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: Lecturer:
Accounting Mr. M. Fransen
Acc. assignment Mr. E. Galama (consultant)
Book-keeping Mr. T. Sijtsma
Statistics Mr. M.J. Feenstra
Excel (comp.) Mr. P. van der Meer
English 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 Lind, Douglas A., W.G. Marchal 0071113169 € 63
Busi- & S. A. Wathen.
ness and Economics 12th
ed.*
English As appendix in student manual
M2
Excel Reader
* 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

Num- Competencies: Practice: Tested:

ber:
1. International accounting, manage- Coursework, work- Exam accounting, Exam bookkee-
ment accounting and financial mana- shops, and assignment ping, Project report accounting and
gement of a business or organisation book-keeping report ‘Bell&Wheels’
(level 1 and 2)

2. Co-operation (level 1) Teamwork, meetings Process report and self evaluation

3. Communication (oral and written Teamwork, meetings, Exam English vocabulary, written
level 2) English business report English assignment, English
meeting presentation business meeting,
project report accounting and book-
keeping report ‘Bell&Wheels’

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 M2 Accounting an competences

Num- Competencies: Practice: Tested:

ber:
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 book-
accounting and book- keeping report ‘Bell&Wheels’, oral
keeping, English English business meeting
business meeting

6. Planning and organising (level 1) Coursework, work-shop Project report accounting and book-
preparation, assignments keeping report ‘Bell&Wheels’
accounting and book-
keeping

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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 Investors
Investors
Owners
Owners 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 muchmuch cash
cash they
they have
have
 How
How wealthy
wealthy they
they are
are
 How
How muchmuch they
they are
are owed
owed
 How
How muchmuch 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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