SAN DIEGO STATE UNIVERSITY
BA 650: Fundamentals of Financial Accounting
Fall 2012
Instructor: Victoria Krivogorsky
Email: vkrivogo@mail.sdsu.edu
Office: SS 2435
Office Hrs: Tuesday after class
REQUIRED COURSE MATERIALS

Harrison, Horngren, and Thomas. Financial Accounting (9th ed.) 2012
ISBN 13: 978-0-13-610886-3
COURSE OBJECTIVES
The main goal of this course is to introduce MBA students to the basics of financial accounting, while assisting
them in developing special managerial skills relating to formulating, communicating and coordinating strategies
to solve business problems and pursue opportunities.
Accordingly, the main objective of this course is two- fold. First one is to explore what financial accounting is
and why it is important for managers, investors, and creditors’ decisions. In this regard, the course includes
issues relating to asset, liability, and equity valuation; revenue and expense recognition; cash inflows and
outflows; internal controls and ethics. It also covers application of US GAAP and IFRS, preparation of financial
statements, financial statement analysis and analysis of environments in which managers make and implement
business decisions. To assess the learning outcomes related to this objective, the following instruments will be
used:
 in-class independent work (students will be assigned problems to be solved independently at the end of
the class period),
 homework
 exams.
Second objective is to help students to develop decision-making skills instrumental in advancing their future
careers. To assess the learning outcomes of this objective a short project prepared individually will be assigned.
This project utilizes real company financial information downloaded from the SEC website, exposing students
to a work with real financial reports.
MBA Program Goals
MBA students will graduate with:
 A solid foundation in theoretical concepts and managerial skills needed to lead business organizations.
 The ability to analyze environments in which managers make and implement business decisions.
 The skills to formulate, communicate, and coordinate strategies to solve business problems and pursue
opportunities.
BA 650 contributes to these goals through its student learning outcomes.
STUDENT LEARNING OUTCOMES
First objective:
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Use accounting and business terminology, and understand the nature and purpose of generally
accepted accounting principles (GAAP).
Explain the objective of financial reporting, the elements of the financial statements, and the related
key accounting assumptions and principles.
Define and distinguish between cash basis and accrual basis accounting and the impact of each on the
financial statements.
Recognize the information conveyed in each of the four basic financial statements and the way it is
used by investors, creditors, regulators, and managers.
Identify and illustrate how internal controls are used to manage and control the firm’s resources and
risk.
Explain the nature of current assets including the measuring and reporting of items such as short-term
investments, receivables and bad debts, inventory and costs of goods sold, and prepaid expenses.
Explain the valuation and reporting of current liabilities, estimated liabilities, and contingencies.
Identify and illustrate issues relating to the acquisition, use, depreciation, and disposal of long-lived
assets.
Identify and illustrate issues relating to the valuation, issuance, and retirement of long-term liabilities.
Account for long-term investments and international business activities.
Identify and illustrate issues relating to stockholders’ equity including the issuance of stock,
repurchase of stock and dividends.
Explain the importance of operating, investing, and financing activities reported in the statement of
cash flows when evaluating firm performance and solvency.
Second objective:
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Analyzing the financial properties of a company
Formulate the strengths and weaknesses of its financial position
Making an investment and debt decision
Course Organization
The information on Blackboard is organized in folders, so you may easily find the relevant material by
downloading the information from the relevant folder. Before each class meeting you need to download and
bring to class the following information from Blackboard:
Power Point presentations
Solutions to in-class work
Solutions to the in-class independent work
HW
Project
The HW should be done individually, typed and signed. It will be collected at the beginning of the class. It is a
student responsibility to turn-in HW. NO LATE HW WILL BE ACCEPTED.
In-Class independent work will be collected at the end of each class period unless it is announced in class
otherwise. No extra time will be given for the in-class work. In-class work should be signed by EACH team
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member individually. If one person signs for somebody else both students receive zero for the in-class work.
In-class assignment signed by one person (for all team members) will not be graded at all and every team
member will receive a zero.
After HW and in-class independent work are collected, the solutions will be posted on BB.
You should read the chapter for each topic before coming to class.
You need to have the book with you at all times.
E-mail Policy
To replicate a business environment in the classroom, the email policy will be following:
Al changes in the class format, news, grades, assignments will be 1)announced in class, 2)posted on BB and 3)
send to students via email.
If you need to contact me through e-mail, please use the following guidelines:
1)
You should send e-mails to: sdsu.ba650@gmail.com
2)
The subject line should contain: BA650 (for both myself and the TAs)
3)
I will not reply without your full name and subject information.
4)
Please, do not e-mail me or the TA with questions unless you have first verified that the information is
not in the syllabus, have not been emailed to you already and in addition posted on the BB.
