Classroom Syllabus
SCHOOL OF MANAGEMENT
BSC 401: INTERPRETATION OF FINANCIAL STATEMENTS
5 Credit Hours
REQUIRED RESOURCES
Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2011). Financial accounting (6th ed.). Hoboken, NJ:
John Wiley & Sons.
Whitaker, A. (2010). Research and APA style guide. Bratislava, Slovakia: City University of Seattle.
Available online at http://www.vsm.sk/en/students/academic-support/ or for purchase in the CU
Slovakia library.
Access to the Internet is required.
All written assignments must be in Microsoft-Word-compatible formats.
See the library’s APA Style Guide tutorial for a list of resources that can help you use APA style.
Copyright 2012 by City University of Seattle
All rights reserved.
BSC 401: INTERPRETATION OF FINANCIAL STATEMENTS
Scholastic Honesty City University of Seattle expects each student to do his/her own work.
The University has "zero tolerance" for cheating, plagiarism, unauthorized collaboration on
assignments and papers, using "notes" or other unauthorized materials and devices during exams,
submitting someone else's work as one's own, submitting work previously submitted for another
course, or facilitating acts of academic dishonesty by others. Scholastic Honesty policy applies
also to online discussions that represent a part of assignments in online courses. Every reference
material used in discussion contributions must be cited according to the current Research & APA
Style Guide. The penalties are severe! A first offense results in a zero grade for the course; a
second offense can result in a zero grade for the course and suspension for one or more quarters;
a third offense can result in expulsion from the University. The Policy and Procedures may be
found at http://www.vsm.sk/en/students/scholastic-honesty/policies-and-procedures/.
In addition to providing your work to the instructor for grading, you must also submit an
electronic copy for the City University of Seattle archives (unless the work is specifically
exempted by the instructor). You will not receive a grade for particular work until and unless you
submit this electronic copy. The procedure for submitting work to the archives is to upload it via
the website http://www.vsm.sk/en/students/on-line-center/uploader/uploader.html . Files should
include the cover page of the work with the student name, instructor name, course name and
number, and date. File names should indicate the type of assignment, such as
“researchpaper.doc”, “casestudy.doc” or “ thesis.doc” (student name should not be a part of the
file name because the system adds it). All files received into the archives are submitted to
www.TurnItIn.com for plagiarism checking.
COURSE DESCRIPTION
Interpretation of Financial Statements focuses on the analysis of publicly issued financial statements for
decision making, and is taught from a user perspective. Students will learn to read, understand, and
analyze a set of financial statements in a broad, decision-making context. Emphasis is placed on the
consequences of recording accounting transactions on financial statements, and the application of
Generally Accepted Accounting Principles (GAAP).
COURSE RESOURCES
Required and recommended resources to complete coursework and assignments are listed on the
My.CityU portal at Library>Resources by Course.
CITYU LEARNING GOALS
This course addresses the following CityU Learning Goals:



Professional Competency and Professional Identity,
Strong Communication and Interpersonal Skills, and
Lifelong Learning.
BSC 401
Page 2
Eff.: 10/12
PROGRAM CONTEXT
Interpretation of Financial Statements is intended for undergraduate business majors who will not
necessarily be accountants, but who need to use financial information to make informed business
decisions. Students will become familiar with the concepts and terminology of accounting, and learn to
understand the impact of business decisions on the financial statements and on the business entity.
COURSE OUTCOMES
In this course, learners:
1. Analyze the effect that business transactions have on the four basic financial statements;
2. Compare and contrast the roles and responsibilities of management and the external auditor in
developing and examining financial statements;
3. Measure, evaluate, and compare the effect of accrual accounting vs. cash accounting on the
financial statements and the resulting tax liabilities;
4. Demonstrate understanding of the nature of inventory, the relationship to the cost of goods sold;
5. Recommend effective internal control procedures, and explain their importance through examples
and analysis;
6. Analyze the accounting for Property, Plant, and Equipment;
7. Apply time value of money (TVM) analytical;
8. Analyze the overall financial health of a firm;
9. Assess the implications of applying Generally Accepted Accounting Principles.
CORE CONCEPTS, KNOWLEDGE, AND SKILLS
In this course, students acquire a working knowledge of the following accounting terms, products, and
tools; principles, roles, management responsibilities, and external entities:












Income Statement,
Balance Sheet,
Statement of Retained Earnings,
Statement of Stockholders' Equity,
Dividends,
Recording Transactions,
Accounting Theory,
Accounting Principles,
Accounting Formulas,
Inventories,
Cost of Goods Sold,
Property, Plant, & Equipment,
BSC 401
Page 3
Eff.: 10/12










Cash Accounting,
Accrual Accounting,
Generally Accepted Accounting Principles,
Proprietorships, Partnerships, and Corporations,
Role of Management,
Role of Auditors,
Internal Control,
Ethics,
Stockholder Rights,
and Sarbanes-Oxley.
