Accounting - Unit 2

Unit 2 delves into corporate and management accounting concepts essential for analyzing and improving business performance. It begins with limited companies, covering the preparation of financial statements, shareholders' equity, and regulatory requirements. Students learn to calculate and interpret investment ratios, such as earnings per share and return on capital employed, to evaluate business performance and attract investors. The statement of cash flows topic emphasizes the importance of understanding cash movement within a company, focusing on operating, investing, and financing activities. Budgeting introduces the preparation and use of budgets as tools for planning, controlling, and monitoring financial performance. Standard costing explores the setting of cost standards and variance analysis to identify performance discrepancies. Project appraisal involves evaluating investment opportunities using techniques such as net present value (NPV) and internal rate of return (IRR) to guide long-term decisions. Break-even analysis and costing methods, including marginal costing and absorption costing, enable students to understand cost behavior and profitability under different scenarios. The unit concludes with the role of information and communication technology (ICT) in accounting, emphasizing the use of accounting software, data analysis tools, and the implications of digital transformation on financial practices.

What you'll learn