Changes to the Course Schedule and Content
You are responsible for checking your email and BlackBoard site for any changes to the course schedule and/or
content. If you are not present in class when an announcement is made of changes to the schedule or content,
you are still responsible for any updated changes. Changes can occur at any time during the semester at the
discretion of the instructor. Please, note that all announcements on the Black Board and the schedule for this
class must be considered as a part of the syllabus and have the same prescriptive power.
Classroom Format
During class the atmosphere in the classroom will be active and informal. This usually involves a lecture or
update by the instructor, interspersed with group activities. Any supplementary readings and notifications will
be announced in class, posted on BB and emailed to students. Students will be informed of any changes in the
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scheduling and timing of assignments using email and BB. A copy of your completed homework will be
gathered from your group at the beginning of class on its due date. Group members should bring copies of the
completed homework to class for use in class discussions.
Expectations
The classroom learning environment is a combination of activities including lecture, discussions, and group
work. Outside of class there will be individual work that requires reading and analysis as well as group solution
of homework problems. While I will help you maintain progress toward a successful completion of required
work, you have the responsibility to complete all assigned material and provide competent and thorough
responses for all work submitted.
Evaluation
This course has been designed for you to succeed. I expect you to participate in all aspects of this course. I will
encourage you and give you help and guidance when you ask for it or when I observe that you are struggling
with the material. Points earned from any group work will be given to each group member. If you attend all
classes, read all assigned documents, and prepare for exams and group assignments, you should successfully
complete this course.
GRADING
Exam 1
100 points
Exam 2
100 points
Homework
5 points each X number of collected HW
Independent In-class Work
5 points each X number of collected In-class work (lowest score dropped)
Exams: There will be two exams. They will be noncumulative and contain both problems and multiple-choice
questions. No make-up exams will be given.
Homework: Homework is assigned and graded for accuracy. HW will be collected randomly at the discretion
of the instructor.
In-class work: Independent in-class work is assigned as group work. These assignments contribute to
increasing your knowledge about the essentials of business and developing your critical thinking skills, two of
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the five goals of the BSBA program. Independent in-class work must be turned in at the end of the class. Each
team member must sign it personally, otherwise the signatures will not be considered legitimate. If only one
member of the team signs the in-class work everybody gets a score of zero for the assignment. One lowest score
for the independent in-class work will be dropped.
Grades: Grades will be determined from a distribution of total points earned by each student in the whole
course. Once a distribution of scores is determined, I will assign cut-off scores for each grade (A, A-, B+, etc),
determine the number of students for each grade, and then compute a grade point average for the class. In other
words, I will be grading on a curve, with the expectation that most, or all of you, should earn at least a C grade.
Lack of studying and/or poor performance on assignments and exams, however, can lead to a grade lower than a
C. Grades for all assignments will be posted on the Blackboard. If you feel there was an error in the recording
of your grade, you must contact the instructor within in one week of the grade being posted. Consideration will
not be given to grade disputes after this time period.
ATTENDANCE/PARTICIPATION
Attendance is not required, however, if you are absent on a day that an in-class work is assigned, you will
receive zero points for the work. If you are absent on a day that homework or an exam is collected, you will
receive a zero on that assignment. NO MAKE-UP WORK will be collected. The excused absence is possible
ONLY if the relevant documentation is provided. NO EXCEPTIONS.
ACADEMIC INTEGRITY
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html) states that unacceptable
student behavior includes “cheating, plagiarism, or other forms of academic dishonesty that are intended to gain
unfair academic advantage.” Unprofessional conduct adversely impacts your fellow students, the accounting
faculty, the School of Accountancy, SDSU, and the accounting profession. The School of Accountancy takes
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academic honesty very seriously and vigorously enforces university policy related to any such infractions. As
such, any student suspected of academic dishonesty will be reported to the SDSU Center for Student Rights and
Responsibilities; if found responsible for academic dishonesty, the student will receive an F in BA 650.
CLASS SCHEDULE
Each independent in-class assignment must be signed by each team member individually. Assignments
that are not signed individually will NOT be graded.
CLASS SCHEDULE (for 9th edition)
Assignments highlighted in green should be turned in. Each independent in-class assignment must be signed
by each team member personally.
