Accounting, Budgeting, and the Liberal Arts

Accounting is the lingua franca of commercial and financial activity, and applies equally to corporations, non-profits, and governments. In this course we will learn the basic concepts and standards underlying the accounting language including: revenue recognition, inventory, long-lived assets, present value, long-term liabilities, and financial statements. We then turn to the application and use of accounting information in forecasting, operating, and measuring an enterprise. These managerial accounting concepts are used to develop budgets and evaluate results. Our understanding of accounting and financial statements is needed to understand how business interrelates with society, and to answer a range of economic questions such as new product profitability, how to measure and motivate staff and predicting whether Chicago will follow Detroit into bankruptcy. There will be a significant project to apply the concepts and tools we have developed. Professor David Colander will be assisting with the class, giving occasional lectures, and connecting the class to broad liberal arts themes. 3 hrs. lect., 1 hr. lab