Accounting I

Module Code ACCU9A1
Semester Autumn
Prerequisite Pass in Mathematics at Standard grade, or equivalent.
Level 8
Credit Value 20
Module Co-ordinator Professor Alan Goodacre
Assessment 25% Coursework consisting of 2 class tests, worth 10% and 15%. 75% Examination

Module Introduction, aims and objectives

This module is the first module on accounting and finance degree programmes and provides the stepping stone for further study of accounting and finance. We look at different organisation types from sole traders to partnerships and limited companies and examine their legal, tax and accounting characteristics. You will learn the basic language of accounting and use this knowledge to prepare income and financial position statements. We introduce the various sources of finance available to businesses and analyse firm performance using ratio analysis based on accounting information.

The module assumes no prior knowledge of accounting and begins with an introduction to the subject, its purpose, role and limitations.

The aim of the module is to provide an understanding of the basic tools for financial accounting and financial analysis, and an introduction to the financing of business.

Learning outcomes and skill developed

By the end of the module a student should be able to:

  • Explain the purposes, uses and limitations of accounting information.
  • Appreciate that accounting involves judgement, so is more of an art than a science.
  • Prepare an income statement (profit and loss account) and financial position statement (balance sheet) from a trial balance, and incorporate simple adjustments.
  • Explain the difference between cash and profit flows.
  • Calculate basic financial accounting and investment ratios and interpret these for the analysis of financial statements.
  • Identify the different types of business organisation (sole trader, partnership, company) and explain their different accounting requirements
  • Describe the main sources of finance and the availability of these to different business organisations.

Introductory reading

The main text which is an essential purchase for the module is:

Catherine Gowthorpe, Business Accounting and Finance, 3rd Ed [Cengage Learning (2011); ISBN 9781408018378]

This module information is representative of what is included in the module in a given year. Details of actual reading, lectures and coursework may vary year to year and will be available at the beginning of the semester.

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