Introduction to Financial and Management Accounting
Rhedir gan Bangor University International College
20.000 Credydau neu 10.000 Credyd ECTS
Semester 1 a 2
Trefnydd: Mrs Laura McKenzie
- To provide the students with an understanding of the purposes, principles, concepts and techniques of accounting.
- To develop the students’ skills in numeracy, verbal and written communication, application, presentation, interpretation, analysis and evaluation using accounting information.
- To allow students to develop generic study skills including; independent research skills, methodical and critical thinking, collecting, summarising and presenting numerical information in an appropriate business format.
- To allow students to interpret, analyse, evaluate, compare, contrast and comment on the performance of a business using financial information.
The Role of Accounting - including; the need for recording, categorising and summarising financial transactions for internal and external information needs. The role of accounting in monitoring and controlling the performance of a business and as an aid to planning and decision making.
The Dual Aspect Concept – the purpose and uses of the double entry bookkeeping system and the trial balance, processing financial transactions to trial balance, evaluating the usefulness of the dual aspect concept (double entry bookkeeping). The classification of expenditure (capital and revenue).
Accounting Adjustments, Journals and Suspense Account - the correction of errors using a journal, and the suspense account.
Control Accounts – preparation and reconciliation of the sales ledger and purchase ledger control accounts
The Accruals (Matching) Concept – the aim and purpose of accruals and prepayments, making adjustments for accruals and prepayments, record adjustments in the ledgers for accruals and prepayments.
Other Accounting Concepts – an overview of the other key concepts Going Concern, Historical Cost, Money Measurement, Materiality, Comparability through Consistency, Prudence, Objectivity, Separate Determination, and Relevance.
Depreciation – causes of depreciation, calculating depreciation using straight line and reducing balance methods, evaluate the most appropriate method for calculating depreciation, calculate the profit or loss on the disposal of an asset, prepare the ledgers for fixed assets, depreciation and disposal, identify and evaluate the problems associated with calculating depreciation.
The Accounting Equation – Assets – Liabilities = Capital, applying the ratio and its relationship to the Balance Sheet.
Types of Organisation– an overview of the different types of organisations including; sole trader, partnerships, non-profit making organisations, private and public limited companies.
Variations in Accounting Terminology – an overview of some of the variations of terminology used in the final accounts e.g. Income Statement v Trading Profit & Loss Account, Statement of Financial Position v Balance Sheet, Inventory v Stock etc
The Final Accounts of a Sole Trader – the purpose of and the preparing of the Trading Profit & Loss Account and Balance Sheet, including adjustments for accruals, prepayments, bad debt, doubtful debt and depreciation.
Interpretation of the Accounts and Ratio Analysis – compare and contrast the final accounts of different organisations, evaluate and analyse the results and the implications for business decision making. Calculate ratios for liquidity and profitability including; current ratio, acid test, stock turnover, net and gross profit margins, return on capital employed (ROCE). Analyse and evaluate business performance based in the information in the financial statements and on the results of the ratio calculations.
Partnership Accounts – the requirements of the Partnership Act 1890, the partnership agreement, the appropriation of profit, the current and capital accounts, changes in the partnership, revaluation, goodwill, and prepare the final accounts of a partnership.
Non-Profit Making Organisation Accounts (Clubs & Societies) – new accounting terminology (including surplus of income over expenditure, deficit, and accumulated fund), preparing the bar trading account, subscription account with adjustments, final accounts (income and expenditure account and balance sheet)
The Regulatory Framework – an overview of the role and purpose of the Financial Reporting Council, UK Generally Accepted Accounting Principles (UK GAAP), Accounting Standards, and the development of International Accounting Standards. Understand the purpose and some of the key requirements of International Accounting Standards, and their link to the key accounting concepts.
Final Accounts for Limited Companies – identify, analyse and discuss the different requirements of the different user groups of corporate reports, preparation of the Income Statement and Statement of Financial Position with adjustments for accruals, prepayments and depreciation. Analyse and evaluate the significance of the information in the final accounts of a limited company.
