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Learning Guide Unit 1

Site: University of the People

BUS 5110 Managerial Accounting -
Course:
AY2021-T4
Book: Learning Guide Unit 1
Printed by: Haitham Elhassan
Date: Saturday, 5 June 2021, 11:31 AM

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Description

Learning Guide Unit 1

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Table of contents

Overview

Introduction

Reading Assignment

Discussion Assignment

Written Assignment

Portfolio Activity

Checklist

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Overview

Unit 1: Review of Key Financial Statements

Topics:

Overview of Management Accounting

Guide to Financial Statements
The Income Statement
The Balance Sheet
Statement of Cash Flows

Learning Objectives:

By the end of this Unit, you will be able to:

1. Describe the role of managerial accounting in business organizations.

2. De�ne the balance sheet, income statement, and statement of cash �ows;
3. Demonstrate �nancial statement literacy by determining a company’s key �nancial values by
interpreting relevant portions of its �nancial statements,
4. Analyze, evaluate and develop conclusions about a company by interpreting its �nancial
statements.

Tasks:

Read through the Learning Guide and the Reading Assignment

Complete the Discussion Assignment by posting in the Discussion Forum
Respond to and rate three of your fellow classmates’ posts in the Discussion Forum
Complete and submit the Case Study/ Written Assignment
Complete and submit the Portfolio Activity

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Introduction

Managerial accounting consists of analyzing and using accounting information to make

management decisions. In order to do this, managers need to be pro�cient with �nancial data and
how to interpret �nancial statements. In this course, we begin with a review of the three main
�nancial statements used in businesses – the Income Statement, Balance Sheet, and the
Statement of Cash Flows.

Financial statements tell the story of a company, and each of the statements has a speci�c
purpose. The Income Statement tells how a company performed over a period of time (i.e.,
month, quarter, year). The Balance Sheet provides a picture of a company’s assets, liabilities, and
equity as of a point in time (i.e., end of a month, quarter, year). Finally, the Statement of Cash
Flows shows how cash was generated and spent over a period of time.

It is important to understand that �nancial statements are all related, and they should be
reviewed together. Once we understand the information the �nancial statements provide, we can
use that information to perform various analyses, which we will see as we progress through the
course.

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Reading Assignment

1. Heisinger, K., & Hoyle, J. B. (n.d.). Accounting for Managers. https://2012books.lardbucket.org

/books/accounting-for-managers/index.html

Chapter 1 – What is Managerial Accounting Sections:

Chapter Introduction
Characteristics of Managerial Accounting
Planning and Control Functions Performed by Managers
Key Finance and Accounting Personnel
Ethical Issues Facing the Accounting Industry

This chapter provides additional views on the role of managerial accounting as well as
identifying essential �nance and accounting personnel.

2. Accounting Hub. (n.d.). Accounting. Boundless.com CC BY-SA 4.0. http://oer2go.org/mods/en-

boundless/www.boundless.com/accounting/index.html2Chapter 3

                 o    Section 1

                 o    Section 2.1 –  2.7 

                 o    Section 3 

This resource provides descriptions of the three fundamental �nancial statements.

Additional Resources

1.  Beginners’ Guide to Financial Statement. (2007, February 5). Sec.Gov. https://www.sec.gov
/reportspubs/investor-publications/investorpubsbeg�nstmtguidehtm.html

This is an additional resource by the US SEC that provides an overview of the three vital
�nancial statements required by publicly traded companies.

2.  One Minute Economics. (2016). Financial Statements Explained in One Minute: Balance Sheet,
Income Statement, Cash Flow Statement [Video]. YouTube.

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Financial Statements Explained in One …

 (1:18)

This video summarizes the primary roles of the three fundamental �nancial statements.

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Discussion Assignment

In the discussion forum you are expected to participate often and engage in deep levels of
discourse.  Please post your initial response by Sunday evening and continue to participate
throughout the unit. You are required to post an initial response to the question/issue presented
in the Forum and then respond to at least 3 of your classmates’ initial posts.  You should also
respond to anyone who has responded to you. 

Your Discussion should be a minimum of 250 words in length and not more than 450 words.
Please include a word count. Following the APA standard, use references and in-text citations for
the textbook and any other sources. 

Consider the role of management accounting in relation to the company for which you work (or have
worked). Discuss how the principles of management accounting can be utilized. What speci�c
managerial accounting activities would be useful?

Note: if you do not have work experience, you may select a company with which you are familiar
and apply the discussion assignment to it.

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Written Assignment

Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference
page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no
greater than 12 points in size. The paper should cite at least three sources in APA format. 

In this paper, in addition to presenting the computed answers, please also discuss how you
arrived at each answer the accounting problem asks. The accounting problem presents a
company’s balance sheet, income statement, and statement of cash �ows for a theoretical
company, Polly’s Pet Products. Each of these statements has blank lines. Determine the values
that would be appropriate for each blank line. Provide a narrative of how you arrived at each
value. Include in this narrative an explanation of:
1) the �nancial statement being completed;
2) the account being valued;
3) its relationship to the other �nancial data.

For example, if the accounts payable (AP) line was missing, describe what a balance sheet is and
explain that you can derive the AP value based on knowing all the other values of the current
liabilities section. Then explain what an account liability is, as well as why it would belong in the
current liabilities section of the balance sheet. Finally, analyze, evaluate, and develop a conclusion
about the company’s performance based on the completed statements.

To complete this assignment, refer to the income statement, balance sheet, and statement of cash
�ows of Polly’s Pet Products.

Superior papers will mention and explain the following elements when responding to the
assignment question:

Provide correct balances for the blank �nancial account lines.

De�ne the �nancial statement being completed.
Discuss how the values were determined.
De�ne and explain each account line that was completed.
Analyze, evaluate, and develop conclusions about the company’s performance based on the
�nancial information.

Be sure to use APA formatting in your paper.  Purdue University’s Online Writing LAB (OWL) is a
free website that provides excellent information and resources for understanding and using the
APA format and style. The OWL website can be accessed here: http://owl.english.purdue.edu
/owl/resource/560/01/

This assignment will be assessed using the BUS 5110 Unit 1 Written Assignment rubric.

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Portfolio Activity

When considering companies’ �nancial statements, we often think of investors and analysts using
the information contained in those statements to assess whether or not to invest in the
companies. However, �nancial statements are not just for investors. Please explain who else
should be concerned with a company’s �nancial statements and why they are important.

As portfolio activities are to be self-re�ective, please make sure to connect the portfolio
assignment to:

Your personal experiences. Re�ect on how this assignment topic is applicable to and will
bene�t you.
Course readings and any external readings.
Discussion forum posts or course objectives.

The Portfolio Activity entry should be a minimum of 500 words and not more than 750 words. Use
APA citations and references if you use ideas from the readings or other sources.

This activity will be assessed using the Portfolio Rubric.

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Checklist

Read through the Learning Guide and the Reading Assignment

Complete the Discussion Assignment by posting in the Discussion Forum
Respond to and rate three of your fellow classmates’ posts in the Discussion Forum
Complete and submit the Case Study/ Written Assignment
Complete and submit the Portfolio Activity

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