Implementation Guide for Instructors
Introduction to Accounting: The Language of Business™ Software Series
Products of Brigham Young University
By Business Learning software, Inc
Updated July 2008
Copyright 2008 Business Learning Software, Inc.
TABLE OF CONTENTS:
INTRODUCTION ................................................................................................................................................. 4
HOW TO USE THIS GUIDE ............................................................................................................................... 5
IMPLEMENTATION CHECKLISTS ................................................................................................................... 6
I.
II.
III.
UNDERGRADUATE MODEL IMPLEMENTATION CHECKLIST ..............................................................................7
GRADUATE MODEL IMPLEMENTATION CHECKLIST .........................................................................................8
ONLINE MODEL IMPLEMENTATION CHECKLIST ...............................................................................................9
PURCHASE, DOWNLOAD, AND INSTALL THE ACCOUNTING SOFTWARE ......................................... 10
COST OF COURSE AND DISCOUNTS:......................................................................................................................10
FREE SOFTWARE COPIES FOR INSTRUCTORS: .....................................................................................................10
DEPARTMENTAL PURCHASES:................................................................................................................................10
OBTAIN THE MEDIA DVD (OPTIONAL) ........................................................................................................ 11
TEACHING MODELS DESCRIBED ................................................................................................................ 12
I.
II.
III.
UNDERGRADUATE VALUE-ADDED TEACHING MODEL & VARIANTS DESCRIBED .........................................13
GRADUATE VALUE-ADDED TEACHING MODEL & VARIANTS DESCRIBED ....................................................16
DISTANCE LEARNING MODEL DESCRIBED....................................................................................................19
STUDENT RESPONSIBILITY & ADDITIONAL RESOURCES .................................................................... 20
ORIENTATION .................................................................................................................................................. 21
PSYCHOLOGICAL EFFECT .......................................................................................................................................21
MIMICKING A TRADITIONAL MODEL ........................................................................................................................21
OUTLINE OF ADDITIONAL RESOURCES .................................................................................................... 22
TEACHING ASSISTANTS & T.A. LAB .......................................................................................................................22
TELEPHONE HOTLINE: ............................................................................................................................................22
EMAIL SUPPORT: ....................................................................................................................................................22
INSTRUCTOR’S OFFICE HOURS ..............................................................................................................................22
CLASS NOTES AND THE LEARNING RESOURCE PACKET: ......................................................................................22
OPTIONAL TEXTBOOK: ............................................................................................................................................23
OPTIONAL W EEKLY REVIEW SESSIONS: ................................................................................................................23
OPTIONAL EXAM REVIEW SESSIONS: ....................................................................................................................23
RESOURCE SUMMARY TABLE.................................................................................................................................24
CLASS SIZE AND NUMBER OF INSTRUCTORS ........................................................................................ 25
ASSESSMENT .................................................................................................................................................. 26
EXAMS: ...................................................................................................................................................................26
QUIZZES ..................................................................................................................................................................26
TIPS TO HINDER CHEATING W ITH ONLINE QUIZZES..............................................................................................27
QUIZ SCHEDULE .....................................................................................................................................................28
TIPS TO PERFORMING WELL IN THIS COURSE ....................................................................................... 29
MANAGERIAL AND FINANCIAL BREAKUP & ADDITIONAL TOPICS ..................................................... 31
TECHNICAL SUPPORT FOR SOFTWARE ................................................................................................... 31
TRIAL PERIOD.................................................................................................................................................. 32
TRIAL GUIDELINES AND POSSIBLE PITFALLS: ........................................................................................................32
2
USING THE ACCOUNTING SOFTWARE IN CAMPUS COMPUTER LABS .............................................. 34
POSSIBLE PITFALLS AND IMPORTANT NOTES ....................................................................................... 35
HOW TO USE THE SOFTWARE .................................................................................................................... 37
APPENDIX ......................................................................................................................................................... 40
COURSE ORIENTATION GUIDE ...............................................................................................................................41
UNLOCK STATEMENT OF CASH FLOWS AND VALUE-ADDED LESSONS ON SET #1 ..............................................50
SAMPLE SYLLABI ....................................................................................................................................................51
I.
Sample Undergraduate On-Campus Syllabus ..................................................................................51
II.
Sample Graduate/MBA Syllabus .........................................................................................................72
III. Sample Distance Learning/Online Model Syllabus ...........................................................................84
TOPIC BREAKDOWN FOR SETS 1 & 2 ...................................................................................................................103
ACCOUNTING SOFTWARE TIME COMMITMENT.....................................................................................................111
LEARNING RESOURCE PACKET ............................................................................................................................113
VALUE-ADDED SESSION POWERPOINT EXAMPLES.............................................................................................114
OPTIONAL W EEKLY REVIEW SESSION MATERIALS..............................................................................................115
ASSESSMENT ........................................................................................................................................................116
EXAM REVIEW DOCUMENTS (INTENDED FOR EXAM REVIEW SESSIONS) ...........................................................117
3
Introduction
Thank you for taking time to read this guide as you learn how to implement the Introduction to
Accounting: the Language of Business™ software and the Value-Added Teaching Model™. We are
confident as you follow this guide to integrate our technology and teaching models into your course, you
will observe increased success in your course and program.
We have spent the last seven years developing and refining our Value-Added Teaching Model™ and the
Introduction to Accounting: The Language of Business™ software series. Professor Norm Nemrow, the
coordinator of the introductory courses at BYU, heads this project at BYU. Norm has taught at BYU for
over 15 years as a volunteer after retiring as a president of a real estate investment company. Norm
knew there was a better way to teach introductory accounting— a way to excite students and teach them
better than the traditional method. He began developing, with his own funds, the Value-Added Teaching
ModelTM and the Introduction to Accounting: The Language of Business™ software series. Over the last
few years, over 20,000 students have taken this class and we are elated with the results. Our introductory
accounting class is now the most popular general education/non-specialty course on campus.
Additionally, our recruitment of high-quality students into the accounting program has skyrocketed.
As demand grew for the software beyond BYU’s campus, Norm created Business Learning Software, Inc.
to continue the development of this technology, provide pedagogical counseling, and guide market
promotion. Although BYU owns the software, Norm has exclusive distribution rights; however, he donates
all of his proceeds from the sale of the software back to BYU. Norm is passionate about sharing his
ideologies and technology because he simply desires to help others be more successful.
Our company, which operates much like a non-profit organization, works with BYU to help instructors and
schools to strengthen their accounting, MBA, and distance learning programs. We are pleased you are
taking the first steps in implementing our new approach. Please let us know if we can answer any
questions or provide any additional assistance. You may contact us by going to our website at
www.accountingcds.com
4
How to Use This Guide
For the past eight years, we have intensely worked with students on BYU’s campus and with instructors
and students at many other schools developing the most efficient and effective methods to implementing
our models and technology. This guide is a result of those efforts.
We have arranged this document to guide you through every aspect of our models (undergraduate,
Graduate/MBA, and Distance/online learning models). We have also included a checklist that will help
you get a big picture of the entire implementation process and assist you in organizing the creation of
your course more efficiently. This checklist in nowise encompasses everything you need to know for a
successful implementation and effective course. Therefore, it is vital you read this entire document first
and then use this checklist as a reference tool as you begin to develop your course. We also included an
appendix, which we will reference many times throughout this document. The appendix also contains
resources that you will find very helpful.
As with any method of teaching, what works for one school may not work for another. Therefore, you
may need to adjust some aspects of our model to make it fit your unique situation. However, please be
extremely careful when deviating from our advice. Altering seemingly insignificant aspects of this model
can result in serious detrimental effects upon the success of the course, regardless of the school or the
type of student. We will highlight, prioritize, and reiterate1 many of these issues throughout this
document. However, if you have a question about the possible ramifications of an alteration, please let us
know and we can assist you with more information.
Download the Word Version of this Guide
To access the Word version of this document, please go to
www.accountingcds.com/learn/documents/Implementation_Guide.doc
1
Before we wrote this guide, we would often counsel instructors regarding certain key issues as they were
implementing our approach. When they had trouble in their course, we often observed they failed to implement
these important points. Therefore, we decided to “drive home” a few ideas (such as students’ responsibility,
additional resources, and the orientation process) with several reiterations to make our points as clear as possible.
Please forgive any annoying redundancy.
5
Implementation Checklists
We provided the checklists below to help instructors visualize each aspect of the entire implementation
process. These checklists in nowise encompasses everything you need to know to implement and run
the models successfully. Therefore, it is vital you read this entire document first and then use this
checklist as a reference tool as you begin to develop your course. Please choose a model that best suits
your needs from the three below.
6
I.
Undergraduate Model Implementation Checklist
We provided this checklist to help you visualize each aspect of the entire implementation process.
This checklist in nowise encompasses everything you need to know to implement and run this
model successfully. Therefore, it is vital you read this entire document first and then use this
checklist as a reference tool as you begin to develop your course.
□
Download and Install the Accounting Software: You need to familiarize yourself with our
software and learn how to download, install, and use our software. (on page 10 )
□ Obtain the Media DVD (Optional): The media DVD is a disc we provide that alleviates the
need to download the accounting lessons. You will need to decide if you want the DVD for
your course. (on page 11)
□ Choose and Integrate a Teaching Model: Choose the best teaching model for your
course. (on page 13)
□ Outline Topics in Course: You need to decide which topics you will teach and if you will
integrate financial and managerial topics into the same course. (on page 103)
□ Develop Value-Added Sessions: You will need to decide how to conduct the value added
sessions. (on page 13 )
□ Prepare Additional Resources: Prepare all or some of the following resources (on page 22)
o Teaching Assistants & T.A. Lab
o Telephone Hotline
o Email Support
o Office Hours
o Class Notes and the Learning Resource Packet
o Optional Textbook
o Weekly Review Sessions
o Optional Exam Review Sessions
□ Prepare Exams: Please see our exams and use them in any way you choose. (on page 26)
□ Setup Course Website for Quizzes: Arrange with your IT staff to setup your course
management website (i.e., Blackboard, WebCT, Etc), which you will use to deploy quizzes
and other information to your students. We can provide the quizzes in Blackboard electronic
form. However, you may also administer the quizzes in hard form. (on page 26)
□ Understand How Students Obtain Software: Be ready to explain to your students how to
purchase, download, install, and use our software from our website. (on page 10)
□ Prepare Computer Labs: Coordinate with your IT technicians to prepare the campus labs to
run the accounting software. The fastest way to accomplish this is to have your IT people
contact us. (on page 34)
□ Prepare Class Notes: Prepare the hard copy of the class notes (also called the Learning
Resource Packet) for your students. (on page 22)
□ Prepare Course Syllabus: Please use our syllabus and copy it as needed as you draft your
own syllabus. (on page 51)
□ Setup Trial: If you are conducting a trial, understand the following issues (on page 32):
o Evaluation of Course
o Required Review Sessions
o Student Questions
o Isolate Software From Textbook
o Experimentation
Orientation
□ Watch the orientation video and follow the enclosed orientation guide. (on page 41)
□ Become familiar with the accounting software. (Page 37)
Miscellaneous
□ Learn how to resolve technical support issues (on page 31)
□ Learn how to respond to students complaints (on page 35)
□ Learn how to mimic a traditional model within the Value-Added Model (on page 21)
□ Learn the tips students can use to perform well in the course (on page 28)
□ Learn how to promote student responsibility within this model (on page 20 )
□ Learn the psychological effects of additional resources within this model (on page 21)
7
II.
Graduate Model Implementation Checklist
We provided this checklist to help you visualize each aspect of the entire implementation process.
This checklist in nowise encompasses everything you need to know to implement and run this model
successfully. Therefore, it is vital you read this entire document first and then use this checklist as a
reference tool as you begin to develop your course.
□
Download and Install the Accounting Software: You need to familiarize yourself with our
software and learn how your students will purchase, download, install, and use our software.
(on page 10 )
□ Obtain the Media DVD (Optional): The media DVD is a disc we provide that alleviates the
need to download the accounting lessons. You will need to decide if you want the DVD for
your course. (on page 11)
□ Choose and Integrate a Teaching Model: Choose the best teaching model for your
course. (on page 13)
□ Outline Topics in Course: You need to decide which topics you will teach and if you will
integrate financial and managerial topics into the same course. (on page 103)
□ Develop Value-Added Sessions (on page 16)
□ Prepare Additional Resources: Prepare all or some of the following resources (on page 22)
o Teaching Assistants & T.A. Lab
o Telephone Hotline
o Email Support
o Office Hours
o Class Notes and the Learning Resource Packet
o Optional Textbook
o Weekly Review Sessions
o Optional Exam Review Sessions
□ Prepare Exams: Please see our exams and use them in any way you choose. (on page 26)
□ Setup Course Website for Quizzes: Arrange with your IT staff to setup your course
management website (i.e., Blackboard, WebCT, Etc), which you will use to deploy quizzes
and other information to your students. We can provide the quizzes in Blackboard electronic
form. However, you may also administer the quizzes in hard form. (on page 26)
□ Understand How Students Obtain Software: Learn to show your students how to purchase
our software from our website. (on page 10)
□ Prepare Computer Labs: Coordinate with your IT technicians to prepare the campus labs to
run the accounting software. The fastest way to accomplish this is to have your IT people
contact us. (on page 34)
□ Prepare Class Notes: Prepare the hard copy of the class notes (also called the Learning
Resource Packet) for your students. (on page 22)
□ Prepare Course Syllabus: Please use our syllabus and copy it as needed as you draft your
own syllabus. (on page 51)
□ Setup Trial: If you are conducting a trial, understand the following issues (on page 32on page
32):
o Evaluation of Course
o Required Review Sessions
o Student Questions
o Isolate Software From Textbook
o Experimentation
Orientation
□ Watch the orientation video and follow the enclosed orientation guide. (on page 41)
□ Become familiar with the accounting software. (on page 37)
Miscellaneous
□ Learn how to resolve technical support issues (on page 31)
□ Learn how to respond to students complaints (on page 35)
□ Learn how to mimic a traditional model within the Value-Added Model (on page 21)
□ Learn the tips students can use to perform well in the course (on page 28)
□ Learn how to promote student responsibility within this model (on page 20 )
□ Learn the psychological effects of additional resources within this model (on page 21 21)
8
III.
Online Model Implementation Checklist
We provided this checklist to help you visualize each aspect of the entire implementation process.
Please read the entire document first and then use this checklist as a reference tool as you begin
to develop your course.
□
□
Download and Install the Accounting Software: You need to familiarize yourself with our
software and learn how your students will purchase, download, install, and use our software. (on
page 10 )
Obtain the Media DVD (Optional): The media DVD is a disc we provide that alleviates the need
to download the accounting lessons. You will need to decide if you want the DVD for your course.
(on page 11)
□
Outline Topics in Course: You need to decide which topics you will teach and if you will
integrate financial and managerial topics into the same course. (on page 103)
□ Prepare Exams: Please see our exams and use them in any way you choose. (on page 116)
□ Setup Course Website for Quizzes: Arrange with your IT staff to setup your course
management website (i.e., Blackboard, WebCT, Etc), which you will use to deploy quizzes
and other information to your students. We can provide the quizzes in Blackboard electronic
form. However, you may also administer the quizzes in hard form. (on page 26)
□
Understand How Students Obtain Software: Learn to show your students how to
purchase our software from our website. (on page 10)
□
Prepare Computer Labs: Coordinate with your IT technicians to prepare the campus
labs to run the accounting software. The fastest way to accomplish this is to have your IT people
contact us. (on page 34)
□ Prepare Class Notes: Prepare the hard copy of the class notes (also called the Learning
Resource Packet) for your students. (on page 113)
□ Prepare Course Syllabus: Please use our syllabus and copy it as needed as you draft your
own syllabus. (on page 84)
□ Setup Trial: If you are conducting a trial, understand the following issues (on page 32):
o Evaluation of Course
o Required Review Sessions
o Student Questions
o Isolate CD From Textbook
o Experimentation
Miscellaneous
□
Learn how to resolve technical support issues (on page 31)
□
Become familiar with the accounting software. (on page 37)
□
Learn the tips students can use to perform well in the course (on page 28)
□
Learn how to respond to students complaints (on page 35)
□ Watch the orientation video and read the enclosed orientation document. This video and
document are for an on-campus undergraduate course. However, since we teach our oncampus section in a hybrid online/on-campus format, this video and guide will be very helpful
to you as you develop your course. (on page 41)
9
Purchase, Download, Install, and use run Accounting Software
We provide the Introduction to Accounting: The Language of Business™ Software series through our
website. Students can purchase, download, and begin watching the accounting lesson all within a few
minutes. We do not sell the software to bookstores except for extreme cases.
How to purchase, Download, Install, and run the Accounting Software:
1. Go to www.accountingthelanguageofbusiness.com.
2. Click Purchase.
3. Click the purchase button below either Set 1 or Set 2.
4. Enter your discount code (We provide volume discounts to schools and free copies to instructors.
Please contact us to request these discounts. We will provide you and your students with a code
that will grant you these discounts — please enter that code in this step).
5. Complete the form and click “proceed to checkout.”
6. Complete the next form and click purchase.
7. You will see a receipt page and an opportunity to login to our system. Our system also sent you
an email with your receipt and login information.
8. Log into our system by going to www.accountingthelanguageofbusiness.com and click “login to
your account.”
9. Enter your Login information.
10. Complete the steps along the top of the website to download, install, and run the accounting
software.
Cost of Course and Discounts:
The cost of the course is $109 per student. We do provide volume discounts to schools who contact us
at sales@accountingcds.com. When we give your school a volume discount, we will provide you with an
eight-character School Discount Code (example discount code: KSDET56Z). Students will use this code
in step four above.
Free Software Copies For Instructors:
We provide free copies of our software for all instructors and administrators. Please contact us by email
at sales@accountingcds.com and request a free copy of the software. We will Email you a reply with an
eight-character discount code. You will enter this code in step 4 above, which will render the transaction
free. However, in order for us to authenticate you as an instructor and not a student, you must Email us
with your school Email address.
Departmental Purchases: Some departments choose to provide the accounting software to their
students directly. If you would like to obtain the software in this manner, please contact us at
sales@accountingcds.com. We do not sell the software to bookstores except for extreme cases.
10
Obtain the Media DVD (Optional)
The media DVD (see below) is a DVD disc that contains all the large lesson files the students needs to
watch the accounting lessons. When the students download and install the accounting software in the
instructions above, they are only installing the player program, which is very small — only a few
megabytes (MB). The actual lesson data (i.e., video and audio) needed for each lesson is very large.
The amount of data for both courses combined (33 total lessons) is about six gigabytes (GB) of data. Our
website explains how to download this data from our website, which takes around 5-10 minutes per
lesson (depending upon their internet connection). If students have trouble downloading the lessons,
they can use the Media DVD instead. The Media DVD is OPTIONAL. Everything on the media DVD is
also available by downloading the content on our website.
Media DVD
11
Teaching Models Described
Please find a model below that best suits your needs. We have several models for undergraduate,
Graduate/MBA, and distance/online learning courses.
12
I.
Undergraduate Value-Added Teaching Model & Variants Described
Value-Added Teaching ModelTM
To learn more about the features and benefits of this model, please go to
www.accountingcds.com/learn/undergraduate/undergradmodel.htm.
Brief description: Students learn all the core content of the course outside of class on their own
time by using the Introduction to Accounting: The Language of Business TM software. Valuable
class time is not spent reviewing material that can be learned outside of class on the software.
When students come to the classroom, the instructor uses class time to apply the concepts
learned on the software to real-world scenarios and applications. In addition, the instructor can
teach the broad role of accounting in business today, and the range of opportunities available
through a degree in accounting.
Orientation (two sessions)
We suggest you schedule two class periods to introduce the course to our students. The quality
of this orientation process is probably the best predictor of the course’s success. To learn how to
conduct these sessions effectively please see the orientation guide in the appendix (on page 41).
Value-Added Sessions (eight sessions)
At BYU, they hold eight required value-added sessions throughout the term. These sessions are
the only times BYU meets together as a class on a required basis. In these sessions, they apply
the core content that the students are learning from the software to real world scenarios and
applications. The topics of the eight sessions are:
1. The Importance of Financial Accounting in U.S. and Global Economies
2. Management Information Systems Today: Their Effect on Business and Accounting, and
Career Opportunities
3. Business Fraud, Ethics, and the Accounting Profession
4. The Importance of Tax Planning in Business Decisions and Career Options in Taxation
5. Financial Accounting Information, Stock Valuations, and Stock Market
Investing
6. Money, Family, and Other Considerations in Career Choices
7. Managerial Accounting: Current Trends in Practice and Career Opportunities
8. Key Elements in Successful Personal Financial Planning and the Value of an
Accounting Education
To learn more about what we do specifically in each session, please watch an online video by
going to the following address: http://www.accountingcds.com/video/qa/qa39.html. You may also
watch the actual sessions with our accounting software. We use these sessions on the software
for our online and Independent Study students. To access these sessions, please open the
accounting software, click File, Click settings, type FFFFFFFF in the curriculum code box, click
OK, click File, click Open Lessons, the eight sessions are now part of the lesson list.
We highly discourage instructors from using our eight recorded video sessions in their course.
Instructors should conduct these sessions live with their students. In addition, BYU created these
sessions for a very religious BYU student body. They refer to their church and faith several times
in these videos. Therefore, showing these sessions to other students outside of BYU would
probably be inappropriate.
Before each of these sessions, the instructor assigns students to read articles from the Wall
Street Journal and other sources and take an online quiz to assist in their pre-class preparation.
BYU also assigns a post-class quiz to encourage active participation in the presentation and
class discussion. Many students indicate that these eight sessions are the most relevant and
useful classroom experiences they have had in their entire college experience. To watch a short
five-minute video describing these required lectures, please go to the following address:
http://marriottschool.byu.edu/introaccounting
13
BYU often invites other faculty members, usually experts in the given topic area, to come in the
classroom and conduct the sessions.
The pre and post-class quizzes and current event articles are also available within our
Blackboard file we send to schools. However, if you choose to use our readings you must acquire
permission to use them from the publishers. Many schools already have this permission through
the various subscriptions they buy every year through their library.
Creating Your Own Sessions
Much of your time will be spent designing your own sessions. You may use our outline or create
a completely new set of topics. Due to the large number of students in the classroom, BYU can
only interact with them on a limited basis. You may have smaller classes, which enables you to
interact more with your students or have the students split into groups to work on corporative
assignments. The choice is yours.
Case Analyses
Some instructors decide to use this class time for case analyses. This helps students see how
the core content on the software directly applies to real-world scenarios. We believe this is an
excellent use of the session’s time.
We will be happy to assist you in developing these sessions in any way we can.
Other Class Sessions
At BYU, the only required sessions that students must attend are the first two days of orientation
and the eight required value-added sessions. All other sessions are optional.
BYU holds optional weekly review sessions (see the Student Responsibility & Additional
Resources section on page 20) of which about 10-15 percent of the students attended. In fact,
these review sessions can double as the standard lecture in a traditional model if a student
prefers the standard textbook/ lecture model (see page 21 for more information on this issue).
Alternate Models
Models contained below are variations of the Value-Added Teaching ModelTM. These variants
help strengthen student motivation and responsibility. These variants are by no means the only
possible variations.
Lab Model Variant
This is the model variant used at BYU-Hawaii. In this model, the class meets in a computer lab at
a specified time two or three days per week. Each student uses a lab computer and watches the
lessons assigned for that week. The instructor walks around the room and asks students if they
need anything clarified or any additional help. The instructor has the opportunity to interact oneon-one with each student and give more attention to those that are struggling.
Additional details:
 Designed for smaller class sizes
 Students take the 25 standard quizzes online and the standard 3 exams
 Class attendance is mandatory
Advantages:
 Helps instructor be more involved in students’ learning
 Allows the instructor to ensure their students are studying the material
Disadvantages:
14
 Sometimes it is difficult to find and schedule a computer lab large enough to
accommodate an entire class
 Uses more faculty time than standard model
Responsibility Model Variant
This model is a great model if your students need more motivation than provided in the Value
Added Model. This model runs the same as the Value-Added Model, except the quizzes are
provided in class rather than online. As discussed in the quiz section below, the quizzes are the
main motivational tool in this course. As you increase the quizzes’ point values, students are
more motivated to study the lessons and perform well. However, when you deliver the quizzes
online and increase the point value, students are more motivated to cheat. In this variant, the
instructor can allocate more points to the quizzes and deliver them in a proctored environment to
prevent cheating, thus providing an optimal motivational setting. The downside to this method is
delivering the quizzes and grading them is not as automated as an online delivery method.
Another distinctive attribute to this model is once the students are finished taking the quiz, those
students who performed well are allowed to leave the class. However, those students who did
not do well on the quiz must remain. This gives an added incentive to the students to perform
well on the quizzes.
This variant does take more time for instructors and students. Because you have to attend class
more often, you may not enough time to the hold as many value-added sessions as described
above. However, this model does provide more assistance to struggling students while allowing
higher aptitude students to learn without being held back by students who grasp the content at a
slower pace. This learning environment will make the good students feel more liberated, which
will likely lead to better performance, higher course evaluations, and recruitment.
A Q&A video clip on our website addresses this issue. To watch this clip, please go to the
following address: http://www.accountingcds.com/video/qa/qa15.html.
To learn more how the value-added model helps struggling students and inspires good students,
please watch a short video clip at the following address:
http://www.accountingcds.com/video/qa/qa38.html.
Time Motivator Variant
The Responsibility Model Variant above does present a small problem from an administrative
standpoint. When compared to the online quizzing system, distributing hard copies of the quiz,
grading the quizzes in class, recording the scores, and then ensuring certain students stay for the
lecture can be cumbersome. A possible solution is to modify this model slightly by keeping the
quizzes online and then requiring those who scored poorly to attend class or the optional review
sessions.
If the students study hard and perform well on the quizzes then they are not required to attend the
review sessions. This ability to save time can be a great motivation for many students.
15
II. Graduate Value-Added Teaching Model & Variants Described
Graduate Model A — MBA Value-Added Teaching Model
Brief Description: Students are accepted in the graduate/MBA program and arrive on campus.
The school requires them to take an introductory accounting class as one of their first courses.
Students use the accounting software to learn all the core content outside of class. When
students come to class, the instructor uses class time for application work and case analyses.
The goal is to help students apply the core concepts learned in the software to real-world
business decision-making scenarios or other application-based learning.
To learn more about the features and benefits of this model, please go to
www.accountingcds.com/learn/mba/mbamodel.htm.
Orientation (two sessions)
We suggest you schedule two class periods to introduce the course to our students. The quality
of this orientation process is probably the best predictor of the course’s success. To learn how to
conduct these sessions effectively please see the orientation guide in the appendix (on page 41).
Graduate Model A — Graduate Value-Added Teaching Model General Outline
We suggest you meet one or two times per week (we think three times per week is too much,
given the time commitment of the software lessons) given a 16-week semester and a 3-credit
hour course. Students should come to class prepared by watching the software and learning the
content in the assigned lesson.
We discourage instructors from using class time to re-explain the software lesson content. In our
experience, students will be less attentive to the software lessons if they know the instructor will
rehashed the content in the classroom. The software lessons present the material very well and
students should have little problem learning the material if they are diligent in their studies.
You may use class time for students’ questions relative to the content on the software; however,
we urge the instructor to allow specific questions only. General questions such as “I don’t
understand what was taught in the software,” is an indication the student did not properly study
before class. The students must learn to be responsible and devote adequate time to pre-class
learning. If the instructor is not firm on this principle and uses class time to review the software
material then the aggregate outcome of all students’ pre-class learning will diminish as the
term progresses— even good students will simply not see the value of pre-class learning
if the core content is rehashed in the classroom.
We recommend class time be devoted to topics and activities that help graduate/MBA students
understand how accounting concepts and ideas influence real-world business decision-making.
Therefore, class time can be used for a myriad of activities including but not limited to group
discussions of timely business topics, discussions of ethic and moral decisions in business, or by
using case studies to apply accounting concepts. Some instructors who use our approach spend
a lot of time developing these types of activities while other instructors spend very little. You need
to assess your situation based upon your students’ and school’s needs and your available time as
an instructor.
We can advise you on many options available for class time depending on your unique situation.
However, if you have a standard graduate/MBA course and decide to use our Graduate ValueAdded Model, we highly recommend a curriculum developed by Dr. Kay Guess PhD. at St.
Edwards University who uses our approach. This course uses six case studies (mostly Harvard
cases) to train students how to apply the core software content to real world scenarios. To learn
more about the details of this course, please see the syllabus on page 7251. Please note: we do
not supply these case studies. You will need to contact Harvard Publishing at
http://harvardbusinessonline.hbsp.harvard.edu/ to acquire these materials.
16
Graduate Model B — Graduate/MBA Distance-Efficiency Model
Brief Description: Once students are accepted, they must obtain the software. The student
moves through the course at their own pace, as long as they complete the course before arriving
on campus to start the graduate program. Schools have the option of using quizzes and exams to
assess learning. Once on campus, the student knows all the necessary material and is ready to
learn more advanced business concepts.
Alternate Models
Models contained below are variations of the Value-Added Teaching Model for undergraduates.
Their purpose is to instill more responsibility within students. However, graduate students are
usually much more responsible and therefore probably do not need added coercion.
Nerveless, we included these additional variants for your information and consideration.
Lab Model Variant
This is the model variant used at BYU-Hawaii. In this model, the class meets in a computer lab at
a specified time two or three days per week. Each student uses a lab computer and watches the
software lessons assigned for that week. The instructor walks around the room and asks
students if they need anything clarified or if they need any additional help. The instructor has the
opportunity to interact one-on-one with each student and give more attention to those that are
struggling.
Additional details:
 Designed for smaller class sizes
 Students take the 25 standard quizzes online and the standard 3 exams
 Class attendance is mandatory
Advantages:
 Helps instructor be more involved in students’ learning
 Allows the instructor to ensure their students are studying the material
Disadvantages:
 Sometimes it is difficult to find and schedule a computer lab large enough to
accommodate an entire class
 Uses more faculty time than standard model
Responsibility Model Variant
This model is a great model if your students need more motivation than provided in the ValueAdded Model. This model runs the same as the Value-Added Model, except the quizzes are
provided in class rather than online. As discussed in the quiz section below, the quizzes are the
main motivational tool in this course. As you increase the quizzes’ point values, students are
more motivated to study the software lessons and perform well. However, when you deliver the
quizzes online and increase the point value, students are more motivated to cheat. In this
variant, the instructor can allocate more points to the quizzes and deliver them in a proctored
environment to prevent cheating, thus providing an optimal motivational setting. The downside to
this method is delivering the quizzes and grading them is not as automated as an online delivery
method.
Another distinctive attribute to this model is once the students are finished taking the quiz, those
students who performed well are allowed to leave the class. However, those students who did
not do well on the quiz must remain and listen to a lecture. This gives an added incentive to the
students to perform well on the quizzes.
17
This variant does take more time for instructors and students. Because you have to attend class
more often, you may not enough time to the hold as many value-added sessions as described
above. However, this model does provide more assistance to struggling students while allowing
higher aptitude students to learn without being held back by students who grasp the content at a
slower pace. This learning environment will make the good students feel more liberated, which
will likely lead to better performance, higher course evaluations, and recruitment.
A Q&A video clip on our website addresses this issue. To watch this clip, please go to the
following address: http://www.accountingcds.com/video/qa/qa15.html.
To learn more how the value-added model helps struggling students and inspires good students,
please watch a short video clip at the following address:
http://www.accountingcds.com/video/qa/qa38.html.
Time Motivator Variant
The Responsibility Model Variant above does present a small problem from an administrative
standpoint. When compared to the online quizzing system, distributing hard copies of the quiz,
grading the quizzes in class, recording the scores, and then ensuring certain students stay for the
lecture can be cumbersome. A possible solution is to modify this model slightly by keeping the
quizzes online and then requiring those who scored poorly to attend class or the optional review
sessions.
If the students study hard and perform well on the quizzes then they are not required to attend the
review sessions. This ability to save time can be a great motivation for many students.
18
III. Distance Learning/Online Model Described
To learn more about the features and benefits of this model, please go to
www.accountingcds.com/learn/distance/distancemodel.htm.
Developing a distance-learning course with our accounting software is very simple. By reading
through the Distance-Learning Model syllabus, you can get a good understanding of how our
course works. This course runs much like any other distance-learning course. When a student
enrolls in the course, you will show them how to purchase the accounting software. They will go
through the accounting lessons taking quizzes and exams as they would in any online course.
You have the option of mandating other assignments as outlined in our syllabus (located in the
Appendix)
We suggest you use a course management website (Blackboard, WebCT, Etc) to communicate
with your students, provide quizzes and other information. Some instructors decide to use the
discussion forums within websites to talk with their students or to have students talk to one
another.
Going through the checklist and syllabus should provide you with everything you need to know to
setup your course. If you need any additional assistance, please contact us.
19
The section below is relevant to:
 Undergraduate on-campus models: Very Relevant
 Graduate/MBA on campus models: Somewhat Relevant
 Distance learning/online models: Little Relevancy
Student Responsibility & Additional Resources
One of the greatest benefits of these models is they allow you to give your students more learning tools
than they have ever had in the past. However, many students are initially skeptical this course will be a
good experience because they initially feel the course is all about the software— meaning, sometimes
they view the software as merely replacing the textbook or feel they paid tuition for an instructor and
received software instead. In reality, the software’s main benefit is to save valuable class time while
simultaneously providing excellent instruction.
Students must realize this course is all about giving them more tools than they have ever had before.
Students have the software, optional textbook, optional review sessions, one-on-one faculty assistance,
the accounting lab, Accounting T.A.’s, telephone hotline, email support, etc (a discussion of these
resources is provided below). The students choose how they want to learn. Even though it likely that over
95%percent of your students will only use the software and never use any of the other resources, they
MUST feel like there are several options for their learning.
The idea behind this increase in resources centers around the idea of student responsibility. The basic
premise is when all things remain equal, students who feel completely responsible for their performance
generally perform better, feel they are treated fairly, and like the course. Students, who feel lost and
unsure where to find additional assistance, often have poorer performance, blame weak performance on
the instructor, and dislike the course.
Therefore, one of the primary goals in a course is to help every student feel completely responsible for
the outcome of their grade. In a traditional model, instructors can emphasize this directive less because
college students should already know how to be responsible. However, this model is not traditional and
instructors should not require their students to adapt instantly to this new model.
Therefore, to create a successful course and to instill a sense of solid responsibility to your students, we
highly recommend instructors provide the two following items. These two items are the most important
aspects of a successful implementation. (1) An Effective Orientation: instructors should take time on at
the beginning of the course to guide the students through every aspect of the course. (2) Provide
Resources: Instructors should make available every possible resource within the budget and time
allowances.
20
The section below is relevant to:
 Undergraduate on-campus models: Very Relevant
 Graduate/MBA on campus models: Somewhat Relevant2
 Distance learning/online models: Little Relevancy
Orientation
We cannot over emphasize the importance of the orientation session(s) enough. Many instructors who
implement our model, approach the orientation process as they would the first day of any normal course
when they outline their syllabus with their students. Please do not do this. This model is often very
different from any other course your students have taken. They need assurance and guidance as they
approach this model. A good orientation session should leave the students excited about the course,
comfortable with the technology, comfortable with the course structure, and resolves all their questions
and concerns. In addition, students should leave with a firm understanding of the value-added approach
and their responsibilities in the course.
Orientation Guide
Because this implementation process is so crucial, we developed a special implementation video and
document that helps instructors make this day as effective as possible. The document is available in the
appendix. You can download the orientation video at www.accountingcds.com/links/orientation_video.htm
Resources
Before we outline all the additional resources available for your course, we want to share with you a few
thoughts regarding the psychological effect of these additional resources and the benefits of providing a
traditional-like model within the value-added approach.
Psychological Effect
The resources below are not only beneficial to your students as they learn the material but they also have
a profound psychological effect upon the students by dramatically increasing their sense of security and
responsibility. When a student feels they can receive help from additional resources, they immediately
feel secure and responsible for the outcome of their learning. BYU uses all of the following resources and
virtually never receives complaints from their students regarding the outcome of their grade. Interestingly,
over 90 percent of all students never use any of the additional resources — except for the exam review
sessions. Therefore, the primary benefit is not necessarily that students use the resources (although this
is important), but simply that the resources exist.
Probably only a small percentage of your students will ever use the additional resources; however, the
mere notion that the resources existence will greatly influence each student.
Mimicking a Traditional Model
One of the best attributes of the Value-Added Teaching Model is it accommodates for students who
prefer a traditional model with a textbook and follow-up lecture. By providing the optional textbook and
weekly review sessions (described below) students can experience a traditional model. At BYU, less
than 1 percent of the students choose this option. However, as noted in the preceding section, this option
has a huge psychological effect upon ALL students. When students observe they can choose which
method to learn from, they immediately feel empowered and responsible for their learning (even though,
virtually none of your students will ultimately choose this traditional method).
Students, who choose to complain, sometimes report our value-added model and software were too
radical for them to perform well. They further insist that if this model been more traditional then they would
2
Graduate students are typically more responsible than undergraduate students, and therefore require less coercion by their
instructor to perform well.
21
have performed better. These students are actually just seeking to blame their performance on
something else besides themselves. We ask these students if they read the textbook and attended the
optional review sessions, which would have provided them with the traditional model. Invariably, these
students fail to accomplish both of these items. When we remind these students that they can have a
traditional experience, they have little recourse but to admit their mistake, accept responsibility, and move
forward in the course.
Not only does this method instill more responsibility within your students, but it also provides an
alternative for students who genuinely choose to use the textbook and the follow-up lecture. Even though
only a few students would ever use this traditional method, we highly recommend you provide this
alternative because it will strongly benefit our course. In most cases, you do not need to do anything
extra, except inform your students of this option.
Outline of Additional Resources
Teaching Assistants & T.A. Lab: BYU provides an accounting lab for all its accounting students. This
lab is open for about 16 hours a day and is staffed by MAcc students and other upper-class men and
women in the accounting program. This lab is a great place for students to study and ask questions. BYU
provides about 18 computers in this lab thereby allowing students to watch the software and have quick
access to a T.A. if they need help.
With over 3000 annual accounting students and one instructor, a T.A. lab makes a lot of economical &
practical sense for BYU. Other institutions with smaller programs may find this option unrealistic.
However, there are many ways to reap the same benefits without sacrificing precious resources. For
example, you may want to consider at least one T.A. who has regular office hours and who can answer
students’ questions via Email.
Telephone Hotline: BYU provides a telephone hotline for its students to call for answers to their
questions. This phone is located in the T.A. lab and is answered by the T.A.s. In reality, the hotline is
more of a psychological confidence booster. Students actually use our hotline very rarely; however, they
know the hotline is always available. The hotline gives them the confidence to use the software at home,
knowing that if they need to ask a question they can call and get immediate assistance.
Email Support: Students can email questions to the instructor or T.A.s and receive timely responses
through email.
Instructor’s Office Hours: Instructors should explain to students that because the class meets less
often, they have more time to meet with students in their office. In reality, instructors will probably not see
students in their office much more than in a traditional model. However, the students MUST feel like the
instructor is readily available and interested in personalized attention.
Class Notes and the Learning Resource Packet: Students will find greater success in this course if
they write notes on a hard copy of the course notes. To access the course notes, students need to open
the accounting software, click on Resources> Lesson Notes, Problem, and Solutions, then select a
lesson.
Printing out the all the lesson notes for each lesson can become cumbersome. Therefore, we created the
Learning Resource Packet (250 pages), which serves as a summarized textbook and combines all the
class notes from every lesson and other printed resources such as sample exams, exam review topics,
and the financial practice set.
At BYU, they print this document and provide it to their students through their campus bookstore at their
printing costs ($10). We suggest you do the same and tell your students it is very important they buy and
22
use this document in their studies. To clarify, everything in the Learning Resource Packet is freely
available in the software in PDF form; however, it is our experience the students will use the printed
resource more if they can buy it in the bookstore or at a copy center.
When you decide to use the software for your course, you may freely copy the Learning Resource Packet
and provide it to your students; however, we only ask that you sell the document for the price of printing.
If your university bookstore is to provide the document then we allow a reasonable markup.
The Learning Resource Packet is available in the software or online at
http://www.accountingcds.com/learn/documents/Learning_Resource_Packet.pdf
Optional Textbook: The Introduction to Accounting software is a stand-alone product and does not
require textbook supplementation. However, if a student wishes to reference a textbook in connection
with their studies they may certainly do so. For those students, we suggest they use the “Accounting
Concepts and Applications”, by Albrehct, Stice, Stice, and Swain from Thomson South-Western. We
reference page numbers from this book in our syllabus so students who wish to read on a given topic may
do so. To access more information on this book, please go to
http://www.swlearning.com/ibc/albrecht9e/main.html
Students can also use the text if they want a more traditional experience. (See Mimicking a Traditional
Model on page 21).
Optional Weekly Review Sessions: BYU holds an optional weekly review session for any student who
wants additional help. Only about 10-15 percent of our students come to these sessions. One of the
teaching assistants teaches these sessions. BYU holds these sessions at the regular scheduled class
time.
We do provide some PowerPoint presentations and quizzes to help guide these sessions. Please see
the appendix for these materials.
Read the section above entitled “Mimicking a Traditional Model” on Page 21 to learn more how you can
use these sessions to mimic a traditional model for some students.
Optional Exam Review Sessions: We recommend instructors hold an optional review session before
each exam. At BYU, they hold one review session for all sections. Therefore, BYU schedules these
sessions either at night or on a weekend and typically last for a few hours. We provide exam review
materials to help guide these sessions. Please see the appendix for these materials on page 117.
23
Resource Summary Table3
Resource
Importance
T.A.’s & T.A.
Lab
6-9
(depending
on class
size)
T.A.’s
Telephone
Hotline
3
6-9
(depending
on class
size)
4-7
(depending
on class
size)
Psychological
effect
10
10
10
Email Support
7
8
Office Hours
10
10
Class Notes and
the Learning
Resource
Packet
10
10
Optional
Textbook
5
10 when
combined with
the weekly
review
sessions
Weekly Review
Sessions
10
10
Optional Exam
Review
Sessions
10
8
Summary
Having a place where students can go to get
immediate assistance is very helpful. If you
have a small class, office hours and maybe a
T.A. can suffice. If your class is very large,
then a T.A. lab is more important.
T.A.’s are a great asset if you have larger
course. They can manage the weekly review
sessions and staff the lab.
Like the textbook, the hotline is a
psychological tool. The phone may never ring,
but just having it available will make your
students feel more secure and responsible.
Email support is inexpensive to provide and
very helpful for students who have questions.
Students must feel that you are ready to help
them if they need assistance. Even if you
already have office hours, you will want to
strongly emphasis this to your students.
This is necessary. Students can print this
document from within the software. However,
because it is a large document we suggest the
school provides the document through the
bookstore or a copy center.
When you provide an optional text with
optional weekly review sessions, you have an
excellent psychological tool. Please read
Mimicking a Traditional Model Above for more
information.
The weekly review sessions are the single
most important resource you can provide to
your students; however, not for the obvious
reasons of reviewing core material. Weekly
review sessions with the text mimic a
traditional model, thus automatically putting
responsibility back on the students.
This is a great resource for all students to get
ready for the exam. You should strongly
promote these sessions to your students.
Scale from 1 to 10, with 10 being the most important
24
Class Size and Number of Instructors
BYU has about 3000 annual students enroll in the introductory accounting course. ONE instructor
teaches all these students. BYU has three main sections throughout the semester:
Section 1 (about 400 students) Morning section
Section 2 (about 700 students) Afternoon section
Section 3 (about 100 students) Night section. BYU calls this the night section, but in
reality, it is an online section. The class only meets once at the beginning of the term to
discuss the syllabus.
Other schools may want to use the software with smaller class sizes. The only real advantage to this
scenario is smaller groups for the value-added sessions. You can hold one optional review session for all
sections, or perhaps two to accommodate more students’ schedules.
One of the biggest advantages of the accounting software is the ability to run many students through this
course with only one instructor.
25
Assessment
Exams: There are three exams:
 Exam #1: (100 points): Covering Lessons 1 - 4 and the Financial Practice Set concepts, (33
multiple choice worth 3 points each with 1 point for simply taking the exam)
 Exam #2: (120 points): Covering Lessons 5 - 10 (40 multiple choice worth 3 points each)
 Final Exam: (150 points): Covering Lessons 11 - 15, (10 True/False worth 2 points each and 43
multiple choice worth 3 points each with 1 point for simply taking the exam)
As you can notice, our final exam is not comprehensive; however, you may want to change the final exam
to include questions from throughout the entire course. BYU allocates points to allow students to redeem
themselves if they do poorly on the first exam. You of course can reallocate the points in any way you
wish by either assigning a different point value to each question or varying the number of questions per
exam.
BYU does not use class time to administer the exams. They have a testing center that handles about
1000 students at any given time. Students can take our exams on any day throughout the term, as long
as they do not take the exam after the deadline as described in the course syllabus.
Because BYU keeps their exams under tight security, we do not provide them in this document. To obtain
our exams, please email us at info@accountingcds.com. Please use your university email account so we
can verify your identity.
Quizzes
Instructors often ask us how BYU keeps their students moving through the course at a regular pace.
While simple in nature, the secret is online quizzes. The only way to make students go through the
accounting software at a regular pace is to make their efforts —or lack thereof— affect their grade.
Therefore, BYU quizzes their students frequently throughout the course.
When BYU first started this course several years ago, they gave one quiz per lesson, each quiz having 10
questions. They instructed their students to complete each quiz about every six days as directed by the
course syllabus. BYU also told the students they must complete the quiz by midnight of the given day or
they lose all the quiz points.
Unfortunately, BYU discovered a problem with this method. With some lessons taking over three hours to
complete with a good level of comprehension, students were waiting until the last moment and moving
through the lessons too fast so they could complete the quiz before the midnight deadline. Students’
performance on the quizzes was poor, which carried over to the exam scores as well. Students could
have remedied this problem by dividing their workload over a few days or allocating a several hours to
study a lesson. Unfortunately, most undergraduates are not responsible enough to study in this manner.
To remedy this problem, BYU restructured the 15 quizzes into 25 smaller quizzes (five questions each).
BYU then directed their students to complete a quiz about every half lesson as indicated by the course
schedule. In this scenario, students only had to allocate about 1.5 hours of time to watch the accounting
software before completing the quiz. Fortunately, this small change fixed the problem. Students
performed much better on the quizzes and the exams. We suggest you quiz your students with the same
frequency.
While online quizzes are tremendously simple to distribute to a large class and even easier to score, they
have one inherent disadvantage — students can cheat on them. Because online quizzes are not
proctored, some students will do whatever they can to perform well on the quiz — even if that means
being dishonest. To combat this problem, instructors will sometimes design pooling systems, where they
pull each question from a large pool of questions. While this system does help inhibit students from
26
copying each other’s work, it does not divert students from referencing their notes, a text, or in this case,
the accounting software while taking the quiz. Another way to fight this problem is to time the quizzes.
Because referencing notes and other forms of cheating can sometimes take more time than just pulling
the information from one’s brain, timing the quizzes can work to a limited degree. BYU allows 5-10
minutes per quiz; however, you may want to reduce that number (most of our quizzes only take about 3
minutes to complete). BYU also tells the students on the first day of class that if they see a student
performing very well on the quizzes and performing poorly on the exams then they reserve the right to
lower the student’s quiz scores.
Remember, the primary purpose of the quizzes is to motivate the students to watch and learn the
software content. Therefore, with all advantages and disadvantages considered, BYU decided to allocate
enough points to the quizzes to motivate the students to watch the accounting software, learn the
material, and complete the quiz but not enough to affect their grade seriously. BYU wants the majority of
the students’ assessment points to come from the exams in a proctored environment. At BYU, the
quizzes make up about 17 percent of the final grade, which seems to be about the right percentage.
However, if you decide your students need more incentive to motivate them properly to learn the core
content, then you may want to attribute more points to the quizzes (perhaps up to 25-30 percent).
However, as you increase the point value of the quizzes you also increase the likelihood the students will
cheat.
Therefore, if you want to increase the value of the quizzes to motivate your students more and combat
cheating simultaneously, we suggest you consider the Responsibility Model Variant described on page
20.
BYU also allows students to drop seven quizzes to accommodate for students who perform poorly on
some of the quizzes, do not take the quiz (for whatever reason), or think a question is ambiguous.
Because we keep the quizzes under tight security, we do not provide them in this document. To obtain
our quizzes either in hard or electronic Blackboard form, please email us at info@accountingcds.com.
Please use your university email account so we can verify your identity.
Tips to Hinder Cheating With Online Quizzes
 Warn students if a disassociation is observed between quiz scores and exams scores,
the administration reserves the right to lower the quiz scores.
 Use a pooling system so quizzes vary from one student to another.
 Time the quizzes (less than 5 minutes is reasonable for many of our quizzes)
 Make all or some of the quizzes available at a specific block of time— perhaps just prior
to your regular scheduled class time. This hinders students from being able to work in
collusion. This technique is especially useful in the Time Motivator Variant (on page 18).
Some course management software does provide this feature.
27
Quiz Schedule
In the past, students sometimes became confused on which quiz corresponds to a given lesson segment.
For example, quiz #6 corresponds to the first half of lesson 4— not lesson six. While the course schedule
within the syllabus (on page 63) delineates this distinction clearly, students sometimes take the wrong
online quiz. To remedy this problem, we developed a simple color-coding system (see the picture below).
Most lessons4 have two colors (red and blue), which identifies part A and part B of a lesson. The colored
sections designate the topics covered in the corresponding quiz. In addition, we separated the lessons in
a similar manner for the Practice Module and the Glossary. Instructors should make sure their students
understand this feature.
If you do not want to use our quizzes, have your students turn off the color coding system by clicking File
> Settings and uncheck the Enable setting.
4
Some lessons have only one color because there is only one quiz for that entire lesson (see lesson 7).
28
(Note: This information is also in the syllabi. Make sure your students understand this
information before starting the course. Students should pay particular attention to the
Homework Problems, the Glossary, and the Practice Module.)
Tips to Performing Well in This Course





