THE UNIVERSITY OF TENNESSEE AT MARTIN

College of Business and Public Affairs

Department of Accounting, Finance, and Economics

Fall Semester-2005

 

BASIC INFORMATION

 

Course Number, Section, Semester: Accounting 201, Sections 02, 03, and 04 

Course Title: Financial Accounting for Decision Making

Credit and Contact Hours: 3, 3

Course Prerequisites and/or Co-requisites: Sophomore standing and Math 140

Instructor: Dr. Robert L. Putman, CPA

Office Location: 229B Business Administration Building

Office Telephone: (731) 881-7305 Home Telephone: (731) 352-5797

E-Mail: bputman@utm.edu  FAX: (731) 881-7231

URL Address: http://www.utm.edu/~bputman

Office Hours: Tuesday & Thursday 8:45-9:30; 2:15-5:00; Wednesday 9:00-12:00

Text and Required Materials: Financial Accounting, 4th Ed. By Libby, Libby and Short.  ISBN Number - 0-07-247350-9. Workbook and Study Guide are recommended for use with the course.

 

COURSE PURPOSE, GOALS, AND OBJECTIVES

 

Course Description: This is an introductory accounting course dealing with the theory and practice of financial accounting.

 

Course Objectives:

 

1.  To acquaint the student with the accounting profession, terminology, concepts, principles, business ethics, and the work of accountants, both professional and private.

2.  To identify the role of accounting in our economic society and to better understand its part in the business school core requirements

3.  To develop the student’s ability to analyze and process accounting data through to the end result of comprehension of acceptable form of the balance sheet, income statement, and the cash flow statement.

4.  To aid the student in developing an appreciation of the usefulness and limitations of financial statements prepared in accordance with generally accepted accounting principles.

5.  To prepare students for effective communication of accounting information to interested users.

6.  To provide a basic foundation for further study in accounting.

 

Student Outcomes:

 

After completion of this course the student should be able to–

 

1. Recognize and understand the financial statements used to transmit financial information between companies and users of such information, including design, purpose, and types of information presented by each financial statement,

 

2. Apply basic double-entry accounting principles in the recording, classifying, and reporting of financial transactions of companies,

 

3. Have a general understanding of account classification, increase and decrease sides of accounts, and normal balances of accounts as applied to double-entry accounting,

 

4. Know how financial ratios and other calculations related to financial statement information can be used to help make decisions based on such financial measurements, and

 

5. Understand how measurement and recognition of specific items such as inventories, receivables, payables, and fixed assets affect reported income and balance sheet presentations.

 

Relationship to General Education and/or Major Field Goals:

 

General Education:

 

     Accounting is primarily a quantitative and analytical process. Accordingly, it is not difficult for the student to see the relationship of doing well in accounting and doing well in general education courses such as math, statistics, and physics. But accounting is more than quantitative processes. A recent survey of accounting professionals indicates that good communication skills are among the most important attributes of graduating students in their quest for job placement and career potential. Accounting is the language of business. Thus, English, speech, and other communication skills courses are important to the student in accounting classes. Social skills are necessary for success in today’s global environment no matter what career one pursues. In the study of accounting we not only investigate the systems of internal control and accountability, but we also emphasize the need to work closely with personnel who are to be parts of these systems. This requires study in the social science and human relations areas. Also, ethics and studies on ethical behavior allow us to differentiate right from wrong in the business world and also in each of our own personal worlds. These are just a few examples of how your study in this accounting course should relate to general education courses you are required to take; either prior to taking this course, concurrently with taking this course, or at some point in your academic studies.

 

Major Field Goals:

 

     This course is your first course in accounting at the collegiate level of study. Accordingly, if one is majoring in accounting, one must do well in this course. Some studies (Accounting Education Change Commission and Needles and Powers) have indicated that it is the most important course that the Accounting major will take during his (her) study leading to the baccalaureate degree. The course exposes the Accounting major to the type of rigor that will be expected of him (her) in subsequent accounting courses. It also introduces the Accounting major to important financial accounting concepts and principles that will be studied in more detail in future courses. It is a prerequisite to all other accounting courses.


