NEW YORK UNIVERSITY
Leonard N. Stern School of Business
C10.0001.PRINCIPLES OF FINANCIAL ACCOUNTING
Professer Kashi R. Balachandran
Office: KMEC 10-78
E-mail : kbalacha@stern.nyu.edu
Phone: 998-0029
Office Hours:
Tu. & Th. 5 P.M to 6 P.M.. and by appointment
Teaching Assistant
Office Hours:
E-Mail:
Course Objective
Accounting produces much of the information used within corporations. A thorough
understanding of the subject is essential for users of financial information including
managers, regulators, investors, analysts and creditors. This course introduces the
fundamentals of financial accounting from a user’s point of view.
We study the three basic financial statements- the balance sheet, the income statement,
and the statement of cash flows. It is important to understand the interrelationships
among the statements and the use of them for decision making. The basic principle of
accrual accounting is imbedded in financial statements and its importance is brought out.
TEXT
Horngren, Sundem, Elliott and Philbrick (9th edition), custom edition.
Supplemental case book (attached to the custom edition)
Class Format
Class time will be utilized for lectures, discussions and reviews of assigned problems. In
the first class of each chapter, I will lecture on the theory and utilize the second class to
work out problems that have been assigned. Assigned readings and homework should be
completed before coming to the class. The homework is to be submitted at the beginning
of the class (the second class of each chapter) and is designed to ensure that you have
read the text and have attempted to apply the content to some relatively simple exercises.
It is a way for me to make sure that everyone has a moderate level of understanding the
basics upon which I can build my lectures. Late submission of homework will not be
accepted. This is a challenging course and it is important that you do not miss any class.
Class attendance will be noted in several of the classes and will count towards the final
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grade. Absence from class can be only for a valid University approved reason such as
extreme illness or family emergency and you should notify the professor prior to the date.
I urge you to make use of help from the TA and me during our office hours.
I am generally available outside of my office hours also by appointment.
Grading
Class attendance, participation and homework
Core enhancement
First midterm exam
Second midterm exam
Final Exam
10%
15%
15%
20%
40%
100%
Core enhancement: It is the supplemental case that is shrink-wrapped with the custom
text. Due dates will be announced in class.
Undergraduate Grading Guideline for Core Courses:
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
ETHICAL GUIDELINES
Student Code of Conduct
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
Students whose class performance may be affected due to a disability should
notify the professor immediately so that arrangements can be made in consultation with
the Henry and Lucy Moses Center for Students with Disabilities http://www.nyu.edu/csd/
to accommodate their needs.
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Exam Policy: All examinations are closed book and closed notes. Use of lap tops is not
allowed. You should bring a calculator to the tests and the final. All midterm and final
exams are cumulative. There are no make ups for missed exams. Attendance is a must.
If you have to miss an exam, you should notify the professor prior to the date of the
exam. This can be only for a valid University approved reason such as extreme illness or
family emergency and you should notify the professor prior to the date. In such a
situation, the final exam will be counted for more. Failure to do so or lack of a valid
reason will result in a score of 0 for the missed test.
Schedule
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Session date
Reading for class
1. September 2
Chapter 1: introduction
2. September 4
Chapter 1: balance sheet
3. September 9
Chapter 2: the income
statement
4. September 11
Chapter2:problems
5. September 16
Chapter 3: recording
transactions
6. September 18
Chapter 3: problems
7. September 23
Chapter 4 : accruals
8. September 25
Chapter 4:problems
9. September 30
Review
10. October 2
TEST 1
11 October 7
Chapter 5:statement of
cash flows
12 October 9
Chapter 5: problems
13 October 16
Chapter 6: Revenue
recognition. Cash and
accounts receivable
14 October 21
Chapter 6: problems
15. October 23
Chapter 7: Inventories
and cost of goods sold
16 October 28
Chapter 7: problems
17 October 30
18 November 4
19 November 6
Review problems
Review
TEST 2
Suggested problems and homework
1- 26,31,35,36,38,40
Homework: 1-33
2- 34,48,49,55,63
Homework: 2-45
3- 20,21,30,38,39,40,43,45,49
Homework: 3- 26
4- 23,24,25,27,35,43,58
Homework: 4- 22
5- 44,54,41,53,62,68
Homework: 5- 31
6- 35,37,41,48,49,54,56,58,82
Homework: 6- 34
7- 41,47,48,51,55,56,66,75,88
Homework:7- 34
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20 November 11
Chapter 8: Long lived
assets and depreciation
18 November 13
Chapter 8
21 November 18
Chapter 9: Liabilities and
Interest – Introduction to
present value concepts,
Long term bonds and
leases
8- 31,34,37,42,47,48,51,53,60,75,80
Homework:8- 27
9- 33,34,35
Homework:9- 32
9- 25,41,43,46,50,52,54,56,58,65,80
22 November 20
Chapter 9 problems
23 November 25
Chapter 9 problems
Homework: 9- 41
25. December 2
Chapter 10:
stockholders’ equity
10- 45,46,48,53,60,62,75
Homework: 10- 34
26 December 4
Chapter 10 problems
27 December 9
Review problems
28 December 11
Review
FINAL EXAMINATION
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