August 2012
ACCOUNTING BOOT CAMP
YOUR INSTRUCTORS
Allison Collins
Don Clancy
Introduction to Accounting Boot Camp
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WHY ARE WE HERE?
Have not had accounting before
 Do not have to take undergraduate
fundamentals course
 Meet prerequisite requirement of MBA

Introduction to Accounting Boot Camp
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PURPOSE OF THE BOOT CAMP
Provide an accounting
background to those with limited
experience in accounting
Nothing Fancy !
Introduction to Accounting Boot Camp
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COURSE OBJECTIVES
Understand the role of accounting and the process of
forming standards for accounting.
 Use essential accounting terminology.
 Understand the requirements and application of
transaction analysis to selected transactions.
 Understand the accounting cycle (the process by
which transactions become represented in financial
statements).
 Understand the format and purpose of primary
financial statements: balance sheet, income
statement and cash flow statement.
Introduction to Accounting Boot Camp
 .
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COURSE OBJECTIVES (continued)



Understand the primary accounts in a balance sheet.
Find the time value of money.
Recognize the differences between accrual-basis and
cash basis accounting.
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BOOT CAMP CONTENT
1.
2.
3.
4.
5.
6.
7.
Concepts and Standard Formation
Financial Statements
Transaction Analysis
Accounting Cycle
Primary Accounts
Time Value of Money
Cash Flow
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1A STANDARD FORMATION
 Accounting
has rules!
 Rules differ from country to country
 Who makes the rules?
 How do the rules become official
(promulgated)?
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1B PRIMARY FINANCIAL STATEMENTS
There are three primary financial statements:
 Balance Sheet – What do we own; what do we
owe? Everything we have came from
somewhere…
 Income Statement – Were we successful?
 Statement of Cash Flow – Where did money
come from? Where did money go?
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2 ACCOUNTING CYCLE
Accounting Cycle – repetitive process of
generating financial information
 Follows process of:

Action → Reflection → Reaction

In accounting terms:
Transaction → Adjustment → Closing → Prepare Financial Statements
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3 PRIMARY ACCOUNTS
What balance sheet accounts are used by
most firms?
Receivables – money owed to us
 Inventory – things we will sell
 Fixed Assets – property, plant, and equipment
 Payables and Debt – money we owe to others

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4 TIME VALUE OF MONEY
Accounting and the Fourth Dimension

Financial position is affected by
 how
much cash is received (paid), and
 when cash is received (paid)
Would you rather have $1,000 now or $1,000
ten years from now?
 How does inflation and rate of return affect
payments and receipt of money?

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5 CASH FLOWS
Statement of Cash Flow
 How do increases and decreases in cash
affect the company?
 Cash Flow Classifications

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BOOT CAMP RESOURCES
 Readings
– in the syllabus
 Notes – handouts plus your summaries of
class
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ASSESSMENT
 Take
home assignments
 Attendance will be taken
 Final exam at the end—50 questions
 Open—handouts
Introduction to Accounting Boot Camp
and notes, so take great notes
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