TITLE : FINANCE AND ACCOUNTING: FOR BTEC NATIONAL.

Preface  viii
Acknowledgements  ix
Introduction  xi
 
 
Section I: The Financing of Resources  1
 
An Introduction to Finance
Types of business organisations in the private sector.
Sources of finance in the private sector. Sources of finance in the
  public sector
The role of the Accountant and the Accounts Office
Introducing the Balance Sheet
 
 
Section II: The Development, Purpose and Function of Accounting  37
 
The Ledger System
The recording of accounts. The Trial Balance
The Running Balance Method of Recording Accounts
Divisions of the ledger: sales, purchases and nominal ledgers
The Day Books (or Journals)
Source documents for financial information. Recording VAT, Returns
Introducing the Cash Book (or Cash Ledger)
The Bank Reconciliation Statement
The Petty Cash Book
A Model Exercise: Day Books to Trial Balance
 
 
Section III: The Construction of Financial Statements for Private,
             Public and Social Organisations  147
Profit Calculation
The meaning and construction of financkll statements.
Trading, Profit and Loss Account and Balance Sheet
The Accounting Period: Adjustments for Accruals,
Pre-payments and Provisions
An Introduction to Partnership Accounts
Introducing Company Accounts
The Statement of Sources and Application of Funds
Public Sector Accounts: Central Government and Loca Authorities
Accounting for Social Organisations
 
 
Section IV :The Interpretation of Financial Information  239
 
Accounting Ratios
Profitability, liquidity and efficiency
Company Ratios
The distinction between Capital and Revenue Expenditure
Concepts (or Conventions) used in Accounting
The importance of finance in organisational decision-making
 
 
Section V: Personal Finance  269
 
Sources of Personal Finance and Personal Taxation
Saving and Borrowing
Cash Budgeting
 
 
Section VI: Financial Planning for Decision-making  295
 
The Manufacturing Account
The classification of costs
Absorption and Marginal Costing. The Importance of
Contribution. Break-even and Break-even Chart
Budgeting and Planning
Capital Appraisal
 
 
Section VII: Further Aspects of Accounting  361
 
The Need to Keep Control Accounts
The Trial Balance and its Limitations. The Journal and the
Use of the Suspense Account
Accounting for Incomplete Records
The Importance of Stock Valuation
 
 
Section VIII: An Assignment Programme  405
A package of assignments for each of the above sections
Glossary of Terms
Abbreviated Answers to Text Questions
Index