Finance in Business

Course Description

The aim of this unit is to provide learners with the fundamental knowledge required to record financial transactions and produce financial statements. Learners will develop an awareness of different finance and accounting techniques such as the double entry accounting system, budgeting and investment appraisal. This will enable learners to effectively record financial transactions and produce accounting statements.

Course Objectives

The aim of this unit is to provide learners with the fundamental knowledge required to record financial transactions and produce financial statements. Learners will develop an awareness of different finance and accounting techniques such as the double entry accounting system, budgeting and investment appraisal. This will enable learners to effectively record financial transactions and produce accounting statements.

Key Topics

1. LO1: Know about business finance.
2. LO2: Be able to record financial transactions.
3. LO3: Know about cost and management accounting.
4. LO4: Be able to produce accounting statements.

Course Outline

Learning Outcomes

1. LO1 Know about business finance.
2. 1.1 Explain why a business would keep financial records.
3. 1.2 Explain the purpose of business accounting.
4. 1.3 Explain the accounting requirements of different types of business.
5. 1.4 State different types of business finance at different stages in the growth of a business.
6. 1.5 Explain the different types of accounting and financial statements.
7. LO2 Be able to record financial transactions.
8. 2.1 Demonstrate accurate use of the double entry accounting system.
9. 2.2 Demonstrate accurate bank reconciliation.
10. 2.3 Develop control accounts for accounts receivable and accounts payable.
11. 2.4 Demonstrate how to correct errors in accounting records.
12. LO3 Know about cost and management accounting.
13. 3.1 Explain how absorption and marginal costing is used for decision-making.
14. 3.2 Explain how budgeting is used for financial planning and control.
15. 3.3 Explain how to undertake investment appraisal.
16. LO4 Be able to produce accounting statements.
17. 4.1 Produce accurate absorption and marginal cost statements.
18. 4.2 Calculate sub and overall variances.
19. 4.3 Prepare accurate and subsidiary budgets.
20. 4.4 Apply investment appraisal methods to alternative capital investment options.