Stevens Institute of Technology
Howe School of Technology Management
Syllabus
BT 200
Financial Accounting
Spring 2015
Desi Arisandi
Babbio Building
Tel: 201-702-0405
Desi.arisandi@stevens.edu
Monday 03.00-03.50PM P120
Thursday 11.00-12.40PM P120
Office Hours:
Monday 4:00 pm
Also by appointment
Course & Web Address:
BT200
https://sit.instructure.com/courses/1210
Overview
This course covers the principles of financial accounting. It is focuses on the use
of accounting data by individuals to enhance decision-making. It is designed to
enable you to understand and be conversant in basic accounting language
Topics covered include the accounting cycle, and the major financial statements.
Reporting for assets, liabilities and equity accounts using generally accepted
accounting principles will be also explored.
Prerequisites: None.
Learning Goals
After successfully completing this course, the student will be able to:
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Analyze and record transactions
Identify adjustments necessary for accrual financial statements
Account for receivables and inventory
Account for long-term assets and liabilities
Account for stock transactions and retained earnings
Prepare and analyze balance sheets, income statements and cash flow
statements
Pedagogy
The course will employ lectures, class discussion, in-class individual assignments, and
review of homework assignments. There will be three exams and quizzes (there are no
makeups for missed quizzes). The third exam will be a comprehensive final.
Required Text(s)
Horngren’s Accounting, 10th edition,Ch 1- 16, Nobles, Mattison and Matsumura, 2014
and MyAccounting Lab.
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(Student can select e-book version of this book via MyAccounting Lab)
MyAccounting Lab
MyAccountingLab is a supplemental resource for students. Selected homework
assignments are to be submitted through MyAccountingLab. It is web-based tutorial
software. The software makes submitting homework easy. You get immediate feedback
and assistance in completing the assignments as well.
To register MyAccountingLab please follow the instructions on the registration guideline
(Files-Canvas). Use the following course code to begin registration: arisandi52103. If you
purchased the text at the bookstore, an access code to MyAccountingLab is included with
the text. The access code can be purchased separately when you go the above web site).
Assignments
The course will emphasize class discussion and the analysis of the assigned readings.
Your first and most important assignment is to come to class prepared to discuss the
readings and cases each week. All assignments must be submitted to the MyAccounting
Lab. All assignments are due as noted in the course schedule below. In fairness to others,
late work will be penalized 10% per week overdue.
HOMEWORK (Individual)
To help reinforce the material covered in the lectures, short answer take-home tests will
be given during the course. These will be based on the lecture material and should take
approximately one or two hours to complete. The dateline of the homework is before the
Monday class started. Timely submission is important to reinforce what is learned in
class and to minimize falling behind. There will be multiple-choice or short answer
questions for the homework (MyAccounting Lab).
QUIZZES (Individual)
There will be eight in-class quizzes for this class. Each quiz will be covering one chapter
material. The schedule of these Quizzes is listed on the following schedule.
CLASS PARTICIPATION
To enhance the learning experience, all students are expected to participate in class
discussion and the in-class team exercises. Attendance in class sessions is an important
component of this grade.
The assignments and their weights are as follows:
Homework assignments, in-class participation and attendance
15%
Quizzes
15%
Exam 1
20%
Exam 2
20%
Final Exam
30%
Ethical Conduct
The following statement is printed in the Stevens Graduate Catalog and applies to all students
taking Stevens courses, on and off campus.
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“Cheating during in-class tests or take-home examinations or homework is, of course, illegal and
immoral. A Graduate Academic Evaluation Board exists to investigate academic improprieties,
conduct hearings, and determine any necessary actions. The term ‘academic impropriety’ is
meant to include, but is not limited to, cheating on homework, during in-class or take home
examinations and plagiarism.“
Consequences of academic impropriety are severe, ranging from receiving an “F” in a course, to a
warning from the Dean of the Graduate School, which becomes a part of the permanent student
record, to expulsion.
