Pathways to Higher Education Project   Center for Advancement of Postgraduate  Studies and Research in Engineering Sciences, Faculty of Engineering - Cairo University (CAPSCU)

Accounting for Management and Decision Making

Prof. Dr. Ahmed Farghally M. Hassan

 

Course Objective   The main objectives of this course are to: Introduce trainees into accounting concepts, methodology, and procedures. Enable the trainees to understand the financial statements. Define the net income, financial position, and stockholders, equity. Explain the use of accounting information in evaluating performance of the business organization

 

Introduction   Accounting aims at providing the decision makers with the financial information needed to take their decisions.   Decisions, like investment, introducing a new product, borrowing money from banks, and developing a new technology in an industry depend on the accounting information.   This course discusses the different accounting terms, methodology and procedures to help management to take decisions.   After completing this course, the trainee should be able to:   ·        Understand the accounting terms. ·        Prepare the financial statements. ·        Compute the net income and the equity of the project. ·        Use the accounting information in evaluating the project performance.

 

 

Table of Contents

            Acknowledgement and Foreword

Chapter 1: Accounting Terms and Assumptions 1.1 Accounting Definition & Objectives 1.2 Financial Statements 1.3 A Starting Point: Statement of Financial Position 1.4 The Concept of the Business Entity 1.5 Assets 1.6 The Cost Principle 1.7 The Going Concern Assumption 1.8 The Objectivity Principle 1.9 The Stable – Dollar Assumption 1.10 Liabilities 1.11 Owners' Equity 1.12 Increases in Owners' Equity

Chapter 2: Accounting Methodology 2.1 The Accounting Equation 2.2 The Effects of Business Transactions: An Illustration 2.3 The Business Entity 2.4 Income Statement 2.5 Statement of Cash Flows 2.6 Revenue 2.7 Cash Effects 2.8 Expenses

Chapter 3: Income Determination 3.1 The Matching Principle: When to Record Expenses 3.2 Cash Effects 3.3 Expenditures Benefiting More Than One Accounting Period 3.4 Case in Point 3.5 The Accrual Basis of Accounting 3.6 Cash in Point 3.7 Debit and Credit Rules for Revenue and Expenses 3.8 Dividends

Chapter 4: Accounting for Depreciation 4.1 The Concept of Depreciation 4.2 What Is Depreciation? 4.3 Depreciation Is Only an Estimate 4.4 Cash Effects 4.5 Accounting for Sales Taxes

Chapter 5: Evaluating Business Performance 5.1 Evaluating the Performance of a Merchandising Company 5.2 The Cash Budget as a Control Device

Chapter 6: Cost Accounting 6.1 Accounting for Manufacturing Operations 6.2 Product Costs vs. Period Costs 6.3 Product Costs and the Matching Principle 6.4 Cash Effects 6.5 Inventories of a Manufacturing Business 6.6 You as the Chief Financial Officer 6.7 The Need for "Per – Unit Cost Data" 6.8 Determining the Cost of Finished Goods Manufactured 6.9 Financial Statements of a Manufacturing Company