Accounting and Finance for IT professionals

About this course: This course presents an introduction to the basics of financial accounting and finance for IT professionals. The first part of the course will focus on understanding the most important financial statements, namely, the balance sheet, the income statement, and the statement of cash flows. We will then focus on how we can understand the financial health and performance of the company by examining a number of important financial ratios that are derived from the financial statements of the company. The second part of the course will focus on the basics of finance. This includes the concept of time value of money, discounting cash flows, and capital budgeting. The course will also introduce the idea of real options, how they affect a project’s NPV, and their impact of the decision to accept/reject a project. Lectures on concepts will be supplemented with numerical examples.

Created by:  Indian School of Business

• Taught by:  Ramabhadran Thirumalai, Assistant Professor

  Indian School of Business

Basic Info Course 3 of 6 in the Business Technology Management Specialization Level Beginner Language English How To Pass Pass all graded assignments to complete the course. User Ratings 4.4 stars Average User Rating 4.4See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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Indian School of Business The Indian School of Business has successfully put India on the global map of management education by nurturing young leaders with an understanding of developing economies and the society at large. Through innovations in curricula and pedagogy to reflect the shifting business landscape, the ISB is committed to providing the best venue for management education to meet the growing need to develop young leaders who can manage global challenges.

Syllabus


WEEK 1


Basics of Financial Statements



This module provides a brief introduction to financial statements and various common filings. These are the most important sources for obtaining information regarding a company's performance. Most strategies are indeed based on financial statements. After completing this module you will be able to get the important details from the balance sheets.


14 videos, 2 readings expand

1. Video: Introduction and Courser Overview
2. Reading: Prerequisites
3. Discussion Prompt: Learner introduction
4. Video: Business Organizations
5. Video: Role of Financial Manager
6. Video: Introduction to Accounting
7. Video: The Balance Sheet
8. Video: Assets
9. Video: Liabilities
10. Video: Shareholders' Equity
11. Video: Income Statement
12. Video: Expenses 1
13. Video: Expenses 2
14. Video: Statement of Cash Flows
15. Video: Cash Flows from Operations
16. Video: Cash Flows from Investments and Financing
17. Reading: 10 Things to Know About Every Cash Flow Statement
18. Discussion Prompt: Manchester United

Graded: Assessment

WEEK 2


Financial Statement Analysis
The purpose of this module is to equip you with the skills required to identify accounting information required for building trading strategies. After completing this module you will be able to calculate the key financial ratios.


5 videos, 1 reading, 1 practice quiz expand

1. Video: Financial Statement Analysis
2. Video: Profitability ratios
3. Video: Activity Ratios
4. Video: Solvency and Liquidity Ratios
5. Video: DuPont Identity
6. Reading: What are the limitations of ratio analysis?
7. Practice Quiz: Practice Quiz (non graded)
8. Discussion Prompt: Competition between Amazon and ebay
9. Discussion Prompt: Amazon Competitor

Graded: Assessment

WEEK 3


Time Value of Money



In this series of videos,we will cover the basics of time value of money. This includes the idea of discounting and compounding of cash flows and why they needs to be done. We will see how to calculate the present and future values of various types of streams of cash flows like annuities and perpetuities. Finally, we will discuss the relationship between risk and discount rate and what type of risk drives the discount rate.


7 videos, 1 practice quiz expand

1. Video: Time Value of Money
2. Video: Ordinary Annuities
3. Video: Effective Annual Rate (EAR)
4. Video: Annuity Due
5. Discussion Prompt: Examples of Ordinary Annuities
6. Video: Perpetuities
7. Video: Discount Rate
8. Video: Diversification
9. Discussion Prompt: Retirement Fund
10. Practice Quiz: Practice Quiz (non graded)

Graded: Assessment

WEEK 4


Capital Budgeting



In this series of videos, we will cover the various aspects related to deciding whether to accept or reject investment in a project. This starts off by discussing the common decision tools, namely, net present value (NPV), internal rate of return (IRR) and payback period (PBP) and how to calculate and interpret them. We will then move on to what free cash flows are and how to estimate them. Finally, we will focus on the flexibilities in projects, how to value them and how they affect the decision to accept or reject projects.


11 videos, 1 reading expand

1. Video: Net Present Value
2. Video: Internal Rate of Return and Payback Period
3. Video: Decide Between Two Projects
4. Video: Drawbacks of Payback Period
5. Video: Drawbacks of IRR and NPV
6. Video: Free Cash Flows
7. Video: Other Relevant Cash Flows
8. Video: A Capital Budgeting Example
9. Reading: Capital Budgeting example spreadsheet
10. Video: Sensitivity Analysis
11. Video: Uncertainties in Projects
12. Video: Resolving Uncertainties

Graded: Assessment