Maricopa Community Colleges  ACC209   19966-20086 
Official Course Description: MCCCD Approval: 07/22/08
ACC209 19966-20086 L+L 3 Credit(s) 3 Period(s)
Financial Analysis for Decision Making
In depth financial analysis of publicly traded corporations. Explores the relationship between risk and rates of return, cost of capital, capital budgeting decisions using time value of money concepts and relevant costs. Reviews characteristics of alternative sources of funds, income taxes, segmental data and cost-volume-profit decisions, budgeting procedures and uses.
Prerequisites: None.
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MCCCD Official Course Competencies:
 
ACC209   19966-20086 Financial Analysis for Decision Making
1. Identify and describe the major components and processes of conducting a financial analysis of an organization.(I)
2. Compare and contrast a variety of analytical techniques. (I)
3. Perform a financial analysis of a publicly traded company for the purpose of making a variety of financial decisions. (I)
4. Identify and analyze alternative sources of funding in terms of characteristics and costs. (II)
5. Explain the relationship between risk and required rate of return.(II)
6. Use time value of money techniques and relevant costs to make capital budgeting decisions for business organizations. (II)
7. Define income tax terms and identify and explain the significant tax consequences of a variety of business decisions. (III)
8. Analyze cost and pricing and segmental decisions using relevant cost and Cost-Volume-Profit concepts.(IV)
9. Describe the budgeting process.(IV)
10. Explain the concepts of responsibility accounting, standards, and variance analysis.(IV)
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MCCCD Official Course Outline:
 
ACC209   19966-20086 Financial Analysis for Decision Making
    I. Financial Analysis
        A. Alternative Sources of Data
          1. Annual Report
          2. SEC Filings
          3. Investment Analyst Services
          4. Magazines and Newspapers
        B. Quality of Earnings Assessment
          1. Accountants Reports
          2. Industry Norms
          3. Analysis of Accounting Methods and Assumptions
        C. Analytical Techniques
      II. Cost of Capital
          A. Alternative Sources of Funds-Characteristics and Costs
          B. Relationship Between Risk and Required Rate of Return
          C. Time Value of Money Calculations with Capital Budgeting Decisions
        III. Taxation
            A. Definitions
            B. Basic Individual and Corporate Calculations
            C. Decisions with Significant Tax Implications
              1. Form of Business
              2. Buy vs. Lease
              3. Pension Plans
              4. Sources of Capital
          IV. Business Decision Making
              A. Cost Behavior and Definitions
              B. Relevant Costs
              C. Cost-Volume-Profit Applications
                1. Pricing Decisions
                2. Cost Structure Decisions
                3. Segmental Reporting Decisions
              D. Budgeting
                1. Objectives 2 Procedures
                3. Standards
                4. Responsibility Accounting
              E. Standard Costs and Variance Analysis
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