Module Structure:

1. Understand the nature of financial accounting and the principles of double entry book-keeping.

• Define financial and management accounting and identify the essential differences.
• Define stakeholders and identify the information required by each from a business.
• Define the requirements of IAS 1 and the different financial statements required.
• Explain the financial statements and show the relationship between the parts (double entry book-keeping, trial balance, trading account, statement of consolidated income, statement of financial position and cash flow.)
• Understand the concept of double entry.
• Be able to make the relevant entries into book of accounts for simple transactions.
• Understand the use and purpose of the day book.
• Accurately reflect entries and adjustments in two or three column cash books.
• Understand the purpose of and make appropriate entries into control accounts.
• Prepare a trial balance that accurately reflects any book-keeping adjustments.
• Explain and understand the purpose and use of a suspense account.
• Accurately enter relevant entries in the cash book.
• Prepare the book of accounts accurately from entries in the cash book.
• Prepare bank reconciliation using bank statements and required adjustments.

2. Know how to prepare a set of final accounts for a sole trader and a limited company.

• Explain for differences between a sole trader, a partnership and a limited company.
• Preparation (with relevant and appropriate adjustments) of a trading account and profit & loss account (Statement of Comprehensive Income) and a balance sheet (Statement of Financial Position) according to cGAAP.
• Outline and describe the requirements for a cash flow statement.
• Describe the use of a cash flow statement.
• Prepare a cash flow statement using either the direct (cash) or the indirect (accruals) method.
• Explain for differences between a sole trader, a partnership and a limited company.
• Preparation (with relevant and appropriate adjustments) of a trading account and profit & loss account (Statement of Comprehensive Income) and a balance sheet (Statement of Financial Position) according to cGAAP.
• Outline and describe the requirements for a cash flow statement.
• Describe the use of a cash flow statement.
• Prepare a cash flow statement using either the direct (cash) or the indirect (accruals) method.

3. Know how to calculate and interpret accounting ratios for profitability and liquidity.

• Understand the use of ratios to compare different sets of results.
• Using ratios to compare one business from year to year.
• Using ratios to compare business within the same industry.
• Understand the limitations of ratios.
• Define and calculate basic profitability ratios (e.g. gross profit and net profit ratios.)
• Define and calculate basic liquidity ratios (e.g. current ratio and acid test ratio.)
• Define and calculate liquidity ratios (e.g. creditor and debtor days, stock turnover days.)
• Describe and explain accurately the results and implications of any ratio calculation.

4. Understand the principles of costing for materials, labour and overheads.

• Describe and explain the nature, purpose and objectives of cost and management accounting.
• Define basic accounting terms; direct and indirect cost; overhead costs.
• Calculate material costs using FIFO, LIFO and Average cost
• Calculate labour costs given a range of figures on wage and payroll rates and labour hours.
• Understand and explain overheads.
• Calculate overheads and overhead cost for a given level of output.
• Calculate total cost for a given level of output.
• Calculate the overhead included in a cost for a given output.
• Calculate the difference between actual and planned overhead.
• Define over and under absorption.
• Understand the effect on profitability of under or over absorption of overhead.

5. Understand the way costing principles can be used in short term decision making.

• Define basic accounting terms: fixed and variable costs.
• Understand the result of stepped and semi variable costs.
• Explain and describe the use and outcome of stepped and semi variable costs.
• Define the basic accounting term; contribution.
• Calculate contribution for a single unit.
• Calculate total contribution for a given level of output.
• Explain the uses of contribution costing and overhead absorption costing.
• Define basic accounting terms: break even, break-even point, limiting factor, margin of safety.
• Calculate break-even point.
• Plot break-even graphs.
• Calculate margin of safety for a given level of output.

6. Understand the principles of budgeting and budgetary control.

• Define basic accounting terms: budget, budgetary control, revenue.
• Calculate costs at different levels of output.
• Prepare basic budgets for different output levels using costs and overheads given.
• Define basic accounting terms: variance; cashflow; working capital.
• Calculate actual and budget costs for given levels of output 3. Prepare tables showing actual, budgeted costs and variances.
• Calculate variances.
• Understand the effect on cash and profitability of negative or positive variances.
• Basic understanding of the effect of working capital.

Unit overview: To enable the learner to understand key concepts of accounting for Financial Managers
A business proprietor normally runs a business to make money. He or she needs information to know whether the business is doing well. The owner of a business might ask the following questions:

• How much profit or loss has the business made?
• How much money do I owe?
• Will I have sufficient funds to meet my commitments?

The purpose of conventional business accounting is to provide the answers to such questions by presenting a summary of the transactions of the business in a standard form.

