Step4

Chapter 1

I found really easy to read and understand this study guide I liked the way the study guide is written and it really helped me to get some clue and understand the concepts of accounting.

I really want to say thanks to Martin as I didn't have any difficulties with understanding this chapter. To be honest as English is my second language I hate to read textbook. However it was quite fun to read and I liked the sentence “Accounting is, at the end of the day, a model. Not a fashion model, or a model plane, but a business model”. Haha.

However, it was little bit boring to read the list of businesses in Yeppoon. It was too much photos and details and I just skipped that part as I don’t think it is necessary.

I strongly agree that “accounting is about reality” Cannot imagine life without accounting.

KQC

Assets and liabilities represent the value of the firm. Equity represents the value of the interest of its owners in the firm

Fundamental accounting equation: Assets –Liability = Equity
Extended accounting equation: Assets = Equity + (Revenue-Expenses) +Liabilities

What does five elements of accounting?

What is really going on in a firm?

What is accounting? (This is still the easiest and hardest question for me!)

Double entry accounting and the reason of using it.

Chapter 3

After reading this chapter I could go through my annual report. It really gave me some clue to get to know my firm better by using and reading annual report. I also used the footnotes of the annual reports to get the details.

KQC

The firm balance sheet show that it financial position 

There are four main financial statements: balance sheet, income statement, statement of changes in equity and cash flow statement.

Income statement shows the revenue and expenses so we can get to know the story of how the company is going how much they made the profit over the period.

I still have problems in understanding the ration analysis and how it works with accounting.