Learning Objectives
- Familiarity with basic financial terms.
- Develop a better understanding of the finance function and the basic principles underlying financial accounting.
- Explain the components of the balance sheet and income statements.
- Discover how to read financial statements (income statements, cash flow, balance sheet).
- Examine how to anticipate, analyze, and be prepared for financial snags.
Modules
- Financial fields and forms of business organizations
- Finance vs accounting
- Cash vs accrual accounting
- Double-entry bookkeeping
- Chart of accounts.
- Journals and ledgers.
- Transaction analysis.
- Financial statements (balance sheet, cash flow, income statement).
- Tangible vs intangible assets.
- Depreciation.
- Components of the accounting system.
- Inventory control.
- Types of costs.
- Fixed, variable, & other.
- Opportunity costs.
- Sunk costs.
- The interrelationships of the 4 financial statements.
- Analysis tools.
- How to “interpret” & “analyze” financial statements.
- Evaluating financial performance.
- Why budgeting?
- Fundamentals of budgeting
- Variance analysis
- Profitability ratio
- Turnover ratios
- Net present value (NPV)
- Internal rate of return (IRR)
- Profitability index (PI)
- The capital budgeting decision
- Normal and non-normal cash flow streams
- Discounted cash flow (DCF) techniques
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