Issues in Measuring Profit and Financial Position (Byte Size Skills Course)
Course
In Bude
Description
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Type
Course
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Location
Bude
Issues in Measuring Profit and Financial Position Course The measurement of profit and financial position is not as precise and objective as you may, at first, imagine. In order to prepare the profit and loss account and balance sheet, we have to employ estimates and assumptions. As a result, the portrayal of the financial health of a business can vary according to the particular estimates and assumptions that we make. There are three measurement areas that are critical to the measurement of profit and financial position: depreciation, stock valuation and the problem of bad and doubtful debts. In this course we examine each of these areas in turn. By the end of this course, you should be able to: explain the concept of depreciation explain the main methods of depreciation and make appropriate calculations explain the various approaches to stock valuation and make appropriate calculations illustrate how different stock valuation methods impact on the calculation of profit explain how a business should account for bad and doubtful debts adjust the financial statements to reflect bad debts and changes in the provision for doubtful debts discuss the role of subjectivity in the measurement of profit and financial position
Facilities
Location
Start date
Start date
Reviews
Subjects
- IT
- Financial Training
- Financial
- Skills and Training
Course programme
Syllabus
Introduction
Objectives
Section 1: Depreciation
1.1 General Principles
1.2 Calculating Depreciation
1.3 Methods of Depreciation
1.4 Accounting Entries
1.5 A Further Refinement
Section 2: Stock Valuation
2.1 The Stock Valuation Problem
2.2 Stock-Valuation Methods
2.3 The 'Lower of Cost or Net Realisable Value' Rule
Section 3: Credit Sales and the Problem of Bad and Doubtful Debts
3.1 Credit Sales and the Problem of Bad and Doubtful Debts
3.2 Dealing with Doubtful Debts
3.3 An Alternative Approach
Summary
Review Activity
Recommended Reading
Tutor-marked Question Paper
Study Hours
This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.
The approximate amount of time required to complete the course is: 20 hrs.
Issues in Measuring Profit and Financial Position (Byte Size Skills Course)