OVERVIEW OF COURSE GRADING
The grade you receive for the course will be derived using City University of Seattle’s decimal grading
system, based on the following:
Overview of Required Assignments
Problem 1
Problem 2 (Ratio Analysis)
Midterm Examination
Final Examination
Oral Presentation and Report
% of Final Grade
10%
10%
30%
30%
20%
SPECIFICS OF COURSE ASSIGNMENTS
PROBLEMS
Two problems assigned from the textbook text are to be submitted for grading. Your solutions should be
as complete and well-supported as possible. See the section on “Professional Presentation” for guidance
on the format for these problems. Also, be sure to refer to the grading criteria below for these homework
assignments. Your instructor may provide different problems or additional information if necessary.
Grading Criteria for Problems
Accuracy of solution
Validity and completeness of analysis
Professional presentation
Grammar, spelling, and syntax
50%
30%
10%
10%
TOTAL
100%
RATIO ANALYSIS PROBLEM
The analysis will require you to use the basic ratios defined in the textbook, as well as answer other
questions about the financial statements. Your analysis of data will depend upon the questions posed in
the problem or by your instructor, but may require you to reach a decision or recommendation and explain
that decision. All narrative analysis and responses should be in depth and should demonstrate
BSC 401
Page 4
Eff.: 10/12
understanding of course concepts. Refer to the section on “Professional Presentation” for guidance on the
proper format for the assignment.
Grading Criteria for Ratio Analysis Problem
Accuracy of solution
Validity and completeness of analysis
Professional presentation
Grammar, spelling, and syntax
50%
30%
10%
10%
TOTAL
100%
EXAMINATIONS
Examinations will be closed book. The instructor may elect to provide interest tables where necessary,
but you should have a financial calculator during examinations. You are not allowed to use a computer
during exams nor may you have an electronic organizer or any other electronic device that stores text
data.
For any exam questions requiring computations, you must show all work, and label your computations
clearly. For both problems and computational multiple-choice questions, partial credit may be earned
based on well-labeled computations, even if the final answer is not correct. All work must be done on the
exam pages provided; no extra paper of any kind may be used.
Your instructor may provide different or additional information about examinations as necessary.
ORAL PRESENTATIONand REPORT
This assignment is designed to (a) stimulate you to find out what is happening in the financial world
today by reading current newspapers and magazines, (b) help you to learn the course material by seeing
how it applies to real companies, events, and situations, and (c) challenge you to analyze and evaluate
financial and accounting news so that you can form your own opinions.
You will prepare an oral presentation (12 -15 minutes) on some practical accounting problem (Go to your
local library or visit the City University on-line library and review recent issues, look for news articles
that (a) related to topics covered by the BSC401 course and (b) raise interesting issues about financial
accounting problems). Support your presentation with the written summary (4-5 pages) with the main
points and findings of your research.
Check with the instructor to make sure that an article or topic you found is appropriate.
Grading Criteria for Financial News Report
Choice of topic/problem (relevance, importance, interest)
Clarity of explanation of the problem
Explanation of the connection to the course material
Analysis and evaluation of the issues relating to financial
accounting
Professional presentation
TOTAL
15%
25%
25%
25%
10%
100%
BSC 401
Page 5
Eff.: 10/12
PROFESSIONAL PRESENTATION OF WRITTEN WORK
All assignments submitted for this course should be of professional quality. You should consider your
audience when preparing homework assignments.
This course requires that you use the American Psychological Association (APA) style with internal
citations, in preparing any required research papers or any written work. Refer to this style guide for
proper format, referencing methods, and bibliographic format. References should be cited for all facts,
ideas, conclusions, and opinions not your own.
A proper title page should preface all written assignments, unless otherwise required. The title page
should include your name, the title of the paper, the name and number of the course, the start date of the
course, the date submitted, and the name of the instructor.
Your work should be typed or word-processed on white paper and all narrative portions should be double
spaced. If financial statements or accounting records are required, they should be in good form. Some
assignments may require that your work be prepared on a computer spreadsheet.
