Minor in Finance

An introduction to the accounting model, the measurement and classification of data and terminology essential to effective interpretation and use of financial statements, balance sheets and income statements. Underlying concepts are stressed and they are made concrete with illustrations. While mechanical and procedural details are explored, measurement and communication of data to external parties are emphasized.

This course introduces students to the generation of cost data for the preparation of proper, representative financial statements, and for optimal planning and control of routine operations and long range organizational goals. It focuses on the uses of formal cost accounting systems and quantitative techniques to make managerial decisions. Topics include: direct absorption income statements, job and process costing, allocation and proration, pro-forma and capital budgeting.

This course examines the financial needs of corporations and the range of mechanisms available to meet them. The key concept of the time value of money is studied and applied to several decision models in capital budgeting and investment valuation. Other basic theories of Finance examined include risk versus return, modern portfolio theory, and basic financial statement analysis. Different financial requirements are considered with some emphasis in comparing internal and external sources of funds, their relative availability, and costs. Other topics considered include capital structure and dividend policy.