Principles of Accounting

Module code: EC2076

Module co-ordinator: Lynne Howey

In this module you will study financial statements and the underlying fundamental concepts of accounting. You will learn double entry accounting, including how to record transactions, how to adjust and maintain financial accounting records, and how to identify and correct omissions and errors in accounting records. We will look at how financial statements are prepared for sole traders, partnerships and limited companies. We will also investigate company financial statements and how ratio analysis and cash flow statements can be used to interpret the performance of companies.

Topics covered

  • Information requirements of 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: 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

  • Two pieces of coursework (10% + 10%)
  • Exam, 2 hours (80%)