Professor
Accounting for Decision Making
What You'll Learn
- Prepare key financial statements, such as balance sheets and income statements.
- Gain an understanding of the steps and purpose of each step in the accounting cycle.
- Explain how accounting relates to economic reality.
7 Modules
28 Hours
4 hrs per module (approx.)
Rating
About Accounting for Decision Making
Through this course, you will start by addressing the two “big questions” of accounting: “What do I have?” and “How did I do over time?” You will see how the two key financial statements – the balance sheet and the income statement - are designed to answer these questions and then move on to consider how individual transactions aggregate to make up these financial statements. After developing a broad understanding of accounting and financial statements, you will begin to develop a more nuanced understanding of individual components of doing business, such as making a sale or building inventory. By considering many of the more common actions of a company, you will build your understanding of accounting, and explore these concepts by applying them across various types of transactions. Once you understand these individual concepts better, you will be ready to return to the overall financial statements and use them as informational tools, including building ratios.
You can do this course standalone or to qualify for the residential component of the Finance for Strategic Decision-Making Executive Education program. For more information, see the FAQ below.
Skills You'll Gain
- Accounting
- Accrual Accounting
- Basic Accounting Principles
- Budgeting
- Cost Accounting
- Decision Making
- Financial Analysis
What You'll Earn
- Certificate of Completion:
- Certificates of completion acknowledge knowledge acquired upon completion of a non-credit course or program.
Welcome Message
Welcome to Accounting for Decision Making, an online course that introduces the structure and logic of accounting used to inform business decisions. Inspired by a foundational MBA accounting course, this course emphasizes understanding transactions, financial statements, and judgment rather than technical nuance. You will build confidence in interpreting accounting information and connecting it to real economic activity in a flexible, mastery-based online environment.
This abbreviated syllabus description was created with the help of AI tools and reviewed by staff. The full syllabus is available to those who enroll in the course.
Course Schedule
Module 1: Why Do We Have Accounting and How Can You Make it Work for You?
- Video: Welcome
- Reading: The Structure of the Course
- Reading: Course Syllabus
- Reading: Course Guidelines
- Reading: Help us learn more about you!
- Reading: Introduction and Overview of Lesson One
- Video: Why Do We Have Accounting?
- Discussion Prompt: Reconciling the goal of accounting with patterns of use
- Video: What is Accrual Accounting?
- Video: What is a Balance Sheet?
- Video: What is an Income Statement?
- Video: Comparing the Two Statements
- Graded Assignment: Overview Material
- Reading: Introduction and Overview of Lesson Two
- Video: Transactions to Financial Statements
- Video: Journal Entries
- Graded Assignment: Transactions and Journal Entries
- Video: T-Accounts
- Video: Using T-Accounts for Account Analysis
- Graded Assignment: T-Accounts and Other Ways to Post
- Reading: Notice for Auditing Learners: Assignment Submission
- Reading: Transactions for quiz
- Graded: Module One Test
Module 2: The Accounting Cycle and Bookkeeping: Foundational Tools for a Deeper Understanding
- Reading: Introduction and Overview of Lesson Three
- Video: An Overview of the Accounting Cycle
- Video: Comprehensive Example Set Up
- Graded Assignment: Quiz on Introduction to the Accounting Cycle
- Reading: Introduction and Overview of Lesson Four
- Video: Recording Externally Prompted Transactions
- Graded Assignment: Transaction Entries
- Reading: Introduction and Overview of Lesson Five
- Video: Recording Adjusting Journal Entries
- Video: Recording Closing Journal Entries
- Graded Assignment: Adjusting and Closing Journal Entries
- Reading: Introduction and Overview of Lesson Six
- Video: Making an Income Statement
- Video: Making a Balance Sheet
- Graded Assignment: Quiz Financial Statements
- Discussion Prompt: Understanding the process for using financial statements
- Reading: Instructions for Quiz
- Reading: Transactions to be Used for the Quiz
- Graded: Accounting Cycle Comprehensive Quiz
Module 3: Revenue, Accounts Receivable, Inventory and Cost of Goods Sold
- Reading: Introduction and Overview of Lesson Seven
- Video: The Economics of Value Creation
- Video: Accounting Guidance on Revenue Recognition
- Video: Bookkeeping for Revenue Recognition
- Graded Assignment: Revenue
- Video: Accounting for the Allowance for Doubtful Accounts and the Bad Debt Expense
- Graded Assignment: Allowance for Doubtful Accounts
- Discussion Prompt: Explaining the challenge of clarifying revenue recognition criteria
- Reading: Introduction and Overview of Lesson Eight
- Video: What goes into Inventory and Cost of Goods Sold
- Video: Which One Did We Sell? Inventory Cost Flow Assumptions
- Video: Bookkeeping for Inventory Transactions
- Graded Assignment: Inventory and Cost of Goods Sold
- Discussion Prompt: Defining an acceptable range of judgement for accounting classification
- Graded: Module Three Test
Module 4: Long-Lived Assets
- Reading: Introduction and Overview of Lesson Nine
- Video: How Do We Think About Long Lived Assets?
