Adelaide · ACCT2013 · Financial Accounting 1

ACCT2013: pass the exams, not just read the notes

Your complete guide to University of Adelaide's financial accounting 1 unit. See where the marks are, work real practice questions, and study with an AI tutor that knows ACCT2013.

3 credit points Level 2 undergrad Offered S1 / S2 ~50% exams Adelaide Business School

Sia generates ACCT2013 practice questions, walks through adjusting entries and accounting for inventory step by step, and quizzes you on the material the exam weights most heavily.

Try a real exam-style question

Worked example

Multiple choice · solution revealed after you answer

A retailer uses the perpetual FIFO inventory system. Opening inventory is 100 units at $8 each. During the period it buys 200 units at $10, then 150 units at $12, and sells 300 units. What is the cost of goods sold for the period?

Worked solution

Under FIFO (first-in, first-out), the earliest units bought are assumed sold first, so the 300 units sold are costed from the oldest layers in order.

First layer: the 100 opening units at $8 = $800.
Second layer: the 300-unit sale still needs 200 more units; take the next-oldest layer, 200 units at $10 = $2,000.
Cost of goods sold = $800 + $2,000 = $2,800. The 150 units at $12 (= $1,800) remain as ending inventory, and $2,800 + $1,800 = $4,600 ties back to the total cost available.

The trap: Option $3,066.67 is the weighted-average answer (total cost $4,600 / 450 units = $10.222 per unit, times 300), and $3,300 is the LIFO answer (150 at $12 plus 150 at $10). Both are wrong here because the question specifies FIFO. Option $1,800 is the ending inventory, not the cost of goods sold. Read the cost-flow method and the quantity asked for before computing. classic slip!

your whole grade
Where your grade comes from Exams 50% · Assignment 30% · Test 20%

One exam decides 50% of your grade. Aligned to learning outcomes 1, 2 and 3; tests theoretical knowledge and practical application together. This whole page is built around that.

Overview

What ACCT2013 is, and where it sits

ACCT2013 Financial Accounting 1 is the University of Adelaide's core second-step financial accounting unit. It assumes the introductory double-entry foundation and applies it to a more complex accounting environment, working through the full accounting cycle and the preparation of general purpose financial statements. The unit is built around the AASB Conceptual Framework and a sequence of Australian Accounting Standards (AASB 102 for inventories, AASB 116 for property, plant and equipment, and AASB 3 for business combinations), so every procedural skill is tied back to the standard that governs it.

The unit moves in three modules. The first establishes the Conceptual Framework and the regulatory environment, then drills the accounting cycle: adjusting entries (accruals, deferrals, depreciation), reversing and closing entries, and accounting for retailing including GST. The second module covers accounting for current assets: inventory valuation (FIFO, LIFO and weighted-average cost under perpetual and periodic systems), cash controls and the cash flow statement, and receivables including bad debts and the allowance method. The third module handles non-current assets and business structures, covering initial recognition and depreciation under AASB 116 and the acquisition of a business under AASB 3.

Assessment is weighted towards application. A staged in-class Skill Assessment Checkpoint (held in Weeks 5, 9 and 12) provides feedback as the cycle is built, an Accounting Software Assignment has students self-learn an industry tool such as Xero through AccountingPod, and a comprehensive final exam in the formal exam period tests the whole unit. The set text is Hoggett et al., Accounting, 12th edition (Wiley).

How it differs from its first-year siblings. ACCT2013 is the financial-reporting unit: it teaches how transactions become the published financial statements (balance sheet, income statement, cash flow statement) under the AASB standards. Management Accounting (ACCT2007) is the internal, decision-and-control counterpart (costing, budgeting, variance analysis) rather than external reporting. Advanced Financial Accounting (ACCT6010) is the later, postgraduate-level unit that takes the same standards much further into consolidation, intra-group eliminations and non-controlling interests; ACCT2013 is the foundation those advanced topics assume.

Difficulty & time commitment

Is ACCT2013 hard, and how much time does it take?

ACCT2013 is manageable if you keep a weekly rhythm and treat the back half as the main event. Across student reviews the pattern is consistent: it starts gently and steepens, and the heaviest assessment is the part that separates grades.

