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  • 1. San Jose State University – Lucas Graduate School of Business Business 220: Accounting Principles Spring 2008 1. Course Information: [Subject to change with fair notice] Instructor: Richard D. (Rick) Steingart Department: Accounting, College of Business, San Jose State University. Course Title: Accounting Principles Course Code: Bus 220 Class Hours & Location: M 6-10 PM Selected Saturdays – Rose Orchard Campus Room 5 Office Hours: TBD by appointment Office Location: BT954 on campus location; Off campus TBD E-mail: Steingart_r@cob.sjsu.edu until Web CT email is set up for class Preferred Contact: (email or Phone) Email; Web CT Course Description – (from catalog) BUSINESS 220 - Accounting Principles Introduces students to financial and managerial use of accounting information systems and concepts, including the sources, uses and limitations of accounting information as used by investors outside the firm and by managers within the firm. 3 units. Prerequisite: Graduate Standing. The primary areas of coverage and course objectives include: Basic accounting concepts and financial transaction analysis including the development of financial statements (Income Statement, Statement of Retained Earnings, Balance Sheet). The interpretation and analysis of the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows for a publicly traded company. The basic analysis concepts will be covered in a financial statements analysis text and then applied to publicly traded companies as part of a student group project. The outline of the project requirements are covered in a separate text, Understanding and Analyzing Financial Statements – A Project Based Approach. Understanding how management accounting differs from financial accounting and how to use management accounting concepts for internal decision making, including cost volume profit analysis, Incremental (Differential) cost analysis, planning and control, and principles of capital budgeting for long term projects. The management accounting basics are covered in selected chapters from a managerial accounting text. Texts: Understanding Financial Statements, 8th Edition; Fraser & Ormiston; Pearson Prentice Hall Understanding and Analyzing Financial Statements; A Project-Based Approach; 4th ed. Schoneebeck; Prentice Hall Managerial Accounting, 4th Edition; Weygandt, Kieso, Kimmel; Wiley Additional materials will be available in a handout tailored for the class. The goals of this course are for the student to develop skills in: • Financial Statement analysis Students will be able to read and perform analysis on the Income Statement, Balance Sheet, and Statement of Cash Flows for publicly traded companies. Page 1 of 5
  • 2. Students will be introduced to reading the Management Discussion and Analysis [MD&A] section of published Annual/10K reports of publicly traded companies. • Long term capital budgeting Students will understand the time value of money and be able to perform an analysis for multiple year projects using present value, internal rate of return, payback, and other techniques. • Financial Management decision making Students will be knowledgeable in several management accounting techniques useful in making business decisions (e.g., using the contribution margin income statement format, preparing budgets and evaluating actual performance against budgets, make or buy decision-outsourcing). Techniques will include breaking down costs/projects into variable and fixed components and using decision making techniques based on variable and fixed cost behavior. Evaluations and grading Students will be evaluated based on their performance on quizzes and examinations and a group project on financial statement analysis. Course Examinations and Points (subject to change with fair notice) A. Requirements for this course Points Quizzes 100 2 Midterm Exams 200 Final Exam 200 Project Presentations 100 Total Points 600 === Note: Quizzes, Midterm and Final exam grades may be curved at instructor discretion. Additional exam problems may be given for extra credit at instructor discretion. There will no extra credit assignments during the course. B. Grading – Per San Jose State University Grading Schedule Grading is based on the following schedule. % Grade % Grade % Grade % Grade % Grade 87-89 B+ 77-79 C+ 67-69 D+ 93-100 A 83-86 B 73-76 C 63-66 D 0-59 F 90-92 A- 80-82 B- 70-72 C- 60-62 D- C. Quizzes [subject to change with fair notice] Several quizzes are planned, the number depending on class agreement. There are no make ups for quizzes. The team project will require performing a financial statement analysis of leading publicly traded companies. Students will be in groups. Each group will evaluate two or more companies and compare the company performance to the industry average. Material and ideas & quotations from other sources must be appropriately referenced. Page 2 of 5
