Department of Accountancy
Spring 2013
Course Numbers:
MBAD 6211-80 / ACCY 6101-80
W 7:10-9:40 p.m. / Funger 209
Course Titles:
Financial Accounting
Course Description:
The basic concepts and methods used in financial reports for understanding their
content and context. The income statement, balance sheet, and statement of cash
flows. Detailed accounting procedures and choices. How the most important
accounting procedures are calculated and how different choices impact financial
statements.
Prerequisites:
Graduate Standing
Professor:
Lawrence G. Singleton, Ph.D., CPA
Required textbook:
Financial Accounting: An Introduction to Concepts, Methods, and Uses, by
Stickney, Weil, Schipper, and Francis, 13th Edition, South-Western, Cengage
Learning, 2010.
Required annual report:
Harley-Davidson 2005 Annual Report – available for download in Blackboard.
Optional materials:
The publisher website contains a wealth of additional materials that can help
you this semester. A link to this URL is also available in the Course Materials
area of Blackboard: http://websites.swlearning.com/cgiwadsworth/course_products_wp.pl?fid=M20b&flag=student&product_isbn_iss
n=9780324651140&disciplinenumber=400
Other materials:
Form 10-K / Annual Reports
Cases for class discussion
Other materials as needed to illustrate specific accounting issues
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 2
Learning Objectives:
Students will develop a solid basic understanding of the principles of financial
accounting.
Students will understand the financial reporting system in the United States.
Students will be able to conduct basic financial statement analysis of the
balance sheet, income statement, and statement of cash flows.
Method of Instruction:
The course is based on lectures and the discussion of assigned exercises,
problems, and cases. Student participation in class discussions is expected.
You should bring your textbook, solutions, calculator, and one or more pencils
to every class.
Method of Grading:
Your final grade will be based on the following:
(1) Homework assignments, which you will submit for credit.
(2) An analysis of corporate financial statements, which you will submit for a
grade. This is a group project.
(3) An in-class midterm examination.
(4) An in-class final examination.
All individual work (everything except the financial statement analysis group
project) is to be done by you and without help from any other person (including
any other member of your class).
The point allocation will be as follows:
Midterm exam
Final exam
Financial statement analysis project
Homework
100 points
100
50
30
280 points
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 3
Deliverable Due Dates:
Homework, Chapters 1-2
Homework, Chapter 3
Homework, Chapters 4-5
Homework, Chapter 6-7
Midterm Exam
Homework, Chapter 8
Homework, Chapter 9
Homework, Chapters 10, 11, Appendix
Financial statement analysis project
Complete for class discussion
Final submission
Homework, Chapters 12, 13, 14, 16
Final Exam
Class Session #2
Class Session #3
Class Session #5
Class Session #7
Class Session #7
Class Session #9
Class Session #10
Class Session #12
Class Session #13
Class Session #14
May 8
May 8
Note: The due dates shown above are submission dates. All assignments should
be completed before the topic is discussed in class.
Please keep a copy of everything you turn in to me.
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 4
Teaching Assistant Tracy Clough Spring 2013 Office Hours:
Tuesday: 5:30 – 7:30 p.m.
Wednesday: 5:30 – 7:30 p.m.
Location: Funger 601
Contact email: tclough@gwmail.gwu.edu
Facsimile: (202) 994-5164
Professor Singleton Office Hours:
Monday: 6:30 - 7:00 p.m. – Ballston Campus Room 102
Wednesday: 6:00 - 7:00 p.m. – Foggy Bottom Campus
Office Information:
Office location: Funger 601
Telephone: (202) 994-4987
Facsimile: (202) 994-5164
E-mail: lgs@gwu.edu
Web: singletonassociates.com
I will return your E-mail or voice message if you provide a telephone number
where I may call you back. A telephone number with voice mail/answering
machine is preferable.
Mailing address:
Department of Accountancy
GWU School of Business
Funger Hall, Suite 601
2201 G Street, NW
Washington, D.C. 20052
GW Emergency Number: 202-994-5050; Call this number in case of weather emergency to learn if the
university is open. If the university is officially open I plan to hold class unless
I am unable to get to campus.
Blackboard:
Blackboard is a web-based courseware application that allows me to post course
information for students and conduct course interactions online. We will use
Blackboard in this course. To log in to the Blackboard system go to
http://blackboard.gwu.edu . For instructions and help information about the use
of the system at GW go to http://cidd.gwu.edu/viewlets/students.html .
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 5
A Word About Homework It is practically impossible to learn accounting without working problems.
While we will discuss many topics in class this will be of little benefit to you
unless you come to class prepared by reading the assigned material and working
the homework assignments. When you work the assignments, be sure you
understand what you are doing and why it is done. Resist the temptation to
have the solutions open when you work the assignments. The solutions are
provided to make your study more efficient, but you should not refer to them
until after you have worked the problem.
