Overview of material to be covered in Week One

This week we will start looking at the financial statements of a business, this week – transactions and the financial position of a business

Business transactions

As an introduction to financial statements we’ll start by looking at how some typical transactions entered into when setting up a small business. We’ll look at an imaginary business being set up in the UK by an individual entrepreneur – Morag Shalini. We’ll look at how transactions impact on the business’s financial position, performance and cash flows. These will demonstrate the duality of business transactions.

There are two elearning resources we’ll use.

Morag Shalini – elearning 1

The first is here. This will introduce to the Statement of Financial Position of a business, This shows the assets, liabilities and capital of a business as at a point in time.

Morag Shalini – elearning 2

The second is here. This second looks at the differences between the Statement of Financial Position of the business as an unincorporated business with what it might have looked like if it had been incorporated as a limited liability company.

There are some great quizzes in both these resources to give you formative feedback on your progress.

Alternative presentations

If you want to work through Shalini offline the list of transactions is at http://ecourse.co.uk/materials/moragtrans.pdf
and the matrix of transaction effects is at http://ecourse.co.uk/materials/moragtable.pdf
and there is a blank matrix if you want to work through the transactions yourself at http://ecourse.co.uk/materials/moragtableblank.pdf.