Introduction

This unit introduces the basics of accounting, including the accounting equation, double-entry bookkeeping, and financial statements. Learners will study asset valuation, revenue and capital expenditure, and financial ratios, gaining skills to analyse and interpret financial information. By mastering these principles, learners will understand the essential role of accounting in business and prepare for more advanced studies in finance and accounting.

Learning Outcomes

• Understand basic accounting principles and their application.
• Distinguish between capital and revenue expenditure.
• Understand how and why the values of assets change.
• Account for accruals and prepayments.
• Account for bad debts and provision for doubtful debts.
• Understand the purpose and use of the Trial Balance in final accounts.
• Understand the journal's role in correcting errors.
• Use control accounts as a regulator in accounting.
• Make accounting adjustments based on incomplete records.
• Understand accounting approaches for different organisations.
• Analyse and evaluate accounting statements.
• Understand budgeting's purpose and role, and prepare simple budgets.
• Identify the purposes and usage of ICT in accounting.