HELP ACADEMY

University of London Programmes

March Intake (2021/2022)

COURSE OUTLINE
Principles of Accounting (AC 1025)

Lecturer/Tutor: Ms Marilyn Kew

Aims & objectives of the unit

This unit is intended to provide a broad understanding of the theory and practice
of financial and management accounting, both for non-specialist students and
as a foundation for further study in the area. The aims of the course are to
introduce you to the principles underlying accounting; to enable you to apply,
interpret and explain key accounting techniques; and to provide a broad
understanding of the theory and practice of financial and management
accounting.

Learning Outcomes

On completion of this module, you should be able to:

1. distinguish between different uses of accounting information and relate

these uses to the needs of different groups of users.
2. explain and apply financial accounting concepts and conventions.
3. prepare basic financial statements from both structured and unstructured
data.
4. analyse, interpret and communicate the information contained in basic
financial statements, and explain the limitations of such statements and their
analysis.
5. categorise cost behaviour, and prepare and contrast stock valuations under
different costing methods.
6. describe the budgeting process and discuss the use of budgets in planning
and control.
7. explain, discuss and apply relevant techniques to aid internal users in
decision-making.

1
Course Description

This course is designed to introduce students to financial and management

accounting. Traditionally concerned with measuring, recording and reporting
financial transactions and events, modern accounting provides a broad range
of information for a wide variety of users. Financial accounting and reporting is
primarily concerned with the needs of users outside the business, such as
shareholders, regulators and creditors. In contrast, management accounting is
concerned with the needs of users who are internal to the business, such as
directors, managers, and employees.

Selected Bibliography

Essential reading:
Perks, R. and D. Leiwy, Accounting: understanding and practice, Maidenhead:
McGraw-Hill, 2014), 4th edition

D. Leiwy, Principles of Accounting Subject Guide, University of London, 2015

Further reading:
Elisabetta Barone, Principles of Accounting, Financial Times-Prentice Hall
Custom Publication, Harlow 2011

Note : Refer to references in Subject Guide and use a wide range of other
references which also include: periodicals/ magazines , newspapers,
internet and the VLE.

Assessment & Tasks

a) 2 assessments in each semester
b) Semester 1 & 2 Examinations
c) Final Examinations (External)

2
Course Schedule (Reference: Subject Guide)

Semester I

Week Topic
1 Introduction
* Introduction to the study of accounting * Syllabus * Aims of the course *
Learning outcomes for the course * Overview of learning resources *
Examination advice

2 Accounting in context
* What is accounting? * Accounting theory and practice *Accounting
information and its uses * Financial accounting * Management accounting

3 Income statement and Statement of financial position

* The structure of a private sector business * An introduction to the financial
statements * Accounting characteristics and concepts, bases and policies

4 Double-entry book-keeping
* One transaction: two effects * Recording transactions: books of prime
entry *Double-entry book-keeping * Trial balance

5 Accounting adjustments 1
* Inventory, purchases and sales * Accruals and prepayments

6 Accounting adjustments 1
* Bad and doubtful debts

7 Accounting adjustments 2
* Depreciation of non-current assets * Disposal of non-current assets
* Revaluation of land and buildings

8 Equity, capital and dividends

* Different formats for different purposes * Preparing company accounts

9 Preparing financial statements

* Preparing the statement of financial position and income statement

10 Incomplete records and missing information

* Incomplete information

10 Internal control
*Getting it right: internal control * Bank reconciliations * Trial balance

11 & 12 Cash flow statements

* Preparing the cash flow statements

3
 Semester 2

Week Topic
1 Using and understanding financial statements
* Ratio analysis

2 Using and understanding financial statements

* Writing a report

3 Introduction to management accounting

* Planning and coordination * Control, communication and motivation
* Information for decision-making

4 Absorption costing versus marginal costing

* Understanding costs * Inventory valuation - marginal costing

5 Absorption costing versus marginal costing

* Inventory valuation - full costing * Effects of different inventory valuation
methods

6 Contribution, CVP analysis and the optimal use of scarce resources

* Cost-volume-profit analysis

7 Contribution, CVP analysis and the optimal use of scarce resources

* Relevant costs * Limiting factors

8 Planning for the future: budgeting and cash forecasting

*Goals and objectives * Budgets and forecasts

9 Planning for the future: budgeting and cash forecasting

*Working capital management

10 Budgets for control: standard costing and variance analysis

*Standard costs * Variance analysis - an introduction

11 Capital investment appraisal 1

* Capital investments * Payback period * Accounting rate of return (ARR)

12 Capital investment appraisal 2

* Discounted cash flow techniques