BUAD 285a Spring 2016
BUAD 285a – Accounting Fundamentals, Financial & Managerial Accounting
Course Syllabus
Spring Semester 2016
Section – 14511, 14513, & 14517
Class Sessions – Tuesday & Thursday
8:00 am to 9:50 am HOH 421
10:00 am to 11:50 pm HOH 421
12:00 pm to 1:50 pm HOH 421
Professor: Zivia Wilson Sweeney, CPA
Office: ACC 119
Office Phone: 213 740-2705
E-mail:
Office Hours: Tuesday & Thursday 2:30pm – 4:00pm
FINAL EXAM: Wednesday, May 11 11:00 am – 1:00 pm Location TBD
Course Description
This is a first accounting course for undergraduate students whose majors require: understanding the impacts business transactions have on organizations; knowledge of basic accounting principles and techniques; and the ability to leverage the variety of information the accounting discipline provides managers, owners and other stakeholders. The primary focus of the course is the development, presentation and understanding of accounting information useful for a variety of stakeholders on issues related to income, management analysis, cash flow, product costing, overhead application, budgeting and planning, and analyzing organizational performance for management decision making.
There are five functional areas of accounting: financial accounting, managerial accounting, taxation, systems and auditing. During the majority of the semester, this course will emphasize basic accounting theory and practices related to financial accounting that relates to external financial reporting. These practices include an analysis of records of original entry and their relationship to the general ledger, periodic adjustments, and financial statements.
The remainder of the semester will be dedicated to management accounting. Management accounting focuses on the internal use within a company of financial and non-financial information most effectively in making business decisions and achieving a firm’s goals. This section of the course is designed to provide an understanding of how management thinks, the preparation of accounting data to help solve problems of various complexities, and how data is used to make decisions to facilitate the success of a business enterprise.
Learning Objectives
Upon successful completion of Introductory Accounting, the student will be able to:
1. Demonstrate an understanding of the key principles and assumptions used by accountants when providing information to management and other stakeholders by answering questions and solving problems. (Marshall Learning Goal 1.1)
a. Identify and understand the differences between Corporate, Partnership and Sole Proprietorship forms of business organizations and financial implications for each
b. Understand and explain the importance of accounting information systems in the business environment and communicate how accounting data can be applied in a variety of settings
· Comprehend how accounting entries are posted to general ledger accounts
· Be familiar with the difference between manual and computerized accounting information systems
· Improve business application software knowledge
· Improve internet research and technical skills
· Utilize current and emerging technologies to create, document, and analyze data related to accounting issues.
c. Analyze internal controls and demonstrate the need for internal controls over financial reporting
2. Demonstrate an understanding of Generally Accepted Accounting Principles and their impact on the conduct of management and business leaders by answering questions and solving problems. (Marshall Learning Goal 5.1)
a. Recognize basic accounting concepts; extract, analyze, and apply key accounting terms and concepts.
· Be familiar with debits and credits and the implications of each to various financial reports
· Understand the difference between the Accrual and Cash Basis of Accounting.
· Explain the various accounting equations and determine the impact of various business transactions on these equations
· Know various inventory valuation methods including LIFO, FIFO, average-cost; understand manufacturing and merchandising operations and how information for these entities is recorded, compiled, and used in internal reports
· Use accounting terminology
b. Be knowledgeable regarding generally accepted accounting principles (GAAP)
· Financial Accounting Standards Board (FASB) Accounting Standards Codification™ (ASC)
· International Financial Reporting Standards and its impact on accounting in the United States.
3. Explain how management, other stakeholders and the business community use key sections of the balance sheet, income statement and statement of cash flows to make decisions by evaluating business transactions, preparing financial statements and analyzing relevant financial statement information. (Marshall Learning Goal 2.2):
a. Students will be able to comprehend and read financial statements and reports
· Prepare a trial balance and adjusted trial balance
· Prepare closing entries, journalize business transactions, identify and record adjusting entries on an accounting worksheet,
· Prepare a balance sheet, income statement, statement of cash flows and an equity statement from account level information and describe and explain each of the key sections.
