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Economics and Accounting

Course developers

Course abstract

The course aims to provide students with an understanding of economic relationships at both the microeconomic and macroeconomic levels and of the accounting system in Latvia. The course analyses current developments in Latvia at the macroeconomic level, allowing students to assess them and express their opinions on economic forecasts.
The course provides basic knowledge of the accounting system in Latvia, the areas, principles and methods of accounting, accounting items and the recording of accounting items in the double-entry system, as well as the content of an annual financial statement.

Learning outcomes and their assessment

Students will be able to demonstrate:
Knowledge of basic microeconomic indicators and the nature of and relationships between macroeconomic indicators is assessed by a test.
Knowledge of the role of the forest sector in economic growth and international trade is assessed by a presentation of independent work.
Understanding of the accounting system in Latvia and the accounting methodology. Assessment method: discussion during classes.
Understanding of basic requirements for accounting for company assets, capital, revenues and expenses. Assessment method: a test with calculations.
Professional skills to independently and critically select and analyse current economic indicators, draw reasoned conclusions and make proposals for improvement in the situation are acquired during discussions, independent and group work, self-tests and presentations and tested by tests. Professional skills to apply accounting methods and observe accounting principles for valuation of balance sheet items: discussion during classes.
Soft skills to perform tasks within deadlines, assume responsibility, develop communication skills and critical thinking about macroeconomic problems, gather information using various information resources and engage in conversation, defending their own opinions: independent work, discussion during classes.
Competences to independently acquire, select, systematize the necessary information, independently analyse and solve problems, make reasoned decisions are assessed during practicals based on the comprehensive theoretical knowledge acquired and economic relationships learnt.
Competences to establish an accounting process in a company, identify and analyse problems in the accounting process: practical assignments and a test.

Course Content(Calendar)

1. Levels of economic analysis. Market demand and supply. (2 hours)
2. Price elasticity of supply and demand. Consumer behaviour in the market. (2 hours)
3. Production, production costs (2 hours)
4. Types of market competition, the features thereof. The market for the factors of production (resources). Test. (2 hours)
5. Basic macroeconomic indicators. Aggregate demand and supply. (2 hours)
6. Employment and unemployment. Inflation. (2 hours)
7. Student presentations on the role of the forest sector in economic growth. (2 hours)
8. Money and the banking system. The state budget and tax policies. (2 hours)
9. Introduction to accounting. Accounting concepts (terms). The basic idea of accounting, the objectives. Users of accounting data. Basic requirements for the organization and management of the accounting process. The concept of monetary representation (1 hour).
10. The subject and methods of accounting. Accounting items. Costs and values. The principle of individual valuation. Elements of the accounting method. The subject of financial accounting (1hour).
11. The accounting (balance sheet) equation. The concept and structure of a balance sheet. Changes in balance sheet items. The business equation (profit earned). Long-term investments and current assets. Capital and revenue. Creditors and debtors (4 hours).
12. Accounts and their general construction. Balance sheet account structure. Operation account structure. Synthetic and analytical accounts. Recording of economic operations. Making entries in registers and the double-entry system (3 hours).
13. Requirements for documents. The classification of documents: cash, product, raw material and fixed asset flow, wage calculation and other documents. Correction of errors in accounting documents and registers (2 hours).
14. Accounting policies and accounting process documents. Stocktaking. (2 hours).
15. The content and drawing up, approval and submission of an annual financial statement. A profit or loss statement (3 hours).

Requirements for awarding credit points

The student must pass a test with calculations of microeconomic indicators, make a presentation during practical classes on the results of independent work on the economic performance of the forest sector and its role in the national economy, as well as participate in practical classes and take self-tests available on the e-learning platform.
The student must pass a test with calculations of a balance sheet, the accounts and the composition, and on the recording of economic operations perform practical assignments and demonstrate the ability to discuss accounting methods and principles and use communication skills.

Description of the organization and tasks of students’ independent work

The student must do independent work and analyse economic trends and their impacts on economic growth, as well as prepare for discussions during classes on the role of analysing basic economic indicators. The student must read the literature and textbooks prescribed, prepare for discussions on important accounting issues.

Criteria for Evaluating Learning Outcomes

In microeconomics, the final mark consists of the following pieces of assessment: a test – 20%; a presentation – 20%, independent work and participation in discussions – 10%.
In accounting, the final mark consists of the following pieces of assessment: discussions in classes – 10%, practical assignments – 25%, a test with calculations – 15%.

Compulsory reading

1. Bikse V. Ekonomikas teorijas pamatprincipi:
mācību līdzeklis /Veronika Bikse. Rīga: Izglītības soļi, 2007.454 lpp
2. Šenfelde, M. Makroekonomika.
Rīga : RTU izdevniecība, 2012. 244 lpp.
3. Grāmatvedības pamati uzņēmumos. I. Leibus, R.Grigorjeva, A. Jesemčika, A. Svarinska. Rīga: Lietišķās informācijas dienests, 2019. 195 lpp.
4. Kelmere L. Ievads grāmatvedībā jeb grāmatvedības pamati: teorija un uzdevumi. Rīga: Lietišķās informācijas dienests, 2020. 255 lpp.

Further reading

1. King, D. (2012). Economics / David King. New York: Oxford University Press 676 p. LLU lasītavā
2.Finanšu grāmatvedība. I. Leibus, I. Pētersone, A. Jesemčika, A. Svarinska, R. Grigorjeva Rīga: Lietišķās informācijas dienests, 2020. 320 lpp.

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: ISSN 1407-2041.
2. Forbes. Rīga: SK Media. ISSN 1691-6018
3. Bilance: grāmatvedība, likumdošana, finanses: žurnāls par grāmatvedību, likumdošanu un finansēm. Rīga: Lietišķās informācijas dienests. 2005- ISSN 14075709
4. iFinanses. Rīga: Izdevniecība iŽurnāli. ISSN 2255-985X

Notes

Compulsory course for the LLU Forest Faculty academic bachelor programme Forestry Science and the professional bachelor programme Forest Engineering