University of Texas at Dallas

AIM 2301 – Introduction to Financial Accounting

FALL 2005
Section 001 – Tuesday/Thursday 9:30am-10:45am (SOM 1.217)
Section 002 – Tuesday/Thursday 11:00am-12:15pm (SOM 1.217)

Instructor: Xiaohui (Gloria) Liu

Office: SOM 4.802
Phone: 972-883-4187
Email: xiaohui.liu@utdallas.edu or by webct
Office Hours: Thursday 2:00pm-4:00pm or by appointment.

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.

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:
Ö 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.

Course Policy on 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 two “free” missed class-day without affecting your attendance grade following
August 24th.
Grading Policy:
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 the text or any photocopied materials (including notes
and study guides) 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 lecture room, SOM 1.217.

4. All students are required to present proof of identification at the time of the exam. Acceptable
documentation must be picture identification such as official UTD Comet Card, Passport, or
State approved driver’s 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 a second exam will not be allowed to take a make-up exam and will receive a zero on the
missed exam.

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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.

Disposition of Exams: 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 08/18 Introduction to Course

2 08/23 Chapter 1 – Accounting as a Form of Read: pp 4-22

Communication Exercise 1-1, 1-3, 1-7, 1-12, Problem 1-5
08/25
Read: pp 57-76
Chapter 2 – Financial Statements and the Annual Exercise 2-4, 2-9, Problem 2-3
Report
• Terminology - Classifications
• Accounting equation
3 08/30 Chapter 2 – Financial Statements and the Annual
Report
09/01 • Accounting equation and transactions
Chapter 4 - Income Measurement and Accrual Read: pp156-165, pp170-182
Accounting Exercise 4-4,4-5, 4-7
• Revenue recognition
• Matching principle
4 09/06 Chapter 4 - Income Measurement and Accrual Read: pp 382-388
Accounting Problem 4-4
• Adjusting Entries
• Connection between I/S and B/S
• Intangible Assets
09/08 o Advertising and R&D
o Expensing versus capitalization

5 09/13 Chapter 13 - Financial Ratios Read: pp 666-670

09/15 Review for exam Exercise 13-4 (skip part 3)
6 09/20
EXAM #1
09/22 Chapter 6 – Current Assets
• Accounts Receivable Read: pp 263-270
Exercise 6-8 (ignore direct write-off), 6-9

7 09/27 Chapter 6 – Current Assets Read: pp 270-275

• Notes Receivable/ Ratios
Chapter 7 – Inventory Read: pp 298-304
09/29 • SID/LIFO/FIFO/WAVE pp 310-320
Exercise 7-22 Problem 7-14

8 10/04 Chapter 8 – Non-current Assets Read: pp 366-381

ƒ Depreciation methods Exercise 8-3 8-4 8-5 8-6
• Asset Disposals and Gains/Losses
10/06

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9 10/11 Chapter 9 – Current Liabilities Read: pp 419-424
10/13 Review for exam Exercise 9-2

10 10/18
EXAM #2
10/20 Chapter 9 – Time Value of Money Read: pp 433-443
• Future Value Exercise: 9-16 9-17 9-18
• Present Value
• Annuities
• Perpetuities
11 10/25 Chapter 10 – Bonds Read: pp 489-500
• Introduction: Coupon, Interest Rates Exercise: 10-4
• Interest Expense
• Gains / Losses
10/27
12 11/01 Chapter 10 –Leases Read: pp 501-507
• Classification of Capital vs. Operating Exercise: 10-9
11/03 • Lease Calculation
Chapter 11 – Owners Equity Read: pp 536-553
• Common, Preferred, and Treasury Stock Exercise 11-3, 11-6, 11-8
• Dividends

13 11/08 Chapter 12 – Statement of Cash Flow Read: pp 592-607, pp 617-619

11/10 • Reporting Requirements
• Constructing Statement of Cash Flows Exercise 12-10, Problem:12-1

14 11/15 Chapter 13 – Financial Statement Analysis Read: pp 674-678

• Ratios:
o EPS
11/17 o Debt-to-equity
o Review for Exam
15 11/22
EXAM #3