 

 

 


COURSE CONTENTS AND TENTATIVE SCHEDULE
 

                                                                                                      In-Class             Turn-In

Date                  Subject                                                            Assignments*    Assignments**

 

Aug 30     Introduction; Course and syllabus discussion             Syllabus                 None

                 Overview of Chapter 1                                                MC 1-10

 

Sept  1     Chapter 1: Financial Statements and                        M 1-1, M 1-2,                                

                            Business Decisions                                             E 1-3           E 1-5, E 1-6, E 1-9,

       

         6     Chapter 1, concluded                                                                            E 1-10, E 1-14

                

         8     Chapter 5: Communicating and Interpreting                MC 1-10

                                  Accounting Information                          M 5-1, M 5-2,          E 5-1, E 5-2

         13   Chapter 5, concluded                                                M 5-3, M 5-8                  E 5-5

 

         15   Chapter 2: Investing and Financing Decisions             MC 1-10                                                                                                                                                                                                                                                             

                                                                                          M 2-6, M 2-7, M 2-8          E 2-9, E 2-10

         20   Chapter 2, concluded                                      M 2-9, M2-10, M 2-11      E 2-11, E 2-13, 

        

         22     Chapter 3: Operating Decisions and the                      MC 1-10    

                                  Income Statement                       E 3-6, E 3-9, E 3-10,           E 3-12, E 3-13,           

 

         27    Chapter 3, concluded                                             E 3-11                              E 3-14                                                     

 

Sept  29   Exam 1: Chapters 1, 2, 3, 5

 

Oct     4   Chapter 4: Adjustments, Financial Statements  MC 1-10, M 4-1,                 
                                  and Quality of Earnings                                                

 

           6   Chapter 4, concluded                                        M 4-4, M 4-6               E 4-8, E 4-17 

                                                                                                                             E 4-18, E 4-19

    

          11 Chapter 6: Reporting and Interpreting Sales       MC 1-10    

                                  Revenue, Receivables, and Cash    M 6-4, M 6-5

 

          13    Chapter 6, concluded                                       M 6-6,                        E 6-2, E 6-8
                                                                                           E 6-22                      E 6-16, E 6-23
 

----October 18 Fall Break: No Class---

 

Oct    20   Chapter 7: Reporting and Interpreting Cost  MC 1-10,  E 7-1,   
                                   of Goods Sold and Inventory                                                                         
                                                                                                                                   E 7-2,
          25   Chapter 7, concluded                                     E 7-6, E 7-9               E 7-7, E 7-10

          27   Chapter 8: Reporting and Interpreting Property, MC 1-10, M 8-1, 

                            Plant, and Equipment; Natural Resources      

                            and Intangibles                    

                                                

Nov     1   Chapter 8, concluded                                          E 8-3, E 8-8            E 8-1, E 8-3                                                 

                                                                                                                                  E 8-11

Nov     3   Exam 2: Chapters 4, 6, 7, 8  

 

            8   Chapter 9: Reporting and Interpreting Liabilities MC 1-10, E 9-1,                       

 

          10   Chapter 9, concluded                                             E 9-2, E 9-4,     E 9-5, E 9-16   
                                                                                                   E 9-13            E 9-18, P 9-1
         

           15  Chapter 10: Reporting and Interpreting Bonds    MC 1-10, E 10-2,                 

 

           17   Chapter 10, concluded                                     M 10-2, M 10-3,       E 10-12,
                                                                                            M 104, M 10-5    E 10-15, P 10-1               

 

           22   Chapter 11: Reporting and Interpreting Owners   MC 1-10, E 11-1,                        

          

           29  Chapter 11, concluded                                     E 11-6, E 11-8,     E 11-3, E 11-7
                                                                                                E 11-13                    P 11-1    
          

 Dec     1   Chapter 13: Statement of Cash Flows                  MC 1-10                       

                                    (Pp 645-651 only)                       M 13-1, M 13-3     E 13-12, E 13-13

                                                                                                M 13-4                           
                                                   

Dec       6  Exam 3: Chapters 9, 10, 11, 13    

 

             8   Discussion Exam 3;  Turn in problems Chapter 13; Point reconciliation; review for final exam  


Dec     13  Final Exam (Comprehensive) 3:00 - 5:00 PM (Place TBA)

 

*To be worked in class; do not turn in.
**To be turned in the class period immediately following the completion of the chapter


 

 

COURSE REQUIREMENTS AND EXPECTATIONS

 

Grading Procedures:

 

Your grade in this course will be derived as follows:

 

          Three exams during the semester, dates indicated on the preceding

                 Tentative Schedule ..................................................................... 300 Points

          Comprehensive final exam.................................................................. 100    "

          Participation*...................................................................................... 100   " 

 

          Total points possible.......................................................................... 500 Points

 

Letter grades will then be assigned as follows:

 

A: 450-500 points; B: 400-449 points; C:350-399 points; D: 300-349 points; F: Below 300 points

 

*Participation points will be allocated as follows: (60 - Turned-in homework problems; 20 - Attendance; and 20 - Classroom participation) 

 

    Homework problems will be due at the beginning of the class period that we start a new chapter. Problems turned in late (up to one week) will earn you one-half credit. IMPORTANT! There will be no credit for homework turned in after the one week deadline unless you have an acceptable excuse for such tardiness. If you must miss a class in which assignments are due, it is your responsibility to get those assignments to your instructor (either by sending them to class with a buddy, by e-mail attachment, or delivering them to my office). In emergency situations (contact your instructor for approval) the late assignment turn-in penalty will be waived.  

