ACCT 605 Business Accounting

This course focuses on how business use corporate accounting information for making business decisions. Major topics include the use of financial statements and accounting information to determine profitability and financial performance, risk, differences in structure and business models, and the relationship of cash flow statements to the balance sheet and income statements, and the use of ratios to assess the quality of a company’s accounting information, and the use of internal operating metrics.

Learning Outcomes:

  • Understand how businesses utilize corporate accounting information for decision making.
  • Define and describe basic accounting terms; fixed costs, variable costs, revenue, profit, break-even, working capital.
  • Explain the purpose of budgets and cash flow forecasts; advantages and disadvantages.
  • Explain the role, purpose and limitations of final accounts; balance sheet and profit and loss statement.
  • Explain the use of ratios to analyze business performance; gearing, current ratio and Return on Capital Employed (ROCE) in relation to risk, liquidity and profitability.