You should work your homework in pencil on regular notebook paper - no
special accounting paper is needed. Alternatively, you may prepare your
homework using spreadsheet or word processing software, but this is not
required.
The publisher provides additional resources (including additional exercises)
online. The URL is also available in Blackboard.
http://websites.swlearning.com/cgiwadsworth/course_products_wp.pl?fid=M20b&product_isbn_issn=0324381980
&discipline_number=400
Topics and Assignments
A list of chapters and the question, exercise, problem, and case assignments for
each are provided later in this syllabus. These assignments are subject to
change. The topics listed under each chapter heading are not to be considered
an all-inclusive list of topics for which you are responsible. Rather, they give
examples of the topics covered in that chapter.
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 6
COURSE POLICIES
This list has been developed to inform you in writing of my course policies. By having these policies stated
in writing my expectations of you should be clearer than if they were simply stated orally. This should also
reduce the possibility of misunderstandings between us.
1.
ATTENDANCE - Class attendance is optional. However, poor attendance could result in a poor
course grade.
2.
TARDINESS AND LEAVING DURING CLASS - In consideration of your fellow students, please
arrive to class on time. Also, do not walk in or out of the classroom during the class period. If you
need to leave class early, please inform me in advance and sit near the door so as not to disturb others
in the class.
3.
MOBILE TELEPHONES AND BEEPERS – Please turn off your phones and beepers.
4.
RECORDING: The use of recorders and other similar devices is not permitted in this class. You do
not have permission to record our class sessions.
5.
ASSIGNMENTS - I expect you to complete the chapter assignments before class. This will better
prepare you for the classroom lectures and discussions, and should greatly enhance your understanding
of the material being presented.
You should come to class prepared to discuss the assigned materials for the current chapter. By
having the material prepared in advance it will be much easier for you to pinpoint and correct any
mistakes you may make.
6.
HOMEWORK GRADE - Homework assignments from the text will be collected throughout the
semester.
IMPORTANT: Please neatly prepare your homework for grading, and highlight in color the number of
each individual assignment for easy identification. A randomly selected subset of the homework
submitted will be examined for completeness. Homework will not be accepted late.
If you are unable to attend class when homework is due you may fax your homework to me.
Electronic submissions are not accepted.
7.
CLASS LECTURES - Class sessions will consist primarily of lectures and class discussions. You are
encouraged to ask questions during class.
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 7
8.
EXAMS - You are expected to be present to take the exams when they are given. It is possible that
the exact date of the exams may change, depending on how we move through the material. Makeup
exams are not given. Alternate arrangements may be available, however, but ONLY when there is an
appropriate excuse and when you have talked to me about your problem before the exam date.
Illness - You must notify me before the exam. If I am not in my office, leave a message, with a
phone number where you can be reached, in the departmental office (202-994-6825) and on my
voice mail (202-994-4987).
Personal or family emergency - Notify me in advance, if possible. Bring documentation to support
your absence.
Legal obligation (jury duty, court appearance, etc.) - Notify me in advance and bring documentation
to support your absence.
Automobile accident - Bring me a copy of the police report.
9.
EXTRA CREDIT - I do not allow students to do additional work to compensate for poor grades. I
believe that additional class assignments are unfair to the majority of students that are doing well in
the course.
10.
INCOMPLETE - An incomplete is assigned only when a personal circumstance prevents a student
from COMPLETING the course work. This implies that: (1) a substantial portion of the course work
is already completed, and (2) there is insufficient time for the student to complete the remaining work
before the end of the semester. Incompletes are not given to students who have poor grades in the
course.
11.
ACADEMIC DISHONESTY - I follow University policies for cases of academic dishonesty.
Accounting students should remember that the accounting profession is based on honesty and
integrity. I have no tolerance for academic dishonesty. Anyone who commits an act of academic
dishonesty in this course will receive a grade of F and a notation of Academic Dishonesty on their
university transcript.
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 8
Class
No.
1
2
Date
January 16
January 23
Chapter and Topic
Questions, Exercises,
Problems, and Cases
Introduction
1-Introduction Business Activities and Overview of
Financial Statements and the Reporting Process
Overview of Business Activities
Principal Financial Statements
Financial Reporting Process in the United States
22, 23, 26, 27, 33
2-The Basics of Record Keeping and Financial
Statement Preparation
Overview of the Accounting Process
Financial Statements: Balance Sheet, Income
Statement
Relationship between the Balance Sheet and
Income Statement
Generally Accepted Accounting Principles
(GAAP)
Generally Accepted Auditing Standards
(GAAS)
The Sarbanes-Oxley Act of 2002 and its effects
on the accounting profession
Ethics in accounting and auditing
27, 28, 29, 31, 32, 45
3-Balance Sheet: Presenting and Analyzing
Resources and Financing
Asset Recognition and Measurement
Liability Recognition and Measurement
Shareholders’ Equity
12, 14, 23, 24
Optional, but
recommended: 21, 24, 25,
28, 34
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 9
Class
No.
