Principles of Accounting

Module code: EC2076

Module co-ordinator: Lynne Howey

The principles of accounting module aims to ensure that students can describe the information required by preparers and users of financial statements, and have a sound understanding of the underlying fundamental concepts of accounting. Furthermore, it aims to ensure that students are proficient in applying the techniques of double entry accounting, can apply the principles to record transactions, adjust and maintain financial accounting records and can identify and correct omissions and errors in accounting records. This module also covers the preparation of straightforward financial statements for sole traders, partnerships and limited companies, understanding the contents of company financial statements and the use of ratio analysis and cash flow statements to interpret the performance of companies.

Topics covered

  • Explaining the information requirements of the preparers and users of financial statements
  • Recording transactions using double entry accounting, including accounting for non-current assets, inventory, accruals, prepayments, impaired and irrecoverable debts
  • Preparing financial statements for sole traders from incomplete records
  • Preparing financial statements for partnerships and companies, describing the differences in legal requirement and understanding the contents of company annual reports
  • Critically evaluating the performance of a company using ratio analysis and cash flow statements

Learning

  • 20 one-hour lectures
  • 5 one-hour tutorials

Assessment

The module is worth 15 credits towards your second year assessment and will be assessed by:

  • Two pieces of coursework – equally weighted (20%)
  • A two-hour exam (80%)
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