Preparation and analysis of financial reports. Objectives Economic decisions cannot be made without economic information, and the better the information, the better the decision, generally. Because financial statements are a primary source of information for economic decisions of the type made in business, it is desirable that all business students possess a fundamental understanding of the principles and procedures used in developing financial statements. Thus, it is the goal of this course to help the student understand what is being communicated by financial statements, and how that information can be used by a decision-maker. It must be stressed that this is a course in financial accounting and not a course in bookkeeping, thus preparation of financial statements will be done only for the purpose of understanding where financial reports originate and not for the purpose of becoming an adept bookkeeper.
Financial accounting is the art of communicating financial information to interested users.
New terms and concepts must be memorized , and then be used often enough so that fluency is attained. Be up to speed with math, especially algebra. This class requires facility with mathematics, especially familiarity with ratios and percentages and the ability to formulate and solve simple algebraic equations. A diagnostic quiz on math skills is administered at the beginning of the course to provide information to students regarding the adequacy of their math abilities and their probability of success in the course. The professor has written this book in order to give students who are getting their first taste of accounting a book which is more conceptual, less detailed, and easier to read.