3
4
Date
January 30
February 6
Chapter and Topic
Questions, Exercises,
Problems, and Cases
3-Continued
4-Income Statement: Reporting the Results of
Operating Activities
Revenue Recognition and Measurement
Expense Recognition and Measurement
Comprehensive Income
Accrual Basis versus Cash Basis of Accounting
The Accounting Cycle
Ledger Accounts
Adjusting Entries
Trial Balance
Retained Earnings
Dividends
Closing Entries – See the End of Year
Procedures Handout
Accounting Process for Merchandising Firms
11, 13, 15, 17, 29, 34
5-Statement of Cash Flows: Reporting the Effects of
Operating, Investing, and Financing Activities
on Cash Flows
Direct vs. Indirect Method
Operating Activities
Investing Activities
Financing Activities
28, 29, 31
Optional, but
recommended: 12, 14, 16,
30, 35
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 10
Class
No.
5
Date
February 13
Chapter and Topic
6-Introduction to Financial Statement Analysis
Horizontal and Vertical Analysis
Ratio Analysis
Measures of Liquidity and Credit Risk
Measures of Profitability
Questions, Exercises,
Problems, and Cases
11, 12, 14
Optional: 13, 15
Financial Statement Analysis handout
Annual Reports
Apparel Treasures handout
7-Revenue Recognition, Receivables, and Advances
from Customers
Review and Application of Income Recognition
Principles
Income Recognition at the Time of Sale, Before
the Sale, and After the Sale
6
February 20
7-Continued
7
February 27
MIDTERM EXAMINATION (Chapters 1-7)
8
March 6
8-Working Capital
Current Assets and Current Liabilities
Accounting for Inventories
Periodic and Perpetual Inventory Systems
Cost of Goods Sold
Classifications on the Balance Sheet and Income
Statement
Measuring Inventory Cost
Application of Inventory Costing Methods
Lower of Cost or Market
Effects of Inventory Errors
Inventory Estimation
Inventory Management
March 11-15
Spring Break – No Class
13, 14, 15, 16, 21, 23, 40
Optional, but
recommended: 19, 20, 22,
24
13, 16, 21
Optional, but
recommended: 14, 22
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 11
Class
No.
Date
9
March 20
9-Long-Lived Tangible and Intangible Assets
Acquisitions of Plant Assets
Depreciation
Disposal of Plant and Equipment
Intangible Assets and Amortization
Capitalize a Cost versus Expensing It
Research and Development Costs
Software Development Costs
Natural Resources and Depletion
10
March 27
9-(continued)
Chapter and Topic
Appendix-Time Value of Cash Flows
Time Value of Money Concepts
Questions, Exercises,
Problems, and Cases
13, 14, 20, 21, 23, 24, 32
10, 11, 12, 13, 14, 15
Present Value Concepts Handout
11
12
April 3
April 10
10-Notes, Bonds, and Leases
Basic Concepts of Liabilities
Current Liabilities
Long-term Liabilities
Bonds Payable
Debt Amortization Schedules
Leases
16, 17, 18, 19, 25, 26, 28
Optional, but
recommended: 33
10-(continued)
11-Liabilities: Off-Balance Sheet Financing,
Retirement Benefits, and Income Taxes
Off Balance Sheet Financing
Operating and Capital Leases
Income Tax Accounting and Deferred Income
Taxes
Pensions and Other Post-retirement Benefits
19, 25
Optional, but
recommended: 20, 21, 37
MBAD 6211-80 / ACCY 6101-80
Spring 2013
Page 12
Class
No.
Date
13
April 17
14
April 24
May 8
1/24/13
Chapter and Topic
Questions, Exercises,
Problems, and Cases
11-(continued)
12-Marketable Securities and Derivatives
Types of Long-Term Investments
Accounting for Investments
Derivative Instruments
15, 17, 19
13-Intercorporate Investments in Common Stock
Passive and Active Minority Investments
Majority Investments
Consolidated Financial Statements
15, 17, 21, 28
14-Shareholders' Equity: Capital Contributions,
Distributions, and Earnings
Sole Proprietorships
Partnerships
Corporations
Accounting For Capital Contributions
Common and Preferred Stock
Cash, Property, and Stock Dividends
Stock Options and Warrants
Convertibles Securities
Treasury Stock
Retained Earnings
Prior Period Adjustments
Earnings Per Share
16, 23, 25, 28, 30
16-Synthesis of Financial Reporting
Conceptual Framework
Financial Reporting Standards
1, 2
COMPREHENSIVE FINAL EXAMINATION –
TENTATIVE DATE
Confirmed Date and Time To Be Announced
Optional, but
recommended: 16, 18, 20,
22
Optional, but
recommended: 16, 18, 29
Optional, but
recommended: 17, 20, 33