Accounting, Decision-Making and Financial Communication

Goals

• Understand the content of and relationships between financial statements (income statement, balance sheet, and statement of cash flows
• Understand how to use financial statements to evaluate the financial performance of an organization
• Understand how profit margin, asset utilization, and financial leverage are used by managers to maximize the return to investors
• Understand discounted cash flow (DCF) techniques and their application to financial decision making
• Understand the budgeting process, including performance evaluation
• Understand cost behavior and its impact on management decisions
• Understand the need for and the methods used to allocate overhead
• Communicate and to question financial information effectively