Accounting in a Business Context

by AIDAN BERRY and ROBIN JARVIS

Overview

Accounting in a Business Context covers all the key areas of financial and management accounting, but is written specifically for non-accounting students. It focuses on how managers will actually use information, rather than how accountants prepare it. This way it avoids burdening the general business student with unnecessary technical skills or obscuring the core management issues with accounting jargon. This fully updated and revised edition takes account of all the latest ASB developments, and includes new material on ratio analysis and activity based costing.

Product Details

ISBN-13:	9780412587405
Publisher:	Springer US
Publication date:	01/01/1994
Series:	Business in Context Series
Edition description:	2nd ed. 1994
Pages:	409
Product dimensions:	7.44(w) x 9.69(h) x 0.03(d)

About the Author

Professor Aidan Berry, BA, FCA, is Head of the Business School at the University of Brighton. His research interests include public sector accounting and bank lending to small businesses.

Table of Contents

1. Introduction to accounting For what purpose is it used? Who uses accounting information? Limitations of accounting information Accounting as a business function The strategic context The organisational context The environmental context Summary Reference Further reading Review questions Problems for discussion and analysis 2. Wealth and the measurement of profit Original cost Historic cost Replacement cost Economic value net realisable value Conclusion References Further reading Review question Problems for discussion and anlaysis 3. The measurement of wealth The importance of balance sheets Assets Fixed and current assets Liabilities Owners equity The balance sheet Determinants of the format of the balance sheet format Summary References Further reading Review questions Problems for discussion and analysis 4. The profit and loss account Importance of profit and loss account Revenue The realisation principle Expenses The profit and loss account Determinants of the format of the profit and loss account nand its uses Summary Further reading Review questions Problems for discussion
5. Introduction to the worksheet Single entry error Incorrect double entry Addition, subtraction and transposition errors Summary Review questions Problems for discussion and analysis Answer to example 5.2 6. Stocks and work in progress The nature of the business and stock valuation The determination of the costs at goods sold Valuation of stock effects of price changes Summary References Further reading Answer to example 6.3 Review questions Problems for discussion and analysis 7. Debtors, creditors accruals and prepayments Debtors and prepayments Prepayments Bad debts Creditors and accruals Accrual Summary Review Questions 8. Fixed assets and depreciation Differences between fixed and current assets The cost of a fixed asset The useful life of fixed assets Depreciation Why depreciate? Methods of deprecation Comparison of the two methods Slide of fixed assets Summary References Further reading Review question Problems for discussion and analysis 9. Financing and business structures Short-term finance Medium-term finance Long-term finance Financing structures and financial risk Summary Further reading Review questions Problems for discussions 10. Final accounts, partnerships and companies The traditional approach End of period adjustments Discussion Final account Forms of organisation Summary Review questions Problems for discussion 11. Cash flow statements The need for cash flow information What does a cash flow statement show/ Preparing a cash flow statement from final accounts Summary References Further reading Review questions Problems for discussion and analysis 12. Financial statement analysis Investor group Lenders Employees Auditors Management Common needs Context for financial statement analysis effect of price changes projections and predictions of the future The common needs explained Techniques of analysis Summary of major issues Key features Key limitations Further reading Review questions Problems for discussion and analysis 13. Internal users and internal information management's information needs External user's information needs Impacts of organisational size Impact of organisational structure Summary Review questions Problems for discussion and analysis 14. Planning and control The planning and control process The control system The cost and benefits of accounting information systems Organisational and environmental context users of planning information and the impact of organisational size Summary References Further reading Review questions Problems for discussion and analysis 15. Cost behaviour and cost-volume-profit analysis Cost behaviour Cost-volume-profit analysis 16. Accounting for overheads and products cost Full costing Different types of production processes Marginal costing income Measurement and stock valuations Summary References Further reading Review questions Problems for discussion and analysis 17. Accounting for decision making: when there are no resource constraints Relevant cost and the contribution approach to decision making The range of products to be manufactured and sold Closing an unprofitable department/division Summary References Further reading Review questions Problems for discussion and analysis 18. Accounting for decision making: resource constraints and decisions which are mutually exclusive Decision making with constraints The contribution approach with one scarce resource The contribution per unit of scarce resource and the internal opportunity cost Make or break decisions Qualitative factors Summary References Further reading Review questions Problems for discussion and analysis 19. Budgets The purpose of budgets The budget process The budget time period Preparation of budgets Summary References Further reading Review questions Problems for discussion and analysis 20. Investment decisions Appendix Index