ACCOUNTING 640--FINANCIAL ACCOUNTING

 

 

OVERALL COURSE OBJECTIVES

1.  Introduce you to accounting information systems and the external financial reporting process.

2.  Enable you to design, construct, and operate an accounting information system and prepare financial statements.

3.  Make you aware of areas of choice in accounting principles and estimates and their impact on financial statements.

4.  Enable you to understand and interpret information and disclosures contained in financial statements.

5.  Think critically.

 

A primary objective of this course is to help you understand how accounting meets the information needs of various users by developing and communicating information useful for decision‑making. This objective will be achieved by requiring the following core competencies and outcomes:

 

[1] Fundamental Business Concepts: How do businesses operate and how does accounting serve those entities?

 

 [2] Accounting’s Role in Society: How does accounting meet the information needs of investors and creditors? How does accounting meet the information needs of regulatory agencies and taxing authorities?

 

[3] Accounting Information Systems: How is the usefulness of information reported by an accounting system directly related to that system's design? How is business transactions input, processed by an accounting information system, and output by that same system to produce financial statements?

 

 [4] Fundamental Accounting Concepts Underlying Financial Statements: What are the elements of, the relationships among, and the accounting concepts underlying the primary financial statements?

 

[5] Uses and Limitations of Financial Statements: What are the uses and limitations of financial statements and related information in making both business and personal financial decisions?

 

The above statement, based upon "The California Core Competency Model for the First Course in Accounting" provides an overall framework for what we hope to accomplish in this, your initial course in accounting.

 

COURSE GOALS

This course is designed to introduce accounting and its fundamental concepts to students who have little or no background in the financial aspects of an entity but who will likely use such information in future roles as owners and operators of businesses, entrepreneurs, employees, managers, investors, and/or taxpaying citizens.  The course lays a foundation for the use of accounting concepts, skills and judgments in numerous endeavors, both career and personal.  Accordingly, by the end of the semester, you should…

 

·         Understand the role and purpose of accounting in business and society.

·         Understand accounting- and business-related terms and concepts.

·         Have knowledge of the conceptual framework of accounting and how it relates to accounting principles...

·         Have an understanding of the basic mechanics of the accounting process and the creation of financial statements.

·         Have developed the skills required to effectively use financial statement information in decision- making.

·         have a clear understanding of the uses and limitations of accounting information

 

As one of the initial (or only) course(s) you may take in the Mays Business School, your experience in this class includes an introduction to various skills required for your future career success.  Assignments throughout the semester will allow you the opportunity to develop competencies in a number of areas including the following:

 

·         Critical thinking

·         Problem definition and problem solving

·         Working with deadlines

·         Goal-setting

 

 

REQUIRED TEXTS

Financial Accounting and Reporting (Seventh Edition-2006)

Practice Problem for Principles of Accounting: Billy's Video

Practice Problem in Financial Statement Analysis

 

OPTIONAL MATERIALS

Essentials of Financial Accounting (Fourth Edition)

Study Guide for Financial Accounting

Student Solutions Manual for Financial Accounting and Reporting

 

Course Format

At the outset of the course, it is essential to realize that accounting must be learned by doing.  As in other courses, you must read all assigned materials and study and complete all problems and projects (before each class), attend and actively participate in class discussions, asking questions at any time.  You simply cannot master accounting by solely by reading, listening, and observing – you must do it yourself.  It is expected that you will come to class totally prepared each time.  Your instructor will give you a minimum list of exercises and problems for each chapter.  These problems should be completed prior to class meetings.  WebCT Vista will be used to allow you to check the points you have received for the exams and projects.

 

ASSIGNMENTS

Accounting is a somewhat demanding course and experience has demonstrated that for you to perform at your best, you must study a minimum of ten to twelve hours each week. Some students will require more time. Regular study time is important, as well as proper preparation for each class meeting.  You must become actively involved! You are encouraged to work all assignments and problems on a timely basis. Falling behind in preparation is the most frequent cause of difficulty in the study of accounting.

 

SOME (hopefully) HELPFUL HINTS

In accounting, your understanding of new topics often depends on your comprehension of prior concepts. You must keep up. Do not be afraid to ask questions. The minute you feel that you are getting lost, ask for help.

