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AP Assignment Brief Apr - Jul 2024
AP Assignment Brief Apr - Jul 2024
AP Assignment Brief Apr - Jul 2024
Assignment Brief
Unit Number and Title Unit 5: Accounting Principles
Academic Term April - July 2024
Part 1
The submission format includes an essay, a report, and a budget prepared using a spreadsheet. The reports
should be written in a concise, formal business style using 1.5 lines spacing and Times New Roman font with
a font size of 12. You are required to make use of headings, paragraphs, and subsections as appropriate.
• All work must be supported with research and references using the Harvard referencing system.
• The recommended word limit is 2,000–2,500 words, although you will not be penalized for
exceeding the total word limit.
• Please ensure that the similarity does not exceed the 20% threshold as assignments with higher
similarity may be blocked.
Please provide Nelson College’s Cover page with your report and follow the normal report structure which
includes a table of contents, introduction, main body, conclusion recommendation, and references.
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LO4: Prepare budgets for planning, control, and decision-making using spreadsheets.
• Creation and interpretation of information, showing how that information can be used most
effectively to add value to an organization.
Vocational scenario 1:
You are an Account Assistant at Norbury & Co. Maghal Jomm, your Supervisor, wants you to demonstrate
your understanding of the fundamentals of accounting. He has asked you to write an essay discussing the
importance of the accounting department as a business function in any organization. The discussion should
also evaluate the necessity for a regulatory framework for the accounting profession and the impact of this on
the stakeholders and users of accounting information. Your essay may cover the points given in para (i), (ii)
and (iii) below:
i. Examine the purpose and scope of the accounting function within different business organizations
using appropriate real-life examples.
ii. Assess the accounting function considering regulation and ethical issues that confront accountants
and the extent to which these are beneficial constraints to them (2).
iii. You may evaluate the context and purpose of the accounting function in meeting organizational,
stakeholder, and societal needs and expectations and critically evaluate the role of the accounting
function in informing decision-making and meeting organizational, stakeholder, and societal needs
and expectations.
Vocational Scenario 2:
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Your Supervisor at Norbury & Co has assigned you to the budgeting department. You have been instructed
to prepare a cash budget for Huskie Tools Ltd, a medium-sized manufacturing company specializing in the
production of electrical goods.
The purpose of this cash budget is to provide the business with a clear financial outlook for the first half of
the financial year- January to June 2024, enabling them to manage their cash flow effectively.
LO4: Prepare budgets for planning, control, and decision-making using spreadsheets.
Assignment activity and guidance:
The company, Huskie Tools Ltd, has provided the following information on their expected sales, purchases,
wages, and rent expenses. The bank balance of the company on 1 January 2024 was £15,000. The
advertising budget is expected at 5% of the sales value each month.
Huskie Tools Ltd
Expected Cash Flows January – June 2024
Month Sales Purchases Wages Rent
Jan-24 75,000 45,000 12,500 5,000
Feb-24 75,500 45,000 12,500 5,000
Mar-24 60,000 45,000 12,500 7,500
Apr-24 79,000 55,000 12,500 7,500
May-24 80,000 55,000 10,500 7,500
Jun-24 70,000 45,000 10,500 7,500
Requirement:
You are requested to prepare a cash budget for the period from January to June 2024 from the data given in
the table above. In your budget report must be included the following information:
(i) Huskie Tools Ltd.’s six-month cash budget was prepared using a spreadsheet (6) that shows expected
cash inflow and outflows and monthly balances over the six months i.e., January to June 2024. Discuss
the implication of the budget and advise the client on any possible actions necessary.
(ii) An evaluation of the role that budgets play in the effective planning and control of resources in an
organization. This should include both the benefits and any limitations of using budgets (7) and the
extent to which they can help identify problems and corrective actions
.
You may justify the budgetary policy by an outline of a range of budgetary control solutions, with examples,
to support organization decision-making and ensure efficient and effective use of resources.
