BUS 330A Spring 2018

Subject to revision

Contact information

  • Instructor: Elizabeth Stanny, PhD
  • Email (best way to contact me): stanny (at) sonoma (dot) edu
  • Office hours:
    • In-person: by appointment
    • Online: Fridays 3 - 6 PM on Zoom click here
      • If joining with an app, the meeting room is 904-996-6788.

Prerequisites

  • BUS 230A
  • Proficiency in spreadsheet software

Learning objectives

  • Environment and conceptual framework
    • Describe the function and primary focus of financial accounting
    • Explain the difference between cash and accrual accounting
    • Discuss 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
    • Convert from cash to accrual basis net income
  • 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 the importance of 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
    • Identify and 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 used to value inventories
  • 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 and exchanges for other non-monetary assets
    • Identify the items included in the cost of a self-constructed asset and determine the amount of capitalized interest
    • Explain the concept of cost allocation as it pertains to property, plant, and equipment and intangible assets
    • 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
  • Investments
    • Demonstrate how to identify and account for investments classified as held-to-maturity, trading, available-for-sale and the equity method
    • Explain what constitutes significant influence by the investor over the operating and financial policies of the investee
    • Explain how electing the fair value option affects accounting for investments
  • For each topic discuss the primary differences between U.S. GAAP and IFRS

Course materials

  • Textbook (recommended)
    • Spiceland, J. David. Intermediate Accounting, 9th Edition. McGraw-Hill Higher Education, ISBN 9781259722660. You could use an older edition (i.e., the 7th or 8th edition). You do not need a code.
  • Videos, notes, quizzes and other materials are posted on SSU’s moodle site
    • As you watch the videos you should work along and replicate the spreadsheets. You will use the spreadsheets in your quizzes.
  • Spreadsheet Software
    • I highly recommend LibreOffice, but you can use any spreadsheet program. I use LibreOffice in the videos. It is open source (free) and is compatible with Microsoft Excel. Any skills you learn in LibreOffice Calc will be transferable to Microsoft Office (Excel).
    • Download LibreOffice here.

Schedule

Date In-class topic Quiz(zes) for topic closes at Textbook
Jan 22 1: Environment and conceptual framework / ASC Ch 1
Jan 29 2: Accounting cycle 1 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 2
Feb 5 3: Balance sheet and financial disclosures 2 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 3
Feb 12 4: Income statement and statement of cash flows 3 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 4
Feb 19 5: Income measurement and profitability analysis 4 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 5
Feb 26 5 12:30 PM (sect 1) / 2:30 PM (sect 2)
Mar 5 Exam (Topics 1-5) during class time
Mar 12 6: Cash and receivables Ch 7
Mar 26 7: Inventories I 6 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 8
Apr 2 8: Inventories II 7 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 9
Apr 9 9: Property, plant and equipment and intangibles I 8 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 10
Apr 16 10: Property, plant and equipment and intangibles II 9 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 11
Apr 23 11: Investments 10 12:30 PM (sect 1) / 2:30 PM (sect 2) Ch 12
Apr 30 11 12:30 PM (sect 1) / 2:30 PM (sect 2)
May 7 Exam (Topics 6-11) during class time

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

Quizzes 500 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 your answers.

Exams 500 points

  • The exams are open-book and open-note.
  • You should use the spreadsheets that you have created for the quizzes.
  • The exams will be administered in an assigned computer lab during class time.

In-class

  • The first 30 minutes of class (12-12:30 PM Section 1 / 2-2:30 PM Section 2) will be for individual help. I’ll be available to answer questions including whether your second attempt answers are correct.
  • Beginning at 12:30 PM Section 1 (2:30 PM Section 2) I will review the last topic, give an introduction to the next the topic, and you will answer a question. If your answer is correct, you will receive 10 bonus points.

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.
    • Emergency Evacuation: If you are a student with a disability and you think you may require assistance evacuating a building in the event of a disaster, you should inform your instructor about the type of assistance you may require. You and your instructor should discuss your specific needs and the type of precautions that should be made in advance of such an event (i.e. assigning a buddy to guide you down the stairway). We encourage you to take advantage of these preventative measures as soon as possible and contact the Disability Services for Students office if other classroom accommodations are needed.