  • 3. Academic Integrity Statement (from Office of Judicial Affairs): Your own commitment to learning, as evidenced by your enrollment at San Jose State University, and the University’s Academic Integrity Policy requires you to be honest in all your academic course work. Faculty are required to report all infractions to the Office of Judicial Affairs. This policy on academic integrity can be found at: http://www.sa.sjsu.edu/judicial_affairs/index.html. If you would like to include your work any materials you have submitted, or plan to submit, for another class, please note that SJSU Academic Integrity Policy S04-12 requires approval by instructors. Campus policy in compliance with the Americans with Disabilities Act: If you need course adaptations or accommodations because of a disability, or you need special arrangements in case the building must be evacuated, please make an appointment with me as soon as possible, or see me during office hours. Presidential Directive 97-03 requires that students with disabilities register with DRC to establish a record of disability. Evacuation Plan Briefly, follow the established evacuation plan for Duncan Hall (handout). Be sure to bring all of your personal belongings with you as you may not be allowed back into the building for some time. Page 3 of 5
  • 4. BUS 220 Accounting Principles Reference Date Mtg. Topics discussed in class [see legend below] Quiz Financial Accounting 1/7 1 Introduction and course administration Handout Business Model & Role of Accounting Intro Handout Transactions to IS, SRE, BS Intro Handout Ch 1 Financial Statements: Overview Intro UFS Ch 2 The Balance Sheet - Intro Assets UFS P44-58 Annual Reports - 10K Handout 1/19 2 Ch 2 The Balance Sheet - Intro Liabilities, Equity UFS P58-68 Transactions to IS, SRE, BS (Continued) Handout 1/26 3 Midterm 1 Transactions to IS, SRE, BS Mid 1 Ch 3 Income & Stockholder Eqty Stmts Intro UFS 1/28 4 Midterm 1 Review Ch 4 Statement of Cash Flows Intro UFS Ch 13 Statement of Cash Flows MA Begin Financial Statement Project - select teams 2/4 5 Ch 6 Analysis of Financial Statements Intro UFS Ch 14 Fin. Statement Analysis: The Big Picture MA Ch 5 A Guide to Earnings Quality Intro UFS Financial Statement Project - Select Industry/Cos 2/9 6 Midterm 2 Financial Statements / Analysis Mid 2 Managerial Accounting Ch 1 Managerial Acctng Costs in Stmts Intro MA Ch 5 Cost Volume Profit (CVP) Analysis Intro MA Ch 6 CVP Analysis - Additional Issues MA 2/11 7 Midterm 2 Review Ch 7 Incremental Analysis Intro MA Ch 2 Job Order Cost Accounting Intro MA 2/18 8 Financial Statement Project Presentations UAFS Ch 9 Budget Planning Intro MA Ch 10 Budget Control & Responsibility Intro MA Appendix A Time Value of Money Intro MA 2/23 9 Financial Statement Project Presentations UAFS Ch 12 Capital Investments Intro MA Appendix A HWR Time Value of Money MA Financial Statement Project Presentations UAFS Final Exam Coverage 2/25 10 Financial Statement Project Presentations UAFS Ch 8 Pricing; Ch 11 Standard Costs: Overview MA Final Exam Final Legend IS Income Statement SRE Statement of Retained Earnings SSE Statement of Shareholders' Equity BS Balance Sheet SCF Statement of Cash Flows HO Handout UFS Understanding Financial Statements Text uafs Understanding & Analyzing Financial Statements MA Managerial Accounting Text Page 4 of 5
  • 5. Business 220 Accounting Principles: Pre-Class assignment Textbooks There are three texts for Business 220: Understanding Financial Statements; 8th Edition, Fraser & Ormiston; Prentice Hall 2007 ISBN 0-13-187856-5 2007 [Referred to as UFS] Understanding and Analyzing Financial Statements, A Project Based Approach; 4th Ed. Schoenebeck; Prentice Hall 2007 ISBN 0-13-239190-2 [Referred to as UAFS] These first two books can be purchased together shrink wrapped at a discount from the normal list price of both. Managerial Accounting, Tools for Business Decision Making; 4th Ed Wiley 2008 ISBN 978-0-470-11726-2 [Referred to as MA] All of the texts have arrived in the SJSU bookstore and are in the graduate/off campus book section. The texts have been ordered by the Robert’s book store but had not yet arrived as of Friday December 14. [Roberts Book Store; 330 So. 10th St., San Jose – (408 286-0930 – www.RobertsBookstore.com] Pre-class reading assignment includes: Understanding Financial Statements; Ormiston [UFS] Read Chapter 1 and do all 17 multiple choice self test questions at the end of the chapter. Solutions are provided in the text. Get a feel for the four financial statements Exhibit 1.1 and Notes in Exhibit 1.2 on pages 7-13. You are not expected to understand each line item. This is what is covered in the first five weeks. Understanding and Analyzing Financial Statements; Schoenebeck [UAFS] Do Activities 1, 2, 10, 11 Start reading and doing the following: [UFS] Start reading chapter 2, pages 44-58 which covers assets. Do not be concerned if you do not understand all the concepts initially. These topics are covered in several chapters in a financial accounting text. Time will be spent in class on each major topic covered. [UAFS] Activities 2, 10, 11 Have a Happy Holiday Season. See you in class in January at Rose Orchard. Page 5 of 5