Teaching plan for the course unit

 

 

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General information

 

Course unit name: Introduction to Financial Accounting

Course unit code: 364546

Academic year: 2021-2022

Coordinator: Jordi Morros Ribera

Department: Department of Business

Credits: 6

Single program: S

 

 

Estimated learning time

Total number of hours 150

 

Face-to-face and/or online activities

60

 

-  Lecture with practical component

Face-to-face and online

 

45

 

-  Problem-solving class

Face-to-face and online

 

15

Supervised project

40

Independent learning

50

 

 

Recommendations

 

As this is an introductory subject, there are no specific pre-requirements. However, students would benefit from a prior understanding of business processes and the business environment. As such, it is advisable to have completed the following subjects:

— Business Economics I

— Business Law

— Mercantile Law

 

 

Competences to be gained during study

 

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CB2 - Capacity to apply knowledge and understanding in a manner that indicates a professional approach to the work or vocation, and have competences typically demonstrated through devising and sustaining arguments and solving problems within the field of study.

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CG8 - Capacity to communicate in English and/or other foreign languages orally and in writing, comprehension skills, and mastery of specialized language.

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CB5 - Learning skills that are necessary to undertake further study with a high degree of autonomy.

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CG3 - Capacity for learning and responsibility (capacity for analysis, synthesis, to adopt global perspectove and to apply knowledge in practice).

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CE7 - Capacity to draw up, interpret and apply accounting and financial information in a business context.

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CE1 - Capacity to analyse the international operations of business organizations and interpret their responses to economic, social, cultural and legislative factors in an international setting.

Learning objectives

 

Referring to knowledge

— Understand the importance and operation modes of accounting as an information system to support economic decision-making.

— Understand the accounting methodology for classifying and recording basic transactions carried out by economic agents.

— Be able to assess and classify operations and determine the assets and financial status of an economic agent. Prepare year-end documentation for external distribution, in particular balance sheets and profit and loss statements.

— Interpret annual accounts information correctly and learn to make economic and financial forecasts on the basis of financial statements.

 

 

Teaching blocks

 

1. Introduction and accrual accounting

1.1. Introduction to financial accounting

1.1.1. Accounting as an information system
1.1.2. Structural theory
1.1.3. Accounting measurement
1.1.4. Operation of the accounting system
1.1.5. Formal accounting tools
1.1.6. Material accounting tools
1.1.7. Legal regulation of accounting

1.2. A further look at financial statements

1.2.1. Sections of a classified balance sheet
1.2.2. Relationship between a retained earnings statement and a statement of stockholders’ equity
1.2.3. Identification and computation of ratios to analyse a company’s liquidity and solvency using a balance sheet
1.2.4. Meaning of generally accepted accounting principles

1.3. Accounting information system

1.3.1. The effect of business transactions on the basic accounting equation
1.3.2. Definition of an account and how it helps in the recording process
1.3.3. Definition of debits and credits and how they are used to record business transactions
1.3.4. Basic steps in the recording process
1.3.5. Definition of a journal and how it helps in the recording process
1.3.6. Definition of a ledger and how it helps in the recording process
1.3.7. Definition of posting and how it helps in the recording process
1.3.8. Purposes of a trial balance

2. Merchandising and annual financial statements

2.1. Accrual accounting concepts

2.1.1. Differences between the cash basis and the accrual basis of accounting
2.1.2. The revenue recognition principle and the expense recognition principle
2.1.3. Adjusting entries: major types
2.1.4. The nature and purpose of the adjusted trial balance

2.2. Merchandising operations and the multiple-step income statement

2.2.1. The recording of purchases under a perpetual inventory system
2.2.2. The recording of sales revenues under a perpetual inventory system
2.2.3. Differences between a single-step and a multiple-step income statement
2.2.4. Determining the cost of goods sold under a periodic inventory system
2.2.5. Recording purchases and sales of inventory under a periodic inventory system

2.3. Reporting and analysing inventory

2.3.1. The steps in determining inventory quantities
2.3.2. The basis of accounting for inventories and application of inventory cost flow methods under a periodic inventory system
2.3.3. The financial statement and tax effects of each of the inventory cost flow assumptions
2.3.4. The lower-of-cost-or-market basis of accounting for inventories
2.3.5. Calculation and interpretation of the inventory turnover ratio
2.3.6. The LIFO reserve and its importance in comparing the results of different companies
2.3.7. Application of the inventory cost flow methods to perpetual inventory records

2.4. Accounting cycle and annual accounts

2.4.1. Collecting source documents
2.4.2. Analysing transactions
2.4.3. Journalising transactions
2.4.4. Post transactions
2.4.5. Preparing an unadjusted trial balance
2.4.6. Preparing adjusting entries
2.4.7. Preparing a trial balance
2.4.8. Preparing financial statements

 

 

Teaching methods and general organization

 

The theoretical and practical content of this subject requires face-to-face learning activities, mainly through lectures. Face-to-face classes are used to present the topics outlined in the teaching blocks and to work through exercises and problem-solving activities.