- Video: Basic Bookkeeping for Depreciation
- Video: Changing Depreciation Estimates
- Graded Assignment: Basics of Depreciation
- Discussion Prompt: Discussing the usefulness of creating standard lives and salvage values
- Reading: Introduction and Overview of Lesson Ten
- Video: Selling an Asset
- Video: When an Asset is used to make another Asset
- Graded Assignment: More Advanced Depreciation Topics
- Discussion Prompt: Adjusting Estimates Going Forward
- Reading: Introduction and Overview of Lesson Eleven
- Video: How Do We Think About Non-Physical Assets?
- Video: Bookkeeping for Amortization and Intangibles
- Discussion Prompt: The Trouble with Understanding Intangibles
- Graded Assignment: Intangible Assets
- Reading: Introduction and Overview for Lesson Twelve
- Video: What is Goodwill?
- Video: Calculating Goodwill
- Graded Assignment: Goodwill
- Discussion Prompt: So is Goodwill Really an Asset
- Reading: Introduction and Overview of Lesson Thirteen
- Video: Asset Impairments
- Graded Assignment: Impairments
- Graded: Quiz for Long Lived Assets
Module 5: Liabilities and Stockholders Equity
- Reading: Introduction and Overview Lesson Fourteen
- Video: An Overview of Liabilities
- Video: Deferred Revenue
- Graded Assignment: Basic Liabilities, including Deferred Revenue
- Reading: Introduction and Overview Lesson Fifteen
- Video: What is a Contingent Liability?
- Video: Bookkeeping for Contingent Liabilities
- Discussion Prompt: Judgement in Contingent Liabilities
- Graded Assignment: Contingent Liabilities
- Reading: Introduction and Overview Lesson Sixteen
- Video: The Economics of Interacting with Owners
- Video: Basic Bookkeeping for Equity
- Graded Assignment: Basic Equity Transactions
- Reading: Introduction and Overview for Lesson Seventeen
- Video: Treasury Stock
- Graded Assignment: Treasury Stock
- Graded: Liabilities and Stockholders Equity
Module 6: Cash Flow Statements
- Reading: Introduction and Overview of Lesson Eighteen
- Video: Why Do We Have Cash Flow Statements?
- Video: Putting Cash into Categories
- Video: Direct Cash Flow Example
- Graded Assignment: Introduction to Cash Flows and Direct Cash Flow Statements
- Reading: Introduction and Overview of Lesson Nineteen
- Video: What is an Indirect Cash Flow Statement
- Video: Indirect Cash Flow Example
- Discussion Prompt: Direct vs. Indirect Cash Flow Statements
- Graded Assignment: Indirect Cash Flow Statements
- Reading: Introduction and Overview Lesson Twenty
- Video: Changes in Working Capital
- Video: Indirect with Changes in Working Capital Example
- Discussion Prompt: What Information is on a Cash Flow Statement
- Discussion Prompt: Changes in Working Capital Shortcut
- Graded Assignment: Changes in Working Capital Approach
Module 7: Ratios and Course End Assessment
- Reading: Introduction and Overview of Session Twenty One
- Video: What is a Ratio?
- Video: Warnings About Ratios
- Graded Assignment: Introduction to Ratios
- Reading: Introduction and Overview of Lesson Twenty Two
- Video: Build Your Own Ratios
- Video: Stock Over Stock
- Video: Flow Over Flow
- Video: Stock and Flow Ratios
- Graded Assignment: Build Your Own Ratios
- Reading: Comprehensive Evaluation
- Video: Congratulations
- Video: Greg Miller and Gautam Kaul
- Reading: Go further
- Reading: Post-Course Survey
- Reading: Keep Learning with Michigan Online
- Graded: Ratios
- Graded: Cumulative Final Exam
Grading Policy
Each module ends with a required graded quiz. Learners must pass all quizzes to earn a certificate. There are seven module quizzes worth a total of 70% of your final grade and a cumulative final exam worth 30%.
Course content developed by U-M faculty and managed by the university. Faculty titles and affiliations are updated periodically.
Intermediate Level
Some related experience required
