This unit introduces students to the fundamentals of financial and management accounting viewed from the perspective of the business manager. It focuses is on critical evaluation of accounting information contained in financial statements and application of key cost and management accounting techniques in day to day business decisions. This unit adopts a managerial and analytical approach to the financial aspects of business management. After studying this unit students will learn the methods used in financial reporting and interpretation and applying these principles to business practice. Students will gain a better understanding and interpretation ability of company’s cash-flows and profit, different classes of assets, liquidity positions, operating efficiency. The management accounting part of this unit will equip students with understanding of key costs and managerial accounting techniques used in costs control, costs management and in planning.
Upon completing this subject, students will be able to:
- Define and understand the accounting process and fundamental accounting principles that underpin the development of financial statements (e.g. accrual accounting vs. cash accounting, definition, recognition, measurement and disclosure of assets, liabilities, revenues, expenses; inventory models, provisions, depreciation; accounting for intangibles).
- Understand the concepts and role working capital, sources of working capital working capital ratios and their uses. Also understand and use the concept of job costing, process costing, activity-based cos ting, JIT inventory system, and EOQ model. This course will also equip with the concept and application of standard costing.
- Apply techniques from cost and management accounting, in deciding upon alternative courses of action using CVP analysis, capital budgeting techniques, inventory management model.
- Analyse and critically evaluate financial performance and financial position of a business using information contained in financial statements; balance sheet, income statement, and cash flow statement.
- Analyse and interpret the working capital position and working capital management of a business
- Calculate and interpret different liquidity ratio, solvency ratio and operating efficiency ratio. Also use standard costing, calculate variances and interpret them. Also calculate and interpret EVA.
What You Get:
- Hours of interactive videos.
- Applied industry knowledge.
- 1-year full access to the course.
- Access on your phone or desktop computer.
- Certificate of completion at the end of the course.