Accounting is the language of business and this course will introduce you to the principles of financial accounting and the fundamentals of financial management while providing you with opportunities to develop your mastery of the business vocabulary. We will focus on the operating, investing, and financial activities that give rise to accounting and financial data, how these data are reflected in financial statements, and how accounting and financial data are used to make resource allocation decisions in business firms and other organizations. Upon completing this course, you should know and understand:

• the major operating, investing, and financing activities of business firms
• how accounting data are accumulated and then reflected in financial statements
• the key interrelationships among the various financial statements
• how to analyze and interpret financial statements
• the strengths as well as the limitations of accounting and financial data

 

    This course is organized around the major business (operating, investing, and financing) activities of firms. We will study accounting concepts and principles by exposing you to hypothetical and real-world business examples, by asking you to complete a number of case studies and classroom presentations, and by introducing you to current spreadsheet software programs. We will also spend some time discussing the historical development of accounting, considering the evolutionary nature of this social science, and debating the quality of information produced by accounting systems. This course will include several learning components:

Morning class sessions

    Morning class sessions will be used for reviewing and discussing accounting concepts and course topics and for group case presentations.

Afternoon lab sessions and assigned exercises and problems

    To reinforce course concepts, you will be asked to complete a number of homework exercises, problems, and projects nearly every day. To assist you with any difficulties you may encounter as you complete assigned exercises and problems, the class includes afternoon lab sessions staffed by two or three students who have successfully completed the course in prior blocks. Assignments will not be "graded," but you must nevertheless satisfactorily complete all assignments prior to each examination. A tentative schedule of class and lab sessions, including a list of assigned exercises and problems, is included with this syllabus.

Case analyses and class presentations

    To further reinforce course concepts, you will be divided into case groups during the first week of class and asked to complete three case analyses. Your group will also be asked to make at least one class presentation.

Examinations

    To test your understanding of accounting principles and course concepts, the course will include two examinations.

    Our text is Financial Accounting (7^th ed.) by Skousen et al, available for purchase at the college bookstore. Three Harvard Business School cases will serve as the basis for class discussion, group case analyses, and class presentations. These cases will be distributed in class as will a number of additional articles and other reading materials. You are likely to find a calculator helpful if not essential. You are also encouraged to read The Wall Street Journal or the business section of The New York Times every day to complement class discussions and help you develop your business vocabulary.

Final grades are determined on the basis of three factors:

Examination Performance                                        200 possible points

    (Two exams @ 100 points each)

Case Analyses and presentation                               200 possible points

    (Three cases and one presentation

      @ 50 points each)                                            ________________

                Total                                                        400 possible points

    In addition to points awarded to examinations and case analyses, please note that my subjective evaluation of your performance will also have an important influence on your final grade. Failure to attend class, poor preparation for class, or lack of engagement can lower your final grade by one or more letter grades.

    You are encouraged to work together and teach each other when completing assigned exercises and problems. You are also encouraged to consult with each other about the group case analyses. The college’s honor code applies, however, to the completed case studies and the examinations – the completed case analyses should reflect the group’s own efforts and the examinations should be taken without the aid of the textbook, notes, or consultation.

    The class covers a great deal of material and the concepts rapidly build on themselves so that problems of comprehension on one day will be greatly compounded on subsequent days. Please seek assistance immediately whenever you are unsure about that day’s concepts or topics. As noted above, the afternoon lab sessions will be staffed by two or three students who have successfully completed the course in prior blocks, and you are encouraged to ask them for assistance during the lab sessions. In addition, I will be available to meet with you in my office, Palmer 105, nearly every afternoon. I will also be happy to schedule appointments at other mutually convenient times. My office telephone number is 389-6418 and you are also invited to contact me via email.