Table of Contents

1 The Balance Sheet
Accounting concepts
The effect of Transactions on the balance sheet
Summary
Self-development activities

2 The Trading and Profit and Loss Account
Revenue and capital items
Depreciation
Accounting for stocks
Presentation of profit statements
Summary
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3 Working Capital and Cash Flow
Capital
Profits and cash
Cash flow statements
Sources and applications of Funds statements
Summary
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4 Keeping Accounting Records
Double entry system
Books of original entry or subsidiary books
Trial balance
Final account
Summary
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5 Budgetary Control
Setting budgets
Master budget
Reporting back
Price and quantity variances
Management action and cost control
Summary
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6 Decision Making
Production cost
Absorbed costs and marginal costs
Partial budgeting
Break-even analysis
Summary
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7 Understanding Company Annual Reports
Accounting Ratios
Balance sheet ratios
Profitability or Income statement rations
Limitation to ration analysis
Summary
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8 Corporate Finance
Alternative forms of finance
Gearing
Summary
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9 Accounting for Inflation
How does inflation affect accounts?
Measuring inflation
Adjusting for inflation
Summary
Self-development activities

10 Further Reading

11 Answers to Self-Development Activities