The Cash Budget
- Why should managers understand accounting?
- Accounting concepts
- Timings of receipts and payments
- Calculation of the gross profit and gross profit margin
Introduction to the Statement of Profit and Loss
- Measuring profit
- Double-entry bookkeeping
- Types of account
- Trial balance
- Capital versus revenue expenditure/income
- Calculating the cost of sales
Balancing the Basics
- Assets and liabilities
- The statement of financial position
- Accruals and prepayments
Accounting for Depreciation and Bad Debts
- The straight-line method
- The reducing-balance method
- Disposals of non-current assets
- Bad and doubtful debts
- Uses and limitations of the statement of financial position
- The nature of limited companies
- Share capital
- The stock exchange
- Venture capital
- Loan capital and debentures
- Retained profits
- Reporting requirements
- The statement of profit or loss
- The statement of changes in equity
- The statement of financial position
- Intangible assets
- Revaluing assets
- The statement of comprehensive income
- Corporate governance
The Statement of Cash Flows
- Sources of cash flow
- Non-current assets and the statement of cash flows
- Movements in working capital
- Tax, interest, and dividends
- What to look for in a statement of cash flows
- Managing cash
Interpreting Financial Statements
- Ratio analysis
- The pyramid of ratios
- Probability ratios
- Liquidity ratios
- Control of working capital
- The working capital cycle
Capital Structure and Investment Ratios
- Capital structure
- Investment ratios
- Limitations of ratio analysis
- Those who wish to understand the implications of decisions made across a range of financial accounting issues.
- Those who wish to develop the ability to analyse, interpret, and question the accounting information they may encounter in a business context.
- Those who wish to acquire a sound appreciation of accounting and finance in order to communicate and succeed in the business world.
- Non-accounting staff who desire a practical introduction to the fundamentals of financial accounting.
Upon completion of this course, you will be able to understand:
- The purpose of accounting.
- Why non-accountants need to understand accounting.
- The basic terminology of business transactions.
- How to prepare a cash budget.
- The gross profit margin of a product and business.
- The difference between cash and the profits of a business.
- That a set of financial statements can be prepared from data included a trial balance.
- The difference between revenue and capital expenditure and the significance of the distinction.
- How to prepare a simple statement of profit or loss.
- The purpose of a statement of financial position.
- The assets and liabilities in a business.
- What an accrual and a prepayment are and how to account for them.
- How to prepare a statement of financial position for a simple business.
- Why non-current assets need to be depreciated.
- How to use the straight-line and the reducing-balance methods of providing for depreciation.
- Why we need to provide for bad and doubtful debts.
- How to prepare a final adjusted statement of profit or loss and statement of financial position.
- Some of the limitations of a statement of financial position.
- The nature of a limited company.
- The main external sources of finance available to limited companies, and their characteristics.
- The role of a stock exchange.
- The reporting requirements placed upon the directors of a company.
- How to prepare a statement of profit or loss and a statement of comprehensive income for a limited company.
- How to prepare a statement of financial position for a limited company.
- The purpose of a statement of changes in equity.
- The importance of reliable corporate governance.
- The crucial importance of cash to a business.
- The difference between profit and cash.
- How to prepare a simple statement of cash flows.
- Who uses financial statements and what their needs are.
- How to calculate and interpret ratios that enable you to comment on a business’s profitability, liquidity, and efficiency.
- How to calculate and interpret ratios that enable you to comment on a business’s capital structure, investment returns, and performance.
- The limitations of ratio analysis.
£4645 + VAT