BUU33531 Financial Accounting I
(5 ECTS credits)
The module builds on the knowledge and understanding attained in the SF module Introduction to Accounting in the context of the accounting records, double entry and nominal ledger accoounts.
Essentially, this module goes “behind” the Financial Statements and explores in detail the processed invoved in the preparation of the accounting records which serve as the basis for the preparation of the Financial Statements.
Understanding the double entry system of accounting is critical to progressing in the study of Financial Accounting and Reporting.
Learning and Teaching Approach:
The module will be delivered by a combination of lectures and tutorials. Understanding of each topic will be aided by a set of questions and solutions. This module is very much a practical one. Success in the module is best achieved by investing time from day 1 in practicing the questions on each topic on a timely and regular basis.
- Demonstrate a detailed and practical understanding of the double entry accounting system in each stage of the process i.e. from initial transaction to final accounting statement and closing trial balance.
- Apply the double entry accounting rules to transactions and events relating to each of the elements of financial statements as defined in the Conceptual Framework.
- Demonstrate an understanding of the use of suspense accounts and the correction of errors in the accounting records.
- Understand the board concept of internal control in the context od the accounting records. Apply this understanding to the preparation of control accounts and reconciliations.
- Understand the purpose of bank reconciliations and apply this knowledge to their preparation.
- Understand the context of incomplete records both for sole traders and limited companies. Apply knowledge of the double entry system, accounting records and nominal ledger accounts to given scenarios in order to calcualte requisite information in incomplete records scenarios.
Recommended Texts/Key Reading:
Business Accounting Basics by Frank Wood and David Horner (ISBN: 978-0-273-72500-8)
End of Term Exam: 100%