Issues In Measuring Profit And Financial Position (Byte Size Skills
Course)

Product Description

Issues in Measuring Profit & Financial Position Course The measurement of profit & financial position is not as precise & objective as you may, at first, imagine. In order to prepare the profit & loss account & balance sheet, we have to employ estimates & assumptions. As a result, the portrayal of the financial health of a business can vary according to the particular estimates & assumptions that we make. There are three measurement areas that are critical to the measurement of profit & financial position: depreciation, stock valuation & the problem of bad & doubtful debts. In this course we examine each of these areas in turn. By the end of this course, you should be able to: explain the concept of depreciation   explain the main methods of depreciation & make appropriate calculations explain the various approaches to stock valuation & make appropriate calculations illustrate how different stock valuation methods impact on the calculation of profit   explain how a business should account for bad & doubtful debts   adjust the financial statements to reflect bad debts & changes in the provision for doubtful debts   discuss the role of subjectivity in the measurement of profit & financial position