Manufacturing Accounts – identify and explain prime costs, factory overheads, work in progress, and production costs, prepare the manufacturing account and trading profit and loss account including calculations for apportionment adjustments.
Cash-flow Forecast – the purpose and role of effective cash management including credit control, preparing a cash-flow forecast (cash budget), analyse and evaluate a cash-flow-forecast and make appropriate cash management decisions.
Budgeting – explain the purpose and use of standard costing, prepare a budget with variance analysis, evaluate, compare and contrast budget results, identify key problem areas, and make appropriate recommendations.
Stock Valuation & Management – value stock using First in First Out (FIFO), Last in First Out (LIFO), Average Cost (AVCO) methods, apply and explain the relevant accounting concepts, explain and evaluate the use of Just In Time, Economic Order Quantity methods, and the use ICT in stock management.
ICT Accounting – Understanding and evaluating the use of ICT in accounting including advantages and disadvantages, storing data, security, cost, training and technical problems.
Threshold (D- to D+) (40-49%) Student has shown sufficient grasp of some of the topics studied to have achieved the lowest level of pass which allows progression onto an undergraduate degree programme
Excellent (A- to A*) (70-100%) Student has demonstrated consistent engagement with all topics and issues studied in the module and attained a grade which shows the ability to study effectively at undergraduate degree level.
Good (C- to B+) (50-69%) Student has demonstrated a sound, basic knowledge of most of the topics and issues covered in the module and achieved a grade showing clear suitability for study at undergraduate degree level.
Identify, explain and evaluate the role of accounting in business and the importance of keeping accurate financial records.
Compare, contrast and comment on the performance of a variety of businesses based on the results of key ratio calculations and the information in the final accounts. Prepare the final accounts for partnerships, non-profit making organisations and a limited company, explain and discuss elements of the regulatory framework.
Prepare the manufacturing account, calculate the value of stock using the methods FIFO, LIFO and AVCO, and evaluate the use of ICT in accounting and stock management.
Interpret, analyse, evaluate, compare, contrast and comment on the performance of a business based on the preparation of a cash-flow forecast, budget and variance analysis, and make appropriate recommendations in order to improve business performance.
Classify revenue and capital expenditure, record financial transactions in the ledgers and prepare a trial balance, correct errors using a journal and the suspense account, calculate the accounting equation, calculate, prepare and record adjustments for depreciation, bad debt, doubtful debts, accruals and prepayments, calculate and record the profit or loss on disposal of a fixed asset, and prepare the final accounts for a sole trader.
|Term 2 - Accounting Case Study||50.00|
|Term 1 - Interim Test 1||25.00|
|Term 1 - Interim Test 2||25.00|
Strategaeth addysgu a dysgu
Students will be expected to spend up to 100 hours over the two terms in independent study
1 hour long lecture/presentation of key concepts a week
4 hours a week
- Rhifedd - Medrusrwydd wrth ddefnyddio rhifau ar lefelau priodol o gywirdeb
- Hunanreolaeth - Gallu gweithio mewn ffordd effeithlon, prydlon a threfnus. Gallu edrych ar ganlyniadau tasgau a digwyddiadau, a barnu lefelau o ansawdd a phwysigrwydd
- Adalw gwybodaeth - Gallu mynd at wahanol ac amrywiol ffynonellau gwybodaeth
- Cyflwyniad - Gallu cyflwyno gwybodaeth ac esboniadau yn glir i gynulleidfa. Trwy gyfryngau ysgrifenedig neu ar lafar yn glir a hyderus.
- Rheloaeth - Gallu defnyddio, cydlynu a rheoli adnoddau (dynol, ffisegol ac/neu ariannol)
Wood, Frank.(2018) Business Accounting, Volume 1, 14th Edition. Pearson
Dyson, J. R.(20077) Accounting for Non-accounting Students, 7th Edition.London: Pitman Pub
Cyrsiau sy’n cynnwys y modiwl hwn
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