Reference:
The Graduate Student Handbook, Academic Year 2003-2004 Stevens
Institute of Technology, page 10.
Consistent with the above statements, all homework exercises, tests and exams that are
designated as individual assignments MUST contain the following signed statement before they
can be accepted for grading.
____________________________________________________________________
I pledge on my honor that I have not given or received any unauthorized assistance on this
assignment/examination. I further pledge that I have not copied any material from a book, article,
the Internet or any other source except where I have expressly cited the source.
Signature _________________________
Date: _____________
Please note that assignments in this class may be submitted to www.turnitin.com, a web-based
anti-plagiarism system, for an evaluation of their originality.
Course/Teacher Evaluation
Continuous improvement can only occur with feedback based on comprehensive and appropriate
surveys. Your feedback is an important contributor to decisions to modify course
content/pedagogy, which is why we strive for 100% class participation in the survey.
All course teacher evaluations are conducted on-line. You will receive an e-mail one week prior
to the end of the course informing you that the survey site (https://www.stevens.edu/assess) is
open along with instructions for accessing the site. Login using your campus username and
password. All responses are strictly anonymous. We especially encourage you to clarify your
position on any of the questions and give explicit feedbacks on your overall evaluations in the
section at the end of the formal survey, which allows for written comments. We ask that you
submit your survey prior to the close of the examination period.
COURSE SCHEDULE
1. Accounting and the Business Environment: Thursday January 22, 2015 and
Monday January 26, 2015
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The chapter begins with an introduction to accounting, and a brief description on why
accounting is important. The differences between financial and managerial accounting
are discussed. Various financial report users, such as individuals, businesses, investors,
creditors, government regulatory agencies, and taxing authorities are explained. The
accounting profession and career paths available to accounting majors are briefly
described.
Book: Horngren’s Accounting, 10th edition,Ch 1, Nobles, Mattison and Matsumura
2. Recording Business Transactions: Thursday January 29, 2015 and Monday
February 2, 2015
Introduces the account and the ledger, and then briefly describes specific asset, liability,
and owner's equity accounts. The concept of double-entry bookkeeping and the rules of
debit and credit for assets, liabilities, and owner's equity are described. The rules of debit
and credit are then expanded to include specific types of owner’s equity accounts, and
then expanded again to include revenues and expense accounts. The “T-account” is
illustrated. The normal balances of accounts are explained. The accounting equation is
tied to the rules of debit and credit.
Book: Horngren’s Accounting, 10th edition,Ch 2, Nobles, Mattison and Matsumura
3. The Adjusting Process: Thursday, February 5, 2015 and Monday, February 9,
2015.
Introduces the student to the adjusting process. Cash and accrual accounting are
illustrated and differentiated. The time period concept, the revenue recognition principle,
and the matching principle are explained. Adjusting entries are defined. Prepaid and
accruals are compared.
Book: Horngren’s Accounting, 10th edition,Ch 3, Nobles, Mattison and Matsumura
4. Completing the Accounting Cycle: Thursday, February 12, 2015 and Tuesday,
February 17, 2015
A review of the financial statements and the relationship between the statements is
emphasized. The classified balance sheet is explained, and assets and liabilities are
classified as current or long-term. Assets are listed based on liquidity. Liabilities are
listed in the order in which they must be paid. The report format and the account format
of the balance sheet are illustrated.
Book: Horngren’s Accounting, 10th edition,Ch 4, Nobles, Mattison and Matsumura
5. Exam 1
6. Merchandising Operations: Thursday, February 26, 2015 and Monday, March 2,
2015
Compares a service business with a merchandising business, and then discusses how to
complete the accounting cycle for a merchandising company. Explains how a service
entity’s financial statements differ from a merchandiser’s financial statements. Following
an illustration of the financial statements of a service company and a merchandising
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company, both the periodic and perpetual inventory systems are defined; however, only
the perpetual inventory system is emphasized in the chapter.
