Accounting and Finance (Fast Track MBA)

Contents......Page 6
Acknowledgements......Page 9
Introduction......Page 10
PART I The Financial Reporting Environment and an Introduction to Financial Statements......Page 12
Stakeholders......Page 14
The regulatory framework......Page 15
Summary......Page 19
Definition......Page 20
Example......Page 21
Example......Page 23
Summary......Page 28
Example......Page 29
The relationships between profit and loss accounts,
 balance sheets and cash flow statements......Page 30
Summary......Page 31
PART II Financial Statements in More Detail......Page 32
Depreciation......Page 34
Revenue expenditure and capital expenditure......Page 36
Format of a profit and loss account......Page 37
Taxation......Page 39
Provisions......Page 40
Example......Page 41
Summary......Page 45
Example......Page 47
Historical cost accounting......Page 48
Fixed assets......Page 49
Current assets......Page 50
Capital employed......Page 52
Financing......Page 53
Summary......Page 55
Introduction......Page 56
Example......Page 58
Cash ‘self-sufficiency’......Page 61
Summary......Page 62
PART III Financial Analysis......Page 64
Financial objectives......Page 66
Profitability......Page 67
Financial position......Page 71
Performance improvement plan......Page 80
Summary......Page 84
Shareholder return......Page 85
Book value per share......Page 87
Price/earnings ratio......Page 88
Dividend cover......Page 89
Summary......Page 90
PART IV Management Accounting......Page 92
Costs......Page 94
Costing and costing systems......Page 109
Summary......Page 122
Budgetary control......Page 123
Preparing the budget......Page 125
Flexible budgeting......Page 127
Budget management......Page 128
Summary......Page 129
Introduction......Page 131
Project appraisal techniques......Page 132
Capital rationing......Page 137
Discounted payback period......Page 138
Important issues to consider......Page 139
Business case presentations......Page 148
Summary......Page 150
Appendix A Glossary of Important Finance and Accounting Terms......Page 152
Appendix B Double-entry Bookkeeping......Page 168
Appendix C Present Value Table......Page 173
Further Reading......Page 175
Index......Page 176