Financial Accounting 1

Catalog description

This course provides an introduction to the principles of financial accounting. In doing so, it covers the preparation and use of financial accounting reports in an economic business environment. When you have completed this course, you should understand: (1) how to read, prepare and analyze financial accounting statements and related documents, (2) how to use those reports to make business decisions, and (3) how business transactions affect those financial statements. Achievement of these goals requires an understanding of the basic principles that underlie accrual accounting, as well as an appreciation of the amount of judgment required in applying these principles. An understanding of financial accounting is essential to anyone who will use financial information as an input to economic decision-making. Specific objectives include: 1. Recognizing accounting’s role in business and government; 2. Identifying the basic financial statements, their interrelationships and the information they provide to decision makers; 3. Understanding basic vocabulary, definitions, measurement methods, and double-entry procedures associated with accounting and financial management; 4. Understanding the difference between cash flow and accrual accounting; and 5. Becoming familiar with common analytical methods to measure business financial performance.