Book: Horngren’s Accounting, 10th edition,Ch 5, Nobles, Mattison and Matsumura
7. Merchandise Inventory: Thursday, March 5, 2015 and Monday, March 9, 2015
Examines the accounting for merchandise inventory. The accounting principles and
concepts that affect merchandise inventory—the consistency principle, the disclosure
principle, the materiality concept, and accounting conservatism are explained. Controls
over merchandise inventory are discussed. Accounting for merchandise inventory costs
under a perpetual inventory system is described. Four different costing methods—
specific identification, first-in, first-out (FIFO), last-in, first-out (LIFO), and weightedaverage, are explained.
Book: Horngren’s Accounting, 10th edition,Ch 6, Nobles, Mattison and Matsumura
8. Internal Control and Cash: Thursday, March 12, 2015 and Monday, March 23,
2015
Discusses the purposes and characteristics of an effective system of internal control. The
text describes four objectives that a company hopes to achieve with a good system of
internal control. The five components of internal control are identified, including control
procedures, risk assessment, information system, monitoring of controls, and
environment. Basic characteristics of an effective system of internal control are listed,
including competent, reliable, and ethical personnel; assignment of responsibilities;
separation of duties; internal and external audits; documents; electronic devices; and
other controls.
Book: Horngren’s Accounting, 10th edition,Ch 8, Nobles, Mattison and Matsumura
9. Receivables: Friday, March 27, 2015 and Monday, March 30, 2015
Overview of various types of receivables—both accounts receivable and notes receivable.
Internal controls over receivables, the duties of the credit department, recording sales on
credit, and recording credit and debit card sales are presented. Two methods for recording
uncollectible accounts are discussed: first the direct write-off method and, later in the
chapter, the allowance method.
Book: Horngren’s Accounting, 10th edition,Ch 9, Nobles, Mattison and Matsumura
10. Plant Assets, Natural Resources, and Intangibles: Thursday, April 2, 2015 and
Monday, April 6, 2015
Explaining plant assets, the different categories of plant assets, and deprecation. Students
learn how to determine the cost of various plant assets. The relative-market-value method
is used for a lump-sum purchase. Capital and revenue expenditures are explained.
Book: Horngren’s Accounting, 10th edition,Ch 10, Nobles, Mattison and Matsumura
11. Exam 2
12. Corporations: Thursday, April 16, 2015 and Monday, April 20, 2015
Introduces the student to the corporation, the dominant form of business organization in
our country. The characteristics of the corporation, a brief description of how a
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corporation is organized, and the definition of capital stock are presented. The two
components of stockholders’ equity, paid-in capital and retained earnings are discussed.
Book: Horngren’s Accounting, 10th edition,Ch 13, Nobles, Mattison and Matsumura
13. Long-Term Liabilities: Thursday, April 23, 2015 and Monday, April 27, 2015
Introduces the student to long-term liabilities, particularly bonds payable, as a way to
finance operations. General background information is given as to bond terminology,
types of bonds, interest rates, and bond quotations. The concept of how bond prices are
related to present value is briefly explained. Entries are illustrated for issuing bonds at
par, paying semi-annual interest, and paying bonds at maturity. Next, students learn about
bonds issued at a discount. Straight-line amortization of the discount is presented.
Book: Horngren’s Accounting, 10th edition,Ch 14, Nobles, Mattison and Matsumura
14. The Statement of Cash Flows: Thursday, April 30, 2015 and Monday, May 4,
2015
A discussion of the basic concepts and purposes of the Statement of Cash Flows.
Operating, investing, and financing activities are defined. A brief comparison of the
direct and indirect method for preparing cash flows from operating activities is given.
The Statement of Cash Flows using the indirect method is explained. A five-step process
is outlined.
Book: Horngren’s Accounting, 10th edition,Ch 16, Nobles, Mattison and Matsumura
15. Exam 3
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