ACC10007 Lecture Notes - Lecture 1: Accounts Receivable, Event Management, Retained Earnings
Feb 26
Financial Information for Design Making
Financial Accounting vs Management Accounting
Fixed cost refers to expenses don't fluctuate with increase or decrease in company profits.
Variable cost refers to expenses that do fluctuate with increase or decrease in company profits.
Qualitative vs Quantitative
value vs numerical
Decision Making
Planning is essential, prudent decision making leads to effective planning, planning covers both
long and short term scenarios and can adapt to change.
Eg. preparing budgets are considered planning. Typically prepared yearly.
Objectives/long-term goals
Detailing what the business is aiming to achieve (measurable and meaningful) and how they
intend to go about it in order to make a profit.
Maximizing sales revenue and return on capital employed.
Control and Monitoring
The process of making planned events occur, centralized thought of realism. Making sure goals
are within reach, appropriate and therefore meaningful.
Every 3-6 months checking and correcting any over/under spending (positive vs negative
spending) both of which should be investigated.
Uncontrollable factors impact said control over budget including cost of raw materials,
recession. This would be highlighted in your budget vs actual (ideal vs reality).
Profit
Retained earnings, reinvesting profit in the business, withdraw for personal use, pay it as
dividends to shareholders as reward for investing in your business. Businesses tend to do both.
Financial statements
viewed by shareholders, regulatory ?, employees, companies intending to buy business, banks
and tax offices.
Liability - A present obligation of the entity (as a result of past events), the settlement of which
is expected to result in an outflow of economic benefits,
Asset - A rescue controlled by the entity (as a result of past events) from which future economic
benefits are expected.
Current vs NonCurrent Liabilities
will repay in next 12 months vs will not repay in next 12 months
Current vs NonCurrent Assets
will turn into cash in next 12 months vs will not turn into cash in net 12 months
Document Summary
Fixed cost refers to expenses don"t uctuate with increase or decrease in company pro ts. Variable cost refers to expenses that do uctuate with increase or decrease in company pro ts. Planning is essential, prudent decision making leads to effective planning, planning covers both long and short term scenarios and can adapt to change. Detailing what the business is aiming to achieve (measurable and meaningful) and how they intend to go about it in order to make a pro t. Maximizing sales revenue and return on capital employed. The process of making planned events occur, centralized thought of realism. Making sure goals are within reach, appropriate and therefore meaningful. Every 3-6 months checking and correcting any over/under spending (positive vs negative spending) both of which should be investigated. Uncontrollable factors impact said control over budget including cost of raw materials, recession. This would be highlighted in your budget vs actual (ideal vs reality).
