Principles of Accounting

Module code: EC2076

There is one thing that every economy, society and country has in common: money. As an economist understanding how financial transaction are recorded and how finances are handled and presented is vital. This module will detail how accounting principles help firms, organisations and institutions to make informed decisions in business and finance. To understand how a business generates money, records of their financial transactions need to be maintained and this module will explore how financial statements are prepared and presented for partnerships and companies. You will investigate how these transactions are recorded using:

• Double entry accounting
• Accounting for non-current assets
• Inventory
• Accruals
• Prepayments
• Impaired and irrecoverable debts

To form meaningful analysis of financial statements and make economic decisions about the performance of the company you will use ratio analysis, and evaluate the difference in legal requirements of different businesses by understanding what makes up a company's annual report.