Cambridge Business Publishers

As MBA instructors, we recognize that the core MBA accounting course is not directed toward accounting majors. Financial & Managerial Accounting for MBAs embraces this reality. This book highlights reporting, analysis, interpretation, and decision making. In the financial accounting modules, we incorporate the following financial statement effects template when relevant to train MBA students in understanding the economic ramifications of transactions and their impacts on all key financial statements. This analytical tool is a great resource for MBA students in learning accounting and applying it to their future courses and careers. Each transaction is identified in the “Transaction” column. Then, the dollar amounts (positive or negative) of the financial statement effects are recorded in the appropriate balance sheet or income statement columns. The template also reflects the statement of cash flow effects (via the cash column) and the statement of stockholders’ equity effects (via the contributed capital and earned capital columns). The earned capital account is immediately updated to reflect any income or loss arising from each transaction (denoted by the arrow line from net income to earned capital). This template is instructive as it reveals the financial impacts of transactions, and it provides insights into the effects of accounting choices.

Tomorrow’s MBA graduates must be skilled in using financial statements to make business decisions. These skills often require application of ratio analyses, benchmarking, forecasting, valuation, and other aspects of financial statement analysis to decision making. Furthermore, tomorrow’s MBA graduates must have the skills to go beyond basic financial statements and to interpret and apply nonfinancial statement disclosures, such as footnotes and supplementary reports. This book, therefore, emphasizes real company data, including detailed footnote and other management disclosures, and shows how to use this information to make managerial inferences and decisions. This approach makes accounting interesting and relevant for all MBA students.

Financial & Managerial Accounting for MBAs includes special features specifi cally designed for the MBA student.

Focus Companies for Each Module

In the financial accounting portion of the book, each module’s content is explained through the accounting and reporting activities of real companies. To that end, each module incorporates a “focus company” for special emphasis and demonstration. The enhanced instructional value of focus companies comes from the way they engage MBA students in real analysis and interpretation. Focus companies were selected based on the industries that MBA students typically enter upon graduation. We apply a similar approach for the managerial accounting modules, but limited access to internal accounting information prevents us from illustrating all managerial accounting topics using real company data. We do, however, incorporate real world examples throughout each module. Each managerial accounting module is presented in context using real world scenarios from industries and companies ranging from technology and telecommunications to services, retail, and manufacturing.

Focus Company by Module

MODULE 1 Berkshire Hathaway	MODULE 9 Accenture	MODULE 17 AT&T, Microsoft, Time Warner
MODULE 2 Apple	MODULE 10 Southwest Airlines	MODULE 18 Ace, Home Depot, Lowes
MODULE 3 Apple	MODULE 11 Procter & Gamble	MODULE 19 Oshkosh Truck, Shimano, SRAM
MODULE 4 Home Depot	MODULE 12 Johnson & Johnson	MODULE 20 7-Eleven, Target, Wal-Mart
MODULE 5 Pfizer	MODULE 13 Kimberly-Clark	MODULE 21 Gateway
MODULE 6 Cisco	MODULE 14 HP, Dell, Compaq	MODULE 22 Procter & Gamble, Verizon
MODULE 7 Google	MODULE 15 American, United, JetBlue	MODULE 23 Ford, GM, Honda, Toyota
MODULE 8 Verizon	MODULE 16 Amazon, Webvan, Yahoo!	APPENDIX B Starbucks

Real Company Data Throughout

Market research and reviewer feedback tell us that one of instructors’ greatest frustrations with other MBA textbooks is their lack of real company data. We have gone to great lengths to incorporate real company data throughout each module to reinforce important concepts and engage MBA students. We engage nonaccounting MBA students specializing in finance, marketing, management, real estate, operations, and so forth, with companies and scenarios that are relevant to them.

Managerial and Decision Making Orientation

One primary goal of a MBA accounting course is to teach students the skills needed to apply their accounting knowledge to solving real business problems and making informed business decisions. With that goal in mind, Managerial Decision boxes in each module encourage students to apply the material presented to solving actual business scenarios.

Research Insights for MBAs

Academic research plays an important role in the way business is conducted, accounting is performed, and students are taught. It is important for students to recognize how modern research and modern business practice interact. Therefore, we periodically incorporate relevant research to help students understand the important relation between research and modern business.

Mid-Module and Module-End Reviews

Accounting can be challenging—especially for MBA students lacking business experience or previous exposure to business courses. To reinforce concepts presented in each module and to ensure student comprehension, we include mid-module and module-end reviews that require students to recall and apply the accounting techniques and concepts described in each module.

Excellent, Class-Tested Assignment Materials

Excellent assignment material is a must-have component of any successful textbook (and class). We went to great lengths to create the best assignments possible from contemporary financial statements. In keeping with the rest of the book, we used real company data extensively. We also ensured that assignments refl ect our belief that MBA students should be trained in analyzing accounting information to make business decisions, as opposed to working on mechanical bookkeeping tasks. Assignments encourage students to analyze accounting information, interpret it, and apply the knowledge gained to a business decision. There are five categories of assignments: Discussion Questions, Mini Exercises, Exercises, Problems, and Cases.