SP 2020 BUS 330a Syllabus

Intermediate accounting

Subject to revision

Contact information

  • Instructor: Elizabeth Stanny, PhD
  • Email: stanny@sonoma.edu
  • Office hours in Zoom meeting room
    • Monday 4 - 5 PM
    • Tuesday 4 - 5 PM
    • Wednesday 4 - 5 PM

Prerequisites

  • BUS 230A
  • Proficiency in spreadsheet software

Course format

  • Course site: stanny.moodle.school. If you are enrolled in the course, I will send you login information.
    • If you have any questions about the site, please ask me.
    • Videos, notes, quizzes and other materials are posted on the site.
    • As you watch the videos you should work along and replicate the spreadsheets. You will use the spreadsheets in your quizzes.

Course materials

  • ASC (Accounting Standards Codification) (required).
    • Logon credentials will be posted on the course site.
  • Textbook (optional)
    • Intermediate Accounting 9th (ISBN: 9781259722660) or 10th (ISBN: 9781260481952) edition
  • Spreadsheet Software (required)

Learning objectives

  • Environment and conceptual framework
    • Describe the function and primary focus of financial accounting
    • Explain the difference between cash and accrual accounting
    • Discuss the FASB’s conceptual framework
  • Accounting cycle
    • Record transactions using journal entries
    • Post the effects of journal entries to general ledger accounts
    • Prepare an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and closing journal entries
    • Prepare basic financial statements
  • Balance sheet and financial disclosures
    • Describe the purpose of the balance sheet and its usefulness and limitations
    • Distinguish among current and non-current assets and liabilities
    • Explain the purpose of financial statement disclosures, the management discussion and analysis disclosure and of an audit
    • Calculate liquidity and financing ratios
  • Income statement and statement of cash flows
    • Discuss income from continuing operations and its components
    • Define discontinued operations and its income statement presentations
    • Explain the accounting treatments of changes in estimates and accounting principles and correction of errors
    • Define earnings per share (EPS) and explain required disclosures of EPS
    • Explain the difference between net income and comprehensive income
    • Describe the purpose and classifications of the statement of cash flows
  • Income Measurement and Profitability Analysis
    • Discuss the revenue recognition criteria
    • Discuss the implications for revenue recognition of allowing customers the right of return
    • Calculate the common ratios used to assess profitability
  • Cash and receivables
    • Distinguish between the gross and net methods of accounting for cash discounts
    • Account for merchandise returns and anticipated uncollectible accounts receivable
    • Describe the two approaches to estimating bad debts
    • Differentiate between the use of receivables in financing arrangements accounted for as a secured borrowing and those accounted for as a sale
  • Inventories
    • Explain the difference between perpetual and periodic inventory systems
    • Explain which physical quantities of goods should be included in inventory
    • Determine the expenditures that should be included in the cost of inventory
    • Determine the cost of ending inventory and cost of goods sold using the specific identification, FIFO, LIFO, dollar-value LIFO, retail inventory, gross profit and average cost methods
    • Describe supplemental LIFO disclosures and the effect of LIFO liquidations on net income
    • Apply the lower of cost or net realizable value rule
  • Property, plant and equipment and intangibles
    • Identify costs included in the initial cost of property, plant, and equipment, natural resources, and intangible assets
    • Determine the initial cost of individual property, plant, and equipment and intangible assets acquired as a group for a lump-sum purchase price, in exchange for a deferred payment contract, in exchange for equity securities or through donation
    • Explain how to account for dispositions
    • Identify the items included in the cost of a self-constructed asset and determine the amount of capitalized interest
    • Calculate depreciation and amortization expenses
    • Account for changes in estimated service lives and residual value of property, plant, and equipment and intangible assets
    • Discuss when long-lived assets must be tested for impairment
  • For each topic discuss the primary differences between U.S. GAAP and IFRS
  • Analyze public companies annual reports (10-Ks)
  • Relate course topics to current events

Schedule

Date Topic Quiz due Attendance
Jan 22 1: Environment and conceptual framework / ASC 1
Jan 29 2: Accounting cycle 1 due at 1 PM 2
Feb 5 3: Balance sheet and financial disclosures 2 due at 1 PM 3
Feb 12 4: Income statement and statement of cash flows 3 due at 1 PM 4
Feb 19 5: Income measurement and profitability analysis 4 due at 1 PM 5
Feb 26 6: Cash and receivables 5 due at 1 PM 6
Mar 4 Review 6 due at 1 PM 7
Mar 11 Exam (Topics 1-6)
Mar 18 Spring Break
Apr 1 7: Inventories I 7 due at 5 PM
Apr 8 8: Inventories II 8 due at 5 PM
Apr 15 9: Property, plant and equipment and intangibles I 9 due at 5 PM
Apr 22 10: Property, plant and equipment and intangibles II 10 due at 5 PM
Apr 29 Exam (Topics 7-10) Open from 9 AM to 5 PM (100 min time limit)
May 6 ASC I ASC I due at 5 PM
May 13 ASC II ASC II due at 5 PM

Grading

There are 1000 possible points in the course. Your grade will be determined by your total points:

Grade Points
A 950
A- 900
B+ 870
B 830
B- 800
C+ 770
C 730
C- 700
D+ 670
D 600

In-class participation 70 points

Quizzes 530 points

  • Questions will be short-answer, numerical and multiple-choice.
  • You can attempt each quiz twice and you will receive the highest grade scored.
  • Late quizzes will not be accepted. Please do not ask.
  • There will be multiple versions of quizzes. You can work with others on the quizzes, but you must enter and understand the answers yourself. When you submit your answers you are acknowledging that you can explain them.

Exams 400 points

  • The exams are open-book and open-note.
  • You should use the spreadsheets that you have created for the quizzes.

Policies

  • You must adhere to SSU’s Cheating and Plagiarism policy. Academic dishonesty (e.g., cheating, plagiarism, etc.) will not be tolerated and will result in a zero grade (i.e., no points) on the quiz or exam and, possibly, a failing grade in the course.
  • Please be advised that the on-line software allows me to track every click you make on the course site. I know whether, when and where you attempt quizzes, access notes, etc.
  • There are no opportunities for points not listed above. Please do not ask.
  • Disability Services for Students (DSS)
    • Academic Accommodation: If you are a student with a disability, and think you may need academic accommodations, please contact Disability Services for Students (DSS), located in Salazar Hall, Room 1049, Voice: (707) 664-2677, TTY/TDD: (707) 664-2958, as early as possible in order to avoid a delay in receiving accommodation services. Use of DSS services, including testing accommodations, requires prior authorization by DSS in compliance with university policies and procedures.
  • Students may not record (audio or video) in this class except in accordance with ADA accommodations. Any recordings made in connection with a disability accommodation are for the student’s personal academic use only and may not be distributed in any manner to any other individual.
Avatar
Elizabeth Stanny
Professor of Business Administration

My research interests include climate change and political disclosures.