ACCTG 305: Financial Statements and Management Decisions

Textbook Information

Pearson Collections Financial Statements and Management Decisions. A link to purchase for $88.85 will be provided by the instructor.

Published Remarks

None

Hardware Requirements

None

Software Requirements

None

Proctored Exams

None

Course Description

Impact of management's financing, investing, and operating decisions on GAAP- based financial statements. This course is a one-semester condensed version of the traditional two-semester intermediate accounting sequence (ACCTG 371 or 471; and 472) intended for the non-accounting major. Students who have passed ACCTG 371 or 471; and 472 may not take this course for credit. It is a required course for the Finance major. Students will gain a fundamental understanding of the information conveyed in the financial statements and, as a result, develop an appreciation for its usefulness and limitations in decision making. They will also develop the prerequisite knowledge base necessary to conduct financial statement analysis as required in Level I of the Chartered Financial Analyst (CFA) exam. A financial statement user decision-making perspective, rather than the accountant/preparer approach found in the traditional intermediate accounting sequence, is emphasized. Student success in meeting the learning objectives will be assessed through a combination of exams, quizzes, assigned homework problems, and participation. The comprehensive final exam will test the student's comprehension of the relevant material.

Prerequisites:  ACCTG 211 and FIN 301

Students will gain a fundamental understanding of the information conveyed in the financial statements and, as a result, develop an appreciation for its usefulness and limitations in decision making. They will also develop the prerequisite knowledge base necessary to conduct financial statement analysis as required in Level I of the Chartered Financial Analyst (CFA) exam. A financial statement user decision-making perspective, rather than the accountant/preparer approach found in the traditional intermediate accounting course, is emphasized. Student success in meeting the learning objectives will be assessed through a combination of exams, homework problems, and assignments. The comprehensive final exam will test the student’s comprehension of the relevant material.

Course Objective

Develop a basic knowledge of financial accounting and provide the student with a strong fundamental understanding of the purpose, usefulness, and limitations of financial accounting information.  A user’s decision making perspective will be stressed throughout the course. Although not specifically designed for preparing students to pass the Chartered Financial Analyst qualifying examinations, the course content includes most of the accounting topics tested at levels one and two. Knowledge acquired in this course will provide the student with an understanding of what information is vs. is not conveyed through GAAP based financial statements and their related notes.  This understanding will prepare students for the Financial Statement Analysis course (ACCTG 426).

Course Structure

The course will be structured along the following modules

  • Module 01: Financial Accounting
    • Lesson 01: Overview of Financial Accounting
    • Lesson 02: Adjustments
  • Module 02: Current Assets
    • Lesson 01: Revenue Recognition
    • Lesson 02: Cash, Receivables
    • Lesson 03: Inventory & Cost of Goods Sold
  • Module 03: Operating Assets & Liabilities
    • Lesson 01: Operating Assets – Acquisition
    • Lesson 02: Operating Assets – Cost Allocation
    • Lesson 03: Operating Liabilities & Contingencies
    • Lesson 04: Financing Liabilities
  • Module 04: Equity, Financial Assets & Consolidation
    • Lesson 01: Equity
    • Lesson 02: Earnings per Share
    • Lesson 03: Financial Assets
    • Lesson 04: Consolidation
  • Module 05: Taxes, Leases, Compensation, & Cash Flows
    • Lesson 01: Income Taxes
    • Lesson 02: Leases
    • Lesson 03: Compensation Benefits
    • Lesson 04: Statement of Cash Flows

Assignments

Assignment Breakdown Points
Exam 1 50
Exam 2 80
Exam 3 80
Exam 4 80
Exam 5 80
Comprehensive Final Exam 100
Reading Quizzes (Best 10 of 12) 100
Graded Homework 180
Total: 750

Exams:  Exams will be administered on Canvas and will consist of multiple choice questions worth two points each.  They will be due on Sunday in the week labeled for the exam and you will have a 90-minute window within which to take the exam.  You can choose when you want your 90-minute window during the week, but the exam must be completed in one sitting.  As indicated, the final exam is cumulative. Reading Quizzes:  There are a total of twelve reading quizzes which correspond to the reading questions from the chapter.  You will have a fifteen-minute window to complete the quizzes which will consist of five multiple choice questions.  The purpose of these quizzes is to test your understanding of the subject matter Graded Homework:  There will be graded homework assignments from each chapter which will give the student the opportunity to demonstrate their knowledge of the material by completing problems related to the chapter material and chapter examples.  The assignments will average 15 points per chapter although individual chapters can have higher or lower point levels depending on the complexity of the assignments.

Grades

Grades will be determined based upon the following scale:

Letter Grade Percent Range
A 93.0%+
A- 90.0-92.9%
B+ 87.0-89.9%
B 83.0-86.9%
B- 80.0-82.9%
C+ 77.0-79.9%
C 70.0-76.9%
D 60.0-69.9%
F 0.0-59.9%

There will be no curving of final grades.  The letter grades, percentages, and points given are firm.  Grades are earned, not given.  Most weeks there will be opportunities to earn points with quizzes and homework. Extra credit is only available if it can be offered to everyone. Note: A grade of C or higher is required to pass the course All assignments are graded within 2 business days of the assignment due date.  You may turn in assignments early, but they will not be graded before the due date. Please refer to the University Grading Policy for Undergraduate Courses for additional information about University grading policies. If you are prevented from completing this course for reasons beyond your control, you have the option of requesting a deferred grade from your instructor. For more information, please see “Deferred Grades” on the Student Policies website.