1. Understand the basic principles of both financial accounting and management accounting and their applications.
2. Acquire the knowledge and techniques which will assist students in the performance of both financial and management accountancy functions in industry and commerce.
3. Acquire the basic skills necessary for the pursuit of a recognised accountancy qualification.

1. Prepare a trading, profit and loss account, balance sheet and cash flow report for sole traders, partnerships and limited liability companies, after taking into account a normal range of adjustments to the trial balance necessary for such preparation.

2. Recognise and apply appropriate accounting conventions to a range of transactions within the context of the accounting regulatory requirements.

3. Understand and describe the appropriate books of account for different types of accounting transactions and be able to prepare a trial balance from these books of account. To prepare and maintain a range of control accounts appropriate to the books of account. To prepare journal entries and deal with the treatment of suspense account items.

4. Understand, calculate and interpret a range of basic financial ratios appropriate to a set of financial statements, particularly in the key areas of profitability, solvency/liquidity, asset utilisation and investment ratios.

5. Understand the basic principles of cost behaviour cost ascertainment and to be able to:

• Classify direct and indirect costs.
• Prepare an indirect overhead allocation summary.
• Calculate overhead recovery rates by a variety of techniques and to apply these for the purpose of cost compilation.
• Explain the difference between fixed and variable costs.
• Calculate break-even points of activity and prepare break-even charts.
• Appreciate and explain the limitations of break-even analysis.

6. Understand the basic principles of different costing techniques and to be able to:

• Define the different costing techniques.
• Explain and understand the differences between each technique, and
• Calculate costs using any of the techniques.

7. Understand the basic principles of capital investment appraisal and be able to calculate and interpret figures using the pay back, accounting rate of return or discounted cash flow methods of investment appraisal.

Method of Assessment:

By written examination. The pass mark is 40%. Time allowed 3 hours.

The question paper will contain:

Two compulsory questions, one in financial accounting and one in management accounting, and a choice of three from four remaining questions.