Overview

This module introduces you to the theory and practice of financial accounting and management accounting in order to help you to understand the importance of financial accounting procedures in running a business effectively.

This module provides the appropriate foundation in financial accounting to enable students to be successful at Level 4 and beyond in their business-related undergraduate studies.

The main topics covered are:

a) Accounting records and their importance to commercial operations

b) Source materials and their use in preparing journals / day-books and ledger accounts

c) Recording credit and cash transactions using the system of double-entry bookkeeping; checking accuracy and preparing a trial balance

d) Calculation of some key ratios and using these to interpret a basic Statement of Financial Position and Income Statement

e) Trading and profit and loss accounts, depreciation, stock inventories

f) Identifying and understanding the Balance Sheet / Statement of Financial Position and its usefulness to stakeholders

Assessment Strategy

Threshold (40-49% / D- to D+) Has shown knowledge of key areas and principles but there is a weakness in understanding the subject area. Some integration of theory/practice/information in the assessed work but it is intermittent.

Satisfactory (50–59% / C- to C+) Has shown knowledge of the key areas and principles and the main elements of the subject area are understood. Fair integration of theory/practice/information in the assessed work.

Good (60-69% / B- to B+) Has shown a strong knowledge and understands most of the subject area. Good integration of theory/practice/information in the assessed work.

Excellent (70%-100% / A- to A*) Has shown a comprehensive knowledge and detailed understanding of the subject area. Excellent integration of theory/practice/information in the assessed work.

Learning Outcomes

• Understand basic terms, theories, and practice of financial accounting

• Use double-entry bookkeeping to record financial transactions of a company, prepare a trial balance and financial report

• Use key ratios to interpret Statements of Financial Position and Income Statements