University of Bristol - EFIM10005: Fundamentals of Accounting and Finance 1

The unit, Fundamentals of Accounting and Finance 1 (EFIM10005) - provides a foundation to the fundamentals of financial accounting, management accounting and finance, all of which are required as a basis for more in-depth study of accounting and finance-related topics. The aim is to provide students with a working knowledge of each area that is sufficient for more specialist study of any or all of the three components.

On completion of the unit, you should be able to:

• compare and contrast the various types of business entity and their reporting requirements;

• explain the objective of financial statements and the concepts underlying their preparation, including the accruals concept;

• prepare and explain simple examples for a single entity of a Statement of Financial Position; a Statement of Comprehensive Income; and a Statement of Cash Flows;

• recall, define and explain the elements of financial statements, including specific items such as depreciation, bad debts, interest and dividends paid;

• evaluate the position and performance of a business using ratio analysis and other tools such as SWOT and PEST analyses;

• explain and perform calculations related to cost classification, cost-volume-profit analysis and cost apportionment;

• construct cash and other budgets;

• explain and identify costs that are, and are not, relevant to decision-making;

• carry out investment appraisals using net present value, internal rate of return, payback and accounting rate of return; and understand and describe the relative merits of these approaches; and,

• incorporate expected values and sensitivity analysis into decisions.