ACC 1000 Fall 2020 Syllabus Tuesday Thursday -1 PDF

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Download ACC 1000 Fall 2020 Syllabus Tuesday Thursday -1 PDF

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Babson College ACC1000: Introduction to Financial Accounting Fall 2020 Professor: Thomas Buttacavoli, CPA- Adjunct Lecturer Office: Luksic 307 Office Hours: Virtual -Tuesday and Thursday- 10:00 A.M. to 11:00 A.M. and by appointment Course Objectives and Plan Financial statements are primary sources of information about a company, a key component of its communication to outsiders, and using that information in decision-making is an essential, everyday dimension of business. The objectives of this course are for you to: 1) achieve a thorough understanding of the concepts and mechanics that underlie corporate financial statements; 2) learn how to analyze and interpret financial statements effectively; 3) develop skills to forecast financial statements as a tool in decision-making. The core of this course is focused on constructing, analyzing and forecasting financial statements. To that end, the RCP case series based on an actual business will be used as the structural foundation to introduce the major course segments and link them together. In general, each major segment – Financial Statement Construction, Financial Statement Analysis and Financial Statement Forecasting – will be use an entrepreneurial venture and use financial data from major corporations. Companies from a wide variety of industries will be used to extend the topic. Mastering financial accounting does not require sophisticated mathematical skills, but it does involve the kind of analysis you would bring to a solving-for-x arithmetic problem or a crossword puzzle. At the same time, it requires the repetition and flexibility needed to achieve fluency in a language. Most students find that as in learning a language, understanding financial accounting and developing analytical skills require plenty of practice. Undergraduate Learning Goals Babson College has four Undergraduate Program Learning Goals. The goals are included below as well as how ACC 1000 supports those learning goals. Collaboration – Collaborate with and learn from others to accomplish a common goal or create an original work. o ACC1000: Students will learn to work in groups as they complete in-class group assignments. Communication – Develop and express ideas strategically, through written, oral, and visual formats, to a specific audience for a desired purpose. o ACC 1000: Using numbers, students will learn to explore, reflect, analyze and communicate critically and effectively about a company’s financial condition as well as its prospects for the future. Leadership – Lead people to work towards shared goals with consideration of the ethical implications of their actions. o ACC 1000: Students will begin to understand the ethical implications of accounting choices and earnings management within GAAP.

Problem-Solving – Analyze and assess ideas and data to make decisions and recommendations appropriate to situations and stakeholders. o ACC 1000: Students will learn to develop, analyze, interpret and forecast financial information to support decision making. The daily learning objectives are explicitly stated at the beginning of each class in the Schedule of Assignments included at the end. Required Materials: The ACC 1000 faculty have authored the text for this course and we are providing it to you free of charge. So, there is nothing to purchase except a calculator (any calculator will do and you can use the calculator for QTM if you want). Course Requirements Your course grade will be based, on your performance on a mid-term, a final exam, group participation through discussion boards, individual participation and quizzes, according to these approximate weights: Quizzes (6 quizzes, top 5 count) Group participation (6 discussion boards) Individual participation Midterm Final exam

18% 12 10 25 35 100%

Classes with graded assignments due: Note: Discussion board assignments are due the night before the class at 8:00 pm. In addition, there are 4 discussion boards that count towards your individual participation. Class 2: Discussion Board: Business Models: Characteristics and Financial Footprints Class 4: Quiz 1: Financial Statement Preparation & Formats Class 6: Quiz 2: Balance Sheet Equation (BSE) Entries Class 7: Discussion Board: RCP financial analysis Class 8: Quiz 3: Adjustments from Cash to Accrual Class 11: Discussion Board: Amazon Cash Flow Analysis Class 12: Quiz 4: Statement of Cash Flows Class 14: MIDTERM Class 18: Discussion Board: Financial Statement Analysis Class 18: Quiz 5: Ratio Analysis Class 21: Discussion Board: Maria’s Opportunity: what additional data should she seek? Class 24: Discussion Board: Identify risks and propose management actions to mitigate risks Class 25: Quiz 6: Forecasting Final 11/30-12/4: TBD: Analysis, Opportunity Assessment and Forecasting only

Please note that any student who is entitled to an academic accommodation based on a documented disability should visit the Office of Disability Services located in Hollister. Also, please let me know outside of class so that we can arrange accommodations.