 

The textbook is a wonderful resource. Read the assignment in the text before coming to class; this will help you to understand material presented in lecture.

 

Do your homework. If you don't understand a concept, work additional problems until you do. In accounting, hard work really does pay off! This is definitely not a course you can wait to prepare for the night before an exam. We cannot stress enough the importance of (1) attending class, (2) actively participating in each class, (3) reading the text and completing assignments on a daily basis, and (4) developing a sound foundation by understanding and applying concepts, particularly those in the initial weeks of the course. 

 

WEBSITE

 

Check the website (http://acct.tamu.edu/kratchman/) for the course frequently, at least weekly for updates and other important information.

 

IMPORTANT DATES

 

January 16

 

 

First day of spring semester classes

January 22

 

 

Last day to add or drop courses for the spring semester

January 26

 

 

Last day to apply for degrees to be awarded in May

February 16

 

 

Examination 1 (Billy’s Video for months of January and February due)

March 9

 

 

Examination 2

March 12 - 16

 

 

Spring Break

 

April 2

 

 

 

Last day to drop courses with no penalty (Q-drop).  Last day to officially withdraw

from classes.

April 6

 

 

                 

Reading day, no classes.

 

April 20

 

April 21

Examination 3 (Financial Statement Analysis Problem Due)

 

Muster

April 23

 

 

Make up exams for all students who missed an exam and have a University excuse.

 

 

April 30

 

 

Dead day, classes meet but no major exams.

May 1

 

 

May 2 – 3

Last day of spring semester classes.  Redefined day; students attend their Friday

Classes.  Dead day, classes meet but no major exams.

 

Reading days, no classes or exams.

 

May 7

 

 

 

Comprehensive final examination - (10:30 am – 12:30 pm)

 

                                                          

 

                                                          

 

 

 


SCHEDULE

TOPICS

Chapter

Readings

An Annual Report to Shareholders: Pepsi Co, Inc.

1

 

 

An Introduction to Accounting

2

 

 

Accounting: Concepts, Standards, and Practice

3

 

 

Transaction Analysis:

      The Accounting Process

4

 

 The Recording Process

       5

      Worksheet and Adjustments

 

      Accruals and Deferrals

 

      Model of a Financial Accounting System

 

 

 

Understanding Corporate Financial Statements

6

 

 

Merchandising Transactions and Inventories

7

 

 

Long‑Term Assets

8

 

 

Cash, Receivables, and Current Liabilities

9

 

 

Long‑Term Liabilities and Investments,

10

      Time Value of Money

      Consolidated Financial Statements

 

Consolidated Financial Statements

 

Types of Business Organizations

11

Income Determination and Earnings

12

Financial Statement Analysis

13

Cash Flows

14

Income Tax Considerations

15

International Accounting

16

 

 

Accounting for Pensions, Postretirement Benefits and

 17

Leases and Analysis of Other Disclosures

 

 

 

Final Examination

1‑16

 

IMPORTANT NOTE: Changes in this syllabus may be made during the course of the semester and will be posted on the website (http://acct.tamu.edu/kratchman/ for the course.  The dates of the exams and the make-ups, however, are fixed, so please note them on your calendar.

 

GRADING

 

Item

Points

Grades on examinations given during the semester

300

 

 

Practice Problem (Billy's Video)

*

Practice Problem (Financial Statement Analysis)

*

Final Examination – Required

100

 

400

Extra Credit

  10

Total Points Available                                                              

410 pts.

            *Completion with a grade of satisfactory is required for a passing grade in the course

All students are expected to attend all classes, take all examinations at the scheduled times (see above) and hand in all assignments on time as indicated.

 

EXAMINATIONS, QUIZZES AND IN‑CLASS WORK

Three (3) examinations will be given during the semester.  Examinations will include a number of multiple-choice questions including questions from both the homework assignments and the two required practice problems.  The required comprehensive final exam will be given at the date and time published in the student directory of classes and noted on the third page of this syllabus.

 

Makeup examinations for the term will be given on April 23.  Individual makeup examinations are not feasible and will not be given because of both the number of exams and the number of students enrolled in the course.  Make-up exams only will be given to students with University approved excuses.

