Fundamentals of Accounting and Finance

Introduction

The objective of the course is to provide students with fundamental knowledge and skills within the field of accounting and finance. Students will learn to conduct basic analyses, make decisions, and communicate the results in an understandable manner.

Course content

The course is divided into three main areas with a focus on practical application:

1.  Accounting, Budgeting, and Analysis:

• Primary financial statements (income statement and balance sheet) and transaction analysis, focusing on fundamental accounting relationships.
• The main budgets (income statement, balance sheet, and cash flow).
• Financial ratio analysis, emphasizing selected ratios for liquidity, solvency, and profitability.

2. Cost Understanding and Decision-Making:

• Cost theory and cost allocation.
• Product costing (full cost and contribution margin) and break-even analysis.
• Short-term decision-making problems, such as special orders and outsourcing.

3. Finance and Investment Analysis

• The time value of money: Present value, future value, and interest.
• Investment analysis: Cash flows, net present value, and internal rate of return (focusing on ordinary annuities).

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.