Introduction to finance and accounting

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The main objective of the lecture is to introduce students to basic aspects of financial accounting and its rules, to teach students how to prepare balance sheet, income statement, cash-flow report, how to record typical accounting transactions. During the course students will learn how to understand and interpret financial statements data, calculate financial ratios and operational/financial leverage.

1. The Nature and Functions of Accounting

- The Record-keeping Function

- Classifying and Summarizing Transactions

- Accounting and Decision Making

2. Accounting and the forms of Business Enterprises

3. The Primary Users of Accounting Information.

4. Accountants its role as providers of accounting Information.

5. The Setting of Accounting Standards.

6. Accounting concepts and conventions inherent in accounting Information .

7. Financial Statements and Their Elements

- The Balance Sheet

- The Income Statement

- The retained Earnings Statement

- The Statement of Changes in Financial Position

8. Measuring and recording income statement transactions:

- revenues and expenses

- gain and losses

- net income

- dividends

9. Recording balance sheet transactions:

- debit and credit rules

- journal entries

- recording of transactions

10. Interpreting financial statements’ data;

11. Fixed vs variable costs; direct vs indirect costs,

12. Financial ratios

a/ liquidity ratios

b/ profitability ratios

c/ activity ratios

d/ other ratios

13. Operating leverage definition, and calculation.

“Corporate Accounting in the unstable world” Mirosław Bojańczyk

ABiF Vistula /Warsaw 2017 ;

„Accounting for Business Studies” by Aneirin Sion Owen; Manchester Metropolitan University;

M.Bojańczyk, Managers and owners on the capital market, crisis in company management, Warsaw School of Economics, 2010;

Other teaching materials: Papers of F1 ACCA exam – Accountant in Bussiness,

1. Graduate has the basic knowledge about economic sciences, in particular economics, finance and management, as well as their place in the system of sciences and relations to other sciences;

2. Student has the basic knowledge about contemporary theories of finance science and the existing relationships between them as well as analysis methods used in finance, including sources of information;

3. Student knows the methods of financing, setting up and running a business and understands the importance of effective organization, financing, keeping business records, accounting, reporting and conducting analysis of financial data as well as the principles of industrial property protection and copyright.

Final Exam - 90 %

Activity during classes 10%