Foundation • Business

Introductory Accounting

Unit 04 — Elective — Term 2
UnitUnit 04
CategoryElective
Credits20
Guided Learning Hours120
Course Description

Introduces the purpose of accounting, the accounting equation and double-entry basics, and how to prepare simple financial statements, cash-flow forecasts and ratio analysis.

Course Objectives

To give students a foundational understanding of accounting principles and the ability to prepare and interpret basic financial statements.

Key Topics
  1. Purpose and users of accounting information
  2. The accounting equation (Assets = Liabilities + Capital)
  3. Double-entry basics
  4. Statement of Profit or Loss
  5. Statement of Financial Position
  6. Cash flow vs profit
  7. Liquidity and profitability ratios
Course Outline (selected weeks, Term 2)
WeekTopic & Activity
13Purpose of Accounting
AC1.1 Explain why businesses keep financial records. AC1.2 Identify internal and external users of accounts.
Lecture: Why Every Business Needs a Ledger.
15The Accounting Equation
AC2.1 Apply Assets = Liabilities + Capital to simple transactions. AC2.2 Record simple transactions using double-entry principles.
Workshop: Balancing the Accounting Equation.
17Financial Statements
AC3.1 Prepare a simple Statement of Profit or Loss. AC3.2 Prepare a simple Statement of Financial Position.
Lab: Building Financial Statements in Excel.
19Cash Flow Basics
AC3.3 Distinguish between profit and cash flow. AC3.4 Construct a simple cash flow forecast.
Workshop: Cash Flow Forecasting.
22Ratio Analysis
AC4.1 Calculate simple liquidity and profitability ratios. AC4.2 Explain what the ratios indicate about business health.
Workshop: Interpreting a Set of Company Accounts.
24Final Assessment Submission
Final submission of Units 04 and 05.
Report finalisation.
Learning Outcomes
  1. Explain the purpose of accounting and identify users of financial information.
  2. Apply the accounting equation and double-entry principles to record simple transactions.
  3. Prepare a simple income statement and balance sheet.
  4. Distinguish profit from cash flow and construct a simple cash-flow forecast.
  5. Calculate and interpret simple liquidity and profitability ratios.
Assessment

Assessed by coursework (no written examination) — an assignment, report or portfolio task set at the start of Term 2. A formative draft is reviewed with tutor feedback in Week 20, and the final version is submitted by the end of Week 24. Graded Pass, Merit or Distinction, with plagiarism-checked submissions (Turnitin) and a signed Learner Declaration Form.

Learning Resources
  • Brussels College Digital Library — academic English & business foundation texts
  • Virtual Learning Environment (VLE) and Turnitin
  • Microsoft Office 365, including Excel-based accounting templates
  • Guest lectures from local business owners
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