Reflections on My Maiden Intensive Week

Corporate Financial Accounting

The course started to move from theory to more practical applications with bookkeeping and preparation of financial statements for J. Prep company and the analysis of the financial statements.

I understood that business transaction takes place when there is an exchange of value and can come in the form of cash, accrual, barter and accrual events and others.

The double entry rule states that every transaction always impacts at least two of assets, liability and owners equity.

Capitals are used to acquire assets while assets are business resources used to run the business and can be sourced through liability such as loans, debt and owners equity which includes share capital and reserves.

The balance sheet equation is Asset equal to Liability and Owner Equity

The current asset was defined as an asset acquired with the intention to consume or use up or sell or convert to services while non-current or fixed assets are acquired with the intention not to sell/consume/used up. This definition gives a broader perspective on the terms better than the popular definition that categorised them based on the number of months they are available for use

I also learned that insolvency happens when the losses affect the owners equity significantly.

The balance sheet was divided into strong and weak types. A balance sheet is said to be strong when a large proportion of its assets are generating income and vice-versa for a weak balance sheet

Purposes of Assets

1. Directly generate income such as treasury bills, bonds and leasing
2. Indirectly enable generation of income through improved productivity such as machine and equipment
3. Business support facilitation such as office facilities like air conditioner, personal computers, buses

Analysis of Business Process

Micoderm, Ace automotive, Dima, Mountain Man Brewing Company and Slamdex case studies were analysed during the week.

Each case was unique in its context with varying levels of analysis although the majority focus on how to make sense of numbers.

Key lessons can be summarized as;

1. Attention to detail is essential to the proper analysis of cases.
2. Proper analysis of cases requires structured thinking and helps to uncover hidden details.
3. I need to investigate and eliminate options in some cases.
4. Causation and correlation are not the same.
5. Situation may be mutually exclusive or collectively exhaustive.
6. Motivated reasoning or biases must be avoided to arrive at a sound judgement.
7. A business problem is a gap between the current and desired state.
8. The cause of most problems is a change of sorts
9. The problem objective looks to determine what success might look like in each case
10. Proper diagnosis of cases requires a probing mind
11. The conclusion, in any case, is only as dependable as the premises that lead to such a conclusion.
12. Arriving at the right premise depends on the rigour and logic of thinking.
13. Some cases make requiring examining all factors of production.

Data Analytics

The more relatable aspect of the course such as its applications to solve real-life problems was focused on more.

I learned the application of prior, joint, conditional and posterior probability in solving problems in medicine and petroleum oil exploration.

I further learned the implication of mutual exclusivity of events which states if an event occurs, the other cannot occur.

Sporting and Social

The week ended on an exciting note with our team playing a barren draw with the team of MMBA3. We also had an evening of networking organised by the school to bond the students.

Although the courses are becoming more demanding, they are becoming more real in applying them to practical life scenarios making it worth the penny.