New York University
Leonard N. Stern School of Business
Principles of Financial Accounting (C10.0001.06)
Fall 2007, Tues./Thurs. 3:30 – 4:45p (Tisch LC 10)
Syllabus
Instructor: Richard Carrizosa
Office: KMEC 10-99
E-Mail: rcarrizo@stern.nyu.edu
Phone: 212 – 998 – 0024
Office Hours: TBD
Teaching Fellow: Kedar Telang
Office Hours: TBD
E-mail: kedar.telang@stern.nyu.edu
OVERVIEW:
Accounting information is an important input to the decision making processes of
various internal (within a corporation) and external users. This course introduces
the fundamentals of accounting, and approaches the subject from the point of
view of an external user (this group includes investors, creditors, regulators, etc.).
Typical uses of accounting information by external users includes tasks such as
valuation, and contracting.
Accounting information is the output of a system of guiding principles and rules.
In order to interpret this information, one must understand the fundamentals of
the system that produces them. Therefore, a significant portion of the course will
be spent learning both the preparation and interpretation of three fundamental
financial statements -- the balance sheet, the income statement, and the
statement of cash flows. We will use various examples, some involving actual
financial statements, to understand the fundamentals of each topic, and to
explore its implications. By the end of this course, students should be able to
read and understand financial statements.
COURSE MATERIALS:
1. Textbook: Horngren, Sundem, Elliott & Philbrick (2006), Introduction to
Financial Accounting (9th Edition), custom edition for C10.00001 (abbreviated
HSEP).
2. Lecture notes, including class discussion problems, practice problems, and
solutions to problems in HSEP posted on Blackboard at
http://sternclasses.nyu.edu . You need to log in using your Stern ID and
password (same used for Webmail).
ASSIGNMENTS / GRADING:
1) Homeworks:
You can work on the homework assignments in groups, however, I
expect each student to submit answers individually. The assignments will be
graded 0, 1, 2, where a score of 2 will be given if there is evidence that you have
attempted (work shown), but not necessarily successfully completed, all
problems assigned. Late assignments will not be accepted unless due to
documented serious illness or family emergency. Exceptions will be made for
religious observance or civic obligation only when the assignment cannot
reasonably be completed prior to the due date, and the student makes
arrangements for late submission with the professor in advance.
2) Quizzes:
Five short quizzes will be administered throughout the course. The purpose of
the quiz is to provide feedback to both the student and instructor regarding the
level of understanding of the topics presented. Therefore, each student who
completes the quiz will receive full points. Each quiz will be given during the first
10-15 minutes of class. Any student who misses class, or arrives late, without
prior approval from the instructor, and does not have a documented serious
illness or family emergency, will receive a zero for the quiz. One quiz will be
dropped. There will be no make-up quizzes.
3) Midterms / Final Exam:
The exams are closed book and closed notes. You are allowed to bring one 8.5 x
11" sheet of hand-written notes to each exam (you may use both sides). Make
sure to bring a calculator to the exams. The format of the exams will be
discussed in class. All exams will be cumulative, as accounting is necessarily
cumulative, with an emphasis on material covered since the prior exam.
You are expected to take all exams at the scheduled times. Make-ups will be
allowed only if the absence is due to documented serious illness or family
emergency and if you notify me prior to the date and time of the exam.
(exceptions for religious observance or civic obligation will be made when
arranged with the instructor at the beginning of the semester). Failure of either of
those conditions will result in a score of 0 for the missed exam.
Grade component weights:
Homework / Quizzes
Core Enhancement*
Midterm Exam 1
Midterm Exam 2
Final Exam
10%
10%
15%
25%
40%
100%
* Core Enhancement: There is a supplemental case book that is shrink-wrapped
with the text. Due dates will be announced in class.
At Stern, we want to ensure fair and consistent grading across core courses. As such,
grades for this course will be distributed following the Stern Grading Guidelines for Core
Courses at the Undergraduate College.
25-35% A’s – awarded for excellent work
50-70% B’s – awarded for good or very good work
5-15% C’s (or below) – awarded for adequate or below work
Blackboard:
Blackboard will be used throughout the course to post course materials, announcments,
and Q&A.