Difficulty
3.2 / 5
Moderate. Gentle early, demanding back half. Hard to fail with steady work; an HD takes consistent practice.
Exam load
50%
The exams decide most of the grade. The heaviest single component is 50%.
Weekly time
~9 hrs
The standard load for a 3-credit-point unit, around 1.5 hours per credit point per week including class.

A read across student reviews and course feedback. See what students say ↓

Topics 1 to 4 (conceptual framework, adjusting, reversing and closing entries, retailing)gentler, builds the cycle
Topics 5 to 8 (inventory, cash flow statements, receivables, non-current assets and business structures)steeper, the technical core

The difficulty curve and the assessment weighting point the same way: the back half is harder and worth more. Front-loading effort there is the highest-return decision in the unit.

Is this unit for you

Who tends to do well, and who tends to struggle

You will likely do well if

  • You do the full cycle by hand each week (journal to ledger to adjusted trial balance to financial statements) rather than only reading worked solutions, since accuracy here is a drilled skill.
  • You keep adjusting, reversing and closing entries straight early, because every later topic and the final statements depend on getting the cycle right.
  • You memorise the mechanics of each inventory cost-flow method (FIFO, LIFO, weighted-average) and each depreciation method, and can apply them under both perpetual and periodic systems.
  • You start the Accounting Software Assignment early and treat the AccountingPod practice set seriously, since the due date is firm and no extensions are granted.

You may struggle if

  • You treat accounting as memorisation; the rules only stick when you actually post entries and prepare statements repeatedly.
  • You fall behind on the accounting cycle, so a wrong adjusting entry quietly corrupts the closing entries and every statement that follows.
  • You confuse the inventory methods or the perpetual-versus-periodic timing and apply the wrong cost flow under exam pressure.
  • You leave the software assignment until late and miss the firm AccountingPod due date, forfeiting 30% with no extension available.
do this ↘
What HD students do differently
  • Build one clean, fast template for the full cycle (worksheet, adjusting and closing entries, then the three statements) and reproduce it from a blank page until it is automatic.
  • Make a one-page rule sheet for the technical core: FIFO/LIFO/weighted-average, the allowance method (ageing versus net-credit-sales), depreciation formulas, and the GST treatment on purchases and sales.
  • Practise the cash flow statement specifically (operating, investing, financing), since reconstructing it from comparative balance sheets is a common stumbling block.
  • Drill past problem-solving questions timed for the Skill Assessment Checkpoint and the short-response final, checking your full working, not just the final figure.

Syllabus

The 8 topics, topic by topic

The exam-weight marker on each topic shows where the marks concentrate. The amber topics carry the highest exam weight.

Module 1

T1 · Conceptual Framework and Regulatory Environment

Hoggett Ch 1 to 2

The AASB Conceptual Framework: the objective of financial reporting, the qualitative characteristics of useful information, the elements of the financial statements, and recognition and measurement. The role of the AASB and the regulatory environment.

Lower exam weight
Module 1

T2 · Adjusting entries

Hoggett Ch 3 to 4

End-of-period adjustments on the accrual basis: accrued revenues, accrued expenses, prepaid (deferred) assets, unearned (deferred) revenues, and depreciation, so the statements report the correct period.

Module 1

T3 · Reversing and closing entries

Hoggett Ch 5

Reversing entries to simplify the new period, closing entries that reset temporary accounts (revenues, expenses, dividends) to zero through the Profit or Loss Summary, and the temporary-versus-permanent account distinction and its effect on retained earnings.

Lower exam weight
Module 1

T4 · Accounting for retailing and GST

Hoggett Ch 6

Recording the buying and selling of inventory, the treatment of GST (Goods and Services Tax) on purchases and sales, and the structure of a retail (classified) income statement.

Lower exam weight
Module 2

T5 · Accounting for inventory

Hoggett Ch 13

Inventory valuation under FIFO, LIFO and weighted-average cost; perpetual versus periodic inventory systems; and adjustments for shrinkage, obsolescence and write-downs to the lower of cost and net realisable value under AASB 102.

Module 2

T6 · Accounting for cash and the cash flow statement

Hoggett Ch 11

Cash controls, bank reconciliation and petty cash, the purpose of the cash flow statement, and preparing one with operating, investing and financing sections.

