University of Texas at Dallas

AIM 2301 – Introduction to Financial Accounting

Fall 2005
Section 502: Wednesday 7:00-9:45 (SOM 1.217)

Instructor: Xu Li
Office: SOM 4.427
Phone: 972-883-6385
Email: xu.li@utdallas.edu
Office Hours: Monday 1:30-3:30 PM or by appointment

Teaching Assistants: Ling Liu

Office: SOM 4.211
Phone: 972-883-4924
Email: dianehu@utdallas.edu
Office Hours: Monday 9:00 – 11:00 AM or by appointment

Supplemental Instructor: Ryan Hellen

Phone: 469-450-4416
Email: aceryno34@yahoo.com
Time and location of review: Pending

Course Description and Objectives:

The presentation will consist of moderately technical expositions of concepts and material,
however, the primary focus will be that of the user, rather than the preparer of accounting
information. Throughout the course we will illustrate applications of accounting principles with
real examples (e.g. AOL, Xerox, Boston Chicken, etc.)

Course Prerequisites:
The course has no formal pre-requisites and no special skills are necessary. The quantitative
aspects of the course will require only elementary computational skills; however a calculator will
be required.

Course Materials
The following textbook is required: Financial Accounting-The Impact on Decision Makers
(The Alternatives to Debits and Credits) 4th Edition by Porter and Norton. Any associated study
guides are optional.

Policies on Grading and Attendance

It is critical to your success that you attend each session, thus attendance will be taken at each
class. Office hours are not a substitute for coming to class, therefore, I will not go over material
covered in class with you if you have missed class. More importantly, there will be numerous
handouts (sample problems) distributed in class which you may use on the exams. Unless you
have prior approval from the instructor, you must attend the section for which you are
registered. It is the student’s responsibility to sign-in at the beginning or end of each class.
Attendance prior to the last ADD day (August 24th) will not be used for grading purposes. You
are allowed one “free” missed class-day without affecting your attendance grade.
The overall course grade will be comprised of the following:
Exam #1 ........ 20 %
Exam #2 ........ 30 %
Final Exam ..... 40 %
Attendance ..... 10 %
TOTAL 100 %

EXAMS
1. All exams will be in-class, open-notes exams. “Open-notes” means that you may utilize any
handwritten notes taken in class as well as out of class materials (such as homework problems)
and any handouts from class. The use of any textbook will not be permitted on exams. Unless
you have prior approval from the instructor, you must take the exam in the section for which you
are registered.

2. You are not permitted to use any electronic communications devices during the exam. This
explicitly includes cell phones and pagers. You are not permitted to use a portable computer on
the exam. You are strongly urged to leave any electronic devices (except calculators) at home or
in a locker on the day of the exam.

3. Exams will be given in the class and you are expected to bring your own calculator.

4. All students are required to present proof of identification at the time of the exam. Acceptable
documentation must be a picture-identification such as official UTD Comet Card, Passport, or
State approved driver license.

Missed Exams:
5a. To receive a passing grade in the course, students MUST take all exams. Under no
circumstances, none, zero, will a student be allowed to “substitute” one exam for a missed exam.

5b. Students missing an exam should contact me prior to the scheduled exam time (unless an
emergency situation arises which makes it impossible). Students with anticipated absences (such
as a documented university sponsored event) should contact me prior to the absence. Failure to
take the make-up exam at the agreed time and place will result in a grade of zero.

5c. If the makeup exam is not taken within 6 days, the student will receive a grade of zero. If the
students fail to take the makeup exam at the rescheduled time they will receive a grade of zero.

5d. Students are not permitted to attend class until they have taken the make-up exam.

5e. Students are only allowed to take one make-up exam during the semester. A student who
misses an exam second time will not be allowed to take a make-up exam and will receive a zero
on the missed exam.

6. MAKE-UP EXAMS WILL BE A DIFFERENT EXAM THAN THE ONE GIVEN IN CLASS AND WILL BE
CLOSED-BOOK, CLOSED NOTES. YOU WILL NOT BE ALLOWED TO USE ANY CLASS MATERIALS
ON MAKE-UP EXAMS.

