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MScManagement
Financialinformationmanagement1
StudentGuide2010/11
Lecture1
Thereissomeveryimportantreadingwhichyoumustdoatanearlystage.Youmustbeawareof;
Thereasonswhybusinessesprepareaccounts
Theprincipalusergroupsoffinancialaccounts.
Thedefinitionsandprincipalfeaturesoffinancialaccounting,managementaccountingandfinancialmanagement(thelatterissometimesknownas“corporatefinance”or,moresimply,“finance”).
Youmustbeabletodistinguishbetweenfinancialaccountingandmanagementaccounting.Thisreadingcanbefoundbetweenpages3and8.Itisgenerallystraightforward,andstudentshavefewproblemswithit.Fromtimetotime,examquestionshavebeensetontheabovetopics.However,theimportanceofthisinitialreadingcannotbeunderstated
StudentstakingFIM1(only)willfindthatacheap,basiccalculatorwillsuffice–suchacalculatorcanbeboughtforlessthanapoundfromthe“value”sectionofmanysupermarkets.StudentstakingFIM2,ICFandIBFMwillfindascientificcalculatoruseful–again,thesemaybesourcedfromsupermarkets,fromcatalogueshops,andoftenfrom“pound”shops.Youmustnotuseamobilephoneinsteadofacalculator,norareyouallowedtouseacalculatorcapableofcommunicationoracalculatorwhichisabletostoreordisplaytext.Programmablecalculatorsaresimilarlyprohibited–thereforeifyouareascience,mathsorengineeringstudent,youwillbeadvisedtoinvestinamuchmorebasiccalculatorthanonewhichyouarealreadyusing.
Twoquestions;
Whatisthepossibleeffectofdrawingscontinuallyexceedingprofitsyearafteryear?
Whichgovernmentagencymighttakeaparticularinterestinthelevelofdrawings,especiallyrelevantinviewofthetrader’spersonalcircumstances?
Manyslidescontainmoreelementarydetailofthebackgroundandcontentsofbusinessaccounts.ThiscouldbeexaminedeitherviaMCQorbyanessayquestion.Thereissomeadditionalreading,andaquestionisasked;
Considerwhetheritispossibleforabusinesstoprepareasetofaccountswhicharecompletelyfreefrombiasoropinion.
Depreciation
Ameasureofthewearingoutorthereductioninvalueofanassetovertime.Ifyouhaveacar,oracomputer,youarelikelytoexperienceasubstantialfallinthevalueofyourasset
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2024-09-14
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