This course is intended to provide managers and potential managers an overview of the subject of accounting. Students will learn financial and managerial concepts with an emphasis on management control in not-for-profit organizations. The course begins with the characteristics of not-for-profit organizations and the management control function. It then examines the nature and purpose of financial statements and introduces fund accounting. The course concludes with coverage of full cost accounting, the measurement and use of differential costs, and pricing decisions.
Accounting 250: Accounting for Managers focuses primarily on how to provide managers with the management information they need for making informed decisions. It also introduces the role accounting plays in providing reports to external bodies such as the federal government, banks, and other lenders of money. This course makes a distinction between external and internal reports. External reports are for information users who are external to the organization. Large corporations must prepare and file such reports for governmental and other organizations such as stock markets. An important feature of external reports is that they have a similar format, and those who prepare these reports must follow specific rules when compiling them. Internal reports, on the other hand, help managers make informed decisions in areas such as planning and controlling the organization's resources. These reports are prepared according to the managers' needs, and there are no set rules concerning their preparation. However, there is a set of principles that should be followed to ensure that these reports provide meaningful information.
After completing this course, you will be able to analyze and prepare a set of basic financial statements. You will begin by examining the accounting cycle of a sole proprietorship in the service sector, learning how financial transactions are processed through the accounting information system each accounting period. You will then examine accounting for merchandise operations as well as inventory and cost of sales. Special issues regarding balance sheet components are reviewed in detail, including internal control and cash accounts receivable property, plant and equipment assets short- and long-term liabilities. Financial accounting issues specific to the corporate form of organization are examined, followed by an introduction to the statement of cash flows. Generally accepted accounting principles and ethics are examined throughout the course as they relate to each area. Finally, you will learn to apply basic tools for analyzing financial statements.