Principles of Accounting History, Politics & International Studies Program Spring 2020 Semester - Madrid

1: Introduction to accounting
1.1 Economic activity and information needs
1.2 Accounting: formal concept
1.3 Divisions of accounting
1.4 The importance of accounting information
1.5 The users of accounting information
1.6 How does accounting work?
1.7 The characteristics of accounting information
1.8 Accounting standardisation (regulation)
2: Assets, Liabilities and Equity. The accounting equation
2.1 The value of the company
2.2 Economic structure and financing structure. Assets, Liabilities and equity. The accounting equation.
2.3 Categories of assets, liabilities and owners ¿ equity
2.4 Business transactions and the accounting equation
2.5 The balance sheet
2.6 The income statement (profit and loss account)
3: The accounting method
3.1 Accounting for business transactions
3.2 The account: the double- entry system
3.3 The accounting books: the Journal and the Ledger. The Trial Balance
3.4 Recording transactions in the Journal
3.5 Charts of Accounts
3.6 Accounting's foundation: Principles and Concepts
4: The accounting process
4.1 The phases of the accounting process
4.2 Opening phase
4.3 Transactions phase
4.4 Closing phase
4.4.1 Determining accounting income
4.4.2 Closing the books
4.4.4 Preparing the Financial Statements
5: Valuation and reporting transactions
5.1 Measuring transactions (assets and inventories)
5.2 Recording purchases and sales of inventories (stocks)
5.2.1. The Perpetual system
5.2.2. The Periodic system
5.3 Financing activities
5.3.1. Internal finance sources
5.3.2. External finance sources
6: Calculation of accounting earnings and producing the financial statements.
6.1 Expenses and revenues.
6.2. Accrued expenses and revenues.
6.3. Adjusting changes in inventories with the periodic system
6.4. Adjusting the value of the assets
6.5. The process to obtain accounting income
6.6. Preparation of the financial statements