· Analyze financial data/information/accounting transactions
· Communicate the uses and limitations provided by financial reports
· Collect and compile financial data for management analysis of service, retail and manufacturing businesses
· Analyze business transactions and their fundamental cash impact.
b. Understand the variety of ethical practices that companies adhere to and the importance of an organization’s culture in adhering to moral business principals and maintaining trust, confidentiality and business integrity in the workplace.
c. Discuss the underlying Accounting Principles such as:
o Historical cost and Entity concepts
o Relevance, Reliability, and Materiality
o Matching and Revenue Recognition
d. Define, identify, examine, and record business transactions involving various assets, liabilities, owner’s equity, revenue and expenses
e. Calculate Net Present Value of Lump Sums and Annuities
f. Calculate and understand various methods of depreciation
g. Calculate and understand various methods related to the allowance for uncollectible accounts and bad debts expense
4. Describe a business operating cycle and demonstrate the impact of various operating activities by applying accounting principles and techniques to produce journal entries, develop appropriate adjustments, and produce a multi-step income statement in good form. (Marshall Learning Goal 1.1)
· Identify and measure information necessary to complete the operating and accounting cycles.
· Strengthen analytical skills through differentiating facts, using and interpreting data, and employing sound reasoning.
5. Describe a business financial position and demonstrate the impact of various financing and investing activities by applying accounting principles and techniques to produce journal entries, develop appropriate adjustments, and produce a classified balance sheet in good form. (Marshall Learning Goal 1.1, 1.2)
6. Evaluate the general financial performance of an organization and the impact of management decisions on financial results by analyzing a variety of financial ratios and developing an opinion on potential employment by and / or investment in a large public company. (Marshall Learning Goal 3.5)
7. Analyze the cash impact of business transactions by creating a statement of cash flows from a series of transactions and account balance changes. (Marshall Learning Goal 1.2)
8. Analyze the manufacturing cost flows of an organization and their impact on profitability by producing a schedule of cost of goods manufactured and sold. (Marshall Learning Goal 1.2)
9. Analyze the cost, volume and profit relationships of an organization by calculating the contribution margin, breakeven point and target profits given a variety of business scenarios. (Marshall Learning Goal 3.1, 3.2, 3.3)
10. Evaluate the impacts of accrual based accounting and management decisions on financial statement presentation and stakeholder choices by analyzing a variety of business activities / scenarios and developing journal entries. (Marshall Learning Goal 4.1)
To achieve these learning objectives, a combination of background reading, interactive discussion / lecture and practice problems will be utilized. Please note the most important word in the sentence above is “interactive.” The reason is that research on learning indicates it is very difficult to gain anything more than a superficial understanding of material without practice and feedback. Therefore, you should expect our class sessions to incorporate a substantial amount of both.
To demonstrate your achievement of the learning objectives stated above: 1) you will be required to demonstrate your knowledge by individually working problems during exams and 2) you may be asked to complete in class group assignments on an ad hoc basis at the professor’s discretion.
Required Materials
The following books are available in the bookstore and will be used for both BUAD 285a and 285b.
· Kimmel, P.D., Weygandt, J.J., Kieso, D.E., (2013). Accounting: Tools for Business Decision Making, 5th Ed. New Jersey: John Wiley & Sons, Inc. (978-1-118-34276-3)
· BUAD 285a Course Reader Professor Zivia Sweeney
NOTICE: All students are expected to have these materials available when classes begin.
All books can be purchased online except the course reader. However, if you choose to purchase the books online, please be aware that you are responsible for making alternative arrangements for completing all readings and advance preparation until the books arrive.
Prerequisites and Recommended Preparation
Although there are no formal prerequisites for this course, regularly reading a general business periodical or newspaper’s financial section will aid in your business education. The Wall Street Journal can be purchased at a discounted student rate at www.wsjstudent.com.
In addition, you will find it helpful to bring a calculator to class to work discussion problems and in class assignments. For exams, only school provided calculators will be allowed.
