JRE300 — Fundamentals of Accounting and Finance

Course discusses managerial and financial accounting, as well as corporate finance. To be honest, a pretty bullshit course. Followed in spirit by ECE472 — Engineering Economic Analysis and Entrepreneurship.

Key concepts

Accounting

• Financial reporting standards
• Business activity (financing, investing, operating)
• Financial statement
  • Income statement
    • Revenues
    • Expenses
    • Net income/earnings
  • Statement of retained earnings
  • Balance sheet
    • Assets
    • Liabilities
    • Shareholders’ equity
  • Cash flow statement
• Accounting qualitative characteristics
• Accounting assumptions
  • Economic entity assumption
  • Time period assumption
  • Monetary unit assumption
  • Historical cost principle
  • Going concern assumption
• Ratio analysis
  • Liquidity ratios
    • Working capital
    • Current ratio
    • Inventory turnover
    • Days in inventory
    • Receivables turnover
    • Average collection period
    • Cash current debt coverage
  • Solvency ratios
    • Debt to total assets
    • Free cash flow
    • Times interest earned
    • Cash total debt coverage
  • Profitability ratios
    • Profit margin
    • Return on common shareholders’ equity
    • Earnings per share (EPS)
    • Price-earnings (PE) ratio
    • Payout ratio
    • Dividend yield
• Accounting information system
  • Accounting equation
  • Accounting cycle
• Inventory system

Finance

• Interest rate (basis points)
• Time value of money
• Financial instruments
  • Annuities
  • Corporate debt
    • Mortgage
    • Bonds
  • Equity
    • Shares
    • Dividends
• Stock market
• Retention ratio
• Profit margin
• Asset turnover
• Financial leverage