Financial Strategy Fundamentals is an introductory course in financial statement strategies for business. The purpose of the course is to understand sufficient amount of accounting knowledge and skills to evaluate an enterprises' financial position and its operating, investing and financing activities. The course is designed to meet the needs of those students who are preparing for sales, management, and marketing orientated careers. It is also applicable for students from other academic disciplines who recognize that the ability to use and interpret financial information is essential to today's business world.
Students will study the nature of assets, liabilities and owner's equity while learning to use reported financial information for purposes of making financial decisions about a company. Students will examine the procedures and systems to accumulate, analyze, measure and record financial transactions; use that information to prepare financial statements; and then communicate a business entity's results of operations and financial position to users of financial information.
Student Learning Outcomes:
- Differentiate the principal activities of business firms and how they relate to the principal financial statements.
- Prepare financial statements in an appropriate format, including the income statement, balance sheet, statement of cash flows, and statement of shareholder's equity.
- Identify the types of information provided by the principal financial statements and how firms might use this information in managing and evaluating a business.
- Analyze and interpret financial statements using financial analysis techniques, including horizontal, vertical and ratio analysis.
- Define and identify financial accounting terminology.
- Describe the differences between cash basis and accrual basis of income revenue recognition.
- Calculate and interpret financial ratios in order to compare a firm to its competitors and to evaluate changes in ratios over time.
- Identify and analyze a firm¿s overall profitability using ROI, profit margin, and asset turnover ratios.
- Analyze and calculate financial leverage on a firm's investment return.
- Identify and analyze a firm's short-term liquidity risk and long-term solvency risk.
Please see eServices for section availability and current pre-req/test score requirements for this course.