SUBJECT: Basic Accounting
PROFESSOR: Langer
PROGRAM AREA: Pre course: Basic Accounting
INTAKE: November 2020
TOTAL LESSON HOURS: 2 hours delivered in 4 30 minute recorded sessions
LANGUAGE: English
COURSE FORMATIVE OBJECTIVES:
The basics of financial accounting are presented. Topics include accrual accounting, financial
statement analysis, tax accounting, backup schedules, ratio analysis, public filing (10-K) review and
other select accounting topics. The principal focus is on those aspects of accounting most in use
by decision-makers, and most useful to students. Reading and complementary class notes
supplement PowerPoint slides.
INTENDED LEARNING OUTCOMES – ILO’S:
 Heighten knowledge of accounting concepts, tax issues, non-cash effects, accrual
accounting.
 Utilize financial and cost accounting data to make more informed analyses.
 Better account for financial transactions using debits and credits.
 Know the relationship among the income statement, balance sheet and cash flow
statement.
 Develop ratio analyses to gain insight on company operations via the financial statements.
PREREQUISITES:
None
COURSE CONTENTS:
First 30 minutes: Accrual accounting; debits and credits
Second 30 minutes: Income statement
Third 30 minutes: Balance sheet
Fourth 30 minutes: Cash flow statement; additional accounting concepts.
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EXTENDED PROGRAM AND REFERENCE READING MATERIAL:
Topic 1: Accrual accounting; debits and credits
Short overview of the lesson: Explanation of accrual accounting, its effects on cash, and the
use of debits and credits.
Pre reading / required materials and materials for home readings: FA: Sections 3 and 4
Suggested HW problems: See HW (doc file) on accrual accounting and debits and credits in
HW folder in Dropbox.
Topic 2: Income statement
Short overview of the lesson: Basic income statement explanation and analysis. Margins,
growth rates, EBITDA, EPS, among other relevant concepts.
Pre reading / required materials and materials for home readings: FS: Income statement
chapter in Reading folder on Dropbox.
Suggested HW problems: See HW (xls file) on income statement in HW folder in Dropbox.
Topic 3: Balance sheet
Short overview of the lesson: Basic balance sheet explanation and analysis. Working capital
ratios, cash, debt, equity, among other relevant concepts.
Pre reading / required materials and materials for home readings: FS: Balance sheet
chapter in Reading folder on Dropbox.
Suggested HW problems: See HW (xls files) on balance sheet assets and balance sheet
liabilities in HW folder in Dropbox.
Topic 4: Cash flow statement and additional accounting concepts
Short overview of the lesson: Basic cash flow statement explanation and analysis. Cash
flow from operations, investing, financing. Presentation of additional accounting concepts:
ratios, future commitments, managerial accounting, national income accounting.
Pre reading / required materials and materials for home readings: FS: Cash flow statement
and ratios chapters and KR (Krugman) chapter 12 reading on national income accounting in
Reading folder on Dropbox.
Suggested HW problems: See HW (doc and xls files) on cash flow statement and ratios in
HW folder in Dropbox and rbs - International macro exercise-w hw.xls in National income
accounting folder on Dropbox.
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REFERENCE MATERIALS:
Available in Dropbox: https://www.dropbox.com/sh/zakhzs0ncprri6c/AABDRaJW6OBaKCikHIFKDp2Qa?dl=0
FA: Finance and Accounting Summary
FS: Fraser, Ormiston, Understanding Financial Statements, 7th Edition, Prentice Hall, 2004
KR: Krugman, Obstfeld, International Economics: Theory and Policy, Pearson
TEACHING METHOD:
Didactic – 100%
- traditional frontal lecture 80%
- YouTube videos 15%
- articles 5%
ASSESSMENT METHOD:
End of module test: 100%
CONTACT DETAILS:
Professor email contact: mlanger11@gmail.com / +39 347.1763096
Program Coordinator email contact:
Program email contact:
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