Fundamentals of accounting 2600-MSEM2PR

Lecture:
1. Functions, subject and subjects of accounting, operational cycle. The regulatory framework (legislation and regulation, reasons and limitations,
relevance of accounting principles)
2. Balance sheet - property resources and sources of their origin, statement of financial position
3. Revenue and expenses. Assessment of the effects of the current activity of the entity - accrual approach: profit and loss account.
4. Statement of cash flows.
5. Measure and valuation economic events, event recording system. Permanent accounts. Trial balance
6. Revenue and expenses and their recording system.
7. Books of accounts, book keeping, source documents. Financial statements -underlying economic performance of a company.
Exercises:
1. Balance sheet layout. Legal basis for balance sheet classification, criteria for organizing data in the balance sheet: liquidity and maturity.
2. Preparation of a balance sheet for business entities. Accounting equation.
3. Basic categories of revenues and costs in relation to the activities of the entity.
4. Assessment of the effects of the current activity of the entity - accrual approach: profit and loss account, segment character of the account.
5. Comparative variant of the profit and loss account. Prepaid expenses.
6. Calculation variant of profit and loss account. Product cost, cost of goods sold, change in inventory, period costs.
7. Assessment of the effects of the current activity of the unit - cash approach: cash flow statement.
8. The concept of an economic event. Classification of balance and result events.
9. Account - a method to register changes in value of an entity’s properties situation – permanent accounts . Dual aspect convention.
10. Permanent accounts. Trial balance.
11. Income statement accounts, which are closed at the end of an accounting period.
12. Accounting determination of the profit for production activities.