NYU Stern School of Business

Undergraduate College


Fall 2011

Instructor Details

Klein, April


212 - 998 - 0014

Tuesday 11-Noon; Friday Noon-1 PM


Office hours are also by appointment.  Feel free to e-mail me with any questions.


Sameen Singh





Course Meetings

MW, 11:00am to 12:15pm

Tisch T-200


Course Description and Learning Goals

This introductory accounting course assumes no prior knowledge of accounting.  The purpose of this class is to make you comfortable and knowledgeable with reading and understanding financial statements that are produced by publicly-traded companies.  We will doing some analyses of the statements as well.


Course Outline

September 7:  Introduction to Class

Brief  Introduction to what Financial Accounting is.  We also will go over the requirements for the class.


September 12 & 14 & 19:  What is a Balance Sheet? Introduction and Analyzing Transactions

Read:  Chapter 2

9/12:  Preparation Problem:  M2 - 4

Homework Problems: M2 – 8; E2 – 2; S2 - 1

9/14:  Preparation Problems:  M2 – 3, 6, 9-13, 19

Homework Problems: E2 – 5, 7; PB2 – 1, 2

9/19: Required for this class:  Pick a publicly-traded U.S. company and calculate its market-to-book ratio as of today (use its latest quarterly [10-Q] shareholders’ equity).  Be prepared to report them out in rapid fire.

No homework


September 21 & 26 & 28:  What is an Income Statement?  Introduction and Analyzing Transactions

Read:  Chapter 3

9/21:  Preparation Problems:  M3 – 2,3

Homework Problems: E3 – 1, 2, 4; S3 - 1

9/26:  Preparation Problems:  M3 – 4, 5

Homework Problems:  E3 – 7, 8, 11, 12

9/28:  Bring in handouts on Krispy Kreme and Corinthian College

No homework


October 3:  Problem Session

Review Chapters 2 & 3

In class:  We will go over PA3-3

Homework:  PB3 - 2, 3


October 5 & October 12:  Adjusting Entries (Note that we may begin adjusting entries on October 2)

Read:  Chapter 4

10/5: Preparation Problem:  E4 - 2

Homework Problems:  M4- 5-8; E4 – 3, 11

10/12:  Homework:  CP4-5 (This is a great review problem and will complement the Abercrombie and Fitch case very well)


October 17:  Review for Midterm 1

Queen McPea Case Due Today (on blackboard under course documents)

We will review this case in class.  Bring in two copies: one to be handed in at the beginning of class (I will not accept hand-ins once class begins) and one for your reference as we go over the problem


October 19:  MIDTERM 1:  Chapters 1-4


October 24 & 26 & 31:  Statement of Cash Flows

Read:  Chapter 12 (until page 571)

10/24:  Preparation Problems:  E12-1, M12-2

No homework

10/26:  Homework:  M12- 4, 5, 6, 7, E12-2, CP12-1; S12-1

10/31:  Homework:  E12-6, 8, 12, CP12-3


November 2:  US GAAP vs. IFRS

Read:  Slides on blackboard

No homework


November 2 & 7:  Inventories

Read: Chapter 7 to page 325

11/2:  Preparation Problems: M7- 3, 6, 9

Homework:  M7- 4, 5, 7, E7- 2, 5, 6, 10; S7-1

11/7:  Read Chapter 6 pp. 274-276

Preparation Problems: M7- 15, 19; M6-18

Homework:  PA7 -1, 4; E6-19


November 9 & 14:  Net Sales, Receivables, and Non-Payment of Receivables

Read:  Chapter 8 (skip the section on notes receivables, pp. 368-371)

11/9:  Preparation Problems: M8- 5, 6

Homework:  E8-14; CP8 -2

11/14:  Preparation Problem:  M8- 7, 8; E8-15

Homework:  E8- 1, 2, 3, 4, 5; CP8-5; S8-1


November 16 & 21:  Long-lived Tangible and Intangible Assets

Read: Chapter 9

11/16:  Preparation Problems:  M9- 4-6

Homework:  M9 - 3; E9- 9, 11; CP9-2

11/21:  Preparation Problems: E9-8, 12, 14

Homework: PB9- 4; CP9-1 (this is a good problem to prepare for the midterm exam); S9-1


November 23: Review for Midterm 2


November 28:  MIDTERM 2  (Chapters 1-4; 7-9; and 12 )


November 30:  Current Liabilities, Contingencies, and Noncurrent Liabilities

Read:  Chapter 10 (pp. 450-461; 467 -469)

