UT Dallas Syllabus For Aim6305.ot1 06s Taught by Surya Janakiraman (Suryaj)

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COURSE SYLLABUS

School of Management
The University of Texas at Dallas

Course: AIM 6305/MBAO 6311 – Accounting for Managers


Instructors: Dr. Mark Anderson and Dr. Surya Janakiraman
Semester: SPRING 2006

| Course Information | Technical Requirements | Course Access | Communications |


| Student Assessment | Scholastic Dishonesty | Course Evaluation | Course Outline |

Course Information
Course Description

Welcome to AIM 6305/MBAO 6311 with Dr. Mark Anderson and Dr. Surya Janakiraman. This
course is organized into two parts – Financial Accounting (Anderson) and Managerial
Accounting (Janakiraman). Financial accounting deals with financial reports prepared for
external parties such as shareholders and creditors whereas managerial accounting deals with
the preparation and use of financial information by internal decision-makers.

Part I – Financial Accounting

The objectives in the financial accounting part are to help students obtain skills in reading and
using information in financial statements. The financial accounting section includes five
modules.

The first module on Financial Reporting begins by introducing students to a business-process


perspective of the activities of a company. The purpose of a business is to add value to the
products and services that it sells. Accounting would be simple if all transactions were cash
transactions and businesses bought and sold everything they used during a period. But there
are often timing differences between the payment for and use of an input or between the receipt
of cash and the sale of an output. These timing differences lead to accruals and deferrals which
distinguish financial reporting from cash-based accounting.

A business employs people and physical assets to convert inputs into outputs. The second
module on Acquisition and Payment describes how the acquisition and use of long-term assets
such as buildings and equipment are accounted for. It also illustrates accounting for the
purchase and subsequent sale of inventory.

A business must sell its products and collect cash. The third module on Sales and Collection
deals with issues in accounting for sales and cash. The timing of revenue recognition drives
accrual accounting because expenses are matched with revenues. Cash itself is an important
resource that needs to be managed and safeguarded so students will learn how companies
prepare bank reconciliations to ensure that cash is accounted for properly. When companies
sell on credit or provide warranties on their products, there is uncertainty about the amount and
timing of future payments. Students will see how bad debt costs and warranty costs are
anticipated and accounted for when the initial sales are made.

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Companies obtain money to finance their operations by borrowing from lenders or by selling
shares of stock (equity) to investors. The fourth module on Accounting for Business Financing
will distinguish between debt financing and equity financing of a business. It will demonstrate
how borrowings, repayments and interest on debt are reflected in the financial statements. It
will also show how information about the sale or repurchase of shares and the payment of
dividends is conveyed in the financial statements.

Two main objectives of the financial accounting part of the course are featured in the fifth
module on the Analysis of Cash Flows and Financial Statements. The first is to help students
understand how financial statements provide information about the operating, investing and
financing activities of the company. This understanding is fortified by preparing a statement of
cash flows using information from the other financial statements. The second is to use financial
statement information to analyze the performance and financial health of a company. This
analysis is organized by evaluating financial ratios that provide information about profitability
and risk.

A variety of types of learning opportunities are provided throughout the financial accounting part
of the course. Each module gives students a mixture of notes to read, video clips to view,
lectures to listen to and textbook assignments to read. Self-study quizzes are provided
periodically to help the student assess learning. Working through assigned exercises and
problems from the textbook is critical to understanding the concepts and is the most effective
means of preparing for the tests. Solutions for assigned problems are provided but students are
strongly encouraged to work through the problems before peeking at the solutions.

Students will be organized into study groups. Each group will be responsible for preparing and
submitting solutions to internet exercises for modules 1 thru 4 and for preparing a financial
analysis of a publicly-traded company for module 5. The internet exercises require students to
access financial statements and other information provided by publicly-traded companies.
Teams will select a publicly-traded company to analyze in module 5.

