An introduction to financial statement analysis which builds on the fundamentals of accounting, including understanding the accounting equation and its application in building the balance sheet, the income statement and the statement of cash flows. Basic accounting concepts, accounting principles and the audit report are presented. Students work in teams to analyze corporate financial statements. This course also covers the relationship of economic value to accounting measurement is explored together with factors influencing management choices among competing valuation principles.
Theory is applied to the valuation of the asset, liability and owners' equity accounts.
Emphasizes the heavy reliance on estimates in constructing financial statements and how management can use such estimates to strategically manage its reporting responsibilities. Cost finding and cost measurement techniques are evaluated in relation to accounting systems designed to measure data for the use within the business entity. It also incorporates the fundamentals of the C programming language as well as hardware and software components of a computer system. Topics from systems analysis, file and database systems, and telecommunications are covered as time permits. Teams of four analyze the industry in detail.