Taught In English

There is no language prerequisite for courses at this language level.

Advised previous requirements: Introductory finanacial accounting.

FINANCIAL ACCOUNTING I

Course Description
This course deepens students’ knowledge of terminology, concepts, and practices of financial accounting, and further develops their skills to exploit the potential of financial statements for analyzing the economic status and performance of companies. Specifically, the economic relevance and accounting implications of a firm’s most typical operating, investing, and financing activities are analyzed in detail.

Course Orientation
Lectures, exercises, cases, group project, computer tutorial.

Required text
· Diamond, Stice & Stice, Financial Accounting; Reporting and Analysis,
South-Western, 5th edition, 1999.
Additionally recommended texts
· Anthony, Reece & Hertenstein, Accounting: Text and Cases, Irwin.
· Urías, Introducción a la contabilidad; Teoria y supuestos, Pirámide (if you
prefer something in Spanish).

Course outline

1 Review and further elaboration of basic concepts The balance sheet, income statement, and statement of retained earnings; the accounting
cycle; GAAP;

2 The Cash Flow Statement Purposes and preparation; direct and indirect method; use of worksheets;

3 Revenue and monetary assets Revenue recognition; revenue cycle; bad debts;

4 Inventories and cost of sales Inventory systems; inventory valuation methods;

5 Other operating items Employee compensation; income taxes;

6 Investments in operating assets Acquisition; depreciation; disposal;

7 Investments in securities;Current marketable securities; long-term investments;

8 Financing activities Bonds; other forms of debt; equity financing;

9 International aspects Transactions in foreign currencies; hedging of foreign exchange risk; international differences in GAAP and harmonization