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
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
Tutor-marked Question Paper
On completion of your course, you will receive two certificates:
Certificate 1 is issued by Stonebridge Associated Colleges: Issues in Measuring Profit and Financial Position (Byte Size Skills Course) Certificate
Issues in Measuring Profit and Financial Position (Byte Size Skills Course) Certificate issued by Stonebridge Associated Colleges, to view a sample of the college’s award, please click here.
With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.
You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!
Requirements for Entry
There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.
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.
After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.
* All study materials
* Study Guide
* Full Tutor and Admin support