Study Hard and Actively Participate: As with any subject, the more you study the better you
will perform. Be an active participant as you watch the lessons. Students who sit back idly and
just casually watch the lessons do not perform as well. Use the provided controls to stop the
lessons to take notes or rewind difficult topics to review them again.
VSP: Make sure you are responsible with the Variable Speed Playback controller. Setting the
speed too high just to finish faster is not responsible.
Homework Problems: Although the homework problems in each lesson will not be submitted or
graded, your ultimate success on quizzes and exams will be directly correlated to your ability to
understand and do the homework problems on your own. Because homework solutions and
explanations are provided, many students are tempted to simply refer to the solutions rather than
hammering through a problem on their own. This is a serious mistake. The best learning takes
place when students work through problems on their own before looking at the provided solution.
You must be able to understand and do these homework problems on your own without
references to do well on the exams or quizzes.
Take Good Notes: Make sure you have a hard copy of the lessons notes (or Learning Resource
Packet) and take written notes when you are watching the lessons.
Seek Assistance: If you are having difficulty, seek additional assistance by attending the review
sessions or talk with your instructor or T.A.
Do the Following Before Taking a Quiz or an Exam
 Homework Problems: Make sure you can answer and feel comfortable with every homework
problem in the table of contents in each lesson.
 Glossary: Open the Glossary and make sure the “By Lesson” button is depressed. You should
know the definitions of every word in the section(s) you are studying. Clicking the blue
hyperlinked words will help you learn the definition of a word by establishing context within
another definition. See picture below.
 Practice Module: Open the practice module and work through each problem in the section(s)
you are studying. Take time to work the solutions on paper and then review your work by clicking
on the “Show Answer” button. See picture below. If you answer a question incorrectly, review
that topic in the lesson again.
 Review Sessions: Attending the exam review sessions is an excellent way to prepare for the
exams.
 Review Notes: Review your notes just prior to taking a quiz or exam.
 Review lessons: Go through each line in the table of contents and make sure you are
comfortable with every topic. Some students find great success by reviewing the lessons at the
highest attainable VSP speed.
 Review Slides: By clicking the next and back buttons, you can move through the lessons and
review the slides. If you find a slide you need to review, click on the synchronize button to
synchronize the video to the slide.
29
Glossary
Practice Module
30
Managerial and Financial Breakup & Additional Topics
BYU combines financial and managerial topics into both of their introductory accounting courses. To
learn why BYU does this, please watch the undergraduate video presentation by going to
http://www.accountingcds.com/learn/undergraduate/undergraduate.htm and clicking on Play
Presentation.
We feel very strongly about this content restructuring. We believe this model provides a better
pedagogical model for retained learning and enhanced recruitment. We also believe this model allows
departments to restructure their courses, which can save precious departmental resources. Ultimately, a
decision to change this content structure will take time and departmental approval.
Regardless if you decide to make the change, the accounting software continues to be the best learning
tool option, even within the separate financial and managerial content structure. Many schools discover
Set #1 covers all the financial topics they need except for a statement of cash flows lesson. For this
reason, we added a statement of cash flow lesson to Set #1, which you can view by “unlocking” the
lesson. To unlock this lesson please see page 50.
You may cover topics in your financial course or managerial course that Set #1 does not cover, which you
must have in your course. If this is the case, please tell us what topics you need. Oftentimes we can
accommodate you by bundling those extra topics with Set #1.
Technical Support for Software
We went to tremendous strides to make sure our software is as error free as possible. However, on
occasion students may have a technical issue. Our goal is to divert every technical question way from
instructors. To contact technical support, students should log into our site at
www.accountingthelanguageofbusinss.com > click login to your account > enter login information > user
logs into site > click the help tab > follow directions to contact technical support.
31
Trial Period
The best method to assess if the accounting software is a good solution for your course is to put it to the
test with your students. We will provide the accounting software to your students at a discounted rate.
You then will be able to assess if they are a better learning tool than a traditional textbook and if they
provide more classroom time for the value-added classroom experiences.
Price:
We can provide the software to your students at a significant discounted price for the first semester as
you conduct your trial.
Trial Methods:
Instructors typically choose to conduct the trial in one of the following methods:
1. Section Trial: In this trial, instructors take one of their sections and implement the accounting
software model. They then compare the outcome of the software section with other concurrent
sections using a traditional model.
We strongly recommend using this method for a few reasons. Students and instructors usually
observe this method as more organized and fluid than the hybrid model below. Additionally,
instructors who use this method find it easier to evaluate the results of the trial because the data
is not convoluted by other variables (For a short discussion on this issue, read the “Evaluation of
Course” section below, located under the Tips and Possible Pitfalls heading).
This method also allows the instructor to implement the actual Value-Added Model, at least in
part, and observe how it works. For the trial period, instructors do not need to create all the
value-added sessions; however, they may want to create a few to observe how they influence
their students.
As you decide which trial method to use in your course, we recognize this method may give you
some apprehension, especially if you have limited interaction and knowledge of our accounting
software and model. Therefore, we recommend you read this document and interact with our
team to help you feel comfortable with our model. This preparatory process may take a few more
weeks than the next method, however we feel this method delivers the best results.
2. Hybrid Textbook & Accounting Software Trial: Sometimes instructors choose to conduct the
trial by using the accounting software and the textbook in the same course, thus allowing them
and their students to compare the accounting software along side the textbook. While this method
does certainly work and can give you an excellent demonstration of our model, we do not
recommend it as readily as the first method. We have noted some of our reservations for this
method above. In addition, we should reiterate this method might amplify the problem associated
with your students comparing the relative effort required between the accounting software and
textbook models (discussed below in the “Evaluation of Course” section). If you choose to try this
method, please make sure you pay particular attention to the trial guidelines delineated below.
Trial Guidelines and Possible Pitfalls:

Experimentation: NEVER tell your students you are using the accounting software on an
experimental basis. Students who feel they are part of an experiment often rebel against this
model, especially if they perform poorly in the course. Students who feel experimented upon
often relinquish their responsibly in protest. You must portray to your students that this is the
establish method for this course.

Isolate Software From Textbook: As you develop your syllabus under the hybrid trial method,
you need to develop a course schedule that isolates the accounting software from the textbook,
at least for part of the course, so you can evaluate the accounting software without the inference
32
of other variables. Instructors should not make both the text and the accounting software
available to the students and let the students choose which learning tool they want to use for any
given lesson. This method is confusing for the students and difficult to evaluate.
For example, if there are 15 lessons in the course, perhaps the students use the accounting
software to learn all the core content for lesson 1-8. We suggest to instructors to never re-teach
the software content in class, except for optional review sessions. If the students know they can
get the core content rehashed in class, they will not watch the accounting software lessons.
However, if your only goal is to directly compare the textbook with the accounting software and
you do not want to change your course structure drastically, then you may proceed with the
rehash lectures in the classroom; nevertheless, we discourage this use of the software. When
students use the software, class attendance should be less frequent and focused on applicationbased analysis of the core content.
For the other lessons 9-15, students can use the textbook and come to the follow up lecture. We
do not suggest you alternate between the text and software for each successive lesson. This
rapid switching may inhibit contextual growth of the subject. Rather, we suggest students use the
software in at least 3 to 4 lesson blocks.

Student Questions: Student questions should be answered through the optional review
sessions and other additional resource channels. We suggest instructors not use class time, or a
limited amount of time, to answer questions relative to the accounting software content. Class
time should be used for value-added topics. BYU never answers questions in their eight required
class periods — they simply do not have enough time. In addition, this forces the students to
take more responsibility in their learning.
As you are conducting your trial, you may still have enough class time to answer questions
without any serious drawbacks. However, we suggest you only allow students to ask specific
questions. Questions like, “I don’t understand the accounting software” is not an appropriate
question and means the student did not truly study.
Our ideology is not to inhibit students from asking questions— quite the contrary. True learning
comes through good questions. However, some settings are not as conducive for questions as
other settings.

Required Review Sessions: Some instructors decide to hold required class sessions to review
the accounting software material. While, we do not ideologically support these types of sessions,
this option can work very well with your course depending on the type of student you have.
However, you run the risk of students not truly studying the accounting software lessons if they
know they will receive the content in class.
Therefore, we suggest students direct these sessions through questions to the instructor.
Understanding answers to questions requires students to have a pre-established context, which
they can only obtain through proper studying of the accounting software lessons.

Evaluation of Course: As you judge the effectiveness of this course, make sure you are not
deceived by lurking variables. If you base the success of this course upon the evaluations from
students, be careful about the types of questions you ask your students and the method of
interpreting the responses. For instance, in a traditional model, instructors require students to
read the text before coming to class to prepare for the lecture. However, in reality, students
seldom read the text, at least with any serious level of depth, before coming to class. As you
have observed, this phenomenon is unfortunately plaguing higher education in nearly every
subject, especially in undergraduate education.
We designed the accounting software to replace the pre-class textbook reading and the in-class
follow-up lecture. Therefore, when students are confronted with the notion that they actually have
to use the software to study outside of class, some may resist. In effect, you have just added 30+
hours of homework to their schedule— even though they should be studying at least this many
hours under a traditional model.
Therefore, when you ask your students at the end of the course if they liked this method over a
standard textbook-lecture approach, and some respond in the negative, you must be very careful
33
on what they are actually reporting. It is highly probable they are saying they prefer the traditional
model because they can more easily shirk responsibility. They may have learned better with the
software, but due to the forced increase of responsibility, they may initially withdraw away from
this model.
By the way, as your strength of developing and delivering the value-added sessions increases,
this issue will fade dramatically. The more students feel benefited in class by good value-added
sessions, the more satisfaction they will have in the course.
As you analyze your trial period be watchful of spurious data. Most students love the accounting
software and have no issue adapting to this new model. However, we feel it necessary to provide
you with as much information as possible to prepare you for any scenario.
Trial Summary:
 Each student will receive a discounted copy of the software for the first term of the trial.
 You do not need to change your model of teaching to evaluate the accounting software.
 Students can use the accounting software along with your standard textbook to evaluate the
accounting software.
 You are not obligated in any way to use the accounting software in your course after the trial.
 You determine the amount of contact you want with us.
Request a Trial
Please contact us at trial_program@accountingcds.com and we will arrange the free trial.
Using the Accounting Software in Campus Computer Labs
Allowing students to use the accounting software on campus computers can be a great benefit to their
studies. Some students appreciate the convenience of campus labs while other students, who do not
own a computer, use the labs more out of necessity.
To make the accounting software available in the labs, we will need to talk with your lab technicians.
Please have them contact us at technical_support@accountingcds.com or have them call 1-800-5833840 x803. We can usually help the technicians setup the labs in just a few minutes.
.
34
Possible Pitfalls and Important Notes
These possible pitfalls and important notes come from years of working with various schools across the
country. Fortunately, these problems are easily fixable by following the counsel below. However, if one of
these problems is left unchecked, severe consequences can result. Some of these items were
mentioned previously in this document; however, we feel it is important to reiterate them again.
Blame:
Concerning students’ blaming their performance on something besides themselves, the following
statement is commonly heard, “I did poorly in this course (or on an exam). Had this been a traditional
model, I would have done much better.”
Response:
“If you are looking for a traditional model, then did you read the textbook and go to the optional weekly
review sessions? Because if you had, you would have found this course to be much like a traditional
model.”
Students who perform poorly in this course will seek to blame their performance on some aspect of the
course. They will contend that had the course been a traditional model (textbook/ lecture approach) they
would have performed well. The fastest way to make these students realize they are responsible for their
performance is to ask them if they read the optional textbook and attended the optional review sessions.
If they did, then they would have experienced a traditional model. Almost invariably, students who try to
blame their performance on the course do not attend the optional sessions. This is because these are
poorly motivated students who view optional class time as “no class time.” What is great about this model
is if a student wants a traditional textbook/lecture course then they can have it. Unfortunately, poorly
motivated students perform badly regardless of the teaching model. By conducting optional review
sessions, you give the students no excuses for their performance.
Students may try to blame their performance on other issues within the course. However, we designed
each additional resource as a tool to combat each excuse or complaint. Simply remind your students
they can always find help if they are truly seeking it.
Bad Attitude by Faculty: If any faculty member has a negative attitude towards this course and displays
their opinion in any way toward the students then this course will greatly suffer. Students will initially feel a
little burdened because this course requires more out-of-class learning than other classes. If the students
feel the instructor does not like this course then they will almost invariably dislike the course. This will
cause the students to not work as hard and blame their performance on the accounting software or lack
of interaction with the instructor. This is why the enthusiasm of the faculty is paramount in implementing
this course.
Course Experimentation: If students feel the instructor or department is conducting an experiment to
observe how this model works, then this course is doomed for failure. You must approach this course as
if this is the established method for teaching this class.
Students may feel you are using the accounting software and this model to get out of work. You
must show the students that despite the lack of regular class sessions you are very occupied by the daily
functions of this course. They must understand by learning the core content outside of class, you are able
to use class time for value-added material. Furthermore, this model allows the instructor to work one-onone with the students who desire further help. Instructors may want to address this concern up front with
their students.
Instructors should also post regular messages on the course website to communicate with their students.
This is a great way to maintain a connection with your students despite the lack of frequent live
interaction.
35
Despite your portrayal, students may feel this course is only about the accounting software. This
is actually a common problem. Sometimes students view the accounting software as just merely replacing
the textbook or feel they paid tuition for an instructor and received accounting software instead. Students
must realize this course is all about giving them MORE tools than they have ever had before. Students
have the accounting software, textbook, optional review sessions, one-on-one faculty assistance, the
accounting lab, etc. The students choose how they want to learn. Even though it likely that over 95%
percent of your students will only use the accounting software and never come to the review sessions,
they must feel like there are several options for their learning.
36
How to Use the Software
It is very important as an instructor to be well versed on how the software operates. The best way to
learn how the software works is to use it for a while. We recommend you watch the orientation video
(available in the Orientation Guide on page 41) as it shows how to use the accounting software in detail.
In addition, we have included many of the functions of the accounting software for your reference. This
information is also included in the software by clicking the round Help button from the main program
interface.
Software Interface
1. Video Window - This is the video portion of the lesson. This window has the ability to double in
size. To change the video to double size, Click "View" and then click "Double size video."
2. Fast Forward - This button fast-forwards the video at about 10 times the original speed.
3. Fast Rewind - This button fast rewinds the video at about 10 times the original speed.
4. Video Status Window - The status window tells the user the present state of the video and the
video now counts in real-time.
5. Time Bar - The time bar moves in real-time as the video plays. The user can also manipulate the
time bar with ease.
6. Play/Pause Button - The play and pause button are combined.
37
7. Stop Button - This button stops the video and returns the time bar to the beginning of the video
segment.
8. Ten Seconds Back button - This button moves the video back ten seconds.
9. Synch Button - This button synchronizes the video with the current slide. Students can click the
next or back buttons to find a particular slide. Then they can click the Synch Button to hear the
video associated with that slide. This feature is particularly useful for reviewing and studying.
10. Volume Control Slider - This slider controls the volume of the presentation.
11. VSP (Variable Speed Playback) Module- This integrated module allows the user to increase or
decrease the presenter's rate of speech without distorting the pitch of the voice. The module can
be set to 2.0 (twice the normal rate) to .5 (half the normal rate) This module only works properly in
Windows XP with Windows Media Player 9 installed. If a student has windows 2000 or an earlier
edition, they can install the Enounce plug-in and achieve the same VSP results.
12. Table of Contents - This is an outline of the content in the lesson.
13. Help Button- This displays the user guide
14. Practice Module Button- This displays more homework problems to help students with their
studies. They should be able to answer all the questions correctly before taking a corresponding
quiz or exam.
15. Glossary Button - (see below for more information about the glossary).
16. Calculator - This button loads the internal program calculator. If you desire, you can set the
program to load the default Windows calculator in the settings menu when you click this button.
17. Close - This button shuts down the program.
18. Quiz Information Legend – This feature helps students to know what topics are in each lesson
segment and when to take a quiz. Please see page 28 for more information.
19. Slide Window - This is the FlashTM animation window.
20. Back Button - This button causes the slide window to show the previous slide.
21. Next Button - This button advances the slide window to the next slide.
Menu System
Below is a description of each item under in the menu system.
File







View




Open Lesson - This lists available lessons. Click on a lesson title to view the lesson.
Open Session - This allows the user to load a previously saved session.
Save Session - This allows the user to save their session so they can return later to the exact
spot where they left off.
Settings - This loads the Settings menu. In the Settings menu, a user can turn the VSP module
on or off, choose another calculator, and adjust many other settings.
Recent Lessons - This lists recent lessons the user has viewed.
Recent Sessions - This lists recent sessions the user has saved.
Exit - This closes the program.
Double-size video - This doubles the size of the video. This is very useful for monitors that have
very high resolution.
Glossary - This loads the glossary. See page 30.
Calculator - This loads the calculator.
Practice Module - This loads the practice problems module, which will help you test your
knowledge of the lesson content. See page 30.
Resources
Please note: to load the documents (PDFs) in this menu, Adobe Acrobat must be installed.
 Company Website - This loads our website in a browser.
 Lesson Notes, Problems and Solutions - This list the lesson notes, problems and solutions for
each lesson. Click on a title to load the document.
 Learning resource Packet - This document combines all the PDFs into one body.
38



Help




Financial Practice Set - This list the financial practice set and solutions. Click on the title to load
the document.
Exam Topics - This list the three exam topic documents. Click on a title to load the document.
Sample Exams - This list the three sample exam documents. Click on a title to load the
document
Help - This loads the Help window.
Beta Feedback - This function loads a beta feedback form in Microsoft Internet Explorer. Please
use this form if you notice a bug with the new version or if you have an idea that will enhance the
program. Your feedback is greatly appreciated.
Send Diagnostics - This function is helps us diagnose your problem.
About - This displays the developmental team and version number.
39
Appendix
COURSE ORIENTATION GUIDE ........................................................................................................................ 41
UNLOCK STATEMENT OF CASH FLOWS AND VALUE-ADDED LESSONS ON SET #1 .............................................. 50
SAMPLE SYLLABI ........................................................................................................................................... 51
I.
Sample Undergraduate On-Campus Syllabus .......................................................................... 51
II.
Sample Graduate/MBA Syllabus ............................................................................................... 72
III. Sample Distance Learning/Online Model Syllabus ................................................................... 84
TOPIC BREAKDOWN FOR SETS 1 & 2 ............................................................................................................ 103
ACCOUNTING SOFTWARE TIME COMMITMENT ............................................................................................... 111
LEARNING RESOURCE PACKET..................................................................................................................... 113
VALUE-ADDED SESSION POWERPOINT EXAMPLES ........................................................................................ 114
OPTIONAL W EEKLY REVIEW SESSION MATERIALS ......................................................................................... 115
ASSESSMENT .............................................................................................................................................. 116
EXAM REVIEW DOCUMENTS (INTENDED FOR EXAM REVIEW SESSIONS).......................................................... 117
40
Course Orientation Guide
Business earning Software, Inc
Introduction
Thank you for taking time to read this guide and watch the accompanying video. This document and
video explain how to introduce BYU’s accounting software and the Value Added Teaching ModelTM to
your students.
We CANNOT emphasis enough that much of the success of this course is predicated upon an effective
student orientation process. Schools who adopt our program are asking their students to change the way
they usually approach education. While this course gives students more learning tools than they have
ever had before, it does require them to take more responsibility for their education. Students may initially
be inclined to resist this responsibility. However, by shifting the focus from the increase of individual
responsibility to the exciting learning environment, these students will perform well and will be excited by
the advantages this model provides.
We strongly counsel instructors to view this video in its entirety and then review it as needed.
We provide the orientation video in two formats. The first is a Windows Media file, which you can
download immediately by clicking the following link: www.accountingcds.com/links/orientation_video.htm.
The second is a standard DVD, which we can ship to you. Please contact us at info@accountingcds.com
for this DVD.
Important notes:
1. Religious Aspect of Video: Brigham Young University is a very religious institution.
They taped this video live in front of actual BYU students on the first and second days of
class. As they converse with their students in this video about ethics, morals, and
character, they make a few references to their faith, their university Honor Code, and
other aspects of their church. After some consideration, we decided not to remove these
references. We feel there is an inherent value to other instructors who view this video to
see an accurate portrayal of exactly how BYU appeals to its students as they explain the
aspects of this course. Our hope is other instructors will find this video helpful as they
tailor their presentation to appeal to their students at both religious and secular
institutions.
2. Guide Changes: We produced this video and guide several years ago and a few items
have changed. The most important change is how students purchase, download, and
install the accounting software. Please seeon page 10 for these directions.
3. Graduate and Online Models: We produced this guide and video for an undergraduate
model. If you are developing a Graduate/MBA model or distance learning/online model,
you will need to make some obvious adjustments to the orientation session.
41
Class Orientation Sessions
We strongly suggest you use two class periods for the orientation process. At BYU, they use two 80minute class periods to accomplish this objective. The reasons for two class periods are due to the two
assignments given on the first day.
Orientation Objectives
We have outlined seven main objectives divided between the first two days of orientation. We strongly
suggest you accomplish each objective. In addition to these objectives, many other smaller objectives
exist that if accomplished will greatly add to this course. You can find those other objectives on the
Orientation Checklist below. You may also watch how we meet all the objectives by viewing the video.
DVD Chapters
Next to many of the objectives and explanations, you will see a DVD chapter number (if you plan
watching video via the Windows Media file then please see the next paragraph). This number refers to
the DVD chapter that contains a demonstration of how we accomplish this objective. Please use the
forward and back buttons on your DVD player to navigate to the correct chapter. We demonstrate some
objectives throughout the video and therefore do not necessarily correlate to any particular segment.
Additionally, we may identify one or two main chapters that reference a given objective; however, this
does not suggest these chapters are the only references to that objective. Therefore, it is best to view the
entire video and then use the chapters for review.
Chapter Reference
If you plan to watch the video via the Windows Media file then you will not be able to reference the video
by chapters. Instead, you will need to reference the video by the time counter. Please refer to the
Chapter Reference section on page 48 to find the corresponding time code for each chapter. For
example, if you wish to view chapter 47 then navigate in the video to 1:24:14 (1 hour, 24 min and 14
seconds).
Day One Objectives
Objective One: Excite the students about this course.
Objective Two: Introduce and demonstrate the Introduction to Accounting software.
Objective Three: Introduce yourself and build a rapport with the students.
I.
Objective One: Excite the students about this course. To accomplish this objective effectively
the students must understand the following:
 An accounting course is applicable to all students regardless of their intended major.
- Students must understand that an accounting course is one of the most applicable
courses they will take in their college experience regardless of their major. The
information they learn in this course will immediately influence their lives for good.
(DVD chapters 6, 7, 10 & 11)
- Students become much more excited about any subject when they can see how the
information they are learning is immediately applicable to their lives. (DVD chapters
14. also review 45, & 46 in day two’s presentation)
 A degree in accounting is NOT specifically designed to produce accountants but
rather business decision makers and business leaders.
- All students will at sometime in their life become business decision makers
regardless if they ever own or manage a business. Whether they ultimately become
an executive of company, start their own business, or just plan for their retirement
they will need to become savvy with the language of business concepts learned in
this course. (DVD chapter 11)
- The instructor must abolish and rebuild the student’s current paradigms of
accountants and the accounting profession. Most students initially believe the
accounting industry is primarily centered around taxes, “bean counting”, math, or
other misconceptions. This paradigm is very damaging and if not corrected can
affect the success of this course. (DVD chapters 9 & 10)
42

This course will allow students to see the depth and breadth of the accounting
world. Additionally, the accounting software create an exciting and efficient
learning environment.
- In day two’s presentation, you will discuss the details of the Value-Added Teaching
model. However, today you will want to briefly mention how this model works and the
benefit to students. (DVD chapters 14. also review 45, 46 & 47 in day two’s
presentation)
II. Objective Two: Introduce and demonstrate the Introduction to Accounting software. To
accomplish this objective effectively the students must understand the following:
 The students must realize that the accounting software are an extraordinary tool
designed to make their learning faster and more effective. (DVD chapter 14)
- The instructor must explain to the students that the accounting software do a better
job at explaining the core content compared to a standard lecture approach.
- The accounting software allow students to go at their own pace. In addition, one
student is not held back while a classmate needs more time to comprehend the
material.
 Students should understand that this course gives them more learning tools than
they have ever had before.
- The students must realize that while the accounting software are the best learning
tool, they are not the only tool for learning the core content. Students can use the
optional textbook, TA lab (if available), optional review sessions, instructor support,
etc. Students DO NOT just have a new learning tool—now, they have MORE tools
than they have ever had before. This is one of the biggest issues that must be
communicated to the students. (DVD chapters 14. Also review 32, 33, 45, & 46 from
day two’s presentation)
 Students need to know how all the leaning tools work on the accounting software
and how those tools enhance their learning.
- Demonstrate the variable speed playback tool (Enounce or the integrated VSP
module). Show students how their learning is maximized through this tool. (DVD
chapters 21 & 22)
- Demonstrate the play, stop, ten-seconds-back button, and synch button. (DVD
chapters 20, 25, 26, & 28 )
- Demonstrate the Next and Back buttons. Show the students how these buttons are
helpful in reviewing material and self-testing. (DVD chapter 27)
- Demonstrate the glossary. Show students how the glossary is like a mini-textbook
with expanded definitions. Explain that before they take a quiz they should know all
the vocabulary words associated with that quiz. (DVD chapters 42 & 43)
 Students must know how homework is accomplished.
- We suggest you demonstrate the homework by showing the students problem six in
lesson two. (DVD chapter 35)
- Demonstrate the Answer, Hint, and Walk Through Buttons. (DVD chapters 36, 37, &
38)
- Explain how the Walk Through is much more comprehensive and helpful than a
traditional course. (DVD chapter 38)
- Explain to students why the homework is not graded. They must realize that this
requires a significant amount of discipline and responsibility to make sure they
understand the concepts covered by the homework. (DVD chapters 40 & 41)
- Warn the students that many students perform poorly on the first exam because they
either do not take the homework seriously or think they know how to accomplish the
homework without actually doing it on their own. (DVD chapters 40 & 41)
III. Objective Three: Introduce yourself and build a rapport with the students. DVD chapters 2, 12,
& 79) To accomplish this objective effectively the students must understand the following:
43

Students must feel the instructor is their friend and available if they need help.
- Because this course has the ability to meet less often than a traditional course,
students can easily feel abandoned by the instructor. If this occurs, the
repercussions can be extremely detrimental to the success of this course. The
students must feel you are dedicated to their education despite the lack of regular
direct interaction.
- The fastest method we have discovered to building a good initial rapport with the
students is to take several minutes to introduce yourself and explain why you became
interested in accounting and why you are excited about this course.
- Explain to students that this course allows you as an instructor to spend less time in
the classroom, which frees up time so you can have more one-on-one interaction
with the students outside of class in your office.
- Tell students that you are excited for students to come to your office and ask for help.
Chances are you will not have any more students actually come to your office than
compared to a traditional course.
- What is important is that the students feel you are waiting and eager to help them.
- Do not allow students to have a legitimate excuse that you were not there to help
them. The students that perform poorly in this course almost invariably choose to
blame their performance on some aspect of this course. Typically, they try to blame
the lack of contact they had with the instructor. If the instructors truly make
themselves available then the students will not be able to honestly blame the
instructor for their poor performance.
Day one Assignments (to be accomplished before day two’s class period)
1. Have the students read the entire syllabus. (DVD Chapter 13)
2. Have the students obtain the Introduction to Accounting software from the Bookstore and get
them working on their computer or a lab computer. (DVD chapter 16)
Day two Objectives
Objective Four: Make sure the students have tried to get the accounting software to work and know
where to get help if they have trouble.
Objective Five: Introduce the Value-Added Teaching Model.
Objective Six: Introduce the course website.
IV.
Objective Four: Make sure the students have tried to get the accounting software to work and
know where to get help if they have trouble. To accomplish this objective effectively the students
must understand the following:
Student must know where to go for help if they are having technical difficulty.
V.
Objective Five: Introduce the Value-Added Teaching Model. To accomplish this objective
effectively the students must understand the following:
 Relate to the students that the Value-Added Teaching Model is the best and most
exciting approach for this class.
- Explain to students how class time is used for value-added discussions. Students will
see the real-world applications of the core content they learn outside of class.
Additionally, The students will be able to see the exciting world of business and
accounting as they learn the depth and breadth of the accounting industry. (DVD
Chapters 45, 46 & 47)
- Explain to students how exciting these value-added sessions will be. You may want
to give them a short summary of some of the topics you will be discussing in these
sessions. (DVD Chapter 46)
- Spend a little time explaining how the students will be learning both managerial and
financial accounting. Explain how this approach allows the students to see the full
spectrum of the accounting industry. Additionally, explain how this model is a better
44

pedagogical approach by not allowing them to go too deep too quickly into complex
topics in the first course. Then relate how in the second course this model allows
students to review and expand upon the topics learned the first course. (DVD chapter
47)
The Value-Added Teaching Model is an ideal learning environment that cultivates
the concept of being a life-long learner. (DVD chapters 40 & 41)
- This model gives students flexibility and choice of when and where they want to
learn. While they are in control of how they learn, they must understand this freedom
requires great responsibility. It is the student’s responsibility to complete the
homework assignments even though they are not turned in or graded. They need to
be responsible and seek help if they are struggling.
-
This idea of using discretionary time to learn is in large part the essence of being a
life-long learner.
VI.
Objective Six: Introduce the course website. To accomplish this objective effectively the students
must understand the following:
 Show students how to take quizzes, submit reports, and acquire other information.
- Log onto your course website and visually show your students how to navigate
through the site (DVD chapter 49)
- Show your students the Course Documents and Course Information sections of the
website and explain how each section is used. (DVD chapters 50, 52, 55 - 59, & 61)
- Show your students how to submit a report (DVD chapter 53)
- Show your students how to take a quiz. We suggest you take the first quiz with them
in class. (DVD chapters 60 – 66)
- Tell your students the potential problems while taking a quiz, i.e. quiz numbers do not
correspond to lesson numbers. (DVD chapter 70)
- Tell your students how many quizzes they can drop. (We allow students to drop
seven quizzes to accommodate for students who don’t take them (for whatever
reason), perform poorly on some of the quizzes, or think a question is ambiguous.)
(DVD chapter 77)
- Tell your students all the ways they can cheat so they do not think they can out trick
the instructor. (DVD Chapter 73)
- Tell your students why they should not cheat on these quizzes. (DVD chapter 74)
Additionally, tell them you will exercise judgment when reviewing quiz scores to
make changes where someone has obviously cheated. (DVD chapter 75)
VII.
Objective Seven: Make sure the students know exactly what is expected of them and that
they have no questions regarding how the course is administered
- The students must read and comprehend the syllabus or they will have problems in
the course. You will want to ensure students have read the syllabus by either
verbally quizzing the students in class or giving them a small written exam.
Summary of Objectives
Objective One: Excite the students about this course.
 An accounting course is applicable to all students regardless of their intended major.
 A degree in accounting is NOT specifically designed to produce accountants but rather
business decision makers and business leaders.
 This course will allow students to see the depth and breadth of the accounting world.
Additionally, the accounting software create an exciting and efficient learning environment.
Objective Two: Introduce and demonstrate the Introduction to Accounting software.
 The students must realize that the accounting software is an extraordinary tool designed to
make their learning faster and more effective.
45

Students should understand that this course gives them more learning tools than they have
ever had before.
 Students need to know how all the leaning tools work on the accounting software and how
those tools enhance their learning.
 Students must know how homework is accomplished.
Objective Three: Introduce yourself and build a rapport with the students.
 Students must feel the instructor is their friend and available if they need help.
Objective Four: Make sure the students have tried to get the accounting software to work and know
where to get help if they have trouble.
Objective Five: Introduce the Value-Added Teaching Model.
 Relate to the students that the Value-Added Teaching Model is the best and most exciting
approach for this class.
 The Value-Added Teaching Model is an ideal learning environment that cultivates the
concept of being a life-long learner.
Objective Six: Introduce the course website.
 Show students how to take quizzes, submit reports, and acquiring other information.
Objective Seven: Make sure the students know exactly what is expected of them and that they have no
questions regarding how the course is administered.
Possible Pitfalls and Important Notes
These possible pitfalls and important notes come from years of working with various schools across the
country. If left unchecked, any one of the items below can cause a disaster. Please pay particular
attention to these items.