Do not use binders or special covers when submitting your assignments. Staple your completed
assignments in the upper-left hand corner.
COURSE POLICIES
This document provides an overview of the course foundation elements, assignments, schedules, and
activities. For information about general, City University of Seattle policies, please see the City
University of Seattle catalog. If you have additional questions about the course, please contact your
instructor.
Late Assignments
Students are expected to meet submission requirements for assignments in a timely manner. Evaluation
includes an assessment of timeliness. Late submission of assignments may be penalized up to 100% of the
grade. Your instructor will provide additional details.
Exams and assignments must be taken at the scheduled times. Any absences or late submissions must be
approved before the scheduled date by your instructor. Not completing an assignment or exam in a timely
manner will result in a grade of zero unless a student has been preapproved by the instructor to complete
the assignment at an alternative time.
Use of laptops during the Lectures
Students are not allowed to use laptops or mobile phones during the lectures.
Professional Writing
All assignments submitted for this course should be of professional quality. The presentation should
always take into account your intended audience.
This course requires that you use the American Psychological Association (APA) style in preparing any
required research papers, or any written work where other sources are used. A style guide is included in
BSC 401
Page 6
Eff.: 10/12
the “Required Text and Materials” section. Refer to this style guide for proper format, referencing
methods, and bibliographic format. References should be cited for all facts, ideas, conclusions, and
opinions not your own.
A proper title page should preface all written assignments, unless otherwise required. The title page
should include: your name, the title of the paper, the name and number of the course, the start date of the
course, the date submitted, and the name of your instructor.
Generally, your work should be prepared in Word and all narrative portions should be double spaced.
Electronic submission of all work is encouraged in face-to-face courses and required in online courses.
See the instructions for the graded assignments for more information about format. If financial statements
or accounting records are required, they should be in good form. Some assignments may require that your
work be prepared on a computer spreadsheet.
Your instructor may have different or additional requirements for the submission of written work.
UNIVERSITY POLICIES
You are responsible for understanding and adhering to all of City University of Seattle’s academic
policies. The most current versions of these policies can be found in the university catalog that is linked
from the CityU Web site.
Academic Integrity
Scholastic honesty in students requires the pursuit of scholarly activity that is free from fraud, deception
and unauthorized collaboration with other individuals. You are responsible for understanding CityU’s
policy on scholastic honesty and adhering to its standards in meeting all course requirements.
Attendance
Students taking courses in any format at the University are expected to be diligent in their studies and to
attend class regularly. Regular class attendance is important in achieving learning outcomes in the course
and may be a valid consideration in determining the final grade.
SUPPORT SERVICES
Library Services
In order to help you succeed in this course, you have access to library services and resources 24 hours a
day, seven days a week. CityU librarians can help you formulate search strategies and locate materials
that are relevant to your coursework. For help, contact a CityU librarian through the Ask a Librarian
service. To find library resources, click on the Library link in the My.CityU portal.
SmartThinking
As a CityU student, you have access to 10 free hours of online tutoring, including writing support, from
certified tutors 24 hours a day, seven days a week. Contact CityU’s Student Support Center at
info@cityu.edu to request your user name and password.
BSC 401
Page 7
Eff.: 10/12
RECOMMENDED COURSE SCHEDULE
The schedule for course activities and assignments is below. If you find you are unable to complete the
assignments as scheduled, contact your instructor.
Q = Question
SESSION
Ex = Exercise
P = Problem
TOPICS & ASSIGNMENTS DUE
READINGS AND
ASSIGNMENTS
Accounting Principles
Chapter 7
Internal Controll nad Cash
Chapter 8
2
Accounting for Receivables
Chapter 9
3
Plant Assets, Natural Resources, and
Intangible Assets
Chapter 10
4
Liabilities
Chapter 11
1
DUE: Problem 1
5
6
Corporations: Organization, Stock
Transactions, Dividends, and Retained
Earnings
Chapter 12
Investments
Chapter 13
DUE: Oral Presentation and Report
Midterm Exam
BSC 401
Page 8
Eff.: 10/12
7
Time Value of Money
App. C
DUE: Oral Presentation and Report
8
Statement of Cash Flows
Chapter 14
DUE: Oral Presentation and Report
9
Chapter 15
Financial Statement Analysis
DUE: Oral Presentation and Report
10
Due: Problem 2 (Ratio Analysis)
DUE: Oral Presentation and Report
Final Exam
BSC 401
Page 9
Eff.: 10/12