Cambridge Business Publishers

Financial Accounting for MBAs is managerially oriented and focuses on the most salient aspects of
accounting. It teaches MBA students how to read, analyze, and interpret financial accounting data to
make informed business decisions. This textbook makes financial accounting engaging, relevant, and contemporary. To that end, it consistently incorporates real company data, both in the body of each module and throughout assignment material.

The MBA curricula, instructor preferences, and course lengths vary across colleges. Accordingly and to the extent possible, the 13 modules that make up Financial Accounting for MBAs were designed independently of one another. This modular presentation enables each college and instructor to “customize” the book to best fit the needs of their students. Our introduction and discussion of financial statements constitute Modules 1, 2, and 3. Module 4 presents the analysis of financial statements with an emphasis on analysis of operating profitability. Modules 5 through 10 highlight major financial accounting topics including assets, liabilities, equity, and off-balance-sheet financing. Module 11 explains adjusting and forecasting financial statements. Module 12 introduces simple valuation models. Module 13 concludes with a comprehensive case on Kimberly-Clark and acts as a capstone for the course.

Transaction Analysis and Statement Preparation

Instructors differ in their coverage of accounting mechanics. Some focus on the effects of transactions on financial statements using the balance sheet equation format. Others include coverage of journal entries and T-accounts. We accommodate both teaching styles in this Third Edition. Specifically, Module 2 provides an expanded discussion of the effects of transactions using our innovative financial statement effects template. Emphasis is on the analysis of Apple’s summary transactions, which concludes with the preparation of its financial statements. Module 3, which is entirely optional, allows an instructor to drill down and focus on accounting mechanics: journal entries and T-accounts. It illustrates accounting for numerous transactions, including those involving accounting adjustments. It concludes with the preparation of a trial balance and the four financial statements, again using Apple. This detailed transaction analysis uses the same financial statement effects template, with journal entries and T-accounts highlighted in the margin. Thus, these two modules accommodate the spectrum of teaching styles—instructors can elect to use either or both modules to suit their preferences, and their students are not deprived of any information as a result of that selection.

Flexibility for Courses of Varying Lengths

Many instructors have approached us to ask about suggested class structures based on courses of varying length. To that end, we provide the following table of possible course designs:

Course Length/ Module	15 Week Semester Course	10 Week Quarter Course	6 Week Mini Course	1 Week Intensive Course
Module 1: Financial Accounting for MBAs	Week 1	Week 1	Week 1	Day 1 (Module 1 and either Module 2 or Module 3
Module 2: Introducing Financial Statements and Transaction Analysis	Week 2	Week 2	Week 2
Module 3: Constructing Financial Statements and Analyzing Transactions	Week 2 (optional)	Week 2 (optional)	Week 2 (optional)	Day 2
Module 4: Constructing and Reporting Financial Statements	Weeks 3 and 4	Week 3	Week 3	Skim
Module 5: Reporting and Analyzing Operating Income	Week 5	Week 4	Skim	Day 3
Module 6: Reporting and Analyzing Operating Assets	Week 6	Week 5	Week 4	Optional
Module 7: Reporting and Analyzing Intercorporate Investments	Week 7	Optional	Optional	Day 4
Module 8: Reporting and Analyzing Nonowner Financing	Week 8	Week 6	Week 5	Day 5
Module 9: Reporting and Analyzing Owner Financing	Week 9	Week 7	Week 6	Optional
Module 10: Reporting and Analyzing Off- Balance-Sheet Financing	Weeks 10 and 11	Week 8	Optional	Optional
Module 11: Adjusting and Forecasting Financial Statements	Week 12	Week 9	Optional	Optional
Module 12: Analyzing and Valuing Equity Securities	Week 13	Week 10	Optional	Optional
Module 13 Comprehensive Case	Week 14	Optional	Optional	Optional