Instructor:
Phone:
Fax:
E-mail:
723-2720 mnelson@csusm.edu
Office:
Office Hours:
MARK 436
Mondays 1:15 – 2:15 pm
Tuesdays 10:15 – 11:15 and 5:45 – 6:45
Melanie Nelson, MBA
(760) 723-1806 (home)
(760) 750-4264 (support staff)
Wednesdays 3:45 – 4:45 pm
And by Appointment
You are required to make one office hours visit during the semester.
Students whose last names begin with A-L must visit before the first exam; those whose last names begin with M-Z must visit before the second exam.
Students who complete the office visit by their respective due dates will receive ten points of extra credit on the final exam!
Mon/Wed 2:30 – 3:45 pm ACD 102 Class Meets:
Required Materials:
Kimmel, Weygandt & Kieso, Financial Accounting: Tools for Decision Making 4e
Working papers will be provided for in-class problems.
Students may download lecture notes, working papers and homework templates from WebCT: http://courses.csusm.edu
Additional study materials are available at the textbook website: http://bcs.wiley.com/he-bcs/Books?action=index&itemId=0471730513&bcsId=2830
Course Objectives:
This course is designed to introduce students to accounting as the “language of business” by giving an overview of the different types, sources and uses of accounting information. The course will take a user approach, recognizing that most students will be users of accounting information rather than preparers or reporters. After taking this course, students should be able to read, understand, and analyze financial statements. The following learning objectives are designed to help students achieve this goal:
ƒ Understand and apply the basic Generally Accepted Accounting Principles (GAAP) by which financial statements are prepared
ƒ Describe how various transactions affect the four basic financial statements
ƒ Record basic transactions in general journal format
ƒ Complete the accounting cycle beginning with entering transactions in the general journal through the preparation of financial statements and the closing entries.
ƒ Understand and apply principles of internal control
ƒ Analyze financial statements using ratio analysis, horizontal analysis, and vertical analysis

Class Structure:
Quiz: There will be a quiz on each chapter, given at the beginning of class on the dates indicated. Quizzes will be problem-oriented. All quizzes are open-book, open-notes. This is your opportunity to practice what you have learned in a medium-pressure situation. No makeup quizzes will be given, so please don’t ask. The two lowest quiz scores will be dropped. Credit will be awarded for correct responses only. In order to make the most effective use of class time, quizzes will be timed. Make the best use of your time by focusing first on the problem you understand best.
Lecture: Students should read the assigned material before coming to class. This will give them the necessary background for the class lecture. Class lectures will focus on those areas deemed most important by the instructor.
Discussion: A large block of time will be devoted to working through the homework problems and answering students’ questions.
Homework:
Problems and Exercises give the student the opportunity to develop and practice accounting skills. These will be collected and graded for completeness and effort. Late homework will receive a reduced grade. Homework may be submitted as a hard copy or electronically.
Problems and Exercises will comprise approximately 75% of the homework grade.
To encourage students to stay current and not leave homework until the last minute, there will be a weekly online homework assignment consisting of ten multiple choice questions due by noon each Monday. These assignments will be graded on a credit/no credit basis.
In order to receive credit the assignment must be submitted by noon Monday, and at least five of the ten questions must be answered correctly. Late online assignments will not be accepted. The assignment will be available by 12:05 pm each Wednesday and unavailable after noon each Monday. This assignment will also help prepare students for the multiple choice portion of the exams. Online assignments will comprise approximately 25% of the total homework grade.
Exams:
There will three equally weighted exams: two midterms and a final. The exams will be comprehensive to the extent that the material in the later portions of the course builds on the material at the beginning. Each exam, however, will focus on the material covered since the previous exam. Exams will consist of 16 multiple choice questions (40%) and 6 to 10 problems (60%). You may use a calculator and one 8½” x 11” sheet of notes (front and back) during the exam. Book bags, backpacks, purses, notebooks, etc. will be placed against the front wall of the classroom during the exam.

