NEW YORK UNIVERSITY
Stern School of Business
Principles of Financial Accounting
Spring 2007
Instructor: Amal Shehata
Daytime Telephone: 212-243-0683
Email: ashehata@stern.nyu.edu
Office: KMEC 10-175
Office Hours: Wed: 12:30 – 1:45pm and Fri: 9:30 – 10:45am (and by apptmt)
TA: Udi Hoffman
TA Office Hours/Room: TBD
TA Email: uah200@stern.nyu.edu
Course Description:
This course provides an introduction to the fundamental concepts of financial accounting.
The objective of the course is to help you become intelligent readers of financial
statements: the balance sheet, income statement, statement of retained earnings and cash
flow statement. Achievement of this goal requires an understanding of the basic
principles that underlie accrual accounting, as well as an appreciation of the amount of
judgment required in applying these principles. I will regularly refer to current events
that show the impact of accounting in the business world. A solid understanding of
accounting is one of the basic building blocks of the business world.
Course Requirements:
 Attendance and class participation are expected and will make the class more interesting.
 Assigned readings and homework assignments should be completed prior to the
relevant class session and selected problems will serve as a vehicle for class review
 Homework assignments will not be collected unless specifically noted, however,
assignments will represent the material you should understand for quizzes and exams.
It is critical that you complete the assignments in order to learn the material.
Expect to spend 2-3 hours of preparation for each hour of class time on average.
 There will be periodic, short quizzes covering previously covered material. Quizzes
will be announced in advance and will last approximately 10 minutes. Make-ups are
not permitted but the lowest quiz score will be dropped.
 Please check Blackboard regularly for announcements and postings.
Required Text and Material:
 Horngren, Sundem & Elliot, Introduction to Financial Accounting, Custom Edition,
Prentice Hall, 9th Edition (you cannot use the 8th edition).
 Supplemental case studies book (shrink-wrapped with the textbook); this is required
for the core enhancement portion of your grade
 Jones Apparel Group (JAG) Annual Report (provided by instructor)
 Bring your text and JAG annual report to each class session.
Grading:
Quizzes
Core Enhancement
Exam I
Exam II
Final Exam
10%
10% (details/due dates to be provided in class)
20%
25%
35%
All exams are cumulative and there are no make-up exams. Calculators are
permitted (no computers or blackberries).
Please note: the dates and assignments listed below are subject to change:
DATE
January 17, 2007
January 19, 2007
January 24, 2007
January 26, 2007
January 31, 2007
February 2, 2007
February 7, 2007
February 9, 2007
February 14, 2007
February 16, 2007
February 21, 2007
February 23, 2007
February 28, 2007
March 2, 2007
March 7, 2007
March 9, 2007
(No class on 3/14 and 3/16)
March 21, 2007
March 23, 2007
March 28, 2007
March 30, 2007
April 4, 2007
April 6, 2007
CHAPTER
Chapter 1: Accounting: The
Language of Business
Finish Chapter 1 and begin Chapter
2: Measuring Income to Assess
Performance
Chapter 2: Measuring Income to
Assess Performance
Chapter 3: Recording Transactions
Chapter 3: Recording Transactions
Chapter 4: Accrual Accounting and
Financial Statements
Chapter 4: Accrual Accounting and
Financial Statements
Midterm 1
Chapter 6: Accounting for Sales
Chapter 6: Accounting for Sales
Finish Chapter 6: Accounting for
Sales and begin Chapter 7
Chapter 7: Inventories and Cost of
Goods
Chapter 7: Inventories and Cost of
Goods
Chapter 8: Long-Lived Assets and
Depreciation
Chapter 8: Long-Lived Assets and
Depreciation
Midterm 2
Chapter 9: Liabilities and Interest
Chapter 9:
Chapter 9:
Chapter 9:
Chapter 9:
Liabilities and Interest
Liabilities and Interest
Liabilities and Interest
Liabilities and Interest
April 20, 2007
April 25, 2007
Chapter 5: Statement of Cash
Flows
Chapter 5: Statement of Cash
Flows
Chapter 5: Statement of Cash
Flows
Chapter 5: Statement of Cash
Flows
Chapter 10: Stockholder’s Equity
Chapter 10: Stockholder’s Equity
April 27, 2007
TBD
Review
Cumulative Final Exam
April 11, 2007
April 13, 2007
April 18, 2007
ASSIGNMENT
Chap 1: 25, 28, 30, 34, 38,
42, 48 (use JAG annual
report)
Chap 2: 32, 34, 35, 45, 48,
49, 55
Chap 3: 17, 19, 24, 27, 30,
34, 40, 49
Chap 4: 22, 24, 30, 31, 35,
39, 46, 53
Chap 6: 34, 37, 41, 42, 43,
45, 49, 52, 54, 56, 59
Chap 7: 31, 32, 34, 36, 41,
42, 45, 47, 48, 55, 56, 58,
66
Chap 8: 27, 29, 31, 35, 39,
41, 42, 45, 47, 51, 53, 75
Chap 9: 32, 33, 34, 35, 37,
40, 44, 46, 48, 53, 54, 56,
58, 61, 63, 71
Chap 5: 32, 40, 45, 47, 49,
52, 53, 54, 57, 58, 59, 62
Chap 10: 30, 34, 35, 41, 45,
46, 48, 55, 60, 62, 66, 75