Degree in Management of Business and Technology La Salle Campus Barcelona

Degree in Management of Business and Technology

Internationality, technology, innovation, creativity, entrepreneurship, values, and both people and team management are the keys to define this degree. Includes international stages.

Accounting Principles II

This course is a continuation to Accounting Principles I. During the first half of the course the student will become fully acquainted with the composition and importance of the company's stockholders' equity, and how businesses obtain their initial funding. The concepts and financial analysis techniques previously learned in Accounting Principles I will become the basic tools to be able to understand the Income Statement, Retained Earnings, and Cash Flows of the business. Moreover, they will study the different tools and measures used in Financial Statement Analysis which are of outmost importance when assessing companies through their basic financial statements. They will also be able to understand the impact of globalization on Financial Accounting. The second half of the course will be devoted to studying Management or Cost Accounting and the basic cost accounting systems most frequently used by companies to evaluate their performance and make profitable decisions. Other concepts to be covered include cost-volume-profit relationships and incremental analysis.
Type Subject
Tercer - Obligatoria

Titular Professors

Previous Knowledge

Students will be instructed and assisted in understanding:
- The stockholders' equity section of the balance sheet and the composition of the company's paid-in capital.
- Learn to accurately report the earnings of the business by differentiating between usual and non-recurring events in the Income Statement.
- Learn to prepare a Statement of Cash Flows and fully understand the differences between cash basis and accrual accounting.
- Learn the basic tools to perform a financial statement analysis and be able to extract meaningful information from the financial statements of the company used for decision making.
- Understand how accounting is influenced by business transactions in today's global environment.
- Understand the basic concepts of Cost Accounting or Managerial Accounting: the flow of factors of production, to find the unit cost of a product, and determine which of the various cost accounting systems is most appropriate for the business depending on its activity.
- Understand the different stages of a product in the value chain and how to minimize cost and improve efficiency.
- Understand cost-volume-profit relationships.
- Perform incremental analysis on various alternatives in order to choose the most profitable outcome.


Below you can find the main topics that will be covered. The order in which they are covered will vary.
Chapter 1 - Stockholders' Equity and Paid-in Capital
Chapter 2 - Income and Changes in Retained Earnings
Chapter 3 - Statement of Cash Flows
Chapter 4 - Financial Statement Analysis
Chapter 5 - Global Business and Accounting
Chapter 6 - Introduction to Management Accounting
Chapter 7 - Job Order Cost Systems and Process Costing
Chapter 8 - Costing and the Value Chain
Chapter 9 - Cost-Volume-Profit Analysis
Chapter 10 - Incremental Analysis


The class sessions will consist of one-hour lecture time that will be recorded and common to all four groups.

The two hours of class will be devoted to clearing doubts on the lecture, class discussion and solving homework problems. Moreover, there is a group project (3 or 4 students) on Financial Statement Analysis to be delivered on the week following midterm exams. Instructions and guidelines on the project will be provided by the instructor during the course and sessions will be set aside to answer questions and doubts.


The course grade will be based on the following point breakdown:
Attendance and active class participation (including solving previously assigned homework) 25%
Group project: 20%
Midterm exam: 25%
Final exam: 30%

Evaluation Criteria
Basic Bibliography

Williams, Haka, Bettner, & Carcello. (2018). Financial & Managerial Accounting (18th ed.). New York, NY: McGraw-Hill

Additional Material