 

IMPORTANT NOTE:  The final exam is worth 100 points.  It is comprehensive and is mandatory, not optional.

 

PRACTICE PROBLEMS

Two practice problems are assigned during the semester. A portion of each problem may be done during the class with the remainder of each practice problem to be completed outside of class.  Please obtain these problems from the bookstore immediately as they may not be available later iN the semester.  The practice problems are due on the dates specified by your instructor in the syllabus. Any practice problems received after the specified due dates will receive a grade no higher than the lowest grade given to any student who turned the assignment in on time. You will receive, from your instructor, a separate transaction sheet for completing the Billy's Video Practice Problem. Do not use the transactions included in the practice problem workbook. Your instructor will also provide you with an Annual Report for your use with the Financial Statement Analysis Practice Problem.  Examinations, including the final examination, will include questions from the two practice problems.

 

GRADE APPEALS/CHANGES

If you believe an error has been made in grading or recording an assignment/exam, you must submit a written request for review within three class days of the date the assignment/exam score was made available to the class. Because of the number of assignments given and the number of students enrolled in the course, any requests made after this time cannot be considered. It is therefore critical that you pick up and review all graded assignments on a timely basis.

 

HELP

Help is available during designated hours to assist accounting students. The instructor will announce his office hours and the office hours of the TA assigned to the course.  Please monitor the course website for additional information.

 

STUDENTS WITH DISABILITIES

If you are entitled to special accommodations because of a disability, please see your instructor within the first two weeks of the semester so that appropriate arrangements may be made.

 

STATEMENT OF ETHICS AND SCHOLASTIC DISHONESTY

The accounting profession has a long‑established reputation for its high level of ethical conduct. This reputation extends into the academic arena where the profession's future leaders are prepared. It follows that accounting students are expected to conduct themselves in a manner which is above reproach in all of their own course‑related activities.

 

Academic dishonesty in any form simply will not be tolerated. Such actions include, but are not limited to:  copying, sharing or obtaining information from any unauthorized source during examinations or quizzes; copying from or unauthorized sharing of homework assignments; attempting to take credit for the intellectual creation of others as one's own work; falsifying information; and giving or receiving information about a test, quiz, practice problem or assignment to students in your class or in other sections of the course.

 

As commonly defined, plagiarism consists of passing off as one's own the ideas, words, writings, etc., which belong to another. In accordance with this definition, you are committing plagiarism if you copy the work of another person and turn it in as your own, even if you have the permission of that person. Plagiarism is one of the worst academic sins, for the plagiarist destroys the trust among colleagues.

 

The texts, supplements and all materials used in this course are copyrighted. This includes all materials generated for this class, which include, but are not limited to, syllabi, exams, quizzes, problems, in‑class materials, review sheets, and additional problem sets. Because these materials are copyrighted, you do not have the right to copy these materials unless permission is expressly granted in writing.

 

Any student involved in academic dishonesty will be penalized to the full extent, in accordance with published University Rules and Regulations, which, unfortunately, do not include the death penalty.

 

BUILDING

We have beautiful and state‑of‑the‑art classrooms in the Wehner Building. We wish to maintain the high quality conditions of these classrooms for the students of future years. Thus, it is necessary for you to adhere to the established policy of NO BEVERAGES, FOOD, TOBACCO PRODUCTS, OR ANIMALS (unless approved) in the Wehner Building classrooms.

 

IMPORTANT NOTE:

We in the Department of Accounting want your work in each and every accounting course to be a challenging, rewarding and pleasant experience.  The Department and your instructor wish to be of assistance to you in any and every way possible. Please do not hesitate to call upon us.

 

We would like to ask an important favor of you. If you have any concerns whatsoever with any aspect of this course, please contact us directly. Our offices and telephone numbers are given below.  If you attempt to contact us and we are not in, please leave a message and a telephone number and we will get back to you as soon as possible. You also may email us.  We will be glad to visit with you at any time about any aspect of your course.

 

Thank you for your help and best wishes for every success in your studies.

 

Sincerely,

 

Stanley H. Kratchman                                                     

Price Waterhouse Professor of Accounting

460 G Wehner Building

845-3175

 

s-kratchman@tamu.edu