Writing Requirement:
The University writing requirement will be met through homework questions and through the group assignments. The group assignments consist of five one- to two-page memos analyzing the Annual Financial Report of a corporation of your group’s choosing. Publicly traded corporations are required by law to make an Annual Report available to stockholders, and most corporations post their annual reports on the internet. Choose a company that will interest you personally and/or have some value in your future or current career.
Each memo is worth twenty points. The memos should include a heading (To, From,
Subject) and should be addressed to a prospective investor in the company you have chosen.
The written assignments should integrate accounting theory and methodology, ethical issues and critical thinking. Students are expected to use proper grammar and a professional writing style. Be concise! Pretend you are writing to a busy executive who wants “just the facts”. Bulleted lists are useful for conveying a large amount of information in a few words.
Late projects will be accepted at any time before the date of the final exam, but the highest grade possible for a late assignment is seven out of ten points.
Grading:
The course grade will be weighted as follows:
Quizzes (10 @ 10 points each)
Homework
Memos (5 @ 20 points each)
Exams 3 @ 100 pts. each
Total
100
100
100
300
600
Grades will be assigned based on the normal curve, as illustrated below. Homework quality and class participation will be the deciding factor in borderline cases. In the event that a student’s point value grade is higher than the curved grade, the student will be assigned the point value grade.
Mean
One Standard
Deviation Below
Mean
D’s and F’s
C’s B’s
One Standard
Deviation Above
Mean
-1 0 1
A’s
Points
540 - 600
480 - 539
420 - 479
360 - 419
0 - 359
Grade
A
B
C
D
F

Academic Integrity:
In order to fairly evaluate each student’s performance in this class, it is imperative that all work submitted be your own. Therefore the following will be strictly enforced:
1) There will be no talking allowed during individual quizzes or exams. If you finish your quiz early, please sit quietly (bring reading material if necessary.)
2) Any suspicious quizzes or exams will be assigned a grade of zero. BEWARE:
Either giving or receiving help during quizzes and exams is dishonest. In other words, if you allow someone to copy your work, you are just as guilty of cheating as the other party. If you have studied hard for an exam or quiz, don’t risk it! Cover your work.
3) Plagiarism will not be tolerated. All direct quotes must be noted as such. Any ideas, claims or opinions that are not your own must also be cited. For example, to state that “AAA Inc. leads the way in the widget industry,” would require either citing the data that led you to form that opinion, or the source document that made the claim.
4) Serious violations of the University’s policy on academic integrity will be referred to
Academic Affairs for disciplinary action.
Exceptions: Since homework is only graded for completeness, I do allow students to work together. However, each student must submit his or her own work to receive credit. Please let me know if you have a study partner or group.

Memo Assignments:
Choose a group of three or four students. Your group is responsible for the following memo assignments:
Memo #1 due February 12 th :
Give a brief background of the company you have chosen. Comment on the format of the company's financial report compared to the examples in the text. Comment on the usefulness of the report in meeting the needs of users such as investors, creditors, etc.
Memo #2 due March 5th:
Choose at least three ratios that measure the profitability of your company. Explain why you chose these ratios. Calculate the ratios you chose and compare with the same ratios for a prior period or with the same ratios for another company. Comment on your company’s performance in the area of profitability. Identify any trends or unusual items.
Memo #3 due March 19th:
Choose at least three ratios that measure the debt-paying ability of your company. Explain why you chose these ratios. Calculate the ratios you chose and compare with the same ratios for a prior period or with the same ratios for another company. Comment on your company’s performance in the area of debt-paying ability. Identify any trends or unusual items.
Memo #4 due April 18th:
Choose at least three ratios that measure the operational efficiency of your company.
Explain why you chose these ratios. Calculate the ratios you chose and compare with the same ratios for a prior period or with the same ratios for another company. Comment on your company’s performance in the area of operational efficiency. Identify any trends or unusual items.
Memo #5 due May 2nd:
Give an overall analysis of your company's financial performance using the ratios that you calculated in Memos 2-4.
Would you invest in this company? Why or why not?
What type of investment would you recommend in this company (such as stocks, bonds, preferred stock, etc.). Why?
To what type of investor would you recommend this company? Why?
Given the opportunity, what questions would you ask the management of this company?

