Introduction to Accounting

Knowledge

Upon successful completion of this course the student should have:

• knowledge of purpose and recognition of a financial statement
• knowledge of double-entry
• knowledge of the concepts of expenses, costs, expenditures, revenues and payments, balances and relationships between these
• knowledge of key provisions of the Bookkeeping Act and Accounting Act format for Financial Statements
• knowledge of the standard chart of accounts
• basic insight into the financial accounts structure and framework including ethical assumptions on which it is based.

Skills

Upon successful completion of this course the student should:

• be able to post the most common transactions according to the principle of double bookkeeping
• be able to conduct regular accrual postings
• be able to conduct annual reports with simple year-end postings
• be able to set up an income statement and a balance sheet in accordance with the rules of the Accounting Act
• be able to explain the links between transactions and their impact on the income statement and balance

General competence

Upon successful completion of this course the student should have:

• the ability to judge and categorize various economic events with regard to accounting effects
• ability to make a basic assessment of the content of a financial statement and the main principles on which it is based
• ability to reflect on ethical issues related to the practice of accounting
• have an understanding of the societal benefits of public financial accounts