Week Date
1
8/30
Lecture
Chapter 1: The Financial
Statements
Chapter 2: Transaction Analysis
Homework
2
9/6
3
9/13
4
9/20
5
9/27
Chapter 5: Short-Term
Investments & Receivables
6
10/4
Completion of material
7
8
10/11
10/18
EXAM 1: Chapter 1-5
Chapter 6: Inventory & Cost of
Goods Sold
Chapter 6
9
10/25
Chapter 7: Plant Assets, Natural
Resources & Intangibles
Homework 3
P6-58A
10
11/1
11
11/8
Chapter 6: Completion of
material
Chapter 7: Completion of
material
Chapter 3: Accrual Accounting
& Income
Chapter 4: Internal Control &
Cash (read independently)
Chapters 1
and 2
Chapter 3
Chapter 3
Homework 1
P1-59A, P366A
Homework 2
P4-59B
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Notes
Lecture, in-class work:
E1-16A – E1-19A, E1-24A
Lecture, in-class work:
E2-14A – E2-16A
Lecture, in-class work:
E3-19A – E3-24A
Lecture, in-class work:
E4-20A, P4-53A
Independent in-class work:
P1-56A, P1-58A, P2-58A, P260A, P3-65A, P3-66A
Lecture, in-class work:
E5-21A, E5-23A – E5-28A
Independent in-class work:
E4-18A – E4-20A, P5-61A, 563A
Lecture, in-class work:
E6-15A – E6-17A, E6-19A, E620A
Lecture, in-class work:
E7-17A – E7-20, E7-22A, E724A
Independent in-class work:
P6-60A, P6-66A
Independent in-class work:
P7-67B, P7-68B, (P7-69B - if
time allows)
Week Date
12
Lecture
Chapter 9: Liabilities
13
11/15
Chapter 10: Stockholders’ Equity
14
11/22
11/29
THANKSGIVING BREAK
Chapters 9 and 10: Completion
of material
15
12/6
16
12/13
Chapter 11: The Income
Statement, the Statement of
Comprehensive Income & the
Statement of Stockholders’
Equity
EXAM 2: Chapters 6-7 and 911
Homework
Homework 4
P7-58A
Notes
Lecture, in-class work:
E9-17A, E9-18A, E9-21A – E925A
Lecture, in-class work:
E10-20A – E10-24A
Homework 5
P9-69A
Independent in-class work:
E9-26A, E9-27A, E10-30A, E1031A
Lecture, in-class work:
E11-15A, E11-18A, E11-20A,
E11-23A
Exams will be during regular class periods. They will be 1 hour and 40 min in duration.
Accounting 650 Project
Use following links for 10K and 10Q reports:
Links:
1. Apple - http://www.sec.gov/cgi-bin/browseedgar?company=&match=&CIK=AAPL&filenum=&State=&Country=&SIC=&owner=exclude&Find=
Find+Companies&action=getcompany
2. Google - http://www.sec.gov/cgi-bin/browseedgar?company=&match=&CIK=Goog&filenum=&State=&Country=&SIC=&owner=exclude&Find=F
ind+Companies&action=getcompany
3. Nike - http://www.sec.gov/cgi-bin/browseedgar?company=&match=&CIK=NKE&filenum=&State=&Country=&SIC=&owner=exclude&Find=F
ind+Companies&action=getcompany
4. Ford - http://www.sec.gov/cgi-bin/browseedgar?company=&match=&CIK=F&filenum=&State=&Country=&SIC=&owner=exclude&Find=Find
+Companies&action=getcompany
5. Best Buy - http://www.sec.gov/cgi-bin/browseedgar?company=&match=&CIK=BBY&filenum=&State=&Country=&SIC=&owner=exclude&Find=F
ind+Companies&action=getcompany
Please, use www.sec.gov (Security and Exchange Commission website, Edgar) to mine the financial
information and information regarding reporting requirements.
Objective:
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Analyze the financial position of a company, formulate the strengths and weaknesses of its financial position
and make an investment and debt decision.
1. Please, provide an analysis of the financial position of the companies listed above for the last two
years (2010-2011).
Questions to address:
Q1: What is 10-Q report and where can you find it?
Q2: What information is typically included in quarterly reports?
Q3: What’s in a Quarterly versus an Annual Report (explain the difference)
Q4: For one of the companies above please provide the following numbers for both 2010 and 2011(
information from 10K)
 Current assets
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Non-current assets
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Total assets
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Current liabilities
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Non-current liabilities
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Total liabilities
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
Shareholders Equity
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Revenues
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COGS
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Administrative expenses
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Net Income (loss)
Analyze the changes
What were the main sources of Net Income (loss) – Operating activities, sales of equipment, sale of
securities, etc? Show the difference between cash balance and Net Income.
Q5: For the companies above please compute the following ratios for 2010 and 2011:
 Current ratio
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Acid-test ratio
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Debt/Asset ratio
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Day’s cash ratio
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Day’s receivable ratio
Analyze the Changes.
Q6: If you were a bank, would you lend money to these companies? Why?
Q7: If you were an equity investor, would you invest in these com
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