7-Mar
12-Mar
14-Mar
19-Mar
21-Mar
26-Mar
28-Mar
2-Apr
4-Apr
9-Apr
11-Apr
16-Apr
18-Apr
23-Apr
25-Apr
30-Apr
2-May
7-May
9-May
Date
22-Jan
24-Jan
29-Jan
31-Jan
5-Feb
7-Feb
12-Feb
14-Feb
19-Feb
21-Feb
26-Feb
28-Feb
5-Mar
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M
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M
W
M
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Day
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Lecture Topic
Course Introduction
Introduction to Financial Statements
A Further Look at Financial Statements
A Further Look at Financial Statements (cont'd)
The Accounting Information System
The Accounting Information System (cont"d)
Accrual Accounting Concepts
*Memo #1 due*
Demonstration Problem
Merchandising Operations and the Multiple-Step Income
Statement
Assigned
Reading
--
1
2
3
4
5
W Review for Midterm I
M
Midterm I
Reporting and Analyzing Inventory
Reporting and Analyzing Inventory (cont'd)
*Memo #2 due*
Internal Control and Cash
Financial Statement Analysis
Financial Statement Analysis (cont'd)
Reporting and Analyzing Receivables
*Memo #3 due*
Reporting and Analyzing Receivables (cont'd)
6
7
13
8
Spring Break - No Class Meeting
8 Review for Midterm II
Midterm II
Flex Day
Reporting and Analyzing Long-Lived Assets
Reporting and Analyzing Long-Lived Assets (cont'd)
Reporting and Analyzing Liabilities
*Memo #4 due*
9
10 9
Reporting and Analyzing Liabilities (cont'd)
Quiz
--
--
1
2
3
4
5
Exercises and Problems Due
--
--
BE 1-3, 1-6, 1-8, 1-9; E1-14; P1-
3A; BYP1-1, 1-2
BE2-4; E2-7, P2-6A;
BYP2-1, 2-2
BE3-2, 3-4; E3-10;
P3-1A, 3-5A; BYP3-2
BE4-4, 4-6, 4-7; E4-3, P4-4A;
BYP 4-1, 4-2;
Handout
BE5-1, 5-3, 5-4, 5-10;
E5-2, 5-7, 5-8, 5-11; P5-3A;
BYP5-2
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6
7
13
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BE6-1, 6-2, 6-3, 6-6;
E6-2, 6-7; BYP6-2;
Perpetual Inventory Handout
--
BE7-11; E7-3, 7-8, 7-15;
BYP7-1
BE 13-2, 13-3, 13-4; E13-3, 13-
4; P13-1A, 13-2A;
BYP 13-2
--
E8-4, 8-5
P8-1A, 8-6A; BYP8-2
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--
--
BE 9-2; E9-5, 9-15;
P9-3A, 9-4A; BYP9-1, 9-2;
W Reporting and Analyzing Stockholders' Equity 11 10
BE10-6, 10-12, 10-13;
E10-3, 10-5; P10-10A;
BYP10-2
Reporting and Analyzing Stockholders' Equity (cont'd)
The Statement of Cash Flows
*Memo #5 due*
The Statement of Cash Flows (cont'd)
Review for Final Exam
12 11
12
Final Exam - Monday, May 14 1:45-3:45
BE 11-2, 11-4, 11-5;
E11-4, 11-7; P11-7A;
BYP 11-1;
BE12-2, 12-3,
12-6, 12-13, 12-15; E12-7;
P12-7A, 12-8A; BYP12-1