The aim of the course is to provide knowledge of the company's accounting methods of operation and the logic, methods and tools of accounting management of companies, promoting the understanding of economic processes, resource organization and measurement of administrative facts.
At the end of the course the student will know learn to prepare financial statement and apply different accounting principles. The student will develop skills for read and compare different financial statements of different companies.
The learning objectives of the course can be specified:
1) Knowledge and comprehension skills. Knowledge and comprehension about the recognition and transaction and its financial measurement and communication;
2) Applying knowledge and understanding. student will be able to apply the accounting methodology to construction of a financial statement and make an assessment of economic expediency to account for the main company management operations and to observe an annual financial statements;;
3) Autonomy of judgment. The student will be able to identify key variables in assessing and judge the financial performance of a business.students will demonstrate the ability to choose, among different options, the most appropriate and effective solution to the accounting records and to draw up the financial statements;
4) Communication: the student is expected to give clear and in-depth answers to the questions of the written exam and, eventually, to the ones of the oral exam;
5) Lifelong learning skills: the student should be able to show a good learning ability, by widening, for example, his/her knowledge with use of relevant bibliographic references. The student will have the opportunity to apply the knowledge gained in previous courses integrating them with the additional professional skills that characterize the course. Moreover the student will acquire the necessary knowledge to face further university studies and post university studies.
General knowledge and reasoning ability. Some basic knowledge of business administration, if previously acquired by the student, can facilitate the learning process.
This course is designed to provide a basic understanding of financial accounting techniques in order to prepare financial statements.
Main topics include:
The accounting cycle
Accounting for ordinary business transactions;
Preparation of trial balance
Adjustments and closing entries
Preparation of Financial statements
The course is composed by 9 CFU, it's divided in 3 parts.
I part (3CFU, 24 hours, only frontal lectures) Foundation of financial accounting: the double-entry method, the accounting systems, the accounting cycle;
II part (3 CFU, total hours: 24; 14 frontal lectures, 10 practical team work)the double-entry method: systematic operation for administrative facts; fixed assets, Payroll, financing operations, financial statement, balance sheet, income statement, statement of cash flow. From net income to cash flow: cash flow statement preparation and interpretation.
III part (3 CFU, total hours: 24; 10 Frontal lectures, 4 guest speakers, 5 practical team work, 5 exercise.) the balance: the accrual entries, The legislation on financial statement and the accounting standards. The role and the assumptions of the financial statement. The formats of the financial statement.
The course includes frontal lessons during which the themes of the program are discussed.
J. Wild (2009), Financial Accounting Fundamentals, McGraw-Hill.
The exam is composed by two parts: written exam, it is obligatory and oral exam, it is discretionary (in different day).
The written exam (1 hour, 18 up to 30) is in order to verify that the student is able to apply the concepts learned in class by applying the double entry method accordingly (purchases, sales, relationships with suppliers customers, staff, banks etc ..). The exam require also to transform the individual accounting operations in structured financial statements. For this reason, , the examination will also include the verification of the ability to prepare financial statements for the period (only balance sheet and income statement) based on information deduced from the accounts. The written examination also includes some multiple choice questions that are based on the appropriate interpretation of accounting. The purpose of these questions is to verify that the student has learned the main variables that affect the financial and econimic reasoning.
The written test will consist of three exercises (5 points each exercise for a total of 15 points) and 15 multiple choice questions (1 point for each correct question 0 points for each wrong question).
The oral exam will be a discretion of the teacher or at the request of the student. In this case the evaluation will consist of the results of the written test and oral exam.