11/30  Preparation Problems:  M10-1, 3, 5

Homework:  CP10-1, 4, 5


December 5 : Present Value

Read:  Appendix C (in the back of the book)  If you haven’t seen present value before, this might be difficult, so just skim and try to get the essence of what we will be talking about in class

12/5: Preparation Problems: From Appendix C:  MC-1, 2, 3 (on p. c.19)

Homework:  EC-5; PAC-1


December 7:  Bonds

Read:  Chapter 10 (pp, 460-467; supplements 10B and 10C)

12/7:  Preparation Problems:  M10- 9, 10, 13

Homework:  Do problem on Blackboard


December 12 & 14  Shareholders’ Equity

Read:  Chapter 11

12/12:  Preparation Problems:  E11- 1, 2; M11 - 1, 5

 Homework:  E11- 3, 7, 9, 11

12/14:  Homework:  E11-14; 20; PA11-3


Final Exam  (Date and Time to be Announced)



Required Course Materials

The textbook is Phillips, Libby and Libby, Fundamentals of Financial Accounting, 3rd edition (2010, Mc-Graw Hill). 

I view the textbook as an important tool, but also as background reading.  We will be covering many things in class that are not in the book.

I will be using Blackboard to post notes, the solutions manual, the syllabus, and to communicate with you throughout the term. 


Assessment Components

Final Grades will be determined as follows:


Midterm 1:  20%

Midterm 2:  20%

Final Exam:  40%

Queen McPea Case: 10%

Preparation Hand-Ins:  10%


In addition, I will take into account your professionalism as a student.  This consists of coming to class, handing in the preparation problems at the beginning of class, and your approach to being part of a group setting.


All exams are open book/open note.  There are no make-ups for the two midterm exams.  If you miss one of the midterms, your final exam grade will be used in its place.  Make-ups for the final exam will be allowed only if you have a University-approved excuse (e.g., illness or family emergency).



Basically, I stack up everyone’s weighted average from top to bottom and use the official “Undergraduate Grading Guideline for Core Courses: to allocate the grades.  I do, however, take some intangibles into account, particularly if you are on the cusp of two grades (e.g., A- and B+).  These intangibles include but are not limited to class participation, class preparation, class attendance, and trends in your exams. 


This is the official "Undergraduate Grading Guideline for Courses"


All exams are open book/open note.  There are no make-ups for the two midterm exams.  If you miss one of the midterms, your final exam grade will be used in its place.  Make-ups for the final exam will be allowed only if you have a University-approved excuse (e.g., illness or family emergency).  If you would like any exam question regraded, I require a written request clearly stating your reasoning within one week of receiving the graded exam.  No crossed out answers or erased answers will be considered for regrading.  So, be careful when putting your answers on the exam sheets.




The process of assigning grades is intended to be one of unbiased evaluation. Students are encouraged to respect the integrity and authority of the professor’s grading system and are discouraged from pursuing arbitrary challenges to it.

If you would like any exam question regraded, I require a written request clearly stating your reasoning within one week of receiving the graded exam.  No crossed out answers or erased answers will be considered for regrading.  So, be careful when putting your answers on the exam sheets.


Professional Responsibilities For This Course




In-class contribution is a significant part of your grade and an important part of our shared learning experience. Your active participation helps me to evaluate your overall performance.
You can excel in this area if you come to class on time and contribute to the course by:




Classroom Norms


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.


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.


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.


Group Projects

Guidelines for Group Projects

Business activities involve group effort. Consequently, learning how to work effectively in a group is a critical part of your business education.

Every member is expected to carry an equal share of the group’s workload. As such, it is in your interest to be involved in all aspects of the project. Even if you divide the work rather than work on each piece together, you are still responsible for each part. The group project will be graded as a whole:   its different components will not be graded separately. Your exams may contain questions that are based on aspects of your group projects.

It is recommended that each group establish ground rules early in the process to facilitate your joint work including a problem-solving process for handling conflicts. In the infrequent case where you believe that a group member is not carrying out his or her fair share of work, you are urged not to permit problems to develop to a point where they become serious. If you cannot resolve conflicts internally after your best efforts, they should be brought to my attention and I will work with you to find a resolution.

You will be asked to complete a peer evaluation form to evaluate the contribution of each of your group members (including your own contribution) at the conclusion of each project. If there is consensus that a group member did not contribute a fair share of work to the project, I will consider this feedback during grading.


Course Pre-Requisites



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