Introducing financial reporting: What is accounting? Forms of business organisation, concepts. Income statements and statements of financial position.
Preparation of financial accounts: Double-entry bookkeeping: accounting for business transactions. Adjustments: accruals, prepayments, bad debts and provisions. Adjustments: depreciation, disposal of non-current assets, revaluation. Inventory and cost of goods sold.
Other financial accounting issues: Liabilities. Equity. Internal control: bank reconciliations, control accounts and suspense accounts. Incomplete records. Partnership accounting. Cash flow statements.
Interpretation of financial accounts: Published financial statements and auditing. Interpretation of financial statements.
Management accounting and finance: Management accounting introduction: the meaning of ‘cost’. Contribution, break-even analysis and limiting factors. Absorption costing. Budgeting and cash flow forecasting. Standard costing and variances. Capital investment appraisal.
If you complete the course successfully, you should be able to:
- Identify and explain the key purposes and concepts of accounting and finance
- Use established techniques, produce financial information which will enable users of the information to make informed economic choices
- Interpret these financial statements while appreciating the inadequacies of these models.
Unseen written exam (Two-hour 15 minutes).
- Randall, H and Hopkins, D (2015). Accounting (Cambridge: Cambridge University Press) ISBN: 9781107690622