Q&A using Blackboard:
Students are encouraged to attend office hours. In addition to office hours, we will utilize
Blackboard as a means to address questions regarding course material. Questions should
be posted in the appropriate section under the ‘Post Questions’ tab in Blackboard. Either
the instructor or the TA will post reponses to all posted questions (Sunday, Wednesday,
and Friday evenings). Questions regarding course material should not be sent via email.
We hope that this is not only efficient/convenient, but that all students benefit from the
questions and responses.
Posts can be made anonymously if you wish (or feel free to include your name). While I
don’t anticipate any problems, please be aware that we will obtain the identity of a
‘poster’ if we encounter any material posted that is deemed inappropriate.
Ethical Guidelines:
All students are expected to follow the Stern Code of Conduct
(http://www.stern.nyu.edu/uc/codeofconduct)
A student’s responsibilities include, but are not limited to, the following:


A duty to acknowledge the work and efforts of others when submitting work as
one’s own. Ideas, data, direct quotations, paraphrasing, creative expression, or
any other incorporation of the work of others must be clearly referenced.
A duty to exercise the utmost integrity when preparing for and completing
examinations, including an obligation to report any observed violations.
Students with Disabilities:
If you have a qualified disability and will require academic accommodation during this
course, please contact the Moses Center for Students with Disabilities (CSD, 998-4980)
and provide me with a letter from them verifying your registration and outlining the
accommodations they recommend. If you will need to take an exam at the CSD, you
must submit a completed Exam Accommodations Form to them at least one week prior to
the scheduled exam time to be guaranteed accommodation.
Classroom Norms:


Laptops, cell phones, Smartphones and other electronic devices are a disturbance
to both students and professors. All electronic devices must be turned off prior to
the start of each class meeting.
No food (meals). Drinks/snacks are fine.
Course Schedule:
Week Date Day
Topic
1
9/4 Tues. Introduction
9/6 Thurs. Ch 1: Balance Sheet
2
3
4
5
9/11 Tues.
9/13 Thurs. Ch. 2: Income Statement
9/18 Tues.
9/20 Thurs. Ch. 3: Recording Transactions
9/25 Tues.
9/27 Thurs. Ch. 4: Accrual Accounting
10/2
10/4
6 10/9
10/11
Tues.
Thurs. Review for Exam #1
Tues. Exam #1
Thurs. Ch. 6: Sales & AR
7 10/16 Tues.
10/18 Thurs. Ch. 7: Inventories and Cost of Goods Sold
Reading
Ch. 1
Ch. 1: 26,
31, 33, 35,
36, 38
Ch. 2
Ch. 2: 34,
48, 49, 45,
48, 55
Ch. 3
Ch. 3: 20,
21, 26, 30,
38, 43, 49
Ch. 4
Ch. 4: 22,
23, 24, 25,
27
Ch. 6
Ch. 6: 34,
35, 37, 54,
56, 58
Ch. 7
Ch. 7: 34,
41, 47, 48,
55, 56, 66
8 10/23 Tues.
10/25 Thurs. Ch. 8: Long Lived Assets & Depreciation
9 10/30 Tues.
11/1 Thurs. REVIEW
10 11/6 Tues. EXAM #2
Ch. 9: Liabilities & Interest (Introduction to
11/8 Thurs. Present Value Concepts)
Ch. 8: 27,
31, 34, 35,
47, 48, 53,
60, 75
Ch. 9
Ch. 9: 32,
33, 34, 35
11 11/13 Tues.
Ch. 9: Present Value Concepts and Long-term
11/15 Thurs. Bonds & Leases
12 11/20 Tues.
11/22 Thurs. Break (No Class)
13 11/27 Tues. Ch. 5: Statement of Cash Flows
14
11/29 Thurs.
12/4 Tues. Ch. 10: Stockholder’s Equity
12/6 Thurs.
15 12/11 Tues. Review for Final Exam
FINAL EXAM TBA (Finals period Fri, Dec 14 Thurs, Dec 20)
HW (Due) Addl. Prob.
Ch. 9
Ch. 9: 25,
43, 46, 54,
65
Ch. 5
Ch. 5: 31,
44, 54, 41,
62, 75
Ch. 10
Ch. 10:
34,45, 46,
48, 60, 62,
75