Profit and Loss Account (Byte Size) Course

Businesses are created with the intention of producing wealth for their owners and profit is a measure of the wealth that has been created during a particular period. Profit is generally considered to be the most important measure of business performance and the amount of profit generated by a business is reported in a profit and loss account.
In this course, we provide an understanding of the nature, form and content of the profit and loss account which is also known as the income statement. We examine the way in which profit is measured, and the way in which basic profit and loss accounts and balance sheets are prepared from a series of business transactions.

By the end of this course, you should be able to:

• explain the nature and purpose of the profit and loss account
• set out the basic form of the profit and loss account and explain its relationship with the balance sheet
• explain the major conventions underpinning the profit and loss account
• explain the major principles involved in the measurement of profit
• prepare a profit and loss account and a balance sheet from basic transactions
• set out profit and loss statements in an appropriate form.

Introduction

Objectives

Section 1: Introduction to the Profit and Loss Account

1.1 The Measurement of Profit

1.2 Relationship Between Profit and Loss Account and Balance Sheet

1.3 Forms of Revenue and Expense

1.4 Owners' Capital and the Profit and Loss Account

Section 2: Measurement of Revenues and Expenses

2.1 The Measurement of Profit

2.2 The Matching Convention

2.3 The Accruals Convention

2.4 The Measurement of Expenses

2.5 A More Detailed Illustration

2.6 Practical Implications of Accruals Accounting for the Preparation of Final Accounts

Section 3: Form and Content of Profit and Loss Accounts

3.1 The Profit and Loss Account of Trading Businesses

Summary

Review Activity

Recommended Reading

Tutor-marked Question Paper

Qualification 1: Profit and Loss Account (Byte Size) Certificate

Profit and Loss Account (Byte Size) Certificate issued by Stonebridge Associated Colleges, entitling you to use the letters SAC Cert after your name.

In order to offer our students the most convenient and flexible distance learning courses, Stonebridge Associated College offers you the option to study for your course via two methods:

• 1. Via the traditional paper-based method.
• 2. Through the online method via ElearnUK.

When you study through ElearnUK you can quickly access your course material online and submit all of your question papers to your tutor online, using your unique student account. You have access to all of your course material immediately, and when you submit question papers, your tutor sends you an email containing your results and feedback.

With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.

You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!

There is no experience or previous qualifications required for enrolment on this course. It is available to all students, of all academic backgrounds.

This is only an approximate figure and is dependant upon how much time you can dedicate to your studies and how well you grasp the learning concepts in the course material. Furthermore, at the end of each lesson there is a question paper that needs to be completed and returned to your tutor. You should allow at least 1 - 2 hours of study to complete each question paper.

The approximate amount of time required to complete the course is: 20 hrs.

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

• All study materials
• Study Guide
• Full Tutor and Admin support

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