day 1 gong 09 spring v3 - ACCY301 MeasurementandDisclosure...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCY 301 Measurement and Disclosure Dr. James Gong
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Agenda n Course introduction – 20 min n Half of you introduce yourselves – 15 min n Syllabus details – 20 min n Half of you introduce yourselves – 15 min n Video time – 25 min
Background image of page 2
Course Introduction  n Why accounting? 
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Course Introduction  n Why accounting?  n According to finance theory, firm valuation is  only dependent upon cash flow n Why do we need accrual accounting and report  accounts receivable, inventory, accounts  payable, etc?
Background image of page 4
Cash Flow vs. Accruals (I) Cash flow in year (t+1) Cash flow in year t 0.73 0.67 Change in AR in year t 0.52 0.54 Change in inventory in year t 0.30 0.29 Change in AP in year t -0.30 -0.50 Change in other accruals in year t 0.42 0.07 Depreciation in year t 0.15 0.08 R2 0.54  0.33 0.56
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash Flow vs. Accruals (II) Cash flow in year (t+1) Cash flow in year t 0.73 0.49 Earnings before depreciation in year t 0.69 0.26 Change in AR in year t 0.40 Change in inventory in year t 0.10 Change in AP in year t -0.34 Change in other accruals in year t 0.02 Depreciation in year t 0.02 R2 0.54 0.51 0.57
Background image of page 6
Cash Flow vs. Accruals (III) n CEO/CFO responses to the question: Rank the three most 
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 24

day 1 gong 09 spring v3 - ACCY301 MeasurementandDisclosure...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online