BØK 3430 Fundamentals of Accounting and Finance
BØK 3430 Fundamentals of Accounting and Finance
The aim of this first course in the field of managerial accounting is to give students basic elementary knowledge and skills, so that they can take part in discussions on managerial accounting problems, carry out simple managerial accounting analyses, make correct decisions in managerial accounting and communicate the results of the analyses in an understandable manner.
After having completed the course, the students shall be capable of explaining concepts and give an account of important tools used in analyses of managerial accounting problems (tools include connections, methods, techniques, models, theories, etc. that are applied in the subject area).
- Examples of concepts that students must be able to explain: fixed costs, variable costs, sunk cost, present value, internal rate of return, alternative cost, income statement, gross margin, return on total assets, cash flow.
- Examples from the toolbox: Margin calculations, cost calculations, profit and loss account, liquidity budget, break-even turnover, ratios and deviation analyses, simple multi-period project analysis and measurement of profitability.
After completing the course, students should be able to:
- Apply acquired knowledge (i.e. concepts and tools) in analyzes and discussions of business economic issues,
- Distinguish between relevant and irrelevant information, and
- Give written answers to questions that enable the readers to understand the method used and the answer that emerges. Examples:
- When the tool is specified, be able to use the tool in a correct way.
- Based on simple situation descriptions, choose the right tool and use the tool correctly.
- Based on more unclear situation descriptions, be able to find relevant information, connect this with the right tool and use the tool correctly.
As the business economics toolbox is universally valid, the skill targets will also be relevant in international settings.
After completing the course, the students shall be able to ask critical questions and reflect on crucial assumptions and theories within the business economics field, and thus be able to contribute to profitable and sustainable business activity.
The course consists of three parts:
Part 1: Accounting and budgeting
- The financial accounts' main reports (the profit and loss account and the balance sheet)
- The balance equation (basic accounting relationships)
- Transactions (effect on profit and loss account and balance sheet)
- Basic accounting principles (including depreciation and accruals in general)
- Basic accounting analysis (liquidity, solvency, profitability and efficiency)
- The main budgets (profit, balance sheet and liquidity) and the relationship between them
Part 2: Cost and income analysis
- Cost theory (including variable and fixed costs, direct and indirect costs)
- Cost allocation (including cost object, cost center and additional calculation)
- Calculation (including self-cost, contribution and ABC calculations)
- Zero point analyzes (including safety margin)
- Short-term decision problems (including special orders, campaigns, outsourcing and cost/income relevance)
Part 3: Finance: Analysis of investment projects
- Cash flow budgeting (including working capital requirements)
- Time value of money (future value, present value and the importance of interest-interest effects)
- Effective interest calculation and measurement of return on investments (internal rate of return)
- Measuring profitability in investment projects (net present value)
The course is carried out both as part of a full-time study and as part of an online study.
Completion as a full-time study
As part of a full-time study, the course is carried out through a combination of lectures, lecturer-led assignment review, digital learning elements (mandatory work requirements and voluntary practice assignments) and self-study (reading literature and solving assignments).
As regards the mandatory work requirements, the time consumption per work requirement will depend on how much the students have worked on the syllabus before the work requirement is made available. Some of the work requirements may require a significant effort if the students are not up to date with the progress plan for the course.
The teaching will consist of lectures on parts of the syllabus and review of assignments. The parts of the syllabus that are not covered through lectures or through a lecturer-led review of assignments, it is assumed that the students work on them on their own. The lectures assume that the students are prepared for the classes (i.e. that the students have read the syllabus, utilized any digital learning elements and solved tasks before the lectures start), as this will give the greatest learning benefit.
It is planned to use spreadsheets in connection with solving tasks where spreadsheets are appropriate (for example in connection with accounting analysis, budgeting and profitability analyses).
Completion as an online course
In the implementation of the course as an online study, the lecturer, in collaboration with the study administration, will organize an appropriate course implementation, with a combination of various learning activities (compulsory work requirements and voluntary submission tasks) and digital elements (introductory videos and webinars) on the learning platform. Online students are also offered a study guide that will contribute to progression and an overview. The total recommended time consumption for completing the course also applies here.
Softwear tools
Spreadsheets (Excel) are used in the course where appropriate.
Re-sit exam
Students who do not get the work requirement approved in the course are not allowed to take the exam. This means that they must take the entire course again when completing it later.
Students who do not pass the written exam or who wish to improve their grade can take a new continuation exam when the exam is completed later.
| Mandatory coursework | Courseworks given | Courseworks required | Comment coursework |
|---|---|---|---|
| Mandatory | 8 | 4 | Eight coursework assignments are published per semester. Four of these must be approved in order to be able to take the exam. In order for the coursework assignments to be approved they must meet certain minimum requirements (e.g. a certain number of questions must be answered correctly). Further information is given at lectures and Itslearning. |
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 100 Grouping: Individual Duration: 3 Hour(s) Comment: Written school exam (pen and paper) Exam code: BØK 34301 Grading scale: ECTS Resit: Examination every semester |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 57 Hour(s) | |
Prepare for teaching | 113 Hour(s) | |
Examination | 30 Hour(s) | Including preparations |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.