Blame: Students who perform poorly in this course will seek to blame their performance on
some aspect of the course. They will contend that had the course been a traditional model
(textbook/ lecture approach) they would have performed well. The fastest way to make these
students realize they are responsible for their performance is to ask them if they read the optional
textbook and attended the optional review sessions. If they did, then they would have
experienced a traditional model. Almost invariably, students who try to blame their performance
on the course do not attend the optional sessions. This is because these are poorly motivated
students who view optional class time as “no class time.”
What is great about this model is that if a student wants a traditional textbook/lecture course then
they can have it. Unfortunately, poorly motivated students perform badly regardless of any
teaching model. However, having these optional review sessions will in turn cause these
students to realize they are responsible for their education.

Bad attitude by faculty: If any faculty member has a negative attitude towards this course and
displays their opinion in any way toward the students then this course will greatly suffer. Students
will initially feel a little burdened because this course requires more out-of-class learning than
other classes. If the students feel the faculty does not like this course then they will have no
reason to like this course. This will cause the students to not work as hard and blame their
performance on the accounting software or lack of interaction with the instructor. This is why the
enthusiasm of the faculty is paramount in implementing this course.

Course experimentation: If students feel they are being experimented upon then this course is
doomed for failure. You must approach this course as if this is the established method for
teaching this class.

Students may feel you using the accounting software and this model to get out of work.
You must show the students that despite the lack of regular class sessions you are very occupied
by the daily functions of this course. They must understand by learning the core content outside
of class that you are able to use class time for value-added material. Furthermore, this model
46
allows the instructor to work one-on-one with the students who desire further help. Instructors
may want to address this concern up front with their students
Despite your presentation, students may feel this course is only about the accounting software.
This is actually a common problem. Sometimes students view the accounting software as just merely
replacing the main learning tool (the textbook) or feel as if they paid tuition for an instructor and received
accounting software instead. Students must realize this course is all about giving them MORE tools than
they have ever had before. Students have the accounting software, textbook, optional review sessions,
one-on-one faculty assistance, the accounting lab, etc. The students choose how they want to learn.
Even though it likely that over 95% percent of your students will only use the accounting software and
never come to the review sessions, they must feel like there are several options for their learning. This
course can be designed to function like a traditional course with a rehash lecture by using the textbook
and optional review sessions— and the students must know that. We suggest you discuss this issue with
your students up front to avoid any problems. Additionally, it is good idea to reiterate to the students the
benefits that this model provides when class time is maximized through out-of-class learning.
47
Chapter Reference
We provided the information below for those who wish to watch the video via the downloadable Windows
Media file. Please use the table below to find the corresponding time code for each chapter. Once you
find the corresponding time code, use the Windows Media Player to navigate to the correct location in the
video (see picture below). For example, if you wish to view chapter 35 then navigate in the video to
1:06:58 (1 hour, 6 min and 58 seconds).
h:m:s
Chapter
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
0:00:00
0:00:16
0:01:28
0:02:37
0:04:07
Chapter 31
Chapter 32
Chapter 33
Chapter 34
Chapter 35
1:00:31
1:01:39
1:04:01
1:05:32
1:06:58
Chapter 61
Chapter 62
Chapter 63
Chapter 64
Chapter 65
1:47:06
1:48:38
1:49:17
1:50:59
1:51:06
Chapter 6
0:04:58
Chapter 36
1:09:21
Chapter 66
1:53:03
Chapter 7
0:06:23
Chapter 37
1:10:05
Chapter 67
1:55:27
Chapter 8
0:07:52
Chapter 38
1:10:42
Chapter 68
1:57:30
Chapter 9
0:09:24
Chapter 39
1:11:47
Chapter 69
1:59:18
Chapter 10
0:13:45
Chapter 40
1:12:38
Chapter 70
2:01:18
Chapter 11
0:18:13
Chapter 41
1:14:23
Chapter 71
2:02:17
Chapter 12
0:21:03
Chapter 42
1:15:56
Chapter 72
2:03:42
Chapter 13
0:40:38
Chapter 43
1:18:07
Chapter 73
2:06:01
Chapter 14
0:42:13
Chapter 44
1:19:48
Chapter 74
2:07:22
Chapter 15
0:42:50
Chapter 45
1:22:17
Chapter 75
2:09:30
Chapter 16
0:43:37
Chapter 46
1:23:02
Chapter 76
2:10:20
Chapter 17
0:45:21
Chapter 47
1:24:14
Chapter 77
2:10:50
Chapter 18
0:45:50
Chapter 48
1:27:05
Chapter 78
2:11:36
Chapter 19
0:46:50
Chapter 49
1:27:34
Chapter 79
2:12:00
Chapter 20
0:48:54
Chapter 50
1:29:47
Chapter 21
0:50:06
Chapter 51
1:31:13
Chapter 22
0:52:23
Chapter 52
1:31:29
Chapter 23
0:53:18
Chapter 53
1:33:56
Chapter 24
0:54:30
Chapter 54
1:36:18
Chapter 25
0:55:17
Chapter 55
1:39:06
Chapter 26
0:56:14
Chapter 56
1:42:34
Chapter 27
0:56:29
Chapter 57
1:43:14
Chapter 28
0:57:19
Chapter 58
1:43:53
Chapter 29
0:58:40
Chapter 59
1:45:08
Chapter 30
0:58:48
Chapter 60
1:45:23
48
Window Media Player
Time Code
49
Unlock Statement of Cash Flows and Value-Added Lessons on Set #1
To access Statement of Cash Flow and value-added lessons, please open the accounting software, click
File, Click Settings, enter a code from below in the Curriculum Code box, click OK, click File, click Open
Lessons, the Statement of Cash Flows and the eight value-added lessons are now part of the lesson list.
Simply click on a lesson to watch it.
Note: we highly discourage instructors from using the value-added lessons in their course. Instructors
should conduct these sessions live with their students. In addition, we created these sessions for BYU
students, which are a religious student body. We refer to our church and faith several times in these
videos. Therefore showing these sessions to other students outside of BYU would probably be
inappropriate.
Description Code
 Value-Added Lecture 1 only: C256B622
 Value-Added Lecture 2 only: F666B626
 Value-Added Lecture 3 only: FE6AB622
 Value-Added Lecture 4 only: F66236A2
 Value-Added Lecture 5 only: 66223672
 Value-Added Lecture 6 only: 63247532
 Value-Added Lecture 7 only: 622C7C32
 Value-Added Lecture 8 only: 73216032

All Value-Added Lectures: 6A35A9F6

Statement of Cash Flows Only: 7228603A

All Value-Added Lectures and Statement of Cash Flows: 6A3DA9FE or FFFFFFFF
50
Sample Syllabi
Below are examples of the syllabi used in our models. You are free to copy and use this syllabus in any
way you wish. Reading this syllabus will help you understand how to conduct the day-to-day operations
of the course, including assignments, such as the Financial Practice Set and Financial Statement Review
assignment, the course schedule, and the lesson breakdown.
I.
Sample Undergraduate On-Campus Syllabus
Accounting 200 Syllabus
Principles of Accounting
Winter 2008 – Sections 1 and 2
Professor Norm Nemrow
513 TNRB, email: nemrow@byu.edu, 422-5601
Office hours: T 10-11 p.m., TH 10-12 p.m., for other times call for an appointment
TA email: acc200@gmail.com; TA telephone: 422-3783
Welcome to Accounting 200: Accounting 200 is a great introduction to the world of business. In fact,
accounting is sometimes referred to as the language of business. That’s because the very purpose of
accounting is to provide meaningful financial information to individuals and institutions that have an
interest in business, whether they be investors, creditors or managers. Most Americans today invest in
business through the stock market. Intelligent investors seek out financial information on companies to
make more informed investment decisions. It is a company’s accounting system that creates and provides
the information used by investors. Business managers likewise need information produced through
accounting in making the day-to-day operational decisions that improve a company’s performance and
profitability. If you hope to become a successful investor or manager, you will need to understand
accounting information to improve your decision-making. In some respects, this class will actually be a
"principles of business" class in that it is necessary to understand what a business is and how it operates
in order to account for its activities and generate useful financial information. Our study of accounting will
provide insight into many basic business issues and questions including the following:
 In the start-up of a new business, what options are available for the raising of capital and what
are the advantages and disadvantages of those options?
 How do stockholders realize a return on investment and what tools are available to investors to
reasonably predict such returns?
 What can cause a profitable business to fail?
 How can an unprofitable company pay dividends to its shareholders?
 How can management accurately anticipate the impact on profits given changes in product
pricing, costs, and volume?
This class will be an important class for anyone who is interested in someday participating in or investing
in a business. Welcome to the world of business!
Course Learning Objectives: After completing Acc 200, a student should be able to
1. Construct and interpret a balance sheet and income statement understanding its usefulness in
business and investment decision making.
2. Construct and use internal accounting tools such as cost-volume-profit analysis, budgets, product
cost reports, and nonroutine decision analyses to understand how to make better business
management decisions.
3. Comfortably use accounting terms and concepts in business-related discussions.
4. Intelligently converse about the following areas:
a. The role of accounting in international business
b. The role of information systems in financial reporting
c. Fraud and how to prevent fraud
51
d. The theory and practice of income taxes
e. Investing in stocks
f. Career planning and spiritual decision making
g. Managerial accounting as a competitive tool
h. Personal budgeting and financial planning
5. Write a brief, focused memo demonstrating basic understanding of background business reading
material.
6. Use computer-aided learning tools and online learning resources.
7. Manage workload in a self-paced learning environment.
Keys to Success in Accounting 200: Accounting 200 is not a class that requires proficiency in higher
math. Although accounting and business finance are numbers oriented, the math involved is basic. What
is important in a study of accounting and business is the ability to organize and analyze information.
Business language and terms are carefully defined, and business communication requires the precise
and proper use of those terms. An ability to read and communicate with clarity is critical to success in this
class.
Because this class is being taken with relatively few classroom lectures and homework is not turned in for
credit, a higher level of self-discipline may be required in order to successfully complete this course. You
cannot afford to get behind. It is strongly recommended that you set up a personal study schedule that
specifically earmarks time when you will regularly work on the material for this course. If you do not stay
up with the Course Schedule provided in this syllabus, you will not successfully complete this course.
Is this an Online Course and what are my options? This course is being taught on a hybrid basis
through the use of a DVD, limited in-class lectures, and online quizzes, report submissions, and
communication. A textbook is available for this course, but is not required. This is the only way the
course is available at BYU. All sections of Acc 200 are taught in this format.
Course Website: All class communications, including any announcements or schedule changes along
with all quizzes, submissions of reports, checking of grades, etc., will be handled through the course
website. The website can be found by going to the BYU homepage at www.byu.edu, clicking on
"Blackboard”, then logging in and clicking on Acc 200. You must be properly registered for the course for
it to appear on Blackboard. If you have any problems accessing Blackboard or the course website,
please go immediately to the Center for Teaching and Learning (CTL) to get assistance. The CTL is
located at 3704 HBLL (entrance is on the south side of the HBLL). If you cannot go there personally, the
IMC telephone # is 422-1888.
When on the course web page, take some time and explore the tools available to you by clicking on all
the menu options. DO NOT, however, click on any quiz until you are actually ready to take it. You
only have one opportunity to complete each quiz. Once started, a quiz cannot be exited in a way
that allows for it to be subsequently available to you.
DVD, Text and Homework: All of the material that you will be held accountable for on quizzes and
exams for this course is contained in the Introduction to Accounting: The Language of Business DVD
(Version 2.0). In the past this DVD has been available for purchase through the BYU Bookstore. That
will not be the case this semester. Instead the new online method for purchasing the DVD content will
be explained on the first day of class. All students will be required to purchase the DVD content except
for students who are retaking the course and have a previously purchased copy.
Important Note: The DVD content was originally produced and is periodically updated at a substantial
cost to BYU. BYU owns the DVD. The School of Accountancy has licensed the DVD for use with Acc
200. The price that you pay when you purchase the DVD content is a licensing fee. This licensing fee
allows you to use the DVD content for Acc 200 and for any other personal, non-business purpose. The
DVD content may not be copied or shared with any other students taking Acc 200 now or in the future.
A supplemental textbook for this course is also available but is not required. This textbook can be
purchased at the BYU Bookstore and is Accounting Concepts and Applications by Albrecht, Stice, Stice,
52
and Swain (10th edition). The readings from the text supplementing the material covered in the DVD’s are
noted by page numbers in the Lesson Breakdown in this syllabus. A number of these textbooks are
available for your review and use free of charge in the Accounting TA Lab located in 1820 HBLL (1st floor
south end).
The DVD Lessons present course material in a video lecture format with synchronized graphic displays,
sample problems, and homework problems and solutions. Although the homework problems in each
lesson will not be submitted or graded, your ultimate success on quizzes and exams will be directly
correlated to your ability to understand and do the homework problems on your own. Because homework
solutions and explanations are provided, many students will be tempted to simply refer to the solutions
rather than hammering out a problem on their own. This will be a serious mistake. The best learning takes
place when students work through problems on their own before resorting to a provided solution. You
must be able to understand and do these homework problems on your own to do well on the exams.
Students opting to utilize the textbook as the primary learning source may access the homework
problems and solutions through the Accounting 200 Learning Resource Packet available at the BYU
Bookstore as noted below.
Other Helpful Learning Resources: The following learning resources are available in PDF format on the
DVD and can be printed to hard paper copy or are preprinted and available at the BYU Bookstore as the
Accounting 200 Learning Resource Packet for about $10:
Lesson Notes, Homework Problems and Solutions (The Notes, Problems and Solutions
are organized Lesson by Lesson with the Notes for each lesson provided first followed by
the Problems and Solutions for that lesson)
Financial Practice Set Problem and Solution
Exam Topic Sheets (notes topics to be included on exams)
Sample Exam Problems/Solutions
Instructions and Advice on DVD Use: Instructions on the computer hardware and software
requirements to run the DVD are found on the Blackboard course website by clicking on “Syllabus” and
then “Technical Information for DVD Version 2.0.” If you have problems getting the DVD to work after
having reviewed this technical information, feel free to call 836-5649 for technical support. In
addition, the Accounting Lab TAs are well versed in the operation of the DVD.
Students from previous semesters recommend that the DVD Lessons are most effectively used by first
printing or purchasing a copy of the Lesson Notes included in the Accounting 200 Learning Resource
Packet discussed above and then utilizing those notes for additional note-taking while viewing the DVD
Lessons.
Syllabus and Lesson Quizzes: One (1) Syllabus Quiz and twenty-five (25) Lesson Quizzes will be
given online through the course website during the semester. The Syllabus Quiz is intended to
encourage your reading of this syllabus and is made up of five (5) True/False or Multiple Choice
questions worth 1 point each, or a total of 5 points. If you read this syllabus carefully you should be able
to respond to each question correctly.
The primary purpose of Lesson Quizzes is to encourage and reward your timely progress through the
course materials. Each lesson quiz covers only the material for the DVD lesson(s) noted in the Lesson
Breakdown included in this syllabus. A student should be well prepared for a quiz if they have reviewed
and understand the DVD lesson materials and can do the included homework problems on their own.
Students may also wish to review “Practice Module” problems and “Glossary” definitions found on the
DVD plus additional “Practice Quiz Questions and Lesson Reviews” found on the course website by
clicking “Quiz and Exam Help.”
Each Lesson Quiz has five (5) True/False or Multiple Choice questions worth 1 point each, or a total of 5
points per quiz. Only the 18 best out of the 25 possible quiz scores will be used in determining a student's
final grade. No late quizzes will be given for any reason. If you are unable to take a quiz due to illness or
for any other reason, then that quiz will become one of the seven to be dropped for grading purposes.
53
The Syllabus Quiz and all Lesson Quizzes are to be taken online through the course Blackboard site. The
quizzes are to be taken on your own without notes or any other reference materials. The quizzes are
timed and limited to 10-20 minutes depending on the particular quiz. You may use a calculator and some
scratch paper to perform any work required for the quiz questions and you should have them readily
available before you begin. You may take the quizzes as early as you wish but not later than midnight on
the dates noted in the Course Schedule.
Remember, do not click on a quiz until you are actually ready to take that specific quiz. Once
started, a quiz cannot be exited in anyway that allows for it to be subsequently available to you.
You must be careful when selecting a quiz to make sure it is the correct quiz # and that you are
ready to go. If you have technical problems in accessing or submitting a quiz or the server goes
down while taking a quiz, then email the TAs as soon as possible at "acc200@gmail.com" and
report the problem. The TAs will reset the quiz for you within two working days of notification. All
correspondence with the TAs must include your Section number, Route Y ID # and a clear
description of the problem experienced.
It is possible to print out the quiz questions and your responses immediately following quiz submission by
simply typing Ctrl P. Printed quizzes may be used for future exam preparation and study. However, these
printed quizzes are not to be used for cheating. No one should utilize another person's printed quiz in
preparation for the taking of a quiz themselves. It would also be a violation of the Honor Code to provide a
printed quiz to another student for use prior to their taking of that quiz. Because the same quizzes are
used from semester to semester, the use or providing of quizzes from prior semesters would also
constitute cheating. If you have in hand any quizzes from a prior semester they are to be thrown away
before proceeding with this course. Please honor this institution and yourself by following these
guidelines for printed quiz use.
Communicating with the TAs: All communication with TAs should be done through
acc200@gmail.com or by phone at 422-3783. Do NOT use the email function within Blackboard. These
emails frequently get sidetracked into the personal email accounts of the Accounting TAs. Instead, use
the email address (acc200@gmail.com) that we have specifically set up for communication between Acc
200 students and the Acc 200 TAs. In all communications with the TAs or your instructor please include
your name and section number. For many of you, your email address itself communicates your name.
But for some of you (and you know who you are), your email address offers no hint about what your name
is.
Required Supplemental Lectures, Pre-Lecture Assignments, Quizzes and Reports: Class
attendance is required only eight (8) times during the semester on the supplemental lecture dates noted
in the Course Schedule included in this syllabus. These class times will be used to enhance your
introduction to the real world of business and accounting and presentations will be made by some of our
top faculty with experience in the field.
Before each supplemental lecture, there are pre-lecture readings and an assignment posted in the course
Blackboard site (see “Lecture Readings”). These assignments may require online submission of a report
or the taking of an online quiz that must be completed at least one-half hour before the start of class.
Following the class, an online quiz or report will be given with a midnight deadline on the day following the
class. Points for grading purposes on these pre and post-lecture quizzes and/or reports will amount to 5
points each. To accommodate missed lectures due to illness, any other student absence excused or
otherwise, or to cushion the effect of poor performance on a quiz or assignment, the lowest four (4)
quizzes or assignments will be dropped from the total point accumulation for grading purposes. As a
result, the total possible points available from these supplemental lecture quizzes and/or assignments will
be 60 points (8 classes x 2 quizzes or reports each (pre and post), less the lowest 4 quizzes or
assignments equals 12 quizzes or assignments to be counted at 5 points each).
If a student cannot attend a lecture due to an excused absence or illness, arrangements may be made to
attend at another section's class time (subject to seat availability). Students should check with the course
instructor to verify time, location, and seat availability.
54
The material covered in these supplemental lectures will not be included on the course exams.
Exams: Three exams will be given throughout the course as noted below. You may take the exams as
early as you wish but not later than the dates noted in the Course Schedule.
Exam #1 (100 points): Covering Lessons 1 - 4 and the Practice Set concepts, (33 multiple
choice worth 3 points each with 1 point for simply taking the exam) 3 hour time limit.
Exam #2 (120 points): Covering Lessons 5 - 10 (40 multiple choice worth 3 points each), 3.5
hour time limit.
Final Exam (150 points): Covering Lessons 11 - 15, (10 True/False worth 2 points each and
43 multiple choice worth 3 points each with 1 point for simply taking the exam) 4 hour time
limit.
The exams are to be taken at the Testing Center on campus. Check with the Testing Center to verify
operating hours and policies. Make sure that you have allowed for sufficient time in dealing with possible
lines and allow for adequate time to complete the exam. No late exams will be given except upon
professor pre-approval for documented health problems, family emergencies, or university-approved
absence. The exams are not comprehensive and will cover only the materials in the lessons designated.
Only basic four-function or scientific calculators may be used in the Testing Center. An optional review of
the exam solutions will be held in class subsequent to each exam as noted in the Course Schedule.
Exam Preparation: In order to perform well on exams, a student must not only have a solid
understanding of the course material but must also be able to apply that understanding to actual
problems. The best evidence of a student’s adequate preparation for the exams is his or her ability to do
the lesson homework problems on his or her own without assistance. Students must understand how to
do the problems and the reasoning behind the solutions. If students are having difficulty understanding
the homework problems, they should consider reviewing the DVD problem walkthroughs a number of
times and may also need to review the actual lecture or text materials. A basic overall review of the
course materials may also be helpful exam preparation and can be facilitated by simply reviewing the
Lesson Notes.
Included on the DVD under “Resources” or in the Accounting 200 Learning Resource Packet are three
sample exams with solutions provided at the end of each exam. These sample exams provide students
with an opportunity to experience typical exam questions in a multiple-choice format. These sample
exams are not intended to provide complete coverage of topics, but can be a valuable tool in exam
preparation. If a student takes the sample exam and does poorly, it probably means there is need for
additional study of the lesson examples and homework problems. Also available through the DVD and the
Accounting 200 Learning Resource Packet are Exam Topic Sheets, which simply highlight the topics to
be covered in each exam.
Students who are struggling to understand the course material are encouraged to utilize the Accounting
TA Lab and/or see the course instructor for assistance.
Financial Statement Review Assignment: The purpose of this assignment is to make students aware
that financial statements are actually prepared and available to the public to assist in investment
decisions. The things to be discussed in this class have actual practical application in the real world of
business. (Note the DVD mistakenly says this assignment is not to be handed in. That is incorrect.
The report noted below must be submitted for credit.)
In this assignment you are to access a publicly held company’s web page on the Internet and read the
company’s most recent annual report. (You do not need to print out a hard copy to do this assignment.).
The annual report is typically available in an "Investor Relations" section of a company’s web page. A
simple way to access a report can be accomplished by clicking on "External Links" on the course website.
55
Not all companies provide a copy of their full annual report on the internet. In such cases you may wish to
select another company, or you can call the company and request a printed copy from their investor
relations department. (Most companies will provide a printed copy free of charge; however, it may take a
week or more to actually receive the report through the mail.) You are looking for a full annual report, not
some summary information. The full annual report will typically have a letter or report to shareholders
from the president of the company, a section providing general business information and a section
devoted to management’s discussion and analysis of the business. In addition, an annual report contains
the actual financial statements with an auditor’s report along with supplemental notes to those basic
financial statements. Once you have access to an annual report, complete the following items. (This
assignment and report are to be done on your own, but you may ask questions of the lab TAs or other
students if you need assistance.)
A. Review the general business information provided in the annual report, the letter or report
to shareholders and management’s discussion and analysis of the company. It is not
necessary that you read every word, but you should read enough to write a brief
description of the company’s business activities and summarize management’s
characterization of the company’s recent performance and prospects for the future. (This
portion of the report must be a minimum of 400 words.)
B. Review the auditor’s report, actual financial statements (income statement or statement
of operations, balance sheet or statement of financial position, and statement of cash
flows) and accompanying notes to the financial statements and respond to the questions
below. (This part of the report may simply be a listing of your responses from #1 to #11.)
The purpose of this part of the assignment is not to test your knowledge, but to simply
expose you to the fact that the language we are introducing in this course is actually used
in real world financial statements. There will be some terms you are not familiar with.
Don’t worry, we are just getting started and you are not expected to know and understand
everything at this point in time. Just do your best in responding to the following
questions:
1. As noted in the auditor’s report, who is responsible for the preparation of the
financial statements?
2. What CPA firm performed the company’s audit?
3. Does the auditor’s report note any problems in the financial statements? If so,
what?
4. As per the balance sheet, have total assets, total liabilities, and total
stockholders’ equity increased or decreased over the years reflected, and by how
much?
5. Identify the company’s largest asset, liability, and stockholders’ equity account for
the most recent year presented.
6. Identify the increase (decrease) in retained earnings over the most recent period
and note, as best you can, the cause of the increase (decrease). The statement
of stockholders’ equity or statement of retained earnings can help in this analysis.
7. As per the income statement or statement of operations, how much has net
income increased (decreased) over the last year?
8. Note the Company’s EPS (earnings per share).
9. As per the statement of cash flows, how much has cash increased (decreased)
over the last year?
10. What was the source of the largest cash inflow to the company over the last
year?
11. Skim the accompanying notes to the financial statements, and summarize briefly
the kind of supplemental information provided in one of the notes.
This assignment is not intended to take more than two to three hours. The assignment is worth 5 points
towards your final grade and is to be turned in online through the course website by midnight on the date
noted in the Course Schedule. If you plan to use the campus Open Access Labs to prepare and submit
this assignment, you should not procrastinate. It is likely the labs will be crowded on the due date, and
you may find it difficult to complete the assignment if you wait until the last minute. Full credit (5 points) for
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grading purposes will be given if it appears you have made a reasonably complete effort to fulfill the
assignment requirements. No late submissions will be accepted. It is strongly encouraged that this and all
reports for this course be prepared and saved in your word processing software (Word or WordPerfect,
etc.). Once prepared and saved, report submission is to be made online by first copying the report
(highlighting and then pressing Ctrl C), then going to “Quizzes/Assignments” on the course website and
pasting (Ctrl V) the report into the properly identified report submission form under “Financial Statement
Review Assignment.”
The report will be graded within 10 days of submission.
Financial Practice Set: The "Financial Practice Set" is included in the DVD Lesson Resources and is
printable to hard paper copy or is alternatively available in the Accounting 200 Learning Resource Packet.
You must obtain a hard paper copy of the Practice Set before this exercise can be completed. This
Practice Set is designed to simulate a simplified real world accounting experience and will reinforce your
understanding of the flow of information in a company’s accounting system. Although accounting systems
used today are typically computerized, this manually-prepared accounting practice set will be helpful in
understanding the underlying basis for small business computerized systems. You should not begin this
Practice Set until you have completed Lesson #4 and reviewed the "Financial Practice Set" Lesson on the
DVD which explains in detail how to proceed with and complete the assignment. It should be completed
before you take the first exam as noted in the Course Schedule.
This Practice Set will not be graded and will not be turned in; however, a number of concepts to be
learned through the successful completion of the Practice Set will be covered on the first exam. The
solution to the Practice Set is available in the DVD Lesson Resources and is printable from the DVD or
available in the packet. The solution is provided to assist you in completing the Practice Set and helping
you through the process. Some students will be tempted to simply review the solution rather than actually
complete the assignment themselves. Such an approach is shortsighted and will rob you of an excellent
learning experience. Actually working through the Practice Set on your own or with the assistance of a
fellow student will be a terrific review in preparation for the first exam and will reinforce much of the
material in Lessons 2-4.
Having Fun and Doing Good: Too often students get so caught up in their studies that they forget that
there is life out there beyond books. It is important to maintain your perspective. To assist you, this class
rewards you for having some fun. You will be given 5 points to embark on an adventure and report on it
through the online website by clicking on "Quizzes/Assignments" on the cover page of the site. For our
purposes, an adventure will be defined as something fun that you would not have taken the time to do
except it be for this assignment. The report should be a simple one-paragraph description of what you
did.
In addition, it is important to remember the value of service in our everyday lives. There are times when
things get tough and the pressures of life seem overwhelming. When we take the time to look beyond our
own problems and serve others, not only do we make someone else's life more bearable but we are lifted
too. To encourage you in this area, 5 points will be given for a simple act of service done this semester
and reported in a short one-paragraph report submitted through the online web site. This does not need
to be elaborate service -- even cleaning up after a roommate is great if done in the proper spirit. These
reports must be submitted before a date near the end of the semester in order to receive credit; see the
Course Schedule for the exact due date.
Grading is based on the following:
Exam #1
100 points
Exam #2
120 points
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Final Exam
150 points
Syllabus Quiz
5 points
Lesson Quizzes (18 x 5 points)
90 points
Have Fun/Do Good Reports
10 points
Supplemental Lecture Quizzes/Assignments (12 x 5)
points)
Financial Statement Review Assignment
60 points
5 points
Total Possible Points
540 points
Grade Breakdown:
Grade
Percent
Point Range
A
92%
497 – 540
A-
89%
B+
Grade
Percent
Point Range
C
69%
374 – 399
481 – 496
C-
64%
347 – 373
86%
465 – 480
D+
60%
326 – 346
B
81%
438 – 464
D
55%
299 – 325
B-
77%
416 – 437
D-
50%
272 – 298
C+
74%
400 – 415
E
Below 50%
Below 271
There are NO make-up, grade improvement projects or curving in this class. These are the final
grade breakdowns...period.
Note: Grades are assigned based on points. The percentages given in the table above are merely for
reference purposes. For example, a score of 436 out of 540 is 80.74% which can be rounded up to 81%.
However, the grade is given based on the points, not on the rounded percentage. Accordingly, a student
earning 436 points will get a grade of B minus even though it is 81% rounded and is only two points from
the “B” cutoff of 438 points. In this particular case some students will ask for a bump-up in their grade
given they are so close to a “B”. Unfortunately that will not happen. The reason is that, with over 1,300
students taking Acc 200 in an average semester, there are approximately 150 students each semester
who are within one or two points of the next highest grade interval. The only fair way of assigning grades
in such a situation is to clearly publish the grade cutoffs in advance and then stick to them. That is what
we do in this class.
Completing the Course on an Expedited Basis: Deadlines for taking all quizzes, assignments and
exams are noted in the course schedule. Students may take the lesson quizzes on Blackboard and the
exams at the Testing Center as early as they wish before the scheduled deadlines. However, the
Supplemental Lectures must still be attended and the accompanying pre and post lecture
quizzes/assignments must be completed if all points are to be obtained for grading purposes. In other
words a student may complete all of the course content, quizzes, exams etc. in the first few weeks of the
class except for the Supplemental Lecture work.
Accounting Lab, TA Assistance, Tutoring, Professor Assistance: An accounting lab (Room 1820
HBLL , 1st floor south) will be open during the semester from 10:00 a.m. to 10:00 p.m. (Monday through
Thursday, closed for Tuesday Devotionals and Forums), 10:00 a.m. to 7:00 p.m. (Friday), and 11:00 a.m.
to 4:00 p.m. (Saturday). Teaching Assistants (TAs) will be in the lab to give you needed assistance in
understanding the material. The lab also has 16 computers available for viewing the DVD. This lab will be
a valuable tool for those who find the material difficult to understand and need additional help along the
way. In addition, you can call the TAs to ask any questions by phone at 422-3783. Free tutoring is also
58
available through the Jacobsen Center for Service and Learning at 2010 WSC or call 422-4793. Students
are encouraged to request a tutor early in the semester. Students should also feel free to visit their
professor during office hours or make other personal appointments if they have questions or need
assistance on any of the course material. We want to help you be successful in your learning.
Entry into the School of Accountancy: Students considering application to the School of Accountancy
(SOA) should be aware of the importance of this class in gaining admittance to the school. If you have
any questions regarding the admissions process and standards of admissions, you should inquire at the
SOA student advisement office in 560 TNRB.
What should students do or think if they struggle in this course? To be honest, experience has
shown that some students seem to have a natural talent or gift in accounting and perform well on the
multiple choice exams with what seems to be relatively little effort. Other students struggle but can master
the course material with considerable study, review, and practice in doing the homework and sample
exam problems. Finally, for some students, the analytical thinking process associated with accounting is a
skill that they seem to have been born without and, regardless of the time and effort put into the course, it
just doesn’t come. Even though these students understandably become frustrated, they should not
become too discouraged. A lack of talent in accounting is not the end of the world. It probably just means
that you have a personality and will end up hiring an accountant rather than doing it yourself.
Some students express concern that they do not perform well on multiple-choice exams. The nature of
business and accounting information makes examination through multiple-choice exams a logical testing
vehicle rather than essay or other means. Experience has shown that the multiple-choice exams for
accounting do provide a fair reflection of comprehension and ability in the subject. It is true that many
students may understand basic business and accounting concepts but have trouble when detailed
information is provided and has to be organized, analyzed, and used to produce a problem solution.
Unfortunately, that is the nature of accounting and business information, and an exam that eliminates
those characteristics is not a fair reflection of the course content.
Finally, if you are one of those students with your heart set on a degree in business but cannot seem to
overcome an accounting stumbling block, be comforted in the fact that most people who are hired in and
become successful in business do not have an undergraduate degree in business. Businesses are
interested in people who are personable, can get along and work well with others, and can learn on the
job. Your college degree is not the most significant factor in determining your ultimate success in
business. Please see the course professor if you are struggling in the course and need any
counsel or advice.
Don't blame the technology! Students struggling in this course might be inclined to blame the
technology for their performance in the class. Even though average performance in this class is equal to
or better than that previously experienced with a more traditional classroom approach, they suggest that
use of a textbook and live lecture is a better way for them to learn. Frankly, the only possible advantage
of having a live lecture as opposed to the DVD Lesson is the ability to ask questions during the lecture.
Unfortunately, in a large live lecture class there is in reality very little opportunity for the answering of
individualized questions in a way that still leaves time for the coverage of the assigned material. In
addition, because students vary so much in their abilities in this class, it is difficult to respond to one
student's questions when it may not be shared by a majority of students. The TA Lab and professor office
hours have been set up specifically to provide the kind of personalized assistance that some students
may need. In addition, as noted in the Course Schedule, optional review sessions (lead by one of the
TAs) are held during selected regularly-scheduled class periods; these sessions will provide substantial
opportunity to ask questions. Students who do not utilize these review sessions, the TA Lab, or the
professor's office hours to seek out personalized help in understanding the course material and ask
questions have little justification in blaming the DVD course format for their failings. It is also
recommended that students form study groups in or outside of the Lab so that they can review and
discuss the material together. If you need assistance in forming a group, the Lab TA's can help you.
Maybe the best learning method of all is found in attempts to explain concepts to others.
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It is worth noting that the DVD Lessons are far superior in terms of content than can be achieved in a
classroom lecture. The DVD has more graphics and more detailed explanations than can be provided in
limited class time. One of the great advantages of the DVD is that it allows students to pause and take
notes without missing any discussion. In addition, they can be replayed if a concept is missed along the
way. The DVD is a terrific learning tool if properly used. It should be viewed at a place and time where
you can concentrate. Utilize the printed Lecture Notes for note taking while viewing the DVD. Do not try to
watch too much at one sitting. Break it up. Do the homework problems yourself to the best of your ability
before viewing the hints and walkthroughs. Use the TAs and the professor to respond to questions you
have on the material.
Honor Code: Although the vast majority of students are honest and live their lives in accordance with the
Honor Code, we do on occasion have individuals who seem to think that the Honor Code does not apply
to them. Just so we all understand: everyone is expected to adhere to the BYU Honor Code. Cheating or
other violations may result in a failing grade for the course or other disciplinary action.
Cheating, as the term is used in the Marriott School, refers to actions such as the following on the part of
a student:
1. A student sharing information with other students about the content of, or answers to,
examinations, quizzes or other graded work in which student interaction is not specifically
allowed.
2. A student getting another person to take a quiz or exam in his/her place, or to prepare submitted
work which is then submitted as the student’s work.
3. A student who, either before or while taking a quiz or exam, visually or otherwise obtains
information from another person’s quiz or exam.
4. A student using "crib" sheets or other unauthorized information while taking a quiz or exam.
5. A student gaining access, by theft or by any other means, to a quiz or exam or unauthorized
information about a quiz or exam before it is taken.
Violations of the Honor Code in this class are taken very seriously. Do not compromise your integrity for
something as insignificant eternally as a grade in this class.
Preventing Sexual Harassment: Title IX of the Education Amendments of 1972 prohibits sex
discrimination against any participant in an educational program or activity that receives federal funds.
The act is intended to eliminate sex discrimination in education. Title IX covers discrimination in
programs, admissions, activities, and student-to-student sexual harassment. BYU's policy against sexual
harassment extends not only to employees of the University but to students as well. If you encounter
unlawful sexual harassment or gender-based discrimination, please talk to your professor; contact the
Equal Employment Office at 422-5895 or 367-5689 (24-hours); or contact the Honor Code Office at 4222847.
Students With Disabilities: Brigham Young University is committed to providing a working and learning
atmosphere that reasonably accommodates qualified persons with disabilities. If you have any disability
that may impair your ability to complete this course successfully, please contact the University
Accessibility Center (422-2767). Reasonable academic accommodations are reviewed for all students
who have qualified documented disabilities. Services are coordinated with the student and instructor by
the UAC. If you need assistance or if you feel you have been unlawfully discriminated against on the
basis of disability, you may seek resolution through established grievance policy and procedures. You
may contact the Equal Employment Office at 422-5895, D-282 ASB.
Diversity: It is illegal to discriminate in the workplace based on race, color, religion, sex, national origin,
disability, or age. Furthermore, such behavior at a Christian university such as BYU is unacceptable.
Therefore, no one in Acc 200 should be belittled for any reason. If you experience such an offense in Acc
200 (caused either by the instructor or a fellow student), contact your instructor or, if you feel it necessary,
the director of the School of Accountancy (Kevin Stocks).
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Policy on the Use of Technology in the Classroom: Technology is an essential part of today’s
learning environment. However, technology, when used inappropriately, can also hinder learning. Most
Marriott School students have, at some point, sat next to students who use their laptops or PDAs in class
to check email, talk to friends, instant message, search the internet or play online games. Unfortunately,
every person sitting around such students is distracted by this behavior and classroom learning
decreases. As a result of these distractions, the Marriott School has implemented the following policy
effective Fall semester, 2006: Using laptops or PDAs in class to legitimately take notes or work on class
projects is allowed, but all other use of laptops or PDAs in class is prohibited. Please respect your fellow
students and professors and abide by this Marriott School policy.
Marriott School Cell Phone Policy: Students are not allowed to use cell phones in classes in the
Marriott School. Please turn them off as you enter the classroom and keep them stored out of sight in
your backpack or pocket. Not only can these phones be a disruption to class, but with built-in cameras,
students have been known to take pictures of grade rolls containing sensitive information, examinations
and even fellow classmates. Each of these represents an invasion of privacy that we need to avoid.
Some students have also used their phones to send text messages during class sessions, sometimes to
other students in the same classroom. On rare occasions these text messages have contained
confidential information that is not appropriate to share during a class session. For these reasons, the
Marriott School has chosen to establish a policy that all cell phones should be turned off and kept stored
out of sight during all class sessions. Please comply with this Marriott School policy.
Tips to Performing Well in This Course





