Accounting 2400-EP2RAC
1. Accounting system
The scope and purpose of financial statements for external reporting, users’ and stakeholders’ needs, the main elements of financial reports, the regulatory framework (legislation and regulation, reasons and limitations, relevance of accounting standards), duties and responsibilities of those charged with governance.
2. Recognition of assets and sources of its origin in the balance sheet and their valuation
The qualitative characteristics of financial information, linkages between balance sheet and chart of accounts, basics of going concern valuation.
3. The use of double-entry and accounting systems
Double-entry book keeping principles including the maintenance of accounting records and sources of accounting information, ledger accounts, books of prime entry, and journals.
4. Recording transactions and events
Sales and purchases, cash, inventory, tangible non-current assets, depreciation, intangible non-current assets and amortization, accruals and prepayments, receivables and payables, remunerations, provisions and contingencies, capital structure and finance costs.
5. Preparing a trial balance
Trial balance, corrections of errors, control accounts and reconciliations, bank reconciliations, suspense accounts.
6. Preparing basic financial statements
Statements of financial position, statements of profit of loss and other comprehensive income, disclosure notes, events after the reporting period, statements of cash flows, incomplete records.
7. Preparing simple consolidated financial statements
Subsidiaries, associates.
8. Interpretation of financial statements
Importance and purpose of analysis of financial statements, ratios, analysis of financial statements.
Type of course
Prerequisites (description)
Course coordinators
Learning outcomes
Knowledge
The student understands the accounting principles. Recognizes the layout of the balance sheet and profit and loss account. He or she understands how individual items of the balance sheet and profit and loss account are valued. He or she understands the categories of costs and revenues.
Skills
Student is able to explain where (in which operations) items from the balance sheet and profit and loss account come from, and explain the context and purpose of financial reporting. The student records typical transactions and events, and is able to use double-entry and accounting systems. Prepares the opening and closing balances as well as the profit and loss account in the comparative and calculating variant. Valuate individual components of assets and liabilities. Additionally, candidates should be able to prepare simple consolidated financial statements, and perform initial interpretation of financial statements.
Social competences
The student analyzes economic operations according to accounting principles and standards. He or she understands the role of accounting policy in creating financial situation of an enterprise. He or she understands the functions and role of accounting in the management system of an enterprise.
Assessment criteria
The learning outcomes are assessed on the basis of the final exam (70%) and short quizzes (30%). Attendance during the lectures is obligatory (max. 2 unexcused absences).
The final exam is divided into two sections: Section A consisting of 30 multiple choice questions (each question is worth 1 point) and Section B consisting of 3 open questions (each question is worth 10 points on average – but it depends on the level of difficulty of an open question).
The quizzes will be announced and there will be three of them.
The condition for passing the course is achieving min. 50% of the final score. The grades will be calculated according to the following table:
Final grade Percentage of the total points acquired during the exam and quizzes:
5,5 >=98
5 90-97
4,5 80-89
4 70-79
3,5 60-69
3 50-59
2 0-49
During the course it is possible to get extra points for being active, which will be added to the final score. Additional points do not change the scoring scale.
During the exam students can use a simple calculator (not a mobile phone), and the corporate chart of accounts (without any notes on it).
Written exam and short tests
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: