Monash College Unit Guide

ACCOUNTING 2 (MCD2060)

Purpose

This unit develops students' knowledge in accounting theory and in the analysis and interpretation of accounting information.

Prerequisite

MCD2010 Accounting 1.

Learning outcomes

On completion of this unit, students should be able to:

1. Examine the alternative accounting systems involving the measurement of assets and liabilities, and their effect on financial statements.
2. Detail the issues surrounding the valuation of inventory in financial statements.
3. Identify, calculate and account for liabilities in particular leases.
4. Prepare a set of accounts for the establishment of a company.
5. Define revenue and review the various points at which revenue may be recognised.
6. Define depreciation and review its treatment as an expense.
7. Analyse and interpret financial statements using long-term and short-term financial points of view and
8. Critically review the conceptual framework surrounding financial statements and its implications in the establishment of accounting standards.

Assessment

Essays, tests or other assignments: 30%

Examination: 70%

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