Study Hard and Actively Participate: As with any subject, the more you study the better you
will perform. Be an active participant as you watch the lessons. Students who sit back idly and
just casually watch the lessons do not perform as well. Use the provided controls to stop the
lessons to take notes or rewind difficult topics to review them again.
VSP: Make sure you are responsible with the Variable Speed Playback controller. Setting the
speed too high just to finish faster is not responsible.
Homework Problems: Although the homework problems in each lesson will not be submitted or
graded, your ultimate success on quizzes and exams will be directly correlated to your ability to
understand and do the homework problems on your own. Because homework solutions and
explanations are provided, many students are tempted to simply refer to the solutions rather than
hammering through a problem on their own. This is a serious mistake. The best learning takes
place when students work through problems on their own before resorting to a provided solution.
You must be able to understand and do these homework problems on your own without
references to do well on the exams or quizzes.
Take Good Notes: Make sure you have a hard copy of the lessons notes (or Learning Resource
Packet) when you are watching the lessons. You should be taking good notes on this hard copy
as you progress through the lesson.
Seek Assistance: If you are having difficulty, seek additional assistance by attending the review
sessions or talk with your instructor or T.A.
Do the Following Before Taking a Quiz or an Exam
 Homework Problems: Make sure you can answer and feel comfortable with every homework
problem in the table of contents in each lesson.
 Glossary: Open the Glossary and make sure the “By Lesson” button is depressed. Make sure
you know the definitions of every word in the section(s) you are studying. Clicking the blue
hyperlinked words will help you learn the definition of a word by establishing context within
another definition. See picture below.
 Practice Module: Open the practice module and work through each problem in the section(s)
you are studying. Take time to work the solutions on paper and then review your work by clicking
on the “Show Answer” button. See picture below. If you answer a question incorrectly, review
that topic in the lesson again.
 Review Sessions: Attending the exam review sessions is an excellent way to prepare for the
exams.
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


Review Notes: Review your notes just prior to taking a quiz or exam.
Review lessons: Go through each line in the table of contents and make sure you are
comfortable with every topic. Some students find great success by reviewing the lessons at the
highest attainable VSP speed.
Review Slides: By clicking the next and back buttons, you can move through the lessons and
review the slides. If you find a slide you need to review, click on the synchronize button to
synchronize the video to the slide.
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Course Schedule
Students are expected to check the course website every day for announcements and schedule
changes. You are accountable for any changes in the course schedule or any other course
modifications posted on the website. To miss any assignment, supplemental lecture, quiz, exam,
etc. because of a date change or modification that has been posted on the website because you
did not check it on a daily basis will not be excused!!!!!
Sections 1 and 2 (Tuesday/Thursday) Course Schedule:
Date
Event
8 Jan T
Course Introduction
9 Jan W
Syllabus Quiz deadline
10 Jan Th
Course Introduction (continued)
Lesson 1a should be completed but there is no quiz required (See the "Lesson
Breakdown" to note material to be covered in each lesson segment.)
11 Jan F
Quiz 1, Lesson 1b deadline
15 Jan T
Optional Review Session at regular class time and location.
Quiz 2, Lesson 2a deadline.
17 Jan Th
Supplemental Lecture #1, "The Importance of Financial Accounting in U.S. and
Global Economies." Pre-Lecture Report due 1/2 hour before start of class. (See
“Lecture Readings” in the course website for report requirements.)
18 Jan F
Supplemental Lecture #1 Post-Lecture Quiz deadline.
Quiz 3, Lesson 2b deadline.
22 Jan T
Optional Review Session at regular class time and location
Quiz 4, Lesson 3a deadline
24 Jan Th
Optional Review Session at regular class time and location.
Financial Statement Review Assignment deadline.
25 Jan F
Quiz 5, Lesson 3b deadline
29 Jan T
Optional Review Session at regular class time and location.
Quiz 6, Lesson 4a deadline.
31 Jan Th
Optional Review Session at regular class time and location.
Quiz 7, Lesson 4b deadline.
1 Feb F
Begin Financial Practice Set (see DVD)
4 Feb M
Financial Practice Set should be completed (not turned in or graded, but at least two
questions on Exam 1 are based on topics covered ONLY in the Financial Practice
Set).
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5 Feb T
Supplemental Lecture #2, "Management Information Systems Today, Future Trends
and Career Opportunities." Pre-Lecture Report due one-half hour before the start of
class. (See “Lecture Readings” in the course website for report requirements.)
Exam Review Session (time and place to be announced)
6 Feb W
Supplemental Lecture #2 Post-Lecture Quiz deadline.
7 Feb Th
Exam #1 Deadlines: The exam is to be taken at the Testing Center and there is no
late fee if taken by 2:00 p.m. on Thursday (7 Feb). With a late fee the exam may be
taken as late as 2:00 p.m. on Friday (8 Feb). The exam will not be available after
2:00 p.m. on Friday (8 Feb). Plan to take the exam early enough to allow for possible
delays due to lines.
11 Feb M
Last day to drop the class for academic reasons.
12 Feb T
Optional Exam #1 Solution Review in class – only opportunity to review the Exam 1
problems and solutions; the exam is NOT available in the Accounting Lab
Quiz 8, Lesson 5a deadline
14 Feb Th
Optional Review Session at regular class time and location.
Quiz 9, Lesson 5b deadline
19 Feb T
Quiz 10, Lesson 6a deadline
21 Feb Th
Optional Review Session at regular class time and location.
21 Feb Th
Quiz 11, Lesson 6b deadline
25 Feb M
Quiz 12, Lesson 7 deadline
26 Feb T
Supplemental Lecture #3, "Business Fraud, Ethics and the Accounting Profession."
Pre-Lecture Quiz due one-half hour before the start of class. (See “Lecture Readings”
in the course website before taking the quiz.)
27 Feb W
Supplemental Lecture #3 Post-Lecture Quiz deadline.
Quiz 13, Lesson 8a deadline
28 Feb Th
Optional Review Session at regular class time and location.
29 Feb F
Quiz 14, Lesson 8b deadline
4 Mar T
Optional Review Session at regular class time and location.
Quiz 15, Lesson 9a deadline
6 Mar Th
Supplemental Lecture #4, "Taxation and Business Decisions, Career Options In
Taxation." Pre-Lecture Quiz due one-half hour before the start of class. (See
“Lecture Readings” in the course website before taking the quiz.)
7 Mar F
Supplemental Lecture #4 Post-Lecture Quiz deadline.
Quiz 16, Lesson 9b deadline
11 Mar T
Optional Review Session at regular class time and location.
Quiz 17, Lesson 10a deadline
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12 Mar W
Lesson 10b to be completed (No quiz is given for this lesson but the material is
included in Exam 2 and covered in Supplemental Lecture #5.)
13 Mar Th
Supplemental Lecture #5, "Financial Accounting Information and Stock Valuations."
Pre-Lecture Quiz due one-half hour before the start of class. (See “Lecture Readings”
in the course website before taking the quiz.)
14 Mar F
Supplemental Lecture #5 Post-Lecture Quiz deadline
15 Mar Sat
Exam Review Session (time and place to be announced)
18 Mar T
Optional Review Session at regular time and location
18 Mar T
Exam #2 Deadlines: The exam is to be taken at the Testing Center and there is no
late fee if taken by 2:00 p.m. on Tuesday (18 Mar). With a late fee the exam may be
taken as late as 2:00 p.m. on Wednesday (19 Mar). The exam will not be available
after 2:00 p.m. on Wednesday (19 Mar). Plan to take the exam early enough to allow
for possible delays due to lines.
20 Mar Th
Optional Exam #2 Solution Review in class – only opportunity to review the Exam 2
problems and solutions; the exam is NOT available in the Accounting Lab
Quiz 18, Lesson 11 deadline
24 Mar M
Quiz 19, Lesson 12a deadline
25 Mar T
Optional Review Session at regular time and location.
26 Mar W
Quiz 20, Lesson 12b deadline
27 Mar Th
Supplemental Lecture #6 "Money, Family and Spiritual Considerations in Career
Choices.” Pre-Class Report due one-half hour before the start of class. (See
“Lecture Readings” in the course website for report requirements.)
28 Mar F
Supplemental Lecture #6 Post-Lecture Report deadline. (Report requirements on
“microcredit” to be noted during the lecture.)
Quiz 21, Lesson 13a deadline
1 Apr T
Optional Review Session at regular time and location.
Quiz 22, Lesson 13b deadline
3 Apr Th
Optional Review Session at regular time and location.
Quiz 23, Lesson 14a deadline
4 Apr F
Deadline for submission of Having Fun and Doing Good assignments
7 Apr M
Quiz 24, Lesson 14 b deadline
8 Apr T
Supplemental Lecture #7, "Managerial Accounting: Current Trends in Practice and
Career Opportunities." Pre-Lecture Quiz due one-half hour before the start of class.
(See “Lecture Readings” in the course website before taking the quiz.)
9Apr W
Supplemental Lecture #7 Post-Lecture Quiz deadline
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10 Apr Th
Supplemental Lecture #8, "Key Elements in Successful Personal Financial Planning."
Pre-Lecture Quiz due one-half hour before the start of class. (See “Lecture Readings”
in the course website before taking the quiz.)
11 Apr F
Supplemental Lecture #8 Post-Lecture Quiz deadline.
Quiz 25, Lesson 15a deadline
15 Apr T
Optional Review Session at regular time and location.
Lesson 15b to be completed (No quiz is given for this lesson but the material is
included in Exam 3.)
16 Apr W
Exam Review Session (time and place to be announced)
23 Apr W
Final Exam deadline (allow for enough time to finish the exam by the Testing Center
closing time)
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Lesson Breakdown:
Lesson &
(Quiz)
DVD Lesson/ (time)
HW
Topics
Problems
Optional
Text
Chap: Pages
1a
#1 (Beginning through “General
Purpose Financial Stmts.”) 49*
minutes
None
*Excludes time to review Hints and
Walk Throughs
1b
Quiz 1 (cover
1a and 1b)
2a
Quiz 2
2b
Quiz 3
3a
Quiz 4
3b
Quiz 5
4a
Quiz 6
#1 (“Brief Review” through End) 97
minutes
#1, 2 ,3
moderate*
*indicates
degree of
difficulty and
time required
-What is a business?-Kinds of
businesses -Financing a
business, debt vs. equity
financing -Financial vs.
managerial accounting -General
purpose financial statements
1: 1-12
-Useful business information Comparable and credible -The
role of GAAP, SEC, FASB,
AICPA, IRS -CPA's and external
audits -Accounting education and
careers -Legal forms of business
ownership: proprietorship,
partnership, corporation Corporate governance
1: 13-20
-The general purpose financial
statements -The Balance Sheet Assets, liabilities, owners' equity
defined -The Income Statement Revenues and expenses defined
2: 30-35
11: 516-517
2: 47-49
5: 202-208
11: 516-520
#2 (Beginning through Prob.#5) 78
minutes
#4, 5 (light)
#2 (“Expanded Equation” through
End) 68 minutes
#6,7,8 (heavy)
-The expanded accounting
2: 30-47
equation -Relationship of financial
statements -The Statement of
Cash Flows -Financial statement
formats
#3 (Beginning through Prob. #9) 85
minutes
#9 (moderate)
-Asset Valuation -Historical Cost
2: 49-51
Principle -Monetary Measurement 3: 76-97
Concept -Separate Entity
Concept -First steps in an
accounting system -Recording
transactions/journal entries
#3 (“Posting to the General Ledger”
through End) 28 minutes
#10,11,12
(heavy)
-Steps in an accounting system,
continued -Posting to the general
ledger -Trial balance: What and
Why? -Preparing the financial
statements
3: 97-105
-Steps in an accounting system,
continued -Accrual vs. cash basis
accounting -Revenue recognition
and matching principles Adjusting for prepaid expenses adjusting for unearned revenues
4: 130-134
#4 (Beginning through Prob. #15) 69
minutes
#13,14, 15
(moderate)
67
2: 38-39
2: 35-37
2: 38-42
4: 135-142
4b
Quiz 7
Financial
Practice Set
5a
Quiz 8
5b
Quiz 9
6a
Quiz 10
#4 (“Unrecorded Expenses and
Revenues” through the End) 81
minutes
Financial Practice Set (all) 117
minutes
#16,17,18, 19
(heavy)
Complete
Practice Set
(Very Heavy)
-Adjusting for unrecorded
expenses and revenues -Closing
the books -Computerized
accounting systems -Account
analysis
4: 135-142
4: 148-150
3: 104-105
-Role of subsidiary ledgers and
See the
special journals in an accounting Financial
system -Comprehensive review of Practice Set
accounting system
#5 (Beginning through Prob. #20) 61
minutes
#20 (light)
-Complicating revenue
6: 230-237
transactions -Accounting for sales
2: 38-42
discounts -Accounting for sales
returns and allowances -Gross
margin and % markup defined*
#5 (“Uncollectible A/R Overview”
through the End) 75 minutes
#21,22,23, 24
(heavy)
-Accounting for uncollectible
accounts receivable -Accounting
credit card receipts*
6: 237-243
#6 (Beginning through Prob. #26) 69
minutes
#25,26 (light)
Perpetual inventory accounting Purchase discounts and returns Perpetual inventory cost flows:
specific identification, LIFO, FIFO,
and moving weighted average
(Exclude
periodic
inventory
approach)
7: 289-294
7: 297-302
7: 309-310
6b
Quiz 11
#6 (“Effects of Inflation” through the
End) 48 minutes
#27,28
(heavy)
Perpetual LIFO, FIFO and
moving weighted average
applications -The effects of
inflation and deflation on results Physical inventory: What and
Why?
(Exclude
periodic
inventory
approach)
7:295-297
7: 297-302
7: 309-310
7
Quiz 12
#7 (All) 85 minutes
#29,30,31
(moderate)
Multi-step formatted income
8: 345-346
statement -Payroll taxes -Sales
8: 351
taxes -Other operating expenses 8: 361-363
Internal Controls
5: 187-195
5: 201-202
6: 236-237
68
8a
Quiz 13
#8 (Beginning through “Subsidiary
Ledger for Equipment”) 59 minutes
#32 exclude
part d (light)
Also do Prob. 32, parts a,b,c and e at
this time. Part d is to be done with 8b.
8b
Quiz 14
9a
Quiz 15
9b
Quiz 16
10a
Quiz 17
#8 (“Repairs, Maintenance,
Improvements” through the End) 67
minutes
No Quiz
8: 358-360
9: 393-394
9: 399-402
9: 403-404
#32 part d, 33, Long-term assets, continued 34 (light)
Accounting for repairs,
maintenance and improvements Accounting for sale or disposal Accounting for intangible assets
and goodwill -Accounting for
natural resources
9: 405-406
#9 (Beginning to Prob. #36) 59
minutes
#35, 36
(moderate)
Long-term liabilities -Accounting
for notes payable -Accounting for
mortgage notes payable
10: 461-464
#9 (Bonds Payable to the End) 91
minutes
#37, 38,39,
40, 41 (heavy)
Long-term liabilities, continued Bonds and common bond
terminology -Debt vs. equity
financing -Characteristics of
common and preferred stock Accounting for the issuance of
common and preferred stock Calculating preferred dividend
rights -Accounting for dividend
declarations and payments
10: 468-469
Introduction to financial analysis Measures of liquidity: current and
acid-test* (quick) ratios Measures of leverage: debt and
debt/equity ratios -Pros and cons
of leverage -Calculating %
increases from year to year *Measures of management: A/R
and inventory turnover and Days
sales in A/R and Inventory
14: 668-670
Measure of profitability: EPS Measures of stock value: book
value per share* and P/E ratio Forecasting earnings: vertical
analysis (common-size income
statements)
14: 673
#10 (Beginning through “Days Sales
in Inventory: Analysis”) 99 minutes
#42, 43
(moderate)
Also do Prob. #42 and #43 at this
time
10b
Long-term or operating assets Accounting for acquisition Accounting for depreciation, Straight-line and units of
production methods of
depreciation -Partial-year
depreciation
#10 (“Measure of Profitability” to the
End) 80 minutes
# 44, 45
(heavy)
Exclude Prob. #42 and #43
69
9: 409-411
9: 411-415
10: 471
(bonds
issued at
face value
only)
11: 516-522
11: 526-530
14: 671
14: 681
14: 683-684
14: 685-686
8: 362
14: 676-678
11
#11 (All) 44 minutes
#46, 47 (light)
Financial vs. managerial
accounting -Cost terminology:
product vs. period costs for
merchandising and manufacturing
companies -Stages of
manufacturing inventory: raw
materials, WIP, finished goods
15: 729-733
Product cost accumulation
methods for a manufacturing
business: process cost vs. job
order cost systems -Job order
costing: job cost record and the
flow of costs
16: 758-761
#50,51, 52
(very heavy)
Job order cost system's basic
journal entries -Utilization of a job
cost record -Complications in
accounting for manufacturing
overhead -Predetermined
overhead rates and application of
overhead to WIP
16: 761-772
#53, 54
(moderate)
Cost behaviors with changing
volume -Variable costs, fixed
costs, stepped costs and mixed
costs defined -Relevant range
implications in analysis
15: 734-735
#55,56,57, 58
(heavy)
Approaches to CVP analysis:
graphical and equational Determining profit or loss with
changing volume -Contribution
margin defined -Expanded CVP
equation and applications
20: 10211034
None
Business planning and budgeting
overview -The steps in preparing
an operating budget
18: 872-877
Quiz 18
12a
Quiz 19
#12 (Beginning through “Job Order
Cost Example: Flow of Costs”) 33
minutes
#48, 49 (light)
Also do Prob. #49 at this time
12b
Quiz 20
#12 (“Basic Journal Entries” to the
End) 89 minutes
Exclude Prob. #49
13a
Quiz 21
#13 (Beginning through “Mixed Cost
Analysis: High-Low Method”) 74
minutes
Also do Probs. #53 and #54 at this
time
13b
Quiz 22
#13 (“Approaches to CVP Analysis”
to the End) 58 minutes
Exclude Probs. #53 and #54
14a
Quiz 23
#14 (Beginning through “Sequencing
of a Budget”) 53 minutes
15: 735-737
16: 759-760
16: 775-776
16: 780
16: 782
20: 10101021
18: 878-879
Ex3
18: 889 Ex 5
-890
14b
Quiz 24
15a
Quiz 25
#14 (“Example: Operating Budget” to
the End) 72 minutes
#59,60,61, 62,
63 (very
heavy)
Preparing an operating budget for 18: 878-889
a manufacturing business: sales,
18: 904-907
production, direct material
purchases, direct labor and cash
flow budgets -Pro-forma financial
statements
#15 (Beginning through “Make vs.
Buy”) 79 minutes
#67
(moderate)
Non-routine business decisions Relevant costs and revenues in
decision making -Make vs. Buy
decision example
Also do Prob. #67
15: 737-740
21: 10761081
21: 10841086
70
15b
No Quiz
#15 (“Discontinue vs. Add” to the
End) 70 minutes
#64,65,66, 68
(very heavy)
Exclude Prob. #67
Discontinue or add a product line
-Pricing a special order -Selecting
product emphasis given limited
critical resources -Determining
whether to further process a
product
21: 10881092
21: 10961097
21: 10811082
21: 10941096
21: 1092
* Topic not included in the Textbook. See DVD Lesson Notes and Problems.
71
II.
Sample Graduate/MBA Syllabus
Dr. Kay Guess from St. Edwards University created the following syllabus. She has graciously allowed us
to display her syllabus as an example of how other instructors use our model and software. We have
reviewed this syllabus and course. We find her methods both innovative and effective. If you choose to
use this syllabus as a reference for your own course, you may do so provided you to send a final copy of
your syllabus to both Dr. Guess and us. Her email address is below.
St. Edward's University
Accounting Principles and Concepts
ACCT 5301.01
Dr. Kay Guess
Office Hours: M & T 5:00-6:00
Phone: 894-3548 (Home) 448-8562 (Office)
Email: aundreag@admin.stedwards.edu
Class: Tues. RAGS 338
Office: Trustee Hall. 312
FAX: 416-5819
Required Text and Materials:
“Introduction to Accounting: The Language of Business Set #1” produced by Brigham Young University.
Downloaded at www.accountingthelanguageofbusiness.com
“Managing By The Numbers” by Chuck Kremer & Ron Rizzuto with John Case, published by Basic
Books
“Learning With Cases” by Leender, Erskine & Leenders published by Ivey
Cases: Download from Harvard Business School Publishing. Instructions sent via email.
Hand Held 5-function Calculator (bring to every class) This is just an inexpensive calculator.
Optional Textbook: (this is NOT required or recommended – it is the same as the accounting
software)
“Accounting Concepts & Applications” by Albrecht, Stice, Stice, & Skousen, 9th edition, by Southwestern
Course Description:
The focus of this course is on the compilation, interpretation, application and utilization of basic principles
and concepts of accounting for the purpose of understanding and constructing financial statements and
for the evaluation of financial and administrative reports used in financial and managerial decision
making.
Learning Outcomes – Accounting 5301
1. To learn the accounting principles of basic record keeping, such as, double-entry record-keeping,
matching, realization of income and expenses, and providing values for assets and debts
(liabilities).
2. To learn many of the underlying accounting concepts, such as, relevance, reliability, verifiability,
neutrality, comparability and consistency, within the constraints of materiality, conservatism and
relative cost benefit.
3. To learn the methods used to analyze and properly account for individual business transactions.
4. To learn the methods used to prepare financial statements such as the income statement, the
balance sheet, the cash flow statement and the statement of stockholders’ equity.
72
5. To learn the methods applied in a basic cost system that are used in managerial accounting.
6. To learn basic budgeting and different methods of cost analysis related to managerial decisions,
evaluations and planning.
Course Objectives:
1. Apply the accounting principles of basic bookkeeping, such as, double-entry record-keeping,
matching, realization of income and expenses, and providing values for assets and liabilities.
2. Apply the underlying accounting concepts to the recording of transactions
2. Apply the methods used to analyze and properly account for business transactions
3. Apply the correct accounting method in the preparation of the balance sheet, the income
statement, the statement of cash flows and the statement of stockholders’ equity
4. Recognize and identify the elements of product cost and differentiate between product and period
costs
5. Explain a basic cost system, analyze cost behaviors and apply that system to the cost flows from
inventory to cost of goods sold To apply several different costing methods to products and
services.
6. Develop budgets and apply cost-volume-profit analysis, break-even analysis and incremental
analysis in managerial decisions
Class Policies:
Quizzes and exam cases are a reflection of the material covered on the accounting software and in class
and from information in the book, “Managing by the Numbers.” Class contribution points CANNOT be
made up when you miss class for any reason. The class sessions are run by the students NOT the
professor. As you listen to the software please write down concepts you do not understand and email
questions to me prior to class (this should be done so that I receive the questions a day before class).
Classes are NOT lectures because you have lectures on the software. Classes are for the purpose of
your getting clarification on issues or concepts you do not understand. You MUST come to class with
definite questions and problems. “I do not understand any of it” is not a question that can be addressed
by the professor. Some students also find it helpful to form small study groups (two or three seems to be
the best number) and this is encouraged if you are struggling with the material. Students are responsible
for all announcements made concerning changes in the syllabus or class.
Part of this class is called a “case class.” This means you are graded on your contribution to the class
discussion of the case. Class contribution is defined as: meaningful contributions to class discussions
that move the class forward, comments that stay on the point being discussed and questions that move
the class in a forward direction. The case discussions are “discussions” that are only facilitated by the
professor. The students are the contributors and analyzers, not the professor. The professor will ask
questions but will not give answers. The class will determine the best answers to the cases, except
exam cases. Class attendance gets you “zero” points for contribution (please see explanation later in the
syllabus). This means just being present does not count toward contribution points. Speaking may make
you uncomfortable at first but as you contribute you will become more comfortable with this process.
Most students state they enjoy the case method very much and find it a very good learning vehicle.
Course Grading:
Your grade for this course will be determined as follows: A= 90%; B=80%, C=70%, D=60%, F below 60%.
Exam cases
Contribution
Case Write-ups
Quizzes
50% of grade
20% of grade
10% of grade
20% of grade
The pre and post-tests are assessment instruments. The pre-test should be taken prior to your doing any
reading or work assigned in the class. Neither affects your grade but the post-test must be completed
73
before you will receive your final exam grade. The pre-test tells me how much you knew before you took
the course and the post-test how much you learned by taking the course. If you do not know any of the
questions on the pre-test that is okay. However, you should make high scores on the post-test.
Information to enhance your learning:
1. Quizzes are taken on Blackboard and will be available only during the week in which the material is
assigned. If you fail to take a quiz you receive a zero (0) for that quiz. Quizzes are timed and once the
time allotted for the quiz is over, the quiz will shut down automatically and you cannot start it again. No
quiz can be taken more than once. You must start and finish a quiz in one sitting. The quizzes cannot be
reset by me so if you fail to take the quiz or if you have a power outage while taking the quiz, I cannot do
anything to solve that problem for you or allow you to re-take the quiz. Your week runs from Tuesday to
Tuesday since our class meets on Tuesday evening.
2. One part of the class meeting each week will be used to do short problems that you will receive from
me. Print the problems and bring them to class with you. You should work those prior to coming to class.
Questions from students will be addressed and explained by me during class. Small groups will be
formed (two people) and the problems will be shared with your “partner.” The problems will then be
covered in class. It is the students responsibility to email questions or topics to the professor prior to the
class so the professor will know what material the students are having difficulty with and can plan for
additional examples to explain the material. If you do not send topics/questions then there will be no new
examples/material presented. This is your class and if you want to get the most out of it, then your
contribution and participation is expedient.
3. There will be certain cases assigned as exam cases. You will do a complete write-up on those cases
using the format provided. The book “Learning With Cases” is a guide to help you learn how to analyze a
case.
4. There is a practice set in the software (between lessons 4&5) that I would highly recommend that you
work until you understand the material. It will not be graded. Please omit the “special journals” on the
practice set.
5. This is a class that places responsibility for learning with the student. However it is not a class where
you can work at your own pace. There are no in-class lectures but I am available by email, phone and in
my office during office hours. There is a great deal of help available to students. I welcome your visit or
call and want to help each of you succeed in this course. Please keep up. Most students find it almost
impossible to catch up if they fail to do their lessons on a timely basis. The first part of the class is much
more time consuming than the later part. There is nothing I can do to alleviate this time crunch because
you must cover the CD’s before you can do the cases.
6. The Introduction to Accounting: The Language of Business software. Do NOT attempt to write down
every word Norm says, no more than you would write down every word if I were lecturing a class. Listen,
concentrate, print out the power points (several to a page) before you start the lesson, work the sample
problems (without watching Norm work them first) and then see if you understand and can explain out
loud, or in writing, the concept he has covered. This is how you know if you have a grasp of the concept.
Work the problems I send to you before coming to class. These problems will be more difficult (in some
cases) or they will have a little different way of applying the concept and this will allow you to see if you
understand and can apply the concept or if you have just memorized how “Norm” did it.
7. If the cash flow lesson is not unlocked in your software, please follow the instructions to unlock it.
This is a very important lesson that is covered very early in the course.
Tips to Performing Well in This Course

Study Hard and Actively Participate: As with any subject, the more you study the better you
will perform. Be an active participant as you watch the lessons. Students who sit back idly and
74




