Introduction to the basic principles and conventions underlying the preparation of financial documents; the preparation and interpretation of the financial statements of sole traders. The preparation of cash flow statements to distinguish the difference between cash and profit. Construct and apply cash budgets and distinguish between sources of finance.

Module outcomes
To achieve credit for this module, students must be able to:
Explain and apply basic accounting conventions
Prepare and interpret financial statements of sole traders
Use cash flow statements to differentiate between cash and profit of business organisations.
Understand ratio analysis