Class Syllabus

1.  9/10  Introduction and the Balance Sheet

  • Function and objectives of accounting
  • Overview of income statement, cash flow statement, and balance sheet
  • Balance sheet equation
  • Balance sheet accounts
  • Recognizing assets, liabilities, and owners’ equity

Read: chapter 1, 2

 

2.  9/17  The Accounting Process

  • More on the balance sheet
  • Recognizing revenues and expenses
  • Journal entries: debit and credit notation
  • Income statement accounts
  • Trial balances
  • Adjusting entries
  • Income statement and balance sheet preparation

Read:  chapter 3   

      

3.  9/24  Income Statement    

  • More on accruals
  • Accrual versus cash accounting
  • Revenue and expense adjustments
  • Analyzing the income statement

Read:  chapter 3 (review)

 

4.  10/1  Cash Flow Statement

  • Defining cash 
  • Statement of cash flows
  • Analysis of cash flow

Read: chapter 4

 

5.  10/8  Receivables and Revenue Recognition

  • Revenue recognition
  • Accounts receivable bad debts, and allowances
  • Income recognition at times different from sale
  • Gains and losses
  • Recurring versus nonrecurring

Read:  chapter 6

 

6.  10/15 Inventories

  • Costs included in purchased inventory
  • Costs included in manufactured inventory
  • Cost basis for inventory
  • Periodic and perpetual inventory systems
  • Cost flow assumptions
  • Tax consequences of cost flow assumptions
  • Holding gains and losses

Read: chapter 7

 

7.  10/22 Plant, Equipment, and Intangible Assets

  • Basis of long-term assets
  • Concept of depreciation
  • Methods of computing depreciation
  • Repairs and improvements
  • Dispositions
  • Impairment of assets
  • Depletion
  • Intangibles and amortization
  • Research and Development
  • Tax consequences

Read:  chapter 8

 

10/29 MID-TERM EXAMINATION

 

11/5 NO CLASS VACATION

 

11/7 MID-TERM REVIEW

 

8.  11/12 Time value of money

  • Present and future values
  • Perpetuities
  • Annuities
  • Bonds prices and yields
  • Interest rate risk

Read:  Appendix, handout

 

9.  11/19 Liabilities

  • Definition of liabilities
  • Short-term liabilities                       
  • Contingent liabilities                            
  • Long-term notes
  • Mortgage bonds
  • Imputing interest

Read:  chapter 9 

                                 

10. 11/26  Liabilities (continued)and Investments

  • Capital Market
  • Off-balance sheet financing
  • Leases
  • Income taxes and deferred taxes
  • Valuation of securities
  • Classification of securities
  • Passive and active investments

Read:  chapter 10 and chapter 11

 

11. 12/3 Owners' Equity

  • Shareholders' equity
  • Retained earnings and dividends
  • Employee stock options
  • Earnings per share
  • Treasury shares
  • Reporting of earnings

Read: Chapter 12

 

12. 12/10 Advanced Cash Flow, Financial Statement Analysis, and

  • Accounting and Financial Markets
  • More on the statement of cash flows
  • More on analyzing cash flow
  • Measures of profitability
  • Measures of liquidity
  • Debt structure and risk
  • Information, decision making, and financial markets

Read:  chapter 13 and chapter 5


YOU ARE STRONGLY URGED TO READ ALL ASSIGNED READINGS IN ADVANCE OF CLASS.