just casually watch the lessons do not perform as well. Use the provided controls to stop the
lessons to take notes or rewind difficult topics to review them again.
VSP: Make sure you are responsible with the Variable Speed Playback controller. Setting the
speed too high just to finish faster is not responsible.
Homework Problems: Although the homework problems in each lesson will not be submitted or
graded, your ultimate success on quizzes and exams will be directly correlated to your ability to
understand and do the homework problems on your own. Because homework solutions and
explanations are provided, many students are tempted to simply refer to the solutions rather than
hammering through a problem on their own. This is a serious mistake. The best learning takes
place when students work through problems on their own before resorting to a provided solution.
You must be able to understand and do these homework problems on your own without
references to do well on the exams or quizzes.
Take Good Notes: Make sure you have a hard copy of the lessons notes (or Learning Resource
Packet) when you are watching the lessons. You should be taking good notes on this hard copy
as you progress through the lesson.
Seek Assistance: If you are having difficulty, seek additional assistance by attending the review
sessions or talk with your instructor or T.A.
Do the Following Before Taking a Quiz or an Exam
 Homework Problems: Make sure you can answer and feel comfortable with every homework
problem in the table of contents in each lesson.
 Glossary: Open the Glossary and make sure the “By Lesson” button is depressed. Make sure
you know the definitions of every word in the section(s) you are studying. Clicking the blue
hyperlinked words will help you learn the definition of a word by establishing context within
another definition. See picture below.
 Practice Module: Open the practice module and work through each problem in the section(s)
you are studying. Take time to work the solutions on paper and then review your work by clicking
on the “Show Answer” button. See picture below. If you answer a question incorrectly, review
that topic in the lesson again.
 Review Sessions: Attending the exam review sessions is an excellent way to prepare for the
exams.
 Review Notes: Review your notes just prior to taking a quiz or exam.
 Review lessons: Go through each line in the table of contents and make sure you are
comfortable with every topic. Some students find great success by reviewing the lessons at the
highest attainable VSP speed.
 Review Slides: By clicking the next and back buttons, you can move through the lessons and
review the slides. If you find a slide you need to review, click on the synchronize button to
synchronize the video to the slide.
75
Learning with cases:
1. It will be extremely beneficial to your understanding of the case method of learning/teaching if you
will read (over and over if necessary) the book Learning With Cases.
2. Small groups can be very beneficial to your learning. If you choose to become part of a small
group (no more than three people) be sure that someone within the group has an understanding
of the material. Students can help each other a great deal. However, if you have not read or
prepared the case prior to the small group meeting time, it is best if you not attend the meeting.
Each person has a responsibility to add value to the small group meeting. There is no “value
added” for others if you are not prepared. Please respect your group members by always being
prepared to share.
3. Be prepared when you enter the classroom. Sometime during the semester you can expect to be
asked to do one or more of the following: open a case discussion, give numerical calculations,
challenge what another classmate has said and/or asked to summarize the class comments at
the close of the case..
4. The success of this class rests in your hands. Each of you has a responsibility to enhance the
learning of others as well as to learn. We learn as much from one another as we do from the
case itself. Share!! Do not be afraid because your comments may seem “dumb” or “not very
interesting” or “too short” or whatever other idea you may have about your own comments. Your
answer or thoughts are important to both your classmates and myself. Be open, be honest, be
kind and be respectful, but please TALK - after raising your hand and being recognized.
Listen carefully to others so you do not disrupt the flow of the thoughts being discussed. You
should build on what the other person just said and not start another conversation about a
different issue until the issue on the floor has been resolved. Remember “quality” is more
important than “quantity.” Some students say they are just “shy” and do not feel comfortable
speaking. Remember a large portion of your grade rests on your contribution. I will do all I can to
help you but I cannot speak for you.
Contribution Grading:
Contribution or participation is my subjective assessment of your contribution to class discussions. I will
assign contribution points at the end of each class period. A scale of –1 to3 will be used.
A three means you had great insight and a high level of evidence related to the case analysis.
A two means you moved the class forward and offered new information/calculations, etc.
A one means you had insight and added value but did not necessarily move the class forward.
A zero means you added very limited value to the discussion
A negative one (-1) means you were present but added no value to the discussion.
Comments that are thoughtful, meaningful, logical, supported by evidence and fit with the flow of the
conversation will receive a high grade. Comments that are frivolous, unsupported, illogical or disrupt the
flow of the class discussion will receive a low grade. Adding material to case facts that are not present in
the case will cause points to be deducted.
You will receive mid-semester feedback concerning your level of contribution. If you have talked too
much or too little that will be noted as well as the “value” of your contribution to the class. In addition, you
will rank yourself and the members of the class as to the value of each class member’s contribution. Your
ranking will have no influence on grades but will be used as a way for me to gauge my own subjective
grading related to contribution.
76
Assignments:
Problems are associated with each chapter on the software. Please complete the problems before
looking at the solutions. If you choose to look at the solutions prior to doing the work (or in place of doing
the work) you will find you will not learn the material. This phase of your study is considered by the
professor to be a crucial part of your learning experience. After you complete the chapter and the
assignments, if there are concepts or problems you do not understand, please make a note of them and
email me your questions. These will be covered in class so everyone will hear both the questions and the
answers. I have found when one student does not understand a concept it is likely that others in the
class also do not understand.
Your success in this course requires your careful attention to, and use of, the assignment sheet that
accompanies this syllabus. The assigned chapters and related work must be completed each week.
Please do not fall behind. We cover a lot of material in a short period of time and students find it very
difficult to play “catch up.”
Important accounting concepts cannot be fully understood until you apply them by problem solving.
Problems will be emailed to you or posted on Blackboard each week. Completing these assignments are
an excellent way to prepare for exams and they serve as a basis for case analysis and discussions. For
most students, success in this course is the result of doing problems until they grasp the concepts.
Cases are assigned and each student will download them directly from the Harvard Business School
website. Instructions will be given on how to acquire them. Please download and print the cases per the
HBS instructions. Students have found they need to do these all at one time. Attempting to return to site
and print at different times has caused some difficulty. If you have any problems downloading the cases
once you have purchased them, please follow the directions and contact HBS. I cannot solve any
problems associated with the purchasing and downloading of cases. Some cases are not available
through HBS and those will be posted on Blackboard by me.
Case Preparation and Discussions
Case prep notes will be collected each time a case is discussed. These will be collected at the
beginning of class so please bring two sets of your prep notes with you to class. One set to handin and one to use during class. I do not mind hand written notes as long as they are legible.
The case method is a proven method used for many years at the Harvard Business School, and many
other schools around the world, to teach students using real-world scenarios. Generally, there is no
absolutely “correct” solution to a case. You are expected to thoroughly prep the cases, to be ready to
answer questions in class, to contribute to the case discussion and be ready to take a stand and defend
your answer based on case facts (not your opinion) only. You cannot add “facts” to the case. There are
questions associated with each case for you to answer to help you in your preparation. These questions
will not necessarily be the ones asked during class. An important point for you to remember when
preparing a case is for you to “step into the shoes of the decision maker.”
Important accounting concepts cannot be fully understood until you apply them by problem solving.
Therefore, the cases are problems that need to be solved. Most of the time there is more than one way
to solve the (a) problem(s). Success in accounting is generally the result of solving problems and then
more problems until you grasp the concepts. It is a wrestling match of sorts. You wrestle with the
problems, mentally, and then physically attack them as you search for a way to help the decision maker
using concrete principles and applicable solutions. You should be prepared to take a stand and offer
evidence to support that stand.
77
We will be covering some financial and managerial accounting because in some cases the two overlap.
The overlap helps you to understand the importance of how accounting in business is part of business
processes and reporting for decision-making, planning and control. The cases are multi-topic and many
aspects of the case will be explored. Do not let the “topic” of the case lead you to think you must only
look for that area in the case as far as discussion or preparation is concerned.
Case preparation: When preparing a case you must do a few things that are not too complicated to
explain but the applying can be a little challenging for most students.
1. Read the opening paragraph and the last paragraph of the case. This helps you discover what
the case is about – the issues that are being addressed.
2. Scan the exhibits
3. Read the case all the way through making notes of people, events and issues.
4. You should ask the questions: who, what, why, where, when, and how as each relates to the
issues that need to be solved or addressed.
5. Take a stand (make the decision) – with evidence from the case to back-up your decision.
Exams:
Your exam cases are to be worked by you and you alone. No small group work can be done on exams.
You must sign a pledge to that affect on the cover sheet of each exam case. Exams will be cases that
you will solve. These exam cases cover a variety of topics in the course material. They are not just one
topic but are comprehensive in nature. That is the nature of cases. Exams will be typed, with a cover
sheet. You should state the issues, provide evidence (generally this is numerical as well as verbal), do a
complete analysis of the case. This means you will answer the questions and go much further in your
analysis. Complete sentences and paragraphs are required in the exam write-ups. Spelling and
grammar will be checked and points taken off when there are errors. You should begin each section of
the exam with the question you are attempting to answer. The APA format must be followed.
Grading of cases is subjective. It is my purpose to be fair and objective in grading and grade everyone
based on the same criteria of excellence. However, if you object to any grading you are welcome to
make an appointment to discuss the issue with me privately. Awarding of contribution points is also very
subjective. You have the right to discuss your contribution with me but it is I who must make the
judgment call as to quality of contribution to the class discussions.
Exams are turned in at the beginning of the class period and none are accepted late. A missed exam will
result in a score of "0"; THERE, ARE NO MAKE UP EXAMS under most circumstances. Not completing
an exam on time and turning it in at the beginning of the class will only be allowed when evidence of a
valid reason (serious illness or death in the family) is substantiated to the instructor BEFORE (if
reasonable) the exam. The student will be required to provide proof of any reason for missing an exam.
All of your case exams will be returned the following class period and you can review them at that time. If
you miss that class period, you must come to my office to review your exam. Exams are kept in my office
where you can review your’s at any time during the semester. No exam may be kept by a student. We
are required to keep all exams on file for one academic year.
Special Circumstances:
If you have a medical, psychiatric or learning disability and require accommodations in this class, please
let me know early in the semester or as soon as you are eligible for accommodations. You will first need
to provide documentation of your disability to the Disability Coordinator, located in Academic Planning
and Support on the first floor of Moody Hall.
CONDUCT:
Consult the current Student Handbook for appropriate conduct and consequences of inappropriate
conducts, such as plagiarism and cheating. This handbook is also a good reference for available
resources at St. Edward's.
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Grading Policy for all accounting classes:
St. Edward’s University is committed to providing an excellent education for each student enrolled at the
University. The University wishes that ethics be applied in every area of the education experience, this
includes the assigning of grades. When you leave the MBA program it is expected by your employers
that you can write, speak and present in a professional manner and that you have acquired other skills
that enhance your productivity and learning, including the ability to work in groups. I will do my best to
give assignments and exams that develop and test your acquiring of these skills.
It is my responsibility to assign grades in this class based only on performance without bias or prejudice.
Grades will be assigned based on the total number of points you accumulate in this class. The class
average will have no bearing on your grade and neither will the number of A’s, B’s, C’s, or D’s earned in
the class. Your grade is your accumulated points as a percentage of the total number of points that can
be earned in the class. For example, if there are 450 points possible for the class and you have a total of
409.5, or greater, you will receive an A. There is no curving on exams or papers. A grade of C is
considered failing in a graduate class but the course does not have to be retaken. A grade lower than a
C means the course must be retaken. No “extra credit “ work can be assigned to any student unless the
entire class is assigned the same work.
Group project work is sometimes a problem for students because they think their grade should not be
influenced by the group work. Where there are group projects, your grade will be impacted by the
number of points the group earns on the project as well as your individual participation in the group.
Class contribution is also a part of your grade and it is based on my assessment of your active, involved
contribution in class. This is subjective on my part and I do my very best to be totally fair in this area.
You are free to ask me about your contribution quality. I expect you to have completed all work assigned
prior to coming to class and be ready to discuss the material in class. Contribution is your involvement in
the discussion of the material being covered in class during that class period and your discussion of any
assigned homework. Silence is not golden, but neither is talking without substance.
If you object to my grading on any exam, paper or project you have one week from the time you receive it
back to come by my office and speak with me about it. All exams, papers, projects, etc. will be kept in my
office. Final projects will not be reviewed in class but can be viewed at the beginning of the following
semester. All other work will be reviewed in class by the student and then returned to me before leaving
class. If you wish to review them again, you may come by my office. If you are not in class when work is
returned, then you must come to my office to see your work. No late work is accepted except in a
medical emergency.
My academic ethics and integrity does not allow me to give grades that are not earned in a class. The
integrity of the program and of the class is jeopardized when one student receives special concessions by
being assigned a higher grade than was earned or is able to do additional work to raise a grade when all
of the class is not given the same opportunity. It is my responsibility to see that this does not happen.
Curving of grades is also not an acceptable practice. Students that earn an “A” in a class generally find it
very unfair to curve low grades to a higher level when an A cannot be curved. This is a form of prejudice
against the A students. We have had students protest against this practice.
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LEARNING
Real learning is the ability to store information in long-term memory (called propositions). As new
information arrives in short-term memory, it combines with stored propositions to form new propositions.
It is this linkage of prior memory with new information that is the key to learning. Providing the conceptual
framework up front creates in long-term memory basic propositions about financial accounting. This
framework is what Accounting Principles at the first level (5301) gives to students. The brief review of
these propositions in other courses further stimulates the memory. As new information is introduced in
other courses, it combines with the stored concepts—which makes it easier to learn the material. In
addition, the concept linkages dispel the notion that financial accounting (or any other accounting) is a
subject that can be mastered only through memorization.
The literature of cognitive psychology tells us that extensive elaborations lead to greater recall.
Elaboration is the process of adding something to new information to make it more meaningful. The
examples in the book are elaborations designed to add substance to the subjects being discussed. It is
known that people learn from various methods of exposure to new information. In order for a concept to
become “ours” there is a process of learning that takes place that uses at least three of our natural
senses: sight, hear, touch (actually do a problem). We will forget 95% of what we hear unless we makes
notes; we will forget 90% or more of what we read, unless we actively participate by making notes or
outlines as we read; but we will remember a large percentage of the material we read, hear discussed
and then actively participate in the learning. Learning is then reinforced by our practicing those things we
have read, heard and written (i.e., worked problems). All of us have different ways of learning (i.e., some
must see what is being taught, not just hear it). Some people learn better or recall material better if they
have personally verbalized it (that is why study groups and teamwork is very helpful for some). All of us
can learn. All of us put information in our brains by struggling through the application of the concepts.
The learning is made permanent in our brains by struggling and concentrating.
We cannot recall what we do not know and we cannot know what we have not put into our grid system
(the brain) and we cannot put into our grid system that which we have not practiced. We recall material
based on how it is associated with other information in our brain. That is why sometimes you will see a
test question and know that you should know how to do a problem of this type but the question does not
provide the correct stimulus to make your brain recall the information. You cannot make the association
between the question and the correct answer or method of doing the problem. The association cannot be
there unless you have mastered the concepts through practice.
I offer this for your information so you will better understand the process of learning. I hope it will be
helpful to you in understanding why we teach accounting as we do, the purpose behind the assignments
and exams, and how all of this relates to your learning. “Gods of education require pain to learn” by
Aristotle.
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Case Write-Up Format
Your case write-up should follow the following format:
Issue(s) (decision that needs to be made):
Decision Maker:
Decision (you make the decision as you “stand in the shoes of the decision maker”)
Evidence to support the decision you have made.
Each of the above should be a subtitle within your paper. You need to clearly identify the issues that the
decision maker is struggling with and “step into his/her shoes.” You need to take on the role of the
person in the case and identify with their problems, concerns, frustrations, etc.
You must provide evidence from the case not from what you think should be in the case but what is
actually within the case. You can apply accounting concepts to the answers but you cannot change the
case facts. For example, you cannot say, “they could return the merchandise” unless the case states
they have the right of return. You cannot project facts that are not present in the case.
There may be more than one decision maker. If so, you need to be both of those people. You MUST
defend any position you take and you must come to a definite decision. Is it right/wrong, yes/no, buy/not
buy, etc. You cannot take a “middle of the road” stance. You can speak to the issues and facts that
relate to the case problem.
Please proof your work and be sure you have taken a stand. Evidence must come from within case facts
and must be clearly stated.
Case write-ups are not of any specific length. You use your judgment as to when you have thoroughly
covered the issues and offered enough support for your decision. DO NOT rewrite the case for me. I
have read the case so it is not necessary to give me all of the information in the case. Be concise, clear,
correct in the stating of facts and thorough. Be sure you have looked at all sides of the issue(s) and at all
person(s) who will be affected by the decision(s). You will not receive points for restating the case facts
that do not relate to the issue(s) but may cause a deduction of points.
A cover sheet with your name typed on it is required for all case write-ups. Sometimes I have difficulty
reading a signature (even my own at times). You can work in small groups for all cases EXCEPT FOR
EXAM CASES. No group work or help from any outsider is to be used on EXAM CASES. On the cover
sheet for each exam case please type the following and then sign it:
I have neither given nor received help on this exam nor do I know of anyone else having done so. A
violation of this pledge is considered cheating.
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Please sign and return this page to me at the first class meeting:.
I have read and understand the syllabus. I agree to comply with all requirements and conditions stated in
the syllabus. I agree to discuss with the professor, in a prompt and courteous manner, any problems or
concerns that I may be having in class so they can be resolved. This makes the class better for me and
my fellow students both this semester and in future semesters. I take responsibility for fulfilling all the
requirements for this class in order to make it a positive learning experience for both me and my fellow
students. I understand the learning objectives and will strive to attain them.
Name
Signature
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Acct 5301 Class Schedule
This is a tentative schedule that is subject to change. It is your responsibility to note any changes that
may be made to this schedule. Any such changes will be posted on Blackboard. I will try to adhere to the
schedule but changes may be necessary to enhance learning of the material.
Due Date
Class Schedule
All is due to
be
completed
by the date
in this
column
All lessons have quizzes on Blackboard. Please take them when you have
completed your lesson. They can only be taken once and they are graded
automatically for you.
1/18
Pre-test MUST be completed prior to your beginning any course work and is
available on Blackboard UNTIL January 9th. This should be taken prior to your
readings.
Lesson 1 and 2 on CD and related quizzes (on Blackboard) You should have
already read the first 75 pages of the book “Managing by the Numbers.” You may
complete the reading of this book with Lesson 10 on the CD.
Case: Stacey Adams (found on Blackboard)
Your personal balance sheet and income statement. Numbers can be changed to
protect your privacy.
1/25
Lesson 3 & 4 Case: Maria Hernandez & Assoc.
2/01
Cash Flow lesson. Cases: Three Examples of Cash Flows and Preparing and Using
CFs
2/08
Lesson 5
2/15
Lesson 6 EXAM case: Chemalite
2/22
Lesson 7 & 8 Case: EXAM case: Limited Editions
3/01
Lesson 9 & 10 Complete the reading of Managing by the Numbers (or re-read last
portion on financial ratio analysis)
3/08
EXAM Case: Clarkson Lumber.
3/15
SPRING BREAK Week
3/22
Lesson 11 & 12 EXAM Case: Monterry Manufacturing
3/29
Lesson 13 & Lesson 14 Cases: Catawba Industries and Lillie Tissages
4/5
Lesson 15 Case : Wilkerson Company and Activity Based Costing Note
4/12
EXAM case: Baldwin Bicycles
4/19
EXAM case: Dakota Office Products Post test must be completed.
Case: Crystal Meadows of Tahoe and Thumbs Up Video
Undergraduate Model Syllabus
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III.
Sample Distance Learning/Online Model Syllabus
Accounting 200 Syllabus
Principles of Accounting
Summer 2008
Professor Norm Nemrow
513 TNRB, email: nemrow@byu.edu, 422-5601
Office hours: By appointment only
TA email: acc200@gmail.com; TA telephone: 422-3783
Welcome to Accounting 200: Accounting 200 is a great introduction to the world of business. In fact,
accounting is sometimes referred to as the language of business. That’s because the very purpose of
accounting is to provide meaningful financial information to individuals and institutions that have an
interest in business, whether they be investors, creditors or managers. Most Americans today invest in
business through the stock market. Intelligent investors seek out financial information on companies to
make more informed investment decisions. It is a company’s accounting system that creates and provides
the information used by investors. Business managers likewise need information produced through
accounting in making the day-to-day operational decisions that improve a company’s performance and
profitability. If you hope to become a successful investor or manager, you will need to understand
accounting information to improve your decision-making. In some respects, this class will actually be a
"principles of business" class in that it is necessary to understand what a business is and how it operates
in order to account for its activities and generate useful financial information. Our study of accounting will
provide insight into many basic business issues and questions including the following:
 In the start-up of a new business, what options are available for the raising of capital and what
are the advantages and disadvantages of those options?
 How do stockholders realize a return on investment and what tools are available to investors to
reasonably predict such returns?
 What can cause a profitable business to fail?
 How can an unprofitable company pay dividends to its shareholders?
 How can management accurately anticipate the impact on profits given changes in product
pricing, costs, and volume?
This class will be an important class for anyone who is interested in someday participating in or investing
in a business. Welcome to the world of business!
Course Learning Objectives: After completing Acc 200, a student should be able to
1. Construct and interpret a balance sheet and income statement understanding its usefulness in
business and investment decision making.
2. Construct and use internal accounting tools such as cost-volume-profit analysis, budgets, product
cost reports, and non-routine decision analyses to understand how to make better business
management decisions.
3. Comfortably use accounting terms and concepts in business-related discussions.
4. Intelligently converse about the following areas:
a. The role of accounting in international business
b. The role of information systems in financial reporting
c. Fraud and how to prevent fraud
d. The theory and practice of income taxes
e. Investing in stocks
f. Career planning and spiritual decision making
g. Managerial accounting as a competitive tool
h. Personal budgeting and financial planning
5. Write a brief, focused memo demonstrating basic understanding of background business reading
material.
6. Use computer-aided learning tools and online learning resources.
7. Manage workload in a self-paced learning environment.
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Keys to Success in Accounting 200: Accounting 200 is not a class that requires proficiency in higher
math. Although accounting and business finance are numbers oriented, the math involved is basic. What
is important in a study of accounting and business is the ability to organize and analyze information.
Business language and terms are carefully defined, and business communication requires the precise
and proper use of those terms. An ability to read and communicate with clarity is critical to success in this
class.
Because this class is being taken with no required classroom lectures and homework is not turned in for
credit, a higher level of self-discipline may be required in order to successfully complete this course. You
cannot afford to get behind. It is strongly recommended that you set up a personal study schedule that
specifically earmarks time when you will regularly work on the material for this course. If you do not stay
up with the Course Schedule provided in this syllabus, you will not successfully complete this course.
Is this an Online Course and what are my options? This section of Acc 200 is being taught entirely
through the use of DVDs and online materials. Attendance the first two days of class is required for
purposes of introduction and a course technology demonstration; however, following those first two days,
class attendance is optional.
Course Website: All class communications, including any announcements or schedule changes along
with all quizzes, submissions of reports, checking of grades, etc., will be handled through the course
website. The website can be found by going to the BYU homepage at www.byu.edu, clicking on
"Blackboard”, then logging in and clicking on Acc 200. You must be properly registered for the course for
it to appear on Blackboard. If you have any problems accessing Blackboard or the course website,
please go immediately to the Center for Teaching and Learning (CTL) to get assistance. The CTL is
located at 3704 HBLL (entrance is on the south side of the HBLL). If you cannot go there personally, the
IMC telephone # is 422-1888.
When on the course web page, take some time and explore the tools available to you by clicking on all
the menu options. DO NOT, however, click on any quiz until you are actually ready to take it. You
only have one opportunity to complete each quiz. Once started, a quiz cannot be exited in a way
that allows for it to be subsequently available to you.
DVD, Text and Homework: All of the material that you will be held accountable for on quizzes and
exams for this course is contained in the Introduction to Accounting: The Language of Business DVD
(Version 2.0). In the past this DVD has been available for purchase through the BYU Bookstore. That
will not be the case this semester. Instead a new online method for purchasing the DVD content will
be used. Instructions for the purchase, installation and registration of "Introduction to Accounting: The
Language of Business" DVD or CDs is available on the course website in the “Syllabus” section. All
students will be required to purchase the DVD content except for students who are retaking the course
and have a previously purchased copy.
Important Note: The DVD content was originally produced and is periodically updated at a substantial
cost to BYU. BYU owns the DVD. The School of Accountancy has licensed the DVD for use with Acc
200. The price that you pay when you purchase the DVD content is a licensing fee. This licensing fee
allows you to use the DVD content for Acc 200 and for any other personal, non-business purpose. The
DVD content may not be copied or shared with any other students taking Acc 200 now or in the future.
A supplemental textbook for this course is also available but is not required. This textbook can be
purchased at the BYU Bookstore and is Accounting Concepts and Applications by Albrecht, Stice, Stice,
and Swain (10th edition). The readings from the text supplementing the material covered in the DVD’s are
noted by page numbers in the Lesson Breakdown in this syllabus. A number of these textbooks are
available for your review and use free of charge in the Accounting TA Lab located in 1820 HBLL (1st floor
south end).
The DVD Lessons present course material in a video lecture format with synchronized graphic displays,
sample problems, and homework problems and solutions. Although the homework problems in each
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lesson will not be submitted or graded, your ultimate success on quizzes and exams will be directly
correlated to your ability to understand and do the homework problems on your own. Because homework
solutions and explanations are provided, many students will be tempted to simply refer to the solutions
rather than hammering out a problem on their own. This will be a serious mistake. The best learning takes
place when students work through problems on their own before resorting to a provided solution. You
must be able to understand and do these homework problems on your own to do well on the exams.
Students opting to utilize the textbook as the primary learning source may access the homework
problems and solutions through the Accounting 200 Learning Resource Packet available at the BYU
Bookstore as noted below.
Other Helpful Learning Resource: The Accounting 200 Learning Resource Packet is available at the
BYU Bookstore for about $10 and includes the following:
Lesson Notes, Homework Problems and Solutions (The Notes, Problems and Solutions
are organized Lesson by Lesson with the Notes for each lesson provided first followed by
the Problems and Solutions for that lesson)
Financial Practice Set Problem and Solution
Exam Topic Sheets (notes topics to be included on exams)
Sample Exam Problems/Solutions
Students from previous semesters recommend that the DVD Lessons are most effectively used by first
purchasing the Accounting 200 Learning Resource Packet and then utilizing the Lesson Notes included
in that packet for additional note-taking while viewing the DVD Lessons.
Syllabus and Lesson Quizzes: One (1) Syllabus Quiz and twenty-five (25) Lesson Quizzes will be
given online through the course website during the semester. The Syllabus Quiz is intended to
encourage your reading of this syllabus and is made up of five (5) True/False or Multiple Choice
questions worth 1 point each, or a total of 5 points. If you read this syllabus carefully you should be able
to respond to each question correctly.
The primary purpose of Lesson Quizzes is to encourage and reward your timely progress through the
course materials. Each lesson quiz covers only the material for the DVD lesson(s) noted in the Lesson
Breakdown included in this syllabus. A student should be well prepared for a quiz if they have reviewed
and understand the DVD lesson materials and can do the included homework problems on their own.
Students may also wish to review “Practice Module” problems and “Glossary” definitions found on the
DVD plus additional “Optional Practice Quiz Questions” found on the course website by clicking “Quiz and
Exam Help.”
Each Lesson Quiz has five (5) True/False or Multiple Choice questions worth 1 point each, or a total of 5
points per quiz. Only the 18 best out of the 25 possible quiz scores will be used in determining a student's
final grade. No late quizzes will be given for any reason. If you are unable to take a quiz due to illness or
for any other reason, then that quiz will become one of the seven to be dropped for grading purposes.
The Syllabus Quiz and all Lesson Quizzes are to be taken online through the course Blackboard site. The
quizzes are to be taken on your own without notes or any other reference materials. The quizzes are
timed and limited to 10-20 minutes depending on the particular quiz. You may use a calculator and some
scratch paper to perform any work required for the quiz questions and you should have them readily
available before you begin. You may take the quizzes as early as you wish but not later than midnight on
the dates noted in the Course Schedule.
Remember, do not click on a quiz until you are actually ready to take that specific quiz. Once
started, a quiz cannot be exited in anyway that allows for it to be subsequently available to you.
You must be careful when selecting a quiz to make sure it is the correct quiz # and that you are
ready to go. If you have technical problems in accessing or submitting a quiz or the server goes
down while taking a quiz, then email the TAs as soon as possible at "acc200@gmail.com" and
report the problem. The TAs will reset the quiz for you within two working days of notification. All
correspondence with the TAs must include your Section number, Route Y ID # and a clear
description of the problem experienced.
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It is possible to print out the quiz questions and your responses immediately following quiz submission by
simply typing Ctrl P. Printed quizzes may be used for future exam preparation and study. However, these
printed quizzes are not to be used for cheating. No one should utilize another person's printed quiz in
preparation for the taking of a quiz themselves. It would also be a violation of the Honor Code to provide a
printed quiz to another student for use prior to their taking of that quiz. Because the same quizzes are
used from semester to semester, the use or providing of quizzes from prior semesters would also
constitute cheating. If you have in hand any quizzes from a prior semester they are to be thrown away
before proceeding with this course. Please honor this institution and yourself by following these
guidelines for printed quiz use.
Communicating with the TAs: All communication with TAs should be done through
acc200@gmail.com or by phone at 422-3783. Do NOT use the email function within Blackboard. These
emails frequently get sidetracked into the personal email accounts of the Accounting TAs. Instead, use
the email address (acc200@gmail.com) that we have specifically set up for communication between Acc
200 students and the Acc 200 TAs. In all communications with the TAs or your instructor please include
your name and section number. For many of you, your email address itself communicates your name.
But for some of you (and you know who you are), your email address offers no hint about what your name
is.
Supplemental Lectures, Pre-Lecture Assignments, Quizzes and Reports: Eight supplemental
lectures required for this course are provided in the Introduction to Accounting: The Language of
Business DVD materials. These lectures are in addition to the 15 basic Lessons. Instructions to
access the supplemental lectures: First, insert the Media DVD that was distributed the first night of
class or is available in the Accounting Lab. Initiate the program by clicking the “Introduction to
Accounting” icon on your desktop. Click on “File,” then “Settings” and type “FD757FF7” into the
Curriculum Code box found on the lower right hand side of the window, and then click OK. Then click on
“File” > “Open Lesson” and under the 15 lessons you will see Lectures 1-8. Click on the appropriate
lecture.
Important: Before you view each supplemental lecture a pre-lecture assignment must be completed.
The assignment for each lecture is provided in the "Lecture Readings" folder of the course website.
These assignments may require online submission of a report or the taking of an online quiz, through
Blackboard, that must be completed before viewing of the actual lecture on the DVD. After viewing the
lecture, an online quiz or report is also required. The deadlines for the pre and post-lecture
quizzes/reports are noted in the Course Schedule section of this syllabus. For grading purposes, these
pre and post-lecture quizzes and/or reports will amount to 5 points each and the lowest four (4) quizzes or
assignments will be dropped from the total point accumulation in determining the final grade.
The material covered in these supplemental lectures will not be included on the course exams.
Exams: Three exams will be given throughout the course as noted below. You may take the exams as
early as you wish but not later than the dates noted in the Course Schedule.
Exam #1 (100 points): Covering Lessons 1 - 4 and the Practice Set concepts, (33 multiple
choice worth 3 points each with 1 point for simply taking the exam) 3 hour time limit.
Exam #2 (120 points): Covering Lessons 5 - 10 (40 multiple choice worth 3 points each), 3.5
hour time limit.
Final Exam (150 points): Covering Lessons 11 - 15, (10 True/False worth 2 points each and
43 multiple choice worth 3 points each with 1 point for simply taking the exam) 4 hour time
limit.
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The exams are to be taken at the Testing Center on campus. Check with the Testing Center to verify
operating hours and policies. Make sure that you have allowed for sufficient time in dealing with possible
lines and allow for adequate time to complete the exam. No late exams will be given except upon
professor pre-approval for documented health problems, family emergencies, or university-approved
absence. The exams are not comprehensive and will cover only the materials in the lessons designated.
Only basic four-function or scientific calculators may be used in the Testing Center. An optional review of
the exam solutions will be held in class subsequent to each exam as noted in the Course Schedule.
Exam Preparation: In order to perform well on exams, a student must not only have a solid
understanding of the course material but must also be able to apply that understanding to actual
problems. The best evidence of a student’s adequate preparation for the exams is his or her ability to do
the lesson homework problems on his or her own without assistance. Students must understand how to
do the problems and the reasoning behind the solutions. If students are having difficulty understanding
the homework problems, they should consider reviewing the DVD problem walkthroughs a number of
times and may also need to review the actual lecture or text materials. A basic overall review of the
course materials may also be helpful exam preparation and can be facilitated by simply reviewing the
Lesson Notes.
Included on the DVD under “Resources” or in the Accounting 200 Learning Resource Packet are three
sample exams with solutions provided at the end of each exam. These sample exams provide students
with an opportunity to experience typical exam questions in a multiple-choice format. These sample
exams are not intended to provide complete coverage of topics, but can be a valuable tool in exam
preparation. If a student takes the sample exam and does poorly, it probably means there is need for
additional study of the lesson examples and homework problems. Also available through the DVD and the
Accounting 200 Learning Resource Packet are Exam Topic Sheets, which simply highlight the topics to
be covered in each exam.
Students who are struggling to understand the course material are encouraged to utilize the Accounting
TA Lab and/or see the course instructor for assistance.
Financial Statement Review Assignment: In this assignment you are to first read the instructions found
on the course website by clicking on “Syllabus and Other” and then “Financial Statement Review
Assignment.” You will then access a publicly-held company’s web page on the Internet, read the
company’s most recent annual report and write a report responding to the instructions found on the
course website. The purpose of this assignment is to make students aware that financial statements are
actually prepared and available to the public to assist in investment decisions. The things to be discussed
in this class have actual practical application in the real world of business. (Note the DVD mistakenly
says this assignment is not to be handed in. That is incorrect. The report noted above must be
submitted for credit.)
Financial Practice Set: The "Financial Practice Set" is included in the Accounting 200 Learning
Resource Packet or is printable from DVD Lessons under “Resources.” This Practice Set is designed to
simulate a simplified real world accounting experience and will reinforce your understanding of the flow of
information in a company’s accounting system. Although accounting systems used today are typically
computerized, this manually-prepared accounting practice set will be helpful in understanding the
underlying basis for small business computerized systems. You should not begin this Practice Set until
you have completed Lesson #4 and reviewed the "Financial Practice Set" Lesson on the DVD which
explains in detail how to proceed with and complete the assignment. It should be completed before you
take the first exam as noted in the Course Schedule.
This Practice Set will not be graded and will not be turned in; however, a number of concepts to be
learned through the successful completion of the Practice Set will be covered on the first exam. The
solution to the Practice Set is also available in the Learning Resource Packet or is printable from the
DVD Lessons. This solution is provided to assist you in completing the Practice Set and helping you
through the process. Some students will be tempted to simply review the solution rather than actually
complete the assignment themselves. Such an approach is shortsighted and will rob you of an excellent
learning experience. Actually working through the Practice Set on your own or with the assistance of a
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fellow student will be a terrific review in preparation for the first exam and will reinforce much of the
material in Lessons 2-4.
Having Fun and Doing Good: Too often students get so caught up in their studies that they forget that
there is life out there beyond books. It is important to maintain your perspective. To assist you, this class
rewards you for having some fun. You will be given 5 points to embark on an adventure and report on it
through the online website by clicking on "Quizzes/Assignments" on the cover page of the site. For our
purposes, an adventure will be defined as something fun that you would not have taken the time to do
except it be for this assignment. The report should be a simple one-paragraph description of what you
did.
In addition, it is important to remember the value of service in our everyday lives. There are times when
things get tough and the pressures of life seem overwhelming. When we take the time to look beyond our
own problems and serve others, not only do we make someone else's life more bearable but we are lifted
too. To encourage you in this area, 5 points will be given for a simple act of service done this semester
and reported in a short one-paragraph report submitted through the online web site. This does not need
to be elaborate service -- even cleaning up after a roommate is great if done in the proper spirit. These
reports must be submitted before a date near the end of the semester in order to receive credit; see the
Course Schedule for the exact due date.
Grading is based on the following:
Exam #1
100 points
Exam #2
120 points
Final Exam
150 points
Syllabus Quiz
5 points
Lesson Quizzes (18 x 5 points)
90 points
Have Fun/Do Good Reports
10 points
Supplemental Lecture Quizzes/Assignments (12 x 5)
points)
Financial Statement Review Assignment
60 points
5 points
Total Possible Points
540 points
Grade Breakdown:
Grade
Percent
Point Range
A
92%
497 – 540
A-
89%
B+
Grade
Percent
Point Range
C
69%
374 – 399
481 – 496
C-
64%
347 – 373
86%
465 – 480
D+
60%
326 – 346
B
81%
438 – 464
D
55%
299 – 325
B-
77%
416 – 437
D-
50%
272 – 298
C+
74%
400 – 415
E
Below 50%
Below 271
There are NO make-up, grade improvement projects or curving in this class. These are the final
grade breakdowns...period.
Note: Grades are assigned based on points. The percentages given in the table above are merely for
reference purposes. For example, a score of 436 out of 540 is 80.74% which can be rounded up to 81%.
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However, the grade is given based on the points, not on the rounded percentage. Accordingly, a student
earning 436 points will get a grade of B minus even though it is 81% rounded and is only two points from
the “B” cutoff of 438 points. In this particular case some students will ask for a bump-up in their grade
given they are so close to a “B”. Unfortunately that will not happen. The reason is that, with over 1,300
students taking Acc 200 in an average semester, there are approximately 150 students each semester
who are within one or two points of the next highest grade interval. The only fair way of assigning grades
in such a situation is to clearly publish the grade cutoffs in advance and then stick to them. That is what
we do in this class.
Completing the Course on an Expedited Basis: Students may complete the lesson quizzes, exams,
and supplemental lecture quizzes/reports as early as they wish. The dates noted in the syllabus are
deadlines dates but a student may move through the material on an expedited basis if they wish.
Accounting Lab, TA Assistance, Tutoring, Professor Assistance: An accounting lab (Room 1820
HBLL , 1st floor south) will be open during the semester from 9 a.m. to 5 p.m. Monday thru Friday (closed
for Tuesday Devotionals and Forums). Teaching Assistants (TAs) will be in the lab to give you needed
assistance in understanding the material. The lab also has 16 computers available for viewing the DVD.
This lab will be a valuable tool for those who find the material difficult to understand and need additional
help along the way. In addition, you may attend the TA optional review sessions conducted in the JSB
Auditorium for the day class students (Sections 1&2). The dates and times for these review session are
provided in the “Course Schedule.” You can also call the TAs to ask any questions by phone at 4223783. Free tutoring is also available through the Jacobsen Center for Service and Learning at 2010 WSC
or call 422-4793. Students are encouraged to request a tutor early in the semester. Students should also
feel free to visit their professor during office hours or make other personal appointments if they have
questions or need assistance on any of the course material. We want to help you be successful in your
learning.
Entry into the School of Accountancy: Students considering application to the School of Accountancy
(SOA) should be aware of the importance of this class in gaining admittance to the school. If you have
any questions regarding the admissions process and standards of admissions, you should inquire at the
SOA student advisement office in 560 TNRB.
What should students do or think if they struggle in this course? To be honest, experience has
shown that some students seem to have a natural talent or gift in accounting and perform well on the
multiple choice exams with what seems to be relatively little effort. Other students struggle but can master
the course material with considerable study, review, and practice in doing the homework and sample
exam problems. Finally, for some students, the analytical thinking process associated with accounting is a
skill that they seem to have been born without and, regardless of the time and effort put into the course, it
just doesn’t come. Even though these students understandably become frustrated, they should not
become too discouraged. A lack of talent in accounting is not the end of the world. It probably just means
that you have a personality and will end up hiring an accountant rather than doing it yourself.
Some students express concern that they do not perform well on multiple-choice exams. The nature of
business and accounting information makes examination through multiple-choice exams a logical testing
vehicle rather than essay or other means. Experience has shown that the multiple-choice exams for
accounting do provide a fair reflection of comprehension and ability in the subject. It is true that many
students may understand basic business and accounting concepts but have trouble when detailed
information is provided and has to be organized, analyzed, and used to produce a problem solution.
Unfortunately, that is the nature of accounting and business information, and an exam that eliminates
those characteristics is not a fair reflection of the course content.
Finally, if you are one of those students with your heart set on a degree in business but cannot seem to
overcome an accounting stumbling block, be comforted in the fact that most people who are hired in and
become successful in business do not have an undergraduate degree in business. Businesses are
interested in people who are personable, can get along and work well with others, and can learn on the
job. Your college degree is not the most significant factor in determining your ultimate success in
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business. Please see the course professor if you are struggling in the course and need any
counsel or advice.
Don't blame the technology! Students struggling in this course might be inclined to blame the
technology for their performance in the class. Even though average performance in this class is equal to
or better than that previously experienced with a more traditional classroom approach, they suggest that
use of a textbook and live lecture is a better way for them to learn. Frankly, the only possible advantage
of having a live lecture as opposed to the DVD Lesson is the ability to ask questions during the lecture.
Unfortunately, in a large live lecture class there is in reality very little opportunity for the answering of
individualized questions in a way that still leaves time for the coverage of the assigned material. In
addition, because students vary so much in their abilities in this class, it is difficult to respond to one
student's questions when it may not be shared by a majority of students. The TA Lab and professor office
hours have been set up specifically to provide the kind of personalized assistance that some students
may need. Students who do not utilize the TA Lab, or the professor's office hours to seek out
personalized help in understanding the course material and ask questions have little justification in
blaming the DVD course format for their failings. It is also recommended that students form study groups
in or outside of the Lab so that they can review and discuss the material together. If you need assistance
in forming a group, the Lab TA's can help you. Maybe the best learning method of all is found in attempts
to explain concepts to others.
It is also worth noting that the DVD Lessons are far superior in terms of content than can be achieved in a
classroom lecture. The DVD has more graphics and more detailed explanations than can be provided in
limited class time. One of the great advantages of the DVD is that it allows students to pause and take
notes without missing any discussion. In addition, they can be replayed if a concept is missed along the
way. The DVD is a terrific learning tool if properly used. It should be viewed at a place and time where
you can concentrate. Utilize the printed Lecture Notes for note taking while viewing the DVD. Do not try to
watch too much at one sitting. Break it up. Do the homework problems yourself to the best of your ability
before viewing the hints and walkthroughs. Use the TAs and the professor to respond to questions you
have on the material.
Honor Code: Although the vast majority of students are honest and live their lives in accordance with the
Honor Code, we do on occasion have individuals who seem to think that the Honor Code does not apply
to them. Just so we all understand: everyone is expected to adhere to the BYU Honor Code. Cheating or
other violations may result in a failing grade for the course or other disciplinary action.
Cheating, as the term is used in the Marriott School, refers to actions such as the following on the part of
a student:
1. A student sharing information with other students about the content of, or answers to,
examinations, quizzes or other graded work in which student interaction is not specifically
allowed.
2. A student getting another person to take a quiz or exam in his/her place, or to prepare submitted
work which is then submitted as the student’s work.
3. A student who, either before or while taking a quiz or exam, visually or otherwise obtains
information from another person’s quiz or exam.
4. A student using "crib" sheets or other unauthorized information while taking a quiz or exam.
5. A student gaining access, by theft or by any other means, to a quiz or exam or unauthorized
information about a quiz or exam before it is taken.
Violations of the Honor Code in this class are taken very seriously. Do not compromise your integrity for
something as insignificant eternally as a grade in this class.
Preventing Sexual Harassment: Title IX of the Education Amendments of 1972 prohibits sex
discrimination against any participant in an educational program or activity that receives federal funds.
The act is intended to eliminate sex discrimination in education. Title IX covers discrimination in
programs, admissions, activities, and student-to-student sexual harassment. BYU's policy against sexual
harassment extends not only to employees of the University but to students as well. If you encounter
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unlawful sexual harassment or gender-based discrimination, please talk to your professor; contact the
Equal Employment Office at 422-5895 or 367-5689 (24-hours); or contact the Honor Code Office at 4222847.
Students With Disabilities: Brigham Young University is committed to providing a working and learning
atmosphere that reasonably accommodates qualified persons with disabilities. If you have any disability
that may impair your ability to complete this course successfully, please contact the University
Accessibility Center (422-2767). Reasonable academic accommodations are reviewed for all students
who have qualified documented disabilities. Services are coordinated with the student and instructor by
the UAC. If you need assistance or if you feel you have been unlawfully discriminated against on the
basis of disability, you may seek resolution through established grievance policy and procedures. You
may contact the Equal Employment Office at 422-5895, D-282 ASB.
Diversity: It is illegal to discriminate in the workplace based on race, color, religion, sex, national origin,
disability, or age. Furthermore, such behavior at a Christian university such as BYU is unacceptable.
Therefore, no one in Acc 200 should be belittled for any reason. If you experience such an offense in Acc
200 (caused either by the instructor or a fellow student), contact your instructor or, if you feel it necessary,
the director of the School of Accountancy (Kevin Stocks).
Policy on the Use of Technology in the Classroom: Technology is an essential part of today’s
learning environment. However, technology, when used inappropriately, can also hinder learning. Most
Marriott School students have, at some point, sat next to students who use their laptops or PDAs in class
to check email, talk to friends, instant message, search the internet or play online games. Unfortunately,
every person sitting around such students is distracted by this behavior and classroom learning
decreases. As a result of these distractions, the Marriott School has implemented the following policy
effective Fall semester, 2006: Using laptops or PDAs in class to legitimately take notes or work on class
projects is allowed, but all other use of laptops or PDAs in class is prohibited. Please respect your fellow
students and professors and abide by this Marriott School policy.
Marriott School Cell Phone Policy: Students are not allowed to use cell phones in classes in the
Marriott School. Please turn them off as you enter the classroom and keep them stored out of sight in
your backpack or pocket. Not only can these phones be a disruption to class, but with built-in cameras,
students have been known to take pictures of grade rolls containing sensitive information, examinations
and even fellow classmates. Each of these represents an invasion of privacy that we need to avoid.
Some students have also used their phones to send text messages during class sessions, sometimes to
other students in the same classroom. On rare occasions these text messages have contained
confidential information that is not appropriate to share during a class session. For these reasons, the
Marriott School has chosen to establish a policy that all cell phones should be turned off and kept stored
out of sight during all class sessions. Please comply with this Marriott School policy.
Tips to Performing Well in This Course



