To help graduate students learn how financial/managerial accounting meets the business needs of society by developing and communicating information that is useful for decision making. This course uses case studies and addresses how to understand and use financial statements, financial analysis and ratios, cost of capital calculations and step by step explains how to value a business for non-financial professionals. It addresses under legal considerations "off-balance sheet" financing techniques designed to keep liabilities from appearing on the balance sheet and the CPA’s legal liability. The course includes an overview of the Sarbanes-Oxley Act of 2002 and corporate governance. It gauges financial performance by analyzing key profit check points on the P&L and differentiates between the income-, asset- and market-based approach to business valuation. The special valuation issues relating to closely held businesses that are LLCs and partnerships are reviewed.
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