Teaching Assistant: Weiwei Wang
Note: Send all queries related to the course material to Weiwei Wang (email: firstname.lastname@example.org). She will get back to you within 24 hours. If she does not do so, then send me an email. Weiwei will try to address your questions and, if needed, discuss your questions with me and will get back to you with answers. Course Pre-requisites, Co-requisites, and/or Other Restrictions There are no pre-requisites for this class. Course Description This course provides an introduction to the concepts of financial accounting with an emphasis on the interpretation of financial statements. Specifically it covers how to prepare financial statements (income statement, balance sheet, and statement of cash flows) and how to utilize information contained in financial statements. The course also covers in detail how financial statements report the financial effects of certain important types of transactions that firms commonly undertake. Student Learning Objectives/Outcomes Summarize the information provided by the balance sheet, income statement and statement of cash flows and interpret individual amounts Compute financial ratios and use financial ratios and other information to compare companies competing in an industry in terms of profitability and liquidity Recognize ethical issues in reporting financial results and assess the impact of these issues on shareholders and other external users of the information Text: Introduction to Financial Accounting, 10th ed. (ISBN: 0136122973), C. Horngren, G. Sundem, J. Elliott and D. Philbrick, Prentice Hall. Cases in Financial Reporting, 7th ed, Engel, Hirst and McAnally, Cambridge Business Publishers. (Note: Go ahead and buy the Horngren textbook as you will need it on the very first day of class. As for the Engel case book, I will indicate how I plan to use the case book during the first class meeting. So you may want to wait until then.) Articles from business publications. Solutions manual for the Horngren text, sample true/false exam questions, guidelines for the financial statement analysis project, sample reports for the financial statement analysis project, and team member evaluation form for the project are posted on eLearning.
The Wall Street Journal (optional, but highly recommended) Articles from business publications such as The Wall Street Journal and Fortune are on eLearning. The purpose of these articles is to relate the concepts we discuss to the real world. I strongly encourage you to do additional reading of this nature. It will not only improve your understanding of the role of financial accounting but will also broaden your knowledge of business. Course Schedule Note: Read “Strategy for Studying for the Course” on page 7 to understand the meaning of each of the items in the schedule and how to prioritize them. Meeting 1: Topic: Readings: August 28 Introduction to the Course Horngren Chapter 1 and 2 Chapter 1: Read carefully and try to understand pages 8 to 16, and glance through the other pages. Chapter 2: Read carefully and try to understand pages 46 to 63, glance through pages 64 and 65, and skip the rest of the chapter. September 4 Financial Accounting Basics I Chapter 1 September 11
Meeting 2: Topics: Readings: Meeting 3:
Topics: Financial Accounting Basics II Readings: Chapter 2 Practice: Ch.1: 37, 45; Ch. 2: 48, 49 _______________________________________________________________ Meeting 4: September 18 Topics: Financial Accounting Basics III - Mallard Clothing Problems (eLearning) Readings: Chapter 4 Practice: Ch.4: 39 _______________________________________________________________ Meeting 5: September 25 Topics: Readings:...