Study Hard and Actively Participate: As with any subject, the more you study the better you
will perform. Be an active participant as you watch the lessons. Students who sit back idly and
just casually watch the lessons do not perform as well. Use the provided controls to stop the
lessons to take notes or rewind difficult topics to review them again.
VSP: Make sure you are responsible with the Variable Speed Playback controller. Setting the
speed too high just to finish faster is not responsible.
Homework Problems: Although the homework problems in each lesson will not be submitted or
graded, your ultimate success on quizzes and exams will be directly correlated to your ability to
understand and do the homework problems on your own. Because homework solutions and
explanations are provided, many students are tempted to simply refer to the solutions rather than
hammering through a problem on their own. This is a serious mistake. The best learning takes
place when students work through problems on their own before resorting to a provided solution.
You must be able to understand and do these homework problems on your own without
references to do well on the exams or quizzes.
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

Take Good Notes: Make sure you have a hard copy of the lessons notes (or Learning Resource
Packet) when you are watching the lessons. You should be taking good notes on this hard copy
as you progress through the lesson.
Seek Assistance: If you are having difficulty, seek additional assistance by attending the review
sessions or talk with your instructor or T.A.
Do the Following Before Taking a Quiz or an Exam
 Homework Problems: Make sure you can answer and feel comfortable with every homework
problem in the table of contents in each lesson.
 Glossary: Open the Glossary and make sure the “By Lesson” button is depressed. Make sure
you know the definitions of every word in the section(s) you are studying. Clicking the blue
hyperlinked words will help you learn the definition of a word by establishing context within
another definition. See picture below.
 Practice Module: Open the practice module and work through each problem in the section(s)
you are studying. Take time to work the solutions on paper and then review your work by clicking
on the “Show Answer” button. See picture below. If you answer a question incorrectly, review
that topic in the lesson again.
 Review Sessions: Attending the exam review sessions is an excellent way to prepare for the
exams.
 Review Notes: Review your notes just prior to taking a quiz or exam.
 Review lessons: Go through each line in the table of contents and make sure you are
comfortable with every topic. Some students find great success by reviewing the lessons at the
highest attainable VSP speed.
 Review Slides: By clicking the next and back buttons, you can move through the lessons and
review the slides. If you find a slide you need to review, click on the synchronize button to
synchronize the video to the slide.
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Course Schedule
Students are expected to check the course website every day for announcements and schedule
changes. You are accountable for any changes in the course schedule or any other course
modifications posted on the website. To miss any assignment, supplemental lecture, quiz, exam,
etc. because of a date change or modification that has been posted on the website because you
did not check it on a daily basis will not be excused!!!!!
Date
Event
6/23 M
Course Introduction
6/24 T
Course Introduction (continued)
Lesson 1a should be completed but there is no quiz required (See the Lesson
Breakdown below on p.14 to note material to be covered in each lesson segment.)
6/25 W
Quiz 1, Lesson 1b deadline
6/26 Th
Optional TA Review Session, regular class time and place
Quiz 2, Lesson 2a deadline.
6/27 F
Quiz 3, Lesson 2b deadline.
6/30 M
Optional TA Review Session, regular class time and place
Supplemental Lecture #1 Pre-Lecture Report deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Instructions on how to access the actual lecture can be found in this syllabus under
the paragraph “Supplemental Lectures, Pre-Lecture Assignments, Quizzes and
Reports”)
Quiz 4, Lesson 3a deadline
7/1 T
Optional TA Review Session, regular class time and place
Supplemental Lecture #1 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture. Instructions on how to access the lecture can be found in this
syllabus under the paragraph “Supplemental Lectures, Pre-Lecture Assignments,
Quizzes and Reports”)
Financial Statement Review Assignment deadline
7/2 W
Optional TA Review Session, regular class time and place
Quiz 5, Lesson 3b deadline
7/3 Th
Optional TA Review Session, regular class time and place
Quiz 6, Lesson 4a deadline
7/7 M
Optional TA Review Session, regular class time and place
Quiz 7, Lesson 4b deadline
7/8 T
Optional TA Review Session, regular class time and place
Optional Exam Review Session, time and place to be announced
Financial Practice Set should be completed (not turned in or graded).
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7/9 W
Optional TA Review Session, regular class time and place
Exam #1 deadline (Allow enough time to finish the exam by the Testing Center
closing time. Be sure to allow for the possibility of long lines.)
7/10 Th
Optional Exam #1 Solution Review in class at scheduled class time and place – only
opportunity to review the Exam 1 problems and solutions; the exam is NOT available
in the Accounting Lab
* Last day to drop the class for academic reasons.
7/11F
Quiz 8, Lesson 5a deadline
7/14 M
Optional TA Review Session, regular class time and place
Supplemental Lecture #2 Pre-Lecture Report deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 9, Lesson 5b deadline
7/15 T
Optional TA Review Session, regular class time and place
Supplemental Lecture #2 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture. Instructions on how to access the lecture can be found in this
syllabus under the paragraph “Supplemental Lectures, Pre-Lecture Assignments,
Quizzes and Reports”)
Quiz 10, Lesson 6a deadline
7/16 W
Optional TA Review Session, regular class time and place
Quiz 11, Lesson 6b deadline
7/17 Th
Optional TA Review Session, regular class time and place
Supplemental Lecture #3 Pre-Lecture Quiz deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 12, Lesson 7 deadline
7/18 F
Supplemental Lecture #3 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture. Instructions on how to access the lecture can be found in this
syllabus under the paragraph “Supplemental Lectures, Pre-Lecture Assignments,
Quizzes and Reports”)
Quiz 13, Lesson 8a deadline
7/21 M
Optional TA Review Session, regular class time and place
Supplemental Lecture #4 Pre-Lecture Quiz deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 14, Lesson 8b deadline
7/22 T
Optional TA Review Session, regular class time and place
Supplemental Lecture #4 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture.)
Quiz 15, Lesson 9a deadline
7/23 W
Optional TA Review Session, regular class time and place
Quiz 16, Lesson 9b deadline
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7/24 Th
Holiday
7/25 F
Quiz 17, Lesson 10a deadline
7/28 M
Optional TA Review Session, regular time and place.
Optional Exam Review Session, time and place to be announced
Lesson 10b to be completed (No quiz is given for this lesson)
7/29 T
Optional TA Review Session, regular time and place.
Exam #2 deadline (allow for enough time to finish the exam by the Testing
Center closing time)
7/30 W
Optional Exam Solution Review, regular time and place.
Supplemental Lecture #5 Pre-Lecture Quiz deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 18, Lesson 11 deadline
7/31 Th
Optional TA Review Session, regular class time and place
Supplemental Lecture Quiz #5 Post-Lecture Quiz deadline. (This quiz is to be taken
after viewing the lecture.)
Quiz 19, Lesson 12a deadline
8/1 F
Quiz 20, Lesson 12b deadline
8/4 M
Optional TA Review Session, regular time and place.
Supplemental Lecture #6 Pre-Lecture Report deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 21, Lesson 13a deadline
8/5 T
Optional TA Review Session, regular class time and place
Supplemental Lecture #6 Post-Lecture Quiz Report deadline. (This quiz is to be
taken after viewing the lecture.)
Quiz 22, Lesson 13b deadline
8/6 W
Optional TA Review Session, regular time and place.
Supplemental Lecture #7 Pre-Lecture Quiz deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 23, Lesson 14a deadline
8/7 Th
Optional TA Review Session, regular class time and place
Supplemental Lecture #7 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture.)
Quiz 24, Lesson 14 b deadline
8/8 F
Supplemental Lecture #8 Pre-Lecture Quiz deadline. (See the Pre-Lecture
Assignment and Readings in “Lecture Readings” folder of the course website.)
Quiz 25, Lesson 15a deadline
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8/11 M
Optional TA Review Session, regular class time and place
Supplemental Lecture #8 Post-Lecture Quiz deadline. (This quiz is to be taken after
viewing the lecture.)
Lesson 15b to be completed (no quiz is given for this lesson)
8/12 T
Optional Exam Review Session, time and place to be announced
8/14 Th
Final Exam deadline (allow for enough time to finish the exam by the Testing
Center closing time)
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Lesson Breakdown:
Lesson &
(Quiz)
DVD Lesson/ (time)
HW
Topics
Problems
Optional
Text
Chap: Pages
1a
#1 (Beginning through “General
Purpose Financial Stmts.”) 49*
minutes
None
*Excludes time to review Hints and
Walk Throughs
1b
Quiz 1 (cover
1a and 1b)
2a
Quiz 2
2b
Quiz 3
3a
Quiz 4
3b
Quiz 5
4a
Quiz 6
#1 (“Brief Review” through End) 97
minutes
#1, 2 ,3
moderate*
*indicates
degree of
difficulty and
time required
-What is a business?-Kinds of
businesses -Financing a
business, debt vs. equity
financing -Financial vs.
managerial accounting -General
purpose financial statements
1: 1-12
-Useful business information Comparable and credible -The
role of GAAP, SEC, FASB,
AICPA, IRS -CPA's and external
audits -Accounting education and
careers -Legal forms of business
ownership: proprietorship,
partnership, corporation Corporate governance
1: 13-20
-The general purpose financial
statements -The Balance Sheet Assets, liabilities, owners' equity
defined -The Income Statement Revenues and expenses defined
2: 30-35
11: 516-517
2: 47-49
5: 202-208
11: 516-520
#2 (Beginning through Prob.#5) 78
minutes
#4, 5 (light)
#2 (“Expanded Equation” through
End) 68 minutes
#6,7,8 (heavy)
-The expanded accounting
2: 30-47
equation -Relationship of financial
statements -The Statement of
Cash Flows -Financial statement
formats
#3 (Beginning through Prob. #9) 85
minutes
#9 (moderate)
-Asset Valuation -Historical Cost
2: 49-51
Principle -Monetary Measurement 3: 76-97
Concept -Separate Entity
Concept -First steps in an
accounting system -Recording
transactions/journal entries
#3 (“Posting to the General Ledger”
through End) 28 minutes
#10,11,12
(heavy)
-Steps in an accounting system,
continued -Posting to the general
ledger -Trial balance: What and
Why? -Preparing the financial
statements
3: 97-105
-Steps in an accounting system,
continued -Accrual vs. cash basis
accounting -Revenue recognition
and matching principles Adjusting for prepaid expenses adjusting for unearned revenues
4: 130-134
#4 (Beginning through Prob. #15) 69
minutes
#13,14, 15
(moderate)
98
2: 38-39
2: 35-37
2: 38-42
4: 135-142
4b
Quiz 7
Financial
Practice Set
5a
Quiz 8
5b
Quiz 9
6a
Quiz 10
#4 (“Unrecorded Expenses and
Revenues” through the End) 81
minutes
Financial Practice Set (all) 117
minutes
#16,17,18, 19
(heavy)
Complete
Practice Set
(Very Heavy)
-Adjusting for unrecorded
expenses and revenues -Closing
the books -Computerized
accounting systems -Account
analysis
4: 135-142
4: 148-150
3: 104-105
-Role of subsidiary ledgers and
See the
special journals in an accounting Financial
system -Comprehensive review of Practice Set
accounting system
#5 (Beginning through Prob. #20) 61
minutes
#20 (light)
-Complicating revenue
6: 230-237
transactions -Accounting for sales
2: 38-42
discounts -Accounting for sales
returns and allowances -Gross
margin and % markup defined*
#5 (“Uncollectible A/R Overview”
through the End) 75 minutes
#21,22,23, 24
(heavy)
-Accounting for uncollectible
accounts receivable -Accounting
credit card receipts*
6: 237-243
#6 (Beginning through Prob. #26) 69
minutes
#25,26 (light)
Perpetual inventory accounting Purchase discounts and returns Perpetual inventory cost flows:
specific identification, LIFO, FIFO,
and moving weighted average
(Exclude
periodic
inventory
approach)
7: 289-294
7: 297-302
7: 309-310
6b
Quiz 11
#6 (“Effects of Inflation” through the
End) 48 minutes
#27,28
(heavy)
Perpetual LIFO, FIFO and
moving weighted average
applications -The effects of
inflation and deflation on results Physical inventory: What and
Why?
(Exclude
periodic
inventory
approach)
7:295-297
7: 297-302
7: 309-310
7
Quiz 12
#7 (All) 85 minutes
#29,30,31
(moderate)
Multi-step formatted income
8: 345-346
statement -Payroll taxes -Sales
8: 351
taxes -Other operating expenses 8: 361-363
Internal Controls
5: 187-195
5: 201-202
6: 236-237
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8a
Quiz 13
#8 (Beginning through “Subsidiary
Ledger for Equipment”) 59 minutes
#32 exclude
part d (light)
Also do Prob. 32, parts a,b,c and e at
this time. Part d is to be done with 8b.
8b
Quiz 14
9a
Quiz 15
9b
Quiz 16
10a
Quiz 17
#8 (“Repairs, Maintenance,
Improvements” through the End) 67
minutes
No Quiz
8: 358-360
9: 393-394
9: 399-402
9: 403-404
#32 part d, 33, Long-term assets, continued 34 (light)
Accounting for repairs,
maintenance and improvements Accounting for sale or disposal Accounting for intangible assets
and goodwill -Accounting for
natural resources
9: 405-406
#9 (Beginning to Prob. #36) 59
minutes
#35, 36
(moderate)
Long-term liabilities -Accounting
for notes payable -Accounting for
mortgage notes payable
10: 461-464
#9 (Bonds Payable to the End) 91
minutes
#37, 38,39,
40, 41 (heavy)
Long-term liabilities, continued Bonds and common bond
terminology -Debt vs. equity
financing -Characteristics of
common and preferred stock Accounting for the issuance of
common and preferred stock Calculating preferred dividend
rights -Accounting for dividend
declarations and payments
10: 468-469
Introduction to financial analysis Measures of liquidity: current and
acid-test* (quick) ratios Measures of leverage: debt and
debt/equity ratios -Pros and cons
of leverage -Calculating %
increases from year to year *Measures of management: A/R
and inventory turnover and Days
sales in A/R and Inventory
14: 668-670
Measure of profitability: EPS Measures of stock value: book
value per share* and P/E ratio Forecasting earnings: vertical
analysis (common-size income
statements)
14: 673
#10 (Beginning through “Days Sales
in Inventory: Analysis”) 99 minutes
#42, 43
(moderate)
Also do Prob. #42 and #43 at this
time
10b
Long-term or operating assets Accounting for acquisition Accounting for depreciation, Straight-line and units of
production methods of
depreciation -Partial-year
depreciation
#10 (“Measure of Profitability” to the
End) 80 minutes
# 44, 45
(heavy)
Exclude Prob. #42 and #43
100
9: 409-411
9: 411-415
10: 471
(bonds
issued at
face value
only)
11: 516-522
11: 526-530
14: 671
14: 681
14: 683-684
14: 685-686
8: 362
14: 676-678
11
#11 (All) 44 minutes
#46, 47 (light)
Financial vs. managerial
accounting -Cost terminology:
product vs. period costs for
merchandising and manufacturing
companies -Stages of
manufacturing inventory: raw
materials, WIP, finished goods
15: 729-733
Product cost accumulation
methods for a manufacturing
business: process cost vs. job
order cost systems -Job order
costing: job cost record and the
flow of costs
16: 758-761
#50,51, 52
(very heavy)
Job order cost system's basic
journal entries -Utilization of a job
cost record -Complications in
accounting for manufacturing
overhead -Predetermined
overhead rates and application of
overhead to WIP
16: 761-772
#53, 54
(moderate)
Cost behaviors with changing
volume -Variable costs, fixed
costs, stepped costs and mixed
costs defined -Relevant range
implications in analysis
15: 734-735
#55,56,57, 58
(heavy)
Approaches to CVP analysis:
graphical and equational Determining profit or loss with
changing volume -Contribution
margin defined -Expanded CVP
equation and applications
20: 10211034
None
Business planning and budgeting
overview -The steps in preparing
an operating budget
18: 872-877
Quiz 18
12a
Quiz 19
#12 (Beginning through “Job Order
Cost Example: Flow of Costs”) 33
minutes
#48, 49 (light)
Also do Prob. #49 at this time
12b
Quiz 20
#12 (“Basic Journal Entries” to the
End) 89 minutes
Exclude Prob. #49
13a
Quiz 21
#13 (Beginning through “Mixed Cost
Analysis: High-Low Method”) 74
minutes
Also do Probs. #53 and #54 at this
time
13b
Quiz 22
#13 (“Approaches to CVP Analysis”
to the End) 58 minutes
Exclude Probs. #53 and #54
14a
Quiz 23
#14 (Beginning through “Sequencing
of a Budget”) 53 minutes
15: 735-737
16: 759-760
16: 775-776
16: 780
16: 782
20: 10101021
18: 878-879
Ex3
18: 889 Ex 5
-890
14b
Quiz 24
15a
Quiz 25
#14 (“Example: Operating Budget” to
the End) 72 minutes
#59,60,61, 62,
63 (very
heavy)
Preparing an operating budget for 18: 878-889
a manufacturing business: sales,
18: 904-907
production, direct material
purchases, direct labor and cash
flow budgets -Pro-forma financial
statements
#15 (Beginning through “Make vs.
Buy”) 79 minutes
#67
(moderate)
Non-routine business decisions Relevant costs and revenues in
decision making -Make vs. Buy
decision example
Also do Prob. #67
15: 737-740
21: 10761081
21: 10841086
101
15b
No Quiz
#15 (“Discontinue vs. Add” to the
End) 70 minutes
#64,65,66, 68
(very heavy)
Exclude Prob. #67
Discontinue or add a product line
-Pricing a special order -Selecting
product emphasis given limited
critical resources -Determining
whether to further process a
product
21: 10881092
21: 10961097
21: 10811082
21: 10941096
21: 1092
* Topic not included in the Textbook. See DVD Lesson Notes and Problems.
102
Topic Breakdown for Sets 1 & 2
Please Read First
As you can notice by going through our topic breakdown, we combine both financial and managerial
topics in each software set. To learn why we designed our courses in this unconventional manner,
please watch the first 10 minutes of our online presentation by going to
http://www.accountingcds.com/learn/undergraduate/undergraduate.htm and clicking on Play
Presentation. We invite all undergraduate programs to consider changing to this content structure.
Regardless if your program follows the traditional topic breakup for its introductory courses (a financial
course followed by a managerial course), our products continue to be an excellent learning tool. We can
bundle the software sets together, enabling your students to have every topic these need for the course.
Please let us know if your school needs this accommodation.
Topics:
Introduction to Financial Accounting:
- What is a business?
- What are the keys to a successful business?
- What is business capital and why is it necessary?
- What options exist in accessing needed capital for
a business?
- What information do providers of capital need in
their investment decisions?
- Financial vs. managerial accounting.
- General-purpose financial statements.
- What are the key characteristics found in useful
financial statement information?
- What is GAAP?
- What is the role of the SEC, FASB and the AICPA
in the providing of useful information to providers
of business capital?
- International standards and the IASB.
- What is the role of a CPA and an independent
audit in the providing of useful information to
providers of capital?
- Why is accounting worth studying?
- What distinguishes a corporation, partnership and
proprietorship as legal forms of doing business?
Introduction
to Accounting
(Set #1)
Expanded
Introduction
(Set #2)
Lesson 1
X
X
Lesson 1
X
X
X
X
X
Reviewed
Reviewed
X
X
Reviewed
Reviewed
X
Reviewed
X
X
X
Reviewed
X
103
General-Purpose Financial Statements:
- The balance sheet and basic accounting equation.
- Assets, liabilities and owners’ equity defined.
- Contributed capital, retained earnings and
dividends defined.
- The income statement.
- Revenues and expenses defined.
- The expanded accounting equation.
- Financial statement articulation.
- The statement of cash flows.
- The statement of retained earnings.
- A classified balance sheet
- Key concepts and principles:
Historical cost
Conservatism
Monetary measurement
Entity Concept
Lesson 2
Accounting Cycle:
- An accounting system.
- Steps in an accounting system designed to
produce financial statements:
Identify transactions
Analyze transactions
Record transactions:
Journal entries
Debits/Credits
Posting to general ledger
Trial balance
Adjusting entries:
Cash vs. accrual basis accounting
Prepayments of expenses:
Initially accounted for as asset
Initially accounted for as expense
Collection of revenues in advance:
Initially accounted for as liability
Initially accounted for as revenue
Accruing expenses
Accruing revenues
Closing entries
Preparation of financial statements
- Account analysis
Lesson 3
X
Lesson 1
Reviewed
X
X
X
X
X
X
X
X
X
X
X
X
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
X
Reviewed
Reviewed
X
Reviewed
Reviewed
Reviewed
Reviewed
Reviewed
104
N/A
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Financial Practice Set: Special journals and subsidiary
ledgers are introduced and a manual accounting system is
set up for a fictional company. Students complete all steps of
the accounting cycle for a series of transactions including the
preparation of financial statements. (These financial
statements are then subject to ratio analysis in a later lesson
focusing on the determination of a reasonable stock value for
the company.) NOTE: Students are told that although this
kind of manual system is seldom used in today’s world, most
computerized systems are programmed to follow the same
flow of information. For that reason, this is a worthwhile
exercise, but not the kind of thing accountants actually do.
X
Sales Revenues and Receivables:
- Revenue recognition issues (expanded):
FOB destination, shipping point
Consignment
Long-term contract
Guarantees
- Sales (cash) discounts
- Sales returns and allowances
- Gross margin % and % markup
- Uncollectible accounts receivable:
- % of ending A/Reviewed and aging methods
- % of net credit sales revenues method
- Credit card sales
- Trade notes receivable
- Factoring A/Reviewed and Discounting /Reviewed
- Sales denominated in a foreign currency
Lesson 5
Lesson 4
X
X
X
X
X
X
X
Reviewed
Reviewed
Reviewed
Cost of Goods Sold and Inventory:
- Perpetual inventory accounting for purchases,
discounts, returns and sales
- Periodic inventory accounting for purchases,
discounts, returns and sales
- Inventory costing methods:
Specific identification:
Perpetual
Periodic
Cost flow assumptions (FIFO, LIFO,
MWA):
Perpetual
Periodic
- Comparison of affects of different cost flow
assumptions
- Physical inventory
- Gross margin method of estimating inventory
- Effect of inventory errors
- Lower of cost or market valuations
Lesson 6
Lesson 5
X
Reviewed
Internal Controls
105
X
Reviewed
X
X
X
X
X
X
X
Reviewed
X
X
Reviewed
X
X
X
Reviewed
Reviewed
X
X
X
Lesson 7
X
Lesson 5
Reviewed
Employee Compensation, Taxes, Contingencies and
Other Items:
- Employee salaries and wages
- Employer payroll taxes
- Employee benefits:
Health insurance
Compensated absences
Bonuses
Stock options
Pension plans
Other postretirement benefits
- State sales taxes
- Property taxes
- Income taxes (current and deferred)
- Contingencies
- Warranty obligations
- Multi-step formatted income statement
- Other income statement items
Extraordinary items
Discontinued operations
Changes in accounting principles
Restructuring charges
Time Value of Money
Lesson 7
X
X
X
X
X
Lesson 6
Reviewed
Reviewed
X
X
X
X
X
Reviewed
Reviewed
X
X
X
X
X
X
X
X
N/A
Lesson 7
(Note: No present or future value tables are used. Students
are required to have a financial calculator with time value of
money capabilities. Examples and problems are
demonstrated with HP10bii and TI BA II Plus calculator
keystrokes)
-
PV and FV of single cash flows
PV and FV of annuities
PV and FVs with uneven cash flows
X
X
X
106
Long-Term Assets:
- Capitalized costs vs. expenses
- Property, plant and equipment:
Acquisition
Basket purchases
Self-constructed assets
Operating and capital leases
Depreciation:
Straight-line and units-of- production
methods
-
-
Accelerated methods
Repairs and maintenance
Improvements
Sale and disposal
Intangible assets
Acquisition
Research and development costs
Advertising costs
Amortization
Goodwill accounting
Natural resources
Acquisition
Depletion
Asset valuations and asset impairment
Lesson 8
X
Lesson 8
Reviewed
X
Reviewed
X
X
X
X
Reviewed
X
Reviewed
Reviewed
Reviewed
X
X
X
X
X
X
X
Reviewed
Reviewed
X
Reviewed
Reviewed
X
X
Reviewed
Reviewed
X
Long-Term Liabilities:
- Basic notes payable
- Mortgage notes payable
- Building equity in real estate
- Bonds:
Common characteristics
Issued at face value
Issued at premium and discount:
Calculating issuance price
Straight-line amortization
Effective-interest amortization
Early retirement
Lesson 9
X
X
X
Lesson 9
Reviewed
Reviewed
X
X
Reviewed
Reviewed
Owners’ Equity:
Lesson 9
X
Lesson 10
Reviewed
X
X
Reviewed
Reviewed
X
X
X
X
X
X
X
-
-
X
X
X
X
Issuance of common and preferred stock
Dividends distributions on preferred and common.
Accounting for cash dividends
Stock dividends
Stock splits
Treasury stock transactions
Statement of retained earnings
Prior-period adjustments
Statement of owners’ equity
Other comprehensive income items
Equity financing in proprietorships and
partnerships
107
X
Financial Statement Analysis:
- Users of financial statements
- Technical and fundamental analysts
- Liquidity Analysis:
Working capital
Current ratio
Quick (acid-test) ratio
- Asset management:
A/Reviewed turnover
Number of day’s sales in A/Reviewed
Inventory turnover
Number of day’s sales in inventory
- Financing operations:
A/P turnover
Number of day’s purchases in A/P
Operating cycle and financing operations
Use of statement of cash flows
Leverage measures:
Debt ratio (debt to total assets)
Debt to equity ratio
Times interest earned
- Performance analysis:
Return on assets
Return on equity
DuPont formula for ROE
EPS
Dividends per share
Dividend payout ratio
Dividend yield
Stockholder return on investment
- Stock valuation:
P/E ratio
Market capitalization
Book value
Book value per share
- Profit projections:
Vertical and horizontal analysis
Lesson 10
X
Statement of Cash Flows and Cash:
By inputting a special code in Set 1, you can access a full
Statement of Cash Flow lesson like the lesson found on Set
2. Please contact us to obtain this code.
- Usefulness of statement in analysis
- Preparation of statement:
Direct method
Indirect method
- Bank reconciliation
108
Lesson 2
Reviewed
Reviewed
X
X
X
Reviewed
Reviewed
X
X
X
X
Reviewed
Reviewed
Reviewed
Reviewed
X
X
X
X
X
X
X
X
X
X
Reviewed
Reviewed
X
X
X
X
Reviewed
Reviewed
Reviewed
X
X
X
Reviewed
X
X
Reviewed
X
Reviewed
Lesson 2
Lesson 3
X
Reviewed
X
X
X
Investments in Equity and Debt Securities:
- Why companies invest in other companies
- Accounting for investments in equity securities:
Trading securities
Available-for-sale securities
Equity method
Consolidated financial statements
- Accounting for investments in debt securities:
Trading securities
Available-for-sale securities
Held-to-maturity
N/A
Lesson 11
X
Introduction to Managerial Accounting:
- The purpose of managerial accounting
- Distinguishing characteristics of managerial vs.
financial accounting
Lesson 11
X
Lesson 12
Reviewed
X
Reviewed
Cost Accounting:
- Product vs. period costs in merchandising and
manufacturing businesses
- Flow of product costs in a manufacturing business
- Job order cost system:
Basic entries and use of job cost record
Manufacturing overhead issues and
accounting
- Process cost system:
Basic entries
Equivalent Units
- Product cost accumulation in a merchandising
business
- Product costing in a service business
Lesson 11
Lesson 12
X
Reviewed
X
Reviewed
X
Reviewed
X
Reviewed
X
X
X
X
X
X
X
X
X
X
X
Performance Evaluation:
- Responsibility accounting
- Standard costing
- Cost variances
N/A
Lesson 14
X
X
X
Activity-based costing (ABC)
Traditional vs. ABC approach
Analyze individual overhead costs
Overhead cost activities
Cost drivers
Assigning overhead
Using ABC data to make decisions
N/A
Lesson 15
X
X
X
X
X
X
109
Cost Behaviors with changing volume:
- Variable, fixed, stepped and mixed costs defined
Analysis of mixed costs:
Scattergraph method
High-low method
Least Squares method
- Contribution margin income statement
Lesson 13
X
Lesson 16
Reviewed
X
X
Reviewed
Reviewed
X
Reviewed
CVP Analysis:
- Equational approach
- Graphical approach
- Change in sales mix
- Operating leverage
Lesson 13
X
X
Lesson 16
Reviewed
Reviewed
X
X
Budgeting:
- Strategic, capital and operational budgeting
introduced
- The benefits of budgeting
- Operating budget for:
Manufacturing business
Merchandising business
Service business
- Capital budgeting:
Payback method
IRR method
NPV method
Lease vs. buy
Sensitivity analysis
Screening and ranking
Income tax effects
Lesson 14
Lesson 17
X
X
Reviewed
Reviewed
X
Reviewed
X
X
Non-Routine Business Decision Making:
- Quantitative vs. qualitative factors
- Relevant, differential, direct, sunk and opportunity
costs defined
- Examples of relevant costs in non-routine
decisions:
Make or buy a component part
Pricing a special order
Add or eliminate a product or process
Additional product processing
Product emphasis given a critical limited
resource
Lesson 15
X
110
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Accounting Software Time Commitment
Delineated below are timetables outlining the length of each lesson on both sets of our software. We
provide this information to help instructors ascertain the student-time commitment of each lesson.
However, on average, students watch the lessons at two times the normal rate using the Variable Speed
Playback5 module. Therefore, an hour lecture in the accounting lessons actually takes approximately 30
minutes in real time.
The time totals below are the raw unadjusted-rate times of each lesson. Please see the footnotes below
for added information.
Set 1: Introduction to Accounting: The Language of Business TM
Lesson
Number
Introduction
Lesson Content &
Problem
Introductions6
hh:mm:ss
Problem
Walkthroughs &
Hints7
hh:mm:ss
Total Lesson
Time
hh:mm:ss Lesson Title
5:20
N/A
Lesson 1
2:18:58
20:51
Lesson 2
2:28:17
1:01:03
Lesson 3
1:59:38
48:05
2:47:43 Accounting Cycle Part 1
Lesson 4
2:09:02
48:34
2:57:36 Accounting Cycle Part 2
Lesson 5
2:02:46
47:19
2:50:05 Sales Revenue
Lesson 6
1:58:08
39:12
2:37:20 Inventory
Lesson 7
1:18:08
14:28
1:32:36 Operating Expenses and Internal Controls
Lesson 8
2:07:24
24:10
2:31:34 Long Term Operating Assets
Lesson 9
2:32:55
45:48
3:18:43 Debt and Equity Financing
Lesson 10
3:06:05
1:09:23
Lesson 11
46:24
18:42
Lesson 12
2:02:42
1:16:20
3:23:02 Manufacturing Product Costs
Lesson 13
2:21:42
1:31:30
3:53:12 Cost Volume Profit Analysis
Lesson 14
2:13:13
2:06:48
4:20:01 Operational Budgeting
Lesson 15
Totals
2:26:36
56:41
32:01:20
13:08:54
5:20 Introduction
2:39:50 Introduction to Financial Accounting
3:29:30 General Purpose Financial Statements
4:15:28 Financial Statement Analysis
1:05:06 Introduction to Managerial Accounting
3:23:17 Non-routine Business Decision
45:10:14
Supplemental Lessons in Set 1
Financial
Practice Set
2:01:35
N/A
2:01:35
Statement
of Cash
Flow
1:26:14
48:10
2:14:28
5
Students who watch Set 1 at two times the normal rate may not desire to listen to Set 2 at the same rate. Set 2 is
more technical and some students slow the VSP module to approximately 1.7 times the normal rate.
6
The Problem Introductions are tied to the main lecture video file and therefore are included in the Lesson Content
column. The Problem Introductions are very small and are only 2-3 percent of the Lesson Content time.
7
Not all students use the Hint feature. Therefore, use discretion when calculating the total time commitment for each
lesson. Hints are approximately 10-20 percent of the walkthrough's time. In addition, those students who answer a
problem correctly may not desire to watch the corresponding Walkthrough.
111
Set 2: Expanded Introduction to Accounting: The Language of Business TM
Lesson
Number
Lesson Content &
Problem
Problem
Introductions2 Walkthroughs
hh:mm:ss
hh:mm:ss
Total Lesson
Time
hh:mm:ss Lesson Title
Lesson 1
12:37
49:50
1:08:37 Review of the Accounting
Environment and the
Basic Accounting Cycle
Lesson 2
1:16:46
51:37
2:08:23 Expanded Financial
Statement Analysis
Lesson 3
1:32:54
46:46
2:19:40 The Statement of Cash
Flows
Lesson 4
30:23
23:08
53:31 Sales and Receivables
Lesson 5
44:06
50:39
1:34:45 Cost of Goods Sold and
Inventory
Lesson 6
37:15
17:25
Lesson 7
35:36
5:08
Lesson 8
40:19
42:16
1:22:35 Long Term Assets
Lesson 9
35:23
32:42
1:08:05 Bond Financing
Lesson 10
39:01
37:19
1:16:20 Equity Financing
Lesson 11
47:06
36:38
1:23:44 Investment in Equity and
Debt Securities
Lesson 12
17:51
36:25
Lesson 13
1:06:21
29:12
1:35:33 Product Costing
Continued…
Lesson 14
1:19:42
28:31
1:48:13 Standard Costs and
Responsibility Accounting
Lesson 15
1:41:37
19:51
2:01:28 Activity Based Costing
Lesson 16
21:35
55:01
1:16:36 Cost Volume Profit
Analysis
Lesson 17
2:13:51
46:39
3:00:30 Capital Budgeting
Totals
15:12:23
10:15:26
8
54:40 Accounting for Employee
Compensation, Taxes,
Contingencies, and other
Items
40:44 The Time Value of Money
54:16 Introduction to Managerial
Accounting and Review of
Product Costing
25:27:498
Set 2 is more concise as it builds upon the foundational topics of Set 1.
112
Learning Resource Packet
The Learning Resource Packet (LRP) is the document used by students as they watch the software
lectures and take notes. The LRP is 250 pages, and can be accessed on Set #1 or online at:
www.accountingcds.com/learn/documents/Learning_Resource_Packet.pdf
The LRP contains the following:
 Lesson Notes for lessons 1-15
 Financial Practice Set and Solution
 Sample Exams (the same questions are available in the Practice Module. See page on page 29)
 Exam Review Topics
The students can freely print this document from the software; however, the document is 250 pages,
which can be very cumbersome to print. Therefore, we suggest you provide this document to your
students.
113
Value-Added Session PowerPoint Examples
You can learn more about what we do conceptually in each undergraduate value-added sessions by
watching an online video by going here: http://www.accountingcds.com/video/qa/qa39.html. You may
also watch the actual sessions through our accounting software. To access these sessions, please open
the accounting software, click File, click Settings, type 6A35A9F6 in the curriculum code box, click OK,
click File, click Open Lessons, the eight sessions are now part of the lesson list. Note: we highly
discourage instructors from using our actual eight recorded video sessions in their course. Instructors
should conduct these sessions live with their students. In addition, we created these sessions for BYU
students, which are a religious student body. We refer to our church and faith several times in these
videos. Therefore showing these sessions to other students outside of BYU would probably be
inappropriate.
We also have six of our eight value-added sessions available in PowerPoint form. You can access these
files by clicking on the link below. You will need to unzip the file once you download it. You may use,
copy, or edit these files for your course.
Value-Added Sessions PowerPoint Example Files:
http://www.accountingcds.com/learn/documents/resources/Value-Added_Sessions.zip
114
Optional Weekly Review Session Materials
We designed the following files to help guide the discussion in our weekly review sessions. These
resources are available for Lessons 1-10. You can access these files by clicking on the link below. You
will need to unzip the file once you download it. You may use, copy, or edit these files for your course.
Weekly Review Session PowerPoint Files:
http://www.accountingcds.com/learn/documents/resources/Weekly_Review_All.zip
115
Assessment
We include no actual assessment documents in this guide for obvious security reasons. To acquire these
documents, please email info@accountingcds.com. To authenticate you as an instructor, please Email
us using your university Email account. The following documents are available:
 Standard 3 Exams (exam 1, exam 2, and final exam)
 Standard 25 Quizzes (both in hard and electronic forms)
 Pre and post-class value-added session quizzes
 Supplemental True/False Quizzes
 Supplemental Quizzes for review sessions or other purposes
116
Exam Review Documents (intended for Exam Review Sessions)
We designed the following documents to help guide the Exam Review Sessions. These questions will
help the students prepare for the exams. You may copy and distribute these documents to your students.
The documents appear in the following order:
 Exam 1 Questions
 Exam 1 Answers
 Exam 2 Questions
 Exam 2 Answers
 Exam 3 Questions
 Exam 3 Answers
117
Exam #1 Review Session— Questions
1. What do businesses do? What are the 3 basic kinds of businesses per the accounting software?
2. What are the 3 keys to a successful business discussed in the accounting software?
3. What are the only two sources of capital available to start a business and what are their basic
advantages and disadvantages?
4. What are the two ways basic ways owners/investors provide equity capital to a business?
5. What are the 3 basic legal forms of business ownership and identify some of their key distinguishing
characteristics in terms of
Proprietorship
General Partnership
Corporation
The number of
owners allowed.
Red-tape involved in
formation and
operation
Separate legal
liability (business/
owners)
Ability to raise equity
capital
Transfer of
ownership
Income taxation
1. What is the role of the stockholders, the board of directors and senior management (i.e. CEO) in
corporate governance and operations?
2. Why is accounting often referred to as the “language of business?”
3. What are some of the distinguishing characteristics of financial as opposed to managerial
accounting?
4. What are the three general-purpose financial statements required under generally accepted
accounting principles and what is the purpose of each?
5. What are the “notes to the financial statements?”
6. What is the SEC and what is its role with regards to publicly-held companies?
7. How does the SEC seek to insure that financial statement information provided to the public is
credible and comparable?
8. What is GAAP and why is it important to financial statement users?
9. Who is legally authorized to determine GAAP?
10. What is the FASB and what is its role?
11. How do the SEC and the FASB relate to one another?
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12. What is the IASB and what is its role?
13. Why are international accounting standards not allowed for companies whose securities trade in the
United States and what would be the benefit if they were allowed?
14. Who is primarily responsible for a company’s financial statement accuracy and compliance with
GAAP?
15. How does a person become a CPA and what do CPAs do besides audits of financial statements?
16. What is the AICPA and what is its role?
17. Why aren’t CPA firms completely independent in the performance of an audit?
18. Given the following information for ABC Company for the year ended 12/31/X1:
Cash
Accounts Payable
Capital Stock (10,000 shares)
Notes Payable
Dividends
Sales Revenues
Cost of Goods Sold
Accounts Receivable
Wages Payable
Wage Expense
Retained Earnings (at 1/1/X1)
Interest Revenues
Utilities Expense
Interest Expense
Inventory
Utilities Payable
Land and Building
Equipment
Other Expenses
Income Tax Expense
a.
b.
c.
$ 10,000
$ 15,000
$ 30,000
$ 225,000
$ 30,000
$ 800,000
$ 500,000
$ 30,000
$ 5,000
$ 180,000
$ 73,000
$ 5,000
$ 40,000
$ 15,000
$ 70,000
$ 2,000
$ 200,000
$ 50,000
$ 20,000
$ 10,000
Prepare an income statement for ABC for the year-ended 12/31/X1.
Prepare a statement of retained earnings for ABC for the year-ended 12/31/X1.
Prepare a balance sheet for ABC as of 12/31/X1.
19. Given the following comparative information:
Assets
Liabilities
Owners’ Equity
a.
b.
c.
d.
12/31/X2
$500,000
$300,000
?
12/31/X3
$425,000
?
$176,000
Determine the change in total liabilities for the year ended 12/31/X3.
What could have caused the decrease in owners’ equity in 20X3?
Assuming 20X3 capital contributions amounted to $50,000, no dividends were paid and
total expenses amounted to $1,500,000 for the year, calculate the amount of total
revenues earned in 20X3.
How is this company doing?
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20. If assets total $100,000 at the beginning of the year and liabilities increased by $20,000 during the
year, determine the amount of assets at the end of the year given the following additional information:
Capital Contributions
Dividends
Expenses
Revenues
$
0
$ 10,000
$ 820,000
$ 960,000
21. At what value should land be reflected on the balance sheet if it was purchased from an unrelated
party three years ago for $100,000 but is currently worth $300,000. What if it is currently worth only
$50,000?
22. What does the entity concept and the monetary measurement principle have to do with a company’s
financial statements?
23. Fill in the blanks reflecting the effect of recorded transactions on:
Assets
Liabilities
Owners’ Equity:
Capital Stock
Retained Earnings
Revenues
Expenses
Dividends
Debit (Dr)
+
Credit (Cr)
-
24. Respond to the following (true/false):
a.
Debits always reflect an increase in an account.
b.
Debits reflect an increase in assets.
c.
Debits to an expense account have an increasing effect on expenses, net income,
retained earnings and owners’ equity.
25. What does “double-entry accounting” refer to?
26. Record the following transactions in general journal entry form:
a.
Owners contribute $50,000 cash and a $20,000 truck to the company in exchange for
1,000 shares of stock in the company.
b.
The company buys a building for $250,000 paying $50,000 cash and signing a $200,000
note requiring payment in full in ten years with interest to be paid annually at a annual
rate of 10%.
c.
Inventory costing $5,000 is purchased on account.
d.
Cash purchase of office supplies costing $300.
e.
Inventory costing $2,000 sold to a customer on account for $3,500.
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f.
Paid accounts payable of $5,000.
g.
Collected $3,500 of accounts receivable from customers.
h.
Collected dividends of $500 on an investment in the stock of another company.
i.
Paid a $700 utility bill.
j.
Paid $4,000 of employee wages that had been previously recorded.
k.
Paid a $2,000 cash dividend to stockholders.
27. Put the following into proper sequence:
____ Post recorded transactions to the general ledger
____ Prepare a trial balance
____ Record transactions in a journal
____ Identify and analyze transactions as they occur
____ Prepare an adjusted trial balance
____ Prepare financial statements
____ Record adjusting entries in the general journal
____ Post closing entries to the general ledger
____ Record closing entries in the general journal
____ Prepare a post-closing trial balance
28. What are special journals and subsidiary ledgers and what purpose do they serve?
29. Why is this stuff worth knowing when computers are programmed to do all this accounting stuff pretty
much automatically?
30. What is accrual basis accounting and why is it required under GAAP?
31. On 4/1/X1, Norm’s Real Estate Company received one-year’s rent in advance in the amount of
$12,000 from a tenant.
a.
Prepare the 4/1/X1 original entry and the appropriate 12/31/X1 adjusting entry associated
with this transaction.
b.
What principle of accounting mandates the adjusting entry in this case?
c.
What would the impact be on the balance sheet and income statement if Norm failed to
make the 12/31/X1 adjusting entry.
32. Guido’s Legal Service completed $2,000 of contracted legal work for a customer in December, 20X1.
As of 12/31/X1 these fees were unbilled and unrecorded on Guido’s books. What adjusting entry, if
any, is required by Guido at year-end, 12/31/X1 if the fees are to be billed and collected in January,
20X2? What is the governing principle of accounting in this case?
33. On 9/1/X3 Joe’s Auto Repair paid a $2,400 insurance premium on a 12-month policy extending
through 8/30/X4. Prepare the journal entry to record the payment at 9/1 and any adjusting entry
subsequently required at year-end, 12/31/X3.
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34. Prepare the 12/31/X2 adjusting entry for unpaid and previously unrecorded wages of $5,000 due
employees for the month of December, 20X2. Failure to record this adjusting entry would cause net
income to be over or understated?
35. Prepare the closing entry or entries required given the following adjusted trial balance at 12/31/X1
and determine the ending balance of retained earnings:
Cash
Inventory
Accounts Payable
Capital Stock
Retained Earnings (at 1/1/X1)
Dividends
Sales Revenues
Cost of Goods Sold
Other Expenses
DR
$ 10,000
$ 30,000
CR
$ 7,000
$ 10,000
$ 13,000
$
3,000
$100,000
$ 60,000
$ 27,000
36. If beginning and ending inventory amount to $40,000 and $45,000, respectively, and inventory
purchases for the period total $342,000, determine the amount of cost of goods sold for the period.
37. If beginning and ending accounts payable amount to $30,000 and $27,000 respectively, and
inventory purchases on account for the period amount to $150,000, determine the amount of cash
payments made on accounts payable for the period.
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Exam #1 Review Session— Solutions
1. A business is an organization, which seeks to provide goods or services to customers. The three
basic kinds of businesses are:
a. Manufacturing
b. Merchandising
i. Retail
ii. Wholesale
c. Service
2. The three keys to a successful business are:
a. Idea—A good idea for a product or service that can be sold at a profit.
b. Capital—Money or resources to bring that product or service to life.
c. Management Skill—The ability to effectively employ those resources and produce a
profit.
3. The two sources of capital are:
a. Debt Financing (borrowing from creditors)
i. Advantages—no sacrifice of ownership rights
ii. Disadvantages—(1) must be paid back – temporary (2) consequences of failure
to pay can be harsh – bankruptcy or foreclosure (3) can be difficult to qualify for.
b. Equity Financing (contributions from investors/owners)
i. Advantages—no requirement to repay contributed capital
ii. Disadvantages—some sacrifice of ownership rights (voting, profit-sharing, posttermination resources)
4. The two basic ways owners/investors provide equity capital.
a. Capital contributions. (Owners contribute assets for ownership rights.)
b. Retained earnings. (Owners allow assets created through profitable operations to be
retained in the business.)
5.
The number of
owners allowed.
Red-tape involved in
formation and
operation
Separate legal liability
(business/ owners)
Ability to raise equity
capital
Transfer of ownership
Income taxation
Proprietorship
One
General Partnership
More than one
Corporation
One or more
None unless
employees are hired
None unless
employees are hired
No
No
State regulations
govern formation and
operation.
Yes
Limited to resources of
the one owner
Limited to resources of
partners
Involves sale of entire
business
Business profits
included in owners
personal income
Typically requires
partner approval
Business profits
included in partners’
personal income
Unlimited number of
owners (stockholders)
possible
Easy transfer through
sale of stock
Corporation pays tax on
profits and owners pay
additional tax on any
distribution of those
profits.
6. Different roles in corporate governance and operations
a. Stockholders have the right to vote for a corporation’s Board of Directors (typically one
vote per share). They benefit from dividend distributions and increasing stock values and
123
have the right to share in any net assets available after the payment of liabilities in the
event of business termination and liquidation.
b. The Board of Directors hires and monitors the performance of senior management.
They’re also involved in the making of long-term strategic decisions. Board members
may or may not be stockholders and are typically compensated for their time and effort.
c. Senior management is responsible for daily operations of the company. They are paid a
salary by the company and may or may not own shares of stock themselves.
7. Accounting is often referred to as the language of business because its sole purpose is to
communicate business information.
8. Financial accounting seeks to provide information to current or future providers of capital
(investors or creditors) and other interested parties outside of management (government
agencies, etc.). This is done through periodic general-purpose financial statements prepared in
accordance with generally accepted accounting principles (GAAP) or standardized rules of
accounting. These financial statements provide summarized historical information on a
company’s financial position, results of operations and cash flows.
Managerial accounting seeks to provide information that’s useful to a company’s managers. In
most cases this information is not released to the public and, as a result, is not governed by any
rules or standards of accounting. Management accounting reports often provide detailed
information and many times include forecasts of future results or budgets.
9. The three general-purpose financial statements and their purposes are:
a. Balance Sheet or Statement of Financial Position—reflects a company’s financial position
(assets, liabilities and owners’ equity) as of a point in time
b. Income Statement, Statement of Operations, Statement of Earnings, or Profit and Loss
Statement—reflects a company’s results of operations or profits/losses over a period of
time.
c. Statement of Cash Flows—reflects a company’s cash inflows, outflows and changing
cash balance over a period of time.
A Statement of Retained Earnings or Statement of Owners’ Equity is often included as
part of a company’s general purpose financial statements but is not required by
GAAP.
10. The notes to the financial statements provide important supplemental information in support of a
company’s general- purpose financial statements. This often includes information on accounting
methods as well as more detailed information relative to certain financial statement amounts.
11. The SEC (Securities and Exchange Commission) is a federal agency responsible for the
regulation of public capital markets in the United States. All businesses that seek capital from
large numbers of investors in the United States (“publicly-held businesses”) are subject to SEC
rules and regulations requiring the disclosure of financial statement and other information to
investors.
12. The SEC requires an annual audit of the financial statements of all publicly-held companies by
independent certified public accounting (CPA) firms to insure that the information provided in
those statements is accurate and prepared in accordance with GAAP.
13. Generally accepted accounting principles (“GAAP”) are the methods of accounting and the
financial statement disclosures required of SEC regulated companies. The purpose of GAAP is
to improve the comparability and usefulness of financial statement information to investors,
creditors and other external users. Although not required, companies not subject to SEC
regulation will also typically prepare financial statements in accordance with GAAP to add
credibility for current or potential investors and creditors.
124
14. The SEC has the legal authority to determine GAAP for companies required to file financial
statements with the SEC; however, the SEC currently allows the FASB to function in this
capacity.
15. The Financial Accounting Standards Board (FASB) is a private non-profit organization currently
responsible for the establishment of GAAP in the United States. The SEC recognizes the
pronouncements of the FASB as authoritative.
16. Because the SEC has the ultimate power to determine GAAP, the FASB exists and functions at
the SEC’s pleasure. As a result, when the SEC talks the FASB listens. The SEC has
considerable influence over the pronouncements issued by the FASB.
17. The International Accounting Standards Board (IASB) is a private organization headquartered in
London and committed to developing a single set of high quality global accounting standards. In
addition, the Board cooperates with national accounting standard setters in an attempt to achieve
convergence in accounting standards around the world.
18. At this time, the SEC requires the use of FASB accounting standards (GAAP) because it currently
deems FASB standards superior in providing fuller and fairer disclosure of financial information.
As the IASB continues to develop and improve their standards it is possible that the SEC could
modify its position. A clear benefit in the application of international standards among countries is
the breakdown of a significant investment and trade barrier. Capital markets will never be truly
global until common accounting standards are applied to companies world wide.
19. A company’s management is primarily responsible for financial statement accuracy and
compliance with GAAP. In fact, management failure to provide accurate financial information
may constitute a crime under current law.
20. CPA certification is administered by each state. All states require CPA candidates to be college
graduates with credit earned in designated accounting courses. Candidates must also pass a
uniform CPA exam administered by the American Institute of Certified Public Accountants
(AICPA). In addition, certain supervised work experience with a licensed CPA firm is also
required. Subsequent to initial certification, a CPA must complete continuing professional
education (CPE) requirements to maintain the right to practice.
In addition to financial statements audits, many CPAs provide a number of other services
including tax planning and management advisory services.
21. The AICPA is a private professional organization made up of CPAs across the nation. In addition
to the administration of the CPA exam, the AICPA also determines generally accepted auditing
standards (GAAS), which govern the practices and procedures to be used by CPA firms in the
conduct of a certified audit of financial statements.
22. CPA firms conducting financial statement audits are paid by the companies they audit creating an
inherent conflict of interest. In most cases, a company’s management team is motivated to
prepare financial statements that present the most favorable financial impression possible. If
management/auditor disagreements arise on financial statement presentation, management may
threaten to change auditors. As a result, CPA firms may be tempted to compromise the integrity
of their audit work in order to preserve the engagement and resulting fee income.
125
23. Financial Statements for ABC Company for year ended 12/31/X1
a.
ABC Company
Income Statement
For the year ended 12/31/X1
Revenues:
Sales revenues
Interest revenues
Total revenues
Expenses:
Cost of goods sold
Wage expense
Utilities expense
Other expenses
Interest expense
Income tax expense
Total expenses
Net income
$800,000
5,000
$805,000
500,000
180,000
40,000
20,000
15,000
10,000
765,000
$ 40,000
b.
ABC Company
Statement of Retained Earnings
For the year ended 12/31/X1
Beginning Retained Earnings, 1/1/X1
Add: Net income
Less: Dividends
Ending Retained Earnings, 12/31/X1
c.
126
$73,000
40,000
(30,000)
$83,000
ABC Company
Balance Sheet
as of 12/31/X1
Assets:
Current AssetsCash
Accounts receivable
Inventory
Total current assets
Long-Term AssetsLand and building
Equipment
Total long-term assets
Total assets
Liabilities and Owners’ Equity:
Current LiabilitiesAccounts payable
Wages payable
Utilities payable
Total current liabilities
Long-Term LiabilitiesNotes payable*
Total liabilities
Owners’ EquityCapital stock
Retained earnings
$ 10,000
30,000
70,000
110,000
200,000
50,000
250,000
$360,000
$ 15,000
5,000
2,000
22,000
225,000
247,000
30,000
83,000
113,000
Total owners’ equity
Total liabilities and
owners’ equity
$360,000
* Assumes obligation is due in more than one year.
24.
a.
b.
c.
d.
A
$51,000 decrease
Net loss or dividends greater than net income for the period
$1,426,000
It looks like they’re not doing too well.
=
L + OE
12/31/X2
500k = 300k + 200k
12/31/X3
425k = 249k + 176k
127
75k = 51k + 24k
“∆”
∆C.C. + ∆R/E
50k + 74k
N.I. - Dividends
-74k - 0
Revenues - Expenses
1,426,000 - 1,500,000
25. Assets at the end of the year = $250,000
A
=
L
+ OE
Beg. 100k =
? + ?
End
250k =
? + ?_
“∆” 150k = 20k+ 130k
∆C.C. + ∆R/E
0 + 130k
N.I. - Dividends
140k - 10k
Revenues - Expenses
960,000 - 820,000
26. If the land is currently worth $300,000, then it would be reflected at its historical cost of $100,000.
Assets are never written up above their historical cost, but they are written down if values
decrease over time. If the land is currently worth only $50,000, then the land is written down to
its lower $50,000 value with a $50,000 loss recorded.
27. Entity concept: The personal assets of a company’s owners are not included in the company’s
balance sheet… the business is a separate accounting entity.
Monetary measurement principle: In the U.S., financial statement amounts are stated in U.S.
dollars, not Japanese yen or any other denomination or unit of measure..
28. Fill in the blanks
128
Assets
Liabilities
Owners' Equity
Capital Stock
Retained Earnings
Revenues
Expenses
Dividends
Debit (DR)
+
-
Credit (CR)
+
+
+
+
+
+
-
29. True/False
a. False (Not true for liabilities, capital stock, retained earnings and revenue accounts.)
b. True
c. False (Debits increase expenses. Increasing expenses cause a reduction in net income,
retained earnings and owners’ equity.)
30. All transaction are recorded with entries to at least two accounts having total debits equal total
credits.
31. Record General Journal Entries;
a. Cash
Truck
50k
20k
Common Stock 70k (1,000 shares @ $70 each)
b. Building
250k
Cash
50k
Note Payable
200k
(Interest expense to be recorded with the passage of time.)
c.
Inventory
A/P
5k
5k
d. Office Supplies
Cash
300
e. A/R
3,500
300
Sales Revenue
COGS
3,500
2,000
Inventory
f.
A/P
2,000
5,000
Cash
g. Cash
5,000
3,500
A/R
h. Cash
3,500
500
Dividend Rev.
i.
If not previously recorded:
Utilities Expense
700
Cash
500
700
If previously recorded:
129
j.
k.
Utilities Payable 700
Cash
700
Wages Payable 4,000
Cash
4,000
Dividends
Cash
2,000
2,000
32. Put in order.
a. 3
b. 4
c. 2
d. 1
e. 6
f. 7
g. 5
h. 9
i. 8
j. 10
33. Special journals are used to originally record transactions having certain common
characteristics. For example, a cash receipts journal is a special journal used to exclusively
record all transactions involving receipts of cash. Other special journals commonly used by
companies include a purchases journal to record all purchases of inventory on account, a cash
disbursements journal to record all transactions involving payments of cash, and a sales journal
to record all transactions involving credit sales. These journals were originally developed in
manual accounting systems to facilitate the posting process and improve internal controls by
facilitating the segregation of employee duties. In computerized accounting systems today,
special journals may represent software modules designed to facilitate the programming
necessary to handle the accounting for various kinds of transactions.
A subsidiary ledger is a file which serves as a detailed supplement to a general ledger account.
For example, the A/R general ledger account will typically have a supporting subsidiary ledger file
referred to as the "accounts receivable subsidiary ledger" which notes the running balance of
each credit customer’s account. Other general ledger accounts that commonly have supporting
subsidiary ledgers include inventory, property, plant and equipment and A/P. These accounts
maintain detail that is valuable information for a company’s management. Managers must know
the balance of units on-hand for each of their products as well as the total balance of all
inventories. Likewise, the detail of accounts payable for each of a company's vendors is critical in
making timely payments on account. General ledger accounts supported by a subsidiary ledger
are referred to as the "control account" for the related subsidiary ledger. The total of all of a
subsidiary ledger's account balances should equal the balance in its related general ledger
control account.
34. There is value in understanding where the information provided on a company’s financial
statements comes from. The better you understand the source of information, the more useful
that information becomes.
35. Accrual basis accounting is made up of the revenue recognition and the matching principles and
deals with the timing of revenues and expenses. The revenue recognition principle states that
revenues are to be recorded in the period in which those revenues are earned, not necessarily
when cash is collected from customers. The matching principle requires that the costs of
operating a company be recorded as expenses in the period in which those costs provide benefits
to the company, not necessarily when those costs are actually paid in cash. Expenses are to be
matched or recorded in the same period as the revenues they helped generate.
130
36.
a. 4/1/X1 original entry:
Cash
12,000
Unearned Rent Revenue
12,000
12/31/X1 adjusting entry:
Unearned Rent Revenue
Rent Revenue
9,000
9,000
(12,000  9/12 = 9,000)
b. Revenue recognition principle which part of accrual basis accounting
c. Liabilities would be overstated, and revenues, net income, and owners’ equity would all
be understated.
37.
Fees Receivable

