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The objective of this course is to enable the students to understand the language of business called accounting. Reported financial statements consist of three components: Balance Sheet, Income Statement and Cash Flow Statement. Through this course, the students will be able to understand how these statements are being prepared, their significance in the context of different business decisions and future business planning.

Course Content:

1. Information asymmetry and users of financial reports

2. What is Accounting and its significance in business environment

3. Forms of Business Organization

4. GAAP: Concepts, Conventions, Assumptions

5. Accounting Equation: Tool to understand business decisions

(Balance Sheet: Current assets, Long-term assets, Current liabilities, Long-term liabilities and Stockholders’ equity )

6. The Income Statement: Gross profit, Operating income, Net income, Individual items

7. Fixed Assets and Depreciation Accounting

8. Effect of Business Transactions on the financial statements, Measuring Business Income and Preparation of financial statements

9. Cash Flow Statement

(Financing Decisions/Investment Decisions/Operating Decisions )

10. Interrelationship among components of the Financial Report

Group Work:

Select a listed company

Comment on the business decisions taken by the company

Evaluation:

1. Quiz : 40%

2. Group Work : 20%

2. End-term : 40%

Books for Reference:

1. Financial Accounting – A Managerial Perspective by R. Narayanaswamy
2. Financial Accounting by Ashok Banerjee
3. Financial Accounting for Business Managers by Asish K. Bhattacharya
4. Financial Accounting for Management by Ambrish Gupta
5. Financial Accounting –Reporting and Analysis by Stice and Stice
6. Class Notes
Created By: Debasis Mohanty on 06/15/2011 at 08:55 AM
Category: PGP-I Doctype: Document