Module 2

T7 · Accounting for receivables

Hoggett Ch 12

Recognition and measurement of accounts receivable, accounting for bad debts, the direct write-off method versus the allowance method, and estimating the allowance for doubtful debts by the ageing-of-receivables and net-credit-sales approaches.

Module 3

T8 · Non-current assets and business structures

Hoggett Ch 14 to 16

Initial recognition and measurement of non-current assets and directly attributable costs under AASB 116, depreciation methods (straight-line, units of production, diminishing balance), derecognition, and acquiring a group of assets that constitute a business under AASB 3 including goodwill.

How it's assessed

Assessment structure

ComponentWeightFormat & timing
Skill Assessment Checkpoint20%In-class problem-solving test (written) held in three stages to evaluate foundational financial accounting skills and give feedback before more advanced topics. Weeks 5, 9 and 12. Aligned to learning outcomes 1, 2 and 3; staged so earlier concepts are reinforced before progressing.
Accounting Software Assignment30%Practical design project: self-learn an industry-standard accounting software (such as Xero, delivered via AccountingPod), with a practice set and an assessed set. Around Week 10 (practice and assessment sets open earlier in the semester; due date is firm, no extensions due to the software vendor contract). Aligned to learning outcome 3; bridges accounting theory and practical software application.
Final exam50%Comprehensive invigilated written exam, short-response questions covering the whole unit. During the Adelaide University exam period. Aligned to learning outcomes 1, 2 and 3; tests theoretical knowledge and practical application together.
Skill Assessment Checkpoint20%
In-class problem-solving test (written) held in three stages to evaluate foundational financial accounting skills and give feedback before more advanced topics.
Accounting Software Assignment30%
Practical design project: self-learn an industry-standard accounting software (such as Xero, delivered via AccountingPod), with a practice set and an assessed set.
Final exam50%
Comprehensive invigilated written exam, short-response questions covering the whole unit.
  • Pass on a weighted average of at least 50% across the three components. No single-component hurdle is stated in the unit materials reviewed.
  • The final exam is comprehensive and uses short-response questions across the whole unit, so the full working (journals, schedules and statements) matters rather than just a final figure. The Skill Assessment Checkpoint is a staged in-class problem-solving test in Weeks 5, 9 and 12.
  • Calculator policy: A calculator is required for the numeric questions (inventory, depreciation, cash flow and receivables working). Confirm the permitted-calculator rule against the exam instructions, as software-based assessment runs separately via AccountingPod.
read this! If you read nothing else

This is an exam-cram unit. With the exams at 50% of the grade and the final exam alone at 50%, your result is overwhelmingly decided by how well you perform under time pressure. Aligned to learning outcomes 1, 2 and 3; tests theoretical knowledge and practical application together.

Final exam timing: approx Nov 2026 (S2 offering, confirm against the official exam timetable). Confirm the exact date and venue on the official exam timetable.

How to actually pass it

A weekly rhythm, two checklists, and the traps to avoid

The unit rewards consistency over cramming, and practice over re-reading. Here is the loop that works, then what to have nailed before each exam.

The weekly loop

Before the workshop
Watch the assigned topic videos and read the set Hoggett chapter, then attempt that week's case-based and unseen questions so the workshop confirms rather than introduces the method.
During the workshop
Work the unseen questions actively and post the journals and schedules yourself rather than copying solutions; the unseen questions are released with solutions afterwards to self-check.
After the workshop
Re-do the workshop problems from a blank page, then check against the posted solutions, and note any rule you got wrong on a running one-page sheet.
End of each topic
Reproduce the topic's key procedure end to end (for example a full FIFO inventory card, a depreciation schedule, or a cash flow statement) and add its rule to your single revision sheet.

Before the mid-semester checklist

  • Be fluent with the whole accounting cycle before the Week 5 Skill Assessment Checkpoint: adjusting entries (accruals, deferrals, depreciation), reversing and closing entries, and the classified income statement.
  • Drill GST on purchases and sales and the retail income statement, since accounting for retailing sits in the first module.
  • Practise problem-solving questions under timed, closed conditions, because the checkpoint is an in-class written test.
  • Sit each checkpoint stage (Weeks 5, 9 and 12) seriously; together they are worth 20% and they flag exactly which procedures you have not yet locked in.

