INTRODUCTION TO ACCOUNTING Handbook

The handbook is designed to indicate the main topics that will be covered in each session, including the practical exercises that will be used to demonstrate the principles discussed.
By the end of Introduction to Accounting handbook, you will:
• understand the way that money moves in a business
• have an outline understanding of the content of a balance sheet
• have a general understanding of the regulatory framework for published
financial statements
• have an outline understanding of the purpose of the income statement,
the balance sheet and the cash flow statement
• be familiar with the layout and content of an income statement and
balance sheet
• be familiar with the accruals and going concern concepts and how they
impact on the income statement and balance sheet
• understand the effect of the capitalisation of costs
• understand the principles underlying fixed (non-current) asset valuation
• be able to prepare simple forecast accounting statements
• have a general understanding of the main sources of long-term company
finance
• be familiar with the main contents of the published annual report
• understand how to prepare and use a common size balance sheet
• be able to apply a number of analytical tools to interpret financial
Statements
• appreciate the importance of monitoring cash flow
• understand what is meant by EBITDA
• be able to interpret cash flow statements
• be aware of the reasons for and the general principles of the preparation
of group accounts
• be aware of the importance of cost analysis for effective management
decision making
• be able to analyse cost and revenue behaviour patterns using costvolume-
profit analysis