What is ‘finance theory’?

This part of the curriculum looks at the whole area of management Human Resources within an organisation - from understanding what an organisation needs in terms of human resources (numbers, skills etc) to acquiring and retaining those resources. This includes:

• Organisational structure - identifying which structure is most relevant to delivering an organisation's objectives (hierarchy, flat, matrix) and the benefits/constraints of each.

• Workforce planning - the process of evaluating the current and future human resource needs both in terms of numbers of people and skills and competencies to ensure current product/service supply and future succession planning

Accounting concepts

Accounts are records of financial transactions. Information that is used in accounts is initially entered into books of prime entry, which may simply be paper or computer records. This helps with financial planning. From there the information will be entered into a double entry system in a book (or computer programme) called the ledger. Each account is kept on a separate page in the ledger, and every account has two sides - a debit and a credit side. Information will then be extracted so that it can be presented in a financial report.

The accounting equation. An essential component of accounting is what is referred to as the accounting equation, which in a nutshell means that the assets of the organisation (what it owns
or is owed by others) is equal to the liabilities of the organisation (what it owes).