https://studiegids.vu.nl/en/courses/2024-2025/EPG_A_BACRAccounting information is used in almost all business decisions which require economic analysis. The objective of this course is to ensure that students entering in the MSc Accounting & Control have a good understanding of basic concepts used in economic analysis and decision-making, and how accounting information relates to these concepts and decisions. The decision making is complex process which requires giving due consideration to a firm’s own facts and those of the economy as a whole. Accordingly, decision makers need to complement accounting data with other economic and macro level data. However, the accounting data, as reported in the financial statements, is not always presented in a way so as to be readily usable for decision making rather sometimes this data is required to be processed further to make it decision relevant. Similarly, as financial statements are prepared to serve the needs of a wide range of users, the financial statements contain loads of information other than what might be required for a particular business decision. Students in this course will learn how to identify and select the information that is pertinent to a particular decision making task and use it in the light of economic theories to make the appropriate decision. After completion of the course, students will be able to:Comprehend that accounting information is widely used in decision making.Understand the key concepts of accounting, economics and finance, how these concepts are related to each other and are combined together by managers and investors to use and interpret accounting data.Understand the important economic theories that give guidelines about the form and the content of financial statements and thus contribute to the enhancement of decision usefulness of the financial statements.Have familiarity as well as the ability to use tools and techniques that are essential to understand how financial information is evaluated and decisions are made by middle and top level management.Be familiar with the approach and setup of (4) scientific articles relating topics of business economics.Goal is to introduce students into scientific research as preparation for the Master course.The course starts with the discussion of the basic concepts of the financial management. The course builds on these concepts to introduce students with more complex topics and related quantitative techniques. The key topics discussed in this course include: the features and role of financial markets and financial institutions in the business world, the cost of money, the time value of money, forms of securities and their valuation, types of risk faced by investors and their effect on the required rate of return, cost of capital, capital structure, capital budgeting techniques and determinants of dividend policy.Mainly self-study, 6 class room sessions, web lectures. All course materials (textbook, presentations, articles) will be in English. The weekly lectures will be presented to you in Dutch language.The assessment for this course is based on a written exam that comprises of open questions. The exam (questions) will be written in English. Answers may be given by you in either English or Dutch (to your own preference).Eugene F. Brigham, Joel F. Houston, CFIN 7 (Cengage Learning, 2022) ISBN: 978-0-357-51515-0. The book is available in the VU Boekhandel. The course and exam will cover chapters 1 till 13 of the textbook.4 Selected research articles. All articles can be approached on the digital library of the Vrije Universiteit via ubvu.vu.nl.Students are expected to have followed a basic financial accounting course. A familiarity with algebra and basic mathematical concepts is also desirable but not a must.