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 |
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
- Video: Introduction and Courser Overview
- Reading: Prerequisites
- Discussion Prompt: Learner introduction
- Video: Business Organizations
- Video: Role of Financial Manager
- Video: Introduction to Accounting
- Video: The Balance Sheet
- Video: Assets
- Video: Liabilities
- Video: Shareholders' Equity
- Video: Income Statement
- Video: Expenses 1
- Video: Expenses 2
- Video: Statement of Cash Flows
- Video: Cash Flows from Operations
- Video: Cash Flows from Investments and Financing
- Reading: 10 Things to Know About Every Cash Flow Statement
- 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
- Video: Financial Statement Analysis
- Video: Profitability ratios
- Video: Activity Ratios
- Video: Solvency and Liquidity Ratios
- Video: DuPont Identity
- Reading: What are the limitations of ratio analysis?
- Practice Quiz: Practice Quiz (non graded)
- Discussion Prompt: Competition between Amazon and ebay
- 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
- Video: Time Value of Money
- Video: Ordinary Annuities
- Video: Effective Annual Rate (EAR)
- Video: Annuity Due
- Discussion Prompt: Examples of Ordinary Annuities
- Video: Perpetuities
- Video: Discount Rate
- Video: Diversification
- Discussion Prompt: Retirement Fund
- 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
- Video: Net Present Value
- Video: Internal Rate of Return and Payback Period
- Video: Decide Between Two Projects
- Video: Drawbacks of Payback Period
- Video: Drawbacks of IRR and NPV
- Video: Free Cash Flows
- Video: Other Relevant Cash Flows
- Video: A Capital Budgeting Example
- Reading: Capital Budgeting example spreadsheet
- Video: Sensitivity Analysis
- Video: Uncertainties in Projects
- Video: Resolving Uncertainties
Graded: Assessment
FAQs
How It Works
Coursework
Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.
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Creators
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.
Pricing
| Purchase Course | Audit | |
|---|---|---|
| Access to course materials | Available | Available |
| Access to graded materials | Available | Not available |
| Receive a final grade | Available | Not available |
| Earn a shareable Course Certificate | Available | Not available |
Ratings and Reviews
Very helpful course for IT professional to understand Accounting and Finance aspects in decision making. Thanks!
Good course with excellent information about accounting and fin
Fantastic course for IT professionals
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AC
It was really very informative with apt examples and I really enjoyed working with different formulae in the assignment section.