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General information |
Course unit name: Introduction to Financial Accounting
Course unit code: 364546
Academic year: 2025-2026
Coordinator: Jordi Morros Ribera
Department: Department of Business
Credits: 6
Single program: S
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Estimated learning time |
Total number of hours 150 |
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Face-to-face and/or online activities |
60 |
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- Lecture with practical component |
Face-to-face |
15 |
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- Problem-solving class |
Face-to-face and online |
45 |
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Supervised project |
40 |
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Independent learning |
50 |
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Recommendations |
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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:
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Competences / Learning outcomes 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. |
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Learning objectives |
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Referring to knowledge — Understand the importance and operation modes of accounting as an information system to support economic decision-making.
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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 operations 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
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Teaching methods and general organization |
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The theoretical and practical content of this subject is taught by means of on-campus learning activities, mainly lectures. Classes are used to present the topics outlined in the teaching blocks and to work through exercises and problem-solving activities.
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Official assessment of learning outcomes |
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Students are automatically entered for continuous assessment. During the academic year, students are entitled to withdraw from continuous assessment and may opt for single assessment up until the last day of class (no previous request being required).
Examination-based assessment The single assessment final examination for students who opt for this mode comprises a theoretical and a practical section.
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Reading and study resources |
Check availability in Cercabib
Book
HORNGREN, Charles T. [et al.] Introduction to financial accounting. 11th ed. Harlow: Pearson Education Limited, 2018
KIMMEL, Paul D., WEYGANDT, Jerry J., KIESO, Donald E. Financial accounting: tools for business decision making. 10th ed. Hoboken, N.J. : Wiley, 2021
MONGER, Rod F. Financial accounting : a global approach. Chichester : Wiley, 2010
PORTER, Gary A., NORTON, Curtis L. Financial accounting : the impact on decision makers. 9th ed. Stamford: Cengage Learning, 2017