Grading for the financial accounting section is as follows:

Internet Assignments – Modules 1 thru 4 10 points


Financial Analysis Project – Module 5 10
Test #1 – Modules 1 and 2 15
Test #2 – Modules 3 - 5 15
50 points

Part II – Managerial Accounting

This part of the course provides an introduction to accounting techniques used by managers
when they are faced with planning, directing, controlling and decision-making activities in their
organizations. Accounting information can be used to identify and analyze alternatives and to
guide the manager to a course of action that will yield the greatest benefit to the firm. While the
major emphasis in financial accounting is on the accumulation and presentation of accounting
data to external decision makers, the emphasis in managerial accounting is on the presentation
and analysis of accounting data by internal decision makers.

One of the main objectives of the Managerial Accounting part of the course is to familiarize you
with the requisite technical skills for problem solving; for example, determining unit product

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costs, measuring production process costs, budgeting, performance reporting, allocating
resources efficiently within the firm, and maximizing profits while maintaining the ability to meet
long-term goals. As mangers, you will need to identify the relevant information, the appropriate
method for analyzing that information, and the manner in which to communicate your
observations and recommendations to others in the organization. This part of the course is
structured in a manner so that the course contents will help you to develop these skills.

Learning is a complex process. Various aspects of this course have been designed to help you
with the learning process. I am giving below a set of guidelines which may help you to get the
maximum benefit out of the managerial accounting portion of the course. Of course, the
learning process is highly individualistic and hence you may want to explore and find out what
works best for you.

(i) Text book: I would strongly encourage you to read the textbook on an
ongoing basis (and not just before a quiz or exam!). This helps you in two ways.
First, this will reinforce the concepts that are discussed in the lectures. Second,
it will also help you to get the maximum out of future lectures since some of the
same key concepts tend to repeat over and again in the course. For each
lecture, I have indicated the chapter(s) from the text book that you need to be
familiar with. Please spend at least an hour or two reading the text book before
and after you go through the PowerPoint file for each lecture. PowerPoint
lectures closely follow the contents in the text book. However, please keep in
mind that the PowerPoint lecture does not cover every aspect discussed in the
book and not everything discussed in the PowerPoint lecture can be found in the
text book. You will be held responsible for everything in the textbook and the
contents of PowerPoint in quizzes and exams.

(ii) Practice Problems: I have provided to you suggested solutions to selected


problems from your textbook for each module. You should try to solve these
problems on your own (i.e. without looking at the suggested solutions first) as
soon as you go through the PowerPoint file and after reading the chapter from
your book. This will really help you to test your understanding of the material
covered in the book and the lecture. It is imperative that you solve the problems
that are identified as “core assignment material” for each of the module. Also, it
is a good idea to try to solve as many problems as possible, in addition to the
problems in the “core assignment material” as this will help you to absorb the
concepts. Just like any mathematics course, the more problems you solve, the
better off you are in an accounting course!

(iii) Graded Quiz: You will be taking 1 graded quiz during the managerial
accounting portion of the course. The purpose behind the quiz is to test your
basic understanding of the course material. At least 25% of the quiz questions
will be similar to the “core assignment material”. I expect you to carefully go
through the PowerPoint files, read the relevant chapters in the text and work out
as many problems diligently as possible before you sit for the quiz. All the quiz
questions are going to be in “multiple choice” format. They can involve
conceptual thinking or problem solving or both.

(iv) Exam: There is one exam at the end of the managerial accounting part of the
course. The exam is not cumulative (However, you should remember that the
concepts that you learn are often cumulative in the sense they may be based on

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material covered in the first half of the course). Again, at least 25% of the
questions in the exam will be similar to the core assignment material. The
questions in the exam can include “True or False”, “multiple choice” and
“structured problems”.

(v) Practice quizzes: For each module, I have provided you a self-assessment
quiz. You should take this quiz after going through the PowerPoint lecture(s) for
the module, the practice problems and the relevant chapters from the textbook.
You will get immediate feedback to these quizzes. However, the grades you
obtain in these quizzes will not affect your course grade. They are just for your
feedback. Quizzes and exams will include a few questions that are very similar
to the practice quiz questions.

Grading for the managerial accounting section:

1 quiz 10 points
1 exam 30
Group project 10
50 points

Instructor Information

Here is our other contact information:

Mark Anderson e-mail: [email protected] Office: SM 4.813


Telephone: 972-883-2056 Fax: 972-883-6811

Surya Janakiraman e-mail: [email protected] Office: SM 4.806


Telephone: 972-883-6370 Fax: 972-883-6811

Teaching assistants will also be available to help you throughout the course. They will introduce
themselves and provide you with contact information through the main discussion board.

