This primer provides a background in the mechanics of accounting

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MANDATORY ACCOUNTING PREPARATION FOR INCOMING
FULL-TIME MBA STUDENTS
TO DO?
During summer (before PreTerm):
1. Purchase the financial accounting textbook. See page 2 of this handout for details.
2. Read Chapters 1 and 2 of Pratt “Financial Accounting”.
3. Carefully read the attached FINANCIAL ACCOUNTING PRIMER, and complete the
practice problems (A) – (F). You will be asked to submit Problem (F) on the first day
of regular accounting class, September 14. (Solutions to Problems (A)-(E) are at the
back of the primer.)
Reading the primer in the Word electronic format will allow you to click on
tables and see them in Excel format. Alternatively, for reading a hard copy, print
out the pdf version of the Financial Accounting Primer.
4. Read the brief NOTE ON COSTS. This provides important information that will be
assumed early in your marketing course.
WHAT IS YOUR BACKGROUND IN ACCOUNTING?
o If you have no background in accounting, allow 20-30 hours to complete this work
during the summer, and make sure to attend the Primer Review Sessions during
PreTerm. This is essential given that you will not have time to catch up once the
semester begins.
o If you have some prior understanding of the mechanics of accounting, then you will be
able to complete the assigned material more quickly.
o If you have a strong knowledge of accounting, check if you qualify to take the
accounting (AC 710) waiver exam. See: https://smgnet.bu.edu/gpo/formsAcademic.shtml
See page 3 of this handout for the Study Guide for the Waiver Exam.
o If you hold a CPA (or foreign equivalent) then you can be waived out of AC 710,
without taking the waiver exam. Contact the Graduate Programs Office:
[email protected]
NOTE:
1. Accounting faculty will conduct Primer Review Sessions during PreTerm to review your
understanding of both the Financial Accounting Primer and the Note on Costs.
2. The first accounting exam will be held during the second week of accounting class. It
requires you to prepare a set of financial statements from a list of transactions and other
information, using the spreadsheet approach described in the attached Primer.
HELP?
If you have specific questions related to material in this assignment, please contact
Professor Alison Kirby Jones ([email protected]).
EXCEL?
The Financial Accounting primer uses a spreadsheet. It can be completed manually
on paper or using Excel. However, be prepared to use Excel in your MBA courses.
2
TEXTBOOKS:
There are two required textbooks for the accounting course, AC 710:
1. “Financial Accounting in an Economic Context”
Author:
Jamie PRATT
7th edition
Available in hardback or as an e-book.
Date:
2008/9
Publisher:
WIley
ISBN-13:
978-0470-12882-4
(FYI, there is also a study guide for this textbook. It is NOT required.)
2. “Managerial Accounting – Concepts, Methods and Uses”
Author:
Maher, Stickney and Weil
th
10 edition Available in hardback or in BU custom edition
Date:
2007/8
Publisher:
Thomson
ISBN- 13:
978-0324-68478-0 for BU custom edition (selected
chapters only) available at BU Bookstore only.
No image available.
or
ISBN-13:
978-0324-63976-6 for hardback edition
You will not need the Managerial Accounting textbook until November, but it
will be available in the bookstore at the beginning of the semester.
Fall 2010: Incoming Full-time MBA Students
Prof. A. Kirby Jones
3
STUDY GUIDE FOR THE AC 710 WAIVER EXAM
The waiver exam requires a problem solving knowledge of the topics listed below. Only
some of these topics will be on the exam, but material from any of the listed chapters may
be on it. The exam will place a greater weight on Financial Accounting than Managerial
Accounting (approximately 60%/40%). Students must earn 70% to pass the waiver exam.
Financial Accounting
Topics
Introduction
Financial Statements
Measurement Principles
Mechanics
Ratio Analysis
Inventories & COGS
Fixed Assets & Depreciation
Liabilities
Shareholders’ Equity
Statement of Cash Flows
Chapter in
PRATT*
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 7
Chapter 9
Chapter 10
Chapter 12
Chapter 14
Managerial Accounting Topics
Cost Concepts
Product Costing
Activity Based Costing
Estimating Cost Behavior
Cost-Volume-Profit Analysis
Decision Making
Budgeting
Performance Evaluation
Transfer Pricing
Chapter in
MSW**
Chapter 1
Chapter 2
Chapter 3
Chapter 5
Chapter 6
Chapters 7
Chapter 9
Chapter 10
Chapter 11
*PRATT refers to “Financial Accounting in an Economic Context” by Jamie Pratt, 7th edition.
**MSW refers to “Managerial Accounting: An Introduction to Concepts, Methods and Uses”,
by Maher, Stickney and Weil, 10th edition.
These topics are covered in a similar way in most introductory financial and managerial
accounting textbooks, many of which are available in libraries.
Fall 2010: Incoming Full-time MBA Students
Prof. A. Kirby Jones
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