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Part 2
Assignment Title (part 2) Production and Interpretation of Financial
Statements
Submission Format
The submission is in the form of a report which will include prepared financial statements. The report
must be worded, well-structured, and should be written in a concise, formal business style. All work
must be supported with research and references using the Harvard referencing system. You will need to
provide a bibliography using the Harvard Referencing System. Inaccurate use of referencing may
lead to issues of plagiarism if not applied correctly. The recommended word limit is 2,000–2,500
words, although you will not be penalized for exceeding the total word limit.
All students are required to include an assignment cover sheet, which is available on VLE.
Unit Learning Outcomes
LO2: Prepare basic financial statements for unincorporated and small businesses, and organisations
by accounting principles, conventions, and standards.
LO3: Interpret financial statements.
Transferable skills and competencies developed
• Managing financial data.
• Written communication using a range of media.
• Manipulating and interpreting data using spreadsheets.
• Effective communication of relevant information across the organization and to appropriate
stakeholders.
• Creation and interpretation of information and showing how that information can be used most
effectively to add value to the organization.
• Ability to use quantitative skills to manipulate data, evaluate, estimate, and model business
problems.
• Application of accounting knowledge to consistently deliver high-quality, accurate data and
information in a timely fashion.
Vocational Scenario 3:
You are now assigned to prepare the financial statements of Huskie Tools Ltd for the financial year
ending 31 December 2023. After preparation, you are required to calculate the key performance
indicators and use these to evaluate the business. Prior year (2022) KPIs have also been provided.
LO2: Prepare basic financial statements for unincorporated and small business organizations in
accordance with accounting principles, conventions, and standards.
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as of 31 December 2023
£ £
Motor vehicle 105,000
Computers 115,000
Cash & Bank 80,750
Accounts receivable 19,500
Inventory 14,000
Accounts payable 110,500
Capital & Reserves 150,000
Cost of sales 89,500
Sales , 215,000
Rent 12,200
Utilities 11,500
Insurance 16,500
Office Stationery 11,550
475,500 475,500
Requirement:
Prepare the year-end financial statements for the client, in accordance with accounting principles,
conventions, and standards (3).
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Key performance ratios (KPR) from the prior year 2022 are given below:
Profitability ratio
Liquidity ratios
Investment ratios
ROCE 40%
ROA 30%
Requirement:
You are required to write a report to the client. This report will accompany the financial statements
you have prepared, and, must show:
• The calculation of relevant key performance ratios for 2023 and comparison of the
performance of the organization over 2022 and 2023 using the KPR given for 2022 and the
KPR you will calculate for 2023 and relevant benchmarks.
• A critical evaluation of the performance of the business (referring to the financial statements
and the KPRs calculated) concerning relevant benchmarks as well as any limitations of using
financial ratios as performance measures.
Recommended resources
Please note this is not a definitive list of resources but it will help you to start your research by
acting as a starting point of reference. Students are also encouraged to do independent online and
other research.
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Weblinks:
Accounting Coach courses.
Available at: https://www.accountingcoach.com
The Association of Chartered Certified Accountants ACCA).
Available at: https://www.accaglobal.com
Chartered Institute of Management Accountants.
Available at: https://www.cimaglobal. com
HN Global
HN Global (2021) Reading Lists. Available at:
https://hnglobal.highernationals.com/learningzone/reading-lists
HN Global (2021) Student Resource Library. Available at:
https://hnglobal.highernationals.com/subjects/resource-libraries
HN Global (2021) Textbooks. Available at: https://hnglobal.highernationals.com/textbooks
(Please note that students need to create a log-in for all HNGlobal sites)
Textbooks:
Atrill, P. and McLaney, E. (2018) Accounting and Finance for Non-Specialists. 11th Ed.
Harlow:Pearson
Weetman, P. (2019). Financial and Management Accounting: An Introduction. Harlow: Pearson
The balance careers. Business letter format with examples. Available at:
https://www.thebalancecareers.com/how-to-format-a-business-letter-2062540
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organizational performance
P3 Prepare financial M2 Produce financial using a range of measures and
statements from a given statements from a given benchmarks to make justified
the trial balance for sole trial balance, making conclusions.
traders, partnerships and appropriate adjustments..
not-for-profit
organisations, to meet
accounting principles,
conventions and
standards
LO4 Prepare budgets for planning, control, and decision-making using spreadsheets