MERAGE SCHOOL OF BUSINESS UNIVERSITY OF CALIFORNIA, IRVINE COURSE SYLLABUS INTRODUCTION TO FINANCIAL ACCOUNTING- MGMT 30A WINTER QUARTER

2011
Patricia Wellmeyer, CPA, MS MPAA 142 (949) 824-8467 [email protected] T TH 12:30-1:50pm 2:00-3:20pm 6:30-7:20pm

INSTRUCTOR: OFFICE: PHONE: EMAIL: CLASS TIMES:

DISCUSSION SESSIONS: T TH OFFICE HOURS

Professor Wellmeyer: T TH 11:30-12:30pm TA- Novia Chen T 5:30- 6:30pm, Office SB 320 TA- Qin Li TH 5:30- 6:30pm, Office- SB 335
COURSE DESCRIPTION A course in beginning accounting providing a foundation for professional accounting or other areas of business administration. The course describes and illustrates financial accounting concepts and techniques essential to the administration of a business enterprise including analyzing and recording financial transactions; accounting valuation and practices; preparation, analysis and interpretation of financial statements and international accounting issues. COURSE MATERIALS Required Textbook: Weygandt, Kimmel, Kieso: Financial Accounting 7th Edition WileyPLUS code (I have arranged for the publisher to sell the text plus WileyPLUS code for the cost of the book alone at the University Bookstore so this will be your most cost efficient option for buying the book) Stanko, Zeller, Introduction to the Corporate Annual Report: A Business Application, John Wiley & Sons, 2004.

Optional (reference):

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COURSE OBJECTIVES: Upon completion of this course, the student will be able to: 1. Identify the basic concepts and principles of accounting, including accounting for both service enterprises and merchandise enterprises. 2. Describe the principles of a property designed accounting system, including the principles of internal control and the use of special journals and subsidiary ledgers. 3. Illustrate the use of a bank account for controlling cash, including the preparation of a bank reconciliation. 4. Describe the basic principles of receivables and temporary investments, inventories, plant assets and intangible assets, payroll, notes payable and other current liabilities. 5. Explain the basic characteristics of corporate organizations and operation that have account implications. 6. Understand the importance of ethical decision making in a business environment. 7. Understand global issues as they related to U.S. business decision making. 8. Understand the impact of political, social, legal, regulatory and environmental issues on the accounting profession as well as the business environment. 9. Understand the richness that diversity can bring to an organization as well as the cultural implications of doing business in a diverse environment. The contents and structure of this course are designed to enhance a students personal competencies including professional demeanor, problem solving and decision making; broad business perspective competencies including strategic/critical thinking, industry, legal, and international/global perspective; and functional competencies including decision modeling, risk analysis, measurement, and research and reporting. INSTRUCTIONAL APPROACH Topics will be introduced in lecture format. Class time is flexible and will be divided between lecture, working problems, answering questions, and group work. GRADING SYSTEM/POLICY: The following point breakdown is flexible and subject to modification at instructor discretion: Quizzes (approx. 10-12) Comprehensive Final Exam Homework (approx. 14) Class and Discussion Participation/ iClicker Group Project (80pts) and Peer Evaluation (20pts) 150 points 150 140 30 100 570 points

