Credit Points: 15

Prerequisite: BB104 Introductory Accounting

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a second-year Core Unit in the Bachelor of Business, major in Accounting, and offered as an Elective Unit in the Bachelor of Business Marketing, and Bachelor of Business Management.

This unit builds on the basic accounting principles covered in BB104 Introductory Accounting. It assists student understanding of financial accounting information, and the regulatory accounting environment. The unit develops expertise in the accumulation, processing and presentation of financial information in relation to sole proprietorships and partnerships in the trading, and service sectors. This unit lays the foundation for advanced core accounting units.

The unit topics include:

  1. Review of accounting principles and the accounting equation
  2. Recording business transactions using the double entry system
  3. Adjusting and closing entries
  4. Preparation of financial statements
  5. Accounting for inventory
  6. Internal control and cash
  7. Property, plant and equipment, Intangibles
  8. Accounting for partnerships
  9. Receivables accounting for bills receivable and bad debts
  10. Liabilities warranties and contingent liabilities

Learning Outcomes

At the completion of this unit students should be able to:

  1. Interpret and explain accounting concepts and principles
  2. Discuss the importance of accounting standards
  3. Identify, evaluate and design solutions to ethical issues in accounting
  4. Record financial accounting transactions using the accrual method of accounting
  5. Prepare general purpose financial statements

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour
Face to Face


Assessment Task
Learning Outcomes Assessed
Contribution in class a-e* 10%
Class Test 1 a,d* 5%
Class Test 2 d,e* 10%
Group assignment (written report) a,d,e* 25%
Final Exam (3 hours) a-e* 50%
Total   100%

*refer to learning outcomes above.


Nobles, T., Mattison, B., Matsumura, E., Best, P., Fraser, D., Tan, R., & Willett, R., (2016). Horngren’s Financial Accounting, 8th edition. Australia: Pearson Education

Reference Reading

  • Trotman,K., Gibbins,M., & Carson, E., (2016). Financial Accounting: An Integrated Approach, 6th edition. Australia: Cengage Learning
  • Atrill, P., Harvey, D., & McLaney, E., (2014). Accounting: an introduction, 6th edition., Port Melbourne: Pearson Education Australia
  • Weygandt, J., Kieso, D., & Kimmel, P. (2013). Accounting principles, 11th edition. NJ: John Wiley
  • Deegan, C., (2012). Australian financial accounting, 7th edition. Sydney: McGraw-Hill Australia
  • Jackling, B., Raar, J., Wines, G., & McDowall, T., (2010). Accounting: a framework for decision making, 3rd edition. North Ryde, NSW: McGraw-Hill Australia Pty Ltd.

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicate Independent and Lifelong Learning Ethics Analytical and Problem Solving  Cultural and Global Awareness Team work Specialist knowledge of a field of study


Colour coding    

Extent covered

                                The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
  The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
  The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
  The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
  The standard  is not considered, there is no theory or practice or activities associated with this standard