Financial Management

Course Description

This course studies the reporting process of general-purpose financial statements and linkages between accounting information and management planning, decision making and control. Emphasis is given to information that enables managers to plan for and asses subsequently control over the entity operations. Students examine the structure and content of the Statement of Financial Position, Income Statement, Statement of Comprehensive Income, Statement of Cash Flows, and Statement of Stockholders’ Equity. Additionally, it includes a focused exploration of product costing systems under both traditional and non-traditional costing systems, and a more advanced treatment of the use of cost-based and other information to support cost and performance management, and budgetary control at operational, tactical, and strategic levels.

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Objectives

This course concentrates on the informational needs of those who use accounting information for economic, financial and operational management purposes. The focus is on the outcome of a reporting entity accounting system for financial decision making, as well as cost management and budgetary control. The fundamental skills developed in the course are:

• To analyze the impact accounting events have on a general-purpose set of financial statements, and introduce to students, basic concepts, procedures and analyses associated with managerial accounting.
• To perceive and quantify critical measures of financial health, strength, viability, and potential reflected in the financial statements.
• To place special emphasis on accounting reports needed by management and how they differ from reports required by investors, creditors and regulators.
• To appreciate the importance of understanding cost behaviors as a basis for making decisions and controlling performance.
• To be able to compare the operating activities of a manufacturing with those of a retail organization, and with those of a service organization.

Suggested texts

Atrill, P., & McLaney, E. (2019). Management Accounting for Decision Makers. New York, NY: Pearson Higher Ed (ISBN-13: 9781292204574).
Fraser, L. M., & Ormiston, A. (2016). Understanding Financial Statements. New York, NY: Pearson Higher Ed (ISBN-13: 9780133874037).

Enrollment is open to any undergraduate student pursuing a 4-year degree in engineering at any university or those currently holding a 4-year degree in engineering.

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