Total percentage points earned will determine the letter grade: A=90%-100% B=80%-89% C=70%-79% D=60%-69% F= 59% and below
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The final grades will be curved based on overall class performance. +/- grading will be used on final grades at professors discretion. Cut-off percentages for +/- grading will be determined by the instructor at the time the final grade curve is determined. NOTE: Any challenges by students regarding graded work must be submitted in writing (properly documenting the reasons you believe the grade is incorrect and providing proof, as appropriate) to the professor within one weeks time of receiving the graded assignment back from the professor. Any challenges brought to the professors attention past that time will not be considered. QUIZZES AND EXAMS The quizzes and exams will consist of multiple choice, and/or short answer problems/questions; the format will depend on the nature of materials covered. Please note that exam/quiz questions will cover theoretical as well as mathematical concepts of accounting. NOTE: Quizzes will be given at the completion of every one to two chapter interval throughout the course. As we may not always complete chapters according to the timeline set forth in the attached assignment schedule, QUIZ DATES WILL BE ANNOUNCED IN CLASS! This means YOU must keep abreast of announcements made in class even if you do not attend the class meeting(s) when the quiz announcements are made. Make-up quizzes will only be given for well-documented emergency situations. The comprehensive final examination is a required part of the course. Failure to take the exam on the date indicated on the attached class schedule will result in an automatic F in the course. CLASS/DISCUSSION SESSION PARTICIPATION Attendance is not required for class or discussion sessions. However, it is essential that students attend both class and discussion sessions on a regular basis and complete all assigned reading, exercises, and problems prior to each session. Doing so will reinforce accounting concepts and allow for more productive class discussions and teamwork. Class time is structured under the assumption that students have completed all readings and assignments prior to the beginning of class. Only under this assumption will class time be utilized efficiently and effectively. To encourage your participation, I am giving you the opportunity to earn 20 points towards your total grade; you can earn these points in the following two ways: (1) By successfully asking and answering questions posed to/by the instructor, participating in group assignments, and doing exercises and problems in class. (2) By regularly attending discussion sessions. Your attendance/participation throughout the quarter will be captured via iClicker participation in class and by your TAs whom have been instructed to take attendance every week at each discussion session held throughout the quarter. GROUP PARTICIPATION You will be divided into groups of five to six students each sometime during the first two weeks of class. Each group will select a company annual report and present a written analysis of their chosen companys financial position through financial statement review and analysis of company risk factors, etc. The written report should be double-spaced, between 6-8 pages, and must be typed or word-processed. A list of questions as well as other instructions is provided to you in a sheet attached to this syllabus to guide you as to what should be included in the content and structure of your papers. The written report you turn in will be graded based on content, layout, and grammar/spelling (so use spell check!). The assignment is due on the day indicated on the assignment schedule.
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HOMEWORK Homework will be collected for every chapter we cover this quarter. You will be using the textbooks interactive homework/ tutorial software called WileyPlus to complete each assignment. You will be given detailed information/instructions on the benefits and use of WileyPlus in class and at your first discussion session, so please make sure you attend both. Homework will be assigned and due dates announced in class and posted on EEE and on WileyPlus. Please note that late homework will not be accepted this quarter except in the case of a reasonable documented emergency. As such, although you can complete and receive feedback on your homework assignments at any point during the quarter, WileyPlus will only give you credit for those assignments turned in on or before their respective due dates. As you can see on the attached assignment schedule, I have given you a homework set for each chapter, consisting of brief exercises, exercises, and problems. As you will quickly learn, accounting is very much an applied science and mastery of it will require your determined effort to practice its concepts. It is imperative, thus, that you attempt all exercises/problems each week in preparation for class and quizzes/final exam. I realize the number of exercises/problems may seem like much at times, but I guarantee that if you make the effort to complete and understand the assignments each week, you will see the fruits of your labor and be highly rewarded when quiz/final exam times roll around! Each homework set will be worth between 10-15 points, with the exact allocation per exercise/problem within each set to be reflected on WileyPlus. Partial credit will be given for partially completed homework sets, however, as stated above, no points will be given for exercises/problems completed after the due date. ACADEMIC INTEGRITY/DISHONESTY Academic dishonesty includes such things as cheating, inventing false information or citations, plagiarism, and helping someone else commit an act of academic dishonesty. It usually involves an attempt by a student to show a possession of a level of knowledge or skill, which he/she in fact does not possess. Cheating is defined as the act of obtaining or attempting to obtain credit for work by the use of any dishonest, deceptive, fraudulent, or unauthorized means. Examples of cheating include, but are not limited to, the following: using notes or aides or the help of other students on tests and examinations in ways other than those expressly permitted by the instructor, plagiarism as defined below, tampering with the grading procedures, copying verbatim another students assignments, and collaborating with others on any assignment where such collaboration is expressly forbidden by an instructor. Violation of this prohibition of collaboration shall be deemed an offense for the person or persons collaborating on the work, in addition to the person submitting the work. Plagiarism is defined as the act of taking the specific substance of another and offering it as ones own without giving credit to the source. When sources are used, acknowledgement of the original author or source must be made following standard scholarly practice.

