The Language of Business: Financial Accounting and Decision-Making

Catalog description

Financial accounting measures economic activity to support decision-making. Financial statements are a central output of this process and a key component of firms' financial reporting. The goal of this course is not to train you to become an accountant, but to help you become an informed user of financial statement information. Students will develop familiarity with core accounting terminology, financial statements, and financial analysis. We will focus on understanding the mapping between underlying economic events and financial statements, and how this mapping shapes inferences about future profitability, cash flows, and risk. The skills developed in this course are valuable across careers in corporate management, finance, investing, consulting, entrepreneurship, venture capital, and public policy. By understanding financial reporting and the broader reporting environment, students will be better equipped to critically evaluate firms' disclosures and make informed business and economic decisions.