Learning Outcomes:

1. The learner will: understand the nature of financial accounting and the principles of double entry book-keeping.
2. The learner will: Know how to prepare a set of final accounts for a sole trader and a limited company.
3. The learner will: Know how to calculate and interpret accounting ratios for profitability and liquidity.
4. The learner will: Understand the principles of costing for materials, labour and overheads.
5. The learner will: Understand the way costing principles can be used in short term decision making.
6. The learner will: Understand the principles of budgeting and budgetary control.

Your learning experience with ADLwill not only depend on the quality of the course, but also the expertise of the person teaching it. This course has been written by Michael Booth and your course fee includes unlimited tutorial support from him throughout your studies with us. Here are Michaels credentials:

Michael Booth Course Writer and Tutor

B.Sc (Hons) Chemical Engineering, (University of Leeds), MSc with Merit Computer Science, (University of Kent), Executive Associate, Institute of Independent Business International

Michael has over 20 years experience in industry with a diverse academic background incorporating executive management, chemical engineering, and computer science. Michael has an international background and has worked as a technical director, production manager, and operations manager throughout companies across the world. He recently completed his MSc in Computer Science from the University of Kent, and is an executive associate of the Institute of the Independent Business International.

FREQUENTLY ASKED QUESTIONS

Here is a list of the most often asked FAQ’s.

General

Q. Why should I enrol with the Academy for Distance Learning?
A. Here at ADL, our students are our priority – we treat everyone as a unique individual.

Q. Do I need to buy text books?
A. No, as each module has been written by highly qualified industry professionals. The content of the material is presented in such a way that text books are not required. However, if you require additional reading your tutor will be able to supply a list.

Q. What happens if I have to stop studying for a while? (eg. become sick, go on holidays, have a baby, move house, etc)
A. It’s OK to take a break and start up your study at a later point in time. Just let us know.

Q. Is there an age limit?
A. There is no maximum age limit. We do however, have a minimum age limit of 18 years. Below that age parental consent would be required.

Q. Are your courses up-to date?
A. Our courses are revised and updated on a rotation system.

Q. Do you have a Cancellation policy?
A. Yes. We have a cancellation policy that is fair and equitable. For further details please click here.

Q. Will I have any opportunity to engage with other students?
A. We have a Student Community group based on facebook! If you don’t have a facebook account already, you could make one just for talking with fellow students on the group.

Enrolment

Q. When can I enrol/start?
A. You may enrol and start at any time of the year – it’s all self- paced.

Q. Can I study from anywhere in the world?
A. Our courses are available to anyone, anywhere in the world from the comfort of your own home. The course content is relevant to any country, culture or economy.

Q. How long do I have to complete the course?
A. You complete the course at any time that is convenient for you.

Q. Completing a 100 hour module – how long will it take?
A. For some students a 100 hour module will take approximately to 3- 6 months to complete. Others take less time and some even longer.

Assessment

Q. Assessment – how does it work?
A. For each 100 hour module you are assessed by assignments (at the end of each lesson) and a final one and a half hour exam (or you may elect to complete a Project, instead of sitting the exam) – the choice is yours – you sit for the exam in your own location.

Q. I don’t cope well with exams – what can I do?
A. You may elect to undertake a Project (set by your tutor) instead of sitting the exam. Projects are completed from your home and can usually take a couple of weeks to complete.

Q. If my assignment is not up to standard is there an opportunity to resubmit my work?
A. Yes –

Q. How many assignments do I need to complete for each module?
A. At the end of each lesson, there is an assignment – so if a course has say, 10 lessons, there would be 10 assignments.

Q. I am having difficulty attending workshops/industry meetings, what can be done?
A. If your course requires attendance at workshops, conferences, or industry meetings; alternative arrangements can be made in your country.

Qualifications

Q. What qualification will I receive?
A. For individual modules, you would be awarded a Certificate endorsed by TQUK (Training Qualifications, UK), providing you complete all assignments and the exam. If you just want to complete only the assignments and not sit for the exam or finish a Project, then a Letter of Achievement would be awarded. For more details on qualifications available please click here.

Q. Can I customize my diploma/higher qualification?
A. Not all educational institution’s certificates /diplomas meet everyone’s needs. The opportunity to Design Your Own Diploma at the Academy (subject to our approval) is an added bonus, not found at other colleges. You choose modules that you think will help you in achieving your goal.

Q. What do I get when I complete the course? Will I receive a transcript?
A. At the completion of all courses and providing all assignments and exam requirements have been met, you will receive your Award and a Transcript.

Tutors

Q. Our tutors – who are they?
A. We appoint Tutors and require that they must be currently active in their industry, with at least 5 years’ experience in their chosen profession.

Q. Can I contact my tutor at any time?
A. Yes – you have unlimited access to your tutor via email through our Online Classroom. You can always leave a message with ADL requesting your tutor to contact you. You decide on how much or how little contact you wish to have.

Q. Practical work – How is this done?
A. To find out more about this part of the course please visit the section on How Our Courses Work here.