Higher Accounting

Why financial accounting matters to a wider range of stakeholders once a business grows beyond a sole trader.

What legally defines a partnership, and where a partnership can raise finance from.

How a partnership's profit for the year is shared out between partners, and recorded in their equity and current accounts.

What happens to a partnership's accounts when a new partner joins or the profit-sharing ratio changes.

What legally defines a PLC, and the range of internal and external finance it can access.

How a PLC's profit for the year is appropriated once corporation tax is accounted for.

How a Manufacturing Account works out the cost of a business's own factory production, before it's sold.

Preparing an Income Statement for a partnership or limited company, including reducing-balance depreciation.

How revaluation of assets and the issue of shares are reflected in a limited company's Statement of Financial Position.

Calculating and interpreting the investment ratios used to judge a company's share performance, using the course's given formulae.

How management accounting supports the more complex planning and control needs of a larger organisation.

How the weighted average cost method values stock, recalculating the average cost after every purchase.

How overheads are reapportioned from service departments and absorbed into production, with under- and over-absorption identified.

Working out the total cost of a single job, and the annual operating cost of providing a service.

How costs are spread across continuous production processes, and how an abnormal loss is accounted for separately.

Preparing sales, production, and cash budgets, and understanding the benefits budgeting provides.

Using contribution to decide on product mix, make-or-buy, closure, and special order decisions.