Description
The concepts and financial analysis techniques previously learned in Accounting Principles I will be applied to understanding concepts such as Income Statement, Retained Earnings, and Cash Flows. We will also study different tools and measures used in Financial Statement Analysis and learn how globalization influences Financial Accounting. The second half of the course will be devoted to studying Management or Cost Accounting.
Type Subject
Tercer - Obligatoria
Semester
First
Course
2
Credits
6.00

Titular Professors

Mayra Mas Echevarria
Professor

Professors

Mayra Mas Echevarria
Previous Knowledge
Objectives

Students will be instructed and assisted in understanding:

Learn to accurately report the earnings of the business by differentiating between usual and non-recurring events in the Income Statement.

Learn to prepare a Statement of Cash Flows and fully understand the differences between cash and accrual accounting.

Learn the basic tools to perform a financial statement analysis and be able to obtain meaningful information for decision making.

Understand how accounting is influenced by doing business in today’s global environment.

Understand the basic concepts of Cost Accounting.

Understand the different stages of a product in the value chain and how to minimize cost and cost-volume-profit relationships.

Perform incremental analysis on various alternatives to choose the most profitable outcome.

Understand the importance of responsibility reporting in the business structure.

Contents

Below you can find the main topics that will be covered. The order in which they are covered will vary.

Topic 1 Income and Changes in Retained Earnings

Topic 2 Statement of Cash Flows

Topic 3 Financial Statement Analysis

Topic 4 Global Business and Accounting

Topic 5 Introduction to Management Accounting

Topic 6 Financial Statement Group Project Presentation

Topic 7 Job Order Cost Systems and Process Costing

Topic 8 Costing and the Value Chain

Topic 9 Cost-Volume-Profit Analysis

Topic 10 Incremental Analysis

Topic 11 Responsibility Accounting and Transfer Pricing

Methodology

The class sessions will consist of lecture time and solving problems.

The first session will be devoted to solving the homework cases assigned in the previous session and clearing doubts. The second session will be lecture time and solving cases based on the lecture material thus preparing the students for the homework.

Evaluation

The course grade will be based on the following point breakdown:

Attendance and participation: 30%

Group presentation: 15%

Midterm exam: 25%

Final exam: cases 30%

Evaluation Criteria
Basic Bibliography

Required Textbook

Financial and Managerial Accounting, by Meigs, Williams, Haka and Bettner, International Edition, McGraw-Hill 17th Edition. Any edition from 14th to 17th may be used.

Additional Material