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Nas SHG
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Decks in this class (11)
Chapter 1 - Introduction To Accounting
- Understand why studying accounting is important in a business context.
- Understand what accounting is for, who uses it and what they use it for.
- Recognize the limitations of accounting as a tool in your business toolkit.
18
cards
Chapter 20 - Investment Decisions
- Understand and distinguish between four methods of investment appraisal - accounting rate of return, payback, net present value and internal rate of return
- Understand the process of discounting
- Use these methods in making long-term decisions
- Explain the importance of time value for money
- Calculate perpetuities
0
cards
Chapter 2 - Wealth And The Measurement Of Profit
- Understand the relationship between income and wealth
- Be aware of the problems associated with measuring wealth and their impact on the measurement of income
- Be able to measure income and wealth using different measurement bases and compare the outcomes
8
cards
Chapter 3 - The Measurement Of Wealth
- Understand the importance of the separation of the business from the owner and the application of the business entity principle.
- Understand what a statement of financial position is and understand its component parts.
- Understand the importance and limitations of the statement of financial position.
- Have an understanding of the accounting equation and be able to draw up a simple statement of financial position.
- Be aware of the advantages and thinking behind different formats for the
12
cards
Chapter 4 - The Income Statement And The Cash Flow Statement
- Identify revenue and expenses for a period and draw up a simple income statement.
- Understand the principles of accrual accounting where revenue and expenses are allocated to the periods to which the economic activities relate rather than simply when the transaction occurred.
- Understand the definitions of revenue and expenses, the difficulties associated with the recognition of revenue and the importance of the matching principle.
- Understand how a cash flow statement is produced and th
7
cards
Chapter 5 - Introduction To The Worksheet
- Understand the concept of duality and how it applies to the recording of transactions.
- Understand the concept of prudence and its importance in financial statement preparation.
- Be able to record transactions following the principles of double entry using a worksheet as the format for recording those transactions.
- Be able to extract a statement of financial position at the end of a period of time.
- Be able to produce a simple income statement for a period of time.
- Be able to produ
3
cards
Chapter 6 - Inventory
- Understand what the term inventory means and be able to identify the different forms inventory can take
- Understand why the determination of inventory levels is important and the effects of inventory levels and values on the income statement and the statement of financial position.
- Be able to apply the concept of prudence to the valuation of inventory.
- Understand the process of matching and the difference between accrual accounting and cash based accounting.
- Understand the acceptabl
10
cards
Chapter 7- Amounts Receivable And Amounts Payable
- Be able to deal with trade payables and receivables on the worksheet
- Understand their impact on the statement of financial position, income statement and cash flow statement.
- Understand why prepayments exist and ow to deal with them.
- Understand what accruals are and the need to create them in order to fairly represent the activities of an enterprise during an accounting period.
- Appreciate the differences and similarities between trade receivables, payables, accruals and prepayments
6
cards
Chapter 8 - Non-Current Assets, Fixed Assets And Depreciation
- Understand the differences between current and non-current assets.
- Understand the reasons for depreciating fixed assets.
- Understand the most commonly used methods for depreciating assets.
- Understand the effects of depreciation on the statement of financial position.
- Understand the impact of depreciation on the income statement and the cash flow statement and why these effects are different.
- Understand how gains and losses on the sale of fixed assets arise and their impact on the
11
cards
Chapter 15 - Cost Behavior And Cost - Volume - Profit Analysis
- Understand the nature of fixed and variable costs.
- Appreciate the way in which costs behave over activity levels.
- Explain how past costs are measured to predict future costs.
- Use cost-volume-profit (CVP) analysis in decision making.
- Appreciate the limitation and assumptions underpinning the determination of future costs and revenues.
8
cards
Chapter 16 - Accounting For Overhears And Product Costs
- Distinguish between traditional full costing , activity based costing and marginal costing and the way in which overheads are accounted for in product costing.
- Understand the importance of sharing overheads to product cost on an equitable basis using activity based costing and absorption costing.
- Recognize the impact on profits in using absorption costing, activity based costing and marginal costing.
9
cards
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Accounting In A Business Context
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