everything.study
15.511

Financial Accounting

3-0-6 units · Graduate

Introduces concepts of corporate financial accounting and reporting of information widely used in making investment decisions, corporate and managerial performance assessment, and valuation of firms. Students perform economics-based analysis of accounting information from the viewpoint of the user (especially senior managers) rather than the preparer (the accountant). Restricted to Sloan Fellow MBAs.

Summer 2004

Topics

  • Overview and Introduction to Financial Statements
  • The Balance Sheet
  • The Income Statement and Principles of Accrual Accounting
  • The Accrual Accounting Process of Preparing Financial Statements
  • The Accrual Accounting Process of Preparing Financial Statements (cont.)
  • The Accounting Process
  • Statement of Cash Flows
  • Statement of Cash Flows (cont.)
  • Receivables and Revenue Recognition
  • Receivables and Revenue Recognition (cont.)
  • Inventories
  • Long-lived Assets
  • Matching Principle for PP&E
  • Current Liabilities and Contingencies
  • Time Value of Money
  • Long-term Debt and Leases
  • Deferred Taxes
  • Investments, and Business Combinations
  • Business Combinations and Course Review

Readings

  • The chapters are drawn from this text: Stickney, Clyde P., and Roman L. Weil. Financial Accounting: An Introduction to Concepts, Methods, and Uses . 10th ed. Thomson South-Western, 2003. ISBN: 0324183518.
    Listed reading
  • Administrative Matters, Discussion of Accounting Framework Chapter 1 Do: 1-18, 1-21, 1-23
    Listed reading
  • SES #: L2 · TOPICS: The Balance Sheet · READINGS: Chapter 2 · PROBLEMS: Do: 2-11, 2-15, 2-20
    Reading assignment
  • SES #: L3 · TOPICS: The Income Statement and Principles of Accrual Accounting · READINGS: Chapters 2 and 3 · PROBLEMS: Do: 2-27 (Using the Balance Sheet Equation instead of T-accounts), 3-11, 3-21
    Reading assignment
  • SES #: L4 · TOPICS: The Accrual Accounting Process of Preparing Financial Statements · READINGS: Chapters 2 and 3 · PROBLEMS: Do: 2-30, 3-14, 3-19
    Reading assignment
  • SES #: L5 · TOPICS: The Accrual Accounting Process of Preparing Financial Statements (cont.) · READINGS: Chapters 2 and 3 · PROBLEMS: Do: 3-24, 3-27, 3-40
    Reading assignment
  • SES #: L6 · TOPICS: The Accounting Process · READINGS: Case: Wilson, David A. “Chemalite, Inc.” Boston, MA: Harvard Business School, 2003. Case No. 9-177-078.
    Reading assignment
  • SES #: L7 · TOPICS: Statement of Cash Flows · READINGS: Chapter 4, pp. 179-195, 210-214 · PROBLEMS: Do: The Cash Flow Problem
    Reading assignment
  • Financial Statement Analysis Chapter 5 Do: Calculate Ratios for Gateway and Dell Computers
    Listed reading
  • SES #: L9 · TOPICS: Receivables and Revenue Recognition · READINGS: Chapter 6 · PROBLEMS: Do: 6-14, 6-16, 6-19
    Reading assignment
  • SES #: L10 · TOPICS: Receivables and Revenue Recognition (cont.) · READINGS: Chapter 6 · PROBLEMS: Do: 6-24, 6-26
    Reading assignment
  • SES #: L11 · TOPICS: Inventories · READINGS: Chapter 7 · PROBLEMS: Do: 7-25, 7-33, 7-38, 7-45
    Reading assignment
  • SES #: L12 · TOPICS: Long-lived Assets · READINGS: Chapter 8 · PROBLEMS: Do: 8-21, 8-24, 8-37
    Reading assignment
  • SES #: L13 · TOPICS: Matching Principle for PP&E · READINGS: Chapter 8 (cont.)
    Reading assignment
  • SES #: L14 · TOPICS: Current Liabilities and Contingencies · READINGS: Chapter 9 (up to pp. 485)
    Reading assignment
  • Case: Bruns Jr., William J., and Eric J. Petro. “Depreciation at Delta and Pan Am.” Boston, MA: Harvard Business School, 1993. Case No. 9-190-035.
    Listed reading
  • Long-term Debt Case: Bruns Jr., William J., and Susan S. Harmeling. “Accounting for Frequent Fliers.” Boston, MA: Harvard Business School, 1993. Case No. 9-192-040. Do: Assigned problems on Present Value Calculations, Chapter 9
    Listed reading
  • SES #: L16 · TOPICS: Long-term Debt and Leases · READINGS: Chapter 10 (up to p. 546)
    Reading assignment
  • Marketable Securities Chapter 10 (up to p. 556)
    Listed reading
  • Chapter 11 (up to p. 608) Do: 10-29, 10-30
    Listed reading
  • SES #: L18 · TOPICS: Investments, and Business Combinations · READINGS: Chapter 11 (up to p. 635) · PROBLEMS: Do: 11-25, 11-26
    Reading assignment
  • SES #: L19 · TOPICS: Business Combinations and Course Review · READINGS: Chapter 11 (up to p. 635) · PROBLEMS: Do: 11-52
    Reading assignment

Prerequisites & course information

Prereq: Permission of instructor G (Summer) 3-0-6 units Credit cannot also be received for 15.515 , 15.720

Sources