Students who violate university standards of academic integrity are subject to disciplinary sanctions, including failure in the course and suspension from the university. Since dishonesty in any form harms the individual, other students and the university, policies on academic integrity are strictly enforced. Academic dishonesty, in any form, when detected, will result in zero points on assignments or tests, and may results in an F for the course plus additional University-level disciplinary action by judicial affairs. For additional information refer to the University policy in the most current University catalogue.

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DROPS, WITHDRAWALS, AND INCOMPLETES The University policy on drops will be followed. See the University Catalog for relevant procedures and dates. A grade of I is appropriate only if circumstances beyond a students control force the student to miss a significant portion of the latter part of a course. SPECIAL NEEDS During the first week of classes, inform the instructor of any disabilities or special needs that you have that may require special arrangements related to attending class sessions, carrying out writing assignments or learning components, or taking examinations. Students with disabilities need to document the disability at the Disabled Students Services office.

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NOTE: The following schedule is dynamic and may change based on the instructors perception of student comprehension and the pace of the class. STUDENTS ARE RESPONSIBLE FOR ANY CHANGES TO THE SCHEDULE. QUIZ DATES AND CHANGES WILL BE ANNOUNCED IN CLASS. WK/ SESSION 1 DATE Jan 3Jan 7 CLASS TOPIC/ CHAPTER* Introduction/ Chapter 1 and 2 ASSIGNMENTS Chapter 1: BE: 3, 5, 8, 11 E: 4, 7, 8 P: 1-2A Chapter 2: BE: 1 E: 1, 2, 3, 11, 13, 15 P: 2-1A Chapter 3: BE: 2 E: 1, 4, 7, 13 P: 3-2A Chapter 4: BE: 8, 11 E: 10, 11, 14, 17 Chapter 14: BE: 2, 7, 8, 11, 12 Do it!: 14-4 E: 1, 2, 5, 9 P: 14-5 5 Jan 31Feb 4 Chapter 5and Chapter 6 COMPANY SELECTION DUE Chapter 5: BE: 1, 5, 10 Do it!: 5-4 E: 1, 2, 8, 10 P: 5-2A Chapter 6: BE: 1, 2, 3, 5, 7 E: 1, 4, 8, 14 6 Feb 7Feb 11 Chapter 7/ Chapter 8 Chapter 7: BE: 2, 4, 8, 11 E: 6, 11, 14 P: 7-1A Chapter 8: BE: 1, 4, 6, 7, 10 E: 4, 5, 7 P: 8-5A

Jan 10Jan 14

Chapter 2/ Chapter 3

Jan 17Jan 21

Chapter 3 and Chapter 4

Jan 24Jan 28

Chapter 14/ Chapter 5

Feb 14Feb 18

Chapter 8/ Chapter 9

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NOTE: The following schedule is dynamic and may change based on the instructors perception of student comprehension and the pace of the class. STUDENTS ARE RESPONSIBLE FOR ANY CHANGES TO THE SCHEDULE. QUIZ DATES AND CHANGES WILL BE ANNOUNCED IN CLASS. WK/ SESSION 8 DATE Feb 21Feb 25 Feb 28Mar 4 CLASS TOPIC/ CHAPTER* Chapter 9/ Chapter 10 Chapter 10/ Chapter 11 ASSIGNMENTS Chapter 9: E: 1, 4, 6, 9, 10, 13 P: 9-7A Chapter 10: BE: 1, 3, 4, 5, 7 E: 2, 8, 12, 15 P: 10-3A Chapter 11: BE: 2, 6, 7, 9 E: 11, 17, 20 10 Mar 7Mar 11 Chapter 12/ Chapter 13 GROUP WRITTEN REPORTS DUE Chapter 12: E: 1, 4, 7, 9, 10, 12 Chapter 13: BE: 3, 4, 5, 6, 7 E: 1, 2 11 Final Exam Section A- Friday, Mar 18 10:30-12:30 Section B- Thursday, Mar 17 1:30-3:30

