Unit Outlines
Accounting & Finance: Tools And Techniques
AI Generated
Intermediate
40 hours
10 topics
Learning Objectives
5 objectives- Understand core accounting and finance principles and their role in business decision-making.
- Analyze and interpret key financial statements to assess organizational financial health.
- Develop budgeting and forecasting skills to plan and control financial resources effectively.
- Apply cost accounting techniques and financial ratios to support strategic business decisions.
- Evaluate investment projects using capital budgeting methods and understand risk management strategies.
Content Outline
PreviewUnit 11: Accounting and Finance Fundamentals
1. Introduction to Accounting and Finance
- Definition and scope of accounting and finance
- Fundamental accounting principles and concepts
- Objectives of accounting and finance functions
- Role of financial information in business decision-making
2. Financial Statements Analysis
- Overview of financial statements
- Income Statement: revenue, expenses, profit/loss
- Balance Sheet: assets, liabilities, equity
- Cash Flow Statement: operating, investing, and financing activities
- Techniques for analyzing financial statements
- Horizontal and vertical analysis
- Trend analysis
- Assessing financial performance and position
3. Budgeting and Forecasting
- Purpose and importance of budgeting
- Types of budgets (operational, capital, cash budgets)
- Steps in the budgeting process
- Forecasting financial outcomes
- Budgetary control techniques
- Variance analysis
- Performance measurement and corrective actions
4. Cost Accounting
- Cost classification (fixed, variable, direct, indirect)
- Cost behavior and its impact on decision-making
- Cost-Volume-Profit (CVP) Analysis
- Break-even point calculation
- Contribution margin analysis
- Costing methods
- Job costing
- Process costing
- Activity-based costing (ABC)
- Application of cost accounting in business decisions
5. Ratio Analysis
- Purpose and significance of financial ratios
- Categories of financial ratios:
- Liquidity ratios (current ratio, quick ratio)
- Solvency ratios (debt to equity, interest coverage)
- Profitability ratios (net profit margin, return on assets)
- Efficiency ratios (inventory turnover, receivables turnover)
- Interpretation and benchmarking of ratios
6. Time Value of Money
- Concept and importance of time value of money
- Present value (PV) and future value (FV) concepts
- Calculations involving:
- Single sums
- Annuities (ordinary and due)
- Application in financial decision-making
7. Capital Budgeting
- Importance of capital budgeting in investment decisions
- Evaluation methods:
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Payback Period
- Comparing and selecting investment projects
8. Risk Management and Insurance
- Definition and types of business risks
- Operational, financial, market, credit, and legal risks
- Principles of risk management
- Risk identification, assessment, and mitigation strategies
- Role and types of insurance in risk management
9. Financial Markets and Instruments
- Overview of financial markets:
- Primary and secondary markets
- Stock exchanges
- Investment securities:
- Stocks (equities)
- Bonds (debt instruments)
- Derivatives and mutual funds (brief introduction)
- Basics of investing and portfolio diversification
10. Corporate Finance
- Corporate financial decision-making overview
- Capital structure decisions
- Dividend policy theories and practices
- Working capital management
- Mergers and acquisitions: objectives and financial considerations
Unlock the full outline
Get the complete content outline, learning outcomes and assessment methods for Accounting & Finance: Tools And Techniques.
KSh 20 one-off, or included with a plan
Learning Outcomes
Unlock the outline above to see learning outcomes.
Assessment Methods
Unlock the outline above to see assessment methods.