Course Notes
Distributed materials and other class information will be available through your Blackboard account. Blackboard will be the primary form of communication to students by your professor.
The following are the “golden rules” of the class.
· The only stupid or dumb question is the one that is not asked.
· Remember the most important golden rule: treat others as you would expect to be treated. Courtesy and respect in the classroom are not “suggestions”. It is mandated.
· You do not have to have Einstein credentials to understand accounting. All that is required is a willingness to learn and a basic understanding of math – addition, subtraction, multiplication, division, decimals and percentages. Calculus is not required.
· All students start with an “A” in this class. Whether they keep this grade is up to the individual.
· We are all in this together. No one should feel isolated.
· It is ok and acceptable to have fun and enjoy accounting.
Grading Policies
Your performance in BUAD 285a will be evaluated based on graded assignments, individual participation and examinations as shown below:
Team assignments and other graded course elements 250 points
Midterm 1 100 points
Midterm examinations (200 points each) 400 points
Final examination 250 points___
Total available 1,000 points
After each graded assignment is returned, you will have one week to challenge your grade in writing. After this time, grades become final. Letter grades for the course are based on your course performance and will be assigned on a curve consistent with the Marshall School of Business grading guidelines.
Final grades represent how you perform in the class relative to other students. Your grade will not be based on a mandated target, but on your performance. Historically, the average grade for this class is about a 3.0 (i.e., a “B”). Two items are considered when assigning final grades:
1. Student score for each of the items above/your overall score for the course.
2. Student ranking among all students in the course(s) taught by your instructor during the current semester. Although final grades will be assigned by class, your total points will be reviewed in light of all students to ensure fairness.
The grade of “W” is allowed only if a student withdraws after the third week but before the end of the twelfth week of the semester. The grade of incomplete (IN) can be assigned only if there is work not completed because of a documented illness or unforeseen emergency occurring after the 12th week of the semester (or the twelfth week equivalent for courses scheduled for less than 15 weeks) that prevents the student from completing the semester. An “emergency” is defined as a serious documented illness, or an unforeseen situation that is beyond the student’s control, that prevents a student from completing the semester. Prior to the 12th week, the student still has the option of dropping the class. Arrangements for completing an IN must be initiated by the student and agreed to by the instructor prior to the final examination. All work required to replace the IN with a final grade must be completed within one calendar year from the date the IN was assigned. If the student does not complete the work within the year, the IN will automatically be converted to a grade of F.
Grading and Assignment Detail
Exams
Midterm and Final Examinations-These examinations account for an estimated 75% of the course points. The primary content of these exams is from the course text, class course reader, handouts, and lectures. The exams will be a mix of true/false, multiple choice, problems, and fill-in components. Details about the format will be announced in class near each exam date.
Because of my commitment to providing you with adequate feedback, you should not expect instantaneous grading of your mid-term exam. Grades on your midterm should be available, however, by two weeks after the midterm date. Midterms will not be returned but will be available for review for one week following the issuance of grades. After this time, grades on tests become final. All other grades are final once given.
The final exam will be cumulative covering materials discussed throughout the semester. Final exams, which must be graded quickly due to the need to report grades to the University, are not returned to students. Should you have any questions about your final exam grade, request an appointment with your instructor to review your exam in the first month of the following semester.
The exam dates for this fall are as follows:
Exam I Tuesday February 9th
Exam II / Thursday / March 3rdExam III / Thursday / March 31st
Final exam / Wednesday / May 11th (11am-1pm)
Preparing for exams involves dedication and ends only when you can: 1) identify the relevant issues in a given business situation; 2) analyze the data and transform it into information to be used in a comprehensive answer; and 3) explain what you did using techniques demonstrated in class. The best bet for success involves a number of steps. First, is making sure you do the advanced preparation for each class session. Second is reworking problems done in class and trying other / additional problems. Third is making sure you ask questions in a real-time manner to solidify your understanding of the material as we go, rather than trying to ‘get it’ right before an exam. Remember, on exams you will be required to perform all work (e.g., problem setup, solution generation, and answer presentation) on your own.