Numeracy for Accounting

Department of Management

School of Business, Economics and Informatics

Numeracy for Accounting Eva Szatmari e.szatmari@bbk.ac.uk 020 7631 6254

Learning Objectives

• • • • • • • Available Maths Support Tips to aid your learning Notation Percentage calculations Formulae Statements Linear graphs

Available Maths Support

• One-to-One support: maximum of one hour, needs to be booked in advance (Skype) • Maths Café: drop-in to answer short maths Qs

Moodle

• School of BEI Study Skills in Mathematics • http://moodle.bbk.ac.uk/course/view. php?id=7759

Tips to Aid Your Learning

• • • • • • List of important concepts List of important formulae Flow charts of different statements Flash cards Highlighters Work in pairs, small group

Notation

What do the following notations represent? • £000 • £m • £

Notation

Convert the following to both notations: £000 and £m £700 000 £50 000 £1 500 000

Notation

What is the difference between: 3,500 and 3.500

Percentage

What is meant by e.g. 6%? 6% =

6 100

How do you calculate 6% of £390?

Percentage

Why % is important for accounting? • TAX • Interest rates

Percentage

% increase Product A cost £35, it is taxed at 3%. What is the price including the tax?

Percentage

% decrease Asset A worth £3500 new. It’s value decreases by 12% each year. What will it worth next year?

Formulae

Mathematics:

4������+3������ 2������

X=-3 Y=2 Z = 16

Formulae

Accounting: ������������������ =

������������������������������������������������������ ������������������������������������ ������������������������������ ������������������������������������������

× 100

OP = 243 million SR = 2 240 million

Better-Price Stores Income statement for the year ended 31 Oct. 2011 £000 Sales revenue 232 Cost of sales (154) Gross profit 78 Salaries and wages (24.5) Rent and rates (14.2) Heat and light (7.5) Telephone and postage (1.2) Insurance (1) Motor vehicle running expenses (3.4) Deprecation –...