Before the final heaviest topics

  • Cover the whole unit, because the final exam is comprehensive: the conceptual framework, the full cycle, inventory, cash flow, receivables and non-current assets.
  • Rehearse the high-weight technical core: inventory valuation under both perpetual and periodic systems, depreciation under all three methods, the cash flow statement, and the allowance for doubtful debts.
  • Practise short-response questions and show full working (journals, schedules and statements), since marks follow the method, not just the answer.
  • Tie each procedure back to its standard (AASB 102, 116 and 3) so you can justify the treatment as well as compute it.

The mistakes that cost marks

01

Letting one wrong adjusting entry cascade. A single mis-posted accrual, prepayment or depreciation adjustment flows through the adjusted trial balance, the closing entries and every financial statement. Check the cycle at the worksheet stage before preparing the statements, because errors compound rather than stay local.

02

Applying the wrong inventory cost flow. FIFO, LIFO and weighted-average give different cost of goods sold and ending inventory, and perpetual versus periodic timing changes the figures again. Read which method and which system the question specifies before computing, rather than defaulting to a favourite.

03

Confusing the direct write-off and allowance methods. The allowance method estimates bad debts in advance (by ageing of receivables or a percentage of net credit sales) and is the standard treatment; the direct write-off method only records a bad debt when it is confirmed. Mixing the two, or the ageing and net-credit-sales estimates within the allowance method, is a common receivables error.

04

Underestimating the software assignment deadline. The Accounting Software Assignment is 30% of the grade and, because of the AccountingPod vendor contract, the due date is firm with no extensions. Treat the practice set as real preparation and submit the assessed set with time to spare.

Teaching team

Who teaches ACCT2013

The bios below are factual. The star ratings are not ours: they are impressions from students who have taken the unit, so you can hear from people who sat in the lectures.

Course Coordinator

Philip Johnson

Coordinates Financial Accounting 1 in the Adelaide Business School, University of Adelaide, and runs the unit's announcements, workshops and the AccountingPod software assignment.

Student ratingNo student ratings yet

Teaching team as listed in the unit materials reviewed. AskSia does not rate lecturers; star ratings are submitted by students who have taken ACCT2013.

Formula & concept sheet

The vocabulary and formulas you must own

Cost of goods sold (FIFO, perpetual)
Cost the units sold from the earliest purchase layers first. COGS = sum of the oldest unit costs up to the quantity sold; the remaining newest layers form ending inventory. Available cost = COGS + ending inventory.
Weighted-average cost per unit
Total cost of goods available for sale divided by total units available. COGS = average cost per unit times units sold; ending inventory = average cost per unit times units on hand.
Lower of cost and net realisable value (AASB 102)
Inventory is measured at the lower of its cost and its net realisable value (estimated selling price less estimated costs to complete and sell). Write the carrying amount down when NRV falls below cost.
Straight-line depreciation
Depreciation per year = (cost minus residual value) divided by useful life. The same amount is expensed each period.
Diminishing-balance depreciation
Depreciation = the diminishing-balance rate times the opening carrying amount (cost less accumulated depreciation). The expense is higher early and falls over time; residual value is the floor, not a subtraction in the formula.
Units-of-production depreciation
Depreciation per unit = (cost minus residual value) divided by total expected output; period expense = per-unit rate times the units produced that period.
Allowance for doubtful debts (ageing method)
Estimate the required closing allowance by applying loss percentages to each age band of receivables. The bad debts expense is the adjustment that brings the existing allowance balance up (or down) to that required closing figure.
Allowance for doubtful debts (net-credit-sales method)
Bad debts expense = a percentage times net credit sales for the period, added directly to the existing allowance (an income-statement approach), rather than targeting a closing balance.
Net accounts receivable
Gross accounts receivable minus the allowance for doubtful debts equals the net realisable receivable reported on the balance sheet.
Closing entries
Transfer the balances of temporary accounts (revenues, expenses and dividends) to the Profit or Loss Summary and then to retained earnings, resetting the temporary accounts to zero for the next period.
GST on a sale
For a GST-registered seller, GST collected = the GST-exclusive sale price times the GST rate; it is recorded as a GST liability (GST collected), not as revenue.

Common acronyms: AASB · FIFO · LIFO · WAC · COGS · NRV · PPE · GST · ADD.

What students say

What students actually say about ACCT2013

Recurring themes from student reviews, paraphrased in our own words.