Exams – Please note exam dates now, as no excuses are granted except for medical reasons (and then only through your class dean). Students usually find that the best way to prepare for exams is to prepare carefully and promptly for each of the classes that precede them. Quizzes – All are announced (in the assignment listing below), and all will involve basic questions or problems. If you attend classes and prepare the assigned reading and homework problems on time, you will find the quizzes manageable. Depending on the course pacing, the quiz timing may be adjusted slightly throughout the semester. There will be six quizzes throughout the semester, of which your top five will count. There are no make-up quizzes. There are also a number of developmental knowledge checks. These are not mandatory, will not be collected and will not count towards your final grade. These will allow you to do a quick assessment of your knowledge and retention of specific topics. You will also be asked questions during the synchronous sessions using Poll Everywhere to collect your responses. You are expected to participate in these polls; however, they will not affect your grade. They are designed to help you, as well as me, see how well you understand the materials. Group Participation: Group participation will be graded through the group discussion board posts. Six will require a final group post & will be the basis for your group participation grade. You will be assigned to two different groups throughout the course of the semester and will be asked to respond to group posts. This is a great opportunity for you to get to know some of your classmates more closely and learn from your peers. These discussion boards are only available for your group members to see your individual posts and the faculty member. You will post individually to the discussion board to “discuss” the topic with your other group members and then will come together to create a final post that represents the group post. There are also four discussion boards that are not graded as a group post. Participation is still expected in these non-graded discussions boards. Individual participation grades will be based on the non-graded discussion boards as well participation in the synchronous sessions (see below). Faculty will be looking at individual posts to ensure that students are actively engaging in the discussion. If not, this will affect your individual participation grade and may also affect your group participation grade. Class Preparation and Participation – Class participation and professionalism are expected. It is expected that if you are not in the classroom and are attending the class virtually that you have your video camera on to count your attendance at class. (If you need to request an exception to this policy, please send an email to me documenting the reason why and then we can discuss and I can make a final determination). The most important requirements for this course are thorough preparation and thoughtful analysis of the assigned reading material and problems, as well as active participation in class discussion. I expect all of these from you throughout the semester (though not necessarily perfectly). Key components of this course are your questions and discussion of the topics. The most effective way to learn this material is to apply it through problem-solving and conversation. Working in small groups on the homework assignments may be helpful, particularly with new topics. In every class, I will call on some of you, chosen randomly, not to trap or embarrass you, but to encourage your engagement with the material and to help me know where we are as a class. Probably the only real mistake you can make in this course is to cut class. If you must miss a class, please let me know in advance. Missing more than one class will adversely affect the class participation portion of your grade. Note, also, that the most valuable contributions to class discussion are often your questions. I encourage you to ask early and often. Laptops are for classroom activities only and should otherwise be closed.

I view the classroom as an opportunity for you to practice developing your voice and your point of view. Once you leave Babson, having a voice wherever you work will be critical to your future success. You can meet with me during office hours to discuss your class participation performance throughout the semester; however, the following should provide you guidance on the grading criteria for class participation. Outstanding (A/A-) ● a student whose comments are insightful and/or raise questions that move the conversation to a deeper level; always prepared to answer questions posed; always professional. Notable (B+/B/B-) ● a student whose comments clarify issues, are relevant and/or raise questions that no one else is willing to; usually prepared to answer questions posed; almost always professional. Minimal (C+/C/C-) ● a student who chooses not to participate or whose comments are either repetitive or off-track; unprepared to cope with questions posed; displays unprofessional behaviors (see below); often absent from class. Failing (D/F) ● consistently displays unprofessional behaviors (see below); frequently absent from class. Displaying professional behaviors, such as the following, will factor strongly into my assessment of contribution: ● ● ● ● ● ● ●

being on time to class; attending all classes; attending to personal needs and business before or after class; not walking in and out during class time; demonstrating respect for fellow students and the professor; being prepared for class; Electronic devices should only be used for course related work.

