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Unit information: Fundamentals of Accounting and Finance 1 in 2019/20

Please note: Due to alternative arrangements for teaching and assessment in place from 18 March 2020 to mitigate against the restrictions in place due to COVID-19, information shown for 2019/20 may not always be accurate.

Please note: you are viewing unit and programme information for a past academic year. Please see the current academic year for up to date information.

Unit name Fundamentals of Accounting and Finance 1
Unit code EFIM10005
Credit points 20
Level of study C/4
Teaching block(s) Teaching Block 1 (weeks 1 - 12)
Unit director Mr. Mike Davies
Open unit status Not open

A-Level Mathematics grade A (or equivalent)



School/department School of Accounting and Finance
Faculty Faculty of Social Sciences and Law

Description including Unit Aims

The unit provides a foundation to the fundamentals of financial accounting, management accounting and finance, all of which are required as a basis for more in-depth study of accounting and/or finance-related topics.

The aim is to provide students with a working knowledge of each area that is sufficient for more specialist study of any or all of the three components.

Intended Learning Outcomes

On completion of the unit students should be able to:

• compare and contrast the various types of business entity and their reporting requirements;

• explain the objective of financial statements and the concepts underlying their preparation, including the accruals concept;

• prepare and explain simple examples for a single entity of a Statement of Financial Position; a Statement of Comprehensive Income; and a Statement of Cash Flows;

• recall, define and explain the elements of financial statements, including specific items such as depreciation, bad debts, interest and dividends paid;

• evaluate the position and performance of a business using ratio analysis and other tools such as SWOT and PEST analyses;

• explain and perform calculations related to cost classification, cost-volume-profit analysis and cost apportionment;

• construct cash and other budgets;

• explain and identify costs that are, and are not, relevant to decision-making;

• carry out investment appraisals using net present value, internal rate of return, payback and accounting rate of return; and understand and describe the relative merits of these approaches

• incorporate expected values and sensitivity analysis into decisions.

Teaching Information

20 hours lectures for whole cohort

10 hours of exercise lecture for groups of 50-60 students

10 one-hour classes for groups.

Assessment Information


• 100% on 2.5 hour written exam at the end of the relevant teaching block.


•Classes: worked exercises

•Exercise Lectures: worked exercises

All learning objectives are assessed by both summative and formative assessment

Reading and References

McLaney, E. and P. Atrill: Accounting, an Introduction, latest edition (Pearson)


Jones, M: Accounting, latest edition (Wiley)