Financial and Economic Analysis for Engineering and Technology Management [Hardcover]

Expert guidance for fiscally responsible engineering and technology managers. This thoroughly updated Second Edition is an accessible self-study guide and text that helps engineers extract important meaning from financial statements and accounting records, ask insightful questions, engage in thoughtful debate about accounting and financial issues, and make informed decisions that benefit their companies.1. INTRODUCTION: WHY KEEP SCORE?

Users of this Book.

Scorekeeping.

Definition of Accounting.

Limitations of Accounting Information.

Audiences for Accounting Information.

Different Messages for Different Audiences.

Accounting in the World of Business.

Accounting in Nonprofit and Governmental Organizations.

Useful Nonaccounting Information.

Importance of Personal Motivations.

Summary.

New Terms.

Exercises.

2. Accounting Framework: The Concept of Value.

Accounting Equation.

How Is Owners’ Equity Created?

Valuation Methods.

Valuing a Loan or Note.

Valuing Common Stock Securities.

Calculating Time-Adjusted Values.

Valuing Personal and Company Assets.

Choosing Among Valuation Methods.

Challenge of Alternative Valuation Methods.

Dominance of the Cost Value Method.

Summary.

New Terms.

Appendix 2A: Interest Tables for Calculating Time-Adjusted Values (Present Worth).

Exercises.

3. Financial Position: The Balance Sheet.

Key Accounting Reports.