Development of a framework of concepts underlying the preparation of corporate financial statements which are useful to investors, economists, the general public, and other interested external parties. The balance sheet and income statement as conventionally reported by American corporations are studied as to methodology for their preparation, their interpretation, and their strengths and limitations. Prerequisite: MGMT 0107. (Formerly MGMT 0104)

Introduces the basic financial accounting concepts, principles, and practices applied to the preparation and interpretation of the major financial statements. Included is complete coverage of the accounting cycle which is designed to satisfy the information requirements of external decision makers. Topics covered are asset valuation, liability measurement, income determination and equity activities. Integrated throughout is a discussion of ethical issues and considerations.