Ernst and Young Professor of Accounting
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?
- What Is the Goal of Accounting?
- Why Accounting Is Common Sense That Really Comes Naturally to All of Us
- What Are the Primary Financial Statements and How Do They Help Me Understand a Business?
- What Are Debits, Credits, Journal Entries, T-Accounts, and Other Bookkeeping Tools?
- Module One Review
Module 2: The Accounting Cycle and Bookkeeping: Foundational Tools for a Deeper Understanding
- Understanding the Accounting Cycle From Individual Transactions to a Set of Financial Statements
- Accounting Cycle Comprehensive
Module 3: Revenue, Accounts Receivable, Inventory, and Cost of Goods Sold
- Revenue Recognition
- Bad Debt Expense and Allowance for Doubtful Accounts
- Inventory Accounting and Cost of Goods Sold Accounting, Including LIFO/FIFO Cost Flow Assumptions
- Module Three Review
Module 4: Long-Lived Assets
- Long-Lived Tangible Assets Depreciation and Changes in Estimates
- Gains and Losses
- Intangible Assets and Amortization
- Goodwill Accounting
- Impairments
- Long-Lived Assets
Module 5: Liabilities and Stockholders’ Equity
- Standard and Contingent Liabilities
- Deferred Revenue
- Equity Accounting
- Treasury Stock
- Liabilities and Stockholders' Equity
Module 6: Cash Flow Statements
- Cash Flow Statements
- Indirect Cash Flow Statements
- Changes in Working Capital Approach to Cash Flow Statements
- Cash Flow Statements Review
Module 7: Ratios and Course End Assessment
- Ratios: How to Make Them, How to Use Them, and How to Think About Them
- Ratios
- Cumulative Final Exam
Grading Policy
To pass this course and earn the certificate, learners must pass each module quiz and achieve an overall course grade of 80% or higher. There are seven graded module quizzes worth 10% each 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
