Basic accounting principles

Day 1: Introduction

 Conceptual framework of accounting

 Accounting equation

 Double-entry bookkeeping in transaction processing

 Accounting Cycle, i.e., analyzing, recording, classifying, summarizing.

 Analysis and interpretation of financial statements

 Income statement

 Owner equity statement

 Balance sheet

 Cash flow statement

 Case study.

Day 2: Financial statement analysis

 Measuring financial performance

 Horizontal analysis.
 Vertical analysis
 Ratio analysis.
 Interpreting figures from financial statement

 Use of financial statements for short term and long term decisions

 Financial statements and liquidity ratios

 Case study.

Day 3: An introduction to cost terms and purposes

 The use of cost management information

 Creating cost-aware organizations

 understanding accounting

 Management account versus financial accounting

 Cost behaviors in Cost-Volume-Profit scenarios

 Review of some key cost concepts

 Product vs. Period costs

 Direct and Indirect Costs

 Cost behavior: Fixed and Variable Costs

 Problems and Examples

Day 4: cost analysis

 Responsibility centers: cost, profit, and investment

 Measuring responsibility center performance

 Segment reporting internally and externally

 Cost-Volume-Profit analysis and pricing decisions.

 Breakeven point and managerial decisions.

 Special order decisions