Sep 19, 2021
ACC 191 - Financial Analysis Credits: 3
Lecture Hours: 3
Lab Hours: 0
Practicum Hours: 0
Work Experience: 0
Course Type: Voc/Tech
An analytical study of accounting information and financial statements with project orientation approach. The course focuses on financial ratio analysis and trend analysis, providing written discussion within a Capstone project that analyzes a currently publicly traded corporation.
Prerequisite: Successful completion of ACC 132 with a grade of “C” or above
- Evaluate the basic financial goals of a firm or business.
- Understand what accounting is and why it is important.
- Analyze basic financial statement ratios.
- Assess ratio, trend, and common-size analysis.
- Discuss the purpose of financial analysis.
- Assess the use of Balance Sheet in determining company net worth.
- Understand how the balance sheet is organized.
- Identify individual components of the balance sheet.
- Understand the similarities and differences between U.S. GAAP and IFRS among asset items.
- Explain how debt and equity affect financial risk.
- Interpret liquidity and solvency ratios.
- Examine trend and common-size balance sheets.
- Critique company’s profitability through Income Statement.
- Understand how the multi-step income statement is organized.
- Interpret trends in income statement revenues, expenses, subtotals, and totals.
- Understand the accrual basis for accounting, revenue recognition, and the matching principle.
- Interpret profitability ratios.
- Examine trend and common-size statements.
- Defend changes to Stockholders’ Equity.
- Explain how the Stockholders’ Equity is organized.
- Understand typical items that affect retained earnings.
- Summarize common and preferred stock.
- Evaluate solvency, profitability, and investment performance.
- Evaluate changes to cash as show on the Statement of Cash Flows.
- Understand how the Statement of Cash Flows is organized.
- Identify operating, investing, and financing activities.
- Understand direct and indirect methods for computing operating cash flows.
- Interpret cash flow ratios.
- Examine trend and common-size statements of cash flows.
- Inspect specific accounts.
- Understand the nature of cash and cash equivalents.
- Compare how companies report short-term and long-term investments.
- Understand the relationship and calculation between accounts receivable and the accounting for bad debts.
- Understand accounting for property, plant, and equipment and depreciation.
- Compare how companies account for current and noncurrent liabilities.
- Critique analysis of current corporation within a written or verbal Capstone Project.
- Consult current Form 10-K filed with the SEC for business specific information.
- Review Discussion & Analysis section of Form 10-K, identifying current and future opportunities within social, political, economic, technological, and / or other areas.
- Evaluate the Balance Sheet assets, liabilities, and equity sections.
- Compare Balance Sheet information for business over time and information between enterprises.
- Prepare trend analysis and common-size balance sheet with and without using condensed income statement.
- Comment on trends in the growth of assets, liabilities, and stockholders’ equity, and overall financial risk.
- Review the condensed, trend, and common-size income statement.
- Comment on trends in the growth of revenues, expenses, and net income, as well as overall productivity.
- Prepare the trend analysis and common-size statement using the amounts from the condensed statement of cash flows.
- Summarize your analysis of the statement of cash flows. Comment on trends in the growth of operating, investing, and financing activities.
- Compute a variety of ratios for profitability, efficiency, liquidity, solvency and investment.
- Explain overall profitability, efficiency, liquidity, and solvency of the company.
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