Course Materials

The two required textbooks for this class are:

Financial Accounting: A Business Process Approach


by Reimers (1st Edition), published by Prentice-Hall

Introduction to Management Accounting


by Horngren, Sundem and Stratton (13th Edition), published by Prentice-Hall

Both books may be purchased together for a package price that is approximately equal to the
cost of one book purchased singly. The ISBN number for the package is 0-53-694215-3.

If you prefer to purchase the Reimers book independently, the ISBN number is 0-13-022266-6.
The ISBN number for the Horngren book (chapters 1-14) separately is 0-13-144071-3.

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Textbooks and some other bookstore materials can be ordered online through MBS Direct
Virtual Bookstore. They are also available at the UTD Bookstore and Off-Campus Books in
Richardson, TX.

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Important, Time-Sensitive Requirement


Study teams will be formed immediately at the start of the course. To facilitate the process,
the following information, formatted as shown below, must be sent to Mark Anderson
immediately upon logging in to the course via WebCT e-mail.

1. Last Name; First Name; Degree Program and Expected Graduation Semester
2. Day-Time Telephone Number and FAX Number; Day and Evening e-Mail Addresses
3. Collegiate Degree(s) Earned; Year(s) Earned; Name(s) of the Granting Institution(s)
4. Number of Earned Collegiate Semester Hours of Accounting; Where Earned (Institution)
5. Name of Current Employer; Your Position or Title; Months with Employer
6. Short Summary of Prior Business Experience with Most Recent Experience First
7. A Short Statement of Your Career Objectives and How You Expect This Course to Help
8. Times and Days of the Week that You Are Available to Work on this Class

Technical Requirements
See technical support under login instructions at uttc.blackboard.com

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Course Access and Navigation


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Communications
The Discussion boards are information areas where students communicate with each other,
the instructor and teaching assistants. Anytime you would like to ask other students in this
course a question or discuss a particular issue you should use the Discussion boards. Be
sure to visit often (at least twice a week). Separate discussion board threads will be used
for discussion board cases. Group discussion boards and chat rooms will be available for
collaboration between group members.

Interaction with Instructor: Instructors will communicate with students mainly through course
Discussion boards. Students may send personal concerns or questions to the instructors using
the course Email tool. Instructors will reply to student emails or Discussion board messages
within 2 working days under normal circumstances.

NOTE: Email sent to the instructor asking questions that would more appropriately be
answered in the general discussion area will be returned and the student will be
asked to post the question to the Discussion board. Only send Email if you have a
private issue, such as a question about your grades. Soft skills that you should learn in this

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class include skills in communication and the use of technology to communicate as a
member of a community. Take advantage of this opportunity to learn skills that will benefit
you in the workplace.

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Student Assessment
Grading Information

Test for modules F1 and F2 15


Test for modules F3 thru F5 15
Team assignments for modules F1 thru F4 at 2.5 points each 10
Financial Team project: Analysis of a Company 10
Quiz for modules M1 and M2 10
Exam for modules M3 thru M5 30
Managerial Team project 10

Total 100

Group Assignments

Groups will be assigned at the beginning of the class. Each group will have a chat room and
discussion board.

Tests/Quiz/Exam

The test for each module will be accessible during the days indicated in the class schedule.
You will download the test in Word format, answer the questions and then return the test as if
you were submitting an assignment. You should download the test and return it within a three-
hour time period.

Here are the instructions for accessing the tests.


1. Go to Evaluation Tools -> Tests -> then select the test and download the file

To submit the completed test:


1. Select “Upload File”
2. Browse for the desired file
3. Select “Submit Assignment”

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Scholastic Dishonesty
The University has policies and discipline procedures regarding scholastic dishonesty. Detailed
information is available on Scholastic Dishonesty web page. All students are expected to
maintain a high level of responsibility with respect to academic honesty. Students who violate
University rules on scholastic dishonesty are subject to disciplinary penalties, including the
possibility of failure in the course and/or dismissal from the University. Since such dishonesty

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harms the individual, all students and the integrity of the University, policies on scholastic
dishonesty will be strictly enforced.