On difficulty
  • Described as a heavy-content unit where the volume of rules and the precision required, rather than conceptual depth, are the challenge.
  • Manageable for students who keep up week to week, because the accounting cycle is cumulative and errors carry forward.
  • The technical core (inventory, depreciation, cash flow and receivables) is where students report needing the most repeat practice.
Practise these topics with Sia →
How students revise
  • The unit follows the Hoggett textbook closely, and students re-work the chapter and workshop problems to drill the journals and schedules.
  • Students seek out worked-example and step-by-step content for the technical procedures, especially the cash flow statement and inventory methods.
Make your own notes and flashcards →
On the software assignment
  • The AccountingPod or Xero assignment is reported as time-consuming but a useful real-world skill, with the firm no-extension deadline a recurring warning.
Get instant walkthroughs →

Recurring student opinions, paraphrased and aggregated, not official course information.

Set texts

The prescribed reading

The syllabus references map straight onto these.

Required textbook

Accounting

Hoggett, Medlin, Chalmers, Beattie, Hellmann and Maxfield. ISBN 9781394184644. Publisher page

Where it fits

Prerequisites, related units & why it matters

ACCT2013 builds on an introductory financial accounting unit (double-entry, the basic accounting cycle and the core statements). It is the financial-reporting foundation for later accounting units; confirm the exact prerequisite chain against the official program rules.

Why it matters beyond the grade. Financial Accounting 1 installs the reporting skills (journals to adjusted trial balance to the published statements, inventory and depreciation rules, cash flow statements and the allowance for doubtful debts) that every accounting and finance pathway assumes, and the AccountingPod or Xero exposure mirrors real practice. It underpins professional accreditation pathways (CPA Australia and CA ANZ) and roles in audit, financial reporting and corporate finance.

FAQ

Frequently asked questions

Is ACCT2013 hard?

It is moderate. The concepts are not deeply abstract, but the unit is cumulative and unforgiving: a slip in an adjusting entry flows through to the closing entries and the financial statements. The volume of standards and rules (AASB 102, 116 and 3) and the precision required are what make it demanding, more than any single hard idea. Consistent weekly practice of the full journal-to-statements cycle is what carries students through.

How is ACCT2013 assessed?

Three components: a 20% Skill Assessment Checkpoint, which is a staged in-class problem-solving test held in Weeks 5, 9 and 12; a 30% Accounting Software Assignment where you self-learn industry software (such as Xero via AccountingPod); and a 50% comprehensive final exam in the formal exam period. You pass on a weighted average of at least 50%, with no single-component hurdle stated in the materials reviewed.

What software do I need for the assignment?

The Accounting Software Assignment uses an industry-standard package delivered through AccountingPod (commonly Xero). You complete a practice set first to learn the tool, then an assessed set. It is self-directed, you need a computer with internet access, and because of the vendor contract the due date is firm with no extensions, so start early. Technical questions go to AccountingPod support, not the teaching staff.

Which textbook does ACCT2013 use?

Hoggett, Medlin, Chalmers, Beattie, Hellmann and Maxfield, Accounting, 12th edition (John Wiley and Sons Australia). You need the 12th edition specifically, as earlier editions differ in page, section and question numbering. It is available from Wiley Direct, as a limited-licence e-copy via MyReadings, or second-hand.

How much maths is involved?

It is numeric but not algebra-heavy. Expect inventory valuation (FIFO, LIFO and weighted-average), depreciation schedules (straight-line, units of production and diminishing balance), cash flow statement preparation, and allowance-for-doubtful-debts calculations. The challenge is methodical accuracy and following the right rule, not advanced mathematics, and a calculator handles the arithmetic.

What standards does the unit cover?

The unit is anchored in the AASB Conceptual Framework and three core standards: AASB 102 for inventories (cost-flow methods and the lower of cost and net realisable value), AASB 116 for property, plant and equipment (initial recognition, directly attributable costs and depreciation), and AASB 3 for acquiring a group of assets that constitute a business, including goodwill. You are expected to understand the standards' impact, not to memorise their full text.

Study ACCT2013 with Sia

Work through adjusting entries, accounting for inventory, accounting for cash and the rest of the unit with a tutor that knows it and quizzes you on the topics the assessments weight most heavily.

Start studying with Sia