SPARK “Supporting Peers As Resources for Knowledge” Tutoring Program: In addition to meeting with me throughout the semester, Babson offers this great program which provides you free access to peer tutors in financial accounting. These peer tutors are chosen through a selective process and are trained to help students support their overall understanding concepts and skills. They are a great resource and I highly encourage you to use them if you are finding the material challenging. You can find more information on the SPARK Peer-Tutoring page on the Hub for Students and you can set up an individual appointment with a peer tutor through the following link: https://babson.mywconline.net/ Religious Observances: With regard to absence due to religious observance, Babson College welcomes and values people and their perspectives and respects the interests of all members of our community. Any student who faces a conflict between the requirements of a course and the observance of his or her religious faith should contact the instructor as early in the semester as possible. In such an event, the instructor will provide reasonable accommodations that do not unduly disadvantage the student.

Academic Integrity In this course, you are required to abide by the College’s Academic Integrity Policies and Procedures as outlined in Babson’s Student Code of Ethics. Please review the College’s Student Code of Ethics in its entirety, as it is your responsibility to take the appropriate steps to ensure your understanding of the Code. Ignorance of the policies is not a valid excuse for any violations. Academic integrity is important for two reasons. First, independent and original scholarship ensures that students derive the most they can from their educational experience and the pursuit of knowledge. Second, academic misconduct violates the most fundamental values of an intellectual community and diminishes the achievements of the entire college community. Accordingly, Babson views academic misconduct as one of the most serious violations of the College’s expectations that a student can commit while at Babson College. Specific behaviors that constitute academic misconduct, as defined in the Code, are cheating, fabrication, facilitating academic dishonesty, plagiarism, participation in academically dishonest activities, and unauthorized collaboration. In the instance, I am presented with evidence to suggest that you engaged in any of these behaviors, I would refer the incident to the Office of Community Standards for review. For your coursework, you are required to affirm your understanding of and commitment to the academic honesty and integrity expectations set forth in the Code. You will be asked to write the following pledge on every exam, paper, project, or other academic exercise: “I have abided by the Babson Code of Ethics in this work and pledge to be better than that which would compromise my integrity.” If you have questions relative to academic integrity expectations within the context of a particular assignment, please ask me directly. General questions can be directed to [email protected]. Conflict Navigation Services Conflict – especially when working in groups – is a normal, healthy, and expected part of life and ideally is viewed as an opportunity to strengthen relationships, improve efficiency, and rectify underlying concerns that often otherwise go unaddressed. Resolving conflict is a vital part of the educational journey of the Babson student and entrepreneur and requires your active participation and skill

Classroom Attendance / Face Mask Policy Students are reminded that all activities at Babson, including in-person class attendance, are subject to important Covid-19-related safety parameters, including the Babson College Face Mask Policy for Students. These precautions protect all members of the community and aim to ensure, to the greatest extent possible, that on-campus learning and in-person activities remain possible. Face masks are mandatory and must be worn correctly at all times in all Babson classrooms (including entry and exit to class) and during all interactions with Babson faculty and staff. You can expect that your professor and any staff assistants will also be complying with this Babson policy. Students also should not attend any class in person if they are sick or feeling ill; instead, they should inform the instructor and attend class online instead. All community members must take personal responsibility for following the safety guidelines and reminding others to do the same. The college takes community health and interference with other students’ learning very seriously. To that end, students failing to wear masks correctly will be asked by the instructor to put on a properly fitted mask or to leave the classroom. Any student who fails: (i) to comply with the college mask policy is subject to Babson’s Student Code of Ethics and/or (ii) who fails to leave a classroom immediately upon request by the instructor will be addressed by Public Safety.

