Principles of Financial Accounting

Accounting and its environment. Elements of financial statements. Business events. Simple and extended accounting equation. Transactions. Documentation of transactions. Accounts and double-entry accounting. Completing the accounting cycle. Adjusting and closing entries. Special accounting journals. Accounting for receivables and uncollectibles. Accounting for inventories (perpetual and periodic system), inventory costing models. Accounting for tangible and intangible assets. Accounting for current and long-term liabilities. Accounting for owners’ equity. Financial statements: balance sheet, income statement, cash flow statement, notes. Generally accepted accounting principles. Accounting legislation in Estonia. International financial reporting standards (IFRS).

NB! This course will take place in spring semester 2024/2025 which starts on 3rd of February and ends on 16th of June (you can find that information under Start date section). The real course start and end dates will be announced at the beginning of February at the latest.

After completing this course the student is able to:

• record business transactions and complete the accounting cycle;
• account for receivables, inventories, tangible and intangible assets, current and long-term liabilities, owners’ equity.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

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lectures, exercises