Course Number: 90-724
This course provides an overview of how managers, investors, creditors, donors, foundations, and other parties use financial information to make decisions in organizations. It includes tools of both financial and managerial accounting.
Unit 1 focuses on the financial reports and analysis of the financial position and the operating results of business organizations, including several techniques such as common sizing, trend analysis and ratio analysis, which are useful to analyze an organization. Unit 2 looks at the financial reports of organizations in the private (non-government) not-for-profit sector, comparing and contrasting the reporting and analysis of these NPOs with that of businesses, and discuss the needs for different information and performance measures in the private not-for-profits. Unit 3 looks at organizations not as an outsider (investor, donor, creditor), but instead as a manager inside the organization, analyzing how to use several financial tools available to managers such as budgets, decision making tools, and break even analysis, and how to predict or measure the financial impact of different alternatives. This is often referred to as managerial accounting.