At the end of each block, students must deliver the answer sheet for multiple-choice questions and the solutions to a series of problem-solving activities. These continuous assessment activities (CAA) are a compulsory part of the continuous assessment option.

Students with a particular interest in one of the topics in the course plan may carry out further study independently and submit voluntary assignments.

Students are placed in groups for face-to-face sessions. Attendance is monitored at random.

As a result of the project to promote teaching quality that is being implemented in the Faculty of Economics and Business (promoted by the Research, Innovation and Teaching and Learning Improvement [RIMDA] unit and the Office of the Vice-Rector for Teaching and Academic Planning), during academic years 2018-2019 and 2019-2020, the teaching methodology may differ slightly from that described above.

The detail of this methodology will be published on the Virtual Campus of the subject at the beginning of the course.

 

 

Official assessment of learning outcomes

 

Students are automatically entered for continuous assessment. During this academic year, students are entitled to withdraw from continuous assessment and opt for single assessment until the last day of class, and no previous request is needed.


Continuous assessment

Continuous assessment for this subject consists of tests, assignments and class attendance.

At the end of each block students must take a final examination, divided into two sessions on separate days:

— Multiple-choice test (40 questions).
— Two or three short exercises.
— One long or two short exercises.

The weighting given to each activity in the calculation of the final grade is shown below:

— Blocks 1 and 2, theoretical and practical assessment: compulsory multiple-choice test and exercises to be solved at home (continuous assessment activities or CAA).
— Blocks 1 and 2, theory assessment: compulsory multiple-choice test in class (33% of the final grade).
— Blocks 1 and 2, practical assessment: compulsory exercises in class (67% of the final grade).

To pass the subject, students must complete all of the in-class assessment activities indicated above and obtain a weighted final grade of 5 or higher. If the mark for the practical assessment is less than 5, this mark becomes the final mark for the block.

— 6 continuous assessment activities (CAA, one for each chapter). The mean of these six marks is worth 10% of the final grade. This is taken into account only if students pass the two assessment activities completed in class.

— 2 assessment activities during class sessions. One on each of the lasts two sessions. Assessment of block one is worth 30% of the final grade, and assessment of the second block is worth 60% of the final grade.

 

Examination-based assessment

The single final examination for students who have requested this assessment option contains a theory section and a practical section.

— The theory section consists of 40 multiple-choice questions, each with four possible answers with only one correct option. A standard mark scheme will be applied: 1 point for correct answers, minus 0.25 points for incorrect answers, and minus 0.10 points if no answer or more than one answer is given. This section is qualifying, and students must obtain a mark of 5 out of 10 or higher to have the second section corrected.

— The practical section consists of four exercises, all of which must be completed.

Students must obtain a mark of 5 or higher for each section to pass the subject. For students who do not pass the multiple-choice questions, the mark for the final examination is the mark obtained for the multiple-choice section.


Repeat assessment

Marks for continuous assessment activities are not taken into account.

The repeat assessment examination contains a theory section and a practical section.

— The theory section consists of 40 multiple-choice questions, each with four possible answers of which only one is correct. A standard mark scheme will be applied: 1 point for correct answer, minus 0.25 points for incorrect answers, and minus 0.10 points if no answer is given. This section is qualifying, and students must obtain a mark of 5 out of 10 or higher to have the second section corrected. 33% of the final grade.

— The practical section consists of four exercises, all of which must be completed. 67% of the final grade.

Students must obtain a mark of 5 or higher in each section to pass the subject. For students who do not pass the multiple-choice questions, the mark for the final examination is the mark obtained for the multiple-choice section.

 

 

Reading and study resources

Consulteu la disponibilitat a CERCABIB

Book

HORNGREN, Charles T. [et al.] Introduction to financial accounting. 11th ed. Harlow: Pearson Education Limited, 2018

Catāleg UB  Enllaç
Versiķ en línia (2014)  Enllaç

KIMMEL, Paul D., WEYGANDT, Jerry J., KIESO, Donald E. Financial accounting : tools for business decision making. 6th ed. Hoboken, N.J. : Wiley, 2016

Catāleg UB  Enllaç

MONGER, Rod F. Financial accounting : a global approach. Chichester : Wiley, 2010

Catāleg UB  Enllaç

PORTER, Gary A., NORTON, Curtis L. Financial accounting : the impact on decision makers.  9th ed.  Stamford: Cengage Learning, 2017

Catāleg UB  Enllaç