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INSTRUCTIONS FOR GROUP WRITTEN REPORT As noted in the syllabus, this course will require your group to complete a written report of between 6-8 doublespaced pages consisting of a well structured, concise financial statement analysis. In meeting this requirement, each group will select a public company (sells stock on a national exchange and financial statements are audited) and obtain the companys latest annual report (10K). Annual reports can be obtained from many sources. The simplest way to get an annual report is to simply go to your companys website (in most cases financial reports will be found under a link titled Investor Relations). You can also obtain annual reports from many of the databases available at the library (Value Line, Dow Jones, etc.) or, in some cases, off of the SECs online filing sitewww.edgar.com . Note: Your analysis must be based on a companys year-end annual report (12 months); analysis of quarterly reports (10Q) will not be accepted for credit. Regardless of how you obtain your copy of your selected companys annual report, you will need to call or e-mail the investor relations department at the company and request a hard copy of the annual report be sent to you (allow at least 4 weeks from the day you request it). The hard copy you obtain will be what you will turn in to the professor as part of your final written report. Your reports, based on the information obtained from your companys annual report, should include the following: 1. A brief description of the company including the industry in which it operates, line of business, main products and competitors, major subsidiaries, fiscal year-end date, and any other general company information you feel is pertinent to your analysis (no more than half a page). 2. Risk factors that could make the company prone to financial statement misstatements. (i.e. nature of industry, effects of political/economic environment on company, internal company restructurings or shifts in management, long credit terms provided to customers, low inventory/accounts receivable turnovers, lack of internal controls, large fluctuations in accounts, etc. ) 3. Description of types of financial statements provided (i.e. classified/non-classified balance sheet, multistep/single format income statement, direct or indirect cash flow statement, statement of retained earnings/stockholders equity) and any line items (accounts) on the financial statements themselves that appear unusual to you. You must describe the unusual items in your report based on information provided in the notes to the financial statements. If no description is given as to what the account consists of, you must state that in your report and explain what you perceive the unusual item represents. 4. Comparative ratio analysis of the companys profitability, liquidity, solvency (and any other ratio analysis you wish to perform). This section should be the longest and most evolved section of the paper. To perform a comparative analysis you will need to choose one of your companys major competitors and compare the results of your companys ratios to the results of its competitors ratios and to the overall average ratios for the industry in which your company operates. You must present the calculations for at least 2 ratios in each performance category for your selected company. You can obtain competitor and

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industry ratios through many internet web-sites, including bizstats.com, reuters.com, and biz.yahoo.com/i or through many of the financial databases available at the library. Note: You may not find industry equivalent ratios for all the ratios you calculate for your company; do your best in finding as many as you can to supplement your analysis. You must, however, calculate all equivalent ratios for your competitor company (as these you can calculate yourself off of the competitors financial statements). Your ratio calculations, along with the comparative competitor and industry ratios, should be presented in an appendix to the paper. 5. Brief analysis of the companys cash position. An analysis of the companys cash position will require that you discuss where the company is obtaining its cash and how it is using it (Hint: review of the statement of cash flows). Based on an analysis of the companys inflows and outflows of cash, describe (and support) your perception of the companys cash position/management. 6. Conclusion as to your opinion of the companys financial position as of the date of the annual report based on the results you obtained in 1-5 above. Would you purchase shares of the companys stock, why or why not? If more than one type of stock is issued by the company, which kind would you purchase and why? Your paper should be in report format. In other words, I do not want to see papers that consist simply of the subsections that list the items above and answers to each. Your paper should flow (i.e. it should include an introduction, body, and conclusion). Pay attention to good paragraphing and use of topic sentences. Use short rather than long, involved sentences and paragraphs, make each paragraph advance the exposition a step further than the preceding paragraph, and use transitional words or sentences. Do not simply restate sentences found in the annual report. I want to read your analysis of the company, not managements! Your written reports should be submitted in a report folder (of your choosing). Your reports should include the following: a title page that lists your class time and all group members names, your written analysis (6-8 pages), an appendix illustrating ratio calculations/comparisons, and the published copy of your chosen companys annual report. Each member of your group will also need to submit via email to your TA, a peer evaluation in which you will state each members participation (or lack of) in the completion of the project. You will be provided the peer evaluation form as we get closer to the end of the quarter.

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