LIST OF TOPICS

The course here is divided into a number of topic areas. The topics can be studied in the order suggested here or as independent units to suit the course you are following at your university or college. Most of the units are relatively self-contained but, if you choose to pick topics 'out of order' you may come across references to other parts of the course.
     Topics one, two and three form a small unit dealing with basic accounts and their analysis. Topics four, five and six, likewise, form a sub-unit and look at topics in the area of working capital management. Topics seven, eight and nine cover investment appraisal methods.
     If you already know which topic you wish to look at click on the small links immediately below. If you do not know the topic you require, a brief outline of the contents of the topics is given below. Click on the blue links that you will find on the left of the screen to go to the topic you wish to study.

topic one   |    topic two   |    topic three   |    topic four   |    topic five   |    topic six   |    topic seven    |    topic eight    |    topic nine

A revision of basic accounting and finance. This topic is not intended to act as an accounting course. Rather it is designed as a refresher to allow you to revise the basic accounting concepts that will be needed in the other topics here.

The topic covers financial ratio analysis. Definitions and meanings of the main ratios used in ratio analysis are provided along with examples of their use. Problems in using such ratios are discussed and the so-called du Pont equation, that allows a more systematic use of ratios, is explained.

A method of projecting balance sheets and income statements for the firm is explained in this topic. The discussion hinges on the calculation of funds to allow expansion of output. Also some methods of sales forecasting are outlined.

Some general points about working capital management are covered in this topic. More specific ideas concerning elements of current assets and liabilities are dealt with in topics five and six. Here, the nature and significance of the operating and cash conversion cycles and different ways of financing current assets are looked at.

This topic covers stock or inventory management and concentrates on the so-called Economic Order Quantity model.

This topic covers credit management and the effect of debtors of accounts receivable on the position of the firm. It is not yet available.

The basics of the time theory of money and its application to investment analysis are introduced in this topic. The concepts of net present value and internal rates of return are described and some basic calculations undertaken. This is a very important topic as it forms the basis of a great deal of finance.

The NPV and IRR criteria introduced in Topic Seven are looked at in more detail here. Problems with the application of IRR method are examined and the reasons for differences in the two criteria are outlined. Also, simpler methods of investment appraisal such as the payback period are considered along with figures for the popularity of the various methods in British industry.

The application of the NPV and IRR criteria to share and bond valuation is introduced in this topic. Gordon's dividend growth model is developed and a similar model is applied to the valuation of bonds or debentures.

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