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Introduction

Accounting can be regarded as an information system that helps multiple decision makers to make smarter decisions. The aim of this first course in the field of accounting is to give students basic elementary accounting knowledge and skills. At the end of the course, students can make smart decisions based on accounting numbers by carrying out basic accounting specific analyses. They can also take part in discussions about accounting problems and communicate the results of their analyses in an understandable manner.

Course content

The course consists of three subtopics:

Subtopic 1: Financial Accounting

• Main financial statements (income statement and balance sheet)
• The balance sheet equation (basic accounting relationships)
• Transactions (effect on income statement and balance sheet)
• Basic accounting policies (including depreciation and accrual accounting)
• Basic financial statement analysis (wrt. liquidity, solvency, profitability and efficiency)
• The relationship between performance indicators

Subtopic 2: Cost and revenue analysis

• Cost theory (including variable and fixed costs, direct and indirect costs)
• Cost allocation (including cost types, cost center and cost object)
• Cost calculations (including contribution calculations and ABC calculations)
• Zero-point analysis (including safety margin)
• Short-term decision problems (including special orders, campaigns, outsourcing and cost/revenue relevance)

Subtopic 3: Introduction to finance and investment decisions

• Introduction to budgeting
• Capital budgeting 
• The time value of money  
• Discounted cash flow methods (net present value and internal rate of return)

Comments:

•    The use of Excel will be enhanced and integrated in the course.