The University of Southampton

MANG1001 Financial Accounting 1

Module Overview

• Introduction • Conceptualising Financial Statements. • Introduction to Double Entry & Accounting Equation & Trial Balance. • Adjustments: Accruals, Prepayments & Bad Debt • Assets, Inventory, Depreciation and Revaluation. • Sources of finance and Capital Structure. • Interpretation of accounts and the Business Model

Aims and Objectives

Module Aims

To give students a good understanding of the way that financial accounts are prepared and used and the concepts underlying those accounts with sufficient practical work to obtain a firm grasp of those concepts. To develop insight into the relationships within financial statements which can help in the interpretation of the accounts. To develop understanding of the accounting theories underlying financial statements as currently prepared and an appreciation of the consequent strengths and limitations of those financial statements. But above all, it is to give you the tools to understand how a business works

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • The main users of financial statements and their needs.
  • Methods of recording transactions, as a basis of financial statements, and for control within the organisation.
  • The elements and structure of the main financial statements for sole traders, partnerships and companies.
  • Basic principles and accounting concepts underlying the preparation of financial statements.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • Demonstrate learning, numeracy, problem solving and written communication skills.
  • Show developed self-management skills.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • Prepare simple financial statements from structured and unstructured information.
  • Recognise and discuss measurement problems arising in Financial Accounting
  • Explain frequently used accounting terminology.
  • Appreciate and explain the significance of choices of accounting policies.
  • Read and infer information from simple sets of accounts.
  • Develop intellectual skills associated with analysing, recording, communicating and evaluating financial information, using both qualitative and quantitative techniques, for stewardship and decision making.


• Objectives and users of financial statements. • Accounting for control, the double entry model and control of data. • The Balance Sheet equation. • The Profit and Loss Account, Cash Flow Statement, the Balance Sheet and underlying concepts. • Preparation of accounts from records of transactions for sole traders, partnerships and companies. • Valuation and accounting for assets and liabilities including fixed assets and depreciation, stocks, debtors, and accruals and prepayments. • Sources of finance. • Regulation of financial reporting, strengths and limitations of historical cost accounting. The interpretation of accounts.

Learning and Teaching

Teaching and learning methods

• Lectures, • Weekly classes • Workshops • Private Study, including reading and working computational problems.

Follow-up work20
Wider reading or practice20
Preparation for scheduled sessions26
Completion of assessment task25
Total study time150

Resources & Reading list

Weetman, P (2010). Financial and Management Accounting: An Introduction. 





MethodPercentage contribution
Examination  (2 hours) 80%
Multiple choice Test 20%


MethodPercentage contribution
Examination  (2 hours) 100%


MethodPercentage contribution
Examination  (2 hours) 100%

Linked modules


To study this module, you will need to have studied the following module(s):

MANG1002Management Accounting 1
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