Day 2-Ch 2-Part 1-8.31.11

Day 2-Ch 2-Part 1-8.31.11 - Business Management 201 Day 2...

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Unformatted text preview: Business Management 201 Day 2 Chapter 2: Part 1—Financial Statements August 31, 2011 Day 2 Agenda 1) Blackboard Email Group 2) Packets/Reading Quiz Ch 2—Due Friday at 8:00AM 3) Book Assignment List/Google Doc—Due Friday, September 9 at 11:59 PM 4) TA Hours/Review Sessions (Location TBD) 5) TAs Nicole Clement & Devin Dickson Class Email: [email protected] 6) Chapter 2: Part 1 Discussion—Financial Statements Day Time Purpose Tuesday 9:00 AM-10:00 AM or 10:00 AM-11:00 AM Open ?s Tuesday 7:00 PM-8:00 PM POW Thursday 10:00 AM-11:00 AM or 11:00 AM-12:00 PM Open ?s Thursday 5:00 PM-6:00 PM POW Chapter 2 Mind Map Learning Objective: – Develop an understanding of how to read simple financial statements – Identify the fiction inherent in financial statements – Demonstrate an ability to use standard form to create financial statements – Analyze financial statements using ratios Chapter 2 Mind Map Key Words/Concepts: – Income Statement, Balance Sheet, Cash Flow Statement – Accrual Accounting, Historical Cost, Matching Principle – Earnings Management – Free Cash Flow (FCF) – Retained Earnings Evolution – Ratio Definitions/Interpretation (many) Role of Accounting in Finance Understanding accounting is essential to understanding finance. Unfortunately, accounting has its own vocabulary and rules which must be followed. Two Standardization Benefits : 1) Facilitates Analysis 2) Clarifies Communication Accrual vs. Cash Accounting Why Use Accrual Accounting? Accrual accounting is a better construct for understanding the true operations of an enterprise. However, the standard accounting principles create an environment where a simplistic reading of the standard financial statements is almost always misleading. Misleading Financial...
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This note was uploaded on 01/04/2012 for the course BUSM 201 taught by Professor Jennlarson during the Fall '11 term at BYU.

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Day 2-Ch 2-Part 1-8.31.11 - Business Management 201 Day 2...

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