Concepts of Financial and Management Accounting focuses on relevant topics within two of the functional areas in accounting: financial and management accounting. The other functional areas of accounting are mentioned when appropriate to establish that accounting extends beyond financial and management accounting.

Following is a brief overview of the course content.

Financial Accounting: This involves the study of the concepts, standards, and procedures that comprise generally accepted accounting principles [GAAP]. GAAP covers the external reporting process and includes the rules for the preparation of the basic financial statements. These financial statements have a wide audience of users including present and potential investors, management, labor unions, employees, creditors and governmental entities among others. The financial accounting section will cover these topics.

• An overview of the financial reporting process including the objectives of financial reporting.
  
  
• The underlying concepts, principles and conventions governing the financial reporting process. This will include developing your ability to apply these concepts, principles and conventions in a wide variety of situations.
  
  
• The accounting cycle involves analyzing, recording and summarizing an entity's transactions in the books and records of an organization in order to prepare financial statements as well as other financial information. The financial statements include classified balance sheets, multiple step income statements and statements of cash flow.
  
  
• Revenue and expense recognition will be developed in some detail because these rules result in revenues and expenses appearing in a particular year's income statement.
  
  
• Revenue recognition criteria will be examined to better appreciate how and when revenues appear in an income statement. Uncollectible Accounts Receivable will be a part of this coverage as well as related topics.
  
  
• Inventories and Cost of Goods Sold will be explored because of their significance in balance sheets and income statements. Understanding financial statements of many firms will require an understanding of accounting methods for Inventories.
  
  
• Operating assets (property, plant, and equipment) present significant accounting issues because of their size in any enterprise. The variety of accounting methods for operating assets makes this area important.
  
  
• Inter-corporate and other investments can pose material accounting issues within the investors' balance sheets. Financial statement users need an appreciation for the impacts accounting methods have on this area.
  
  
• Capital sources, both debt and equity, will be developed appropriately. We will examine the accounting issues surrounding the reporting on these capital sources in the financial statements.

II. Management Accounting: In this area of accounting, managers' skills are developed leading to better business decisions through the use of accounting information. These skills will enhance a student's capability of progressing into senior management positions [or becoming a better entrepreneur].