Schedule of Assignments

I. FINANCIAL STATEMENTS: CONSTRUCTION Class 1: Tuesday August 25

Financial Statements: Introduction Learning Objectives: ● Identify & define the basic elements of financial statements. ● Discuss the purpose of a balance sheet. ● Discuss the purpose of an income statement. ● Begin to link industry business models to financial statement footprints. Reading: Chapter 1: Business Models and Financial Statement Formats (1-15) View Video: Introduction of Balance Sheet and Income Statement Assignment to be prepared before class: Problems 1 & 2 (Balance Sheet and Income Statement Problem Set 1). Read the business model company descriptions. Start to think about what kinds of items might appear on these companies’ financial statements based upon the descriptions. In-class: Handouts focused on the business models and financial statements for very different industries: Computers & Electronics (Apple), Food Service (Chipotle) and Luxury Goods (Tiffany’s)

Wednesday August 26 Discussion board post due by 8:00pm (Group graded): Complete the required answers for the discussion board about the Business Model Activity.

Class 2: Thursday August 27

Financial Statements: Introduction Learning Objectives ● Identify & define the basic elements of financial statements. ● Discuss the purpose of a balance sheet. ● Discuss the purpose of an income statement. ● Link industry business models to financial statement footprints. Reading: Chapter 1: Business Models and Financial Statement Formats (1-15) Assignment: Complete Handout Business Model Problem from Class 1. (Post to discussion board by 8:00 pm the night before this class). Problems 1, 2 & 3(Balance Sheet and Income Statement Problem Set 2). In-class (possible) – developing financial statements from a list of accounts: Cycle Forever1: The Beginning

Class 3: Tuesday Sept. 1

Building Financial Statements and Transactions Analysis Learning Objectives ● Construct income statements and balance sheets in good form. ● Construct a roll-forward of retained earnings. ● Use transaction analysis to record business events in the Balance Sheet Equation (BSE) format. Reading:

Chapter 2:Financial Statement Contstruction Use the BSE

View Videos: Building an Income Statement and Balance Sheet and Cash and Accrual Accounting Assignment: (Balance Sheet and Income Statement Problem Set 3) In-class introduction of BSE: BSE Handout In-class (possible)—Unidentified Industries: Business Models & Footprints

Class 4: Thursday Building Financial Statements and Transactions Analysis (continued) September 3 Learning Objectives ● Construct an income statement using multiple-step income statement format. ● Discuss differences between income measurement and cash flows. ● Use transaction analysis to record transactions in the Balance Sheet Equation (BSE) format. ● Build financial statements from completed transaction analyses. Reading: Chapter 2:Financial Statements and the BSE (pages 5-16) View Video: BSE Recap Assignment: Complete BSE hand-out from the previous class for month 2, Problems 1, 2, 3, 4, & 5 (BSE Problem Set 1) & Cycle Forever 2: Financial Statement Formats. What is Missing? In-class: Introduction of Mario’s Case BSE for Year 2 Quiz 1 (Balance Sheet and Income Statement Preparation)

Monday September 7 Discussion board post due by 8:00pm. Complete the required answers for the discussion board about Mario’s Financial Performance

Class 5: Tuesday Accrual Basis and Income Measurement September 8 Learning Objectives ● Discuss and calculate differences between cash flows and accrual based income measurement. ● Apply & discuss the matching principle used when recognizing revenues and expenses. ● Use transaction analysis to record transactions in the Balance Sheet Equation (BSE) format. ● Build financial statements from completed BSE transaction analyses. ● Begin to discuss how to evaluate company performance. Reading: Chapter 2:Financial Statements and the BSE Assignment: Complete Mario’s BSE for Year 3 and Year 4 and Problems 1, 2, & 3 (BSE Problem Set 2). Discussion board post needed by 8:00 pm the night before this class. In Class: Evaluate Mario’s three year performance. Introduce RCP A

Class 6: Thursday Accrual Basis, Income Measurement and Operating Cash Flows September 10 Learning Objectives ● Construct financial statem...