Course Evaluation
As required by UTD academic regulations, every student needs to do an evaluation for each
enrolled course at the end of the semester. An online instructional assessment form will be
made available for your confidential use. Please look for the course evaluation link on the
course Homepage towards the finishing of the course. Your feedback and comments are greatly
appreciated.

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Course Outline

MODULE DATES TOPIC/LECTURE READING ASSIGNMENT /


ACTIVITY
Financial Accounting

F1 1/9 to 1/18 Financial Reporting 3-31, 44-61, 83- Internet


100, 103-109 exercises for F1
due 1/18

F2 1/19 to 1/29 Acquisition and Payment 169-186, 211- Internet


224, 226-227, exercises for F2
229-232 due 1/29

F3 1/30 to 2/8 Sales and Collection 255-272 Internet


exercises for F3
due 2/8

Test 1 2/9 to 2/12 Covers Modules F1 and F2 Test 1 due 2/12


F4 2/13 to 2/19 Debt and Equity Financing 295-301, 347- Internet
359 exercises for F4
due 2/19

F5 2/20 to 2/26 Analysis of Cash Flows and 382-394, 415- Work on


Financial Ratios 420, 423-434 project #1
Project #1 2/27 to 3/1 Project #1 due
3/1
Test 2 3/2-3/5 Covers Modules F4 and F5 Test 2 due 3/5

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Managerial Accounting
M1 3/13 to 3/19 Introduction (Module M1A) Chapter 1

Cost behavior (Module M1B) 42-48, 87-92


M2 3/20 to 3/26 CVP analysis (Module M2A) 49-68

Cost estimation (Module M2B) 93-109


M3 3/27 to 4/2 Cost management systems and Chapter 4
activity based costing (Module
M3)
Quiz 3/31 to 4/2 Covers Modules M1 and M2 Quiz due 4/2

M4 4/3 to 4/4/9 Relevant information analysis Chapter 5


(Module M4A)

Relevant information analysis


(Module M4B) Chapter 6

M5 4/10 to 4/16 The master budget (Module Chapter 7


M5A)

4/17 to 4/23 Flexible budget and variance Chapter 8 Project #2 due


analysis (Module M5B) 4/23
Exam 4/28 to 4/30 Covers Modules M3 thru M5 Exam due 4/30

Internet Exercises - Financial

The team assignments are taken from the Internet Exercises included at the end of each
chapter. The directions for getting to the Internet exercise company link given in each chapter
are not quite complete. Go to www.prenhall.com/reimers. Then click on “Student Resources”.
Then, click on “Internet Exercise Company Links” under any chapter. A direct link is also
provided in the modules section of this course. The team assignments are not intended to take
a long time – they are intended to get you reading some financial statements and talking to each
other about them. Answers to the questions should be concise. I don’t like reading long
answers when a short answer is sufficient.

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Project # 1 (Financial) – Analysis of Two Competing Companies
You should not wait until the last week of financial accounting to begin the
project. You should start thinking about it as soon as group assignments
are made. You can go ahead and look at the financial ratios part of
module F5 in advance.

Notes:

1. Use “Analysis of Financial Information”, pp. 423-436 as a guide.


2. Annual reports (10Ks) may be obtained at
http://edgarscan.pwcglobal.com/servlets/edgarscan

You may use the Excel versions of the financial statements if they are available.

Questions:

1. Select two publicly-traded U.S. companies that compete directly with each
other (eg. Home Depot and Lowes). Send your selection to Dr. Anderson for
approval.

2. For the most recent three years for each company, compute ROE and ROA
and other ratios described in exhibit 11-8, p. 426. You will have to use more
than one annual report to get all of the numbers.

3. Also prepare common-sized income statements (vertical analysis) for the


most recent three years.

4. Make a comparison of the performance and financial health of the two


companies in terms of profitability and risk (liquidity and solvency).

5. Comment on the information found in the cash flow statements for each
company, e.g., what are the primary sources and uses of cash? How stable
are the major sources of cash? What activities consume the preponderance
of the cash?

6. Comment on the business (economic), financial, operating and technological


risk facing the Company.

7. Would you invest your personal or corporate assets in either company? Why
or why not?

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