2,000
Sales Revenue
2,000
Revenue recognition principle.
38.
9/1/X3 original entry:
Prepaid Insurance
Cash
2,400
2,400
12/31/X3 adjusting entry:
Insurance Expense
800
Prepaid Insurance
39.
800
(2,400 x 4/12 = 800)
Wage Expense
5,000
Wages Payable 5,000
Failure to record this adjusting entry would understate expenses and therefore overstate
net income.
40. Method one:
Sales Revenue
100,000
Retained Earnings
100,000
R/E
60,000
COGS
60,000
R/E
27,000
Other Expenses 27,000
R/E
3,000
Dividends
3,000
R/E
13,000
100,000
60,000
27,000
3,000
Balance in R/E @ 12/31/X1 = 23,000
23,000
131
Method two:
Sales Revenue
100,000
COGS
60,000
Other Expenses 27,000
R/E
13,000
R/E
3,000
Dividends
3,000
R/E
13,000
13,000
3,000
23,000
Balance in R/E @ 12/31/X1 = 23,000
41.
Inventory
Beg.
40,000
Purch. 342,000
End
337,000  COGS
45,000
42.
A/P
30,000 Beg.
150,000 Purchases on account
Cash Paid  153,000
27,000 End

Exam #2 Review Session— Questions
1.
Prepare journal entries for Norm’s Bicycle Shop for the following transactions assuming Norm
uses a perpetual inventory accounting system:
A.
Norm purchases 30 bikes on account for $100 each, terms of 2/10,n/30.
B.
Norm returned 2 defective bikes to the supplier receiving full credit on account.
C.
Norm paid the net amount due the supplier within the discount period net of the discount.
D.
Norm sold 10 bikes on account to a customer for $200/each, terms of 3/10,n/30.
E.
The customer returns 1 bike for full credit on account. (The bike is not damaged)
F.
The customer pays off his account within 10 days of purchase, net of the discount.
2.
Calculate Norm’s gross margin given the transactions noted above. What kind of account is Sales
Discounts, real or nominal? Calculate the net percentage markup on the sale. What would the
gross margin have been if the returned bike had been damaged yet full credit on account was
allowed the customer due to a liberal return policy?
3.
How is Operating Income different from Gross Margin and Net Income?
132
4.
Prepare the journal entry to record the sale of 2 bikes for $200/each to a customer paying with a
VISA credit card. Assume that Norm’s processing costs run at 4% of the sales price.
5.
Determine the cost of goods sold for the month and the balance of ending inventory using a
perpetual FIFO inventory accounting method given the following information:
#/units
cost/unit
Balance at 11/1
250
$90
Purchase at 11/5
100
$95
Sale at 11/10
120
Purchase at 11/16
50
Sale at 11/21
120
$100
6.
Given the information above, determine the cost of goods sold and balance of ending inventory
using perpetual LIFO. Prepare the journal entry to record the 11/21 sale using perpetual LIFO.
Prepare the journal entry to be made for the 11/10 sale using the MWA method.
7.
Under what circumstances is the specific identification inventory cost flow method appropriate?
When is use of an inventory cost flow assumption (LIFO, FIFO, MWA) appropriate?
8.
a.
b.
c.
In a period of declining inventory costs (deflation) which inventory cost flow assumption
will be used if the primary motive is to impress investors with the highest determination of
net income possible? Will that assumption produce a higher or lower inventory balance
on the balance sheet than the other possible assumptions?
Assuming inflationary times, which assumption will produce the lowest income tax
obligation? Will that assumption produce a higher or lower inventory balance on the
balance sheet than the other possible assumptions?
Can any assumption be used regardless of the actual physical flow of inventory? Can
different assumptions be used from year to year?
9.
What is a physical inventory and why must it be done when a perpetual inventory accounting
system is used?
10.
If A/R at year-end (12/31/X1) total $270,000, the Allowance for Uncollectible A/R has a zero
balance and given the following aged estimate of year-end uncollectibilty
A.
B.
Period Past Due
Amount
Estimated % Uncollectible
current
$170,000
3%
0-30 days
$50,000
5%
30-60 days
$25,000
7%
60 + days
$25,000
10%
Prepare the adjusting journal entry required at year-end to record Bad Debt Expense for
the year X1.
What kind of account is the Allowance for Uncollectible A/R, real or nominal?
133
C.
Will the Allowance account always have a credit balance after any year-end adjusting
entry to record bad debt expense?
What would be the journal entry to record the actual writeoff of $16,200 of uncollectible
A/R in the following year X2? Why is this writeoff not recorded as an expense for the
year X2? When is any bad debt expense recorded for the year X2? What does a debit
balance in the Allowance account before any year-end adjustment to record bad debt
expense for the year X2 represent? How is this error in the prior year estimation handled
in the books?
What would be the adjusting entry to record bad debt expense for the year X2 if ending
A/R totaled $300,000 and an aging produced an estimation of uncollectibles of $18,000?
What would be the recorded bad debt expense if the Allowance account balance before
adjustment had been a credit balance of $1000?
D.
E.
11.
Given the following information for January’s employee wages:
Gross Wages
$10,000
Employee FICA
$600
Federal. Income Tax
Withholding
$2,000
State Income Tax
Withholding
$900
Net Wages
$6,500
Federal Unemployment Insurance
State Unemployment Insurance
$300
$200
Prepare the journal entries as of January 31st to record the obligations to pay all of these
payroll costs in the future.
12.
Prepare the journal entry to record the cash sale of merchandise costing $100 to a
customer at a price of $200 plus 6% sales tax. Also record the subsequent remittance of
the sales tax proceeds to the state.
13.
What are internal controls? Provide examples. Who is responsible to establish and
implement such controls for a company? Who benefits from these controls? What is the
role of an external auditor (CPA) relative to a company’s internal controls?
14.
On 4/1/X1, XYZ Company.purchases a used truck for $30,000 by paying $10,000 of its
own cash and borrowing the remainder from a local bank. The $20,000 loan matures in
three years and bears interest at an annual rate of 12% payable annually on 4/1 of each
year. In addition XYZ pays a 6% sales tax on the total purchase price, overhauls the
engine for $1,200 and pays $2,000 for a paint job deemed necessary before putting the
truck in service. XYZ also prepays $2,400 of insurance premiums for one year’s
coverage on the truck.
A.
Prepare the journal entry or entries required for the purchase of the truck and all
associated expenditures including insurance. (Exclude payments under the bank
loan)
B.
Prepare the adjusting entry for depreciation at 12/31/X1 using the straight-line
method and assuming a $5,000 salvage at the end of its estimated 5 year useful
life.
C.
Prepare the adjusting entry at 12/31/X1 for the bank loan interest.
D.
In ‘X2 the company pays $500 for new tires. Record the journal entry. When
does an expenditure qualify as an “improvement” which must be “capitalized” as
part of the cost of the truck?
E.
Prepare the journal entry for the 4/1/X2 payment of interest on the bank loan.
134
F.
G.
H.
I.
Prepare the adjusting entries at 12/31/X2 for depreciation on the truck and
interest on the loan.
Determine the book value of the truck at 12/31/X2.
Prepare the journal entry to record the sale of the truck at 12/31/X2 for $28,000
cash. Also record the associated payoff of the bank loan. What would have been
the entry if the truck had sold for $20,000 cash?
Recalculate the truck’s 12/31/X1 depreciation using the units of production
method under the following assumptions: 100,000 miles of anticipated usage,
$5,000 estimated salvage value, and 10,000 miles of actual usage from 4/1/X1 to
12/31/X1.
15.
A.
C.
E.
How are research and development costs incurred in the development of a
patentable technology over a ten year period recorded under GAAP?
B.
How about $5,000 in legal fees incurred in actually applying for a
successful patent and $100,000 in legal fees in the successful
prosecution of a patent infringement case? The allocation of any
capitalized costs of a patent or other intangible asset to expense over its
useful life is referred to as what?
Record the $1,000,000 cash purchase of a music copyright. Using straight line
amortization over a 50 year copyright life, prepare the adjusting entry required at
the end of each full year’s during the period of copyright ownership.
D.
Define “goodwill.” When is it recorded as an asset? Record the
$1,000,000 cash purchase of a company with assets having a combined
fair market value of $500,000 (book value on the seller’s books of
$350,000) and liabilities to be assumed by the buyer in the amount of
$50,000.
Are capitalized costs incurred in the acquisition and improvement of natural
resources ever recorded as an expense?
16.
A.
B.
Prepare the 3/1/X1 journal entry to record the purchase of $500,000 of real
estate ($100,000/land and $400,000/building) paying $50,000 cash down and
financing the remainder through a 30 year fully-amortizing mortgage note bearing
8% annual interest compounding monthly with monthly payments of $3,301.94.
Prepare the journal entries to record the first and second mortgage payments
made on 4/1 and 5/1, respectively. Determine the balance of the mortgage
payable following the 2nd monthly payment.
17.
What is a bond and a bond indenture? What are some of the common types of bonds?
Prepare the journal entry to record the 5/15/X1 issuance of $10,000,000 of bonds at face
value bearing interest at an annual rate of 7% payable quarterly. Record the first interest
payment made on 8/15/X1.
18.
Prepare the journal entries to record 1,000 shares of common stock issued for $90/share
assuming the stock has
A. a par value of $.01 per share.
B. a stated value of $.01 per share.
C. no par or stated value.
19.
Prepare the journal entries to record a $250,000 dividend at the dates of declaration,
record and payment.
20.
Prepare the journal entry to record the issuance of 10,000 shares of 7%, $20 par value
cumulative preferred stock at a price of $22 per share. Determine the annual dividend
135
preference on this preferred stock per share and in total. What are dividends in arrears
and how are they to be accounted for?
A.
Assuming dividends in arrears amounting to $25,000 what portion of a $100,000
dividend declaration would go to common stockholders?
B.
Assuming the preferred stock was non-cumulative and therefore
no dividends are in arrears, what portion of a $100,000 dividend would
go to common stockholders?
21.
Given the following financial statements
XYZ Company
Income Statement
for the years ended 12/31/X1 and X2
X1
Sales Revenues
X2
$ 500,000
$ 600,000
Less: Cost of Goods Sold
300.000
350,000
Gross Margin
200,000
250,000
Less: Operating Expenses
100,000
120,000
100,000
130,000
25,000
30,000
$ 75,000
$ 100,000
$ 15.00
$ 20.00
Income before Income Taxes
Less: Income Taxes
Net Income
Earnings Per Share
(continued)
XYZ Company
Balance Sheet
as of 12/31/X1 and 12/31/X2
12/31/X1
12/31/X2
Assets:
Liabilities:
Current Assets
Current Liabilities
Cash
$ 20,000
$ 18,000
Accounts Payable
136
12/31/X1
12/31/X2
$ 56,000
$ 65,000
A/R, net
45,000
52,000
Other Payables
34,000
42,000
Inventory
82,000
74,000
Unearned Revenues
12,000
10,000
Prepaids
4,000
6,000
102,000
117,000
152,000
150,000
Property & Equip
457,000
516,000
233,000
255,000
Less: Accum/Dep
54,000
64,000
335,000
372,000
403,000
452,000
Stockholder’s Equity
$555,000
$602,000
Common Stock,
(5,000 shares)
Retained Earnings
200,000
20,000
200,000
30,000
Total Liabilities and
Stockholders’ Equity
$555,000
$602,000
Total Assets
A
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Long-Term Liabilities
Notes Payable
Calculate the current ratio at 12/31/X2. What does this measure?
Calculate the acid-test (quick) ratio at 12/31/X2. What does this measure?
Calculate the A/R turnover and days sales in A/R for X2. What does this
measure?
Calculate the inventory turnover and days sales in inventory for X2. What does
this measure?
Calculate the debt ratio (total debt to total assets) at 12/31/X2. What does this
measure?
Calculate the debt to equity ratio at 12/31/X2. What does this measure?
How is EPS determined? What was the dividends per share in X2?
What would XYZ’s stock be worth if it was selling at a P/E multiple of 25 on
12/31/X2? Why do some stocks sell at a multiple of 10 while others sell at
mutiples of 50 or more?
By what percentage did assets grow in X2?
By what percentage did sales revenues grow in X2?
Calculate the gross margin percentage in both X1 and X2. What might have
given rise to the change?
L.
Calculate net income as a percentage of sales in X1 and X2?
Evaluate the results relative to prospects for income growth in the future.
137
Exam #2 Review Session— Solutions
Question 1
A. Inventory
Accounts Payable
3,000
3,000
B. Accounts Payable
Inventory
200
200
C. Accounts Payable
Cash (98%  2,800)
Inventory (2%  2,800)
2,800
D. Accounts Receivable
Sales Revenue
2,000
2,744
56
2,000
Cost of Goods Sold
Inventory (10  $98)
(Assumes LIFO inventory cost flow)
980
980
E. Sales Returns & Allowances
Accounts Receivable
200
Inventory
Cost of Goods Sold
98
200
98
F. Cash
Sales Discount (1,800  3%)
Accounts Receivable
1,746
54
1,800
Question 2
Sales revenues
Less: Sales returns
Sales discounts
Net Sales revenues
Less: Cost of goods sold
Gross margin
$
$
2,000
(200)
( 54)
1,746
(882)
864
Sales Discounts is a nominal account; it relates to sales for a specific year and must be closed at
the end of the year.
864
Net Percentage
=
=
98% rounded
Markup
882
Gross margin if the returned bike was damaged and full credit on account was allowed the
customer:
Sales revenues
Less: Sales returns
$
2,000
(200)
138
Sales discounts
Net Sales revenues
Less: Cost of goods sold
Gross margin
$
( 54)
1,746
(980)
766
Question 3
Sales revenues
Less: Sales returns
Sales discounts
Net Sales revenues
Less: Cost of goods sold
Gross margin
Less: Operating expenses
Operating Income
Other revenues and expenses
Income before income taxes
Less: Income taxes
Net Income
$
$
XXX
(XXX)
(XXX)
XXX
(XXX)
XXX
(XXX)
XXX
XXX
XXX
(XXX)
XXX
EPS:
$
XXX
Question 4
Cash
VISA Expense
Sales Revenue
384
16
Cost of Goods Sold
Inventory
(Amount not give
?
400
?
Question 5

