Excerpt from course description

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. 

Course content

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)


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