Business Administration - A&L (BAAL)

An introduction to financial accounting and the accounting profession, with an emphasis on the decision-usefulness of accounting information. The course stresses the relation of accounting to economic activity, organizing information for decision-making, the resource acquisition decision, the uses of cash and noncash resources, the accounting for selling and manufacturing activities, and the information needs of multiple owners, lenders and equity holders. A prerequisite of all accountancy and finance courses. Ordinarily taken by business sophomores in the Fall. Also offered to nonbusiness students. Course cannot be taken Pass/Fail.

The course provides an in-depth and quantitative examination of the principles of financial decision-making. Students learn the concept of value maximization, mathematics of finance, valuation of financial securities, capital investment evaluation, the estimation of required rates of return, and the theory of capital structure. Students with a major in finance must earn a grade of "C" or higher to continue in the major. This course cannot be taken Pass/Fail.