#/Units
Purchase at 11/5
Cost/unit
$
250 90
$
100 95
Sale at 11/10
120
Balance at 11/1
FIFO
Units x
Cost
COGS
$
120 x $90 10,800
139
Unit
Balance
Price
$
250 90
$
250 90
$
100 95
$
130 90
100 $
Purchase at
11/16
$
50 100
Sale at 11/21
$
120 x $90 10,800
120
COGS
$
21,600
95
$
130 90
$
100 95
$
50 100
$
10 90
$
100 95
$
50 100
Inventor
160 y
$ 900
$
9,500
$
5,000
$15,400
Question 6
Balance at 11/1
Purchase at 11/5
#/Units
Cost/unit
250 $
90
100 $
95
Sale at 11/10
Purchase at 11/16
Sale at 11/21
120
50 $
120
100
LIFO
Units x Cost COGS Unit Balance Price
250 $
90
250 $
90
100 $
95
100 x $95 $ 9,500
0 $
95
20 x $90 $ 1,800
230 $
90
230 $
90
50 $
100
50 x $100 $ 5,000
0 $
100 $
70 x $90 $ 6,300
160 $
90 $ 14,400
160
COGS
$ 22,600
Inventory $14,400
LIFO Journal Entry on 11/21
Cost of Goods Sold
Inventory
11,300
11,300
MWA Journal Entry on 11/10
Cost of Goods Sold
Inventory
10,971
10,971
Weighted Average price per unit = $91.43 * 120 = $10,971
Question 7
Specific identification is an inventory cost flow method used to determine the cost of goods sold
for companies that have inventory that tends to be easily differentiated unit by unit in its nature
140
and cost. Under the specific identification method, the cost of a specific inventory item is
determined and accounted for as the cost of goods sold upon sale of that item. For example, an
art dealer will use the specific identification method of accounting for its inventory of paintings
because of the unique nature and cost of each painting. To do otherwise would most likely distort
the dealer's reported profits for a period of time. Companies that sell products that are similar in
nature and cost, but for which costs may change over time due to factors of inflation or deflation
rather than product differentiation, will typically use an inventory cost flow assumption (LIFO,
FIFO, MWA) rather than specific identification in accounting for the cost of goods sold.
Question 8
A. The LIFO inventory cost flow assumption will be used to produce the highest net income in a
period of deflation. Under LIFO, the last inventory costs are the ones used for Cost of Goods
Sold. Because these costs are lower in a deflationary environment Cost of Goods Sold will
be lower and net income will be higher. Since the last (lower) costs are used for Cost of
Goods Sold, the first (higher) costs are used for valuing ending inventory. The inventory
balance will therefore be higher than under the other methods.
B. LIFO will produce the lowest income tax obligation in inflationary times. During inflation, the
last costs for inventory purchases are the highest. These higher costs are used to calculate
Cost of Goods Sold for the period; since the costs are higher, net income will be lower, and
the taxes will also be lower. Because the higher costs are used for Cost of the Goods Sold,
the remaining lower costs are used to value ending inventory, which will produce a lower
ending inventory balance than the other methods.
C. Any assumption can be used to value inventory and Cost of Goods Sold, regardless of the
actual physical flow of inventory. The same method must be used for both financial reporting
and income tax purposes and must be used consistently over time.
Question 9
A physical inventory refers to an actual physical count of inventory items on hand. This must be
done at least once a year even when a perpetual inventory accounting system is used. An
adjustment must be made to correct the perpetual records if any difference exists between the
physical count and perpetual records. Perpetual records may be inaccurate due to unaccounted
for waste, pilferage and simple accounting errors.
Question 10
Period Past Due
Current
0-30 Days
30-60 Days
60 + Days
Total
Amount
Estimated % Uncollectible
$ 170,000
3%
50,000
5%
25,000
7%
25,000
10%
A. Bad Debt Expense
Allowance for Uncollectible A/R
Estimated $ Uncollectible
$
5,100
$
2,500
$
1,750
$
2,500
$
11,850
11,850
11,850
B. Uncollectible A/R is a real account. It’s a contra-asset account on the balance sheet, tied to
A/R.
C. Yes, after the adjusting entry, the Allowance account will always have a credit balance… it is
a contra-asset account and its only purpose is to reduce A/R for estimated uncollectibles.
D. Allowance for Uncollectible A/R
16,200
141
A/R
16,200
This entry to write off the uncollectible account isn’t recorded as an expense for Year 2,
because we already accounted for Bad Debt Expense for Year 1 on an estimated basis. The
difference between the previously recorded estimate and the actual accounts written off will
be corrected at the end of the 2nd year and compensated for in the amount of Year 2 Bad
Debt Expense.
Bad Debt Expense for Year 2 will be recorded at the end of the year as an adjusting entry.
A debit balance in the Allowance account before any year-end adjustment means that more
accounts were written off during the year than was previously estimated: we underestimated
bad debt expense in the prior year.. This error in estimation will be fixed in the current year
when we make the adjusting entry for Bad Debt Expense.
E. Bad Debt Expense
Allowance for Uncollectible A/R
22,350
22,350
(Allowance Account had a debit balance before adjustment of 4,350; this year’s estimated
uncollectibles is 18,000. We need a credit balance in the Allowance account of 18,000, so a
22,350 credit entry to the allowance account is required to produce the 18,000 credit
balance.)
Entry if the balance in the Allowance account before adjustment had been a credit balance of
1,000:
Bad Debt Expense
Allowance for Uncollectible A/R
17,000
17,000
(Allowance Account had a credit balance of 1,000; this year’s estimate is 18,000. To get a
total credit balance of 18,000, then a credit entry for 17,000 would be required.)
Question 11
Wage Expense
Wage Payable
Employee FICA Payable
Employee FIT Payable
Employee SIT Payable
10,000
Payroll Tax Expense
Employer FICA Payable
Employer FUI Payable
Employer SUI Payable
1,100
6,500
600
2,000
900
600
300
200
Question 12
Cash
Sales Revenue
Sales Tax Payable
COGS
212
200
12
?
142
Inventory
(Amount not given.)
Sales Tax Payable
Cash
?
12
12
Question 13
Internal controls are policies and procedures implemented by a business that are designed to
safeguard assets and ensure accurate accounting records.
Examples:
 Fencing around inventory and supplies
 Computer passwords
 Segregation of duties of accounting personnel.
Management is responsible to establish and implement internal controls. Shareholders benefit
from internal controls along with employees and customers who might be otherwise tempted and
get into trouble. CPAs have expertise in the area of internal controls. The external auditor will
test these controls to make sure that they are working and are reliable during the conduct of a
financial statement audit. The quality of controls will affect the scope of an auditor’s work and any
deficiencies are reported to management.
Question 14
A. Truck
Cash
Note Payable
30,000
10,000
20,000
Truck
Cash
(Capitalized expenditures)
5,000
Prepaid Insurance
Cash
2,400
5,000
2,400
B. (35,000 – 5,000) / 5 = 6,000  9/12 of a full year
Depreciation Expense
4,500
Accumulated Depreciation—Truck
C. Interest Expense
Interest Payable
(20,000  12%  9/12)
4,500
1,800
1,800
An adjustment also needs to be made for prepaid insurance ($2,400  9/12):
Insurance expense
1,800
Prepaid Insurance
1,800
D. Repair Expense
Cash
500
500
143
Normal repairs and maintenance costs are expensed when incurred. Improvements that
extend the asset’s useful life or productivity above and beyond the life or productivity
originally anticipated upon purchase are capitalized as part of the cost of the asset.
E. Interest Payable
Interest Expense
Cash
1,800
600
2,400
F. Depreciation Expense
6,000
Accumulated Depreciation—Truck
Interest Expense
Interest Payable
G. Capitalized Cost
- Accumulated Depreciation
H. Cash
Accumulated Depreciation
Truck
Gain on Sale of Truck
Note Payable
Cash
Interest Payable
Cash
6,000
1,800
1,800
35,000
(10,500)
24,500
28,000
10,500
35,000
3,500
20,000
20,000
1,800
1,800
If the truck had sold for $20,000:
Cash
Accumulated Depreciation
Loss on Sale
Truck
I.
20,000
10,500
4,500
35,000
(35,000 – 5,000) / 100,000 = .3 or $.30/mile
Depreciation Expense
Accumulated Depreciation
3,000
3,000
Question 15
A. Under GAAP, Research and Development costs incurred in the development of patentable
technology are all expensed in the period incurred.
B. The $5,000 in legal fees and the successful prosecution of a patent infringement suit would
be capitalized. The allocation of capitalized costs is known as amortization expense (for
patents and other intangible assets).
C . Copyright
Cash
Amortization Expense
Accumulated Amortization
1,000,000
1,000,000
20,000
20,000
144
(1,000,000 / 50 years = 20,000 per year)
D. Goodwill is defined as a business being worth more than its net assets (total assets – total
liabilities). It is only recorded when purchasing a business at a price above the fair market value
of the assets purchased less any liabilities assumed. (Note: Goodwill is the one intangible
asset that is not amortized to expense over time. Under current GAAP, the fair market
value of any recorded goodwill is determined at the end of each year and a loss is
recorded with any reduction in value. Gains on increasing values are never recorded.)
Assets
Goodwill
Cash
Liabilities
500,000
550,000
1,000,000
50,000
E. Yes, as the resources are depleted:
Depletion Expense
Accumulated Depletion
XXX
XXX
Question 16
Land
Building
Cash
Mortgage Payable
100,000
400,000
50,000
450,000
Entry on 4/1
Interest Expense
3,000
Mortgage Payable
301.94
Cash
(Interest: 450,000  .08  1/12 = 3,000)
3,301.94
Entry on 5/1
Interest Expense
2,997.99
Mortgage Payable
303.95
Cash
3,301.94
(Interest: 449,698.06  .08  1/12/ = 2,997.99)
Mortgage Payable balance after 5/1 payment is: $449,394.11
Question 17
A bond is a note payable arising from the borrowing of cash from the public. A bond indenture is
the written contract that spells out the legal terms and conditions of the obligations of the bond
issuer and the rights of the bondholders.
Debentures—Unsecured bonds
Secured or mortgage-backed bonds—Bonds for which property or real estate are specified as
collateral
Junk bonds—Unsecured bonds issued by companies with low credit ratings
145
Subordinated bonds—Typically unsecured bonds designated as having some subordinated
rights to other unsecured creditors
Term bonds—Bonds that require principal repayment in full at maturity
Serial bonds—Bonds that require the payment of principal periodically over the term of the bond
(Amortizing bonds)
Convertible bonds—Bonds that can be converted into shares of stock at an agreed upon rate.
Entry on 5/15
Cash
Bonds Payable
10,000,000
10,000,000
Entry on 8/15
Interest Expense
Cash
(Interest: 10,000,000  .07  3/12)
175,000
175,000
Question 18
A. Cash 90,000
Common Stock at par value
Paid in Capital in Excess of Par
10
89,990
B. Cash
90,000
Common Stock at stated value
Paid in Capital in Excess of Stated Value
10
89,990
C. Cash
90,000
Common Stock
90,000
Question 19
Entry at date of declaration
Dividends
Dividends Payable
250,000
250,000
Entry at date of record
No entry made on this date. On the date of record, a record is compiled of all current
hareholders of the outstanding stock. The shareholders as of this date are they who will
receive the dividend.
Entry at date of payment
Dividends Payable
Cash
250,000
250,000
146
Question 20
Cash
Preferred Stock at par value
Paid in Capital in Excess of Par
220,000
200,000
20,000
Annual Dividend Preference: $20 par value  7% = $1.40 per share  10,000 = $14,000
Companies are never obligated to declare dividends. In the event dividends are declared in a
particular year, preferred shareholders have a right to receive those dividends before any
common shareholders to the extent of their annual dividend preference. In the case of noncumulative preferred stock, there are no carryover rights if insufficient dividends are declared to
meet the current year dividend preference. If the preferred stock is cumulative, then the right to
any unpaid preference in a particular year is carried over to future years and is referred to as
dividend in arrears.
A. Dividends in arrears = 25,000 + current year dividends 14,000 = 39,000 dividends
payable to preferred stock. 100,000 – 39,000 = 61,000 available for common
stockholders.
B. Current preferred stock dividends = 14,000. 100,000 – 14,000 = 86,000 available for
common stockholders.
Question 21
A. Current Ratio = Current Assets / Current Liabilities = 150,000 / 117,000 = 1.28
Measures liquidity (the ability to meet short-term obligations).
B. Acid Test/Quick Ratio = Selected Current Assets / Current Liabilities:
Cash & A/R Test:
(18,000 + 52,000) / 117,000 = .59
Cash Only:
18,000 / 117,000 = .15
A more stringent measure of liquidity.
C. A/R Turnover = Total Net Credit Sales Revenue / Average Balance of A/R for Period
= 600,000 / (45,000+52,000)/2 = 600,000 / 48,500 = 12.37 times
Days Sales in A/R = 365 / A/R Turnover
= 365 / 12.37 = 29.5 days or average collection period
Measures the company’s performance in the collection of A/R
D. Inventory Turnover = Cost of Goods Sold / Average Inventory Balance for Period
= 350,000 / (82,000 + 74,000)/2 = 350,000/78,000 = 4.49 times
Days Sales in Inventory = 365 / Inventory Turnover
= 365 / 4.49 = 81.3 days or the period it takes to sell inventory.
Measures the company’s performance in the management of inventory levels.
147
E. Debt Ratio = Total Liabilities / Total Assets = 372,000 / 602,000 = .62
Measures the percentage of total assets financed with debt (leverage).
F. Debt to Equity = Total Liabilities / Total Owners Equity = 372,000 / 230,000 = 1.62
This is another way to measure leverage. For every $1.62 of debt there is $1 of equity.
G. EPS = Net Income / # of Shares Outstanding
Dividends per Share = Dividends / # of Shares Outstanding = 90,000 / 5,000 = 18
(The amount of dividends is determined by taking beginning Retained Earnings, plus Net
Income, less Dividends equals ending Retained Earnings. 20,000 + 100,000  x =
30,000; x = 90,000)
H. PE Multiple (Ratio) = Market Price Per Share / EPS
If the PE multiple is 25, then the Market Price is equal to $500 per share given:
500/20 = 25
I.
Asset Growth = “” in Assets / Base Year Assets
= 602,000 – 555,000 / 555,000 = .085 or 8.5%
J.
% Sales Revenue Growth = “” in Sales Revenues / Base Year Sales Revenues
= 600,000 – 500,000 / 500,000 = .20 or 20%
K.
Sales Revenue
Cost of Goods Sold
Gross Margin
X1
500,000 100%
(300,000) 60%
200,000 40%
X2
600,000 100%
(350,000) 58.3%
250,000 41.7%
Possible causes of increase:
1. Increase in sales price per unit sold above any increase in the cost per unit sold
2. Decrease in cost per unit sold.
L.
Net Income / Sales Revenues 75,000 / 500,000
= 15 %
100,000 / 600,000
= 16.6 %
Exam #3 Review Session— Questions
1.
What are some of the distinguishing characteristics of managerial vs financial
accounting?
2.
For a merchandising business, what common costs are included in its
a. product costs?
b. period costs?
How are these costs accounted for?
148
3.
For a manufacturing business, what common costs are included in its
a. product costs?
b. period costs?
How are these costs accounted for?
Diagram the flow of costs through the three stages of inventory for a manufacturing
business.
4.
Do service companies have product costs that are accounted for as inventory?
5.
What kinds of manufacturing businesses would choose to use a job order cost system as
opposed to a process cost system? What are the distinguishing characteristics of the two
methods of accounting for manufacturing product costs?
6.
Prepare the general journal entries for Custom Boat Manufacturing (“CBM”) given the
following transactions:
a. CBM purchases on account $100,000 of direct materials (lumber, sails, glue, nails,
paint, etc.) and $10,000 of indirect materials (factory supplies, sandpaper, paint
brushes, etc.)
b. CBM receives an order for two “Bullet” sailboats and initiates a manufacturing job (job
order #303) to build four “Bullets” to meet the order and provide for two additional
boats for future anticipated sales. The following job cost sheet is set up for job
#303:
Job Cost Sheet
Job # : 303
Descrip.: 4 Bullet Sail Boats
Start Date: 11/30/X1
Completion Date: _____
Direct Material Costs: Req. #
______
Direct Labor Costs: Time Card #’s
___________________
Manufacturing Overhead: DL Hours
X
______
Amount
$______
$______
OH Rate
_______
$______
Total
$______
Divided by  ______
Cost Per Unit $______
c. Direct materials costing $12,000 are requisitioned (Requisistion # 2255) from raw
materials and placed into production exclusively for job #303. (Also make any
entry necessary to the Job #303 Job Cost Sheet)
d. Indirect materials amounting to $3,000 (sandpaper brushes, etc.) are requisitioned
and will be used in the production of Job #303 and other jobs.
e. Nails and glue costing $1,500 are requisitioned and placed into production for Job
#303 and other jobs.
f. Total wages paid to direct manufacturing employees for the month amount to $50,000
(2,500 hours at an average rate of $20/hr.) of which time card #’s 222 and 224
show a total of 320 hours at a rate of $20/hour for job #303. (Also make any
entry necessary to the Job #303 Job Cost Sheet)
149
g. Total manufacturing supervisor and production maintenance salaries paid for the
month amount to $30,000.
h. Total factory utility, rent, insurance, property taxes and other costs amounting to
$40,000 for the month are paid.
i. Depreciation of factory equipment for the month amounts to $8,000.
j. Assume manufacturing overhead is applied to WIP jobs based on a predetermined
rate of $32 per direct labor hour. (Also make any entry necessary to the Job
#303 Job Cost Sheet)
k. Job #303 ‘s production is completed.
l. Two of the four Bullet boats completed in Job #303 are shipped to the customer. The
customer has agreed to pay a price of $15,000 each for the boats within 30 days
of delivery. Determine the gross margin made on this sale. Is this the amount of
net income made by CBM on these two boats?
m. Sales, accounting and all administrative salaries and wages for the month totaling
$40,000 are paid.
n. Total selling and administrative building rent, utilities, supplies, insurance, property
taxes, and other costs amounting to $25,000 are paid during the month.
o. The manufacturing overhead account is closed-out at the end of the month.
7. How is a predetermined overhead rate, such as the $32 rate per direct labor hour used in
Problem 6 above, derived?
8. Given the following past and budgeted information for RST, Inc, determine the best
measure upon which RST’s overhead rate would be based and calculate the
predetermined overhead rate to be used in ‘X3.
‘X1
‘X2
Budget ‘X3
Manufacturing Overhead
$2,000,000
$2,200,000
$2,500,000
Direct Material Costs
$4,250,000
$3,750,000
$5,500,000
Machine Hours
30,000 hrs.
24,000 hrs.
19,000 hrs.
Direct labor hours
60,000 hrs.
65,000 hrs.
71,500 hrs.
9. What is CVP analysis and what purpose does it serve for management? (To perform
simple CVP analysis, all of a company’s costs (product and period) must be identified
and characterized and quantified as either perfectly fixed or perfectly variable in their
behavior with changes in volume.)
150
10. Define variable costs. Give examples of common variable product and period costs.
Graph the total cost of direct materials in the manufacture of bicycles if the a direct
material costs amount to $50 per bicycle within a range of production volume from
- 5,000 units. What does relevant range mean and what are its implications in CVP
analysis?
0
11. Define fixed costs. Give examples of common fixed product and period costs. Graph
the total cost of building rent in the manufacture of bicycles if the rental rate is $30,000
per year within a range of production volume from 0 - 5,000 units. What does relevant
range mean and what are its implications in CVP analysis from the standpoint of fixed
costs? Graph the fixed rental costs per bicycle produced at a volume of 1,000 - 5,000
units.
12. a. What are stepped costs and how should they be dealt with in CVP analysis?
b. What are mixed costs and how should they be dealt with in CVP analysis?
13. Given the following information for a company’s utility costs over the last four months:
Actual Production
Volume
Months
February
10,000 units
Actual
Utility Costs
$ 25,000
March
8,000 units
$21,000
April
15,000 units
$35,000
May
12,000 units
$32,000
a. How would one apply the scattergraph method to determine the fixed and variable
elements of this mixed cost?
b. Determine the fixed and variable elements of this mixed cost using the high-low
method? If June’s budgeted volume of production is 20,000 units, what would be the
amount of utility costs budgeted for the month?
c. Which of the two methods is the best approach for the real world? .....for the exam?
14. Given the following information, prepare a contribution margin income statement:
Accounts Receivable
$ 50,000
Fixed Selling and Admin. Expenses
$ 125,000
Sales Revenues
$ 760,000
Variable Portion of Costs of Goods Sold
$ 346,000
Fixed Portion of Costs of Goods Sold
$ 127,000
Variable Selling and Admin. Expenses
$ 85,000
Accounts Payable
$ 47,000
a. What is the variable cost ratio?
151
b. What is the contribution margin ratio?
c. Does it make sense that the variable cost ratio plus the contribution margin ratio is
equal to 1?
d. If the company sold 100,000 units what was the sales price per unit, variable cost per
unit, the contribution margin per unit, and the fixed cost per unit. Does variable
cost per unit change with changes in volume? Does the fixed cost per unit
change with changes in volume?
15. Given the following for Norm’s Bikes:
Sales price per unit
Variable cost per unit
Total fixed costs per month
$100/unit
$ 40/unit
$ 24,000
a. How many units must Norm sell to breakeven during the month?
b. How many units must Norm sell to make a profit of $10,000 for the month?
c. If Norm currently sells 400 bikes a month and could increase volume by 20% with a
10% discount in the sales price, what would be the impact on net income?
16. Given the following:
Variable cost ratio
45%
Total fixed costs for the period $100,000
What must sales revenues be for the period to generate a $1,000,000 profit?
17. Given the following:
Contribution margin per unit
$ 70
Total fixed costs for the period $ 50,000
How many units must be sold to breakeven?
18. Given the following:
Sales price per unit
$ 100
Breakeven volume
1,000 units
Total fixed costs
$ 30,000
Determine the volume required to achieve a targeted net income of $ 180,000.
19. Given the following:
Budgeted sales volume
25,000 units
Variable cost ratio
60%
Total fixed costs
$50,000
Determine the sales price that must be charged per unit to achieve a $100,000 profit.
20. Given the following:
Sales price per unit
$ 120
Variable cost per unit
$ 80
Breakeven sales revenues
$360,000
Determine the number of units that must be sold to achieve a profit of $100,000.
21. Note the three basic planning or budgetary processes which should be implemented by a
business as noted in the accounting lessons.
22. Diagram the operating budget sequence required to produce a cash flow budget for a
merchandising company. Remember: The operating budget process always begins with
the sales budget. Do the same for a manufacturing business.
152
23. What are the benefits of doing an operating budget for a business.
24. Assuming the following for a manufacturing company:
April - 10,000 units
May - 13,000 units
June - 15,000 units
of sale, 35% in the month following sale and 15% in the 2 nd month following sale.
month equal to 20% of the following month’s budgeted sales volume. The April
1st finished goods inventory balance amount to 1,900 units. All production
initiated during a month is completed during the month.
cost $3 per unit and $3,000 of direct
materials inventory is to be maintained on-hand at all times. The April 1st
balance is equal to $3,300.
the month of purchase and the remainder to be paid in the following month.
month incurred.
Fixed manufacturing overhead costs total $12,000 per month including $2,000 of
depreciation expense. All manufacturing overhead costs are paid for in the
month incurred.
fixed selling and administrative costs total $10,000 per month, including $1,000
of depreciation. All of these costs are paid in the month incurred.
st balance sheet includes the following amounts: Cash of $8,000 and
Accounts Receivable of $54,000 of which $20,000 is from February sales that is
all expected to be collected in April and $34,000 is from March sales of which
70% is expected to be collected in April. Accounts payable outstanding on April
1st amounts to $14,000 from March direct material purchases.
a. To the extent possible prepare for the months of April, May and June a sales budget,
production budget, direct materials purchases budget and direct labor budget.
b. Prepare a cash flow budget for the month of April.
c. Determine the amount of cash inflows from customers for the month of June.
d. Determine the ending balance of Accounts Receivable on a June 30th pro forma
balance sheet.
e. Explain how the ending balance of finished goods inventory on an April 30 th pro forma
balance sheet would be determined.
25. a.
b.
c.
c.
What are non-routine business decisions and note some examples.
What are relevant costs in non-routine decision making.
What are direct costs of a decision option? Are they relevant costs?
What is a sunk cost and is it every relevant in non-routine business decision making?
Provide some examples.
d. What are opportunity costs and are they relevant in non-routine business decision
making? Provide some examples.
26. Assume the following unit cost data for Ace Lighting’s production of a lamp:
Direct material
Direct labor
Variable manufacturing overhead (avoidable)
Fixed manufacturing overhead
$20
8
4
6*
$ 38
153
*Amount reflects unavoidable fixed costs of $60,000 reflected here on a per unit basis
given a budgeted volume of 10,000 units of production.
If a new customer wishes to place a special order for 900 units but is only willing to pay
$35 per unit, how much profit (loss) would be made on the special order if accepted,
assuming that sufficient unused production capacity exists to produce the order?
27. Jones Company produces 5,000 units per month of a needed component part, incurring
per-unit costs as follows: direct material, $7; direct labor, $11; variable manufacturing
overhead, $2. Total fixed manufacturing overhead costs amount to $54,000 per month.
The purchasing department can buy comparable units for $22 per unit. Assuming
one-half of the fixed costs are direct and could be avoided if the component is purchased
rather than manufactured and $8,000 per month of revenue could be generated by
renting out the excess factory space, purchase of the units would result in what amount
of savings or loss?
28. ZZZ Company has total income from all departments of $55,000. Department Q reports
the following information for this year:
Revenue
Variable cost of goods sold
Fixed cost of goods sold
Variable selling expense
Fixed selling expenses
Net Income (Loss)
$625,000
350,000
70,000
225,000
50,000
$ (70,000)
Assuming that 50% of department Q's fixed costs and expenses are direct and could
have been avoided, what would the firm's total net income have been if Department Q
had been discontinued at the beginning of this year's operations?
29. Dakota Company makes its standard model, which sells for $96 per unit, with the
following variable per unit costs:
Direct material
Direct labor
Variable manufacturing overhead
(25% of direct labor cost)
$20
$32
$8
Total fixed manufacturing overhead amounts to $25,000. To use part of its existing
excess capacity without incurring additional fixed manufacturing overhead costs, Dakota
plans to process the standard model further by adding an additional finish, which would
raise the selling price to $120. Additional unit costs would include direct material, $10,
direct labor, $8 and variable manufacturing overhead. What would the amount of
increase or decrease in profit per unit from processing the product further?
30. Jordan, Inc., manufactures products A, B, and C with the following information per unit:
Sales Price
Variable costs
Machine hours required 10
A
$60
20
B
$80
50
6
154
C
$40
16
4
Machine hours are a constraining resource for Jordan's operation. If Jordan has excess
capacity, the company should emphasize which of the three products in its marketing
efforts?
31. A company has a noncancellable lease on equipment with three years remaining on the
original lease at a cost of $1,000 per year. The equipment cannot be subleased or sold
and has no anticipated residual value at the end of the lease. Given these
circumstances, the future lease payments under any decision which contemplates the
purchase of newer replacement equipment should be characterized as a(an)
a. opportunity cost.
b. differentiating cost.
c. sunk cost.
d. direct cost.
e. avoidable cost.
If the equipment could be subleased out for the remaining term for $500/month, the $500
lease income would be referred to as an_________.

Exam #3 Review Session— Solutions
1. See Slides 1& 2 of Lesson #11 notes
2.
a. Product costs- Costs incurred in acquiring and receiving merchandise inventory,
including the purchase price, freight-in costs, import fees, etc.
Inventory
Cash
COGS
Inventory
xxx
xxx
xxx
xxx
b. Period costs- All other operating costs including selling and administrative costs.
Selling and Administrative Expense
Cash/Payable
xxx
xxx
3.
a. Product costs- Cost of direct materials, direct labor, manufacturing overhead.
b. Period costs- All other operating costs including selling and administrative costs.
How to Account for this?
See diagram on slide 8 of Lesson #11 notes
4. Yes. All costs incurred in providing partially completed services are included as an asset
on the company’s balance sheet. This is sometimes referred to as WIP-Services or
Unbilled Service Costs.
5. Job Order Costing- Used by companies that manufacture a variety of products (in
batches or jobs) from a common factory or process. Costs per unit of production are
determined through the use of separate job cost records which accumulate the costs
incurred in the production of each job.
Process Costing- Used by companies that continuously manufacture the same product
using the same process or procedures over an extended period of time. The cost per
unit of production is determined by dividing the total costs associated with the factory or
155
manufacturing process for a period by the number of units produced over that same
period.
6.
a. Raw Materials xxx
Accounts Payable
xxx
b. No entry made
c. Work in Process*
12,000
Raw Materials
12,000
* Accompanying entry made to job cost record:
Direct Materials Costs Req.#- 2255
d. Mfg. Overhead 3,000
Raw Materials
Amount- $12,000
3,000
e. Mfg. Overhead 1,500
Raw Materials
1,500
(Even though these are direct material costs, they’re accounted for the same as
indirect materials to avoid having to allocate them directly on a job-by-job basis.)
f.
Work in Process*
Cash
50,000
50,000
* Accompanying entry made to job cost record:
Direct Materials Costs Req.#- 2255
Direct Labor Costs: Time Card#’s- 222 & 224
320 x 20
g. Mfg. Overhead 30,000
Cash
30,000
h. Mfg. Overhead 40,000
Cash
40,000
i.
j.
Mfg. Overhead 8,000
Accum. Depn.
Amount- $12,000
$ 6,400
8,000
Work in Process*
80,000
Mfg. Overhead 80,000
(2,500 total hours  $32 = $80,000)
* Accompanying entry made to job cost record:
Direct Materials Costs Req.#- 2255
Direct Labor Costs: Time Card#’s- 222 & 224
320 x 20
Manufacturing Overhead: DL Hours x OH Rate
320
x
32
k.
Finished Goods 28,640
Work in Process*
28,640
156
Amount- $12,000
$ 6,400
$ 10,420
* Amount comes from job cost record:
Direct Materials Costs Req.#- 2255
Direct Labor Costs: Time Card#’s- 222 & 224
320 x 20
Manufacturing Overhead: DL Hours x OH Rate
320
x
32
Amount- $12,000
$ 6,400
$ 10,420
Total
$28,640
Divided by 4
Cost/Unit $7,160
l.
Accounts Receivable 30,000
Sales Revenue
30,000
COGS
14,320
Finished Goods 14,320
(2 units  $7,160 per unit = $14,320)
Gross Margin = 30,000 – 14,320 = 15,680*
* This is not the amount of Net Income. It doesn’t reflect other operating
costs (selling and administrative period costs).
m. S & A Expenses
Cash
.
n. S & A Expenses
Cash
o. COGS
40,000
40,000
25,000
25,000
2,500
Mfg. Overhead 2,500
Mfg. Overhead
3,000
1,500
30,000 80,000 Applied to WIP
40,000
8,000
2,500
2,500 Closing entry
0
Actual costs
Under-applied
7.
Predetermined
Overhead Rate
=
Total Budgeted Manufacturing Overhead Cost for the Period
Total Budgeted Measurable Activity that drives Overhead Costs for
the Period
8. Divide Manufacturing Overhead each year by each possible measure to determine which
seems to be most consistent.
‘X1
‘X2
157
Budget ‘X3
Manufacturing
Overhead
Direct Material
Costs
Machine
Hours
Direct Labor Hours
$2,000,000
$2,200,000
$2,500,000
$4,250,000
$.47
30,000 hrs.
$.67
60,000 hrs.
$.33
$3,750,000
$.59
24,000 hrs.
$.92
65,000 hrs.
$.34
$5,500,000
$.45
19,000 hrs.
$132
71,500 hrs.
$35
9. (part 2) See Lesson 13 - Slide 17
10. Variable Costs: Costs that vary in total with changes in volume but are the same per unit.
Relevant Range: The anticipated range of operating volume for a period of time. In CVP
analysis, variable costs are assumed to be the same on a per unit basis within the
relevant range.
11. Fixed Costs: Costs that remain constant in total with changes in volume. Fixed costs
calculated on a per unit basis change with any changes in volume.
12. Stepped Costs: Costs that change in total in a star step fashion with changes in volume
of activity. In CVP analysis these costs are assumed to be either fixed or variable within
the relevant range of productions and are treated as such.
Mixed Costs: Costs that contain both fixed and variable components. In CVP, the fixed
and variable components are broken out using either a scattergraph or a high/low
approach.
13.
a. Plot the points on a graph and sketch the line to estimate fixed and variable
costs.
b. First determine the VC/unit by calculating the slope of the line that intersects the
high and low point in terms of volume.
(35,000-21,000) / (15,000-8,000) = 14,000 / 7,000 = $2 per unit
Then calculate the fixed cost using either the high or low point:
At high point:
Total Costs
35,000
35,000
5,000
=
VC
+
= (2  15,000) +
= 30,000
+
=
FC
At low point:
Total Costs
21,000
21,000
5,000
=
VC
+ FC
= (2  8,000) + FC
= 16,000
+ FC
=
FC
FC
FC
FC
Total cost budgeted for June at a volume of 20,000
Total Costs
=
VC
+ FC
TC
= (2  20,000) + 5,000
TC
=
40,000
+ 5,000
TC
=
45,000
158
In the real world the best approach is the scattergraph method because it takes
into consideration more data. However, for the exam the high/low method will be
used because it is objective in its result.
14. Sales Revenue
Less: Var. COGS
Var. Selling & Adm.
Contribution Margin
Less: Fixed COGS
Fixed Selling & Adm.
Net Income
$760,000
(346,000)
(85,000)
329,000
(127,000)
(125,000)
77,000
a. VC Ratio = VC/SR variable costs as a % of sales revenues
431,000 / 760,000 = 56.7%
b. CM Ratio = CM/SR contribution margin as a % of sales revenues
329,000 / 760,000 = 43.3%
c. Yes!
d. SP/unit = 760,000 / 100,000 = $7.60/unit
VC/unit = 431,000 / 100,000 = $4.31/unit
CM/unit = 329,999 / 100,000 = $3.29/unit
FC/unit = 252,000 / 100,000 = $2.52/unit
The VC/unit doesn’t change with changes in volume within the relevant range.
The FC/unit changes with changes in volume.
15.
a. 100x – 40x – 24,000 = 0
60x = 24,000
x = 400
b. 100x – 40x – 24,000 = 10,000
60x = 34,000
x = 566.7 or 567 units
c. 90(480) – 40(480) – 24,000 = 0
16.
x – .45x – 100,000 = 1,000,000
.55x – 100,000 = 1,000,000
.55x = 1,100,000
x = 2,000,000
17.
70x – 50,000 = 0
18.
First calculate VC/unit at breakeven:
100(1,000) – 1000y – 30,000 = 0
1,000y = 70,000
y = 70 (variable cost per unit)
Then:
100x – 70x – 30,000 = 180,000
30x – 30,000 = 180,000
30x = 210,000
x = 7,000 units
19.
25,000x – .6(25,000x) - 50,000 = 100,000
x = 714.29 round up to 715 units
159
$15 = cost/unit
20.
First calculate the total FC at breakeven:
120(3,000) – 80(3,000) – y = 0 FC = 120,000
Then
120x – 80x – 120,000 = 100,000 x = 5,500 units
21.
Lesson 14 – Slide #1
22.
Lesson 14 – Slide #5
23.
Lesson 14 – Slide #3
24.
a)
Sales Budget
Sales Price Per Unit
Projected Sales
Expected Sales Revenue
April
May
12
10000
120000
12
13000
156000
Production Budget
Expected Sales in Units
Add Desired Ending Inventory
Total Units Needed
Less Beginning Inventory
Number of Units to Produce
10000
2600
12600
-1900
10700
13000
3000
16000
-2600
13400
Direct Materials Purchase Budget
Direct Materials Usage
Direct Materials Usage Per Unit
Units Produced
Materials Cost
3
10700
32100
3
13400
40200
Direct Materials Purchases
Desired Ending Inventory
Materials Needed for Production
Total Materials Needed
Less Beginning Inventory
Materials to be Purchased
3000
32100
35100
-3300
31800
3000
40200
43200
-3000
40200
10700
2
21400
13400
2
26800
Direct Labor Budget
Production Units
Direct Labor Cost Per Unit
Direct Labor Costs
b)
160
Cash Flow Budget
Beginning Cash
Cash Inflows
Add April Cash Sales
Add April A/R Collected
Add March A/R Collected
Add February A/R Collected
Total Cash Available
Less Disbursements
Direct Materials (31800/2+14000)
Direct Labor
Manufacturing Overhead
Selling and Administrative Expenses
Total Disbursements
Ending Cash
c)
Cash Flows from Customers in June
June Cash Sales
June A/R Collected
May A/R Collected
April A/R Collected
Cash Collected
d)
June 30th A/R Balance
April A/R
May A/R
June A/R
8000
24000
48000
23800
20000
123800
-29900
-21400
-42100
-19000
-112400
11400
36000
72000
43680
14400
166080
0
18720
72000
90720
e) To find Pro-Forma finished goods inventory on April 30 th you take May’s projected sales
in units and multiply by 20%. This is the amount of inventory the company wants on
hand on April 30th.
25.
a. Non-routine business decisions are decisions that are rare or unusual. They
don’t happen on a regular basis. Ex: Make or buy decision. Sell new product,
etc.
b. Relevant costs are future costs that are different among decision options.
c. Direct costs are differentiating costs associated with a specific decision option.
They are always relevant.
d. Sunk costs are unrecoverable past costs. In other words they are already spent
and should not be taken into account when making a decision. In a decision to
buy a new computer, the cost off your old one is a sunk cost if its not resaleable.
e. An opportunity cost is forgone revenue under a decision option. Ex: If you buy a
car, then your opportunity cost is the lost revenue you won’t make by investing
that money.
161
26. 20 + 4 + 8 = $32
Sales Price / Unit of $35 – Per Unit Costs of $32 = $3 Profit / Unit
900 * 3 = $2700 profit
27. Make
Purchase
$7
$22
11
2
20 variable costs 22
x 5,000 units
5,000
100,000
110,000
+54,000
+27,000
- 8,000
154,000
129,000
154,000 – 129,000 = 25,000 savings ($5/unit)
28. Net Loss with Department Q = (70,000)
Net Loss without Department Q = (35,000) fixed COGS & (25,000) fixed selling
expenses = (60,000) Total
The firm’s total net income would go up by 10,000 without department Q
55,000 + 10,000 = 65,000 Net Income
29. Additional Revenue per Unit = 120 – 96 = 24
24 – 10 – 8 – 2 = $4 increased profit per unit
30. Calculate contribution margin per machine hour:
A: 40 / 10 = 4
B: 30 / 6 = 5
C: 24 / 4 = 6
Use C (highest contribution margin per machine hour).
31. c
a
Exam Review Topics
Students can find the following information on the accounting accounting software by opening the
accounting software and clicking Resources> Exam Topics. Students should use this information
to identify the general topics for each exam. We have included this information here for your
reference.
Lesson 1:
 What is accounting?
 What is business? Kinds of businesses?
 Keys to a successful business.
 Raising capital. Debt vs. Equity financing.
 Define financial vs. managerial accounting and note distinguishing characteristics.
 Characteristics of useful information.
 What is GAAP? Explain its significance?
 Role of SEC and the FASB.
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GAAP and international business
What do CPA’s do? Role of AICPA.
External audits: who, what and why?
Importance of auditor independence.
Basic characteristics of proprietorship,
partnership and corporation.
Lesson 2:
 The general purpose financial statements required under GAAP.
 Basic accounting equation.
 Understand terms: assets, liabilities, owner’s equity, contributed capital (capital stock),
retained earnings, revenues, expenses, dividends, EPS (earnings per share)
 The expanded accounting equation over time.
 Interrelationship of financial statements.
 Basic format of balance sheet (current vs. long-term assets and liabilities), income
statement (including EPS) and statement of cash flows.
Lesson 3:
 Understand the application of the:
o Historical cost principle.
o Entity concept.
o Monetary measurement principle
 Understand the effect of basic transactions on A = L + OE
 Debits and credits and their effect on assets, liabilities, owners’ equity, revenues,
expenses, and dividends
 Understand and implement the first steps of the accounting cycle given some basic
business transactions:
o Identify transactions.
o Analyze transactions.
o Journalize transactions.
o Post journal entries to the general ledger accounts
 Purpose of a general journal, general ledger and trial balance.
Lesson 4:
 Accrual vs. cash basis accounting? The revenue recognition and matching principles.
 The why and how of basic adjusting entries for
o Unrecorded revenues
o Unrecorded expenses
o Prepaid expenses
o Unearned revenues
 Real vs. nominal accounts.
 The why and how of closing entries.
 Account analysis.
 Financial Practice Set:
 The purpose and use of subsidiary ledgers and special journals.
 The steps in an accounting system designed to produce financial statements.
Exam 2 Topics
Lesson 5:
 Accounting for sales discounts and returns.
 Accounting for uncollectible receivables.
 Accounting for credit card transactions.
Lesson 6:
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Perpetual inventory accounting.
Accounting for inventory purchase discounts and returns.
Inventory Cost Flow Methods (Perpetual)
o Specific Identification
o FIFO, LIFO, Moving Weighted
Average
Effects of FIFO, LIFO, MWA methods on net income, income taxes and ending inventory
given inflation vs deflation.
Physical inventory.
Lesson 7:
 Accounting for payroll:
 Salaries/wages and employee payroll tax withholdings.
 Employer payroll tax expense.
 Accounting for sales taxes.
 Other operating expenses.
 Internal controls: Who, what and why?
Lesson 8:
 Accounting for acquisition of operating
 (capital) assets:
 Property, Plant, Equipment
 Intangible Assets
 Natural Resources
 Straight-Line and units of production methods of depreciation.
 Accounting for repairs and improvements.
 Accounting for sale or disposal of operating assets
 Accounting for intangibles including goodwill.
 Accounting for research and development costs.
 Accounting for natural resources.
Lesson 9:
 Current vs. Long-term Debt.
 Accounting for interest bearing note payable.
 Accounting for mortgage payable (typical amortizing mortgage).
 Types & characteristics of bonds.
 Accounting for bonds issued at face value.
 Debt vs. Equity Financing.
 Accounting for issuance of common stock:
o par value
o stated value
o no par
 Accounting for issuance of preferred stock.
 Calculating cash dividends payable to common vs. preferred stockholders.
 Accounting for declaration and payment of dividends.
Lesson 10:
 Basic financial statement analysis.
 Ratio calculations and analysis
 Vertical and horizontal analysis of income statement amounts for purposes of future
projections.
Exam 3 Topics
Lesson 11:
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Managerial vs. Financial Accounting
Types of Business - merchandising, manufacturing, service
Product vs. Period Costs in merchandising and manufacturing businesses
Product costs in a manufacturing business
o Direct materials
o Direct labor
o Manufacturing overhead
o Indirect materials
o Indirect labor
o Other overhead costs
Stages of manufacturing product costs
o Raw materials inventory
o Work in process inventory
o Finished goods inventory
Lesson 12:
 Job order vs. Process cost systems
 Job order cost system basic journal entries and cost flows
 Complications in accounting for manufacturing overhead costs:
o Calculation of a Predetermined Manufacturing Overhead Rate and applications
of overhead to WIP.
o Utilization of the Manufacturing Overhead Account for actual overhead costs and
applications to work in process.
o Disposition of over/under applied overhead to Cost of Goods Sold
Lesson 13:
 Variable vs. Fixed costs defined
 Relevant range assumptions
 Mixed costs - fixed vs. variable components
 Scattergraph and High-Low methods.
 Why and how?
 Contribution margin income statement format vs. GAAP functional format
 CVP analysis to determine:
o Breakeven points in # units, sales $
o Target income in # units, sales $
o Net income at varying volumes of production or sales
o Other information
 Graphs - understanding cost, volume, profit
Lesson 14:
 Operating budgets - why?
 Basic formats and flows of budgetary information
 Production and Material Purchase budget complications involving budgeted changes in
inventory
 Cash flow budget complications and preparation
 Pro forma financial statements
Lesson 15:
 Relevant/Differential costs defined
 Sunk costs, opportunity costs defined
 Product emphasis given a limited critical resource
 Whether to add/drop a product line
 Whether to make or buy a product or component part
 Whether to sell a product as is or process it further (Joint Costs)
 Pricing a special order
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