   Each unexcused absence in excess of two (2) during the semester will result in the subtraction of one point from the 20 total allowed as your attendance participation. I take class attendance at the beginning of the class.  If you arrive late, it is your responsibility to remind me that you were in attendance at the end of class.  Habitual tardiness (three consecutive times) will count as an unexcused absence.  Please observe this policy and be on time and in place at the start of the period.  

   Classroom participation will earn you up to 20 points.  This includes your active involvement in the classroom setting.  Asking questions, discussion in the classroom, and answering questions your instructor asks you directly are all part of this consideration.  The best way you can earn the maximum of 20 points for this area is to be prepared in each class.  Your instructor expects you to spend at least 2 hours preparation outside of class for each hour in class.  Classroom disturbances (talking in small groups as the class progresses, making unusual noises, or a generally disinterested appearance in class, for example) will count against the 20 points.  You can earn the 20 points automatically if you inject pertinent current events (from the media or any other source you observe) as they relate to the various topics in our classroom discussions.  A visit to the financial section of your daily newspaper or the Wall Street Journal will provide you with this type of information.  Also, from time to time I will give a short 3 point quiz (at the end of class).  You may earn from 0-3 points on each of these.  The quizzes will cover something we do in class that day.            

 

Class Policies:

 

Assignments: You are responsible for all material in chapters assigned in the text (unless specifically instructed otherwise), as well as all assigned exercises and problems. You are expected to have daily assignments completed on the due date. You may be called upon to present your solutions to the class, either verbally or on the board in front of the class. You are encouraged to do as many additional problems as you feel necessary for your understanding of the material. We will work introductory problems and exercises in the classroom before due dates of your turned-in assignments.  The Solutions Manual will be available in my office and you are encouraged to review your work and ask for help as needed.

 

Class Attendance: You are expected to attend all class sessions (and to be punctual and prepared). If you miss a class, it is your responsibility to find out what we covered in the class and to know the assignment. There will be no makeup exams in this course. If you miss a class in which an exam is scheduled due to an excused absence, your final exam score will count for the exam you missed. Be sure to inform your instructor in advance, if at all possible, of your reason for the absence. Do not just fail to show up for an exam and expect to have the final grade substitute for the missed exam. You must have your absence approved by this instructor in order to use your final exam score for a missed exam. To make this policy fair to all students who take exams at the scheduled time, I will substitute your final exam grade for the exam on which you made your lowest score during the semester. Of course, if your final exam grade is lower than any of the other three exams, no substitution will be made. So you can see, a good grade on the final exam is a win-win situation.  

 

Academic Honesty: I am a strong supporter of academic honesty. Any cheating observed will result in an automatic zero for the exam or other assignment. This is a very large class.  Seating in this classroom is very close.  Please do not look in other students' direction while taking tests.  You are learning ethical practices in your classrooms that will follow you into the real world.  When you are tempted to take shortcuts, just ask yourself questions such as these.  "Am I comfortable riding on an airplane designed by someone who cheated during his (her) undergraduate college days?"  "What about having a surgeon who cheated in Medical School operating on me?"  "And how about an investment broker (advisor) who cheated to make good grades during his (her) college days?"  Remember, ethical actions by each of us represent the fabric that holds our society together.  If the thread begins to come loose, our entire society moves toward deterioration.  Cheating on the final exam will result in an automatic F for the course. Calculators are permitted but may not be shared during exams. Please remember to bring your calculator with fresh batteries to each exam.

 

Important Dates:

 

September 2, 2005: Last day to add a course

 

October 17-18, 2005: Fall Break, no classes

 

October 21, 2005: Last day to drop a course with a grade of W unless special circumstances are involved

 

December 13, 2005: Final Exam (3:00-5:00 pm) Location: to be announced

 

Students With Disabilities:

 

     Any student eligible for and requesting academic accommodations due to a disability are requested to provide a letter of accommodation from P.A.C.E. or Student Academic Support Center within the first two weeks of the semester.