Financial Accounting 201

What Will You Learn?

• Classify cash and cash equivalents correctly and present them in the financial statements
• Manage cash in a business using budgeting, the cash operating cycle and surplus cash techniques
• Design and evaluate internal controls over cash receipts and cash payments
• Operate a petty cash system using the imprest method
• Account for cash shortages and overages and understand what they reveal about controls
• Apply credit terms, account for irrecoverable debts and calculate expected credit losses
• Present and analyse trade receivables using the allowance for expected credit losses
• Apply advanced inventory valuation, cost formulas, write-downs and error corrections
• Account for changes in depreciation estimates, component accounting and impairment of assets
• Apply the revaluation model and account for disposals and replacements of non-current assets
• Recognise, measure and disclose provisions, contingent liabilities, contingent assets and commitments
• Account for short-term and long-term borrowings, interest, finance costs and accrued interest
• Split borrowings between current and non-current portions and present them correctly
• Account for capital contributions, drawings, distributions and retained earnings
• Prepare and interpret a statement of changes in equity
• Distinguish profit from cash flow and explain why cash flow matters
• Classify and prepare operating, investing and financing cash flow information
• Perform horizontal and vertical analysis of financial statements
• Calculate and interpret profitability, liquidity and solvency ratios
• Identify trends and problems in financial performance
• Work through an integrated intermediate accounting problem from opening balances to final outputs
• Avoid the common errors that undermine intermediate accounting work