Rice
University
Jones Graduate School of Management
Entrepreneurial Management for Science and Engineering
MGMT 750 / CHEM 750 / MSCI 750
Tues/Thurs Keck Hall 101, 5:00 pm – 6:20 pm
ACCOUNTING MODULE
Michele Daley
Associate Director
of Academic Advising
Lecturer in Management
Ley Student Center
(713) 348-4060
brisbane@rice.edu
Synopsis:
Accounting information is a vital input in the decision making process of managers, investors and creditors. This module focuses on the preparation and interpretation of the basic financial statements, and the computation of key ratios that are often used in evaluating the performance of companies and managers. The module also highlights the effects of managerial decisions on financial reports and financial ratios.
Objectives:
In this module you will learn:
About the financial reporting process
About the principal financial statements - how they are prepared and how to interpret the numbers contained in them
How the financial statements are inter-related
Computation of key financial ratios that are used to evaluate company performance
How managerial decisions affect the financial statements and the corresponding ratios
Method of Instruction:
The material will be presented using a mixture of lecture and class discussions of important concepts. The 2000 Annual Report of Corvis Corporation will be used to illustrate many concepts.
Required Material:
Required readings, consisting of extracts from textbooks and business press articles will be distributed in class.
Supplemental Material:
There are many good textbooks on accounting and financial management that are excellent additional resources for this material. A suggested introductory text is Horngren, Sundem and Elliott, Introduction to Financial Accounting (Prentice Hall, Eighth Edition, 2002). More advanced texts are White, Sondhi and Fried, The Analysis and Use of Financial Statements (Wiley, Second Edition, 1998) and Revsine, Collins, and Johnson, Financial Reporting and Analysis (Prentice Hall, Second Edition, 2002).
Assessment:
The grade for this module will be a combination of class discussion and two problem sets. The first problem set will focus on preparation and interpretation of financial statements and will be completed during the class period on October 25. The second problem set will be handed out on October 23 and will be due at the beginning of class on Tuesday, October 30