Financial Accounting Syllabus and Study Guide

Financial Accounting: Syllabus and Study Guide

Course Overview

This course introduces students to the fundamental principles and practices of financial accounting. It covers the preparation, analysis, and interpretation of financial statements, as well as the ethical standards required in the accounting profession.

• Course Objectives:

  • Learn the objectives of financial accounting and the role of financial statements in business decision-making.

  • Understand the importance of professional conduct and ethics in accounting.

  • Develop skills in preparing, reading, and analyzing financial statements.

  • Gain familiarity with accounting policies, methods, and limitations.

  • Apply financial statement analysis to real-world cases and company data.

Textbook and Supplementary Materials

• Primary Textbook: Financial Statement Analysis (12th edition) by J.M. Fraser and Aileen Ormiston (Pearson, 2023).

• Additional Resources:

  • Lecture PowerPoint slides

  • Blackboard for assignments and announcements

  • Chartered Financial Analyst (CFA) Institute Code of Ethics and Standards of Professional Conduct

Course Outline

The course is organized into weekly topics, each focusing on a key area of financial accounting. The schedule includes case studies, exams, and presentations.

• Ch. 1: Financial Statements: An Overview

• Ch. 2: The Balance Sheet

• Ch. 3: Income Statement, Comprehensive Income, and Statement of Stockholders' Equity

• Ch. 4: A Guide to Earnings Quality

• Ch. 5: Statement of Cash Flows

• Ch. 6: Analysis of Financial Statements

• Ch. 7: The Analysis of Special Items

• Ch. 8: Cash-Flow-Based Approaches

• Ch. 9: Earnings-Based Approaches

• Valuation: Market-Based Approaches

Grading and Assessment

Student performance is evaluated through a combination of quizzes, exams, case reports, presentations, and participation. The grading scale is as follows:

Component	Weight
Case Reports and Final Presentation	45% - 10%
Class Quizzes (best 6 of 9)	10%
Exams (best 2 out of 3)	45%
Code of Ethics and Standards of Professional Conduct Bonus Points	up to 2%

Professional Conduct and Ethics

Students are required to adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct. This includes:

• Maintaining integrity and professionalism in all assignments and communications.

• Completing required quizzes on ethics and standards.

• Submitting certificates of completion for ethics modules via Blackboard.

Prerequisites

• Finance 351 is a critical prerequisite. Students are expected to understand basic finance principles and concepts.

Case Study Assignments

Students will work in groups to analyze real company financial statements and present their findings. Each group is assigned a company from various sectors:

Case Group	Ticker	Company Name	GICS Sector
Case Group 1	TGT	Target	Consumer Discretionary
Case Group 2	HD	Home Depot	Consumer Discretionary
Case Group 3	META	Meta Platforms	Communication Services
Case Group 4	KO	Coca-Cola Company (The)	Consumer Staples
Case Group 5	AAPL	Apple	Information Technology
Case Group 6	COP	ConocoPhillips	Energy
Case Group 7	PSA	Public Storage	Real Estate

Key Financial Accounting Concepts

Financial Statements

Financial statements are formal records of the financial activities and position of a business. The main types include:

• Balance Sheet: Shows assets, liabilities, and equity at a specific point in time.

• Income Statement: Reports revenues, expenses, and profits over a period.

• Statement of Cash Flows: Details cash inflows and outflows from operating, investing, and financing activities.

• Statement of Stockholders' Equity: Shows changes in equity accounts over time.

Key Formulas

• Accounting Equation: $\text{Assets} = \text{Liabilities} + \text{Equity}$

• Net Income: $\text{Net Income} = \text{Revenues} - \text{Expenses}$

• Cash Flow: $\text{Cash Flow} = \text{Cash Inflows} - \text{Cash Outflows}$

Example: Balance Sheet

A company's balance sheet might show:

• Assets: $500,000

• Liabilities: $200,000

• Equity: $300,000

Using the accounting equation: $500,000 = 200,000 + 300,000$

Class Participation and Expected Performance

• Active participation in class discussions and group work is required.

• Students must read assigned chapters and complete quizzes before class meetings.

• Attendance and engagement are essential for success.

Academic Integrity

All work submitted must be the student's own. Plagiarism and academic dishonesty will result in disciplinary action according to university policy.

Use of AI and LLMs Policy

• LLMs (Large Language Models) may be used for brainstorming, outlining, and grammar support only.

• LLMs must not be used to generate full assignments, essays, or presentations.

• All work must be original and properly cited if external sources are used.

How to Succeed in Financial Accounting

• Apply study methods weekly: read chapters, review materials, work on assignments, and seek help as needed.

• Practice problems and review slides regularly.

• Engage with group assignments and participate in class discussions.

Additional Info

• Students with disabilities should contact the instructor for accommodations.

• All communication should adhere to professional standards.