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 &endash; 6:20 pm
Module I
ACCOUNTING
 
Michele Daley
Assistant Professor of Management
352 Baker Building
(713) 348-5391
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 role of accounting in business
  • About the financial reporting process
  • About the principal financial statements - how to prepare and interpret the numbers
  • How the financial statements are inter-related
  • Computation of key financial ratios that help evaluate the profitability, liquidity, and efficiency of the company
  • 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. We will also work through problems and real annual reports to help reinforce the material discussed.
 
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, Seventh Edition, 1999). More advanced texts are White, Sondhi and Fried, The Analysis and Use of Financial Statements (Wiley, 1998) and Revsine, Collins, and Johnson, Financial Reporting and Analysis (Prentice Hall 1999).
 
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 of financial statements and is due at the beginning of class on September 14. The second problem set will focus on interpretation of financial statements and will be completed during the class period on September 21.
 
 
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