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Economics Theory and Accounting

Course developers

Prior knowledge

Mate3012, Mathematics

Course abstract

The course in Economics Theory deals with theoretical basics and economic regularities at the microeconomic and macroeconomic levels in order to understand the practical opportunity to use them, as well as to understand macroeconomic relationships and trends in the economy of Latvia.
The course in Accounting provides basic knowledge of the system of accounting in Latvia, the areas, principles and methods of accounting, accounting items, how to organise the accounting process and keep records in the double entry system as well as of the content of an annual accounting report.

Learning outcomes and their assessment

KNOWLEDGE of
1) the real situation in the national economy and the contribution of the forest industry to the economy. Discussion.
2) accounting methodologies, accounting items and their recording in the double-entry system, the structure of the annual financial report and the basic principles of the preparation thereof. Test with calculations, discussions in classes.
SKILLS to
1) to assess the market situation and the effects of non-price factors of demand and supply on a market equilibrium, perform an economic assessment of an enterprise’s production costs. Practical assignments, a test.
2) apply accounting methods, define the modern forms of an enterprise’s internal control and apply these forms, observe the accounting organization requirements and accounting rules specified in relevant regulatory enactments. Practical assignments, a test with calculations, discussions in classes.
COMPETENCES to
1) analyse macroeconomic regularities and discuss urgent problems in the national economy. Discussions, a test.

2) implement the accounting principles in an enterprise according to the requirements of relevant regulatory enactments and the specifics of the activity of a hospitality enterprise. Tests, practical assignments.

Course Content(Calendar)

1. Economic levels. Demand and supply. Price elasticity of demand and supply. (1h lecture, 2 h practicals).
2. Consumer behaviours in the market. (1 h lecture, 2 h practicals).
3. Production, related costs. (1h lecture, 2h practicals).
4. Kinds of markets. (1 h lecture, 2 h practicals).
5. Key macroeconomic indicators: GDP, employment, inflation. (1 h lecture, 2 h practicals).
6. Money and the banking system. (1 h lecture, 2 h practicals).
7. Fiscal and monetary policies. (1 h lecture, 2 h practicals).
8. International trade. (1 h lecture, 2 h practicals).
9. Accounting, the role of and requirements for it. The substance and objectives of accounting. (1 h lecture).
10. Principles and methods of accounting. Accounting items. The elements of the accounting method. (2 h lectures).
11. Concept and structure of a balance sheet. Changes in balance sheet items. (3 h lectures, 2 h practicals, 1 h test).
12. Concept and general structure of accounts. Balance sheet account structure. Operational account structure. (3 h lectures, 2 h practicals, 1 h test).
13. Concept and role of a document. Requirements for documents. (2 h lectures, 1 h practical).
14. Organization of the accounting process at an enterprise. (1h lecture).
15. End of the year: an annual financial report, a balance sheet and a cash flow report. (2 h lectures).

16. Preparation, approval and submission of an annual financial report. Test. (2 h lectures, 1 h practical).

Requirements for awarding credit points

The student must pass a test in microeconomics and a test in macroeconomics.
In accounting, a cumulative assessment is made up of:
1) two tests successfully passed during the semester: the accounting balance and its structure; accounting accounts and the registration of economic operations;
2) practical assignments done. If a test has not been passed, retaking the test is permitted once, in writing, for theoretical matters learned and practical assignments done during the semester.

Description of the organization and tasks of students’ independent work

The student must to do compulsory reading –regulatory literature on accounting – throughout the semester and prepare for tests.
The student has to be able to explain and interpret complex technical accounting data and learn to register economic transactions in an account, make a profit or loss account, calculate net profit and report it on the balance sheet.
The student must do independent work – to make a presentation on an innovative product in Latvia.

Criteria for Evaluating Learning Outcomes

The final mark is calculated as an arithmetic average. The final mark is comprised of: a test on microeconomics 25%; a test on macroeconomics 25%; two tests on accounting (20% and 15%, totally 35%) and the student’s activity in practicals 15%.

Compulsory reading

1. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015., 269 lpp.
2. Nešpors V. Mikroekonomikas teorijas pamati. Rīga, RTU, 2015., 244 lpp.
3. Leibus I., Grigorjeva R., Jesemčika A., Svarinska A. Grāmatvedības pamati uzņēmumos. Atkārtots un atjaunots 2. izdevums. Rīga: Lietišķās informācijas dienests, 2016. 195 lpp. ISBN 978-9984-896-10-6
4. Kelmere L. Ievads grāmatvedībā jeb Grāmatvedības pamati: teorija un uzdevumi. Rīga: Lietišķās informācijas dienests, 2020. 255 lpp.

5. Par grāmatvedību: LR likums // LR Normatīvie dokumenti: www.likumi.lv.

Further reading

1. Dzelmīte M., Volodina M. Mikroekonomika. Rīga: SIA Izglītības soļi, 2004., 241 lpp
2. Bikse V. Makroekonomika: teorija un politika. LiePA, 2015, 269 lpp.
3. Januška M. Uzskaite un pārskati mūsdienu uzņēmējdarbībā. Rīga: Merkūrijs LAT. 2008. 99 lpp.

4. Krogzeme H. Komersantu darbības analīze un kontrole. Rīga: RTU 2013. 348 lpp.

Periodicals and other sources

1. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. 2005- ISSN 14075709
2. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X
3. Latvijas Bankas uzturēta ekonomiskās analīzes vietne. Pieejams: https://www.makroekonomika.lv/

4. Centrālā statistikas pārvalde. Pieejams: https://www.csb.gov.lv/lv/sakums

Notes

Field professional specialisation course for the Forest Faculty professional bachelor programme Forestry Science and Forest Engineering during the 4th and 6th semesters in full and part-time studies.