Robert N. Holt, Ph.D., CPA
The Nature of Accounting
The Basic Financial Statements
The Accounting Cycle
Cash Flow Analysis
Analysis of Financial Statements
Any non-financial manager in such areas as marketing, sales, manufacturing, or engineering who requires a thorough understanding of the fundamental aspects of financial accounting.
A working knowledge of accounting is critical to success in business. Accounting information underlies most strategic and operational decisions made by management. The purpose of this package is to supply managers with a knowledge of the objectives of accounting and to provide the tools necessary to interpret accounting information.
Financial Accounting: A Management Perspective begins with a discussion of the who, what, why, where, and how of accounting. The standard-setting process and the roles of the various parties in the development of (GAAP) are described in Chapter 1.
Chapter 2 the Basic Financial Statements, introduces the fundamental accounting equation, Assets = Liabilities + Owners’ Equity, and uses it to construct, the balance sheet first, then the income statement. The interactive problems in Chapter 2 reinforce the use of T-accounts in developing the financial statements.
In Chapter 3 students are immersed in the accounting cycle. They learn the significance of journal entries, ledger posting, and ultimately, statement creation. A variety of exercises are presented, requiring comprehension of topics such as the operating cycle (Purchase Inventory–> Incur Payables –> Sell Merchandise –> Collect Receivables), accruals, depreciation, and reconciliation of retained earnings.
Chapter 4 tackles Cash Flow, an important topic often ignored in introductory accounting texts. In this chapter, students learn the importance of accurate cash flow analysis and are provided with several tools , particularly the Coleman Cash Flow Model, for determining a firm’s sources and uses of cash.
Chapter 5 provides an introduction into financial analysis by teaching a number of ratios frequently encountered in the business community.