This course is the first of two required accounting courses, designed to provide MBA students with a solid foundation in accounting. The course introduces students to (1) corporate financial statements and (2) basic cost concepts and their uses. By the end of the course, students will have an improved ability to analyze the information content of financial statements and data from managerial accounting systems. The course will be a mixture of practical, conceptual, and critical approaches. From a practical viewpoint, the course will cover the relationship between accounting data and a firm's underlying operating, investing, and financing activities. At a more conceptual level, the course will focus on the principles and concepts that underlie common reporting practices. The critical approach will focus on the limitations of accounting data, arising from sensitivity to estimation methods as well as from possible manipulations.
There are three related parts of the course. The first introduces and reviews double-entry bookkeeping and the procedures that generate the balance sheet, income statement, and statement of cash flows. The second part considers in more detail measurement and disclosure issues associated with these financial statements. The third part introduces the concepts of cost economic and accounting costs and their uses in managerial decision making. (JS, CC 6/13)
Lecture: 100min/wk and Recitation: 50min/wk