NYU Stern School of Business

Undergraduate College


Spring 2012

Instructor Details

Dontoh, Alex



Tu/Th 12 noon - 1pm

LMC 10-72


Andrew Berger


Wed 2:00-3:00pm

E&Y Center



Course Meetings

TR, 9:30am to 10:45am

Tisch T-LC25



Course Description and Learning Goals

Course Description

This course provides an introduction to the fundamental concepts of financial accounting.  Its purpose is to help students become intelligent readers of the main financial accounting reports (balance sheet, income statement, and cash flow statement).  The perspective taken is that these reports provide information that is useful for resource allocation decisions in a broad sense.  The informativeness of these reports is determined both by the cash and accrual accounting methods used to generate the reports and by the market and institutional settings in which resource allocation decisions are made.


Generally, the course will provide an overview of cash and accrual accounting measures, financial reports, and the market and institutional settings in which resource allocation decisions take place.  Also, specific accounting methods and use of accounting information in valuing firms will be briefly discussed as well.  A typical content outline of the course would cover the nature of financial statements, the balance sheet and the income statement, analysis of transactions, revenue and expense recognition, cash flow statement, concepts of present and future values, inventory and cost of goods sold, long lived assets and depreciation and amortization expense, marketable equity securities, debt financing and interest expense, stockholders equity and leases.


By the end of the course, you should: (1) understand the core concepts of financial accounting including how accountants analyze and record the effects of individual transactions, and the concepts that are essential to understanding financial reports such as assets, liabilities, owners’ equity, revenues, expenses and cash flows; (2) be able to interpret annual report information and analyze a company’s performance using this information; and (3) be fluent in the language of business.


Course Pre-Requisites

There is no pre-requisite for this course.


Course Outline

Class Schedule






Class Prep

Homework Assignments



Overview of Financial Statements and  Reporting Process

Course Pack Ch. 1

LLS Chapter 1&2


Assignment 1

Due  Fed 2



LLS Ch1 pp. 1-19

Prepare  qns. 3 & 8 on  p. 27

Extra practice Problems

S1-3, S1-6, S1-8



LLS Ch2 pp.43-50




Recording Transactions & Preparing Financial Statements

Course Pack Ch. 2

LLS Ch2 & 3



Partco Company

Planet of the Grapes

Homework Assignment 2

Due 2/14



Course Pack Ch. 2

LLS Ch2 pp. 50-60


Prepare  E2-5 on page 84

Extra practice Problems

S2-1, S2-2,S2-3



LLS Ch2 pp. 61-65

Prepare  E2-8 on page 84-85




LLS Ch3 pp. 102-115

LLS Ch4 pp183-185

Prepare qn. 11 on page 194 and M4-12 on page 198



Income Measurement and Accrual Accounting

Course Pack Ch. 3

LLS: Ch. 4


Village Appliance Shop



Assignment 3

Due 2/21



Course Pack Ch. 3

LLS: Ch. 4 pp. 162-168

Prepare qns. E3-6 on page 143




LLS: Ch. 4 pp. 169-175

Prepare  M4-2  on page 196

Extra Practice problems S3-1, S3-2



LLS: Ch. 4 pp. 177-182

Prepare E4-18 and E4-19 on page 208-209



Midterm Exam  1

Covers material in Ch. 1-3 of Course Pack and

LLS Ch. 1-4


Revenue Recognition and Accounts Receivable

Course Pack Ch  4

LLS: Ch. 6

pgs. 279-288


Assignment 4

Due 3/6



LLS: Ch. 6

pgs. 279-288

Prepare qn. 4 on page 307 and E6-2  on page 310




LLS: Ch. 6

pgs. 286-294

Prepare  E6-12  and E6-16 on page 313&314resp.

Extra Practice problems

S4-1, S4-2,



Inventory and Cost of Goods Sold

Course Pack Ch. 5

LLS: Ch7



Assignment 5

Due 3/22



Course Pack Ch. 5

LLS: Ch7 331-333;


Prepare qn. 4 on p. 363 and E7-1 on p. 366




LLS: Ch7 338-345


Prepare E7-5 and E7-10 on pgs. 367&369

Extra Practice problems S5-1, S5-2


3/12 -


Spring Break





Inventory and Cost of Goods Sold


LLS: Ch7 357-359

Prepare E7-20 p. 372








Valuation and Reporting  Long Lived Tangible and Intangible Assets

Course Pack Ch. 6

LLS: Ch8




Assignment 6

Due 3/29



Course Pack Ch. 6

LLS: Ch8 387-394


Prepare M8-3 on p. 424 and E8-1 on p. 426

Extra Practice problems S6-1, S6-2



LLS: Ch8 395-410


Prepare E8-15 on page 431





LLS: Ch8 411-419

Prepare M8-17 on page 431



Midterm Exam  2

Covers material in Ch. 4-6 of Course Pack and LLS Ch. 6-8


Statement of Cash Flows

Course Pack Ch. 7






LLS: CH13  637-645

Prepare qn. 1 on page 669

Assignment 7

Due  4/17



LLS: CH13  646-652

Prepare E13-1 on page 672

Extra Practice problems S7-1, S7-2



LLS: CH13  646-658

Prepare E13-15 on page 677









Reporting and Interpreting Long Term Liabilities: Bonds

Course Pack Ch. 8

LLS: Ch 9, Ch. 10





LLS: CH9  470-477;

Skim 457-469

Prepare E9-15 on page 492

Assignment 8

Due  4/26



LLS: CH9  506-523

Prepare E10-7 on page 538

Extra Practice problems S8-1, S8-2







Reporting and Interpreting

Owners' Equity

Course Pack Ch. 9

LLS: Ch 11





LLS: Ch 11 551-559

Prepare E11-4 on page 578

Assignment 9

Due  5/3



LLS: Ch 11 560-567

Prepare E11-11 on page 580

Extra Practice problems

S9-1, S9-2


Review Session





Submission of Annual Report Project




Required Course Materials


The required textbook for the class is Financial Accounting 7th Ed. McGraw-Hill   by Libby, Libby and Short (LLS). The text is by Robert Libby, Patricia Libby and Daniel Short,Financial Accounting7th Ed.,(Custom Edition for New York University), McGraw Hill, New York, 2011. All assignedreadings and homework are from this text.  Lecture notes, solutions, and other course documents are included in a course pack available on Blackboard.  The course pack contains templates for all class slides and illustrative cases and extra practice problems and solutions and you are expected to bring relevant sections to class.


Assessment Components

Grading Policy

Pre Class Reading and  Prep               10%

Homework Assignments                     10%

Midterm Exam 1                                15%

Midterm Exam 2                                 15%

Final Exam                                        35%

Annual Report Project                        15%


Grading Guidelines:

 Grades are determined following the Undergraduate Grading Guidelines for Core Courses:

25 – 35% A’s – awarded for excellent work

50 – 70% B’s – awarded for good or very good work

5 – 15% C’s (or below) – awarded for adequate or below work.


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.



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.



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 believe an inadvertent error has been made in the grading of an individual assignment or in assessing an overall course grade, a request to have the grade re-evaluated may be submitted. You must submit such requests in writing to me within 7 days of receiving the grade, including a brief written statement of why you believe that an error in grading has been made.


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.


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