NYU Stern School of Business

Undergraduate College


Spring 2013

Instructor Details

Dou, Yiwei




KMC 10-77


Course Meetings

MW, 8:00am to 9:15am

Tisch T-LC25


Final Exam: TBD

Schedule exceptions
    Class will not meet on: 2/18; 3/18; 3/20
    Class will meet on:


Course Description and Learning Goals

The course is intended for students with no previous exposure to financial accounting. The objective is to help you become intelligent readers of the financial reports of publicly-traded companies. The course focuses on the development, analysis and use of these reports. It also provides an understanding of what these reports contain, what assumptions and concepts accountants use to prepare them, and why they use those assumptions and concepts. A solid understanding of the fundamentals covered in this course should enable you to do well in more advanced finance and accounting courses and to interview intelligently for jobs in finance and consulting.                                                                   

The course begins with the basic concepts of accounting. We look at the main financial statements: balance sheet, income statement, statement of cash flows, and statement of stockholders’ equity. Particular attention is paid to how these four statements relate to each other and how they provide information about the financial health of a company. We then cover specific items from the financial statements and apply tools of analysis whenever possible.


Course Outline


The following is a tentative schedule of classes and readings.  I may make adjustments as circumstances require.







Chapter 1



Overview of Accounting and Financial Statements

Chapter 1


2/4; 2/6

Balance Sheet and Recording the Transactions

Chapter 2


2/11; 2/13

Income Statement: Cash versus Accrual Accounting

Chapter 3



Presidents' Day, No Class




Adjustments and Closing the Books

Chapter 4



Misstatement, Fraud and the Hall of Shame




Review for Midterm 1




Midterm Exam 1 (Chapters 1-4)



3/6; 3/11; 3/13

Statement of Cash Flows

Chapter 13


3/18; 3/20

Spring Break, No Class




Margins and EPS

Pp. 182; 284; 556


3/27; 4/1


Chapter 9


4/3; 4/8


Chapter 10



Review for Midterm 2




Midterm Exam 2 (Chapters 13, 9,10)



4/17; 4/22

Shareholder's Equity

Chapter 11



Revenue, Receivables, and Cash

Chapter 6



COGS and Inventory

Chapter 7



Property, Plant, and Equipment

Chapter 8



Financial Statement Analysis: Ratio Analysis




Basic Valuation of Firms and Stocks




Review for Final




Final Exam




Required Course Materials

Textbook: Libby, Libby and Short (LLS), Financial Accounting, 7th Edition. The NYU Custom Edition is also acceptable.The textbook covers the basic material in the course, including background information, accounting rules and conventions. It is crucial that students come to class prepared to discuss the scheduled topics. I will assign chapters/pages from the textbook that I expect you to read before class.


Lecture Slides: Most lectures will use the aid of PowerPoint slides, which will be available prior to each class on Blackboard. You should print your own copies before class in whatever format works best for you.


Other Materials:I will be using Blackboard to post other materials such as notes and homework assignments, and to communicate with you throughout the term.


Assessment Components

Final grades will be determined as follows:

Homework Assignments


Midterm Exam 1


Midterm Exam 2


Final Exam


Class Participation



Homework: There will be 7 homework assignments, and you only need to submit 6 of them. If you hand in all 7, the highest 6 scores will be counted in your grade. You must submit a hardcopy of your completed homework at the end of class on the date due; late homework will not be accepted. I will not accept assignments in my mailbox, over the web, through e-mail, etc. Solutions to homework will be posted to Blackboard.


I also hand pick textbook problems that are useful to practice and that reinforce basic accounting proficiency, but they will not be submitted or graded. Doing problems is the best way to learn accounting. Solutions to these problems will be posted to Blackboard.


Exams: There will be three exams, two midterms and one final. All exam questions can resemble questions from homework assignments, lectures, and even textbook problems. The first two exams are tentatively scheduled for March 4th and April 15th, 2013.


Exam dates will not be rescheduled for any individual student. If you miss the first or second exam, extra weight will be added to the exam that you do take. If you miss the final exam, you will receive zero credit for that exam. Do not schedule any travel plans before the final exam date, which could be as late as May 21st.


Exam Re-Grading: If you believe your exam is incorrectly graded, submit the entire original copy of the complete exam to me within one week of the return of the exam. Include a memo which legibly and fully explains your contention. Exams that have been altered in any way will not be re-graded, the exam score will be changed to a zero, and the Student Disciplinary Committee will be notified. Only exams written in pen will be accepted for a re-grade.


Class Participation:This course will emphasize participatory and collaborative learning. As a result, a significant portion of your mark will be based on your verbal participation and contribution to class discussions. To keep track of your participation, at the end of each class, students who participate in that class can acquire a tick on my record book. The participation mark will be based on the number of ticks you acquire and the overall quality of your participation.



At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

Note that while the School uses these ranges as a guide, the actual distribution for this course and your own grade will depend upon how well you actually perform in this course.


Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

Undergraduate College: http://www.stern.nyu.edu/uc/codeofconduct
Graduate Programs: http://w4.stern.nyu.edu/studentactivities/involved.cfm?doc_id=102505

To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.


Stern Policies

General Behavior
The School expects that students will conduct themselves with respect and professionalism toward faculty, students, and others present in class and will follow the rules laid down by the instructor for classroom behavior.  Students who fail to do so may be asked to leave the classroom. 


Collaboration on Graded Assignments
Students may not work together on graded assignment unless the instructor gives express permission. 


Course Evaluations
Course evaluations are important to us and to students who come after you.  Please complete them thoughtfully.


Recording of Classes

Your class may be recorded for educational purposes


Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, www.nyu.edu/csd) verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.


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