Fundamentals in Financial and Management Accounting
Description
This module is designed to introduce students to the basic concepts in financial and management accounting.
The financial accounting element of this module will evaluate and apply the principles of double entry bookkeeping, which underpins the financial accounts. The concept of controls in accounting is introduced though the completion of the bank reconciliation process. Students progress to completing a set of accounts for a sole trader, and are also introduced to the concept of ratio analysis so that the performance of a business against its competitors can be understood.
This management accounting element of this module is designed to introduce students to the basic principles of management accounting in relation to product costing, marginal costing, Cost volume profit analysis and budgets. Once an understanding of these basic principles has been achieved, they will be applied in a variety of scenarios.
Learning Outcomes
Apply double entry accounting system to individual & nominal accounts, extract a trial balance and prepare final accounts for a sole trader
Distinguish between capital and revenue expenditure & apply principles to different scenarios
Evaluate different business formats from an accounting perspective
Evaluate differences between the bank statement and the nominal bank account & prepare the bank reconciliation & correcting entries
Analayse the performance of a business using ratio analysis
Explain the role of management accounting within an organization and the requirements for management information.
Classify costs according to their function, nature and behaviour.
Calculate product cost using traditional absorption costing
Apply the principles of cost-volume-profit analysis and interpret the results.
Prepare and present functional budgets and a cash budget for planning and control purposes.
Consider ethical issues in accounting