be too boring.

PM'd you- was originally going to post here but realised it might be a bit too sensitive to be divulging into the public just for the sake of providing a personal insight. Please don't repost the PM here.

One thing I will add here though is that you're right- there's always going to be short term incentives to manipulate short term outcomes, but for the real strategists, the challenge is planning it out for the long term. Analysts and the market can take a short term hit if they were expecting something, but planning for the longer term game and minimising volatility/fluctuations- that's the challenge.