An Introduction

An Introduction

M2: Accounting

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Module book 2009-2010 Accounting

Module book M2 Accounting, version: Oct. 27th 2009 is only available on paper at Stenden shop! Number: 20094614

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M2 Accounting: lecturers

Part: Accounting Acc. assignment Book-keeping Statistics Excel (comp.) English

Lecturer: Mr. M. Fransen Mr. E. Galama (consultant) Mr. T. Sijtsma Mr. M.J. Feenstra Mr. P. van der Meer Mr. J. Oude Lohuis, Mr. J. Murphy and Ms. A. Veldkamp

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Module Accounting and Ec’s

Part Accounting

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Module M2 Accounting and literature

Title

Author

ISBN

Price

Accounting and Finance for Peter Atrill and Eddie McLaney 978-0-273-71694- £34.99 Non-Specialists-6th edition 5 Bookkeeping and Accounts- Frank Wood & Sheila Robinson 978-0-273-71805- £31.99 7th edition 5 Statistical techniques in Business and Economics 12th ed.*

Lind, Douglas A., W.G. Marchal 0071113169 & S. A. Wathen.

English

As appendix in student manual M2

Excel

Reader

€ 63

* Lind, D. A., Marchal, W. G. & Wathen, S. A. (2005). Statistical techniques in business & economics (12th ed.). Boston: McGraw-Hill. (compulsory; second half of the book will be covered in M6 Research methods)

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M2 Accounting an competences

Number:

Competencies:

Practice:

1.

International accounting, manageCoursework, workment accounting and financial mana- shops, and assignment gement of a business or organisation (level 1 and 2)

Exam accounting, Exam bookkeeping, Project report accounting and book-keeping report ‘Bell&Wheels’

2.

Co-operation (level 1)

Teamwork, meetings

Process report and self evaluation

3.

Communication (oral and written level 2)

Teamwork, meetings, English business meeting

Exam English vocabulary, written report English assignment, English presentation business meeting, project report accounting and bookkeeping report ‘Bell&Wheels’

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M2 Accounting an competences

Number:

Competencies:

Practice:

4.

Analysing and information processing Teamwork, assignment, Written exam Statistics, project report (level 1 and 2) English written report accounting and book-keeping report ‘Bell&Wheels’, English written report

5.

Creative problem solving (level 1)

Teamwork, assignment project report accounting and bookaccounting and bookkeeping report ‘Bell&Wheels’, oral keeping, English English business meeting business meeting

6.

Planning and organising (level 1)

Coursework, work-shop Project report accounting and bookpreparation, assignments keeping report ‘Bell&Wheels’ accounting and bookkeeping

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Introduction to Accounting principles

Chapter 1

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Learning Objective 1

Understand the need for accounting and its importance in business management

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Need for accounting and its importance to business man. Managers Managers Owners Owners

How much money is coming into the business from the sale of goods and/or services

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Need for accounting and its importance to business man. Managers Managers Owners Owners

How much it is costing to run the business

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Need for accounting and its importance to business man. Managers Managers Owners Owners

For every pound/dollar/euro coming in and going out of the business

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Learning Objective 2

Appreciate the difference between accounting and book-keeping

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Difference Bookkeeping & Accounting Bookkeeping

– recording the transactions of an organization Accounting

– analysis of the performance of an organization

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Accounting

Managers Managers Owners Owners

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Investors Investors Government Government

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Definition of Accounting Accounting Accounting is is the the process process that... that... analyzes, analyzes, records, records, classifies, classifies, summarizes, summarizes, reports, reports, and... and... interprets interprets financial financial information. information.

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Focus of Bookkeeping

Financial Financial facts: facts: selling, selling, buying, buying, cost cost calculation, calculation, paying paying etc. etc. Recording Recording transactions transactions on on accounts accounts with with double double entry entry 66 rules rules of of making making double double entry entry on on the the accounts accounts  Accounting Accounting equation: equation: Assets Assets  Liabilities Liabilities == Capital Capital   

Influence Influence on on balance balance sheet sheet

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History of Accounting

Seven key ingredients were required for the development of a formal system of accounting: - Private property - Capital - Commerce - Credit - Writing - Money - Arithmetic

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The objectives of accounting Accounting has many objectives, including letting people and organisations know:

 IfIf they they are are making making aa profit profit or or aa loss loss  What What their their business business isis worth worth  What What aa transaction transaction was was worth worth to to them them  How How much much cash cash they they have have  How How wealthy wealthy they they are are  How How much much they they are are owed owed  How How much much they they owe owe someone someone else else  Keeping Keeping aa financial financial check check on on the the things things they they do do

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Learning Objective 3

Understand that the accounting sequence is the basis for preparing financial statements

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Learning the accounting sequence Recording accounting data Classifying data Summarising data

Communication information

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Learning Objective 4

Understand the concept of financial control

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Learning (concept of financial control) Business Businessisisformed formed Trading Tradingwith withothers othersinvolves involvesmoney money

Control Controlof ofmoney moneyisisessential essential Good Goodfinancial financialcontrol control

Bad Badfinancial financialcontrol control

Profit Profit

Loss Loss

Succes Succes!!

Failure Failure!!

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End of Introduction M2: Accounting

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