THE COLORADO COLLEGE

Department of Economics and Business

Larry Stimpert

Palmer 105

Extension 6418

LStimpert@ColoradoCollege.edu

Block 4

Fall, 2000

Accounting is the language of business, and this course will introduce you to the principles of financial accounting while helping you master the business vocabulary. We will focus on the operating, investing, and financing 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 addition, we will discuss the historical development of accounting, consider the evolutionary nature of this social science, and debate the quality of information produced by accounting systems. We’ll also spend a good deal of time developing your business modeling skills and working with accounting and spreadsheet software. 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 data

• the fundamentals of business modeling and accounting and spreadsheet software

Please understand that this course requires a great deal of time for most students. The class includes several learning components:

Morning class sessions. Morning class sessions are used for reviewing and discussing accounting concepts, principles, and other course topics and also for group presentations.

Afternoon lab sessions and assigned exercises and problems. To reinforce course concepts, you will complete homework exercises and problems during afternoon lab sessions that are staffed by students who have successfully completed the course. The accounting software that you will be using to complete many of the assigned exercises and problems will be available on the laptop computer you will be given and in the Economics and Business Department computer lab. Assigned exercises and problems will not be "graded," but you must satisfactorily complete assigned exercises and problems prior to the next day’s lab session. A tentative schedule of class and lab sessions and a list of assignments, is included with this syllabus.

Case and company analyses and class presentations. To further reinforce course concepts, you will be divided into groups and asked to complete three case analyses. In addition, your group will also be asked to make a class presentation based on one of its case analyses.

Examinations. Two examinations will evaluate your understanding of course concepts.

Our text is Financial Accounting (7^th ed.) by Skousen et al, available for purchase at the college bookstore. Three Harvard Business School cases and a number of additional articles will be distributed in class. You will 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. Free copies of these newspapers are available in Loomis and Slocum Halls.

At a recent meeting, the faculty approved a statement clarifying the meaning of grades. That statement noted that grades of "A" are reserved for "excellent work that reflects superior understanding and insight, creativity, or skill; grades of "B" are assigned to "good work that reflects a high level of understanding and insight, creativity, or skill; grades of "C" are assigned to "adequate work that indicates readiness to continue study in the field; and grades of "D" are assigned to "marginal work, only minimally adequate, indicating lack of readiness to continue in the field."

Grades for this course are determined on the basis of objective and subjective factors. The objective factors include two examinations at 100 points each and three case analyses and one presentation at 25 points each. You will also receive two additional points for each accounting-related newspaper or magazine article you bring to class (up to a total of ten points, and no more than two articles per student per week). My subjective evaluation of your performance will also have an important influence on your final grade. Failure to attend class or complete assigned exercises and problems, 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 analyses and the examinations – the completed analyses should reflect the group’s own efforts and the examinations should be taken without the aid of the textbook, notes, or consultation.

Assistance, Office Hours, and Appointments

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 any day’s concepts or topics. As noted above, the afternoon lab sessions will be staffed by students who have successfully completed the course, 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.