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 Disposition of Exams
7. As per school policy, exams will be retained for one year and then destroyed.

Use of Computers and Recording Devices

Audio or videotaping of class lectures is prohibited. Students may use laptops to record their
notes subject to the following provisions: (1) the computer must be silent with speakers muted,
(2) THE COMPUTER CANNOT BE CONNECTED TO THE INTERNET. Students failing to follow these
rules will be asked to leave the classroom. Under no circumstances will students be allowed to
use their computers on exams. Students may print one copy of their notes for their exclusive use
on the exam if they desire, but they are prohibited from distributing their notes.

Academic Dishonesty
Candidates are expected to be above reproach in scholastic activities. Candidates who engage in
scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in
the course and dismissal from the University. “Scholastic dishonesty includes, but is not limited
to cheating, plagiarism, collusion, the submission for credit of any work or materials that are
attributable in whole or in part to another person, taking an examination for another person, any
act designed to give unfair advantage to a student or the attempt to commit such acts.” 1 Since
scholastic dishonesty harms the individual, all candidates, and the integrity of the University,
policies on scholastic dishonesty will be strictly enforced.

1
(Regents’ Rules and Regulations, Part One, Chapter VI, Section 3, Subsection3.2, Subdivision 3.22

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Week Date
Tentative Topic Class Assignment
1 8/24 Chapter 1 - Introduction to Financial Statements Read: pp 4-22
Exercise 1-1, 1-3, 1-7, 1-12, Problem 1-5
Chapter 2 - Balance Sheet Read: pp 57-76
Terminology - Classifications Exercise 2-4, 2-9, Problem 2-3
Accounting equation

2 8/31 Chapter 4 - Income Statement : Read: pp156-165

Revenue and Expense recognition Exercise 4-4
matching principle Example: Xerox
accrual accounting
Begin class sign-in
Adjusting Entries Read: pp170-182
Exercises 4-5, 4-7
3 9/7 Relationship of I/S and B/S Problem 4-4
dividends and retained earnings

Intangible Assets Read: pp 382-388

Delaying Expense Recognition Example: AOL
Advertising and R&D
expensing versus capitalization

4 9/14 Chapter 13 - Financial Ratios Read: pp 666-670

Exercise 13-4 (skip part 3)
Chapter 6 – Current Assets Read pp 263-270
Accounts Receivable Exercise 6-8 (ignore direct write-off), 6-9

Review for Exam

5 9/21
EXAM #1
6 9/28 Notes Receivable/ Ratios Read: pp 270-275
Example: Boston Chicken
Chapter 7 – Inventory Read: pp 298-304
LIFO/FIFO/WAVE pp 310-320

7 10/5 Chapter 8 – Non-current Assets Read pp 366-376

Depreciation methods Exercise 8-3, 8-4, 8-5

Asset Disposals and Gains/Losses Read pp 377-381

Exercise 8-6
Example: Waste Management
8 10/12 Chapter 9 – Current Liabilities Read pp 419-424
Exercise 9-2
Valuation of Long Term Liabilities Read: pp 433-443
Future Value Exercise: 9-16, 9-17
Present Value

Review for Exam

9 10/19
EXAM #2

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10 10/26 Chapter 10 – Bonds Read: pp 489-497
Introduction: Coupon, Interest Rates Example: Transaction Systems Architects

Bonds Read: pp 498-500

Interest Expense Exercise: 10-4
Gains / Losses

11 11/2 Leases Read: pp 501-507

Classification of Capital vs. Operating Exercise: 10-9
Lease Calculation

Chapter 12 – Statement of Cash Flow Read: pp592-607

12 11/9 Constructing Statement of Cash Flows Read: pp617-619

Chapter 11 – Owners Equity Read: pp 536-553

Common, Preferred, and Treasury Stock Exercise 11-3, 11-6, 11-8
Dividends

13 11/16 Financial Statement Analysis Read: pp 674-678

Ratios: EPS
Debt-to-equity

Review for Exam

14 11/23
EXAM #3